[Congressional Record (Bound Edition), Volume 153 (2007), Part 25]
[Senate]
[Pages 33868-33992]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3832. Mr. NELSON of Nebraska submitted an amendment intended to be 
proposed by him to the bill S. 543, to improve Medicare beneficiary 
access by extending the 60 percent compliance threshold used to 
determine whether a hospital or unit of a hospital is an inpatient 
rehabilitation facility under the Medicare program; which was referred 
to the Committee on Finance; as follows:

       On page 1, strike lines 3 through 5 and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Tim Johnson Inpatient 
     Rehabilitation Preservation Act of 2007''.
                                 ______
                                 
  SA 3833. Mr. DeMINT submitted an amendment intended to be proposed to 
amendment SA 3830 proposed by Mr. Harkin (for himself, Mr. Kennedy, and 
Mr. Gregg) to the amendment SA 3500 proposed by Mr. Harkin (for 
himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 
2419, to provide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes; which was ordered to lie on 
the table; as follows:


[[Page 33869]]

       Beginning on page 10 of the amendment, strike line 3 and 
     all that follows through line 19 on page 11, and insert the 
     following:
       ``(6) Forbidding any public safety employer from 
     negotiating a contract or memorandum of understanding that 
     requires the payment of any fees to any labor organization as 
     a condition of employment.
       ``(c) Failure To Meet Requirements.--
       ``(1) In general.--If the Authority determines, acting 
     pursuant to its authority under subsection (a), that a State 
     does not substantially provide for the rights and 
     responsibilities described in subsection (b), such State 
     shall be subject to the regulations and procedures described 
     in section ___5.
       ``(2) Effective date.--Paragraph (1) shall take effect on 
     the date that is 2 years after the date of enactment of this 
     subtitle.

     ``SEC. ___5. ROLE OF FEDERAL LABOR RELATIONS AUTHORITY.

       ``(a) In General.--Not later than 1 year after the date of 
     enactment of this subtitle, the Authority shall issue 
     regulations in accordance with the rights and 
     responsibilities described in section ___4(b) establishing 
     collective bargaining procedures for employers and public 
     safety officers in States which the Authority has determined, 
     acting pursuant to section ___4(a), do not substantially 
     provide for such rights and responsibilities.
       ``(b) Role of the Federal Labor Relations Authority.--The 
     Authority, to the extent provided in this subtitle and in 
     accordance with regulations prescribed by the Authority, 
     shall--
       ``(1) determine the appropriateness of units for labor 
     organization representation;
       ``(2) supervise or conduct elections to determine whether a 
     labor organization has been selected as an exclusive 
     representative by a voting majority of the employees in an 
     appropriate unit;
       ``(3) resolve issues relating to the duty to bargain in 
     good faith;
       ``(4) conduct hearings and resolve complaints of unfair 
     labor practices;
       ``(5) resolve exceptions to the awards of arbitrators;
       ``(6) protect the right of each employee to form, join, or 
     assist any labor organization, or to refrain from any such 
     activity, and the right of each employee to refrain from 
     payment of any fees to any labor organization, freely and 
     without fear of penalty or reprisal, and protect each 
     employee in the exercise of such right; and''.
                                 ______
                                 
  SA 3834. Mrs. DOLE (for herself, Mr. Grassley, and Mr. Lugar) 
submitted an amendment intended to be proposed to amendment SA 3630 
submitted by Mrs. Dole and intended to be proposed to the bill H.R. 
2419, to provide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes; which was ordered to lie on 
the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. ___. 2-YEAR EXTENSION AND EXPANSION OF CHARITABLE 
                   DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.

       (a) In General.--Section 170(e)(3)(C) (relating to special 
     rule for certain contributions of inventory and other 
     property) is amended--
       (1) by striking ``December 31, 2007'' in clause (iv) and 
     inserting ``December 31, 2009'', and
       (2) by redesignating clauses (iii) and (iv) as clauses (iv) 
     and (v), respectively, and by inserting after clause (ii) the 
     following new clause:
       ``(iii) Determination of basis.--If a taxpayer--

       ``(I) does not account for inventories under section 471, 
     and
       ``(II) is not required to capitalize indirect costs under 
     section 263A,

     the taxpayer may elect, solely for purposes of subparagraph 
     (B), to treat the basis of any apparently wholesome food as 
     being equal to 25 percent of the fair market value of such 
     food.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to contributions made after December 31, 2007.

     SEC. ___. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS 
                   EXCLUDED FROM GROSS INCOME.

       (a) In General.--Part III of subchapter B of chapter 1 is 
     amended by inserting after section 139A the following new 
     section:

     ``SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS.

       ``(a) In General.--Gross income of an individual does not 
     include amounts received, from an organization described in 
     section 170(c), as reimbursement of operating expenses with 
     respect to use of a passenger automobile for the benefit of 
     such organization. The preceding sentence shall apply only to 
     the extent that such reimbursement would be deductible under 
     this chapter if section 274(d) were applied--
       ``(1) by using the standard business mileage rate in effect 
     under section 162(a) at the time of such use, and
       ``(2) as if the individual were an employee of an 
     organization not described in section 170(c).
       ``(b) Application to Volunteer Services Only.--Subsection 
     (a) shall not apply with respect to any expenses relating to 
     the performance of services for compensation.
       ``(c) No Double Benefit.--No deduction or credit shall be 
     allowed under any other provision of this title with respect 
     to the expenses excludable from gross income under subsection 
     (a).''.
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of the Internal Revenue Code of 
     1986 is amended by inserting after the item relating to 
     section 139A and inserting the following new item:

``Sec. 139B. Reimbursement for use of passenger automobile for 
              charity.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. ___. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING 
                   CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) Technical Amendment Related to Section 1203 of the 
     Pension Protection Act of 2006.--Subsection (d) of section 
     1366 is amended by adding at the end the following new 
     paragraph:
       ``(4) Application of limitation on charitable 
     contributions.--In the case of any charitable contribution of 
     property to which the second sentence of section 1367(a)(2) 
     applies, paragraph (1) shall not apply to the extent of the 
     excess (if any) of--
       ``(A) the shareholder's pro rata share of such 
     contribution, over
       ``(B) the shareholder's pro rata share of the adjusted 
     basis of such property.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the provision of the 
     Pension Protection Act of 2006 to which it relates.
                                 ______
                                 
  SA 3835. Mr. ENZI submitted an amendment intended to be proposed to 
amendment SA 3830 proposed by Mr. Harkin (for himself, Mr. Kennedy, and 
Mr. Gregg) to the amendment SA 3500 proposed by Mr. Harkin (for 
himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 
2419, to provide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of section __2 of the amendment, add the 
     following:
       (5) Public safety officers frequently endanger their own 
     lives to protect the rights of individuals in their 
     communities. In return, each officer deserves the optimal 
     protection of his or her own rights under the law.
       (6) The health and safety of the Nation and the best 
     interests of public security are furthered when employees are 
     assured that their collective bargaining representatives have 
     been selected in a free, fair and democratic manner.
       (7) An employee whose wages are subject to compulsory 
     assessment for any purpose not supported or authorized by 
     such employee is susceptible to job dissatisfaction. Job 
     dissatisfaction negatively affects job performance, and, in 
     the case of public safety officers, the welfare of the 
     general public.

     SEC. __2A. PUBLIC SAFETY OFFICER BILL OF RIGHTS.

       (a) In General.--A State law described in section __4(a) of 
     this subtitle shall--
       (1) provide for the selection of an exclusive bargaining 
     representative by public safety officer employees only 
     through the use of a democratic, government-supervised, 
     secret ballot election upon the request of the employer or 
     any affected employee;
       (2) ensure that public safety employers recognize the 
     employees' labor organization, freely chosen by a majority of 
     the employees pursuant to a law that provides the democratic 
     safeguards set forth in paragraph (1), to agree to bargain 
     with the labor organization, and to commit any agreements to 
     writing in a contract or memorandum of understanding; and
       (3) provide that--
       (A) no public safety officer shall, as a condition of 
     employment, be required to pay any amount in dues or fees to 
     any labor organization for any purpose other than the direct 
     and demonstrable costs associated with collective bargaining; 
     and
       (B) a labor organization shall not collect from any public 
     safety officer any additional amount without full disclosure 
     of the intended and actual use of such funds, and without the 
     public safety officer's written consent.
       (b) Applicability of Disclosure Requirements.--
     Notwithstanding any other provision of law, any labor 
     organization that represents or seeks to represent public 
     safety officers under State law or this subtitle, or in 
     accordance with regulations promulgated by the Federal Labor 
     Relations Authority, shall be subject to the requirements of 
     title II of the Labor-Management Reporting and Disclosure Act 
     of 1959 (29 U.S.C. 432 et seq.) as if such public safety 
     labor organization was a labor organization defined in 
     section 3(i) of such Act (29 U.S.C. 402(i)).
       (c) Application.--Notwithstanding any other provision of 
     law, the provisions of this section shall apply to all 
     States.
                                 ______
                                 
  SA 3836. Mr. ENZI submitted an amendment intended to be proposed to

[[Page 33870]]

amendment SA 3830 proposed by Mr. Harkin (for himself, Mr. Kennedy, and 
Mr. Gregg) to the amendment SA 3500 proposed by Mr. Harkin (for 
himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 
2419, to provide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of section __2 of the amendment, add the 
     following:
       (5) Because of the critical role of public safety officers 
     in law enforcement, and the high public regard for such 
     employees, such employees should only be represented by 
     organizations that demonstrate a similar regard for the law 
     and inspire the same level of public trust and confidence.

     SEC. __2A. PUBLIC SAFETY PROTECTIONS.

       (a) In General.--A State law described in section __4(a) of 
     this subtitle shall--
       (1) provide that no labor organization may serve, or 
     continue to serve, as the representative of any unit of 
     public safety officers if--
       (A) any of the labor organization's officers or agents are 
     convicted of--
       (i) a felony; or
       (ii) a misdemeanor related to the organization's 
     representational responsibilities; or
       (B) the organization, or the organization's officers, 
     agents, or employees, encourage, participate, or fail to take 
     all steps necessary to prevent any unlawful work stoppage or 
     disruption by any public safety officers represented by such 
     labor organization; and
       (2)(A) provide any political subdivision or individual with 
     the right to bring a civil action in Federal court against 
     any public safety officer that engages in a strike, slowdown, 
     or other employment action that is unlawful under Federal or 
     State law or contrary to the provisions of a collective 
     bargaining agreement or a contract or memorandum of 
     understanding described in section __4(b)(2) of this 
     subtitle; and
       (B) provide that, in any civil action described in 
     subparagraph (A), a public safety employer may receive 
     damages relating to the strike, slowdown, or other employment 
     action described in subparagraph (A), and that joint and 
     several liability shall apply.
       (b) Interaction With Other Laws.--Notwithstanding the Act 
     entitled ``An Act to amend the Judicial Code and to define 
     and limit the jurisdiction of courts sitting in equity, and 
     for other purposes'', approved March 23, 1932 (commonly known 
     as the ``Norris-LaGuardia Act''), or any other provision of 
     law, no Federal law that restricts the issuance of 
     injunctions or restraining orders in labor disputes shall 
     apply to labor disputes involving public safety officers 
     covered under this subtitle.
       (c) Application.--Notwithstanding any other provision of 
     law, the provisions of this section shall apply to all 
     States.
                                 ______
                                 
  SA 3837. Mr. ENZI submitted an amendment intended to be proposed to 
amendment SA 3830 proposed by Mr. Harkin (for himself, Mr. Kennedy, and 
Mr. Gregg) to the amendment SA 3500 proposed by Mr. Harkin (for 
himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 
2419, to provide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes; which was ordered to lie on 
the table; as follows:

       After section __8 of the amendment, insert the following:

     SEC. __8A. GUARANTEEING PUBLIC SAFETY AND LOCAL CONTROL OF 
                   TAXES AND SPENDING.

       Notwithstanding any State law or regulation issued under 
     section __5 of this subtitle, no collective-bargaining 
     obligation may be imposed on any political subdivision or any 
     public safety employer, and no contractual provision may be 
     imposed on any political subdivision or public safety 
     employer, if either the principal administrative officer of 
     such public safety employer, or the chief elected official of 
     such political subdivision certifies that the obligation, or 
     any provision would be contrary to the best interests of 
     public safety; or would result in any increase in local 
     taxes, or would result in any decrease in the level of public 
     safety or other municipal services.
                                 ______
                                 
  SA 3838. Mr. ENZI submitted an amendment intended to be proposed to 
amendment SA 3830 proposed by Mr. Harkin (for himself, Mr. Kennedy, and 
Mr. Gregg) to the amendment SA 3500 proposed by Mr. Harkin (for 
himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 
2419, to provide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes; which was ordered to lie on 
the table; as follows:

       In section __8(b) of the amendment, insert before paragraph 
     (1) the following and redesignate accordingly:
       (1) Harmonizing with federal law.--
       (A) Exemption.--Notwithstanding any other provision of this 
     subtitle, a governor or the legislative body of a State, or a 
     mayor or other chief executive officer or authority or the 
     legislative body of a political subdivision, may exempt from 
     the requirements established under this subtitle or otherwise 
     any group of public safety officers whose job function is 
     similar to the job function performed by any group of Federal 
     employees that is excluded from collective bargaining under 
     Federal law or an Executive order.
       (B) Treatment of certain employees.--Notwithstanding any 
     provision of State law, supervisory, managerial, and 
     confidential employees employed by public safety employers 
     shall be treated in the same manner for purposes of 
     collective-bargaining as individuals employed in the same 
     capacity by any employer covered under the provisions of the 
     National Labor Relations Act (29 U.S.C. 151 et seq.).
       (C) Rule of construction.--Notwithstanding any provision of 
     this subtitle, nothing in this subtitle shall be construed to 
     require mandatory bargaining except to the extent, and with 
     regard to the subjects, that mandatory bargaining is required 
     between the Federal Government and any of its public safety 
     employees.
                                 ______
                                 
  SA 3839. Mr. ENZI (for himself and Mr. Isakson) submitted an 
amendment intended to be proposed to amendment SA 3830 proposed by Mr. 
Harkin (for himself, Mr. Kennedy, and Mr. Gregg) to the amendment SA 
3500 proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, 
and Mr. Grassley) to the bill H.R. 2419, to provide for the 
continuation of agricultural programs through fiscal year 2012, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike section __6 of the amendment and insert the 
     following:

     SEC. __6. STRIKES AND LOCKOUTS PROHIBITED.

       Notwithstanding any rights or responsibilities provided 
     under State law or pursuant to any regulations issued under 
     section __5 of this subtitle, a labor organization may not 
     call, encourage, condone, or fail to take all actions 
     necessary to prevent or end, and a public safety employee may 
     not engage in or otherwise support, any strike (including 
     sympathy strikes), work slowdown, sick out, or any other job 
     action or concerted, full or partial refusal to work against 
     any public sector employer. A public safety employer may not 
     engage in a lockout of public safety officers.
                                 ______
                                 
  SA 3840. Mr. ENZI submitted an amendment intended to be proposed to 
amendment SA 3830 proposed by Mr. Harkin (for himself, Mr. Kennedy, and 
Mr. Gregg) to the amendment SA 3500 proposed by Mr. Harkin (for 
himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 
2419, to provide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes; which was ordered to lie on 
the table; as follows:

         After section __8 of the amendment, insert the following:

     SEC. __8A. NONAPPLICATION OF PROVISIONS.

         Notwithstanding any State law or regulation issued under 
     section __5 of this subtitle, the rights and responsibilities 
     set forth in section __4(b) of this subtitle shall not apply 
     to any political subdivision of any State having a population 
     of less than 75,000, or that employs fewer than 150 uniformed 
     public safety officers.
                                 ______
                                 
  SA 3841. Mr. REID proposed an amendment to the bill H.R. 6, 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; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Energy 
     Independence and Security Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to other law.

     TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

     Subtitle A--Increased Corporate Average Fuel Economy Standards

Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain 
              other vehicles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.

[[Page 33871]]

Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-
              duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling 
              procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.

                Subtitle B--Improved Vehicle Technology

Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts 
              manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive program.

                   Subtitle C--Federal Vehicle Fleets

Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.

   TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

                  Subtitle A--Renewable Fuel Standard

Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric 
              vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations 
              on fuels and fuel additives.
Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.

             Subtitle B--Biofuels Research and Development

Sec. 221. Biodiesel.
Sec. 222. Biogas.
Sec. 223. Grants for biofuel production research and development in 
              certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85 
              fuel.
Sec. 226. Study of engine durability and performance associated with 
              the use of biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of 
              appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.

                  Subtitle C--Biofuels Infrastructure

Sec. 241. Prohibition on franchise agreement restrictions related to 
              renewable fuel infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of domestically-
              produced renewable fuel by railroads and other modes of 
              transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels infrastructure.

                  Subtitle D--Environmental Safeguards

Sec. 251. Waiver for fuel or fuel additives.

TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND 
                                LIGHTING

                Subtitle A--Appliance Energy Efficiency

Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying 
              State authority.
Sec. 306. Regional standards for furnaces, central air conditioners, 
              and heat pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 310. Standby mode.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and 
              heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in 
              cold climates.
Sec. 316. Technical corrections.

                 Subtitle B--Lighting Energy Efficiency

Sec. 321. Efficient light bulbs.
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy 
              systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.

           TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

Sec. 401. Definitions.

              Subtitle A--Residential Building Efficiency

Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.

           Subtitle B--High-Performance Commercial Buildings

Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.

             Subtitle C--High-Performance Federal Buildings

Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal 
              buildings.
Sec. 433. Federal building energy efficiency performance standards.
Sec. 434. Management of Federal building efficiency.
Sec. 435. Leasing.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development 
              projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.

                Subtitle D--Industrial Energy Efficiency

Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.

              Subtitle E--Healthy High-Performance Schools

Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.

                   Subtitle F--Institutional Entities

Sec. 471. Energy sustainability and efficiency grants and loans for 
              institutions.

                Subtitle G--Public and Assisted Housing

Sec. 481. Application of International Energy Conservation Code to 
              public and assisted housing.

                     Subtitle H--General Provisions

Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program 
              for local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.

     TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

               Subtitle A--United States Capitol Complex

Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master 
              plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power 
              plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility 
              study and demonstration projects.

           Subtitle B--Energy Savings Performance Contracting

Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and 
              verifying savings.
Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy 
              efficiency contracts.
Sec. 518. Study of energy and cost savings in nonbuilding applications.

           Subtitle C--Energy Efficiency in Federal Agencies

Sec. 521. Installation of photovoltaic system at Department of Energy 
              headquarters building.

[[Page 33872]]

Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.

          Subtitle D--Energy Efficiency of Public Institutions

Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.

      Subtitle E--Energy Efficiency and Conservation Block Grants

Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 548. Funding.

             TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

                        Subtitle A--Solar Energy

Sec. 601. Short title.
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants.
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.

                     Subtitle B--Geothermal Energy

Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and 
              recovery and production of geopressured gas resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621. Reports.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.

   Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies

Sec. 631. Short title.
Sec. 632. Definition.
Sec. 633. Marine and hydrokinetic renewable energy research and 
              development.
Sec. 634. National Marine Renewable Energy Research, Development, and 
              Demonstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.

    Subtitle D--Energy Storage for Transportation and Electric Power

Sec. 641. Energy storage competitiveness.

                  Subtitle E--Miscellaneous Provisions

Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.

              TITLE VII--CARBON CAPTURE AND SEQUESTRATION

Subtitle A--Carbon Capture and Sequestration Research, Development, and 
                             Demonstration

Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research, development, and 
              demonstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.

 Subtitle B--Carbon Capture and Sequestration Assessment and Framework

Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous 
              oxide emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public land.

            TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

                  Subtitle A--Management Improvements

Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources 
              to generate energy.
Sec. 807. Geothermal assessment, exploration information, and priority 
              activities.

 Subtitle B--Prohibitions on Market Manipulation and False Information

Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 814. Penalties.
Sec. 815. Effect on other laws.

                TITLE IX--INTERNATIONAL ENERGY PROGRAMS

Sec. 901. Definitions.

     Subtitle A--Assistance to Promote Clean and Efficient Energy 
                   Technologies in Foreign Countries

Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China, 
              and other countries.
Sec. 913. United States trade missions to encourage private sector 
              trade and investment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy 
              technologies and investment in global energy markets.
Sec. 917. United States-Israel energy cooperation.

           Subtitle B--International Clean Energy Foundation

Sec. 921. Definitions.
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.

                  Subtitle C--Miscellaneous Provisions

Sec. 931. Energy diplomacy and security within the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage 
              contingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.

                          TITLE X--GREEN JOBS

Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training 
              program.

           TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

                Subtitle A--Department of Transportation

Sec. 1101. Office of Climate Change and Environment.

                         Subtitle B--Railroads

Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.

                   Subtitle C--Marine Transportation

Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction 
              fund.
Sec. 1123. Short sea transportation report.

                          Subtitle D--Highways

Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
Sec. 1133. Sense of Congress regarding use of complete streets design 
              techniques.

               TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy 
              efficient technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy 
              efficient technologies and purchases.
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.

[[Page 33873]]

                         TITLE XIII--SMART GRID

Sec. 1301. Statement of policy on modernization of electricity grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task force.
Sec. 1304. Smart grid technology research, development, and 
              demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development 
              of combined heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.

                     TITLE XIV--POOL AND SPA SAFETY

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.
Sec. 1404. Federal swimming pool and spa drain cover standard.
Sec. 1405. State swimming pool safety grant program.
Sec. 1406. Minimum State law requirements.
Sec. 1407. Education program.
Sec. 1408. CPSC report.

   TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007

Sec. 1500. Short title; amendment of 1986 Code.

        Subtitle A--Clean Renewable Energy Production Incentives

            Part I--Provisions Relating to Renewable Energy

Sec. 1501. Extension and modification of renewable electricity and 
              refined coal production credit.
Sec. 1502. Extension and modification of energy credit.
Sec. 1503. Extension and modification of credit for residential energy 
              efficient property.
Sec. 1504. Extension and modification of special rule to implement FERC 
              and State electric restructuring policy.
Sec. 1505. New clean renewable energy bonds.

       Part II--Provisions Relating to Carbon Mitigation and Coal

Sec. 1506. Expansion and modification of advanced coal project 
              investment credit.
Sec. 1507. Expansion and modification of coal gasification investment 
              credit.
Sec. 1508. Seven-year applicable recovery period for depreciation of 
              qualified carbon dioxide pipeline property.
Sec. 1509. Special rules for refund of the coal excise tax to certain 
              coal producers and exporters.
Sec. 1510. Extension of temporary increase in coal excise tax.
Sec. 1511. Carbon audit of the tax code.

         Subtitle B--Transportation and Domestic Fuel Security

                            Part I--Biofuels

Sec. 1521. Credit for production of cellulosic biomass alcohol.
Sec. 1522. Expansion of special allowance to cellulosic biomass alcohol 
              fuel plant property.
Sec. 1523. Modification of alcohol credit.
Sec. 1524. Extension and modification of credits for biodiesel and 
              renewable diesel.
Sec. 1525. Clarification of eligibility for renewable diesel credit.
Sec. 1526. Provisions clarifying treatment of fuels with no nexus to 
              the United States.
Sec. 1527. Comprehensive study of biofuels.

              Part II--Advanced Technology Motor Vehicles

Sec. 1528. Credit for new qualified plug-in electric drive motor 
              vehicles.
Sec. 1529. Exclusion from heavy truck tax for idling reduction units 
              and advanced insulation.

               Part III--Other Transportation Provisions

Sec. 1530. Restructuring of New York Liberty Zone tax credits.
Sec. 1531. Extension of transportation fringe benefit to bicycle 
              commuters.
Sec. 1532. Extension and modification of election to expense certain 
              refineries.

             Subtitle C--Energy Conservation and Efficiency

                 Part I--Conservation Tax Credit Bonds

Sec. 1541. Qualified energy conservation bonds.
Sec. 1542. Qualified forestry conservation bonds.

                          Part II--Efficiency

Sec. 1543. Extension and modification of energy efficient existing 
              homes credit.
Sec. 1544. Extension and modification of energy efficient commercial 
              buildings deduction.
Sec. 1545. Modifications of energy efficient appliance credit for 
              appliances produced after 2007.
Sec. 1546. Seven-year applicable recovery period for depreciation of 
              qualified energy management devices.

                      Subtitle D--Other Provisions

                      Part I--Forestry Provisions

Sec. 1551. Deduction for qualified timber gain.
Sec. 1552. Excise tax not applicable to section 1203 deduction of real 
              estate investment trusts.
Sec. 1553. Timber REIT modernization.
Sec. 1554. Mineral royalty income qualifying income for timber REITs.
Sec. 1555. Modification of taxable REIT subsidiary asset test for 
              timber REITs.
Sec. 1556. Safe harbor for timber property.

                         Part II--Exxon Valdez

Sec. 1557. Income averaging for amounts received in connection with the 
              Exxon Valdez litigation.

               Part III--Electric Transmission Facilities

Sec. 1558. Tax-exempt financing of certain electric transmission 
              facilities.

                     Subtitle E--Revenue Provisions

Sec. 1561. Denial of deduction for major integrated oil companies for 
              income attributable to domestic production of oil, gas, 
              or primary products thereof.
Sec. 1562. Elimination of the different treatment of foreign oil and 
              gas extraction income and foreign oil related income for 
              purposes of the foreign tax credit.
Sec. 1563. Seven-year amortization of geological and geophysical 
              expenditures for certain major integrated oil companies.
Sec. 1564. Broker reporting of customer's basis in securities 
              transactions.
Sec. 1565. Extension of additional 0.2 percent FUTA surtax.
Sec. 1566. Repeal of suspension of certain penalties and interest.
Sec. 1567. Time for payment of corporate estimated taxes.
Sec. 1568. Modification of penalty for failure to file partnership 
              returns.
Sec. 1569. Participants in government section 457 plans allowed to 
              treat elective deferrals as Roth contributions.

                    Subtitle F--Secure Rural Schools

Sec. 1571. Secure rural schools and community self-determination 
              program.

                       TITLE XVI--EFFECTIVE DATE

Sec. 1601. Effective date.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Department.--The term ``Department'' means the 
     Department of Energy.
       (2) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 3. RELATIONSHIP TO OTHER LAW.

       Except to the extent expressly provided in this Act or an 
     amendment made by this Act, nothing in this Act or an 
     amendment made by this Act supersedes, limits the authority 
     provided or responsibility conferred by, or authorizes any 
     violation of any provision of law (including a regulation), 
     including any energy or environmental law or regulation.

     TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

     Subtitle A--Increased Corporate Average Fuel Economy Standards

     SEC. 101. SHORT TITLE.

       This subtitle may be cited as the ``Ten-in-Ten Fuel Economy 
     Act''.

     SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND 
                   CERTAIN OTHER VEHICLES.

       (a) Increased Standards.--Section 32902 of title 49, United 
     States Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``Non-Passenger Automobiles.--'' and 
     inserting ``Prescription of Standards by Regulation.--'';
       (B) by striking ``(except passenger automobiles)'' in 
     subsection (a); and
       (C) by striking the last sentence;
       (2) by striking subsection (b) and inserting the following:
       ``(b) Standards for Automobiles and Certain Other 
     Vehicles.--
       ``(1) In general.--The Secretary of Transportation, after 
     consultation with the Secretary of Energy and the 
     Administrator of the Environmental Protection Agency, shall 
     prescribe separate average fuel economy standards for--
       ``(A) passenger automobiles manufactured by manufacturers 
     in each model year beginning with model year 2011 in 
     accordance with this subsection;
       ``(B) non-passenger automobiles manufactured by 
     manufacturers in each model year beginning with model year 
     2011 in accordance with this subsection;
       ``(C) work trucks in accordance with subsection (k); and
       ``(D) commercial medium-duty or heavy-duty on-highway 
     vehicles in accordance with subsection (l).
       ``(2) Fuel economy standards for automobiles.--

[[Page 33874]]

       ``(A) Automobile fuel economy average for model years 2011 
     through 2020.--The Secretary shall prescribe a separate 
     average fuel economy standard for passenger automobiles and a 
     separate average fuel economy standard for non-passenger 
     automobiles for each model year beginning with model year 
     2011 to achieve a combined fuel economy average for model 
     year 2020 of at least 35 miles per gallon for the total fleet 
     of passenger and non-passenger automobiles manufactured for 
     sale in the United States for that model year.
       ``(B) Automobile fuel economy average for model years 2021 
     through 2030.--For model years 2021 through 2030, the average 
     fuel economy required to be attained by each fleet of 
     passenger and non-passenger automobiles manufactured for sale 
     in the United States shall be the maximum feasible average 
     fuel economy standard for each fleet for that model year.
       ``(C) Progress toward standard required.--In prescribing 
     average fuel economy standards under subparagraph (A), the 
     Secretary shall prescribe annual fuel economy standard 
     increases that increase the applicable average fuel economy 
     standard ratably beginning with model year 2011 and ending 
     with model year 2020.
       ``(3) Authority of the secretary.--The Secretary shall--
       ``(A) prescribe by regulation separate average fuel economy 
     standards for passenger and non-passenger automobiles based 
     on 1 or more vehicle attributes related to fuel economy and 
     express each standard in the form of a mathematical function; 
     and
       ``(B) issue regulations under this title prescribing 
     average fuel economy standards for at least 1, but not more 
     than 5, model years.
       ``(4) Minimum standard.--In addition to any standard 
     prescribed pursuant to paragraph (3), each manufacturer shall 
     also meet the minimum standard for domestically manufactured 
     passenger automobiles, which shall be the greater of--
       ``(A) 27.5 miles per gallon; or
       ``(B) 92 percent of the average fuel economy projected by 
     the Secretary for the combined domestic and non-domestic 
     passenger automobile fleets manufactured for sale in the 
     United States by all manufacturers in the model year, which 
     projection shall be published in the Federal Register when 
     the standard for that model year is promulgated in accordance 
     with this section.''; and
       (3) in subsection (c)--
       (A) by striking ``(1) Subject to paragraph (2) of this 
     subsection, the'' and inserting ``The''; and
       (B) by striking paragraph (2).
       (b) Fuel Economy Standard for Work Trucks.--Section 32902 
     of title 49, United States Code, is amended by adding at the 
     end the following:
       ``(k) Work Trucks.--
       ``(1) Study.--Not later than 1 year after the date of the 
     enactment of the Ten-in-Ten Fuel Economy Act, the Secretary 
     of Transportation, in consultation with the Secretary of 
     Energy and the Administrator of the Environmental Protection 
     Agency, shall examine the fuel efficiency of work trucks and 
     determine--
       ``(A) the appropriate test procedures and methodologies for 
     measuring the fuel efficiency of work trucks;
       ``(B) the appropriate metric for measuring and expressing 
     work truck fuel efficiency performance, taking into 
     consideration, among other things, the work performed by work 
     trucks and types of operations in which they are used;
       ``(C) the range of factors, including, without limitation, 
     design, functionality, use, duty cycle, infrastructure, and 
     total overall energy consumption and operating costs that 
     affect work truck fuel efficiency; and
       ``(D) such other factors and conditions that could have an 
     impact on a program to improve work truck fuel efficiency.
       ``(2) Rulemaking.--Not later than 24 months after 
     completion of the study required under paragraph (1), the 
     Secretary, in consultation with the Secretary of Energy and 
     the Administrator of the Environmental Protection Agency, by 
     regulation, shall determine in a rulemaking proceeding how to 
     implement a work truck fuel efficiency improvement program 
     designed to achieve the maximum feasible improvement, and 
     shall adopt and implement appropriate test methods, 
     measurement metrics, fuel economy standards, and compliance 
     and enforcement protocols that are appropriate, cost-
     effective, and technologically feasible for work trucks. Any 
     fuel economy standard prescribed under this section shall be 
     prescribed at least 18 months before the model year to which 
     it applies. The Secretary may prescribe separate standards 
     for different classes of vehicles under this subsection.''.
       (c) Fuel Economy Standard for Commercial Medium-Duty and 
     Heavy-Duty On-Highway Vehicles.--Section 32902 of title 49, 
     United States Code, as amended by subsection (b), is further 
     amended by adding at the end the following:
       ``(l) Commercial Medium- and Heavy-Duty On-Highway 
     Vehicles.--
       ``(1) Study.--Not later than 1 year after the National 
     Academy of Sciences publishes the results of its study under 
     section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary 
     of Transportation, in consultation with the Secretary of 
     Energy and the Administrator of the Environmental Protection 
     Agency, shall examine the fuel efficiency of commercial 
     medium- and heavy-duty on-highway vehicles and determine--
       ``(A) the appropriate test procedures and methodologies for 
     measuring the fuel efficiency of such vehicles;
       ``(B) the appropriate metric for measuring and expressing 
     commercial medium- and heavy-duty on-highway vehicle fuel 
     efficiency performance, taking into consideration, among 
     other things, the work performed by such on-highway vehicles 
     and types of operations in which they are used;
       ``(C) the range of factors, including, without limitation, 
     design, functionality, use, duty cycle, infrastructure, and 
     total overall energy consumption and operating costs that 
     affect commercial medium- and heavy-duty on-highway vehicle 
     fuel efficiency; and
       ``(D) such other factors and conditions that could have an 
     impact on a program to improve commercial medium- and heavy-
     duty on-highway vehicle fuel efficiency.
       ``(2) Rulemaking.--Not later than 24 months after 
     completion of the study required under paragraph (1), the 
     Secretary, in consultation with the Secretary of Energy and 
     the Administrator of the Environmental Protection Agency, by 
     regulation, shall determine in a rulemaking proceeding how to 
     implement a commercial medium- and heavy-duty on-highway 
     vehicle fuel efficiency improvement program designed to 
     achieve the maximum feasible improvement, and shall adopt and 
     implement appropriate test methods, measurement metrics, fuel 
     economy standards, and compliance and enforcement protocols 
     that are appropriate, cost-effective, and technologically 
     feasible for commercial medium- and heavy-duty on-highway 
     vehicles. Any fuel economy standard prescribed under this 
     section shall be prescribed at least 18 months before the 
     model year to which it applies. The Secretary may prescribe 
     separate standards for different classes of vehicles under 
     this subsection.
       ``(3) Lead-time; regulatory stability.--The first 
     commercial medium- and heavy-duty on-highway vehicle fuel 
     efficiency regulatory program adopted pursuant to this 
     subsection shall provide not less than--
       ``(A) 4 full model years of regulatory lead-time; and
       ``(B) 3 full model years of regulatory stability.''.

     SEC. 103. DEFINITIONS.

       (a) In General.--Section 32901(a) of title 49, United 
     States Code, is amended--
       (1) by striking paragraph (3) and inserting the following:
       ``(3) except as provided in section 32908 of this title, 
     `automobile' means a 4-wheeled vehicle that is propelled by 
     fuel, or by alternative fuel, manufactured primarily for use 
     on public streets, roads, and highways and rated at less than 
     10,000 pounds gross vehicle weight, except--
       ``(A) a vehicle operated only on a rail line;
       ``(B) a vehicle manufactured in different stages by 2 or 
     more manufacturers, if no intermediate or final-stage 
     manufacturer of that vehicle manufactures more than 10,000 
     multi-stage vehicles per year; or
       ``(C) a work truck.'';
       (2) by redesignating paragraphs (7) through (16) as 
     paragraphs (8) through (17), respectively;
       (3) by inserting after paragraph (6) the following:
       ``(7) `commercial medium- and heavy-duty on-highway 
     vehicle' means an on-highway vehicle with a gross vehicle 
     weight rating of 10,000 pounds or more.'';
       (4) in paragraph (9)(A), as redesignated, by inserting ``or 
     a mixture of biodiesel and diesel fuel meeting the standard 
     established by the American Society for Testing and Materials 
     or under section 211(u) of the Clean Air Act (42 U.S.C. 
     7545(u)) for fuel containing 20 percent biodiesel (commonly 
     known as `B20')'' after ``alternative fuel'';
       (5) by redesignating paragraph (17), as redesignated, as 
     paragraph (18);
       (6) by inserting after paragraph (16), as redesignated, the 
     following:
       ``(17) `non-passenger automobile' means an automobile that 
     is not a passenger automobile or a work truck.''; and
       (7) by adding at the end the following:
       ``(19) `work truck' means a vehicle that--
       ``(A) is rated at between 8,500 and 10,000 pounds gross 
     vehicle weight; and
       ``(B) is not a medium-duty passenger vehicle (as defined in 
     section 86.1803-01 of title 40, Code of Federal Regulations, 
     as in effect on the date of the enactment of the Ten-in-Ten 
     Fuel Economy Act).''.

     SEC. 104. CREDIT TRADING PROGRAM.

       (a) In General.--Section 32903 of title 49, United States 
     Code, is amended--
       (1) by striking ``section 32902(b)-(d) of this title'' each 
     place it appears and inserting ``subsections (a) through (d) 
     of section 32902'';
       (2) in subsection (a)(2)--
       (A) by striking ``3 consecutive model years'' and inserting 
     ``5 consecutive model years'';
       (B) by striking ``clause (1) of this subsection,'' and 
     inserting ``paragraph (1)'';
       (3) by redesignating subsection (f) as subsection (h); and

[[Page 33875]]

       (4) by inserting after subsection (e) the following:
       ``(f) Credit Trading Among Manufacturers.--
       ``(1) In general.--The Secretary of Transportation may 
     establish, by regulation, a fuel economy credit trading 
     program to allow manufacturers whose automobiles exceed the 
     average fuel economy standards prescribed under section 32902 
     to earn credits to be sold to manufacturers whose automobiles 
     fail to achieve the prescribed standards such that the total 
     oil savings associated with manufacturers that exceed the 
     prescribed standards are preserved when trading credits to 
     manufacturers that fail to achieve the prescribed standards.
       ``(2) Limitation.--The trading of credits by a manufacturer 
     to the category of passenger automobiles manufactured 
     domestically is limited to the extent that the fuel economy 
     level of such automobiles shall comply with the requirements 
     of section 32902(b)(4), without regard to any trading of 
     credits from other manufacturers.
       ``(g) Credit Transferring Within a Manufacturer's Fleet.--
       ``(1) In general.--The Secretary of Transportation shall 
     establish by regulation a fuel economy credit transferring 
     program to allow any manufacturer whose automobiles exceed 
     any of the average fuel economy standards prescribed under 
     section 32902 to transfer the credits earned under this 
     section and to apply such credits within that manufacturer's 
     fleet to a compliance category of automobiles that fails to 
     achieve the prescribed standards.
       ``(2) Years for which used.--Credits transferred under this 
     subsection are available to be used in the same model years 
     that the manufacturer could have applied such credits under 
     subsections (a), (b), (d), and (e), as well as for the model 
     year in which the manufacturer earned such credits.
       ``(3) Maximum increase.--The maximum increase in any 
     compliance category attributable to transferred credits is--
       ``(A) for model years 2011 through 2013, 1.0 mile per 
     gallon;
       ``(B) for model years 2014 through 2017, 1.5 miles per 
     gallon; and
       ``(C) for model year 2018 and subsequent model years, 2.0 
     miles per gallon.
       ``(4) Limitation.--The transfer of credits by a 
     manufacturer to the category of passenger automobiles 
     manufactured domestically is limited to the extent that the 
     fuel economy level of such automobiles shall comply with the 
     requirements under section 32904(b)(4), without regard to any 
     transfer of credits from other categories of automobiles 
     described in paragraph (6)(B).
       ``(5) Years available.--A credit may be transferred under 
     this subsection only if it is earned after model year 2010.
       ``(6) Definitions.--In this subsection:
       ``(A) Fleet.--The term `fleet' means all automobiles 
     manufactured by a manufacturer in a particular model year.
       ``(B) Compliance category of automobiles.--The term 
     `compliance category of automobiles' means any of the 
     following 3 categories of automobiles for which compliance is 
     separately calculated under this chapter:
       ``(i) Passenger automobiles manufactured domestically.
       ``(ii) Passenger automobiles not manufactured domestically.
       ``(iii) Non-passenger automobiles.''.
       (b) Conforming Amendments.--
       (1) Limitations.--Section 32902(h) of title 49, United 
     States Code, is amended--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) may not consider, when prescribing a fuel economy 
     standard, the trading, transferring, or availability of 
     credits under section 32903.''.
       (2) Separate calculations.--Section 32904(b)(1)(B) is 
     amended by striking ``chapter.'' and inserting ``chapter, 
     except for the purposes of section 32903.''.

     SEC. 105. CONSUMER INFORMATION.

       Section 32908 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(g) Consumer Information.--
       ``(1) Program.--The Secretary of Transportation, in 
     consultation with the Secretary of Energy and the 
     Administrator of the Environmental Protection Agency, shall 
     develop and implement by rule a program to require 
     manufacturers--
       ``(A) to label new automobiles sold in the United States 
     with--
       ``(i) information reflecting an automobile's performance on 
     the basis of criteria that the Administrator shall develop, 
     not later than 18 months after the date of the enactment of 
     the Ten-in-Ten Fuel Economy Act, to reflect fuel economy and 
     greenhouse gas and other emissions over the useful life of 
     the automobile;
       ``(ii) a rating system that would make it easy for 
     consumers to compare the fuel economy and greenhouse gas and 
     other emissions of automobiles at the point of purchase, 
     including a designation of automobiles--

       ``(I) with the lowest greenhouse gas emissions over the 
     useful life of the vehicles; and
       ``(II) the highest fuel economy; and

       ``(iii) a permanent and prominent display that an 
     automobile is capable of operating on an alternative fuel; 
     and
       ``(B) to include in the owner's manual for vehicles capable 
     of operating on alternative fuels information that describes 
     that capability and the benefits of using alternative fuels, 
     including the renewable nature and environmental benefits of 
     using alternative fuels.
       ``(2) Consumer education.--
       ``(A) In general.--The Secretary of Transportation, in 
     consultation with the Secretary of Energy and the 
     Administrator of the Environmental Protection Agency, shall 
     develop and implement by rule a consumer education program to 
     improve consumer understanding of automobile performance 
     described in paragraph (1)(A)(i) and to inform consumers of 
     the benefits of using alternative fuel in automobiles and the 
     location of stations with alternative fuel capacity.
       ``(B) Fuel savings education campaign.--The Secretary of 
     Transportation shall establish a consumer education campaign 
     on the fuel savings that would be recognized from the 
     purchase of vehicles equipped with thermal management 
     technologies, including energy efficient air conditioning 
     systems and glass.
       ``(3) Fuel tank labels for alternative fuel automobiles.--
     The Secretary of Transportation shall by rule require a label 
     to be attached to the fuel compartment of vehicles capable of 
     operating on alternative fuels, with the form of alternative 
     fuel stated on the label. A label attached in compliance with 
     the requirements of section 32905(h) is deemed to meet the 
     requirements of this paragraph.
       ``(4) Rulemaking deadline.--The Secretary of Transportation 
     shall issue a final rule under this subsection not later than 
     42 months after the date of the enactment of the Ten-in-Ten 
     Fuel Economy Act.''.

     SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.

       Nothing in this subtitle, or the amendments made by this 
     subtitle, shall be construed to affect the application of 
     section 32902 of title 49, United States Code, to passenger 
     automobiles or non-passenger automobiles manufactured before 
     model year 2011.

     SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.

       (a) In General.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     execute an agreement with the National Academy of Sciences to 
     develop a report evaluating vehicle fuel economy standards, 
     including--
       (1) an assessment of automotive technologies and costs to 
     reflect developments since the Academy's 2002 report 
     evaluating the corporate average fuel economy standards was 
     conducted;
       (2) an analysis of existing and potential technologies that 
     may be used practically to improve automobile and medium-duty 
     and heavy-duty truck fuel economy;
       (3) an analysis of how such technologies may be practically 
     integrated into the automotive and medium-duty and heavy-duty 
     truck manufacturing process; and
       (4) an assessment of how such technologies may be used to 
     meet the new fuel economy standards under chapter 329 of 
     title 49, United States Code, as amended by this subtitle.
       (b) Report.--The Academy shall submit the report to the 
     Secretary, the Committee on Commerce, Science, and 
     Transportation of the Senate, and the Committee on Energy and 
     Commerce of the House of Representatives, with its findings 
     and recommendations not later than 5 years after the date on 
     which the Secretary executes the agreement with the Academy.
       (c) Quinquennial Updates.--After submitting the initial 
     report, the Academy shall update the report at 5 year 
     intervals thereafter through 2025.

     SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY 
                   AND HEAVY-DUTY TRUCK FUEL ECONOMY.

       (a) In General.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     execute an agreement with the National Academy of Sciences to 
     develop a report evaluating medium-duty and heavy-duty truck 
     fuel economy standards, including--
       (1) an assessment of technologies and costs to evaluate 
     fuel economy for medium-duty and heavy-duty trucks;
       (2) an analysis of existing and potential technologies that 
     may be used practically to improve medium-duty and heavy-duty 
     truck fuel economy;
       (3) an analysis of how such technologies may be practically 
     integrated into the medium-duty and heavy-duty truck 
     manufacturing process;
       (4) an assessment of how such technologies may be used to 
     meet fuel economy standards to be prescribed under section 
     32902(l) of title 49, United States Code, as amended by this 
     subtitle; and
       (5) associated costs and other impacts on the operation of 
     medium-duty and heavy-duty trucks, including congestion.
       (b) Report.--The Academy shall submit the report to the 
     Secretary, the Committee on Commerce, Science, and 
     Transportation

[[Page 33876]]

     of the Senate, and the Committee on Energy and Commerce of 
     the House of Representatives, with its findings and 
     recommendations not later than 1 year after the date on which 
     the Secretary executes the agreement with the Academy.

     SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.

       (a) In General.--Section 32906 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 32906. Maximum fuel economy increase for alternative 
       fuel automobiles

       ``(a) In General.--For each of model years 1993 through 
     2019 for each category of automobile (except an electric 
     automobile), the maximum increase in average fuel economy for 
     a manufacturer attributable to dual fueled automobiles is--
       ``(1) 1.2 miles a gallon for each of model years 1993 
     through 2014;
       ``(2) 1.0 miles per gallon for model year 2015;
       ``(3) 0.8 miles per gallon for model year 2016;
       ``(4) 0.6 miles per gallon for model year 2017;
       ``(5) 0.4 miles per gallon for model year 2018;
       ``(6) 0.2 miles per gallon for model year 2019; and
       ``(7) 0 miles per gallon for model years after 2019.
       ``(b) Calculation.--In applying subsection (a), the 
     Administrator of the Environmental Protection Agency shall 
     determine the increase in a manufacturer's average fuel 
     economy attributable to dual fueled automobiles by 
     subtracting from the manufacturer's average fuel economy 
     calculated under section 32905(e) the number equal to what 
     the manufacturer's average fuel economy would be if it were 
     calculated by the formula under section 32904(a)(1) by 
     including as the denominator for each model of dual fueled 
     automobiles the fuel economy when the automobiles are 
     operated on gasoline or diesel fuel.''.
       (b) Conforming Amendments.--Section 32905 of title 49, 
     United States Code, is amended--
       (1) in subsection (b), by striking ``1993-2010,'' and 
     inserting ``1993 through 2019,'';
       (2) in subsection (d), by striking ``1993-2010,'' and 
     inserting ``1993 through 2019,'';
       (3) by striking subsections (f) and (g); and
       (4) by redesignating subsection (h) as subsection (f).
       (c) B20 Biodiesel Flexible Fuel Credit.--Section 
     32905(b)(2) of title 49, United States Code, is amended to 
     read as follows:
       ``(2) .5 divided by the fuel economy--
       ``(A) measured under subsection (a) when operating the 
     model on alternative fuel; or
       ``(B) measured based on the fuel content of B20 when 
     operating the model on B20, which is deemed to contain 0.15 
     gallon of fuel.''.

     SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY 
                   LABELING PROCEDURES.

       Beginning in December, 2009, and not less often than every 
     5 years thereafter, the Administrator of the Environmental 
     Protection Agency, in consultation with the Secretary of 
     Transportation, shall--
       (1) reevaluate the fuel economy labeling procedures 
     described in the final rule published in the Federal Register 
     on December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86 
     and 600) to determine whether changes in the factors used to 
     establish the labeling procedures warrant a revision of that 
     process; and
       (2) submit a report to the Committee on Commerce, Science, 
     and Transportation of the Senate and the Committee on Energy 
     and Commerce of the House of Representatives that describes 
     the results of the reevaluation process.

     SEC. 111. CONSUMER TIRE INFORMATION.

       (a) In General.--Chapter 323 of title 49, United States 
     Code, is amended by inserting after section 32304 the 
     following:

     ``Sec. 32304A. Consumer tire information

       ``(a) Rulemaking.--
       ``(1) In general.--Not later than 24 months after the date 
     of enactment of the Ten-in-Ten Fuel Economy Act, the 
     Secretary of Transportation shall, after notice and 
     opportunity for comment, promulgate rules establishing a 
     national tire fuel efficiency consumer information program 
     for replacement tires designed for use on motor vehicles to 
     educate consumers about the effect of tires on automobile 
     fuel efficiency, safety, and durability.
       ``(2) Items included in rule.--The rulemaking shall 
     include--
       ``(A) a national tire fuel efficiency rating system for 
     motor vehicle replacement tires to assist consumers in making 
     more educated tire purchasing decisions;
       ``(B) requirements for providing information to consumers, 
     including information at the point of sale and other 
     potential information dissemination methods, including the 
     Internet;
       ``(C) specifications for test methods for manufacturers to 
     use in assessing and rating tires to avoid variation among 
     test equipment and manufacturers; and
       ``(D) a national tire maintenance consumer education 
     program including, information on tire inflation pressure, 
     alignment, rotation, and tread wear to maximize fuel 
     efficiency, safety, and durability of replacement tires.
       ``(3) Applicability.--This section shall apply only to 
     replacement tires covered under section 575.104(c) of title 
     49, Code of Federal Regulations, in effect on the date of the 
     enactment of the Ten-in-Ten Fuel Economy Act.
       ``(b) Consultation.--The Secretary shall consult with the 
     Secretary of Energy and the Administrator of the 
     Environmental Protection Agency on the means of conveying 
     tire fuel efficiency consumer information.
       ``(c) Report to Congress.--The Secretary shall conduct 
     periodic assessments of the rules promulgated under this 
     section to determine the utility of such rules to consumers, 
     the level of cooperation by industry, and the contribution to 
     national goals pertaining to energy consumption. The 
     Secretary shall transmit periodic reports detailing the 
     findings of such assessments to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce.
       ``(d) Tire Marking.--The Secretary shall not require 
     permanent labeling of any kind on a tire for the purpose of 
     tire fuel efficiency information.
       ``(e) Application With State and Local Laws and 
     Regulations.--Nothing in this section prohibits a State or 
     political subdivision thereof from enforcing a law or 
     regulation on tire fuel efficiency consumer information that 
     was in effect on January 1, 2006. After a requirement 
     promulgated under this section is in effect, a State or 
     political subdivision thereof may adopt or enforce a law or 
     regulation on tire fuel efficiency consumer information 
     enacted or promulgated after January 1, 2006, if the 
     requirements of that law or regulation are identical to the 
     requirement promulgated under this section. Nothing in this 
     section shall be construed to preempt a State or political 
     subdivision thereof from regulating the fuel efficiency of 
     tires (including establishing testing methods for determining 
     compliance with such standards) not otherwise preempted under 
     this chapter.''.
       (b) Enforcement.--Section 32308 of title 49, United States 
     Code, is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d)and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Section 32304A.--Any person who fails to comply with 
     the national tire fuel efficiency information program under 
     section 32304A is liable to the United States Government for 
     a civil penalty of not more than $50,000 for each 
     violation.''.
       (c) Conforming Amendment.--The chapter analysis for chapter 
     323 of title 49, United States Code, is amended by inserting 
     after the item relating to section 32304 the following:

``32304A. Consumer tire information''.

     SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND 
                   DEVELOPMENT.

       Section 32912 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(e) Use of Civil Penalties.--For fiscal year 2008 and 
     each fiscal year thereafter, from the total amount deposited 
     in the general fund of the Treasury during the preceding 
     fiscal year from fines, penalties, and other funds obtained 
     through enforcement actions conducted pursuant to this 
     section (including funds obtained under consent decrees), the 
     Secretary of the Treasury, subject to the availability of 
     appropriations, shall--
       ``(1) transfer 50 percent of such total amount to the 
     account providing appropriations to the Secretary of 
     Transportation for the administration of this chapter, which 
     shall be used by the Secretary to support rulemaking under 
     this chapter; and
       ``(2) transfer 50 percent of such total amount to the 
     account providing appropriations to the Secretary of 
     Transportation for the administration of this chapter, which 
     shall be used by the Secretary to carry out a program to make 
     grants to manufacturers for retooling, reequipping, or 
     expanding existing manufacturing facilities in the United 
     States to produce advanced technology vehicles and 
     components.''.

     SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.

       (a) Repeal.--Paragraphs (6), (7), and (8) of section 
     32904(b) of title 49, United States Code, are repealed.
       (b) Effect of Repeal on Existing Exemptions.--Any exemption 
     granted under section 32904(b)(6) of title 49, United States 
     Code, prior to the date of the enactment of this Act shall 
     remain in effect subject to its terms through model year 
     2013.
       (c) Accrual and Use of Credits.--Any manufacturer holding 
     an exemption under section 32904(b)(6) of title 49, United 
     States Code, prior to the date of the enactment of this Act 
     may accrue and use credits under sections 32903 and 32905 of 
     such title begining with model year 2011.

                Subtitle B--Improved Vehicle Technology

     SEC. 131. TRANSPORTATION ELECTRIFICATION.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Battery.--The term ``battery'' means an electrochemical 
     energy storage system powered directly by electrical current.
       (3) Electric transportation technology.--The term 
     ``electric transportation technology'' means--

[[Page 33877]]

       (A) technology used in vehicles that use an electric motor 
     for all or part of the motive power of the vehicles, 
     including battery electric, hybrid electric, plug-in hybrid 
     electric, fuel cell, and plug-in fuel cell vehicles, or rail 
     transportation; or
       (B) equipment relating to transportation or mobile sources 
     of air pollution that use an electric motor to replace an 
     internal combustion engine for all or part of the work of the 
     equipment, including--
       (i) corded electric equipment linked to transportation or 
     mobile sources of air pollution; and
       (ii) electrification technologies at airports, ports, truck 
     stops, and material-handling facilities.
       (4) Nonroad vehicle.--The term ``nonroad vehicle'' means a 
     vehicle--
       (A) powered--
       (i) by a nonroad engine, as that term is defined in section 
     216 of the Clean Air Act (42 U.S.C. 7550); or
       (ii) fully or partially by an electric motor powered by a 
     fuel cell, a battery, or an off-board source of electricity; 
     and
       (B) that is not a motor vehicle or a vehicle used solely 
     for competition.
       (5) Plug-in electric drive vehicle.--The term ``plug-in 
     electric drive vehicle'' means a vehicle that--
       (A) draws motive power from a battery with a capacity of at 
     least 4 kilowatt-hours;
       (B) can be recharged from an external source of electricity 
     for motive power; and
       (C) is a light-, medium-, or heavy-duty motor vehicle or 
     nonroad vehicle (as those terms are defined in section 216 of 
     the Clean Air Act (42 U.S.C. 7550)).
       (6) Qualified electric transportation project.--The term 
     ``qualified electric transportation project'' means an 
     electric transportation technology project that would 
     significantly reduce emissions of criteria pollutants, 
     greenhouse gas emissions, and petroleum, including--
       (A) shipside or shoreside electrification for vessels;
       (B) truck-stop electrification;
       (C) electric truck refrigeration units;
       (D) battery powered auxiliary power units for trucks;
       (E) electric airport ground support equipment;
       (F) electric material and cargo handling equipment;
       (G) electric or dual-mode electric rail;
       (H) any distribution upgrades needed to supply electricity 
     to the project; and
       (I) any ancillary infrastructure, including panel upgrades, 
     battery chargers, in-situ transformers, and trenching.
       (b) Plug-in Electric Drive Vehicle Program.--
       (1) Establishment.--The Secretary shall establish a 
     competitive program to provide grants on a cost-shared basis 
     to State governments, local governments, metropolitan 
     transportation authorities, air pollution control districts, 
     private or nonprofit entities, or combinations of those 
     governments, authorities, districts, and entities, to carry 
     out 1 or more projects to encourage the use of plug-in 
     electric drive vehicles or other emerging electric vehicle 
     technologies, as determined by the Secretary.
       (2) Administration.--The Secretary shall, in consultation 
     with the Secretary of Transportation and the Administrator, 
     establish requirements for applications for grants under this 
     section, including reporting of data to be summarized for 
     dissemination to grantees and the public, including safety, 
     vehicle, and component performance, and vehicle and component 
     life cycle costs.
       (3) Priority.--In making awards under this subsection, the 
     Secretary shall--
       (A) give priority consideration to applications that--
       (i) encourage early widespread use of vehicles described in 
     paragraph (1); and
       (ii) are likely to make a significant contribution to the 
     advancement of the production of the vehicles in the United 
     States; and
       (B) ensure, to the maximum extent practicable, that the 
     program established under this subsection includes a variety 
     of applications, manufacturers, and end-uses.
       (4) Reporting.--The Secretary shall require a grant 
     recipient under this subsection to submit to the Secretary, 
     on an annual basis, data relating to safety, vehicle 
     performance, life cycle costs, and emissions of vehicles 
     demonstrated under the grant, including emissions of 
     greenhouse gases.
       (5) Cost sharing.--Section 988 of the Energy Policy Act of 
     2005 (42 U.S.C. 16352) shall apply to a grant made under this 
     subsection.
       (6) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $90,000,000 
     for each of fiscal years 2008 through 2012, of which not less 
     than \1/3\ of the total amount appropriated shall be 
     available each fiscal year to make grants to local and 
     municipal governments.
       (c) Near-Term Transportation Sector Electrification 
     Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Secretary of Transportation and the Administrator, shall 
     establish a program to provide grants for the conduct of 
     qualified electric transportation projects.
       (2) Priority.--In providing grants under this subsection, 
     the Secretary shall give priority to large-scale projects and 
     large-scale aggregators of projects.
       (3) Cost sharing.--Section 988 of the Energy Policy Act of 
     2005 (42 U.S.C. 16352) shall apply to a grant made under this 
     subsection.
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $95,000,000 
     for each of fiscal years 2008 through 2013.
       (d) Education Program.--
       (1) In general.--The Secretary shall develop a nationwide 
     electric drive transportation technology education program 
     under which the Secretary shall provide--
       (A) teaching materials to secondary schools and high 
     schools; and
       (B) assistance for programs relating to electric drive 
     system and component engineering to institutions of higher 
     education.
       (2) Electric vehicle competition.--The program established 
     under paragraph (1) shall include a plug-in hybrid electric 
     vehicle competition for institutions of higher education, 
     which shall be known as the ``Dr. Andrew Frank Plug-In 
     Electric Vehicle Competition''.
       (3) Engineers.--In carrying out the program established 
     under paragraph (1), the Secretary shall provide financial 
     assistance to institutions of higher education to create new, 
     or support existing, degree programs to ensure the 
     availability of trained electrical and mechanical engineers 
     with the skills necessary for the advancement of--
       (A) plug-in electric drive vehicles; and
       (B) other forms of electric drive transportation technology 
     vehicles.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this subsection.

     SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

       Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 
     16062) is amended to read as follows:

     ``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

       ``(a) Program.--
       ``(1) In general.--The Secretary shall establish a program 
     to encourage domestic production and sales of efficient 
     hybrid and advanced diesel vehicles and components of those 
     vehicles.
       ``(2) Inclusions.--The program shall include grants to 
     automobile manufacturers and suppliers and hybrid component 
     manufacturers to encourage domestic production of efficient 
     hybrid, plug-in electric hybrid, plug-in electric drive, and 
     advanced diesel vehicles.
       ``(3) Priority.--Priority shall be given to the 
     refurbishment or retooling of manufacturing facilities that 
     have recently ceased operation or will cease operation in the 
     near future.
       ``(b) Coordination With State and Local Programs.--The 
     Secretary may coordinate implementation of this section with 
     State and local programs designed to accomplish similar 
     goals, including the retention and retraining of skilled 
     workers from the manufacturing facilities, including by 
     establishing matching grant arrangements.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     may be necessary to carry out this section.''.

     SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 
                   1992.

       Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 
     13258) is amended--
       (1) by redesignating subsections (a) through (d) as 
     subsections (b) through (e), respectively;
       (2) by inserting before subsection (b) the following:
       ``(a) Definitions.--In this section:
       ``(1) Fuel cell electric vehicle.--The term `fuel cell 
     electric vehicle' means an on-road or nonroad vehicle that 
     uses a fuel cell (as defined in section 803 of the Spark M. 
     Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).
       ``(2) Hybrid electric vehicle.--The term `hybrid electric 
     vehicle' means a new qualified hybrid motor vehicle (as 
     defined in section 30B(d)(3) of the Internal Revenue Code of 
     1986).
       ``(3) Medium- or heavy-duty electric vehicle.--The term 
     `medium- or heavy-duty electric vehicle' means an electric, 
     hybrid electric, or plug-in hybrid electric vehicle with a 
     gross vehicle weight of more than 8,501 pounds.
       ``(4) Neighborhood electric vehicle.--The term 
     `neighborhood electric vehicle' means a 4-wheeled on-road or 
     nonroad vehicle that--
       ``(A) has a top attainable speed in 1 mile of more than 20 
     mph and not more than 25 mph on a paved level surface; and
       ``(B) is propelled by an electric motor and on-board, 
     rechargeable energy storage system that is rechargeable using 
     an off-board source of electricity.
       ``(5) Plug-in electric drive vehicle.--The term `plug-in 
     electric drive vehicle' means a vehicle that--
       ``(A) draws motive power from a battery with a capacity of 
     at least 4 kilowatt-hours;
       ``(B) can be recharged from an external source of 
     electricity for motive power; and
       ``(C) is a light-, medium-, or heavy duty motor vehicle or 
     nonroad vehicle (as those terms are defined in section 216 of 
     the Clean Air Act (42 U.S.C. 7550).'';

[[Page 33878]]

       (3) in subsection (b) (as redesignated by paragraph (1))--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) Allocation.--The Secretary''; and
       (B) by adding at the end the following:
       ``(2) Electric vehicles.--Not later than January 31, 2009, 
     the Secretary shall--
       ``(A) allocate credit in an amount to be determined by the 
     Secretary for--
       ``(i) acquisition of--

       ``(I) a hybrid electric vehicle;
       ``(II) a plug-in electric drive vehicle;
       ``(III) a fuel cell electric vehicle;
       ``(IV) a neighborhood electric vehicle; or
       ``(V) a medium- or heavy-duty electric vehicle; and

       ``(ii) investment in qualified alternative fuel 
     infrastructure or nonroad equipment, as determined by the 
     Secretary; and
       ``(B) allocate more than 1, but not to exceed 5, credits 
     for investment in an emerging technology relating to any 
     vehicle described in subparagraph (A) to encourage--
       ``(i) a reduction in petroleum demand;
       ``(ii) technological advancement; and
       ``(iii) a reduction in vehicle emissions.'';
       (4) in subsection (c) (as redesignated by paragraph (1)), 
     by striking ``subsection (a)'' and inserting ``subsection 
     (b)''; and
       (5) by adding at the end the following:
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2008 through 
     2013.''.

     SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS 
                   MANUFACTURERS.

       (a) In General.--Section 712(a)(2) of the Energy Policy Act 
     of 2005 (42 U.S.C. 16062(a)(2)) (as amended by section 132) 
     is amended by inserting ``and loan guarantees under section 
     1703'' after ``grants''.
       (b) Conforming Amendment.--Section 1703(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by 
     striking paragraph (8) and inserting the following:
       ``(8) Production facilities for the manufacture of fuel 
     efficient vehicles or parts of those vehicles, including 
     electric drive vehicles and advanced diesel vehicles.''.

     SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.

       (a) Establishment of Program.--The Secretary shall 
     establish a program to provide guarantees of loans by private 
     institutions for the construction of facilities for the 
     manufacture of advanced vehicle batteries and battery systems 
     that are developed and produced in the United States, 
     including advanced lithium ion batteries and hybrid 
     electrical system and component manufacturers and software 
     designers.
       (b) Requirements.--The Secretary may provide a loan 
     guarantee under subsection (a) to an applicant if--
       (1) without a loan guarantee, credit is not available to 
     the applicant under reasonable terms or conditions sufficient 
     to finance the construction of a facility described in 
     subsection (a);
       (2) the prospective earning power of the applicant and the 
     character and value of the security pledged provide a 
     reasonable assurance of repayment of the loan to be 
     guaranteed in accordance with the terms of the loan; and
       (3) the loan bears interest at a rate determined by the 
     Secretary to be reasonable, taking into account the current 
     average yield on outstanding obligations of the United States 
     with remaining periods of maturity comparable to the maturity 
     of the loan.
       (c) Criteria.--In selecting recipients of loan guarantees 
     from among applicants, the Secretary shall give preference to 
     proposals that--
       (1) meet all applicable Federal and State permitting 
     requirements;
       (2) are most likely to be successful; and
       (3) are located in local markets that have the greatest 
     need for the facility.
       (d) Maturity.--A loan guaranteed under subsection (a) shall 
     have a maturity of not more than 20 years.
       (e) Terms and Conditions.--The loan agreement for a loan 
     guaranteed under subsection (a) shall provide that no 
     provision of the loan agreement may be amended or waived 
     without the consent of the Secretary.
       (f) Assurance of Repayment.--The Secretary shall require 
     that an applicant for a loan guarantee under subsection (a) 
     provide an assurance of repayment in the form of a 
     performance bond, insurance, collateral, or other means 
     acceptable to the Secretary in an amount equal to not less 
     than 20 percent of the amount of the loan.
       (g) Guarantee Fee.--The recipient of a loan guarantee under 
     subsection (a) shall pay the Secretary an amount determined 
     by the Secretary to be sufficient to cover the administrative 
     costs of the Secretary relating to the loan guarantee.
       (h) Full Faith and Credit.--The full faith and credit of 
     the United States is pledged to the payment of all guarantees 
     made under this section. Any such guarantee made by the 
     Secretary shall be conclusive evidence of the eligibility of 
     the loan for the guarantee with respect to principal and 
     interest. The validity of the guarantee shall be 
     incontestable in the hands of a holder of the guaranteed 
     loan.
       (i) Reports.--Until each guaranteed loan under this section 
     has been repaid in full, the Secretary shall annually submit 
     to Congress a report on the activities of the Secretary under 
     this section.
       (j) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (k) Termination of Authority.--The authority of the 
     Secretary to issue a loan guarantee under subsection (a) 
     terminates on the date that is 10 years after the date of 
     enactment of this Act.

     SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING 
                   INCENTIVE PROGRAM.

       (a) Definitions.--In this section:
       (1) Advanced technology vehicle.--The term ``advanced 
     technology vehicle'' means a light duty vehicle that meets--
       (A) the Bin 5 Tier II emission standard established in 
     regulations issued by the Administrator of the Environmental 
     Protection Agency under section 202(i) of the Clean Air Act 
     (42 U.S.C. 7521(i)), or a lower-numbered Bin emission 
     standard;
       (B) any new emission standard in effect for fine 
     particulate matter prescribed by the Administrator under that 
     Act (42 U.S.C. 7401 et seq.); and
       (C) at least 125 percent of the average base year combined 
     fuel economy for vehicles with substantially similar 
     attributes.
       (2) Combined fuel economy.--The term ``combined fuel 
     economy'' means--
       (A) the combined city/highway miles per gallon values, as 
     reported in accordance with section 32904 of title 49, United 
     States Code; and
       (B) in the case of an electric drive vehicle with the 
     ability to recharge from an off-board source, the reported 
     mileage, as determined in a manner consistent with the 
     Society of Automotive Engineers recommended practice for that 
     configuration or a similar practice recommended by the 
     Secretary.
       (3) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     relating to--
       (A) incorporating qualifying components into the design of 
     advanced technology vehicles; and
       (B) designing tooling and equipment and developing 
     manufacturing processes and material suppliers for production 
     facilities that produce qualifying components or advanced 
     technology vehicles.
       (4) Qualifying components.--The term ``qualifying 
     components'' means components that the Secretary determines 
     to be--
       (A) designed for advanced technology vehicles; and
       (B) installed for the purpose of meeting the performance 
     requirements of advanced technology vehicles.
       (b) Advanced Vehicles Manufacturing Facility.--The 
     Secretary shall provide facility funding awards under this 
     section to automobile manufacturers and component suppliers 
     to pay not more than 30 percent of the cost of--
       (1) reequipping, expanding, or establishing a manufacturing 
     facility in the United States to produce--
       (A) qualifying advanced technology vehicles; or
       (B) qualifying components; and
       (2) engineering integration performed in the United States 
     of qualifying vehicles and qualifying components.
       (c) Period of Availability.--An award under subsection (b) 
     shall apply to--
       (1) facilities and equipment placed in service before 
     December 30, 2020; and
       (2) engineering integration costs incurred during the 
     period beginning on the date of enactment of this Act and 
     ending on December 30, 2020.
       (d) Direct Loan Program.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, and subject to the availability of 
     appropriated funds, the Secretary shall carry out a program 
     to provide a total of not more than $25,000,000,000 in loans 
     to eligible individuals and entities (as determined by the 
     Secretary) for the costs of activities described in 
     subsection (b).
       (2) Application.--An applicant for a loan under this 
     subsection shall submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require, including a written assurance 
     that--
       (A) all laborers and mechanics employed by contractors or 
     subcontractors during construction, alteration, or repair 
     that is financed, in whole or in part, by a loan under this 
     section shall be paid wages at rates not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor in accordance with 
     sections 3141-3144, 3146, and 3147 of title 40, United States 
     Code; and
       (B) the Secretary of Labor shall, with respect to the labor 
     standards described in this paragraph, have the authority and 
     functions set forth in Reorganization Plan Numbered 14 of 
     1950 (5 U.S.C. App.) and section 3145 of title 40, United 
     States Code.
       (3) Selection of eligible projects.--The Secretary shall 
     select eligible projects to receive loans under this 
     subsection in cases in which, as determined by the Secretary, 
     the award recipient--

[[Page 33879]]

       (A) is financially viable without the receipt of additional 
     Federal funding associated with the proposed project;
       (B) will provide sufficient information to the Secretary 
     for the Secretary to ensure that the qualified investment is 
     expended efficiently and effectively; and
       (C) has met such other criteria as may be established and 
     published by the Secretary.
       (4) Rates, terms, and repayment of loans.--A loan provided 
     under this subsection--
       (A) shall have an interest rate that, as of the date on 
     which the loan is made, is equal to the cost of funds to the 
     Department of the Treasury for obligations of comparable 
     maturity;
       (B) shall have a term equal to the lesser of--
       (i) the projected life, in years, of the eligible project 
     to be carried out using funds from the loan, as determined by 
     the Secretary; and
       (ii) 25 years;
       (C) may be subject to a deferral in repayment for not more 
     than 5 years after the date on which the eligible project 
     carried out using funds from the loan first begins 
     operations, as determined by the Secretary; and
       (D) shall be made by the Federal Financing Bank.
       (e) Improvement.--The Secretary shall issue regulations 
     that require that, in order for an automobile manufacturer to 
     be eligible for an award or loan under this section during a 
     particular year, the adjusted average fuel economy of the 
     manufacturer for light duty vehicles produced by the 
     manufacturer during the most recent year for which data are 
     available shall be not less than the average fuel economy for 
     all light duty vehicles of the manufacturer for model year 
     2005. In order to determine fuel economy baselines for 
     eligibility of a new manufacturer or a manufacturer that has 
     not produced previously produced equivalent vehicles, the 
     Secretary may substitute industry averages.
       (f) Fees.--Administrative costs shall be no more than 
     $100,000 or 10 basis point of the loan.
       (g) Priority.--The Secretary shall, in making awards or 
     loans to those manufacturers that have existing facilities, 
     give priority to those facilities that are oldest or have 
     been in existence for at least 20 years. Such facilities can 
     currently be sitting idle.
       (h) Set Aside for Small Automobile Manufacturers and 
     Component Suppliers.--
       (1) Definition of covered firm.--In this subsection, the 
     term ``covered firm'' means a firm that--
       (A) employs less than 500 individuals; and
       (B) manufactures automobiles or components of automobiles.
       (2) Set aside.--Of the amount of funds that are used to 
     provide awards for each fiscal year under subsection (b), the 
     Secretary shall use not less than 10 percent to provide 
     awards to covered firms or consortia led by a covered firm.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section for each of fiscal years 2008 through 2012.

                   Subtitle C--Federal Vehicle Fleets

     SEC. 141. FEDERAL VEHICLE FLEETS.

       Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 
     13212) is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Vehicle Emission Requirements.--
       ``(1) Definitions.--In this subsection:
       ``(A) Federal agency.--The term `Federal agency' does not 
     include any office of the legislative branch, except that it 
     does include the House of Representatives with respect to an 
     acquisition described in paragraph (2)(C).
       ``(B) Medium duty passenger vehicle.--The term `medium duty 
     passenger vehicle' has the meaning given that term section 
     523.2 of title 49 of the Code of Federal Regulations, as in 
     effect on the date of enactment of this paragraph.
       ``(C) Member's representational allowance.--The term 
     `Member's Representational Allowance' means the allowance 
     described in section 101(a) of the House of Representatives 
     Administrative Reform Technical Corrections Act (2 U.S.C. 
     57b(a)).
       ``(2) Prohibition.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     no Federal agency shall acquire a light duty motor vehicle or 
     medium duty passenger vehicle that is not a low greenhouse 
     gas emitting vehicle.
       ``(B) Exception.--The prohibition in subparagraph (A) shall 
     not apply to acquisition of a vehicle if the head of the 
     agency certifies in writing, in a separate certification for 
     each individual vehicle purchased, either--
       ``(i) that no low greenhouse gas emitting vehicle is 
     available to meet the functional needs of the agency and 
     details in writing the functional needs that could not be met 
     with a low greenhouse gas emitting vehicle; or
       ``(ii) that the agency has taken specific alternative more 
     cost-effective measures to reduce petroleum consumption 
     that--

       ``(I) have reduced a measured and verified quantity of 
     greenhouse gas emissions equal to or greater than the 
     quantity of greenhouse gas reductions that would have been 
     achieved through acquisition of a low greenhouse gas emitting 
     vehicle over the lifetime of the vehicle; or
       ``(II) will reduce each year a measured and verified 
     quantity of greenhouse gas emissions equal to or greater than 
     the quantity of greenhouse gas reductions that would have 
     been achieved each year through acquisition of a low 
     greenhouse gas emitting vehicle.

       ``(C) Special rule for vehicles provided by funds contained 
     in members' representational allowance.--This paragraph shall 
     apply to the acquisition of a light duty motor vehicle or 
     medium duty passenger vehicle using any portion of a Member's 
     Representational Allowance, including an acquisition under a 
     long-term lease.
       ``(3) Guidance.--
       ``(A) In general.--Each year, the Administrator of the 
     Environmental Protection Agency shall issue guidance 
     identifying the makes and model numbers of vehicles that are 
     low greenhouse gas emitting vehicles.
       ``(B) Consideration.--In identifying vehicles under 
     subparagraph (A), the Administrator shall take into account 
     the most stringent standards for vehicle greenhouse gas 
     emissions applicable to and enforceable against motor vehicle 
     manufacturers for vehicles sold anywhere in the United 
     States.
       ``(C) Requirement.--The Administrator shall not identify 
     any vehicle as a low greenhouse gas emitting vehicle if the 
     vehicle emits greenhouse gases at a higher rate than such 
     standards allow for the manufacturer's fleet average grams 
     per mile of carbon dioxide-equivalent emissions for that 
     class of vehicle, taking into account any emissions 
     allowances and adjustment factors such standards provide.''.

     SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.

       Part J of title III of the Energy Policy and Conservation 
     Act (42 U.S.C. 6374 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.

       ``(a) Mandatory Reduction in Petroleum Consumption.--
       ``(1) In general.--Not later than 18 months after the date 
     of enactment of this section, the Secretary shall issue 
     regulations for Federal fleets subject to section 400AA to 
     require that, beginning in fiscal year 2010, each Federal 
     agency shall reduce petroleum consumption and increase 
     alternative fuel consumption each year by an amount necessary 
     to meet the goals described in paragraph (2).
       ``(2) Goals.--The goals of the requirements under paragraph 
     (1) are that not later than October 1, 2015, and for each 
     year thereafter, each Federal agency shall achieve at least a 
     20 percent reduction in annual petroleum consumption and a 10 
     percent increase in annual alternative fuel consumption, as 
     calculated from the baseline established by the Secretary for 
     fiscal year 2005.
       ``(3) Milestones.--The Secretary shall include in the 
     regulations described in paragraph (1)--
       ``(A) interim numeric milestones to assess annual agency 
     progress towards accomplishing the goals described in that 
     paragraph; and
       ``(B) a requirement that agencies annually report on 
     progress towards meeting each of the milestones and the 2015 
     goals.
       ``(b) Plan.--
       ``(1) Requirement.--
       ``(A) In general.--The regulations under subsection (a) 
     shall require each Federal agency to develop a plan, and 
     implement the measures specified in the plan by dates 
     specified in the plan, to meet the required petroleum 
     reduction levels and the alternative fuel consumption 
     increases, including the milestones specified by the 
     Secretary.
       ``(B) Inclusions.--The plan shall--
       ``(i) identify the specific measures the agency will use to 
     meet the requirements of subsection (a)(2); and
       ``(ii) quantify the reductions in petroleum consumption or 
     increases in alternative fuel consumption projected to be 
     achieved by each measure each year.
       ``(2) Measures.--The plan may allow an agency to meet the 
     required petroleum reduction level through--
       ``(A) the use of alternative fuels;
       ``(B) the acquisition of vehicles with higher fuel economy, 
     including hybrid vehicles, neighborhood electric vehicles, 
     electric vehicles, and plug-in hybrid vehicles if the 
     vehicles are commercially available;
       ``(C) the substitution of cars for light trucks;
       ``(D) an increase in vehicle load factors;
       ``(E) a decrease in vehicle miles traveled;
       ``(F) a decrease in fleet size; and
       ``(G) other measures.''.

   TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

                  Subtitle A--Renewable Fuel Standard

     SEC. 201. DEFINITIONS.

       Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) 
     is amended to read as follows:
       ``(1) Definitions.--In this section:
       ``(A) Additional renewable fuel.--The term `additional 
     renewable fuel' means fuel that is produced from renewable 
     biomass and that is used to replace or reduce the quantity of 
     fossil fuel present in home heating oil or jet fuel.
       ``(B) Advanced biofuel.--

[[Page 33880]]

       ``(i) In general.--The term `advanced biofuel' means 
     renewable fuel, other than ethanol derived from corn starch, 
     that has lifecycle greenhouse gas emissions, as determined by 
     the Administrator, after notice and opportunity for comment, 
     that are at least 50 percent less than baseline lifecycle 
     greenhouse gas emissions.
       ``(ii) Inclusions.--The types of fuels eligible for 
     consideration as `advanced biofuel' may include any of the 
     following:

       ``(I) Ethanol derived from cellulose, hemicellulose, or 
     lignin.
       ``(II) Ethanol derived from sugar or starch (other than 
     corn starch).
       ``(III) Ethanol derived from waste material, including crop 
     residue, other vegetative waste material, animal waste, and 
     food waste and yard waste.
       ``(IV) Biomass-based diesel.
       ``(V) Biogas (including landfill gas and sewage waste 
     treatment gas) produced through the conversion of organic 
     matter from renewable biomass.
       ``(VI) Butanol or other alcohols produced through the 
     conversion of organic matter from renewable biomass.
       ``(VII) Other fuel derived from cellulosic biomass.

       ``(C) Baseline lifecycle greenhouse gas emissions.--The 
     term `baseline lifecycle greenhouse gas emissions' means the 
     average lifecycle greenhouse gas emissions, as determined by 
     the Administrator, after notice and opportunity for comment, 
     for gasoline or diesel (whichever is being replaced by the 
     renewable fuel) sold or distributed as transportation fuel in 
     2005.
       ``(D) Biomass-based diesel.--The term `biomass-based 
     diesel' means renewable fuel that is biodiesel as defined in 
     section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 
     13220(f)) and that has lifecycle greenhouse gas emissions, as 
     determined by the Administrator, after notice and opportunity 
     for comment, that are at least 50 percent less than the 
     baseline lifecycle greenhouse gas emissions. Notwithstanding 
     the preceding sentence, renewable fuel derived from co-
     processing biomass with a petroleum feedstock shall be 
     advanced biofuel if it meets the requirements of subparagraph 
     (B), but is not biomass-based diesel.
       ``(E) Cellulosic biofuel.--The term `cellulosic biofuel' 
     means renewable fuel derived from any cellulose, 
     hemicellulose, or lignin that is derived from renewable 
     biomass and that has lifecycle greenhouse gas emissions, as 
     determined by the Administrator, that are at least 60 percent 
     less than the baseline lifecycle greenhouse gas emissions.
       ``(F) Conventional biofuel.--The term `conventional 
     biofuel' means renewable fuel that is ethanol derived from 
     corn starch.
       ``(G) Greenhouse gas.--The term `greenhouse gas' means 
     carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, sulfur hexafluoride. The Administrator may 
     include any other anthropogenically-emitted gas that is 
     determined by the Administrator, after notice and comment, to 
     contribute to global warming.
       ``(H) Lifecycle greenhouse gas emissions.--The term 
     `lifecycle greenhouse gas emissions' means the aggregate 
     quantity of greenhouse gas emissions (including direct 
     emissions and significant indirect emissions such as 
     significant emissions from land use changes), as determined 
     by the Administrator, related to the full fuel lifecycle, 
     including all stages of fuel and feedstock production and 
     distribution, from feedstock generation or extraction through 
     the distribution and delivery and use of the finished fuel to 
     the ultimate consumer, where the mass values for all 
     greenhouse gases are adjusted to account for their relative 
     global warming potential.
       ``(I) Renewable biomass.--The term `renewable biomass' 
     means each of the following:
       ``(i) Planted crops and crop residue harvested from 
     agricultural land cleared or cultivated at any time prior to 
     the enactment of this sentence that is either actively 
     managed or fallow, and nonforested.
       ``(ii) Planted trees and tree residue from actively managed 
     tree plantations on non-federal land cleared at any time 
     prior to enactment of this sentence, including land belonging 
     to an Indian tribe or an Indian individual, that is held in 
     trust by the United States or subject to a restriction 
     against alienation imposed by the United States.
       ``(iii) Animal waste material and animal byproducts.
       ``(iv) Slash and pre-commercial thinnings that are from 
     non-federal forestlands, including forestlands belonging to 
     an Indian tribe or an Indian individual, that are held in 
     trust by the United States or subject to a restriction 
     against alienation imposed by the United States, but not 
     forests or forestlands that are ecological communities with a 
     global or State ranking of critically imperiled, imperiled, 
     or rare pursuant to a State Natural Heritage Program, old 
     growth forest, or late successional forest.
       ``(v) Biomass obtained from the immediate vicinity of 
     buildings and other areas regularly occupied by people, or of 
     public infrastructure, at risk from wildfire.
       ``(vi) Algae.
       ``(vii) Separated yard waste or food waste, including 
     recycled cooking and trap grease.
       ``(J) Renewable fuel.--The term `renewable fuel' means fuel 
     that is produced from renewable biomass and that is used to 
     replace or reduce the quantity of fossil fuel present in a 
     transportation fuel.
       ``(K) Small refinery.--The term `small refinery' means a 
     refinery for which the average aggregate daily crude oil 
     throughput for a calendar year (as determined by dividing the 
     aggregate throughput for the calendar year by the number of 
     days in the calendar year) does not exceed 75,000 barrels.
       ``(L) Transportation fuel.--The term `transportation fuel' 
     means fuel for use in motor vehicles, motor vehicle engines, 
     nonroad vehicles, or nonroad engines (except for ocean-going 
     vessels).''.

     SEC. 202. RENEWABLE FUEL STANDARD.

       (a) Renewable Fuel Program.--Paragraph (2) of section 
     211(o) (42 U.S.C. 7545(o)(2)) of the Clean Air Act is amended 
     as follows:
       (1) Regulations.--Clause (i) of subparagraph (A) is amended 
     by adding the following at the end thereof: ``Not later than 
     1 year after the date of enactment of this sentence, the 
     Administrator shall revise the regulations under this 
     paragraph to ensure that transportation fuel sold or 
     introduced into commerce in the United States (except in 
     noncontiguous States or territories), on an annual average 
     basis, contains at least the applicable volume of renewable 
     fuel, advanced biofuel, cellulosic biofuel, and biomass-based 
     diesel, determined in accordance with subparagraph (B) and, 
     in the case of any such renewable fuel produced from new 
     facilities that commence construction after the date of 
     enactment of this sentence, achieves at least a 20 percent 
     reduction in lifecycle greenhouse gas emissions compared to 
     baseline lifecycle greenhouse gas emissions.''
       (2) Applicable volumes of renewable fuel.--Subparagraph (B) 
     is amended to read as follows:
       ``(B) Applicable volumes.--
       ``(i) Calendar years after 2005.--

       ``(I) Renewable fuel.--For the purpose of subparagraph (A), 
     the applicable volume of renewable fuel for the calendar 
     years 2006 through 2022 shall be determined in accordance 
     with the following table:

                                    Applicable volume of renewable fuel
``Calendar year:                              (in billions of gallons):
  2006..............................................................4.0
  2007..............................................................4.7
  2008..............................................................9.0
  2009.............................................................11.1
  2010............................................................12.95
  2011............................................................13.95
  2012.............................................................15.2
  2013............................................................16.55
  2014............................................................18.15
  2015.............................................................20.5
  2016............................................................22.25
  2017.............................................................24.0
  2018.............................................................26.0
  2019.............................................................28.0
  2020.............................................................30.0
  2021.............................................................33.0
  2022.............................................................36.0

       ``(II) Advanced biofuel.--For the purpose of subparagraph 
     (A), of the volume of renewable fuel required under subclause 
     (I), the applicable volume of advanced biofuel for the 
     calendar years 2009 through 2022 shall be determined in 
     accordance with the following table:

                                  Applicable volume of advanced biofuel
``Calendar year:                              (in billions of gallons):
  2009..............................................................0.6
  2010.............................................................0.95
  2011.............................................................1.35
  2012..............................................................2.0
  2013.............................................................2.75
  2014.............................................................3.75
  2015..............................................................5.5
  2016.............................................................7.25
  2017..............................................................9.0
  2018.............................................................11.0
  2019.............................................................13.0
  2020.............................................................15.0
  2021.............................................................18.0
  2022.............................................................21.0

       ``(III) Cellulosic biofuel.--For the purpose of 
     subparagraph (A), of the volume of advanced biofuel required 
     under subclause (II), the applicable volume of cellulosic 
     biofuel for the calendar years 2010 through 2022 shall be 
     determined in accordance with the following table:

                                Applicable volume of cellulosic biofuel
``Calendar year:                              (in billions of gallons):
  2010..............................................................0.1
  2011.............................................................0.25
  2012..............................................................0.5
  2013..............................................................1.0
  2014.............................................................1.75
  2015..............................................................3.0
  2016.............................................................4.25
  2017..............................................................5.5
  2018..............................................................7.0
  2019..............................................................8.5
  2020.............................................................10.5
  2021.............................................................13.5
  2022.............................................................16.0

       ``(IV) Biomass-based diesel.--For the purpose of 
     subparagraph (A), of the volume of advanced biofuel required 
     under subclause (II), the applicable volume of biomass-based

[[Page 33881]]

     diesel for the calendar years 2009 through 2012 shall be 
     determined in accordance with the following table:

                              Applicable volume of biomass-based diesel
``Calendar year:                              (in billions of gallons):
  2009..............................................................0.5
  2010.............................................................0.65
  2011.............................................................0.80
  2012..............................................................1.0

       ``(ii) Other calendar years.--For the purposes of 
     subparagraph (A), the applicable volumes of each fuel 
     specified in the tables in clause (i) for calendar years 
     after the calendar years specified in the tables shall be 
     determined by the Administrator, in coordination with the 
     Secretary of Energy and the Secretary of Agriculture, based 
     on a review of the implementation of the program during 
     calendar years specified in the tables, and an analysis of--

       ``(I) the impact of the production and use of renewable 
     fuels on the environment, including on air quality, climate 
     change, conversion of wet lands, eco-systems, wildlife 
     habitat, water quality, and water supply;
       ``(II) the impact of renewable fuels on the energy security 
     of the United States;
       ``(III) the expected annual rate of future commercial 
     production of renewable fuels, including advanced biofuels in 
     each category (cellulosic biofuel and biomass-based diesel);
       ``(IV) the impact of renewable fuels on the infrastructure 
     of the United States, including deliverability of materials, 
     goods, and products other than renewable fuel, and the 
     sufficiency of infrastructure to deliver and use renewable 
     fuel;
       ``(V) the impact of the use of renewable fuels on the cost 
     to consumers of transportation fuel and on the cost to 
     transport goods; and
       ``(VI) the impact of the use of renewable fuels on other 
     factors, including job creation, the price and supply of 
     agricultural commodities, rural economic development, and 
     food prices.

     The Administrator shall promulgate rules establishing the 
     applicable volumes under this clause no later than 14 months 
     before the first year for which such applicable volume will 
     apply.
       ``(iii) Applicable volume of advanced biofuel.--For the 
     purpose of making the determinations in clause (ii), for each 
     calendar year, the applicable volume of advanced biofuel 
     shall be at least the same percentage of the applicable 
     volume of renewable fuel as in calendar year 2022.
       ``(iv) Applicable volume of cellulosic biofuel.--For the 
     purpose of making the determinations in clause (ii), for each 
     calendar year, the applicable volume of cellulosic biofuel 
     established by the Administrator shall be based on the 
     assumption that the Administrator will not need to issue a 
     waiver for such years under paragraph (7)(D).
       ``(v) Minimum applicable volume of biomass-based diesel.--
     For the purpose of making the determinations in clause (ii), 
     the applicable volume of biomass-based diesel shall not be 
     less than the applicable volume listed in clause (i)(IV) for 
     calendar year 2012.''.
       (b) Applicable Percentages.--Paragraph (3) of section 
     211(o) of the Clean Air Act (42 U.S.C. 7545(o)(3)) is amended 
     as follows:
       (1) In subparagraph (A), by striking ``2011'' and inserting 
     ``2021''.
       (2) In subparagraph (A), by striking ``gasoline'' and 
     inserting ``transportation fuel, biomass-based diesel, and 
     cellulosic biofuel''.
       (3) In subparagraph (B), by striking ``2012'' and inserting 
     ``2021'' in clause (i).
       (4) In subparagraph (B), by striking ``gasoline'' and 
     inserting ``transportation fuel'' in clause (ii)(II).
       (c) Modification of Greenhouse Gas Percentages.--Paragraph 
     (4) of section 211(o) of the Clean Air Act (42 U.S.C. 
     7545(o)(4)) is amended to read as follows:
       ``(4) Modification of greenhouse gas reduction 
     percentages.--
       ``(A) In general.--The Administrator may, in the 
     regulations under the last sentence of paragraph (2)(A)(i), 
     adjust the 20 percent, 50 percent, and 60 percent reductions 
     in lifecycle greenhouse gas emissions specified in paragraphs 
     (2)(A)(i)(relating to renewable fuel), (1)(D) (relating to 
     biomass-based diesel), (1)(B)(i)(relating to advanced 
     biofuel), and (1)(E) (relating to cellulosic biofuel) to a 
     lower percentage. For the 50 and 60 percent reductions, the 
     Administrator may make such an adjustment only if he 
     determines that generally such reduction is not commercially 
     feasible for fuels made using a variety of feedstocks, 
     technologies, and processes to meet the applicable reduction.
       ``(B) Amount of adjustment.--In promulgating regulations 
     under this paragraph, the specified 50 percent reduction in 
     greenhouse gas emissions from advanced biofuel and in 
     biomass-based diesel may not be reduced below 40 percent. The 
     specified 20 percent reduction in greenhouse gas emissions 
     from renewable fuel may not be reduced below 10 percent, and 
     the specified 60 percent reduction in greenhouse gas 
     emissions from cellulosic biofuel may not be reduced below 50 
     percent.
       ``(C) Adjusted reduction levels.--An adjustment under this 
     paragraph to a percent less than the specified 20 percent 
     greenhouse gas reduction for renewable fuel shall be the 
     minimum possible adjustment, and the adjusted greenhouse gas 
     reduction shall be established by the Administrator at the 
     maximum achievable level, taking cost in consideration, for 
     natural gas fired corn-based ethanol plants, allowing for the 
     use of a variety of technologies and processes. An adjustment 
     in the 50 or 60 percent greenhouse gas levels shall be the 
     minimum possible adjustment for the fuel or fuels concerned, 
     and the adjusted greenhouse gas reduction shall be 
     established at the maximum achievable level, taking cost in 
     consideration, allowing for the use of a variety of 
     feedstocks, technologies, and processes.
       ``(D) 5-year review.--Whenever the Administrator makes any 
     adjustment under this paragraph, not later than 5 years 
     thereafter he shall review and revise (based upon the same 
     criteria and standards as required for the initial 
     adjustment) the regulations establishing the adjusted level.
       ``(E) Subsequent adjustments.--After the Administrator has 
     promulgated a final rule under the last sentence of paragraph 
     (2)(A)(i) with respect to the method of determining lifecycle 
     greenhouse gas emissions, except as provided in subparagraph 
     (D), the Administrator may not adjust the percent greenhouse 
     gas reduction levels unless he determines that there has been 
     a significant change in the analytical methodology used for 
     determining the lifecycle greenhouse gas emissions. If he 
     makes such determination, he may adjust the 20, 50, or 60 
     percent reduction levels through rulemaking using the 
     criteria and standards set forth in this paragraph.
       ``(F) Limit on upward adjustments.--If, under subparagraph 
     (D) or (E), the Administrator revises a percent level 
     adjusted as provided in subparagraph (A), (B), and (C) to a 
     higher percent, such higher percent may not exceed the 
     applicable percent specified in paragraph (2)(A)(i), 
     (1)(D),(1)(B)(i), or (1)(E).
       ``(G) Applicability of adjustments.--If the Administrator 
     adjusts, or revises, a percent level referred to in this 
     paragraph or makes a change in the analytical methodology 
     used for determining the lifecycle greenhouse gas emissions, 
     such adjustment, revision, or change (or any combination 
     thereof) shall only apply to renewable fuel from new 
     facilities that commence construction after the effective 
     date of such adjustment, revision, or change.''.
       (d) Credits for Additional Renewable Fuel.--Paragraph (5) 
     of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) 
     is amended by adding the following new subparagraph at the 
     end thereof:
       ``(E) Credits for additional renewable fuel.--The 
     Administrator may issue regulations providing (i) for the 
     generation of an appropriate amount of credits by any person 
     that refines, blends, or imports additional renewable fuels 
     specified by the Administrator and (ii) for the use of such 
     credits by the generator, or the transfer of all or a portion 
     of the credits to another person, for the purpose of 
     complying with paragraph (2).''.
       (e) Waivers.--
       (1) In general.--Paragraph (7)(A) of section 211(o) of the 
     Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by 
     inserting ``, by any person subject to the requirements of 
     this subsection, or by the Administrator on his own motion'' 
     after ``one or more States'' in subparagraph (A) and by 
     striking out ``State'' in subparagraph (B).
       (2) Cellulosic biofuel.--Paragraph (7) of section 211(o) of 
     the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding 
     the following at the end thereof:
       ``(D) Cellulosic biofuel.--(i) For any calendar year for 
     which the projected volume of cellulosic biofuel production 
     is less than the minimum applicable volume established under 
     paragraph (2)(B), as determined by the Administrator based on 
     the estimate provided under paragraph (3)(A), not later than 
     November 30 of the preceding calendar year, the Administrator 
     shall reduce the applicable volume of cellulosic biofuel 
     required under paragraph (2)(B) to the projected volume 
     available during that calendar year. For any calendar year in 
     which the Administrator makes such a reduction, the 
     Administrator may also reduce the applicable volume of 
     renewable fuel and advanced biofuels requirement established 
     under paragraph (2)(B) by the same or a lesser volume.
       ``(ii) Whenever the Administrator reduces the minimum 
     cellulosic biofuel volume under this subparagraph, the 
     Administrator shall make available for sale cellulosic 
     biofuel credits at the higher of $0.25 per gallon or the 
     amount by which $3.00 per gallon exceeds the average 
     wholesale price of a gallon of gasoline in the United States. 
     Such amounts shall be adjusted for inflation by the 
     Administrator for years after 2008.
       ``(iii) 18 months after date of enactment of this 
     subparagraph, the Administrator shall promulgate regulations 
     to govern the issuance of credits under this subparagraph. 
     The regulations shall set forth the method for determining 
     the exact price of credits in the event of a waiver. The 
     price of such credits shall not be changed more frequently 
     than once each quarter. These regulations shall include such 
     provisions, including limiting the credits' uses and useful 
     life, as the Administrator deems appropriate to assist

[[Page 33882]]

     market liquidity and transparency, to provide appropriate 
     certainty for regulated entities and renewable fuel 
     producers, and to limit any potential misuse of cellulosic 
     biofuel credits to reduce the use of other renewable fuels, 
     and for such other purposes as the Administrator determines 
     will help achieve the goals of this subsection. The 
     regulations shall limit the number of cellulosic biofuel 
     credits for any calendar year to the minimum applicable 
     volume (as reduced under this subparagraph) of cellulosic 
     biofuel for that year.''.
       (3) Biomass-based diesel.--Paragraph (7) of section 211(o) 
     of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by 
     adding the following at the end thereof:
       ``(E) Biomass-based diesel.--
       ``(i) Market evaluation.--The Administrator, in 
     consultation with the Secretary of Energy and the Secretary 
     of Agriculture, shall periodically evaluate the impact of the 
     biomass-based diesel requirements established under this 
     paragraph on the price of diesel fuel.
       ``(ii) Waiver.--If the Administrator determines that there 
     is a significant renewable feedstock disruption or other 
     market circumstances that would make the price of biomass-
     based diesel fuel increase significantly, the Administrator, 
     in consultation with the Secretary of Energy and the 
     Secretary of Agriculture, shall issue an order to reduce, for 
     up to a 60-day period, the quantity of biomass-based diesel 
     required under subparagraph (A) by an appropriate quantity 
     that does not exceed 15 percent of the applicable annual 
     requirement for biomass-based diesel. For any calendar year 
     in which the Administrator makes a reduction under this 
     subparagraph, the Administrator may also reduce the 
     applicable volume of renewable fuel and advanced biofuels 
     requirement established under paragraph (2)(B) by the same or 
     a lesser volume.
       ``(iii) Extensions.--If the Administrator determines that 
     the feedstock disruption or circumstances described in clause 
     (ii) is continuing beyond the 60-day period described in 
     clause (ii) or this clause, the Administrator, in 
     consultation with the Secretary of Energy and the Secretary 
     of Agriculture, may issue an order to reduce, for up to an 
     additional 60-day period, the quantity of biomass-based 
     diesel required under subparagraph (A) by an appropriate 
     quantity that does not exceed an additional 15 percent of the 
     applicable annual requirement for biomass-based diesel.
       ``(F) Modification of applicable volumes.--For any of the 
     tables in paragraph (2)(B), if the Administrator waives--
       ``(i) at least 20 percent of the applicable volume 
     requirement set forth in any such table for 2 consecutive 
     years; or
       ``(ii) at least 50 percent of such volume requirement for a 
     single year,

     the Administrator shall promulgate a rule (within one year 
     after issuing such waiver) that modifies the applicable 
     volumes set forth in the table concerned for all years 
     following the final year to which the waiver applies, except 
     that no such modification in applicable volumes shall be made 
     for any year before 2016. In promulgating such a rule, the 
     Administrator shall comply with the processes, criteria, and 
     standards set forth in paragraph (2)(B)(ii).''.

     SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.

       (a) In General.--The Secretary of Energy, in consultation 
     with the Secretary of Agriculture and the Administrator of 
     the Environmental Protection Agency, shall enter into an 
     arrangement with the National Academy of Sciences under which 
     the Academy shall conduct a study to assess the impact of the 
     requirements described in section 211(o) of the Clean Air Act 
     on each industry relating to the production of feed grains, 
     livestock, food, forest products, and energy.
       (b) Participation.--In conducting the study under this 
     section, the National Academy of Sciences shall seek the 
     participation, and consider the input, of--
       (1) producers of feed grains;
       (2) producers of livestock, poultry, and pork products;
       (3) producers of food and food products;
       (4) producers of energy;
       (5) individuals and entities interested in issues relating 
     to conservation, the environment, and nutrition;
       (6) users and consumer of renewable fuels;
       (7) producers and users of biomass feedstocks; and
       (8) land grant universities.
       (c) Considerations.--In conducting the study, the National 
     Academy of Sciences shall consider--
       (1) the likely impact on domestic animal agriculture 
     feedstocks that, in any crop year, are significantly below 
     current projections;
       (2) policy options to alleviate the impact on domestic 
     animal agriculture feedstocks that are significantly below 
     current projections; and
       (3) policy options to maintain regional agricultural and 
     silvicultural capability.
       (d) Components.--The study shall include--
       (1) a description of the conditions under which the 
     requirements described in section 211(o) of the Clean Air Act 
     should be suspended or reduced to prevent adverse impacts to 
     domestic animal agriculture feedstocks described in 
     subsection (c)(2) or regional agricultural and silvicultural 
     capability described in subsection (c)(3); and
       (2) recommendations for the means by which the Federal 
     Government could prevent or minimize adverse economic 
     hardships and impacts.
       (e) Deadline for Completion of Study.--Not later than 18 
     months after the date of enactment of this Act, the Secretary 
     shall submit to Congress a report that describes the results 
     of the study under this section.
       (f) Periodic Reviews.--Section 211(o) of the Clean Air Act 
     is amended by adding the following at the end thereof:
       ``(11) Periodic reviews.--To allow for the appropriate 
     adjustment of the requirements described in subparagraph (B) 
     of paragraph (2), the Administrator shall conduct periodic 
     reviews of--
       ``(A) existing technologies;
       ``(B) the feasibility of achieving compliance with the 
     requirements; and
       ``(C) the impacts of the requirements described in 
     subsection (a)(2) on each individual and entity described in 
     paragraph (2).''.

     SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.

       (a) In General.--Not later than 3 years after the enactment 
     of this section and every 3 years thereafter, the 
     Administrator of the Environmental Protection Agency, in 
     consultation with the Secretary of Agriculture and the 
     Secretary of Energy, shall assess and report to Congress on 
     the impacts to date and likely future impacts of the 
     requirements of section 211(o) of the Clean Air Act on the 
     following:
       (1) Environmental issues, including air quality, effects on 
     hypoxia, pesticides, sediment, nutrient and pathogen levels 
     in waters, acreage and function of waters, and soil 
     environmental quality.
       (2) Resource conservation issues, including soil 
     conservation, water availability, and ecosystem health and 
     biodiversity, including impacts on forests, grasslands, and 
     wetlands.
       (3) The growth and use of cultivated invasive or noxious 
     plants and their impacts on the environment and agriculture.

     In advance of preparing the report required by this 
     subsection, the Administrator may seek the views of the 
     National Academy of Sciences or another appropriate 
     independent research institute. The report shall include the 
     annual volume of imported renewable fuels and feedstocks for 
     renewable fuels, and the environmental impacts outside the 
     United States of producing such fuels and feedstocks. The 
     report required by this subsection shall include 
     recommendations for actions to address any adverse impacts 
     found.
       (b) Effect on Air Quality and Other Environmental 
     Requirements.--Except as provided in section 211(o)(13) of 
     the Clean Air Act, nothing in the amendments made by this 
     title to section 211(o) of the Clean Air Act shall be 
     construed as superseding, or limiting, any more 
     environmentally protective requirement under the Clean Air 
     Act, or under any other provision of State or Federal law or 
     regulation, including any environmental law or regulation.

     SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING.

       (a) In General.--Each retail diesel fuel pump shall be 
     labeled in a manner that informs consumers of the percent of 
     biomass-based diesel or biodiesel that is contained in the 
     biomass-based diesel blend or biodiesel blend that is offered 
     for sale, as determined by the Federal Trade Commission.
       (b) Labeling Requirements.--Not later than 180 days after 
     the date of enactment of this section, the Federal Trade 
     Commission shall promulgate biodiesel labeling requirements 
     as follows:
       (1) Biomass-based diesel blends or biodiesel blends that 
     contain less than or equal to 5 percent biomass-based diesel 
     or biodiesel by volume and that meet ASTM D975 diesel 
     specifications shall not require any additional labels.
       (2) Biomass based diesel blends or biodiesel blends that 
     contain more than 5 percent biomass-based diesel or biodiesel 
     by volume but not more than 20 percent by volume shall be 
     labeled ``contains biomass-based diesel or biodiesel in 
     quantities between 5 percent and 20 percent''.
       (3) Biomass-based diesel or biodiesel blends that contain 
     more than 20 percent biomass based or biodiesel by volume 
     shall be labeled ``contains more than 20 percent biomass-
     based diesel or biodiesel''.
       (c) Definitions.--In this section:
       (1) Astm.--The term ``ASTM'' means the American Society of 
     Testing and Materials.
       (2) Biomass-based diesel.--The term ``biomass-based 
     diesel'' means biodiesel as defined in section 312(f) of the 
     Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
       (3) Biodiesel.--The term ``biodiesel'' means the monoalkyl 
     esters of long chain fatty acids derived from plant or animal 
     matter that meet--
       (A) the registration requirements for fuels and fuel 
     additives under this section; and
       (B) the requirements of ASTM standard D6751.
       (4) Biomass-based diesel and biodiesel blends.--The terms 
     ``biomass-based diesel blend'' and ``biodiesel blend'' means 
     a blend of ``biomass-based diesel'' or ``biodiesel'' fuel

[[Page 33883]]

     that is blended with petroleum based diesel fuel.

     SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY 
                   IN ELECTRIC VEHICLES.

       (a) Definition of Electric Vehicle.--In this section, the 
     term ``electric vehicle'' means an electric motor vehicle (as 
     defined in section 601 of the Energy Policy Act of 1992 (42 
     U.S.C. 13271)) for which the rechargeable storage battery--
       (1) receives a charge directly from a source of electric 
     current that is external to the vehicle; and
       (2) provides a minimum of 80 percent of the motive power of 
     the vehicle.
       (b) Study.--The Administrator of the Environmental 
     Protection Agency shall conduct a study on the feasibility of 
     issuing credits under the program established under section 
     211(o) of the Clean Air Act to electric vehicles powered by 
     electricity produced from renewable energy sources.
       (c) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Energy and Natural Resources of the United 
     States Senate and the Committee on Energy and Commerce of the 
     United States House of Representatives a report that 
     describes the results of the study, including a description 
     of--
       (1) existing programs and studies on the use of renewable 
     electricity as a means of powering electric vehicles; and
       (2) alternatives for--
       (A) designing a pilot program to determine the feasibility 
     of using renewable electricity to power electric vehicles as 
     an adjunct to a renewable fuels mandate;
       (B) allowing the use, under the pilot program designed 
     under subparagraph (A), of electricity generated from nuclear 
     energy as an additional source of supply;
       (C) identifying the source of electricity used to power 
     electric vehicles; and
       (D) equating specific quantities of electricity to 
     quantities of renewable fuel under section 211(o) of the 
     Clean Air Act.

     SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.

       (a) In General.--The Secretary of Energy shall establish a 
     grant program to encourage the production of advanced 
     biofuels.
       (b) Requirements and Priority.--In making grants under this 
     section, the Secretary--
       (1) shall make awards to the proposals for advanced 
     biofuels with the greatest reduction in lifecycle greenhouse 
     gas emissions compared to the comparable motor vehicle fuel 
     lifecycle emissions during calendar year 2005; and
       (2) shall not make an award to a project that does not 
     achieve at least a 80 percent reduction in such lifecycle 
     greenhouse gas emissions.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $500,000,000 for 
     the period of fiscal years 2008 through 2015.

     SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN 
                   DETERMINATIONS ON FUELS AND FUEL ADDITIVES.

       Section 211(c)(1) of the Clean Air Act (42 U.S.C. 
     7545(c)(1)) is amended as follows:
       (1) By striking ``nonroad vehicle (A) if in the judgment of 
     the Administrator'' and inserting ``nonroad vehicle if, in 
     the judgment of the Administrator, any fuel or fuel additive 
     or'' ; and
       (2) In subparagraph (A), by striking ``air pollution 
     which'' and inserting ``air pollution or water pollution 
     (including any degradation in the quality of groundwater) 
     that''.

     SEC. 209. ANTI-BACKSLIDING.

       Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
     amended by adding at the end the following:
       ``(v) Prevention of Air Quality Deterioration.--
       ``(1) Study.--
       ``(A) In general.--Not later than 18 months after the date 
     of enactment of this subsection, the Administrator shall 
     complete a study to determine whether the renewable fuel 
     volumes required by this section will adversely impact air 
     quality as a result of changes in vehicle and engine 
     emissions of air pollutants regulated under this Act.
       ``(B) Considerations.--The study shall include 
     consideration of--
       ``(i) different blend levels, types of renewable fuels, and 
     available vehicle technologies; and
       ``(ii) appropriate national, regional, and local air 
     quality control measures.
       ``(2) Regulations.--Not later than 3 years after the date 
     of enactment of this subsection, the Administrator shall--
       ``(A) promulgate fuel regulations to implement appropriate 
     measures to mitigate, to the greatest extent achievable, 
     considering the results of the study under paragraph (1), any 
     adverse impacts on air quality, as the result of the 
     renewable volumes required by this section; or
       ``(B) make a determination that no such measures are 
     necessary.''.

     SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND TRANSITION 
                   RULES.

       (a) Transition Rules.--(1) For calendar year 2008, 
     transportation fuel sold or introduced into commerce in the 
     United States (except in noncontiguous States or 
     territories), that is produced from facilities that commence 
     construction after the date of enactment of this Act shall be 
     treated as renewable fuel within the meaning of section 
     211(o) of the Clean Air Act only if it achieves at least a 20 
     percent reduction in lifecycle greenhouse gas emissions 
     compared to baseline lifecycle greenhouse gas emissions. For 
     calendar years 2008 and 2009, any ethanol plant that is fired 
     with natural gas, biomass, or any combination thereof is 
     deemed to be in compliance with such 20 percent reduction 
     requirement and with the 20 percent reduction requirement of 
     section 211(o)(1) of the Clean Air Act. The terms used in 
     this subsection shall have the same meaning as provided in 
     the amendment made by this Act to section 211(o) of the Clean 
     Air Act.
       (2) Until January 1, 2009, the Administrator of the 
     Environmental Protection Agency shall implement section 
     211(o) of the Clean Air Act and the rules promulgated under 
     that section in accordance with the provisions of that 
     section as in effect before the enactment of this Act and in 
     accordance with the rules promulgated before the enactment of 
     this Act, except that for calendar year 2008, the number 
     ``9.0'' shall be substituted for the number ``5.4'' in the 
     table in section 211(o)(2)(B) and in the corresponding rules 
     promulgated to carry out those provisions. The Administrator 
     is authorized to take such other actions as may be necessary 
     to carry out this paragraph notwithstanding any other 
     provision of law.
       (b) Savings Clause.--Section 211(o) of the Clean Air Act 
     (42 U.S.C. 7545(o)) is amended by adding the following new 
     paragraph at the end thereof:
       ``(12) Effect on other provisions.--Nothing in this 
     subsection, or regulations issued pursuant to this 
     subsection, shall affect or be construed to affect the 
     regulatory status of carbon dioxide or any other greenhouse 
     gas, or to expand or limit regulatory authority regarding 
     carbon dioxide or any other greenhouse gas, for purposes of 
     other provisions (including section 165) of this Act. The 
     previous sentence shall not affect implementation and 
     enforcement of this subsection.''.
       (c) Effective Date.--The amendments made by this title to 
     section 211(o) of the Clean Air Act shall take effect January 
     1, 2009, except that the Administrator shall promulgate 
     regulations to carry out such amendments not later than one 
     year after the enactment of this Act.

             Subtitle B--Biofuels Research and Development

     SEC. 221. BIODIESEL.

       (a) Biodiesel Study.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary, in consultation 
     with the Administrator of the Environmental Protection 
     Agency, shall submit to Congress a report on any research and 
     development challenges inherent in increasing the proportion 
     of diesel fuel sold in the United States that is biodiesel.
       (b) Material for the Establishment of Standards.--The 
     Director of the National Institute of Standards and 
     Technology, in consultation with the Secretary, shall make 
     publicly available the physical property data and 
     characterization of biodiesel and other biofuels as 
     appropriate.

     SEC. 222. BIOGAS.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary, in consultation with the Administrator of 
     the Environmental Protection Agency, shall submit to Congress 
     a report on any research and development challenges inherent 
     in increasing the amount of transportation fuels sold in the 
     United States that are fuel with biogas or a blend of biogas 
     and natural gas.

     SEC. 223. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND 
                   DEVELOPMENT IN CERTAIN STATES.

       (a) In General.--The Secretary shall provide grants to 
     eligible entities for research, development, demonstration, 
     and commercial application of biofuel production technologies 
     in States with low rates of ethanol production, including low 
     rates of production of cellulosic biomass ethanol, as 
     determined by the Secretary.
       (b) Eligibility.--To be eligible to receive a grant under 
     this section, an entity shall--
       (1)(A) be an institution of higher education (as defined in 
     section 2 of the Energy Policy Act of 2005 (42 U.S.C. 
     15801)), including tribally controlled colleges or 
     universities, located in a State described in subsection (a); 
     or
       (B) be a consortium including at least 1 such institution 
     of higher education, and industry, State agencies, Indian 
     tribal agencies, National Laboratories, or local government 
     agencies located in the State; and
       (2) have proven experience and capabilities with relevant 
     technologies.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $25,000,000 for each of fiscal years 2008 through 2010.

     SEC. 224. BIOREFINERY ENERGY EFFICIENCY.

       Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232) 
     is amended by adding at the end the following new 
     subsections:
       ``(g) Biorefinery Energy Efficiency.--The Secretary shall 
     establish a program of research, development, demonstration, 
     and

[[Page 33884]]

     commercial application for increasing energy efficiency and 
     reducing energy consumption in the operation of biorefinery 
     facilities.
       ``(h) Retrofit Technologies for the Development of Ethanol 
     From Cellulosic Materials.--The Secretary shall establish a 
     program of research, development, demonstration, and 
     commercial application on technologies and processes to 
     enable biorefineries that exclusively use corn grain or corn 
     starch as a feedstock to produce ethanol to be retrofitted to 
     accept a range of biomass, including lignocellulosic 
     feedstocks.''.

     SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES 
                   TO USE E-85 FUEL.

       (a) In General.--The Secretary, in consultation with the 
     Secretary of Transportation and the Administrator of the 
     Environmental Protection Agency, shall conduct a study of 
     whether optimizing flexible fueled vehicles to operate using 
     E-85 fuel would increase the fuel efficiency of flexible 
     fueled vehicles.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Science and Technology and the Committee on 
     Energy and Commerce of the House of Representatives, and to 
     the Committee on Energy and Natural Resources, the Committee 
     on Environment and Public Works, and the Committee on 
     Commerce, Science, and Transportation of the Senate, a report 
     that describes the results of the study under this section, 
     including any recommendations of the Secretary.

     SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORMANCE 
                   ASSOCIATED WITH THE USE OF BIODIESEL.

       (a) In General.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Administrator of the Environmental Protection Agency, 
     shall initiate a study on the effects of the use of biodiesel 
     on the performance and durability of engines and engine 
     systems.
       (b) Components.--The study under this section shall 
     include--
       (1) an assessment of whether the use of biodiesel lessens 
     the durability and performance of conventional diesel engines 
     and engine systems; and
       (2) an assessment of the effects referred to in subsection 
     (a) with respect to biodiesel blends at varying 
     concentrations, including the following percentage 
     concentrations of biodiesel:
       (A) 5 percent biodiesel.
       (B) 10 percent biodiesel.
       (C) 20 percent biodiesel.
       (D) 30 percent biodiesel.
       (E) 100 percent biodiesel.
       (c) Report.--Not later than 24 months after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Science and Technology and the Committee on 
     Energy and Commerce of the House of Representatives, and to 
     the Committee on Energy and Natural Resources and the 
     Committee on Environment and Public Works of the Senate, a 
     report that describes the results of the study under this 
     section, including any recommendations of the Secretary.

     SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS 
                   VEHICLES.

       (a) In General.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Transportation, shall conduct a study of methods 
     of increasing the fuel efficiency of vehicles using biogas by 
     optimizing natural gas vehicle systems that can operate on 
     biogas, including the advancement of vehicle fuel systems and 
     the combination of hybrid-electric and plug-in hybrid 
     electric drive platforms with natural gas vehicle systems 
     using biogas.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources, the Committee on 
     Environment and Public Works, and the Committee on Commerce, 
     Science, and Transportation of the Senate, and to the 
     Committee on Science and Technology and the Committee on 
     Energy and Commerce of the House of Representatives, a report 
     that describes the results of the study, including any 
     recommendations of the Secretary.

     SEC. 228. ALGAL BIOMASS.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Science and Technology of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate a report on the progress of the 
     research and development that is being conducted on the use 
     of algae as a feedstock for the production of biofuels.
       (b) Contents.--The report shall identify continuing 
     research and development challenges and any regulatory or 
     other barriers found by the Secretary that hinder the use of 
     this resource, as well as recommendations on how to encourage 
     and further its development as a viable transportation fuel.

     SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CENTER.

       (a) In General.--The Secretary, in cooperation with the 
     Secretary of Agriculture, shall establish a biofuels and 
     biorefinery information center to make available to 
     interested parties information on--
       (1) renewable fuel feedstocks, including the varieties of 
     fuel capable of being produced from various feedstocks;
       (2) biorefinery processing techniques related to various 
     renewable fuel feedstocks;
       (3) the distribution, blending, storage, and retail 
     dispensing infrastructure necessary for the transport and use 
     of renewable fuels;
       (4) Federal and State laws and incentives related to 
     renewable fuel production and use;
       (5) renewable fuel research and development advancements;
       (6) renewable fuel development and biorefinery processes 
     and technologies;
       (7) renewable fuel resources, including information on 
     programs and incentives for renewable fuels;
       (8) renewable fuel producers;
       (9) renewable fuel users; and
       (10) potential renewable fuel users.
       (b) Administration.--In administering the biofuels and 
     biorefinery information center, the Secretary shall--
       (1) continually update information provided by the center;
       (2) make information available relating to processes and 
     technologies for renewable fuel production;
       (3) make information available to interested parties on the 
     process for establishing a biorefinery; and
       (4) make information and assistance provided by the center 
     available through a toll-free telephone number and website.
       (c) Coordination and Nonduplication.--To maximum extent 
     practicable, the Secretary shall ensure that the activities 
     under this section are coordinated with, and do not duplicate 
     the efforts of, centers at other government agencies.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.

       (a) Definition of Eligible Entity.--In this section, the 
     term ``eligible entity'' means--
       (1) an 1890 Institution (as defined in section 2 of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7061));
       (2) a part B institution (as defined in section 322 of the 
     Higher Education Act of 1965 (20 U.S.C. 1061)) (commonly 
     referred to as ``Historically Black Colleges and 
     Universities'');
       (3) a tribal college or university (as defined in section 
     316(b) of the Higher Education Act of 1965 (20 U.S.C. 
     1059c(b)); or
       (4) a Hispanic-serving institution (as defined in section 
     502(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1101a(a)).
       (b) Grants.--The Secretary shall make cellulosic ethanol 
     and biofuels research and development grants to 10 eligible 
     entities selected by the Secretary to receive a grant under 
     this section through a peer-reviewed competitive process.
       (c) Collaboration.--An eligible entity that is selected to 
     receive a grant under subsection (b) shall collaborate with 1 
     of the Bioenergy Research Centers of the Office of Science of 
     the Department.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to make grants described 
     in subsection (b) $50,000,000 for fiscal year 2008, to remain 
     available until expended.

     SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION 
                   OF APPROPRIATION.

       Section 931 of the Energy Policy Act of 2005 (42 U.S.C. 
     16231) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(4) $963,000,000 for fiscal year 2010.''; and
       (2) in subsection (c)--
       (A) in paragraph (2)--
       (i) by striking ``$251,000,000'' and inserting 
     ``$377,000,000''; and
       (ii) by striking ``and'' at the end;
       (B) in paragraph (3)--
       (i) by striking ``$274,000,000'' and inserting 
     ``$398,000,000''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(4) $419,000,000 for fiscal year 2010, of which 
     $150,000,000 shall be for section 932(d).''.

     SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.

       (a) In General.--Section 977 of the Energy Policy Act of 
     2005 (42 U.S.C. 16317) is amended--
       (1) in subsection (a)(1), by striking ``and computational 
     biology'' and inserting ``computational biology, and 
     environmental science''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by inserting ``in sustainable 
     production systems that reduce greenhouse gas emissions'' 
     after ``hydrogen'';
       (B) in paragraph (3), by striking ``and'' at the end;
       (C) by redesignating paragraph (4) as paragraph (5); and
       (D) by inserting after paragraph (3) the following:

[[Page 33885]]

       ``(4) develop cellulosic and other feedstocks that are less 
     resource and land intensive and that promote sustainable use 
     of resources, including soil, water, energy, forests, and 
     land, and ensure protection of air, water, and soil quality; 
     and''.
       (b) Tools and Evaluation.--Section 307(d) of the Biomass 
     Research and Development Act of 2000 (7 U.S.C. 8606(d)) is 
     amended--
       (1) in paragraph (3)(E), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(5) the improvement and development of analytical tools 
     to facilitate the analysis of life-cycle energy and 
     greenhouse gas emissions, including emissions related to 
     direct and indirect land use changes, attributable to all 
     potential biofuel feedstocks and production processes; and
       ``(6) the systematic evaluation of the impact of expanded 
     biofuel production on the environment, including forest 
     lands, and on the food supply for humans and animals.''.
       (c) Small-Scale Production and Use of Biofuels.--Section 
     307(e) of the Biomass Research and Development Act of 2000 (7 
     U.S.C. 8606(e)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(4) to facilitate small-scale production, local, and on-
     farm use of biofuels, including the development of small-
     scale gasification technologies for production of biofuel 
     from cellulosic feedstocks.''.

     SEC. 233. BIOENERGY RESEARCH CENTERS.

       Section 977 of the Energy Policy Act of 2005 (42 U.S.C. 
     16317) is amended by adding at the end the following:
       ``(f) Bioenergy Research Centers.--
       ``(1) Establishment of centers.--In carrying out the 
     program under subsection (a), the Secretary shall establish 
     at least 7 bioenergy research centers, which may be of 
     varying size.
       ``(2) Geographic distribution.--The Secretary shall 
     establish at least 1 bioenergy research center in each 
     Petroleum Administration for Defense District or Subdistrict 
     of a Petroleum Administration for Defense District.
       ``(3) Goals.--The goals of the centers established under 
     this subsection shall be to accelerate basic transformational 
     research and development of biofuels, including biological 
     processes.
       ``(4) Selection and duration.--
       ``(A) In general.--A center under this subsection shall be 
     selected on a competitive basis for a period of 5 years.
       ``(B) Reapplication.--After the end of the period described 
     in subparagraph (A), a grantee may reapply for selection on a 
     competitive basis.
       ``(5) Inclusion.--A center that is in existence on the date 
     of enactment of this subsection--
       ``(A) shall be counted towards the requirement for 
     establishment of at least 7 bioenergy research centers; and
       ``(B) may continue to receive support for a period of 5 
     years beginning on the date of establishment of the 
     center.''.

     SEC. 234. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT 
                   PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     competitive grant program, in a geographically diverse 
     manner, for projects submitted for consideration by 
     institutions of higher education to conduct research and 
     development of renewable energy technologies. Each grant made 
     shall not exceed $2,000,000.
       (b) Eligibility.--Priority shall be given to institutions 
     of higher education with--
       (1) established programs of research in renewable energy;
       (2) locations that are low income or outside of an 
     urbanized area;
       (3) a joint venture with an Indian tribe; and
       (4) proximity to trees dying of disease or insect 
     infestation as a source of woody biomass.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary $25,000,000 for carrying 
     out this section.
       (d) Definitions.--In this section:
       (1) Indian tribe.--The term ``Indian tribe'' has the 
     meaning as defined in section 126(c) of the Energy Policy Act 
     of 2005.
       (2) Renewable energy.--The term ``renewable energy'' has 
     the meaning as defined in section 902 of the Energy Policy 
     Act of 2005.
       (3) Urbanized area.--The term ``urbanized area'' has the 
     mean as defined by the U.S. Bureau of the Census.

                  Subtitle C--Biofuels Infrastructure

     SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS 
                   RELATED TO RENEWABLE FUEL INFRASTRUCTURE.

       (a) In General.--Title I of the Petroleum Marketing 
     Practices Act (15 U.S.C. 2801 et seq.) is amended by adding 
     at the end the following:

     ``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF 
                   RENEWABLE FUEL PUMPS.

       ``(a) Definition.--In this section:
       ``(1) Renewable fuel.--The term `renewable fuel' means any 
     fuel--
       ``(A) at least 85 percent of the volume of which consists 
     of ethanol; or
       ``(B) any mixture of biodiesel and diesel or renewable 
     diesel (as defined in regulations adopted pursuant to section 
     211(o) of the Clean Air Act (40 CFR, Part 80)), determined 
     without regard to any use of kerosene and containing at least 
     20 percent biodiesel or renewable diesel.
       ``(2) Franchise-related document.--The term `franchise-
     related document' means--
       ``(A) a franchise under this Act; and
       ``(B) any other contract or directive of a franchisor 
     relating to terms or conditions of the sale of fuel by a 
     franchisee.
       ``(b) Prohibitions.--
       ``(1) In general.--No franchise-related document entered 
     into or renewed on or after the date of enactment of this 
     section shall contain any provision allowing a franchisor to 
     restrict the franchisee or any affiliate of the franchisee 
     from--
       ``(A) installing on the marketing premises of the 
     franchisee a renewable fuel pump or tank, except that the 
     franchisee's franchisor may restrict the installation of a 
     tank on leased marketing premises of such franchisor;
       ``(B) converting an existing tank or pump on the marketing 
     premises of the franchisee for renewable fuel use, so long as 
     such tank or pump and the piping connecting them are either 
     warranted by the manufacturer or certified by a recognized 
     standards setting organization to be suitable for use with 
     such renewable fuel;
       ``(C) advertising (including through the use of signage) 
     the sale of any renewable fuel;
       ``(D) selling renewable fuel in any specified area on the 
     marketing premises of the franchisee (including any area in 
     which a name or logo of a franchisor or any other entity 
     appears);
       ``(E) purchasing renewable fuel from sources other than the 
     franchisor if the franchisor does not offer its own renewable 
     fuel for sale by the franchisee;
       ``(F) listing renewable fuel availability or prices, 
     including on service station signs, fuel dispensers, or light 
     poles; or
       ``(G) allowing for payment of renewable fuel with a credit 
     card,

     so long as such activities described in subparagraphs (A) 
     through (G) do not constitute mislabeling, misbranding, 
     willful adulteration, or other trademark violations by the 
     franchisee.
       ``(2) Effect of provision.--Nothing in this section shall 
     be construed to preclude a franchisor from requiring the 
     franchisee to obtain reasonable indemnification and insurance 
     policies.
       ``(c) Exception to 3-Grade Requirement.--No franchise-
     related document that requires that 3 grades of gasoline be 
     sold by the applicable franchisee shall prevent the 
     franchisee from selling an renewable fuel in lieu of 1, and 
     only 1, grade of gasoline.''.
       (b) Enforcement.--Section 105 of the Petroleum Marketing 
     Practices Act (15 U.S.C. 2805) is amended by striking ``102 
     or 103'' each place it appears and inserting ``102, 103, or 
     107''.
       (c) Conforming Amendments.--
       (1) In general.--Section 101(13) of the Petroleum Marketing 
     Practices Act (15 U.S.C. 2801(13)) is amended by aligning the 
     margin of subparagraph (C) with subparagraph (B).
       (2) Table of contents.--The table of contents of the 
     Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is 
     amended--
       (A) by inserting after the item relating to section 106 the 
     following:

``Sec. 107. Prohibition on restriction of installation of renewable 
              fuel pumps.''; and

       (B) by striking the item relating to section 202 and 
     inserting the following:

``Sec. 202. Automotive fuel rating testing and disclosure 
              requirements.''.

     SEC. 242. RENEWABLE FUEL DISPENSER REQUIREMENTS.

       (a) Market Penetration Reports.--The Secretary, in 
     consultation with the Secretary of Transportation, shall 
     determine and report to Congress annually on the market 
     penetration for flexible-fuel vehicles in use within 
     geographic regions to be established by the Secretary.
       (b) Dispenser Feasibility Study.--Not later than 24 months 
     after the date of enactment of this Act, the Secretary, in 
     consultation with the Department of Transportation, shall 
     report to the Congress on the feasibility of requiring motor 
     fuel retailers to install E-85 compatible dispensers and 
     related systems at retail fuel facilities in regions where 
     flexible-fuel vehicle market penetration has reached 15 
     percent of motor vehicles. In conducting such study, the 
     Secretary shall consider and report on the following factors:
       (1) The commercial availability of E-85 fuel and the number 
     of competing E-85 wholesale suppliers in a given region.
       (2) The level of financial assistance provided on an annual 
     basis by the Federal Government, State governments, and 
     nonprofit entities for the installation of E-85 compatible 
     infrastructure.
       (3) The number of retailers whose retail locations are 
     unable to support more than 2 underground storage tank 
     dispensers.

[[Page 33886]]

       (4) The expense incurred by retailers in the installation 
     and sale of E-85 compatible dispensers and related systems 
     and any potential effects on the price of motor vehicle fuel.

     SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.

       (a) In General.--The Secretary, in coordination with the 
     Secretary of Transportation, shall conduct a study of the 
     feasibility of the construction of pipelines dedicated to the 
     transportation of ethanol.
       (b) Factors for Consideration.--In conducting the study 
     under subsection (a), the Secretary shall take into 
     consideration--
       (1) the quantity of ethanol production that would make 
     dedicated pipelines economically viable;
       (2) existing or potential barriers to the construction of 
     pipelines dedicated to the transportation of ethanol, 
     including technical, siting, financing, and regulatory 
     barriers;
       (3) market risk (including throughput risk) and means of 
     mitigating the risk;
       (4) regulatory, financing, and siting options that would 
     mitigate the risk and help ensure the construction of 1 or 
     more pipelines dedicated to the transportation of ethanol;
       (5) financial incentives that may be necessary for the 
     construction of pipelines dedicated to the transportation of 
     ethanol, including the return on equity that sponsors of the 
     initial dedicated ethanol pipelines will require to invest in 
     the pipelines;
       (6) technical factors that may compromise the safe 
     transportation of ethanol in pipelines, including 
     identification of remedial and preventive measures to ensure 
     pipeline integrity; and
       (7) such other factors as the Secretary considers to be 
     appropriate.
       (c) Report.--Not later than 15 months after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing the results of the study conducted under 
     this section.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $1,000,000 for each of fiscal years 2008 and 2009, to remain 
     available until expended.

     SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS.

       (a) Definition of Renewable Fuel Blend.--For purposes of 
     this section, the term ``renewable fuel blend'' means 
     gasoline blend that contain not less than 11 percent, and not 
     more than 85 percent, renewable fuel or diesel fuel that 
     contains at least 10 percent renewable fuel.
       (b) Infrastructure Development Grants.--
       (1) Establishment.--The Secretary shall establish a program 
     for making grants for providing assistance to retail and 
     wholesale motor fuel dealers or other entities for the 
     installation, replacement, or conversion of motor fuel 
     storage and dispensing infrastructure to be used exclusively 
     to store and dispense renewable fuel blends.
       (2) Selection criteria.--Not later than 12 months after the 
     date of enactment of this Act, the Secretary shall establish 
     criteria for evaluating applications for grants under this 
     subsection that will maximize the availability and use of 
     renewable fuel blends, and that will ensure that renewable 
     fuel blends are available across the country. Such criteria 
     shall provide for--
       (A) consideration of the public demand for each renewable 
     fuel blend in a particular geographic area based on State 
     registration records showing the number of flexible-fuel 
     vehicles;
       (B) consideration of the opportunity to create or expand 
     corridors of renewable fuel blend stations along interstate 
     or State highways;
       (C) consideration of the experience of each applicant with 
     previous, similar projects;
       (D) consideration of population, number of flexible-fuel 
     vehicles, number of retail fuel outlets, and saturation of 
     flexible-fuel vehicles; and
       (E) priority consideration to applications that--
       (i) are most likely to maximize displacement of petroleum 
     consumption, measured as a total quantity and a percentage;
       (ii) are best able to incorporate existing infrastructure 
     while maximizing, to the extent practicable, the use of 
     renewable fuel blends; and
       (iii) demonstrate the greatest commitment on the part of 
     the applicant to ensure funding for the proposed project and 
     the greatest likelihood that the project will be maintained 
     or expanded after Federal assistance under this subsection is 
     completed.
       (3) Limitations.--Assistance provided under this subsection 
     shall not exceed--
       (A) 33 percent of the estimated cost of the installation, 
     replacement, or conversion of motor fuel storage and 
     dispensing infrastructure; or
       (B) $180,000 for a combination of equipment at any one 
     retail outlet location.
       (4) Operation of renewable fuel blend stations.--The 
     Secretary shall establish rules that set forth requirements 
     for grant recipients under this section that include 
     providing to the public the renewable fuel blends, 
     establishing a marketing plan that informs consumers of the 
     price and availability of the renewable fuel blends, clearly 
     labeling the dispensers and related equipment, and providing 
     periodic reports on the status of the renewable fuel blend 
     sales, the type and amount of the renewable fuel blends 
     dispensed at each location, and the average price of such 
     fuel.
       (5) Notification requirements.--Not later than the date on 
     which each renewable fuel blend station begins to offer 
     renewable fuel blends to the public, the grant recipient that 
     used grant funds to construct or upgrade such station shall 
     notify the Secretary of such opening. The Secretary shall add 
     each new renewable fuel blend station to the renewable fuel 
     blend station locator on its Website when it receives 
     notification under this subsection.
       (6) Double counting.--No person that receives a credit 
     under section 30C of the Internal Revenue Code of 1986 may 
     receive assistance under this section.
       (7) Reservation of funds.--The Secretary shall reserve 
     funds appropriated for the renewable fuel blends 
     infrastructure development grant program for technical and 
     marketing assistance described in subsection (c).
       (c) Retail Technical and Marketing Assistance.--The 
     Secretary shall enter into contracts with entities with 
     demonstrated experience in assisting retail fueling stations 
     in installing refueling systems and marketing renewable fuel 
     blends nationally, for the provision of technical and 
     marketing assistance to recipients of grants under this 
     section. Such assistance shall include--
       (1) technical advice for compliance with applicable Federal 
     and State environmental requirements;
       (2) help in identifying supply sources and securing long-
     term contracts; and
       (3) provision of public outreach, education, and labeling 
     materials.
       (d) Refueling Infrastructure Corridors.--
       (1) In general.--The Secretary shall establish a 
     competitive grant pilot program (referred to in this 
     subsection as the ``pilot program''), to be administered 
     through the Vehicle Technology Deployment Program of the 
     Department, to provide not more than 10 geographically-
     dispersed project grants to State governments, Indian tribal 
     governments, local governments, metropolitan transportation 
     authorities, or partnerships of those entities to carry out 1 
     or more projects for the purposes described in paragraph (2).
       (2) Grant purposes.--A grant under this subsection shall be 
     used for the establishment of refueling infrastructure 
     corridors, as designated by the Secretary, for renewable fuel 
     blends, including--
       (A) installation of infrastructure and equipment necessary 
     to ensure adequate distribution of renewable fuel blends 
     within the corridor;
       (B) installation of infrastructure and equipment necessary 
     to directly support vehicles powered by renewable fuel 
     blends; and
       (C) operation and maintenance of infrastructure and 
     equipment installed as part of a project funded by the grant.
       (3) Applications.--
       (A) Requirements.--
       (i) In general.--Subject to clause (ii), not later than 90 
     days after the date of enactment of this Act, the Secretary 
     shall issue requirements for use in applying for grants under 
     the pilot program.
       (ii) Minimum requirements.--At a minimum, the Secretary 
     shall require that an application for a grant under this 
     subsection--

       (I) be submitted by--

       (aa) the head of a State, tribal, or local government or a 
     metropolitan transportation authority, or any combination of 
     those entities; and
       (bb) a registered participant in the Vehicle Technology 
     Deployment Program of the Department; and

       (II) include--

       (aa) a description of the project proposed in the 
     application, including the ways in which the project meets 
     the requirements of this subsection;
       (bb) an estimate of the degree of use of the project, 
     including the estimated size of fleet of vehicles operated 
     with renewable fuels blend available within the geographic 
     region of the corridor, measured as a total quantity and a 
     percentage;
       (cc) an estimate of the potential petroleum displaced as a 
     result of the project (measured as a total quantity and a 
     percentage), and a plan to collect and disseminate petroleum 
     displacement and other relevant data relating to the project 
     to be funded under the grant, over the expected life of the 
     project;
       (dd) a description of the means by which the project will 
     be sustainable without Federal assistance after the 
     completion of the term of the grant;
       (ee) a complete description of the costs of the project, 
     including acquisition, construction, operation, and 
     maintenance costs over the expected life of the project; and
       (ff) a description of which costs of the project will be 
     supported by Federal assistance under this subsection.
       (B) Partners.--An applicant under subparagraph (A) may 
     carry out a project under the pilot program in partnership 
     with public and private entities.
       (4) Selection criteria.--In evaluating applications under 
     the pilot program, the Secretary shall--

[[Page 33887]]

       (A) consider the experience of each applicant with 
     previous, similar projects; and
       (B) give priority consideration to applications that--
       (i) are most likely to maximize displacement of petroleum 
     consumption, measured as a total quantity and a percentage;
       (ii) are best able to incorporate existing infrastructure 
     while maximizing, to the extent practicable, the use of 
     advanced biofuels;
       (iii) demonstrate the greatest commitment on the part of 
     the applicant to ensure funding for the proposed project and 
     the greatest likelihood that the project will be maintained 
     or expanded after Federal assistance under this subsection is 
     completed;
       (iv) represent a partnership of public and private 
     entities; and
       (v) exceed the minimum requirements of paragraph 
     (3)(A)(ii).
       (5) Pilot project requirements.--
       (A) Maximum amount.--The Secretary shall provide not more 
     than $20,000,000 in Federal assistance under the pilot 
     program to any applicant.
       (B) Cost sharing.--The non-Federal share of the cost of any 
     activity relating to renewable fuel blend infrastructure 
     development carried out using funds from a grant under this 
     subsection shall be not less than 20 percent.
       (C) Maximum period of grants.--The Secretary shall not 
     provide funds to any applicant under the pilot program for 
     more than 2 years.
       (D) Deployment and distribution.--The Secretary shall seek, 
     to the maximum extent practicable, to ensure a broad 
     geographic distribution of project sites funded by grants 
     under this subsection.
       (E) Transfer of information and knowledge.--The Secretary 
     shall establish mechanisms to ensure that the information and 
     knowledge gained by participants in the pilot program are 
     transferred among the pilot program participants and to other 
     interested parties, including other applicants that submitted 
     applications.
       (6) Schedule.--
       (A) Initial grants.--
       (i) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall publish in the 
     Federal Register, Commerce Business Daily, and such other 
     publications as the Secretary considers to be appropriate, a 
     notice and request for applications to carry out projects 
     under the pilot program.
       (ii) Deadline.--An application described in clause (i) 
     shall be submitted to the Secretary by not later than 180 
     days after the date of publication of the notice under that 
     clause.
       (iii) Initial selection.--Not later than 90 days after the 
     date by which applications for grants are due under clause 
     (ii), the Secretary shall select by competitive, peer-
     reviewed proposal up to 5 applications for projects to be 
     awarded a grant under the pilot program.
       (B) Additional grants.--
       (i) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall publish in the 
     Federal Register, Commerce Business Daily, and such other 
     publications as the Secretary considers to be appropriate, a 
     notice and request for additional applications to carry out 
     projects under the pilot program that incorporate the 
     information and knowledge obtained through the implementation 
     of the first round of projects authorized under the pilot 
     program.
       (ii) Deadline.--An application described in clause (i) 
     shall be submitted to the Secretary by not later than 180 
     days after the date of publication of the notice under that 
     clause.
       (iii) Initial selection.--Not later than 90 days after the 
     date by which applications for grants are due under clause 
     (ii), the Secretary shall select by competitive, peer-
     reviewed proposal such additional applications for projects 
     to be awarded a grant under the pilot program as the 
     Secretary determines to be appropriate.
       (7) Reports to congress.--
       (A) Initial report.--Not later than 60 days after the date 
     on which grants are awarded under this subsection, the 
     Secretary shall submit to Congress a report containing--
       (i) an identification of the grant recipients and a 
     description of the projects to be funded under the pilot 
     program;
       (ii) an identification of other applicants that submitted 
     applications for the pilot program but to which funding was 
     not provided; and
       (iii) a description of the mechanisms used by the Secretary 
     to ensure that the information and knowledge gained by 
     participants in the pilot program are transferred among the 
     pilot program participants and to other interested parties, 
     including other applicants that submitted applications.
       (B) Evaluation.--Not later than 2 years after the date of 
     enactment of this Act, and annually thereafter until the 
     termination of the pilot program, the Secretary shall submit 
     to Congress a report containing an evaluation of the 
     effectiveness of the pilot program, including an assessment 
     of the petroleum displacement and benefits to the environment 
     derived from the projects included in the pilot program.
       (e) Restriction.--No grant shall be provided under 
     subsection (b) or (c) to a large, vertically integrated oil 
     company.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     section $200,000,000 for each of the fiscal years 2008 
     through 2014.

     SEC. 245. STUDY OF THE ADEQUACY OF TRANSPORTATION OF 
                   DOMESTICALLY-PRODUCED RENEWABLE FUEL BY 
                   RAILROADS AND OTHER MODES OF TRANSPORTATION.

       (a) Study.--
       (1) In general.--The Secretary, in coordination with the 
     Secretary of Transportation, shall jointly conduct a study of 
     the adequacy of transportation of domestically-produced 
     renewable fuels by railroad and other modes of transportation 
     as designated by the Secretaries.
       (2) Components.--In conducting the study under paragraph 
     (1), the Secretaries shall--
       (A) consider the adequacy of existing railroad and other 
     transportation and distribution infrastructure, equipment, 
     service and capacity to move the necessary quantities of 
     domestically-produced renewable fuel within the timeframes;
       (B)(i) consider the projected costs of moving the 
     domestically-produced renewable fuel by railroad and other 
     modes transportation; and
       (ii) consider the impact of the projected costs on the 
     marketability of the domestically-produced renewable fuel;
       (C) identify current and potential impediments to the 
     reliable transportation and distribution of adequate supplies 
     of domestically-produced renewable fuel at reasonable prices, 
     including practices currently utilized by domestic producers, 
     shippers, and receivers of renewable fuels;
       (D) consider whether adequate competition exists within and 
     between modes of transportation for the transportation and 
     distribution of domestically-produced renewable fuel and, 
     whether inadequate competition leads to an unfair price for 
     the transportation and distribution of domestically-produced 
     renewable fuel or unacceptable service for transportation of 
     domestically-produced renewable fuel;
       (E) consider whether Federal agencies have adequate legal 
     authority to address instances of inadequate competition when 
     inadequate competition is found to prevent domestic producers 
     for renewable fuels from obtaining a fair and reasonable 
     transportation price or acceptable service for the 
     transportation and distribution of domestically-produced 
     renewable fuels;
       (F) consider whether Federal agencies have adequate legal 
     authority to address railroad and transportation service 
     problems that may be resulting in inadequate supplies of 
     domestically-produced renewable fuel in any area of the 
     United States;
       (G) consider what transportation infrastructure capital 
     expenditures may be necessary to ensure the reliable 
     transportation of adequate supplies of domestically-produced 
     renewable fuel at reasonable prices within the United States 
     and which public and private entities should be responsible 
     for making such expenditures; and
       (H) provide recommendations on ways to facilitate the 
     reliable transportation of adequate supplies of domestically-
     produced renewable fuel at reasonable prices.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretaries shall jointly submit 
     to the Committee on Commerce, Science and Transportation, the 
     Committee on Energy and Natural Resources, and the Committee 
     on Environment and Public Works of the Senate and the 
     Committee on Transportation and Infrastructure and the 
     Committee on Energy and Commerce of the House of 
     Representatives a report that describes the results of the 
     study conducted under subsection (a).

     SEC. 246. FEDERAL FLEET FUELING CENTERS.

       (a) In General.--Not later than January 1, 2010, the head 
     of each Federal agency shall install at least 1 renewable 
     fuel pump at each Federal fleet fueling center in the United 
     States under the jurisdiction of the head of the Federal 
     agency.
       (b) Report.--Not later than October 31 of the first 
     calendar year beginning after the date of the enactment of 
     this Act, and each October 31 thereafter, the President shall 
     submit to Congress a report that describes the progress 
     toward complying with subsection (a), including identifying--
       (1) the number of Federal fleet fueling centers that 
     contain at least 1 renewable fuel pump; and
       (2) the number of Federal fleet fueling centers that do not 
     contain any renewable fuel pumps.
       (c) Department of Defense Facility.--This section shall not 
     apply to a Department of Defense fueling center with a fuel 
     turnover rate of less than 100,000 gallons of fuel per year.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL.

       Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
     amended by redesignating subsection (s) as subsection (t), 
     redesignating subsection (r) (relating to conversion 
     assistance for cellulosic biomass, waste-derived ethanol, 
     approved renewable fuels) as subsection (s) and by adding the 
     following new subsection at the end thereof:
       ``(u) Standard Specifications for Biodiesel.--(1) Unless 
     the American Society for

[[Page 33888]]

     Testing and Materials has adopted a standard for diesel fuel 
     containing 20 percent biodiesel (commonly known as `B20') 
     within 1 year after the date of enactment of this subsection, 
     the Administrator shall initiate a rulemaking to establish a 
     uniform per gallon fuel standard for such fuel and designate 
     an identification number so that vehicle manufacturers are 
     able to design engines to use fuel meeting such standard.
       ``(2) Unless the American Society for Testing and Materials 
     has adopted a standard for diesel fuel containing 5 percent 
     biodiesel (commonly known as `B5') within 1 year after the 
     date of enactment of this subsection, the Administrator shall 
     initiate a rulemaking to establish a uniform per gallon fuel 
     standard for such fuel and designate an identification so 
     that vehicle manufacturers are able to design engines to use 
     fuel meeting such standard.
       ``(3) Whenever the Administrator is required to initiate a 
     rulemaking under paragraph (1) or (2), the Administrator 
     shall promulgate a final rule within 18 months after the date 
     of the enactment of this subsection.
       ``(4) Not later than 180 days after the enactment of this 
     subsection, the Administrator shall establish an annual 
     inspection and enforcement program to ensure that diesel fuel 
     containing biodiesel sold or distributed in interstate 
     commerce meets the standards established under regulations 
     under this section, including testing and certification for 
     compliance with applicable standards of the American Society 
     for Testing and Materials. There are authorized to be 
     appropriated to carry out the inspection and enforcement 
     program under this paragraph $3,000,000 for each of fiscal 
     years 2008 through 2010.
       ``(5) For purposes of this subsection, the term `biodiesel' 
     has the meaning provided by section 312(f) of Energy Policy 
     Act of 1992 (42 U.S.C. 13220(f)).''.

     SEC. 248. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS 
                   INFRASTRUCTURE.

       (a) In General.--The Secretary, in coordination with the 
     Secretary of Transportation and in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     carry out a program of research, development, and 
     demonstration relating to existing transportation fuel 
     distribution infrastructure and new alternative distribution 
     infrastructure.
       (b) Focus.--The program described in subsection (a) shall 
     focus on the physical and chemical properties of biofuels and 
     efforts to prevent or mitigate against adverse impacts of 
     those properties in the areas of--
       (1) corrosion of metal, plastic, rubber, cork, fiberglass, 
     glues, or any other material used in pipes and storage tanks;
       (2) dissolving of storage tank sediments;
       (3) clogging of filters;
       (4) contamination from water or other adulterants or 
     pollutants;
       (5) poor flow properties related to low temperatures;
       (6) oxidative and thermal instability in long-term storage 
     and uses;
       (7) microbial contamination;
       (8) problems associated with electrical conductivity; and
       (9) such other areas as the Secretary considers 
     appropriate.

                  Subtitle D--Environmental Safeguards

     SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES.

       Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f)) 
     is amended to read as follows:
       ``(4) The Administrator, upon application of any 
     manufacturer of any fuel or fuel additive, may waive the 
     prohibitions established under paragraph (1) or (3) of this 
     subsection or the limitation specified in paragraph (2) of 
     this subsection, if he determines that the applicant has 
     established that such fuel or fuel additive or a specified 
     concentration thereof, and the emission products of such fuel 
     or fuel additive or specified concentration thereof, will not 
     cause or contribute to a failure of any emission control 
     device or system (over the useful life of the motor vehicle, 
     motor vehicle engine, nonroad engine or nonroad vehicle in 
     which such device or system is used) to achieve compliance by 
     the vehicle or engine with the emission standards with 
     respect to which it has been certified pursuant to sections 
     206 and 213(a). The Administrator shall take final action to 
     grant or deny an application submitted under this paragraph, 
     after public notice and comment, within 270 days of the 
     receipt of such an application.''.

TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND 
                                LIGHTING

                Subtitle A--Appliance Energy Efficiency

     SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.

       (a) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) is amended--
       (1) in paragraph (36)--
       (A) by striking ``(36) The'' and inserting the following:
       ``(36) External power supply.--
       ``(A) In general.--The''; and
       (B) by adding at the end the following:
       ``(B) Active mode.--The term `active mode' means the mode 
     of operation when an external power supply is connected to 
     the main electricity supply and the output is connected to a 
     load.
       ``(C) Class a external power supply.--
       ``(i) In general.--The term `class A external power supply' 
     means a device that--

       ``(I) is designed to convert line voltage AC input into 
     lower voltage AC or DC output;
       ``(II) is able to convert to only 1 AC or DC output voltage 
     at a time;
       ``(III) is sold with, or intended to be used with, a 
     separate end-use product that constitutes the primary load;
       ``(IV) is contained in a separate physical enclosure from 
     the end-use product;
       ``(V) is connected to the end-use product via a removable 
     or hard-wired male/female electrical connection, cable, cord, 
     or other wiring; and
       ``(VI) has nameplate output power that is less than or 
     equal to 250 watts.

       ``(ii) Exclusions.--The term `class A external power 
     supply' does not include any device that--

       ``(I) requires Federal Food and Drug Administration listing 
     and approval as a medical device in accordance with section 
     513 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
     360c); or
       ``(II) powers the charger of a detachable battery pack or 
     charges the battery of a product that is fully or primarily 
     motor operated.

       ``(D) No-load mode.--The term `no-load mode' means the mode 
     of operation when an external power supply is connected to 
     the main electricity supply and the output is not connected 
     to a load.''; and
       (2) by adding at the end the following:
       ``(52) Detachable battery.--The term `detachable battery' 
     means a battery that is--
       ``(A) contained in a separate enclosure from the product; 
     and
       ``(B) intended to be removed or disconnected from the 
     product for recharging.''.
       (b) Test Procedures.--Section 323(b) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6293(b)) is amended by adding 
     at the end the following:
       ``(17) Class a external power supplies.--Test procedures 
     for class A external power supplies shall be based on the 
     `Test Method for Calculating the Energy Efficiency of Single-
     Voltage External AC-DC and AC-AC Power Supplies' published by 
     the Environmental Protection Agency on August 11, 2004, 
     except that the test voltage specified in section 4(d) of 
     that test method shall be only 115 volts, 60 Hz.''.
       (c) Efficiency Standards for Class A External Power 
     Supplies.--Section 325(u) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295(u)) is amended by adding at 
     the end the following:
       ``(6) Efficiency standards for class a external power 
     supplies.--
       ``(A) In general.--Subject to subparagraphs (B) through 
     (D), a class A external power supply manufactured on or after 
     the later of July 1, 2008, or the date of enactment of this 
     paragraph shall meet the following standards:


----------------------------------------------------------------------------------------------------------------
                                                  ``Active Mode
-----------------------------------------------------------------------------------------------------------------
                                                                    Required Efficiency (decimal equivalent of a
                        ``Nameplate Output                                          percentage)
----------------------------------------------------------------------------------------------------------------
Less than 1 watt                                                   0.5 times the Nameplate Output
----------------------------------------------------------------------------------------------------------------
From 1 watt to not more than 51 watts                              The sum of 0.09 times the Natural Logarithm
                                                                    of the Nameplate Output and 0.5
----------------------------------------------------------------------------------------------------------------
Greater than 51 watts                                              0.85
----------------------------------------------------------------------------------------------------------------
``No-Load Mode
----------------------------------------------------------------------------------------------------------------
``Nameplate Output                                                 Maximum Consumption
----------------------------------------------------------------------------------------------------------------
Not more than 250 watts                                            0.5 watts
----------------------------------------------------------------------------------------------------------------


[[Page 33889]]

       ``(B) Noncovered supplies.--A class A external power supply 
     shall not be subject to subparagraph (A) if the class A 
     external power supply is--
       ``(i) manufactured during the period beginning on July 1, 
     2008, and ending on June 30, 2015; and
       ``(ii) made available by the manufacturer as a service part 
     or a spare part for an end-use product--

       ``(I) that constitutes the primary load; and
       ``(II) was manufactured before July 1, 2008.

       ``(C) Marking.--Any class A external power supply 
     manufactured on or after the later of July 1, 2008 or the 
     date of enactment of this paragraph shall be clearly and 
     permanently marked in accordance with the External Power 
     Supply International Efficiency Marking Protocol, as 
     referenced in the `Energy Star Program Requirements for 
     Single Voltage External AC-DC and AC-AC Power Supplies, 
     version 1.1' published by the Environmental Protection 
     Agency.
       ``(D) Amendment of standards.--
       ``(i) Final rule by july 1, 2011.--

       ``(I) In general.--Not later than July 1, 2011, the 
     Secretary shall publish a final rule to determine whether the 
     standards established under subparagraph (A) should be 
     amended.
       ``(II) Administration.--The final rule shall--

       ``(aa) contain any amended standards; and
       ``(bb) apply to products manufactured on or after July 1, 
     2013.
       ``(ii) Final rule by july 1, 2015.--

       ``(I) In general.--Not later than July 1, 2015 the 
     Secretary shall publish a final rule to determine whether the 
     standards then in effect should be amended.
       ``(II) Administration.--The final rule shall--

       ``(aa) contain any amended standards; and
       ``(bb) apply to products manufactured on or after July 1, 
     2017.
       ``(7) End-use products.--An energy conservation standard 
     for external power supplies shall not constitute an energy 
     conservation standard for the separate end-use product to 
     which the external power supplies is connected.''.

     SEC. 302. UPDATING APPLIANCE TEST PROCEDURES.

       (a) Consumer Appliances.--Section 323(b)(1) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6293(b)(1)) is amended 
     by striking ``(1)'' and all that follows through the end of 
     the paragraph and inserting the following:
       ``(1) Test procedures.--
       ``(A) Amendment.--At least once every 7 years, the 
     Secretary shall review test procedures for all covered 
     products and--
       ``(i) amend test procedures with respect to any covered 
     product, if the Secretary determines that amended test 
     procedures would more accurately or fully comply with the 
     requirements of paragraph (3); or
       ``(ii) publish notice in the Federal Register of any 
     determination not to amend a test procedure.''.
       (b) Industrial Equipment.--Section 343(a) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6313(a)) is amended by 
     striking ``(a)'' and all that follows through the end of 
     paragraph (1) and inserting the following:
       ``(a) Prescription by Secretary; Requirements.--
       ``(1) Test procedures.--
       ``(A) Amendment.--At least once every 7 years, the 
     Secretary shall conduct an evaluation of each class of 
     covered equipment and--
       ``(i) if the Secretary determines that amended test 
     procedures would more accurately or fully comply with the 
     requirements of paragraphs (2) and (3), shall prescribe test 
     procedures for the class in accordance with this section; or
       ``(ii) shall publish notice in the Federal Register of any 
     determination not to amend a test procedure.''.

     SEC. 303. RESIDENTIAL BOILERS.

       Section 325(f) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6295(f)) is amended--
       (1) in the subsection heading, by inserting ``and Boilers'' 
     after ``Furnaces'';
       (2) by redesignating paragraph (3) as paragraph (4); and
       (3) by inserting after paragraph (2) the following:
       ``(3) Boilers.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     boilers manufactured on or after September 1, 2012, shall 
     meet the following requirements:


----------------------------------------------------------------------------------------------------------------
                                          Minimum Annual Fuel Utilization
              Boiler Type                            Efficiency                      Design Requirements
----------------------------------------------------------------------------------------------------------------
Gas Hot Water.........................  82%                                  No Constant Burning Pilot,
                                                                              Automatic Means for Adjusting
                                                                              Water Temperature
----------------------------------------------------------------------------------------------------------------
 Gas Steam............................  80%                                  No Constant Burning Pilot
----------------------------------------------------------------------------------------------------------------
Oil Hot Water.........................  84%                                  Automatic Means for Adjusting
                                                                              Temperature
----------------------------------------------------------------------------------------------------------------
 Oil Steam............................  82%                                  None
----------------------------------------------------------------------------------------------------------------
Electric Hot Water....................  None                                 Automatic Means for Adjusting
                                                                              Temperature
----------------------------------------------------------------------------------------------------------------
Electric Steam........................  None                                 None
----------------------------------------------------------------------------------------------------------------

       ``(B) Automatic means for adjusting water temperature.--
       ``(i) In general.--The manufacturer shall equip each gas, 
     oil, and electric hot water boiler (other than a boiler 
     equipped with a tankless domestic water heating coil) with 
     automatic means for adjusting the temperature of the water 
     supplied by the boiler to ensure that an incremental change 
     in inferred heat load produces a corresponding incremental 
     change in the temperature of water supplied.
       ``(ii) Single input rate.--For a boiler that fires at 1 
     input rate, the requirements of this subparagraph may be 
     satisfied by providing an automatic means that allows the 
     burner or heating element to fire only when the means has 
     determined that the inferred heat load cannot be met by the 
     residual heat of the water in the system.
       ``(iii) No inferred heat load.--When there is no inferred 
     heat load with respect to a hot water boiler, the automatic 
     means described in clause (i) and (ii) shall limit the 
     temperature of the water in the boiler to not more than 140 
     degrees Fahrenheit.
       ``(iv) Operation.--A boiler described in clause (i) or (ii) 
     shall be operable only when the automatic means described in 
     clauses (i), (ii), and (iii) is installed.
       ``(C) Exception.--A boiler that is manufactured to operate 
     without any need for electricity or any electric connection, 
     electric gauges, electric pumps, electric wires, or electric 
     devices shall not be required to meet the requirements of 
     this paragraph.''.

     SEC. 304. FURNACE FAN STANDARD PROCESS.

       Paragraph (4)(D) of section 325(f) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295(f)) (as redesignated by 
     section 303(4)) is amended by striking ``the Secretary may'' 
     and inserting ``not later than December 31, 2013, the 
     Secretary shall''.

     SEC. 305. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND 
                   CLARIFYING STATE AUTHORITY.

       (a) Consumer Appliances.--Section 325 of the Energy Policy 
     and Conservation Act (42 U.S.C. 6295) is amended by striking 
     subsection (m) and inserting the following:
       ``(m) Amendment of Standards.--
       ``(1) In general.--Not later than 6 years after issuance of 
     any final rule establishing or amending a standard, as 
     required for a product under this part, the Secretary shall 
     publish--
       ``(A) a notice of the determination of the Secretary that 
     standards for the product do not need to be amended, based on 
     the criteria established under subsection (n)(2); or
       ``(B) a notice of proposed rulemaking including new 
     proposed standards based on the criteria established under 
     subsection (o) and the procedures established under 
     subsection (p).
       ``(2) Notice.--If the Secretary publishes a notice under 
     paragraph (1), the Secretary shall--
       ``(A) publish a notice stating that the analysis of the 
     Department is publicly available; and
       ``(B) provide an opportunity for written comment.
       ``(3) Amendment of standard; new determination.--
       ``(A) Amendment of standard.--Not later than 2 years after 
     a notice is issued under paragraph (1)(B), the Secretary 
     shall publish a final rule amending the standard for the 
     product.
       ``(B) New determination.--Not later than 3 years after a 
     determination under paragraph (1)(A), the Secretary shall 
     make a new determination and publication under subparagraph 
     (A) or (B) of paragraph (1).
       ``(4) Application to products.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an amendment prescribed under this subsection shall apply 
     to--

[[Page 33890]]

       ``(i) with respect to refrigerators, refrigerator-freezers, 
     freezers, room air conditioners, dishwashers, clothes 
     washers, clothes dryers, fluorescent lamp ballasts, and 
     kitchen ranges and ovens, such a product that is manufactured 
     after the date that is 3 years after publication of the final 
     rule establishing an applicable standard; and
       ``(ii) with respect to central air conditioners, heat 
     pumps, water heaters, pool heaters, direct heating equipment, 
     and furnaces, such a product that is manufactured after the 
     date that is 5 years after publication of the final rule 
     establishing an applicable standard.
       ``(B) Other new standards.--A manufacturer shall not be 
     required to apply new standards to a product with respect to 
     which other new standards have been required during the prior 
     6-year period.
       ``(5) Reports.--The Secretary shall promptly submit to the 
     Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate--
       ``(A) a progress report every 180 days on compliance with 
     this section, including a specific plan to remedy any 
     failures to comply with deadlines for action established 
     under this section; and
       ``(B) all required reports to the Court or to any party to 
     the Consent Decree in State of New York v Bodman, 
     Consolidated Civil Actions No.05 Civ. 7807 and No.05 Civ. 
     7808.''.
       (b) Industrial Equipment.--Section 342(a)(6) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6313(a)(6)) is 
     amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by striking ``(6)(A)(i)'' and all that follows through 
     the end of subparagraph (B) and inserting the following:
       ``(6) Amended energy efficiency standards.--
       ``(A) In general.--
       ``(i) Analysis of potential energy savings.--If ASHRAE/IES 
     Standard 90.1 is amended with respect to any small commercial 
     package air conditioning and heating equipment, large 
     commercial package air conditioning and heating equipment, 
     very large commercial package air conditioning and heating 
     equipment, packaged terminal air conditioners, packaged 
     terminal heat pumps, warm-air furnaces, packaged boilers, 
     storage water heaters, instantaneous water heaters, or 
     unfired hot water storage tanks, not later than 180 days 
     after the amendment of the standard, the Secretary shall 
     publish in the Federal Register for public comment an 
     analysis of the energy savings potential of amended energy 
     efficiency standards.
       ``(ii) Amended uniform national standard for products.--

       ``(I) In general.--Except as provided in subclause (II), 
     not later than 18 months after the date of publication of the 
     amendment to the ASHRAE/IES Standard 90.1 for a product 
     described in clause (i), the Secretary shall establish an 
     amended uniform national standard for the product at the 
     minimum level specified in the amended ASHRAE/IES Standard 
     90.1.
       ``(II) More stringent standard.--Subclause (I) shall not 
     apply if the Secretary determines, by rule published in the 
     Federal Register, and supported by clear and convincing 
     evidence, that adoption of a uniform national standard more 
     stringent than the amended ASHRAE/IES Standard 90.1 for the 
     product would result in significant additional conservation 
     of energy and is technologically feasible and economically 
     justified.

       ``(B) Rule.--If the Secretary makes a determination 
     described in clause (ii)(II) for a product described in 
     clause (i), not later than 30 months after the date of 
     publication of the amendment to the ASHRAE/IES Standard 90.1 
     for the product, the Secretary shall issue the rule 
     establishing the amended standard.
       ``(C) Amendment of standard.--
       ``(i) In general.--Not later than 6 years after issuance of 
     any final rule establishing or amending a standard, as 
     required for a product under this part, the Secretary shall 
     publish--

       ``(I) a notice of the determination of the Secretary that 
     standards for the product do not need to be amended, based on 
     the criteria established under subparagraph (A); or
       ``(II) a notice of proposed rulemaking including new 
     proposed standards based on the criteria and procedures 
     established under subparagraph (B).

       ``(ii) Notice.--If the Secretary publishes a notice under 
     clause (i), the Secretary shall--

       ``(I) publish a notice stating that the analysis of the 
     Department is publicly available; and
       ``(II) provide an opportunity for written comment.

       ``(iii) Amendment of standard; new determination.--

       ``(I) Amendment of standard.--Not later than 2 years after 
     a notice is issued under clause (i)(II), the Secretary shall 
     publish a final rule amending the standard for the product.
       ``(II) New determination.--Not later than 3 years after a 
     determination under clause (i)(I), the Secretary shall make a 
     new determination and publication under subclause (I) or (II) 
     of clause (i).

       ``(iv) Application to products.--An amendment prescribed 
     under this subsection shall apply to products manufactured 
     after a date that is the later of--

       ``(I) the date that is 3 years after publication of the 
     final rule establishing a new standard; or
       ``(II) the date that is 6 years after the effective date of 
     the current standard for a covered product.

       ``(v) Reports.--The Secretary shall promptly submit to the 
     Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate a progress report every 180 days on 
     compliance with this subparagraph, including a specific plan 
     to remedy any failures to comply with deadlines for action 
     established under this subparagraph.''.

     SEC. 306. REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR 
                   CONDITIONERS, AND HEAT PUMPS.

       (a) In General.--Section 325(o) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295(o)) is amended by adding at 
     the end the following:
       ``(6) Regional standards for furnaces, central air 
     conditioners, and heat pumps.--
       ``(A) In general.--In any rulemaking to establish a new or 
     amended standard, the Secretary may consider the 
     establishment of separate standards by geographic region for 
     furnaces (except boilers), central air conditioners, and heat 
     pumps.
       ``(B) National and regional standards.--
       ``(i) National standard.--If the Secretary establishes a 
     regional standard for a product, the Secretary shall 
     establish a base national standard for the product.
       ``(ii) Regional standards.--If the Secretary establishes a 
     regional standard for a product, the Secretary may establish 
     more restrictive standards for the product by geographic 
     region as follows:

       ``(I) For furnaces, the Secretary may establish 1 
     additional standard that is applicable in a geographic region 
     defined by the Secretary.
       ``(II) For any cooling product, the Secretary may establish 
     1 or 2 additional standards that are applicable in 1 or 2 
     geographic regions as may be defined by the Secretary.

       ``(C) Boundaries of geographic regions.--
       ``(i) In general.--Subject to clause (ii), the boundaries 
     of additional geographic regions established by the Secretary 
     under this paragraph shall include only contiguous States.
       ``(ii) Alaska and hawaii.--The States of Alaska and Hawaii 
     may be included under this paragraph in a geographic region 
     that the States are not contiguous to.
       ``(iii) Individual states.--Individual States shall be 
     placed only into a single region under this paragraph.
       ``(D) Prerequisites.--In establishing additional regional 
     standards under this paragraph, the Secretary shall--
       ``(i) establish additional regional standards only if the 
     Secretary determines that--

       ``(I) the establishment of additional regional standards 
     will produce significant energy savings in comparison to 
     establishing only a single national standard; and
       ``(II) the additional regional standards are economically 
     justified under this paragraph; and

       ``(ii) consider the impact of the additional regional 
     standards on consumers, manufacturers, and other market 
     participants, including product distributors, dealers, 
     contractors, and installers.
       ``(E) Application; effective date.--
       ``(i) Base national standard.--Any base national standard 
     established for a product under this paragraph shall--

       ``(I) be the minimum standard for the product; and
       ``(II) apply to all products manufactured or imported into 
     the United States on and after the effective date for the 
     standard.

       ``(ii) Regional standards.--Any additional and more 
     restrictive regional standard established for a product under 
     this paragraph shall apply to any such product installed on 
     or after the effective date of the standard in States in 
     which the Secretary has designated the standard to apply.
       ``(F) Continuation of regional standards.--
       ``(i) In general.--In any subsequent rulemaking for any 
     product for which a regional standard has been previously 
     established, the Secretary shall determine whether to 
     continue the establishment of separate regional standards for 
     the product.
       ``(ii) Regional standard no longer appropriate.--Except as 
     provided in clause (iii), if the Secretary determines that 
     regional standards are no longer appropriate for a product, 
     beginning on the effective date of the amended standard for 
     the product--

       ``(I) there shall be 1 base national standard for the 
     product with Federal enforcement; and
       ``(II) State authority for enforcing a regional standard 
     for the product shall terminate.

       ``(iii) Regional standard appropriate but standard or 
     region changed.--

       ``(I) State no longer contained in region.--Subject to 
     subclause (III), if a State is no longer contained in a 
     region in which a regional standard that is more stringent 
     than the base national standard applies, the authority of the 
     State to enforce the regional standard shall terminate.
       ``(II) Standard or region revised so that existing regional 
     standard equals base

[[Page 33891]]

     national standard.--If the Secretary revises a base national 
     standard for a product or the geographic definition of a 
     region so that an existing regional standard for a State is 
     equal to the revised base national standard--

       ``(aa) the authority of the State to enforce the regional 
     standard shall terminate on the effective date of the revised 
     base national standard; and
       ``(bb) the State shall be subject to the revised base 
     national standard.

       ``(III) Standard or region revised so that existing 
     regional standard equals base national standard.--If the 
     Secretary revises a base national standard for a product or 
     the geographic definition of a region so that the standard 
     for a State is lower than the previously approved regional 
     standard, the State may continue to enforce the previously 
     approved standard level.

       ``(iv) Waiver of federal preemption.--Nothing in this 
     paragraph diminishes the authority of a State to enforce a 
     State regulation for which a waiver of Federal preemption has 
     been granted under section 327(d).
       ``(G) Enforcement.--
       ``(i) Base national standard.--

       ``(I) In general.--The Secretary shall enforce any base 
     national standard.
       ``(II) Trade association certification programs.--In 
     enforcing the base national standard, the Secretary shall 
     use, to the maximum extent practicable, national standard 
     nationally recognized certification programs of trade 
     associations.

       ``(ii) Regional standards.--

       ``(I) Enforcement plan.--Not later than 90 days after the 
     date of the issuance of a final rule that establishes a 
     regional standard, the Secretary shall initiate a rulemaking 
     to develop and implement an effective enforcement plan for 
     regional standards for the products that are covered by the 
     final rule.
       ``(II) Responsible entities.--Any rules regarding 
     enforcement of a regional standard shall clearly specify 
     which entities are legally responsible for compliance with 
     the standards and for making any required information or 
     labeling disclosures.
       ``(III) Final rule.--Not later than 15 months after the 
     date of the issuance of a final rule that establishes a 
     regional standard for a product, the Secretary shall 
     promulgate a final rule covering enforcement of regional 
     standards for the product.
       ``(IV) Incorporation by states and localities.--A State or 
     locality may incorporate any Federal regional standard into 
     State or local building codes or State appliance standards.
       ``(V) State enforcement.--A State agency may seek 
     enforcement of a Federal regional standard in a Federal court 
     of competent jurisdiction.

       ``(H) Information disclosure.--
       ``(i) In general.--Not later than 90 days after the date of 
     the publication of a final rule that establishes a regional 
     standard for a product, the Federal Trade Commission shall 
     undertake a rulemaking to determine the appropriate 1 or more 
     methods for disclosing information so that consumers, 
     distributors, contractors, and installers can easily 
     determine whether a specific piece of equipment that is 
     installed in a specific building is in conformance with the 
     regional standard that applies to the building.
       ``(ii) Methods.--A method of disclosing information under 
     clause (i) may include--

       ``(I) modifications to the Energy Guide label; or
       ``(II) other methods that make it easy for consumers and 
     installers to use and understand at the point of 
     installation.

       ``(iii) Completion of rulemaking.--The rulemaking shall be 
     completed not later 15 months after the date of the 
     publication of a final rule that establishes a regional 
     standard for a product.''.
       (b) Prohibited Acts.--Section 332(a) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6302(a)) is amended--
       (1) in paragraph (4), by striking ``or'' after the 
     semicolon at the end;
       (2) in paragraph (5), by striking ``part.'' and inserting 
     ``part, except to the extent that the new covered product is 
     covered by a regional standard that is more stringent than 
     the base national standard; or''; and
       (3) by adding at the end the following:
       ``(6) for any manufacturer or private labeler to knowingly 
     sell a product to a distributor, contractor, or dealer with 
     knowledge that the entity routinely violates any regional 
     standard applicable to the product.''.
       (c) Consideration of Prices and Operating Patterns.--
     Section 342(a)(6)(B) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6313(a)(6)(B)) is amended by adding at the end 
     the following:
       ``(iii) Consideration of prices and operating patterns.--If 
     the Secretary is considering revised standards for air-cooled 
     3-phase central air conditioners and central air conditioning 
     heat pumps with less 65,000 Btu per hour (cooling capacity), 
     the Secretary shall use commercial energy prices and 
     operating patterns in all analyses conducted by the 
     Secretary.''.

     SEC. 307. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.

       Section 325(p) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6925(p)) is amended--
       (1) by striking paragraph (1); and
       (2) by redesignating paragraphs (2) through (4) as 
     paragraphs (1) through (3), respectively.

     SEC. 308. EXPEDITED RULEMAKINGS.

       (a) Procedure for Prescribing New or Amended Standards.--
     Section 325(p) of the Energy Policy and Conservation Act (42 
     U.S.C. 6295(p)) (as amended by section 307) is amended by 
     adding at the end the following:
       ``(4) Direct final rules.--
       ``(A) In general.--On receipt of a statement that is 
     submitted jointly by interested persons that are fairly 
     representative of relevant points of view (including 
     representatives of manufacturers of covered products, States, 
     and efficiency advocates), as determined by the Secretary, 
     and contains recommendations with respect to an energy or 
     water conservation standard--
       ``(i) if the Secretary determines that the recommended 
     standard contained in the statement is in accordance with 
     subsection (o) or section 342(a)(6)(B), as applicable, the 
     Secretary may issue a final rule that establishes an energy 
     or water conservation standard and is published 
     simultaneously with a notice of proposed rulemaking that 
     proposes a new or amended energy or water conservation 
     standard that is identical to the standard established in the 
     final rule to establish the recommended standard (referred to 
     in this paragraph as a `direct final rule'); or
       ``(ii) if the Secretary determines that a direct final rule 
     cannot be issued based on the statement, the Secretary shall 
     publish a notice of the determination, together with an 
     explanation of the reasons for the determination.
       ``(B) Public comment.--The Secretary shall solicit public 
     comment for a period of at least 110 days with respect to 
     each direct final rule issued by the Secretary under 
     subparagraph (A)(i).
       ``(C) Withdrawal of direct final rules.--
       ``(i) In general.--Not later than 120 days after the date 
     on which a direct final rule issued under subparagraph (A)(i) 
     is published in the Federal Register, the Secretary shall 
     withdraw the direct final rule if--

       ``(I) the Secretary receives 1 or more adverse public 
     comments relating to the direct final rule under subparagraph 
     (B)(i) or any alternative joint recommendation; and
       ``(II) based on the rulemaking record relating to the 
     direct final rule, the Secretary determines that such adverse 
     public comments or alternative joint recommendation may 
     provide a reasonable basis for withdrawing the direct final 
     rule under subsection (o), section 342(a)(6)(B), or any other 
     applicable law.

       ``(ii) Action on withdrawal.--On withdrawal of a direct 
     final rule under clause (i), the Secretary shall--

       ``(I) proceed with the notice of proposed rulemaking 
     published simultaneously with the direct final rule as 
     described in subparagraph (A)(i); and
       ``(II) publish in the Federal Register the reasons why the 
     direct final rule was withdrawn.

       ``(iii) Treatment of withdrawn direct final rules.--A 
     direct final rule that is withdrawn under clause (i) shall 
     not be considered to be a final rule for purposes of 
     subsection (o).
       ``(D) Effect of paragraph.--Nothing in this paragraph 
     authorizes the Secretary to issue a direct final rule based 
     solely on receipt of more than 1 statement containing 
     recommended standards relating to the direct final rule.''.
       (b) Conforming Amendment.--Section 345(b)(1) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended 
     in the first sentence by inserting ``section 325(p)(5),'' 
     after ``The provisions of''.

     SEC. 309. BATTERY CHARGERS.

       Section 325(u)(1)(E) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6295(u)(1)(E)) is amended--
       (1) by striking ``(E)(i) Not'' and inserting the following:
       ``(E) External power supplies and battery chargers.--
       ``(i) Energy conservation standards.--

       ``(I) External power supplies.--Not'';

       (2) by striking ``3 years'' and inserting ``2 years'';
       (3) by striking ``battery chargers and'' each place it 
     appears; and
       (4) by adding at the end the following :

       ``(II) Battery chargers.--Not later than July 1, 2011, the 
     Secretary shall issue a final rule that prescribes energy 
     conservation standards for battery chargers or classes of 
     battery chargers or determine that no energy conservation 
     standard is technically feasible and economically 
     justified.''.

     SEC. 310. STANDBY MODE.

       Section 325 of the Energy Policy and Conservation Act (42 
     U.S.C. 6295) is amended--
       (1) in subsection (u)--
       (A) by striking paragraphs (2), (3), and (4); and
       (B) by redesignating paragraph (5) and (6) as paragraphs 
     (2) and (3), respectively;
       (2) by redesignating subsection (gg) as subsection (hh);
       (3) by inserting after subsection (ff) the following:
       ``(gg) Standby Mode Energy Use.--
       ``(1) Definitions.--
       ``(A) In general.--Unless the Secretary determines 
     otherwise pursuant to subparagraph (B), in this subsection:

[[Page 33892]]

       ``(i) Active mode.--The term `active mode' means the 
     condition in which an energy-using product--

       ``(I) is connected to a main power source;
       ``(II) has been activated; and
       ``(III) provides 1 or more main functions.

       ``(ii) Off mode.--The term `off mode' means the condition 
     in which an energy-using product--

       ``(I) is connected to a main power source; and
       ``(II) is not providing any standby or active mode 
     function.

       ``(iii) Standby mode.--The term `standby mode' means the 
     condition in which an energy-using product--

       ``(I) is connected to a main power source; and
       ``(II) offers 1 or more of the following user-oriented or 
     protective functions:

       ``(aa) To facilitate the activation or deactivation of 
     other functions (including active mode) by remote switch 
     (including remote control), internal sensor, or timer.
       ``(bb) Continuous functions, including information or 
     status displays (including clocks) or sensor-based functions.
       ``(B) Amended definitions.--The Secretary may, by rule, 
     amend the definitions under subparagraph (A), taking into 
     consideration the most current versions of Standards 62301 
     and 62087 of the International Electrotechnical Commission.
       ``(2) Test procedures.--
       ``(A) In general.--Test procedures for all covered products 
     shall be amended pursuant to section 323 to include standby 
     mode and off mode energy consumption, taking into 
     consideration the most current versions of Standards 62301 
     and 62087 of the International Electrotechnical Commission, 
     with such energy consumption integrated into the overall 
     energy efficiency, energy consumption, or other energy 
     descriptor for each covered product, unless the Secretary 
     determines that--
       ``(i) the current test procedures for a covered product 
     already fully account for and incorporate the standby mode 
     and off mode energy consumption of the covered product; or
       ``(ii) such an integrated test procedure is technically 
     infeasible for a particular covered product, in which case 
     the Secretary shall prescribe a separate standby mode and off 
     mode energy use test procedure for the covered product, if 
     technically feasible.
       ``(B) Deadlines.--The test procedure amendments required by 
     subparagraph (A) shall be prescribed in a final rule no later 
     than the following dates:
       ``(i) December 31, 2008, for battery chargers and external 
     power supplies.
       ``(ii) March 31, 2009, for clothes dryers, room air 
     conditioners, and fluorescent lamp ballasts.
       ``(iii) June 30, 2009, for residential clothes washers.
       ``(iv) September 30, 2009, for residential furnaces and 
     boilers.
       ``(v) March 31, 2010, for residential water heaters, direct 
     heating equipment, and pool heaters.
       ``(vi) March 31, 2011, for residential dishwashers, ranges 
     and ovens, microwave ovens, and dehumidifiers.
       ``(C) Prior product standards.--The test procedure 
     amendments adopted pursuant to subparagraph (B) shall not be 
     used to determine compliance with product standards 
     established prior to the adoption of the amended test 
     procedures.
       ``(3) Incorporation into standard.--
       ``(A) In general.--Subject to subparagraph (B), based on 
     the test procedures required under paragraph (2), any final 
     rule establishing or revising a standard for a covered 
     product, adopted after July 1, 2010, shall incorporate 
     standby mode and off mode energy use into a single amended or 
     new standard, pursuant to subsection (o), if feasible.
       ``(B) Separate standards.--If not feasible, the Secretary 
     shall prescribe within the final rule a separate standard for 
     standby mode and off mode energy consumption, if justified 
     under subsection (o).''; and
       (4) in paragraph (2) of subsection (hh) (as redesignated by 
     paragraph (2)) , by striking ``(ff)'' each place it appears 
     and inserting ``(gg)''.

     SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES.

       (a) Appliances.--
       (1) Dehumidifiers.--Section 325(cc) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6295(cc)) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) Dehumidifiers manufactured on or after october 1, 
     2012.--Dehumidifiers manufactured on or after October 1, 
     2012, shall have an Energy Factor that meets or exceeds the 
     following values:


 
 
 
``Product Capacity (pints/day):          Minimum Energy Factor (liters/
                                          KWh)
  Up to 35.00..........................  1.35
  35.01-45.00..........................  1.50
  45.01-54.00..........................  1.60
  54.01-75.00..........................  1.70
  Greater than 75.00...................  2.5.''.


       (2) Residential clothes washers and residential 
     dishwashers.--Section 325(g) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295(g)) is amended by adding at 
     the end the following:
       ``(9) Residential clothes washers manufactured on or after 
     january 1, 2011.--
       ``(A) In general.--A top-loading or front-loading standard-
     size residential clothes washer manufactured on or after 
     January 1, 2011, shall have--
       ``(i) a Modified Energy Factor of at least 1.26; and
       ``(ii) a water factor of not more than 9.5.
       ``(B) Amendment of standards.--
       ``(i) In general.--Not later than December 31, 2011, the 
     Secretary shall publish a final rule determining whether to 
     amend the standards in effect for clothes washers 
     manufactured on or after January 1, 2015.
       ``(ii) Amended standards.--The final rule shall contain any 
     amended standards.
       ``(10) Residential dishwashers manufactured on or after 
     january 1, 2010.--
       ``(A) In general.--A dishwasher manufactured on or after 
     January 1, 2010, shall--
       ``(i) for a standard size dishwasher not exceed 355 kwh/
     year and 6.5 gallon per cycle; and
       ``(ii) for a compact size dishwasher not exceed 260 kwh/
     year and 4.5 gallons per cycle.
       ``(B) Amendment of standards.--
       ``(i) In general.--Not later than January 1, 2015, the 
     Secretary shall publish a final rule determining whether to 
     amend the standards for dishwashers manufactured on or after 
     January 1, 2018.
       ``(ii) Amended standards.--The final rule shall contain any 
     amended standards.''.
       (3) Refrigerators and freezers.--Section 325(b) of the 
     Energy Policy and Conservation Act (42 U.S.C. 6295(b)) is 
     amended by adding at the end the following:
       ``(4) Refrigerators and freezers manufactured on or after 
     january 1, 2014.--
       ``(A) In general.--Not later than December 31, 2010, the 
     Secretary shall publish a final rule determining whether to 
     amend the standards in effect for refrigerators, 
     refrigerator-freezers, and freezers manufactured on or after 
     January 1, 2014.
       ``(B) Amended standards.--The final rule shall contain any 
     amended standards.''.
       (b) Energy Star.--Section 324A(d)(2) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6294a(d)(2)) is amended by 
     striking ``January 1, 2010'' and inserting ``July 1, 2009''.

     SEC. 312. WALK-IN COOLERS AND WALK-IN FREEZERS.

       (a) Definitions.--Section 340 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6311) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraphs (G) through (K) as 
     subparagraphs (H) through (L), respectively; and
       (B) by inserting after subparagraph (F) the following:
       ``(G) Walk-in coolers and walk-in freezers.'';
       (2) by redesignating paragraphs (20) and (21) as paragraphs 
     (21) and (22), respectively; and
       (3) by inserting after paragraph (19) the following:
       ``(20) Walk-in cooler; walk-in freezer.--
       ``(A) In general.--The terms `walk-in cooler' and `walk-in 
     freezer' mean an enclosed storage space refrigerated to 
     temperatures, respectively, above, and at or below 32 degrees 
     Fahrenheit that can be walked into, and has a total chilled 
     storage area of less than 3,000 square feet.
       ``(B) Exclusion.--The terms `walk-in cooler' and `walk-in 
     freezer' do not include products designed and marketed 
     exclusively for medical, scientific, or research purposes.''.
       (b) Standards.--Section 342 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6313) is amended by adding at the 
     end the following:
       ``(f) Walk-in Coolers and Walk-in Freezers.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     each walk-in cooler or walk-in freezer manufactured on or 
     after January 1, 2009, shall--
       ``(A) have automatic door closers that firmly close all 
     walk-in doors that have been closed to within 1 inch of full 
     closure, except that this subparagraph shall not apply to 
     doors wider than 3 feet 9 inches or taller than 7 feet;

[[Page 33893]]

       ``(B) have strip doors, spring hinged doors, or other 
     method of minimizing infiltration when doors are open;
       ``(C) contain wall, ceiling, and door insulation of at 
     least R-25 for coolers and R-32 for freezers, except that 
     this subparagraph shall not apply to glazed portions of doors 
     nor to structural members;
       ``(D) contain floor insulation of at least R-28 for 
     freezers;
       ``(E) for evaporator fan motors of under 1 horsepower and 
     less than 460 volts, use--
       ``(i) electronically commutated motors (brushless direct 
     current motors); or
       ``(ii) 3-phase motors;
       ``(F) for condenser fan motors of under 1 horsepower, use--
       ``(i) electronically commutated motors;
       ``(ii) permanent split capacitor-type motors; or
       ``(iii) 3-phase motors; and
       ``(G) for all interior lights, use light sources with an 
     efficacy of 40 lumens per watt or more, including ballast 
     losses (if any), except that light sources with an efficacy 
     of 40 lumens per watt or less, including ballast losses (if 
     any), may be used in conjunction with a timer or device that 
     turns off the lights within 15 minutes of when the walk-in 
     cooler or walk-in freezer is not occupied by people.
       ``(2) Electronically commutated motors.--
       ``(A) In general.--The requirements of paragraph (1)(E)(i) 
     for electronically commutated motors shall take effect 
     January 1, 2009, unless, prior to that date, the Secretary 
     determines that such motors are only available from 1 
     manufacturer.
       ``(B) Other types of motors.--In carrying out paragraph 
     (1)(E)(i) and subparagraph (A), the Secretary may allow other 
     types of motors if the Secretary determines that, on average, 
     those other motors use no more energy in evaporator fan 
     applications than electronically commutated motors.
       ``(C) Maximum energy consumption level.--The Secretary 
     shall establish the maximum energy consumption level under 
     subparagraph (B) not later than January 1, 2010.
       ``(3) Additional specifications.--Each walk-in cooler or 
     walk-in freezer with transparent reach-in doors manufactured 
     on or after January 1, 2009, shall also meet the following 
     specifications:
       ``(A) Transparent reach-in doors for walk-in freezers and 
     windows in walk-in freezer doors shall be of triple-pane 
     glass with either heat-reflective treated glass or gas fill.
       ``(B) Transparent reach-in doors for walk-in coolers and 
     windows in walk-in cooler doors shall be--
       ``(i) double-pane glass with heat-reflective treated glass 
     and gas fill; or
       ``(ii) triple-pane glass with either heat-reflective 
     treated glass or gas fill.
       ``(C) If the appliance has an antisweat heater without 
     antisweat heat controls, the appliance shall have a total 
     door rail, glass, and frame heater power draw of not more 
     than 7.1 watts per square foot of door opening (for freezers) 
     and 3.0 watts per square foot of door opening (for coolers).
       ``(D) If the appliance has an antisweat heater with 
     antisweat heat controls, and the total door rail, glass, and 
     frame heater power draw is more than 7.1 watts per square 
     foot of door opening (for freezers) and 3.0 watts per square 
     foot of door opening (for coolers), the antisweat heat 
     controls shall reduce the energy use of the antisweat heater 
     in a quantity corresponding to the relative humidity in the 
     air outside the door or to the condensation on the inner 
     glass pane.
       ``(4) Performance-based standards.--
       ``(A) In general.--Not later than January 1, 2012, the 
     Secretary shall publish performance-based standards for walk-
     in coolers and walk-in freezers that achieve the maximum 
     improvement in energy that the Secretary determines is 
     technologically feasible and economically justified.
       ``(B) Application.--
       ``(i) In general.--Except as provided in clause (ii), the 
     standards shall apply to products described in subparagraph 
     (A) that are manufactured beginning on the date that is 3 
     years after the final rule is published.
       ``(ii) Delayed effective date.--If the Secretary 
     determines, by rule, that a 3-year period is inadequate, the 
     Secretary may establish an effective date for products 
     manufactured beginning on the date that is not more than 5 
     years after the date of publication of a final rule for the 
     products.
       ``(5) Amendment of standards.--
       ``(A) In general.--Not later than January 1, 2020, the 
     Secretary shall publish a final rule to determine if the 
     standards established under paragraph (4) should be amended.
       ``(B) Application.--
       ``(i) In general.--Except as provided in clause (ii), the 
     rule shall provide that the standards shall apply to products 
     manufactured beginning on the date that is 3 years after the 
     final rule is published.
       ``(ii) Delayed effective date.--If the Secretary 
     determines, by rule, that a 3-year period is inadequate, the 
     Secretary may establish an effective date for products 
     manufactured beginning on the date that is not more than 5 
     years after the date of publication of a final rule for the 
     products.''.
       (c) Test Procedures.--Section 343(a) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6314(a)) is amended by adding 
     at the end the following:
       ``(9) Walk-in coolers and walk-in freezers.--
       ``(A) In general.--For the purpose of test procedures for 
     walk-in coolers and walk-in freezers:
       ``(i) The R value shall be the 1/K factor multiplied by the 
     thickness of the panel.
       ``(ii) The K factor shall be based on ASTM test procedure 
     C518-2004.
       ``(iii) For calculating the R value for freezers, the K 
     factor of the foam at 20F (average foam temperature) shall 
     be used.
       ``(iv) For calculating the R value for coolers, the K 
     factor of the foam at 55F (average foam temperature) shall 
     be used.
       ``(B) Test procedure.--
       ``(i) In general.--Not later than January 1, 2010, the 
     Secretary shall establish a test procedure to measure the 
     energy-use of walk-in coolers and walk-in freezers.
       ``(ii) Computer modeling.--The test procedure may be based 
     on computer modeling, if the computer model or models have 
     been verified using the results of laboratory tests on a 
     significant sample of walk-in coolers and walk-in 
     freezers.''.
       (d) Labeling.--Section 344(e) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6315(e)) is amended by inserting 
     ``walk-in coolers and walk-in freezers,'' after ``commercial 
     clothes washers,'' each place it appears.
       (e) Administration, Penalties, Enforcement, and 
     Preemption.--Section 345 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6316) is amended--
       (1) by striking ``subparagraphs (B), (C), (D), (E), and 
     (F)'' each place it appears and inserting ``subparagraphs (B) 
     through (G)''; and
       (2) by adding at the end the following:
       ``(h) Walk-in Coolers and Walk-in Freezers.--
       ``(1) Covered types.--
       ``(A) Relationship to other law.--
       ``(i) In general.--Except as otherwise provided in this 
     subsection, section 327 shall apply to walk-in coolers and 
     walk-in freezers for which standards have been established 
     under paragraphs (1), (2), and (3) of section 342(f) to the 
     same extent and in the same manner as the section applies 
     under part A on the date of enactment of this subsection.
       ``(ii) State standards.--Any State standard prescribed 
     before the date of enactment of this subsection shall not be 
     preempted until the standards established under paragraphs 
     (1) and (2) of section 342(f) take effect.
       ``(B) Administration.--In applying section 327 to equipment 
     under subparagraph (A), paragraphs (1), (2), and (3) of 
     subsection (a) shall apply.
       ``(2) Final rule not timely.--
       ``(A) In general.--If the Secretary does not issue a final 
     rule for a specific type of walk-in cooler or walk-in freezer 
     within the time frame established under paragraph (4) or (5) 
     of section 342(f), subsections (b) and (c) of section 327 
     shall no longer apply to the specific type of walk-in cooler 
     or walk-in freezer during the period--
       ``(i) beginning on the day after the scheduled date for a 
     final rule; and
       ``(ii) ending on the date on which the Secretary publishes 
     a final rule covering the specific type of walk-in cooler or 
     walk-in freezer.
       ``(B) State standards.--Any State standard issued before 
     the publication of the final rule shall not be preempted 
     until the standards established in the final rule take 
     effect.
       ``(3) California.--Any standard issued in the State of 
     California before January 1, 2011, under title 20 of the 
     California Code of Regulations, that refers to walk-in 
     coolers and walk-in freezers, for which standards have been 
     established under paragraphs (1), (2), and (3) of section 
     342(f), shall not be preempted until the standards 
     established under section 342(f)(3) take effect.''.

     SEC. 313. ELECTRIC MOTOR EFFICIENCY STANDARDS.

       (a) Definitions.--Section 340(13) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6311(13)) is amended--
       (1) by redesignating subparagraphs (B) through (H) as 
     subparagraphs (C) through (I), respectively; and
       (2) by striking ``(13)(A)'' and all that follows through 
     the end of subparagraph (A) and inserting the following:
       ``(13) Electric motor.--
       ``(A) General purpose electric motor (subtype i).--The term 
     `general purpose electric motor (subtype I)' means any motor 
     that meets the definition of `General Purpose' as established 
     in the final rule issued by the Department of Energy entitled 
     `Energy Efficiency Program for Certain Commercial and 
     Industrial Equipment: Test Procedures, Labeling, and 
     Certification Requirements for Electric Motors' (10 C.F.R. 
     431), as in effect on the date of enactment of the Energy 
     Independence and Security Act of 2007.
       ``(B) General purpose electric motor (subtype ii).--The 
     term `general purpose electric motor (subtype II)' means 
     motors incorporating the design elements of a general purpose 
     electric motor (subtype I) that are configured as 1 of the 
     following:
       ``(i) A U-Frame Motor.
       ``(ii) A Design C Motor.
       ``(iii) A close-coupled pump motor.
       ``(iv) A Footless motor.

[[Page 33894]]

       ``(v) A vertical solid shaft normal thrust motor (as tested 
     in a horizontal configuration).
       ``(vi) An 8-pole motor (900 rpm).
       ``(vii) A poly-phase motor with voltage of not more than 
     600 volts (other than 230 or 460 volts.''.
       (b) Standards.--
       (1) Amendment.--Section 342(b) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6313(b)) is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (B) by inserting after paragraph (1) the following:
       ``(2) Electric motors.--
       ``(A) General purpose electric motors (subtype i).--Except 
     as provided in subparagraph (B), each general purpose 
     electric motor (subtype I) with a power rating of 1 
     horsepower or greater, but not greater than 200 horsepower, 
     manufactured (alone or as a component of another piece of 
     equipment) after the 3-year period beginning on the date of 
     enactment of the Energy Independence and Security Act of 
     2007, shall have a nominal full load efficiency that is not 
     less than as defined in NEMA MG-1 (2006) Table 12-12.
       ``(B) Fire pump motors.--Each fire pump motor manufactured 
     (alone or as a component of another piece of equipment) after 
     the 3-year period beginning on the date of enactment of the 
     Energy Independence and Security Act of 2007 shall have 
     nominal full load efficiency that is not less than as defined 
     in NEMA MG-1 (2006) Table 12-11.
       ``(C) General purpose electric motors (subtype ii).--Each 
     general purpose electric motor (subtype II) with a power 
     rating of 1 horsepower or greater, but not greater than 200 
     horsepower, manufactured (alone or as a component of another 
     piece of equipment) after the 3-year period beginning on the 
     date of enactment of the Energy Independence and Security Act 
     of 2007, shall have a nominal full load efficiency that is 
     not less than as defined in NEMA MG-1 (2006) Table 12-11.
       ``(D) NEMA design b, general purpose electric motors.--Each 
     NEMA Design B, general purpose electric motor with a power 
     rating of more than 200 horsepower, but not greater than 500 
     horsepower, manufactured (alone or as a component of another 
     piece of equipment) after the 3-year period beginning on the 
     date of enactment of the Energy Independence and Security Act 
     of 2007, shall have a nominal full load efficiency that is 
     not less than as defined in NEMA MG-1 (2006) Table 12-11.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     take effect on the date that is 3 years after the date of 
     enactment of this Act.

     SEC. 314. STANDARDS FOR SINGLE PACKAGE VERTICAL AIR 
                   CONDITIONERS AND HEAT PUMPS.

       (a) Definitions.--Section 340 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6311) is amended by adding at the 
     end the following:
       ``(22) Single package vertical air conditioner.--The term 
     `single package vertical air conditioner' means air-cooled 
     commercial package air conditioning and heating equipment 
     that--
       ``(A) is factory-assembled as a single package that--
       ``(i) has major components that are arranged vertically;
       ``(ii) is an encased combination of cooling and optional 
     heating components; and
       ``(iii) is intended for exterior mounting on, adjacent 
     interior to, or through an outside wall;
       ``(B) is powered by a single- or 3-phase current;
       ``(C) may contain 1 or more separate indoor grilles, 
     outdoor louvers, various ventilation options, indoor free air 
     discharges, ductwork, well plenum, or sleeves; and
       ``(D) has heating components that may include electrical 
     resistance, steam, hot water, or gas, but may not include 
     reverse cycle refrigeration as a heating means.
       ``(23) Single package vertical heat pump.--The term `single 
     package vertical heat pump' means a single package vertical 
     air conditioner that--
       ``(A) uses reverse cycle refrigeration as its primary heat 
     source; and
       ``(B) may include secondary supplemental heating by means 
     of electrical resistance, steam, hot water, or gas.''.
       (b) Standards.--Section 342(a) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6313(a)) is amended--
       (1) in the first sentence of each of paragraphs (1) and 
     (2), by inserting ``(including single package vertical air 
     conditioners and single package vertical heat pumps)'' after 
     ``heating equipment'' each place it appears;
       (2) in paragraph (1), by striking ``but before January 1, 
     2010,'';
       (3) in the first sentence of each of paragraphs (7), (8), 
     and (9), by inserting ``(other than single package vertical 
     air conditioners and single package vertical heat pumps)'' 
     after ``heating equipment'' each place it appears;
       (4) in paragraph (7)--
       (A) by striking ``manufactured on or after January 1, 
     2010,'';
       (B) in each of subparagraphs (A), (B), and (C), by striking 
     ``The'' and inserting ``For equipment manufactured on or 
     after January 1, 2010, the''; and
       (C) by adding at the end the following:
       ``(D) For equipment manufactured on or after the later of 
     January 1, 2008, or the date that is 180 days after the date 
     of enactment of the Energy Independence and Security Act of 
     2007--
       ``(i) the minimum seasonal energy efficiency ratio of air-
     cooled 3-phase electric central air conditioners and central 
     air conditioning heat pumps less than 65,000 Btu per hour 
     (cooling capacity), split systems, shall be 13.0;
       ``(ii) the minimum seasonal energy efficiency ratio of air-
     cooled 3-phase electric central air conditioners and central 
     air conditioning heat pumps less than 65,000 Btu per hour 
     (cooling capacity), single package, shall be 13.0;
       ``(iii) the minimum heating seasonal performance factor of 
     air-cooled 3-phase electric central air conditioning heat 
     pumps less than 65,000 Btu per hour (cooling capacity), split 
     systems, shall be 7.7; and
       ``(iv) the minimum heating seasonal performance factor of 
     air-cooled three-phase electric central air conditioning heat 
     pumps less than 65,000 Btu per hour (cooling capacity), 
     single package, shall be 7.7.''; and
       (5) by adding at the end the following:
       ``(10) Single package vertical air conditioners and single 
     package vertical heat pumps.--
       ``(A) In general.--Single package vertical air conditioners 
     and single package vertical heat pumps manufactured on or 
     after January 1, 2010, shall meet the following standards:
       ``(i) The minimum energy efficiency ratio of single package 
     vertical air conditioners less than 65,000 Btu per hour 
     (cooling capacity), single-phase, shall be 9.0.
       ``(ii) The minimum energy efficiency ratio of single 
     package vertical air conditioners less than 65,000 Btu per 
     hour (cooling capacity), three-phase, shall be 9.0.
       ``(iii) The minimum energy efficiency ratio of single 
     package vertical air conditioners at or above 65,000 Btu per 
     hour (cooling capacity) but less than 135,000 Btu per hour 
     (cooling capacity), shall be 8.9.
       ``(iv) The minimum energy efficiency ratio of single 
     package vertical air conditioners at or above 135,000 Btu per 
     hour (cooling capacity) but less than 240,000 Btu per hour 
     (cooling capacity), shall be 8.6.
       ``(v) The minimum energy efficiency ratio of single package 
     vertical heat pumps less than 65,000 Btu per hour (cooling 
     capacity), single-phase, shall be 9.0 and the minimum 
     coefficient of performance in the heating mode shall be 3.0.
       ``(vi) The minimum energy efficiency ratio of single 
     package vertical heat pumps less than 65,000 Btu per hour 
     (cooling capacity), three-phase, shall be 9.0 and the minimum 
     coefficient of performance in the heating mode shall be 3.0.
       ``(vii) The minimum energy efficiency ratio of single 
     package vertical heat pumps at or above 65,000 Btu per hour 
     (cooling capacity) but less than 135,000 Btu per hour 
     (cooling capacity), shall be 8.9 and the minimum coefficient 
     of performance in the heating mode shall be 3.0.
       ``(viii) The minimum energy efficiency ratio of single 
     package vertical heat pumps at or above 135,000 Btu per hour 
     (cooling capacity) but less than 240,000 Btu per hour 
     (cooling capacity), shall be 8.6 and the minimum coefficient 
     of performance in the heating mode shall be 2.9.
       ``(B) Review.--Not later than 3 years after the date of 
     enactment of this paragraph, the Secretary shall review the 
     most recently published ASHRAE/IES Standard 90.1 with respect 
     to single package vertical air conditioners and single 
     package vertical heat pumps in accordance with the procedures 
     established under paragraph (6).''.

     SEC. 315. IMPROVED ENERGY EFFICIENCY FOR APPLIANCES AND 
                   BUILDINGS IN COLD CLIMATES.

       (a) Research.--Section 911(a)(2) of the Energy Policy Act 
     of 2005 (42 U.S.C. 16191(a)(2)) is amended--
       (1) in subparagraph (C), by striking ``and'' at the end;
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(E) technologies to improve the energy efficiency of 
     appliances and mechanical systems for buildings in cold 
     climates, including combined heat and power units and 
     increased use of renewable resources, including fuel.''.
       (b) Rebates.--Section 124 of the Energy Policy Act of 2005 
     (42 U.S.C. 15821) is amended--
       (1) in subsection (b)(1), by inserting ``, or products with 
     improved energy efficiency in cold climates,'' after 
     ``residential Energy Star products''; and
       (2) in subsection (e), by inserting ``or product with 
     improved energy efficiency in a cold climate'' after 
     ``residential Energy Star product'' each place it appears.

     SEC. 316. TECHNICAL CORRECTIONS.

       (a) Definition of F96T12 Lamp.--
       (1) In general.--Section 135(a)(1)(A)(ii) of the Energy 
     Policy Act of 2005 (Public Law 109-58; 119 Stat. 624) is 
     amended by striking ``C78.1-1978(R1984)'' and inserting 
     ``C78.3-1978(R1984)''.
       (2) Effective date.--The amendment made by paragraph (1) 
     takes effect on August 8, 2005.

[[Page 33895]]

       (b) Definition of Fluorescent Lamp.--Section 
     321(30)(B)(viii) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6291(30)(B)(viii)) is amended by striking ``82'' 
     and inserting ``87''.
       (c) Mercury Vapor Lamp Ballasts.--
       (1) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) (as amended by section 
     301(a)(2)) is amended--
       (A) by striking paragraphs (46) through (48) and inserting 
     the following:
       ``(46) High intensity discharge lamp.--
       ``(A) In general.--The term `high intensity discharge lamp' 
     means an electric-discharge lamp in which--
       ``(i) the light-producing arc is stabilized by the arc tube 
     wall temperature; and
       ``(ii) the arc tube wall loading is in excess of 3 Watts/
     cm\2\.
       ``(B) Inclusions.--The term `high intensity discharge lamp' 
     includes mercury vapor, metal halide, and high-pressure 
     sodium lamps described in subparagraph (A).
       ``(47) Mercury vapor lamp.--
       ``(A) In general.--The term `mercury vapor lamp' means a 
     high intensity discharge lamp in which the major portion of 
     the light is produced by radiation from mercury typically 
     operating at a partial vapor pressure in excess of 100,000 Pa 
     (approximately 1 atm).
       ``(B) Inclusions.--The term `mercury vapor lamp' includes 
     clear, phosphor-coated, and self-ballasted screw base lamps 
     described in subparagraph (A).
       ``(48) Mercury vapor lamp ballast.--The term `mercury vapor 
     lamp ballast' means a device that is designed and marketed to 
     start and operate mercury vapor lamps intended for general 
     illumination by providing the necessary voltage and 
     current.''; and
       (B) by adding at the end the following:
       ``(53) Specialty application mercury vapor lamp ballast.--
     The term `specialty application mercury vapor lamp ballast' 
     means a mercury vapor lamp ballast that--
       ``(A) is designed and marketed for operation of mercury 
     vapor lamps used in quality inspection, industrial 
     processing, or scientific use, including fluorescent 
     microscopy and ultraviolet curing; and
       ``(B) in the case of a specialty application mercury vapor 
     lamp ballast, the label of which--
       ``(i) provides that the specialty application mercury vapor 
     lamp ballast is `For specialty applications only, not for 
     general illumination'; and
       ``(ii) specifies the specific applications for which the 
     ballast is designed.''.
       (2) Standard setting authority.--Section 325(ee) of the 
     Energy Policy and Conservation Act (42 U.S.C. 6295(ee)) is 
     amended by inserting ``(other than specialty application 
     mercury vapor lamp ballasts)'' after ``ballasts''.
       (d) Energy Conservation Standards.--Section 325 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6295) is 
     amended--
       (1) in subsection (v)--
       (A) in the subsection heading, by striking ``Ceiling Fans 
     and'';
       (B) by striking paragraph (1); and
       (C) by redesignating paragraphs (2) through (4) as 
     paragraphs (1) through (3), respectively; and
       (2) in subsection (ff)--
       (A) in paragraph (1)(A)--
       (i) by striking clause (iii);
       (ii) by redesignating clause (iv) as clause (iii); and
       (iii) in clause (iii)(II) (as so redesignated), by 
     inserting ``fans sold for'' before ``outdoor''; and
       (B) in paragraph (4)(C)--
       (i) in the matter preceding clause (i), by striking 
     ``subparagraph (B)'' and inserting ``subparagraph (A)''; and
       (ii) by striking clause (ii) and inserting the following:
       ``(ii) shall be packaged with lamps to fill all sockets.'';
       (C) in paragraph (6), by redesignating subparagraphs (C) 
     and (D) as clauses (i) and (ii), respectively, of 
     subparagraph (B); and
       (D) in paragraph (7), by striking ``327'' the second place 
     it appears and inserting ``324''.

                 Subtitle B--Lighting Energy Efficiency

     SEC. 321. EFFICIENT LIGHT BULBS.

       (a) Energy Efficiency Standards for General Service 
     Incandescent Lamps.--
       (1) Definition of general service incandescent lamp.--
     Section 321(30) of the Energy Policy and Conservation Act (42 
     U.S.C. 6291(30)) is amended--
       (A) by striking subparagraph (D) and inserting the 
     following:
       ``(D) General service incandescent lamp.--
       ``(i) In general.--The term `general service incandescent 
     lamp' means a standard incandescent or halogen type lamp 
     that--

       ``(I) is intended for general service applications;
       ``(II) has a medium screw base;
       ``(III) has a lumen range of not less than 310 lumens and 
     not more than 2,600 lumens; and
       ``(IV) is capable of being operated at a voltage range at 
     least partially within 110 and 130 volts.

       ``(ii) Exclusions.--The term `general service incandescent 
     lamp' does not include the following incandescent lamps:

       ``(I) An appliance lamp.
       ``(II) A black light lamp.
       ``(III) A bug lamp.
       ``(IV) A colored lamp.
       ``(V) An infrared lamp.
       ``(VI) A left-hand thread lamp.
       ``(VII) A marine lamp.
       ``(VIII) A marine signal service lamp.
       ``(IX) A mine service lamp.
       ``(X) A plant light lamp.
       ``(XI) A reflector lamp.
       ``(XII) A rough service lamp.
       ``(XIII) A shatter-resistant lamp (including a shatter-
     proof lamp and a shatter-protected lamp).
       ``(XIV) A sign service lamp.
       ``(XV) A silver bowl lamp.
       ``(XVI) A showcase lamp.
       ``(XVII) A 3-way incandescent lamp.
       ``(XVIII) A traffic signal lamp.
       ``(XIX) A vibration service lamp.
       ``(XX) A G shape lamp (as defined in ANSI C78.20-2003 and 
     C79.1-2002with a diameter of 5 inches or more.
       ``(XXI) A T shape lamp (as defined in ANSI C78.20-2003 and 
     C79.1-2002) and that uses not more than 40 watts or has a 
     length of more than 10 inches.
       ``(XXII) A B, BA, CA, F, G16-1/2,G-25,G30, S, or M-14 lamp 
     (as defined in ANSI C79.1-2002 and ANSI C78.20-2003) of 40 
     watts or less.''; and

       (B) by adding at the end the following:
       ``(T) Appliance lamp.--The term `appliance lamp' means any 
     lamp that--
       ``(i) is specifically designed to operate in a household 
     appliance, has a maximum wattage of 40 watts, and is sold at 
     retail, including an oven lamp, refrigerator lamp, and vacuum 
     cleaner lamp; and
       ``(ii) is designated and marketed for the intended 
     application, with--

       ``(I) the designation on the lamp packaging; and
       ``(II) marketing materials that identify the lamp as being 
     for appliance use.

       ``(U) Candelabra base incandescent lamp.--The term 
     `candelabra base incandescent lamp' means a lamp that uses 
     candelabra screw base as described in ANSI C81.61-2006, 
     Specifications for Electric Bases, common designations E11 
     and E12.
       ``(V) Intermediate base incandescent lamp.--The term 
     `intermediate base incandescent lamp' means a lamp that uses 
     an intermediate screw base as described in ANSI C81.61-2006, 
     Specifications for Electric Bases, common designation E17.
       ``(W) Modified spectrum.--The term `modified spectrum' 
     means, with respect to an incandescent lamp, an incandescent 
     lamp that--
       ``(i) is not a colored incandescent lamp; and
       ``(ii) when operated at the rated voltage and wattage of 
     the incandescent lamp--

       ``(I) has a color point with (x,y) chromaticity coordinates 
     on the Commission Internationale de l'Eclairage (C.I.E.) 1931 
     chromaticity diagram that lies below the black-body locus; 
     and
       ``(II) has a color point with (x,y) chromaticity 
     coordinates on the C.I.E. 1931 chromaticity diagram that lies 
     at least 4 MacAdam steps (as referenced in IESNA LM16) 
     distant from the color point of a clear lamp with the same 
     filament and bulb shape, operated at the same rated voltage 
     and wattage.

       ``(X) Rough service lamp.--The term `rough service lamp' 
     means a lamp that--
       ``(i) has a minimum of 5 supports with filament 
     configurations that are C-7A, C-11, C-17, and C-22 as listed 
     in Figure 6-12 of the 9th edition of the IESNA Lighting 
     handbook, or similar configurations where lead wires are not 
     counted as supports; and
       ``(ii) is designated and marketed specifically for `rough 
     service' applications, with--

       ``(I) the designation appearing on the lamp packaging; and
       ``(II) marketing materials that identify the lamp as being 
     for rough service.

       ``(Y) 3-way incandescent lamp.--The term `3-way 
     incandescent lamp' includes an incandescent lamp that--
       ``(i) employs 2 filaments, operated separately and in 
     combination, to provide 3 light levels; and
       ``(ii) is designated on the lamp packaging and marketing 
     materials as being a 3-way incandescent lamp.
       ``(Z) Shatter-resistant lamp, shatter-proof lamp, or 
     shatter-protected lamp.--The terms `shatter-resistant lamp', 
     `shatter-proof lamp', and `shatter-protected lamp' mean a 
     lamp that--
       ``(i) has a coating or equivalent technology that is 
     compliant with NSF/ANSI 51 and is designed to contain the 
     glass if the glass envelope of the lamp is broken; and
       ``(ii) is designated and marketed for the intended 
     application, with--

       ``(I) the designation on the lamp packaging; and
       ``(II) marketing materials that identify the lamp as being 
     shatter-resistant, shatter-proof, or shatter-protected.

       ``(AA) Vibration service lamp.--The term `vibration service 
     lamp' means a lamp that--
       ``(i) has filament configurations that are C-5, C-7A, or C-
     9, as listed in Figure 6-12 of the 9th Edition of the IESNA 
     Lighting Handbook or similar configurations;
       ``(ii) has a maximum wattage of 60 watts;
       ``(iii) is sold at retail in packages of 2 lamps or less; 
     and
       ``(iv) is designated and marketed specifically for 
     vibration service or vibration-resistant applications, with--

[[Page 33896]]

       ``(I) the designation appearing on the lamp packaging; and
       ``(II) marketing materials that identify the lamp as being 
     vibration service only.

       ``(BB) General service lamp.--
       ``(i) In general.--The term `general service lamp' 
     includes--

       ``(I) general service incandescent lamps;
       ``(II) compact fluorescent lamps;
       ``(III) general service light-emitting diode (LED or OLED) 
     lamps; and
       ``(IV) any other lamps that the Secretary determines are 
     used to satisfy lighting applications traditionally served by 
     general service incandescent lamps.

       ``(ii) Exclusions.--The term `general service lamp' does 
     not include--

       ``(I) any lighting application or bulb shape described in 
     any of subclauses (I) through (XXII) of subparagraph (D)(ii); 
     or
       ``(II) any general service fluorescent lamp or incandescent 
     reflector lamp.

       ``(CC) Light-emitting diode; led.--
       ``(i) In general.--The terms `light-emitting diode' and 
     `LED' means a p-n junction solid state device the radiated 
     output of which is a function of the physical construction, 
     material used, and exciting current of the device.
       ``(ii) Output.--The output of a light-emitting diode may be 
     in--

       ``(I) the infrared region;
       ``(II) the visible region; or
       ``(III) the ultraviolet region.

       ``(DD) Organic light-emitting diode; oled.--The terms 
     `organic light-emitting diode' and `OLED' mean a thin-film 
     light-emitting device that typically consists of a series of 
     organic layers between 2 electrical contacts (electrodes).
       ``(EE) Colored incandescent lamp.--The term `colored 
     incandescent lamp' means an incandescent lamp designated and 
     marketed as a colored lamp that has--
       ``(i) a color rendering index of less than 50, as 
     determined according to the test method given in C.I.E. 
     publication 13.3-1995; or
       ``(ii) a correlated color temperature of less than 2,500K, 
     or greater than 4,600K, where correlated temperature is 
     computed according to the Journal of Optical Society of 
     America, Vol. 58, pages 1528-1595 (1986).''.
       (2) Coverage.--Section 322(a)(14) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6292(a)(14)) is amended by 
     inserting ``, general service incandescent lamps,'' after 
     ``fluorescent lamps''.
       (3) Energy conservation standards.--Section 325 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6295) is 
     amended--
       (A) in subsection (i)--
       (i) in the section heading, by inserting ``, General 
     Service Incandescent Lamps, Intermediate Base Incandescent 
     Lamps, Candelabra Base Incandescent Lamps,'' after 
     ``Fluorescent Lamps'';
       (ii) in paragraph (1)--

       (I) in subparagraph (A)--

       (aa) by inserting ``, general service incandescent lamps, 
     intermediate base incandescent lamps, candelabra base 
     incandescent lamps,'' after ``fluorescent lamps'';
       (bb) by inserting ``, new maximum wattage,'' after ``lamp 
     efficacy''; and
       (cc) by inserting after the table entitled ``incandescent 
     reflector lamps'' the following:


                                      ``GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                     Maximum Rate     Minimum Rate    Effective
                       Rated Lumen Ranges                               Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1490-2600                                                                        72     1,000 hrs      1/1/2012
1050-1489                                                                        53     1,000 hrs      1/1/2013
750-1049                                                                         43     1,000 hrs      1/1/2014
310-749                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------



                             ``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                     Maximum Rate     Minimum Rate    Effective
                       Rated Lumen Ranges                               Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1118-1950                                                                        72     1,000 hrs      1/1/2012
788-1117                                                                         53     1,000 hrs      1/1/2013
563-787                                                                          43     1,000 hrs      1/1/2014
232-562                                                                          29     1,000 hrs   1/1/2014'';
----------------------------------------------------------------------------------------------------------------

     and
       (II) by striking subparagraph (B) and inserting the 
     following:

       ``(B) Application.--
       ``(i) Application criteria.--This subparagraph applies to 
     each lamp that--

       ``(I) is intended for a general service or general 
     illumination application (whether incandescent or not);
       ``(II) has a medium screw base or any other screw base not 
     defined in ANSI C81.61-2006;
       ``(III) is capable of being operated at a voltage at least 
     partially within the range of 110 to 130 volts; and
       ``(IV) is manufactured or imported after December 31, 2011.

       ``(ii) Requirement.--For purposes of this paragraph, each 
     lamp described in clause (i) shall have a color rendering 
     index that is greater than or equal to--

       ``(I) 80 for nonmodified spectrum lamps; or
       ``(II) 75 for modified spectrum lamps.

       ``(C) Candelabra incandescent lamps and intermediate base 
     incandescent lamps.--
       ``(i) Candelabra base incandescent lamps.--A candelabra 
     base incandescent lamp shall not exceed 60 rated watts.
       ``(ii) Intermediate base incandescent lamps.--An 
     intermediate base incandescent lamp shall not exceed 40 rated 
     watts.
       ``(D) Exemptions.--
       ``(i) Petition.--Any person may petition the Secretary for 
     an exemption for a type of general service lamp from the 
     requirements of this subsection.
       ``(ii) Criteria.--The Secretary may grant an exemption 
     under clause (i) only to the extent that the Secretary finds, 
     after a hearing and opportunity for public comment, that it 
     is not technically feasible to serve a specialized lighting 
     application (such as a military, medical, public safety, or 
     certified historic lighting application) using a lamp that 
     meets the requirements of this subsection.
       ``(iii) Additional criterion.--To grant an exemption for a 
     product under this subparagraph, the Secretary shall include, 
     as an additional criterion, that the exempted product is 
     unlikely to be used in a general service lighting 
     application.
       ``(E) Extension of coverage.--
       ``(i) Petition.--Any person may petition the Secretary to 
     establish standards for lamp shapes or bases that are 
     excluded from the definition of general service lamps.
       ``(ii) Increased sales of exempted lamps.--The petition 
     shall include evidence that the availability or sales of 
     exempted incandescent lamps have increased significantly 
     since the date on which the standards on general service 
     incandescent lamps were established.
       ``(iii) Criteria.--The Secretary shall grant a petition 
     under clause (i) if the Secretary finds that--

       ``(I) the petition presents evidence that demonstrates that 
     commercial availability or sales of exempted incandescent 
     lamp types have increased significantly since the standards 
     on general service lamps were established and likely are 
     being widely used in general lighting applications; and
       ``(II) significant energy savings could be achieved by 
     covering exempted products, as determined by the Secretary 
     based on sales data provided to the Secretary from 
     manufacturers and importers.

       ``(iv) No presumption.--The grant of a petition under this 
     subparagraph shall create no presumption with respect to the 
     determination of the Secretary with respect to any criteria 
     under a rulemaking conducted under this section.
       ``(v) Expedited proceeding.--If the Secretary grants a 
     petition for a lamp shape or base under this subparagraph, 
     the Secretary shall--

       ``(I) conduct a rulemaking to determine standards for the 
     exempted lamp shape or base; and
       ``(II) complete the rulemaking not later than 18 months 
     after the date on which notice is provided granting the 
     petition.

[[Page 33897]]

       ``(F) Definition of effective date.--In this paragraph, 
     except as otherwise provided in a table contained in 
     subparagraph (A), the term `effective date' means the last 
     day of the month specified in the table that follows October 
     24, 1992.'';
       (iii) in paragraph (5), in the first sentence, by striking 
     ``and general service incandescent lamps'';
       (iv) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (v) by inserting after paragraph (5) the following:
       ``(6) Standards for general service lamps.--
       ``(A) Rulemaking before january 1, 2014.--
       ``(i) In general.--Not later than January 1, 2014, the 
     Secretary shall initiate a rulemaking procedure to determine 
     whether--

       ``(I) standards in effect for general service lamps should 
     be amended to establish more stringent standards than the 
     standards specified in paragraph (1)(A); and
       ``(II) the exemptions for certain incandescent lamps should 
     be maintained or discontinued based, in part, on exempted 
     lamp sales collected by the Secretary from manufacturers.

       ``(ii) Scope.--The rulemaking--

       ``(I) shall not be limited to incandescent lamp 
     technologies; and
       ``(II) shall include consideration of a minimum standard of 
     45 lumens per watt for general service lamps.

       ``(iii) Amended standards.--If the Secretary determines 
     that the standards in effect for general service incandescent 
     lamps should be amended, the Secretary shall publish a final 
     rule not later than January 1, 2017, with an effective date 
     that is not earlier than 3 years after the date on which the 
     final rule is published.
       ``(iv) Phased-in effective dates.--The Secretary shall 
     consider phased-in effective dates under this subparagraph 
     after considering--

       ``(I) the impact of any amendment on manufacturers, 
     retiring and repurposing existing equipment, stranded 
     investments, labor contracts, workers, and raw materials; and
       ``(II) the time needed to work with retailers and lighting 
     designers to revise sales and marketing strategies.

       ``(v) Backstop requirement.--If the Secretary fails to 
     complete a rulemaking in accordance with clauses (i) through 
     (iv) or if the final rule does not produce savings that are 
     greater than or equal to the savings from a minimum efficacy 
     standard of 45 lumens per watt, effective beginning January 
     1, 2020, the Secretary shall prohibit the sale of any general 
     service lamp that does not meet a minimum efficacy standard 
     of 45 lumens per watt.
       ``(vi) State preemption.--Neither section 327(b) nor any 
     other provision of law shall preclude California or Nevada 
     from adopting, effective beginning on or after January 1, 
     2018--

       ``(I) a final rule adopted by the Secretary in accordance 
     with clauses (i) through (iv);
       ``(II) if a final rule described in subclause (I) has not 
     been adopted, the backstop requirement under clause (v); or
       ``(III) in the case of California, if a final rule 
     described in subclause (I) has not been adopted, any 
     California regulations relating to these covered products 
     adopted pursuant to State statute in effect as of the date of 
     enactment of the Energy Independence and Security Act of 
     2007.

       ``(B) Rulemaking before january 1, 2020.--
       ``(i) In general.--Not later than January 1, 2020, the 
     Secretary shall initiate a rulemaking procedure to determine 
     whether--

       ``(I) standards in effect for general service incandescent 
     lamps should be amended to reflect lumen ranges with more 
     stringent maximum wattage than the standards specified in 
     paragraph (1)(A); and
       ``(II) the exemptions for certain incandescent lamps should 
     be maintained or discontinued based, in part, on exempted 
     lamp sales data collected by the Secretary from 
     manufacturers.

       ``(ii) Scope.--The rulemaking shall not be limited to 
     incandescent lamp technologies.
       ``(iii) Amended standards.--If the Secretary determines 
     that the standards in effect for general service incandescent 
     lamps should be amended, the Secretary shall publish a final 
     rule not later than January 1, 2022, with an effective date 
     that is not earlier than 3 years after the date on which the 
     final rule is published.
       ``(iv) Phased-in effective dates.--The Secretary shall 
     consider phased-in effective dates under this subparagraph 
     after considering--

       ``(I) the impact of any amendment on manufacturers, 
     retiring and repurposing existing equipment, stranded 
     investments, labor contracts, workers, and raw materials; and
       ``(II) the time needed to work with retailers and lighting 
     designers to revise sales and marketing strategies.''; and

       (B) in subsection (l), by adding at the end the following:
       ``(4) Energy efficiency standards for certain lamps.--
       ``(A) In general.--The Secretary shall prescribe an energy 
     efficiency standard for rough service lamps, vibration 
     service lamps, 3-way incandescent lamps, 2,601-3,300 lumen 
     general service incandescent lamps, and shatter-resistant 
     lamps only in accordance with this paragraph.
       ``(B) Benchmarks.--Not later than 1 year after the date of 
     enactment of this paragraph, the Secretary, in consultation 
     with the National Electrical Manufacturers Association, 
     shall--
       ``(i) collect actual data for United States unit sales for 
     each of calendar years 1990 through 2006 for each of the 5 
     types of lamps described in subparagraph (A) to determine the 
     historical growth rate of the type of lamp; and
       ``(ii) construct a model for each type of lamp based on 
     coincident economic indicators that closely match the 
     historical annual growth rate of the type of lamp to provide 
     a neutral comparison benchmark to model future unit sales 
     after calendar year 2006.
       ``(C) Actual sales data.--
       ``(i) In general.--Effective for each of calendar years 
     2010 through 2025, the Secretary, in consultation with the 
     National Electrical Manufacturers Association, shall--

       ``(I) collect actual United States unit sales data for each 
     of 5 types of lamps described in subparagraph (A); and
       ``(II) not later than 90 days after the end of each 
     calendar year, compare the lamp sales in that year with the 
     sales predicted by the comparison benchmark for each of the 5 
     types of lamps described in subparagraph (A).

       ``(ii) Continuation of tracking.--

       ``(I) Determination.--Not later than January 1, 2023, the 
     Secretary shall determine if actual sales data should be 
     tracked for the lamp types described in subparagraph (A) 
     after calendar year 2025.
       ``(II) Continuation.--If the Secretary finds that the 
     market share of a lamp type described in subparagraph (A) 
     could significantly erode the market share for general 
     service lamps, the Secretary shall continue to track the 
     actual sales data for the lamp type.

       ``(D) Rough service lamps.--
       ``(i) In general.--Effective beginning with the first year 
     that the reported annual sales rate for rough service lamps 
     demonstrates actual unit sales of rough service lamps that 
     achieve levels that are at least 100 percent higher than 
     modeled unit sales for that same year, the Secretary shall--

       ``(I) not later than 90 days after the end of the previous 
     calendar year, issue a finding that the index has been 
     exceeded; and
       ``(II) not later than the date that is 1 year after the end 
     of the previous calendar year, complete an accelerated 
     rulemaking to establish an energy conservation standard for 
     rough service lamps.

       ``(ii) Backstop requirement.--If the Secretary fails to 
     complete an accelerated rulemaking in accordance with clause 
     (i)(II), effective beginning 1 year after the date of the 
     issuance of the finding under clause (i)(I), the Secretary 
     shall require rough service lamps to--

       ``(I) have a shatter-proof coating or equivalent technology 
     that is compliant with NSF/ANSI 51 and is designed to contain 
     the glass if the glass envelope of the lamp is broken and to 
     provide effective containment over the life of the lamp;
       ``(II) have a maximum 40-watt limitation; and
       ``(III) be sold at retail only in a package containing 1 
     lamp.

       ``(E) Vibration service lamps.--
       ``(i) In general.--Effective beginning with the first year 
     that the reported annual sales rate for vibration service 
     lamps demonstrates actual unit sales of vibration service 
     lamps that achieve levels that are at least 100 percent 
     higher than modeled unit sales for that same year, the 
     Secretary shall--

       ``(I) not later than 90 days after the end of the previous 
     calendar year, issue a finding that the index has been 
     exceeded; and
       ``(II) not later than the date that is 1 year after the end 
     of the previous calendar year, complete an accelerated 
     rulemaking to establish an energy conservation standard for 
     vibration service lamps.

       ``(ii) Backstop requirement.--If the Secretary fails to 
     complete an accelerated rulemaking in accordance with clause 
     (i)(II), effective beginning 1 year after the date of the 
     issuance of the finding under clause (i)(I), the Secretary 
     shall require vibration service lamps to--

       ``(I) have a maximum 40-watt limitation; and
       ``(II) be sold at retail only in a package containing 1 
     lamp.

       ``(F) 3-way incandescent lamps.--
       ``(i) In general.--Effective beginning with the first year 
     that the reported annual sales rate for 3-way incandescent 
     lamps demonstrates actual unit sales of 3-way incandescent 
     lamps that achieve levels that are at least 100 percent 
     higher than modeled unit sales for that same year, the 
     Secretary shall--

       ``(I) not later than 90 days after the end of the previous 
     calendar year, issue a finding that the index has been 
     exceeded; and
       ``(II) not later than the date that is 1 year after the end 
     of the previous calendar year, complete an accelerated 
     rulemaking to establish an energy conservation standard for 
     3-way incandescent lamps.

       ``(ii) Backstop requirement.--If the Secretary fails to 
     complete an accelerated rulemaking in accordance with clause 
     (i)(II), effective beginning 1 year after the date of

[[Page 33898]]

     issuance of the finding under clause (i)(I), the Secretary 
     shall require that--

       ``(I) each filament in a 3-way incandescent lamp meet the 
     new maximum wattage requirements for the respective lumen 
     range established under subsection (i)(1)(A); and
       ``(II) 3-way lamps be sold at retail only in a package 
     containing 1 lamp.

       ``(G) 2,601-3,300 lumen general service incandescent 
     lamps.--Effective beginning with the first year that the 
     reported annual sales rate demonstrates actual unit sales of 
     2,601-3,300 lumen general service incandescent lamps in the 
     lumen range of 2,601 through 3,300 lumens (or, in the case of 
     a modified spectrum, in the lumen range of 1,951 through 
     2,475 lumens) that achieve levels that are at least 100 
     percent higher than modeled unit sales for that same year, 
     the Secretary shall impose--
       ``(i) a maximum 95-watt limitation on general service 
     incandescent lamps in the lumen range of 2,601 through 3,300 
     lumens; and
       ``(ii) a requirement that those lamps be sold at retail 
     only in a package containing 1 lamp.
       ``(H) Shatter-resistant lamps.--
       ``(i) In general.--Effective beginning with the first year 
     that the reported annual sales rate for shatter-resistant 
     lamps demonstrates actual unit sales of shatter-resistant 
     lamps that achieve levels that are at least 100 percent 
     higher than modeled unit sales for that same year, the 
     Secretary shall--

       ``(I) not later than 90 days after the end of the previous 
     calendar year, issue a finding that the index has been 
     exceeded; and
       ``(II) not later than the date that is 1 year after the end 
     of the previous calendar year, complete an accelerated 
     rulemaking to establish an energy conservation standard for 
     shatter-resistant lamps.

       ``(ii) Backstop requirement.--If the Secretary fails to 
     complete an accelerated rulemaking in accordance with clause 
     (i)(II), effective beginning 1 year after the date of 
     issuance of the finding under clause (i)(I), the Secretary 
     shall impose--

       ``(I) a maximum wattage limitation of 40 watts on shatter 
     resistant lamps; and
       ``(II) a requirement that those lamps be sold at retail 
     only in a package containing 1 lamp.

       ``(I) Rulemakings before january 1, 2025.--
       ``(i) In general.--Except as provided in clause (ii), if 
     the Secretary issues a final rule prior to January 1, 2025, 
     establishing an energy conservation standard for any of the 5 
     types of lamps for which data collection is required under 
     any of subparagraphs (D) through (G), the requirement to 
     collect and model data for that type of lamp shall terminate 
     unless, as part of the rulemaking, the Secretary determines 
     that continued tracking is necessary.
       ``(ii) Backstop requirement.--If the Secretary imposes a 
     backstop requirement as a result of a failure to complete an 
     accelerated rulemaking in accordance with clause (i)(II) of 
     any of subparagraphs (D) through (G), the requirement to 
     collect and model data for the applicable type of lamp shall 
     continue for an additional 2 years after the effective date 
     of the backstop requirement.''.
       (b) Consumer Education and Lamp Labeling.--Section 
     324(a)(2)(C) of the Energy Policy and Conservation Act (42 
     U.S.C. 6294(a)(2)(C)) is amended by adding at the end the 
     following:
       ``(iii) Rulemaking to consider effectiveness of lamp 
     labeling.--

       ``(I) In general.--Not later than 1 year after the date of 
     enactment of this clause, the Commission shall initiate a 
     rulemaking to consider--

       ``(aa) the effectiveness of current lamp labeling for power 
     levels or watts, light output or lumens, and lamp lifetime; 
     and
       ``(bb) alternative labeling approaches that will help 
     consumers to understand new high-efficiency lamp products and 
     to base the purchase decisions of the consumers on the most 
     appropriate source that meets the requirements of the 
     consumers for lighting level, light quality, lamp lifetime, 
     and total lifecycle cost.

       ``(II) Completion.--The Commission shall--

       ``(aa) complete the rulemaking not later than the date that 
     is 30 months after the date of enactment of this clause; and
       ``(bb) consider reopening the rulemaking not later than 180 
     days before the effective dates of the standards for general 
     service incandescent lamps established under section 
     325(i)(1)(A), if the Commission determines that further 
     labeling changes are needed to help consumers understand lamp 
     alternatives.''.
       (c) Market Assessments and Consumer Awareness Program.--
       (1) In general.--In cooperation with the Administrator of 
     the Environmental Protection Agency, the Secretary of 
     Commerce, the Federal Trade Commission, lighting and retail 
     industry associations, energy efficiency organizations, and 
     any other entities that the Secretary of Energy determines to 
     be appropriate, the Secretary of Energy shall--
       (A) conduct an annual assessment of the market for general 
     service lamps and compact fluorescent lamps--
       (i) to identify trends in the market shares of lamp types, 
     efficiencies, and light output levels purchased by 
     residential and nonresidential consumers; and
       (ii) to better understand the degree to which consumer 
     decisionmaking is based on lamp power levels or watts, light 
     output or lumens, lamp lifetime, and other factors, including 
     information required on labels mandated by the Federal Trade 
     Commission;
       (B) provide the results of the market assessment to the 
     Federal Trade Commission for consideration in the rulemaking 
     described in section 324(a)(2)(C)(iii) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6294(a)(2)(C)(iii)); and
       (C) in cooperation with industry trade associations, 
     lighting industry members, utilities, and other interested 
     parties, carry out a proactive national program of consumer 
     awareness, information, and education that broadly uses the 
     media and other effective communication techniques over an 
     extended period of time to help consumers understand the lamp 
     labels and make energy-efficient lighting choices that meet 
     the needs of consumers.
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $10,000,000 
     for each of fiscal years 2009 through 2012.
       (d) General Rule of Preemption for Energy Conservation 
     Standards Before Federal Standard Becomes Effective for a 
     Product.--Section 327(b)(1) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6297(b)(1)) is amended--
       (1) by inserting ``(A)'' after ``(1)'';
       (2) by inserting ``or'' after the semicolon at the end; and
       (3) by adding at the end the following:
       ``(B) in the case of any portion of any regulation that 
     establishes requirements for general service incandescent 
     lamps, intermediate base incandescent lamps, or candelabra 
     base lamps, was enacted or adopted by the States of 
     California or Nevada before December 4, 2007, except that--
       ``(i) the regulation adopted by the California Energy 
     Commission with an effective date of January 1, 2008, shall 
     only be effective until the effective date of the Federal 
     standard for the applicable lamp category under subparagraphs 
     (A), (B), and (C) of section 325(i)(1);
       ``(ii) the States of California and Nevada may, at any 
     time, modify or adopt a State standard for general service 
     lamps to conform with Federal standards with effective dates 
     no earlier than 12 months prior to the Federal effective 
     dates prescribed under subparagraphs (A), (B), and (C) of 
     section 325(i)(1), at which time any prior regulations 
     adopted by the States of California or Nevada shall no longer 
     be effective; and
       ``(iii) all other States may, at any time, modify or adopt 
     a State standard for general service lamps to conform with 
     Federal standards and effective dates.''.
       (e) Prohibited Acts.--Section 332(a) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6302(a)) is amended--
       (1) in paragraph (4), by striking ``or'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(6) for any manufacturer, distributor, retailer, or 
     private labeler to distribute in commerce an adapter that--
       ``(A) is designed to allow an incandescent lamp that does 
     not have a medium screw base to be installed into a fixture 
     or lampholder with a medium screw base socket; and
       ``(B) is capable of being operated at a voltage range at 
     least partially within 110 and 130 volts.''.
       (f) Enforcement.--Section 334 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6304) is amended by inserting 
     after the second sentence the following: ``Any such action to 
     restrain any person from distributing in commerce a general 
     service incandescent lamp that does not comply with the 
     applicable standard established under section 325(i) or an 
     adapter prohibited under section 332(a)(6) may also be 
     brought by the attorney general of a State in the name of the 
     State.''.
       (g) Research and Development Program.--
       (1) In general.--The Secretary may carry out a lighting 
     technology research and development program--
       (A) to support the research, development, demonstration, 
     and commercial application of lamps and related technologies 
     sold, offered for sale, or otherwise made available in the 
     United States; and
       (B) to assist manufacturers of general service lamps in the 
     manufacturing of general service lamps that, at a minimum, 
     achieve the wattage requirements imposed as a result of the 
     amendments made by subsection (a).
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this subsection $10,000,000 
     for each of fiscal years 2008 through 2013.
       (3) Termination of authority.--The program under this 
     subsection shall terminate on September 30, 2015.
       (h) Reports to Congress.--
       (1) Report on mercury use and release.--Not later than 1 
     year after the date of enactment of this Act, the Secretary , 
     in cooperation with the Administrator of the Environmental 
     Protection Agency, shall submit to Congress a report 
     describing recommendations relating to the means by which the

[[Page 33899]]

     Federal Government may reduce or prevent the release of 
     mercury during the manufacture, transportation, storage, or 
     disposal of light bulbs.
       (2) Report on rulemaking schedule.--Beginning on July 1, 
     2013 and semiannually through July 1, 2016, the Secretary 
     shall submit to the Committee on Energy and Commerce of the 
     House of Representatives and the Committee on Energy and 
     Natural Resources of the Senate a report on--
       (A) whether the Secretary will meet the deadlines for the 
     rulemakings required under this section;
       (B) a description of any impediments to meeting the 
     deadlines; and
       (C) a specific plan to remedy any failures, including 
     recommendations for additional legislation or resources.
       (3) National academy review.--
       (A) In general.--Not later than December 31, 2009, the 
     Secretary shall enter into an arrangement with the National 
     Academy of Sciences to provide a report by December 31, 2013, 
     and an updated report by July 31, 2015. The report should 
     include--
       (i) the status of advanced solid state lighting research, 
     development, demonstration and commercialization;
       (ii) the impact on the types of lighting available to 
     consumers of an energy conservation standard requiring a 
     minimum of 45 lumens per watt for general service lighting 
     effective in 2020; and
       (iii) the time frame for the commercialization of lighting 
     that could replace current incandescent and halogen 
     incandescent lamp technology and any other new technologies 
     developed to meet the minimum standards required under 
     subsection (a)(3) of this section.
       (B) Reports.--The reports shall be transmitted to the 
     Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate.

     SEC. 322. INCANDESCENT REFLECTOR LAMP EFFICIENCY STANDARDS.

       (a) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) (as amended by section 
     316(c)(1)(D)) is amended--
       (1) in paragraph (30)(C)(ii)--
       (A) in the matter preceding subclause (I)--
       (i) by striking ``or similar bulb shapes (excluding ER or 
     BR)'' and inserting ``ER, BR, BPAR, or similar bulb shapes''; 
     and
       (ii) by striking ``2.75'' and inserting ``2.25''; and
       (B) by striking ``is either--'' and all that follows 
     through subclause (II) and inserting ``has a rated wattage 
     that is 40 watts or higher''; and
       (2) by adding at the end the following:
       ``(54) BPAR incandescent reflector lamp.--The term `BPAR 
     incandescent reflector lamp' means a reflector lamp as shown 
     in figure C78.21-278 on page 32 of ANSI C78.21-2003.
       ``(55) BR incandescent reflector lamp; br30; br40.--
       ``(A) BR incandescent reflector lamp.--The term `BR 
     incandescent reflector lamp' means a reflector lamp that 
     has--
       ``(i) a bulged section below the major diameter of the bulb 
     and above the approximate baseline of the bulb, as shown in 
     figure 1 (RB) on page 7 of ANSI C79.1-1994, incorporated by 
     reference in section 430.22 of title 10, Code of Federal 
     Regulations (as in effect on the date of enactment of this 
     paragraph); and
       ``(ii) a finished size and shape shown in ANSI C78.21-1989, 
     including the referenced reflective characteristics in part 7 
     of ANSI C78.21-1989, incorporated by reference in section 
     430.22 of title 10, Code of Federal Regulations (as in effect 
     on the date of enactment of this paragraph).
       ``(B) BR30.--The term `BR30' means a BR incandescent 
     reflector lamp with a diameter of 30/8ths of an inch.
       ``(C) BR40.--The term `BR40' means a BR incandescent 
     reflector lamp with a diameter of 40/8ths of an inch.
       ``(56) ER incandescent reflector lamp; er30; er40.--
       ``(A) ER incandescent reflector lamp.--The term `ER 
     incandescent reflector lamp' means a reflector lamp that 
     has--
       ``(i) an elliptical section below the major diameter of the 
     bulb and above the approximate baseline of the bulb, as shown 
     in figure 1 (RE) on page 7 of ANSI C79.1-1994, incorporated 
     by reference in section 430.22 of title 10, Code of Federal 
     Regulations (as in effect on the date of enactment of this 
     paragraph); and
       ``(ii) a finished size and shape shown in ANSI C78.21-1989, 
     incorporated by reference in section 430.22 of title 10, Code 
     of Federal Regulations (as in effect on the date of enactment 
     of this paragraph).
       ``(B) ER30.--The term `ER30' means an ER incandescent 
     reflector lamp with a diameter of 30/8ths of an inch.
       ``(C) ER40.--The term `ER40' means an ER incandescent 
     reflector lamp with a diameter of 40/8ths of an inch.
       ``(57) R20 incandescent reflector lamp.--The term `R20 
     incandescent reflector lamp' means a reflector lamp that has 
     a face diameter of approximately 2.5 inches, as shown in 
     figure 1(R) on page 7 of ANSI C79.1-1994.''.
       (b) Standards for Fluorescent Lamps and Incandescent 
     Reflector Lamps.--Section 325(i) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6995(i)) is amended by striking 
     paragraph (1) and inserting the following:
       ``(1) Standards.--
       ``(A) Definition of effective date.--In this paragraph 
     (other than subparagraph (D)), the term `effective date' 
     means, with respect to each type of lamp specified in a table 
     contained in subparagraph (B), the last day of the period of 
     months corresponding to that type of lamp (as specified in 
     the table) that follows October 24, 1992.
       ``(B) Minimum standards.--Each of the following general 
     service fluorescent lamps and incandescent reflector lamps 
     manufactured after the effective date specified in the tables 
     contained in this paragraph shall meet or exceed the 
     following lamp efficacy and CRI standards:


                                                FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                                  Effective Date
           Lamp Type               Nominal Lamp       Minimum CRI       Minimum Average Lamp        (Period of
                                      Wattage                              Efficacy (LPW)            Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
                                       35 W               45                    75.0                    36
2-foot U-shaped................        >35 W              69                    68.0                    36
                                       35 W               45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
                                       65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
                                       100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------



                     ``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
                                                          Effective Date
     Nominal Lamp Wattage         Minimum Average Lamp      (Period of
                                     Efficacy (LPW)           Months)
------------------------------------------------------------------------
 40-50.......................             10.5                  36
 51-66.......................             11.0                  36
 67-85.......................             12.5                  36
 86-115......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------

       ``(C) Exemptions.--The standards specified in subparagraph 
     (B) shall not apply to the following types of incandescent 
     reflector lamps:
       ``(i) Lamps rated at 50 watts or less that are ER30, BR30, 
     BR40, or ER40 lamps.
       ``(ii) Lamps rated at 65 watts that are BR30, BR40, or ER40 
     lamps.
       ``(iii) R20 incandescent reflector lamps rated 45 watts or 
     less.
       ``(D) Effective dates.--
       ``(i) ER, br, and bpar lamps.--The standards specified in 
     subparagraph (B) shall apply with respect to ER incandescent 
     reflector lamps, BR incandescent reflector lamps, BPAR 
     incandescent reflector lamps, and similar bulb shapes on and 
     after January 1, 2008.
       ``(ii) Lamps between 2.25-2.75 inches in diameter.--The 
     standards specified in subparagraph (B) shall apply with 
     respect to incandescent reflector lamps with a diameter of 
     more than 2.25 inches, but not more than 2.75 inches, on and 
     after the later of January 1, 2008, or the date that is 180 
     days after the date of enactment of the Energy Independence 
     and Security Act of 2007.''.

     SEC. 323. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE 
                   ENERGY SYSTEMS.

       (a) Estimate of Energy Performance in Prospectus.--Section 
     3307(b) of title 40, United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (5);
       (2) by striking the period at the end of paragraph (6) and 
     inserting ``; and''; and
       (3) by inserting after paragraph (6) the following:
       ``(7) with respect to any prospectus for the construction, 
     alteration, or acquisition of

[[Page 33900]]

     any building or space to be leased, an estimate of the future 
     energy performance of the building or space and a specific 
     description of the use of energy efficient and renewable 
     energy systems, including photovoltaic systems, in carrying 
     out the project.''.
       (b) Minimum Performance Requirements for Leased Space.--
     Section 3307 of such of title is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following:
       ``(f) Minimum Performance Requirements for Leased Space.--
     With respect to space to be leased, the Administrator shall 
     include, to the maximum extent practicable, minimum 
     performance requirements requiring energy efficiency and the 
     use of renewable energy.''.
       (c) Use of Energy Efficient Lighting Fixtures and Bulbs.--
       (1) In general.--Chapter 33 of such title is amended--
       (A) by redesignating sections 3313, 3314, and 3315 as 
     sections 3314, 3315, and 3316, respectively; and
       (B) by inserting after section 3312 the following:

     ``Sec. 3313. Use of energy efficient lighting fixtures and 
       bulbs

       ``(a) Construction, Alteration, and Acquisition of Public 
     Buildings.--Each public building constructed, altered, or 
     acquired by the Administrator of General Services shall be 
     equipped, to the maximum extent feasible as determined by the 
     Administrator, with lighting fixtures and bulbs that are 
     energy efficient.
       ``(b) Maintenance of Public Buildings.--Each lighting 
     fixture or bulb that is replaced by the Administrator in the 
     normal course of maintenance of public buildings shall be 
     replaced, to the maximum extent feasible, with a lighting 
     fixture or bulb that is energy efficient.
       ``(c) Considerations.--In making a determination under this 
     section concerning the feasibility of installing a lighting 
     fixture or bulb that is energy efficient, the Administrator 
     shall consider--
       ``(1) the life-cycle cost effectiveness of the fixture or 
     bulb;
       ``(2) the compatibility of the fixture or bulb with 
     existing equipment;
       ``(3) whether use of the fixture or bulb could result in 
     interference with productivity;
       ``(4) the aesthetics relating to use of the fixture or 
     bulb; and
       ``(5) such other factors as the Administrator determines 
     appropriate.
       ``(d) Energy Star.--A lighting fixture or bulb shall be 
     treated as being energy efficient for purposes of this 
     section if--
       ``(1) the fixture or bulb is certified under the Energy 
     Star program established by section 324A of the Energy Policy 
     and Conservation Act (42 U.S.C. 6294a);
       ``(2) in the case of all light-emitting diode (LED) 
     luminaires, lamps, and systems whose efficacy (lumens per 
     watt) and Color Rendering Index (CRI) meet the Department of 
     Energy requirements for minimum luminaire efficacy and CRI 
     for the Energy Star certification, as verified by an 
     independent third-party testing laboratory that the 
     Administrator and the Secretary of Energy determine conducts 
     its tests according to the procedures and recommendations of 
     the Illuminating Engineering Society of North America, even 
     if the luminaires, lamps, and systems have not received such 
     certification; or
       ``(3) the Administrator and the Secretary of Energy have 
     otherwise determined that the fixture or bulb is energy 
     efficient.
       ``(e) Additional Energy Efficient Lighting Designations.--
     The Administrator of the Environmental Protection Agency and 
     the Secretary of Energy shall give priority to establishing 
     Energy Star performance criteria or Federal Energy Management 
     Program designations for additional lighting product 
     categories that are appropriate for use in public buildings.
       ``(f) Guidelines.--The Administrator shall develop 
     guidelines for the use of energy efficient lighting 
     technologies that contain mercury in child care centers in 
     public buildings.
       ``(g) Applicability of Buy American Act.--Acquisitions 
     carried out pursuant to this section shall be subject to the 
     requirements of the Buy American Act (41 U.S.C. 10c et seq.).
       ``(h) Effective Date.--The requirements of subsections (a) 
     and (b) shall take effect one year after the date of 
     enactment of this subsection.''.
       (2) Clerical amendment.--The analysis for such chapter is 
     amended by striking the items relating to sections 3313, 
     3314, and 3315 and inserting the following:

``3313. Use of energy efficient lighting fixtures and bulbs.
``3314. Delegation.
``3315. Report to Congress.
``3316. Certain authority not affected.''.

       (d) Evaluation Factor.--Section 3310 of such title is 
     amended--
       (1) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively; and
       (2) by inserting after paragraph (2) the following:
       ``(3) shall include in the solicitation for any lease 
     requiring a prospectus under section 3307 an evaluation 
     factor considering the extent to which the offeror will 
     promote energy efficiency and the use of renewable energy;''.

     SEC. 324. METAL HALIDE LAMP FIXTURES.

       (a) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) (as amended by section 
     322(a)(2)) is amended by adding at the end the following:
       ``(58) Ballast.--The term `ballast' means a device used 
     with an electric discharge lamp to obtain necessary circuit 
     conditions (voltage, current, and waveform) for starting and 
     operating.
       ``(59) Ballast efficiency.--
       ``(A) In general.--The term `ballast efficiency' means, in 
     the case of a high intensity discharge fixture, the 
     efficiency of a lamp and ballast combination, expressed as a 
     percentage, and calculated in accordance with the following 
     formula: Efficiency = Pout/Pin.
       ``(B) Efficiency formula.--For the purpose of subparagraph 
     (A)--
       ``(i) Pout shall equal the measured operating 
     lamp wattage;
       ``(ii) Pin shall equal the measured operating 
     input wattage;
       ``(iii) the lamp, and the capacitor when the capacitor is 
     provided, shall constitute a nominal system in accordance 
     with the ANSI Standard C78.43-2004;
       ``(iv) for ballasts with a frequency of 60 Hz, 
     Pin and Pout shall be measured after 
     lamps have been stabilized according to section 4.4 of ANSI 
     Standard C82.6-2005 using a wattmeter with accuracy specified 
     in section 4.5 of ANSI Standard C82.6-2005; and
       ``(v) for ballasts with a frequency greater than 60 Hz, 
     Pin and Pout shall have a basic 
     accuracy of  0.5 percent at the higher of--

       ``(I) 3 times the output operating frequency of the 
     ballast; or
       ``(II) 2 kHz for ballast with a frequency greater than 60 
     Hz.

       ``(C) Modification.--The Secretary may, by rule, modify the 
     definition of `ballast efficiency' if the Secretary 
     determines that the modification is necessary or appropriate 
     to carry out the purposes of this Act.
       ``(60) Electronic ballast.--The term `electronic ballast' 
     means a device that uses semiconductors as the primary means 
     to control lamp starting and operation.
       ``(61) General lighting application.--The term `general 
     lighting application' means lighting that provides an 
     interior or exterior area with overall illumination.
       ``(62) Metal halide ballast.--The term `metal halide 
     ballast' means a ballast used to start and operate metal 
     halide lamps.
       ``(63) Metal halide lamp.--The term `metal halide lamp' 
     means a high intensity discharge lamp in which the major 
     portion of the light is produced by radiation of metal 
     halides and their products of dissociation, possibly in 
     combination with metallic vapors.
       ``(64) Metal halide lamp fixture.--The term `metal halide 
     lamp fixture' means a light fixture for general lighting 
     application designed to be operated with a metal halide lamp 
     and a ballast for a metal halide lamp.
       ``(65) Probe-start metal halide ballast.--The term `probe-
     start metal halide ballast' means a ballast that--
       ``(A) starts a probe-start metal halide lamp that contains 
     a third starting electrode (probe) in the arc tube; and
       ``(B) does not generally contain an igniter but instead 
     starts lamps with high ballast open circuit voltage.
       ``(66) Pulse-start metal halide ballast.--
       ``(A) In general.--The term `pulse-start metal halide 
     ballast' means an electronic or electromagnetic ballast that 
     starts a pulse-start metal halide lamp with high voltage 
     pulses.
       ``(B) Starting process.--For the purpose of subparagraph 
     (A)--
       ``(i) lamps shall be started by first providing a high 
     voltage pulse for ionization of the gas to produce a glow 
     discharge; and
       ``(ii) to complete the starting process, power shall be 
     provided by the ballast to sustain the discharge through the 
     glow-to-arc transition.''.
       (b) Coverage.--Section 322(a) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6292(a)) is amended--
       (1) by redesignating paragraph (19) as paragraph (20); and
       (2) by inserting after paragraph (18) the following:
       ``(19) Metal halide lamp fixtures.''.
       (c) Test Procedures.--Section 323(b) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6293(b)) (as amended by 
     section 301(b)) is amended by adding at the end the 
     following:
       ``(18) Metal halide lamp ballasts.--Test procedures for 
     metal halide lamp ballasts shall be based on ANSI Standard 
     C82.6-2005, entitled `Ballasts for High Intensity Discharge 
     Lamps--Method of Measurement'.''.
       (d) Labeling.--Section 324(a)(2) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294(a)(2)) is amended--
       (1) by redesignating subparagraphs (C) through (G) as 
     subparagraphs (D) through (H), respectively; and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Metal halide lamp fixtures.--

[[Page 33901]]

       ``(i) In general.--The Commission shall issue labeling 
     rules under this section applicable to the covered product 
     specified in section 322(a)(19) and to which standards are 
     applicable under section 325.
       ``(ii) Labeling.--The rules shall provide that the labeling 
     of any metal halide lamp fixture manufactured on or after the 
     later of January 1, 2009, or the date that is 270 days after 
     the date of enactment of this subparagraph, shall indicate 
     conspicuously, in a manner prescribed by the Commission under 
     subsection (b) by July 1, 2008, a capital letter `E' printed 
     within a circle on the packaging of the fixture, and on the 
     ballast contained in the fixture.''.
       (e) Standards.--Section 325 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295) (as amended by section 310) 
     is amended--
       (1) by redesignating subsection (hh) as subsection (ii);
       (2) by inserting after subsection (gg) the following:
       ``(hh) Metal Halide Lamp Fixtures.--
       ``(1) Standards.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     metal halide lamp fixtures designed to be operated with lamps 
     rated greater than or equal to 150 watts but less than or 
     equal to 500 watts shall contain--
       ``(i) a pulse-start metal halide ballast with a minimum 
     ballast efficiency of 88 percent;
       ``(ii) a magnetic probe-start ballast with a minimum 
     ballast efficiency of 94 percent; or
       ``(iii) a nonpulse-start electronic ballast with--

       ``(I) a minimum ballast efficiency of 92 percent for 
     wattages greater than 250 watts; and
       ``(II) a minimum ballast efficiency of 90 percent for 
     wattages less than or equal to 250 watts.

       ``(B) Exclusions.--The standards established under 
     subparagraph (A) shall not apply to--
       ``(i) fixtures with regulated lag ballasts;
       ``(ii) fixtures that use electronic ballasts that operate 
     at 480 volts; or
       ``(iii) fixtures that--

       ``(I) are rated only for 150 watt lamps;
       ``(II) are rated for use in wet locations, as specified by 
     the National Electrical Code 2002, section 410.4(A); and
       ``(III) contain a ballast that is rated to operate at 
     ambient air temperatures above 
     50 deg. C, as specified by UL 1029-2001.

       ``(C) Application.--The standards established under 
     subparagraph (A) shall apply to metal halide lamp fixtures 
     manufactured on or after the later of--
       ``(i) January 1, 2009; or
       ``(ii) the date that is 270 days after the date of 
     enactment of this subsection.
       ``(2) Final rule by january 1, 2012.--
       ``(A) In general.--Not later than January 1, 2012, the 
     Secretary shall publish a final rule to determine whether the 
     standards established under paragraph (1) should be amended.
       ``(B) Administration.--The final rule shall--
       ``(i) contain any amended standard; and
       ``(ii) apply to products manufactured on or after January 
     1, 2015.
       ``(3) Final rule by january 1, 2019.--
       ``(A) In general.--Not later than January 1, 2019, the 
     Secretary shall publish a final rule to determine whether the 
     standards then in effect should be amended.
       ``(B) Administration.--The final rule shall--
       ``(i) contain any amended standards; and
       ``(ii) apply to products manufactured after January 1, 
     2022.
       ``(4) Design and performance requirements.--Notwithstanding 
     any other provision of law, any standard established pursuant 
     to this subsection may contain both design and performance 
     requirements.''; and
       (3) in paragraph (2) of subsection (ii) (as redesignated by 
     paragraph (2)), by striking ``(gg)'' each place it appears 
     and inserting ``(hh)''.
       (f) Effect on Other Law.--Section 327(c) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6297(c)) is amended--
       (1) in paragraph (8)(B), by striking the period at the end 
     and inserting ``; and''; and
       (2) by adding at the end the following:
       ``(9) is a regulation concerning metal halide lamp fixtures 
     adopted by the California Energy Commission on or before 
     January 1, 2011, except that--
       ``(A) if the Secretary fails to issue a final rule within 
     180 days after the deadlines for rulemakings in section 
     325(hh), notwithstanding any other provision of this section, 
     preemption shall not apply to a regulation concerning metal 
     halide lamp fixtures adopted by the California Energy 
     Commission--
       ``(i) on or before July 1, 2015, if the Secretary fails to 
     meet the deadline specified in section 325(hh)(2); or
       ``(ii) on or before July 1, 2022, if the Secretary fails to 
     meet the deadline specified in section 325(hh)(3).''.

     SEC. 325. ENERGY EFFICIENCY LABELING FOR CONSUMER ELECTRONIC 
                   PRODUCTS.

       (a) In General.--Section 324(a) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294(a)) (as amended by section 
     324(d)) is amended--
       (1) in paragraph (2), by adding at the end the following:
       ``(I) Labeling requirements.--
       ``(i) In general.--Subject to clauses (ii) through (iv), 
     not later than 18 months after the date of issuance of 
     applicable Department of Energy testing procedures, the 
     Commission, in consultation with the Secretary and the 
     Administrator of the Environmental Protection Agency (acting 
     through the Energy Star program), shall, by regulation, 
     prescribe labeling or other disclosure requirements for the 
     energy use of--

       ``(I) televisions;
       ``(II) personal computers;
       ``(III) cable or satellite set-top boxes;
       ``(IV) stand-alone digital video recorder boxes; and
       ``(V) personal computer monitors.

       ``(ii) Alternate testing procedures.--In the absence of 
     applicable testing procedures described in clause (i) for 
     products described in subclauses (I) through (V) of that 
     clause, the Commission may, by regulation, prescribe labeling 
     or other disclosure requirements for a consumer product 
     category described in clause (i) if the Commission--

       ``(I) identifies adequate non-Department of Energy testing 
     procedures for those products; and
       ``(II) determines that labeling of, or other disclosures 
     relating to, those products is likely to assist consumers in 
     making purchasing decisions.

       ``(iii) Deadline and requirements for labeling.--

       ``(I) Deadline.--Not later than 18 months after the date of 
     promulgation of any requirements under clause (i) or (ii), 
     the Commission shall require labeling of, or other disclosure 
     requirements for, electronic products described in clause 
     (i).
       ``(II) Requirements.--The requirements prescribed under 
     clause (i) or (ii) may include specific requirements for each 
     electronic product to be labeled with respect to the 
     placement, size, and content of Energy Guide labels.

       ``(iv) Determination of feasibility.--Clause (i) or (ii) 
     shall not apply in any case in which the Commission 
     determines that labeling in accordance with this subsection--

       ``(I) is not technologically or economically feasible; or
       ``(II) is not likely to assist consumers in making 
     purchasing decisions.''; and

       (2) by adding at the end the following:
       ``(6) Authority to include additional product categories.--
     The Commission may, by regulation, require labeling or other 
     disclosures in accordance with this subsection for any 
     consumer product not specified in this subsection or section 
     322 if the Commission determines that labeling for the 
     product is likely to assist consumers in making purchasing 
     decisions.''.
       (b) Content of Label.--Section 324(c) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6924(c)) is amended by adding 
     at the end the following:
       ``(9) Discretionary application.--The Commission may apply 
     paragraphs (1), (2), (3), (5), and (6) of this subsection to 
     the labeling of any product covered by paragraph (2)(I) or 
     (6) of subsection (a).''.

           TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

     SEC. 401. DEFINITIONS.

       In this title:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of General Services.
       (2) Advisory committee.--The term ``Advisory Committee'' 
     means the Green Building Advisory Committee established under 
     section 484.
       (3) Commercial director.--The term ``Commercial Director'' 
     means the individual appointed to the position established 
     under section 421.
       (4) Consortium.--The term ``Consortium'' means the High-
     Performance Green Building Partnership Consortium created in 
     response to section 436(c)(1) to represent the private sector 
     in a public-private partnership to promote high-performance 
     green buildings and zero-net-energy commercial buildings.
       (5) Cost-effective lighting technology.--
       (A) In general.--The term ``cost-effective lighting 
     technology'' means a lighting technology that--
       (i) will result in substantial operational cost savings by 
     ensuring an installed consumption of not more than 1 watt per 
     square foot; or
       (ii) is contained in a list under--

       (I) section 553 of Public Law 95-619 (42 U.S.C. 8259b);
       (II) Federal acquisition regulation 23-203; and
       (III) is at least as energy-conserving as required by other 
     provisions of this Act, including the requirements of this 
     title and title III which shall be applicable to the extent 
     that they would achieve greater energy savings than provided 
     under clause (i) or this clause.

       (B) Inclusions.--The term ``cost-effective lighting 
     technology'' includes--
       (i) lamps;
       (ii) ballasts;
       (iii) luminaires;
       (iv) lighting controls;
       (v) daylighting; and
       (vi) early use of other highly cost-effective lighting 
     technologies.

[[Page 33902]]

       (6) Cost-effective technologies and practices.--The term 
     ``cost-effective technologies and practices'' means a 
     technology or practice that--
       (A) will result in substantial operational cost savings by 
     reducing electricity or fossil fuel consumption, water, or 
     other utility costs, including use of geothermal heat pumps;
       (B) complies with the provisions of section 553 of Public 
     Law 95-619 (42 U.S.C. 8259b) and Federal acquisition 
     regulation 23-203; and
       (C) is at least as energy and water conserving as required 
     under this title, including sections 431 through 435, and 
     title V, including section 511 through 525, which shall be 
     applicable to the extent that they are more stringent or 
     require greater energy or water savings than required by this 
     section.
       (7) Federal director.--The term ``Federal Director'' means 
     the individual appointed to the position established under 
     section 436(a).
       (8) Federal facility.--The term ``Federal facility'' means 
     any building that is constructed, renovated, leased, or 
     purchased in part or in whole for use by the Federal 
     Government.
       (9) Operational cost savings.--
       (A) In general.--The term ``operational cost savings'' 
     means a reduction in end-use operational costs through the 
     application of cost-effective technologies and practices or 
     geothermal heat pumps, including a reduction in electricity 
     consumption relative to consumption by the same customer or 
     at the same facility in a given year, as defined in 
     guidelines promulgated by the Administrator pursuant to 
     section 329(b) of the Clean Air Act, that achieves cost 
     savings sufficient to pay the incremental additional costs of 
     using cost-effective technologies and practices including 
     geothermal heat pumps by not later than the later of the date 
     established under sections 431 through 434, or--
       (i) for cost-effective technologies and practices, the date 
     that is 5 years after the date of installation; and
       (ii) for geothermal heat pumps, as soon as practical after 
     the date of installation of the applicable geothermal heat 
     pump.
       (B) Inclusions.--The term ``operational cost savings'' 
     includes savings achieved at a facility as a result of--
       (i) the installation or use of cost-effective technologies 
     and practices; or
       (ii) the planting of vegetation that shades the facility 
     and reduces the heating, cooling, or lighting needs of the 
     facility.
       (C) Exclusion.--The term ``operational cost savings'' does 
     not include savings from measures that would likely be 
     adopted in the absence of cost-effective technology and 
     practices programs, as determined by the Administrator.
       (10) Geothermal heat pump.--The term ``geothermal heat 
     pump'' means any heating or air conditioning technology 
     that--
       (A) uses the ground or ground water as a thermal energy 
     source to heat, or as a thermal energy sink to cool, a 
     building; and
       (B) meets the requirements of the Energy Star program of 
     the Environmental Protection Agency applicable to geothermal 
     heat pumps on the date of purchase of the technology.
       (11) GSA facility.--
       (A) In general.--The term ``GSA facility'' means any 
     building, structure, or facility, in whole or in part 
     (including the associated support systems of the building, 
     structure, or facility) that--
       (i) is constructed (including facilities constructed for 
     lease), renovated, or purchased, in whole or in part, by the 
     Administrator for use by the Federal Government; or
       (ii) is leased, in whole or in part, by the Administrator 
     for use by the Federal Government--

       (I) except as provided in subclause (II), for a term of not 
     less than 5 years; or
       (II) for a term of less than 5 years, if the Administrator 
     determines that use of cost-effective technologies and 
     practices would result in the payback of expenses.

       (B) Inclusion.--The term ``GSA facility'' includes any 
     group of buildings, structures, or facilities described in 
     subparagraph (A) (including the associated energy-consuming 
     support systems of the buildings, structures, and 
     facilities).
       (C) Exemption.--The Administrator may exempt from the 
     definition of ``GSA facility'' under this paragraph a 
     building, structure, or facility that meets the requirements 
     of section 543(c) of Public Law 95-619 (42 U.S.C. 8253(c)).
       (12) High-performance building.--The term ``high 
     performance building'' means a building that integrates and 
     optimizes on a life cycle basis all major high performance 
     attributes, including energy conservation, environment, 
     safety, security, durability, accessibility, cost-benefit, 
     productivity, sustainability, functionality, and operational 
     considerations.
       (13) High-performance green building.--The term ``high-
     performance green building'' means a high-performance 
     building that, during its life-cycle, as compared with 
     similar buildings (as measured by Commercial Buildings Energy 
     Consumption Survey or Residential Energy Consumption Survey 
     data from the Energy Information Agency)--
       (A) reduces energy, water, and material resource use;
       (B) improves indoor environmental quality, including 
     reducing indoor pollution, improving thermal comfort, and 
     improving lighting and acoustic environments that affect 
     occupant health and productivity;
       (C) reduces negative impacts on the environment throughout 
     the life-cycle of the building, including air and water 
     pollution and waste generation;
       (D) increases the use of environmentally preferable 
     products, including biobased, recycled content, and nontoxic 
     products with lower life-cycle impacts;
       (E) increases reuse and recycling opportunities;
       (F) integrates systems in the building;
       (G) reduces the environmental and energy impacts of 
     transportation through building location and site design that 
     support a full range of transportation choices for users of 
     the building; and
       (H) considers indoor and outdoor effects of the building on 
     human health and the environment, including--
       (i) improvements in worker productivity;
       (ii) the life-cycle impacts of building materials and 
     operations; and
       (iii) other factors that the Federal Director or the 
     Commercial Director consider to be appropriate.
       (14) Life-cycle.--The term ``life-cycle'', with respect to 
     a high-performance green building, means all stages of the 
     useful life of the building (including components, equipment, 
     systems, and controls of the building) beginning at 
     conception of a high-performance green building project and 
     continuing through site selection, design, construction, 
     landscaping, commissioning, operation, maintenance, 
     renovation, deconstruction or demolition, removal, and 
     recycling of the high-performance green building.
       (15) Life-cycle assessment.--The term ``life-cycle 
     assessment'' means a comprehensive system approach for 
     measuring the environmental performance of a product or 
     service over the life of the product or service, beginning at 
     raw materials acquisition and continuing through 
     manufacturing, transportation, installation, use, reuse, and 
     end-of-life waste management.
       (16) Life-cycle costing.--The term ``life-cycle costing'', 
     with respect to a high-performance green building, means a 
     technique of economic evaluation that--
       (A) sums, over a given study period, the costs of initial 
     investment (less resale value), replacements, operations 
     (including energy use), and maintenance and repair of an 
     investment decision; and
       (B) is expressed--
       (i) in present value terms, in the case of a study period 
     equivalent to the longest useful life of the building, 
     determined by taking into consideration the typical life of 
     such a building in the area in which the building is to be 
     located; or
       (ii) in annual value terms, in the case of any other study 
     period.
       (17) Office of commercial high-performance green 
     buildings.--The term ``Office of Commercial High-Performance 
     Green Buildings'' means the Office of Commercial High-
     Performance Green Buildings established under section 421(a).
       (18) Office of federal high-performance green buildings.--
     The term ``Office of Federal High-Performance Green 
     Buildings'' means the Office of Federal High-Performance 
     Green Buildings established under section 436(a).
       (19) Practices.--The term ``practices'' means design, 
     financing, permitting, construction, commissioning, operation 
     and maintenance, and other practices that contribute to 
     achieving zero-net-energy buildings or facilities.
       (20) Zero-net-energy commercial building.--The term ``zero-
     net-energy commercial building'' means a commercial building 
     that is designed, constructed, and operated to--
       (A) require a greatly reduced quantity of energy to 
     operate;
       (B) meet the balance of energy needs from sources of energy 
     that do not produce greenhouse gases;
       (C) therefore result in no net emissions of greenhouse 
     gases; and
       (D) be economically viable.

              Subtitle A--Residential Building Efficiency

     SEC. 411. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE 
                   PROGRAM.

       (a) In General.--Section 422 of the Energy Conservation and 
     Production Act (42 U.S.C. 6872) is amended by striking `` 
     appropriated $500,000,000 for fiscal year 2006, $600,000,000 
     for fiscal year 2007, and $700,000,000 for fiscal year 2008'' 
     and inserting ``appropriated--
       ``(1) $750,000,000 for fiscal year 2008;
       ``(2) $900,000,000 for fiscal year 2009;
       ``(3) $1,050,000,000 for fiscal year 2010;
       ``(4) $1,200,000,000 for fiscal year 2011; and
       ``(5) $1,400,000,000 for fiscal year 2012.''.
       (b) Sustainable Energy Resources for Consumers Grants.--
       (1) In general.--The Secretary may make funding available 
     to local weatherization agencies from amounts authorized 
     under the amendment made by subsection (a) to expand the 
     weatherization assistance program for residential buildings 
     to include materials, benefits, and renewable and domestic 
     energy technologies not covered by the program (as of the 
     date of enactment of this Act), if the State weatherization 
     grantee certifies that the applicant has the capacity to 
     carry out the proposed activities and that

[[Page 33903]]

     the grantee will include the project in the financial 
     oversight of the grantee of the weatherization assistance 
     program.
       (2) Priority.--In selecting grant recipients under this 
     subsection, the Secretary shall give priority to--
       (A) the expected effectiveness and benefits of the proposed 
     project to low- and moderate-income energy consumers;
       (B) the potential for replication of successful results;
       (C) the impact on the health and safety and energy costs of 
     consumers served; and
       (D) the extent of partnerships with other public and 
     private entities that contribute to the resources and 
     implementation of the program, including financial 
     partnerships.
       (3) Funding.--
       (A) In general.--Except as provided in paragraph (2), the 
     amount of funds used for projects described in paragraph (1) 
     may equal up to 2 percent of the amount of funds made 
     available for any fiscal year under section 422 of the Energy 
     Conservation and Production Act (42 U.S.C. 6872).
       (B) Exception.--No funds may be used for sustainable energy 
     resources for consumers grants for a fiscal year under this 
     subsection if the amount of funds made available for the 
     fiscal year to carry out the Weatherization Assistance 
     Program for Low-Income Persons established under part A of 
     title IV of the Energy Conservation and Production Act (42 
     U.S.C. 6861 et seq.) is less than $275,000,000.
       (c) Definition of State.--Section 412 of the Energy 
     Conservation and Production Act (42 U.S.C. 6862) is amended 
     by striking paragraph (8) and inserting the following:
       ``(8) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia;
       ``(C) the Commonwealth of Puerto Rico; and
       ``(D) any other territory or possession of the United 
     States.''.

     SEC. 412. STUDY OF RENEWABLE ENERGY REBATE PROGRAMS.

       (a) In General.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall conduct, and 
     submit to Congress a report on, a study regarding the rebate 
     programs established under sections 124 and 206(c) of the 
     Energy Policy Act of 2005 (42 U.S.C. 15821, 15853).
       (b) Components.--In conducting the study, the Secretary 
     shall--
       (1) develop a plan for how the rebate programs would be 
     carried out if the programs were funded; and
       (2) determine the minimum amount of funding the program 
     would need to receive in order to accomplish the goals of the 
     programs.

     SEC. 413. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED 
                   HOUSING.

       (a) Establishment of Standards.--
       (1) In general.--Not later than 4 years after the date of 
     enactment of this Act, the Secretary shall by regulation 
     establish standards for energy efficiency in manufactured 
     housing.
       (2) Notice, comment, and consultation.--Standards described 
     in paragraph (1) shall be established after--
       (A) notice and an opportunity for comment by manufacturers 
     of manufactured housing and other interested parties; and
       (B) consultation with the Secretary of Housing and Urban 
     Development, who may seek further counsel from the 
     Manufactured Housing Consensus Committee.
       (b) Requirements.--
       (1) International energy conservation code.--The energy 
     conservation standards established under this section shall 
     be based on the most recent version of the International 
     Energy Conservation Code (including supplements), except in 
     cases in which the Secretary finds that the code is not cost-
     effective, or a more stringent standard would be more cost-
     effective, based on the impact of the code on the purchase 
     price of manufactured housing and on total life-cycle 
     construction and operating costs.
       (2) Considerations.--The energy conservation standards 
     established under this section may--
       (A) take into consideration the design and factory 
     construction techniques of manufactured homes;
       (B) be based on the climate zones established by the 
     Department of Housing and Urban Development rather than the 
     climate zones under the International Energy Conservation 
     Code; and
       (C) provide for alternative practices that result in net 
     estimated energy consumption equal to or less than the 
     specified standards.
       (3) Updating.--The energy conservation standards 
     established under this section shall be updated not later 
     than--
       (A) 1 year after the date of enactment of this Act; and
       (B) 1 year after any revision to the International Energy 
     Conservation Code.
       (c) Enforcement.--Any manufacturer of manufactured housing 
     that violates a provision of the regulations under subsection 
     (a) is liable to the United States for a civil penalty in an 
     amount not exceeding 1 percent of the manufacturer's retail 
     list price of the manufactured housing.

           Subtitle B--High-Performance Commercial Buildings

     SEC. 421. COMMERCIAL HIGH-PERFORMANCE GREEN BUILDINGS.

       (a) Director of Commercial High-Performance Green 
     Buildings.--Notwithstanding any other provision of law, the 
     Secretary, acting through the Assistant Secretary of Energy 
     Efficiency and Renewable Energy, shall appoint a Director of 
     Commercial High-Performance Green Buildings to a position in 
     the career-reserved Senior Executive service, with the 
     principal responsibility to--
       (1) establish and manage the Office of Commercial High-
     Performance Green Buildings; and
       (2) carry out other duties as required under this subtitle.
       (b) Qualifications.--The Commercial Director shall be an 
     individual, who by reason of professional background and 
     experience, is specifically qualified to carry out the duties 
     required under this subtitle.
       (c) Duties.--The Commercial Director shall, with respect to 
     development of high-performance green buildings and zero-
     energy commercial buildings nationwide--
       (1) coordinate the activities of the Office of Commercial 
     High-Performance Green Buildings with the activities of the 
     Office of Federal High-Performance Green Buildings;
       (2) develop the legal predicates and agreements for, 
     negotiate, and establish one or more public-private 
     partnerships with the Consortium, members of the Consortium, 
     and other capable parties meeting the qualifications of the 
     Consortium, to further such development;
       (3) represent the public and the Department in negotiating 
     and performing in accord with such public-private 
     partnerships;
       (4) use appropriated funds in an effective manner to 
     encourage the maximum investment of private funds to achieve 
     such development;
       (5) promote research and development of high performance 
     green buildings, consistent with section 423; and
       (6) jointly establish with the Federal Director a national 
     high-performance green building clearinghouse in accordance 
     with section 423(1), which shall provide high-performance 
     green building information and disseminate research results 
     through--
       (A) outreach;
       (B) education; and
       (C) the provision of technical assistance.
       (d) Reporting.--The Commercial Director shall report 
     directly to the Assistant Secretary for Energy Efficiency and 
     Renewable Energy, or to other senior officials in a way that 
     facilitates the integrated program of this subtitle for both 
     energy efficiency and renewable energy and both technology 
     development and technology deployment.
       (e) Coordination.--The Commercial Director shall ensure 
     full coordination of high-performance green building 
     information and activities, including activities under this 
     subtitle, within the Federal Government by working with the 
     General Services Administration and all relevant agencies, 
     including, at a minimum--
       (1) the Environmental Protection Agency;
       (2) the Office of the Federal Environmental Executive;
       (3) the Office of Federal Procurement Policy;
       (4) the Department of Energy, particularly the Federal 
     Energy Management Program;
       (5) the Department of Health and Human Services;
       (6) the Department of Housing and Urban Development;
       (7) the Department of Defense;
       (8) the National Institute of Standards and Technology;
       (9) the Department of Transportation;
       (10) the Office of Science Technology and Policy; and
       (11) such nonprofit high-performance green building rating 
     and analysis entities as the Commercial Director determines 
     can offer support, expertise, and review services.
       (f) High-Performance Green Building Partnership 
     Consortium.--
       (1) Recognition.--Not later than 90 days after the date of 
     enactment of this Act, the Commercial Director shall formally 
     recognize one or more groups that qualify as a high-
     performance green building partnership consortium.
       (2) Representation to qualify.--To qualify under this 
     section, any consortium shall include representation from--
       (A) the design professions, including national associations 
     of architects and of professional engineers;
       (B) the development, construction, financial, and real 
     estate industries;
       (C) building owners and operators from the public and 
     private sectors;
       (D) academic and research organizations, including at least 
     one national laboratory with extensive commercial building 
     energy expertise;
       (E) building code agencies and organizations, including a 
     model energy code-setting organization;
       (F) independent high-performance green building 
     associations or councils;
       (G) experts in indoor air quality and environmental 
     factors;
       (H) experts in intelligent buildings and integrated 
     building information systems;
       (I) utility energy efficiency programs;
       (J) manufacturers and providers of equipment and techniques 
     used in high performance green buildings;

[[Page 33904]]

       (K) public transportation industry experts; and
       (L) nongovernmental energy efficiency organizations.
       (3) Funding.--The Secretary may make payments to the 
     Consortium pursuant to the terms of a public-private 
     partnership for such activities of the Consortium undertaken 
     under such a partnership as described in this subtitle 
     directly to the Consortium or through one or more of its 
     members.
       (g) Report.--Not later than 2 years after the date of 
     enactment of this Act, and biennially thereafter, the 
     Commercial Director, in consultation with the Consortium, 
     shall submit to Congress a report that--
       (1) describes the status of the high-performance green 
     building initiatives under this subtitle and other Federal 
     programs affecting commercial high-performance green 
     buildings in effect as of the date of the report, including--
       (A) the extent to which the programs are being carried out 
     in accordance with this subtitle; and
       (B) the status of funding requests and appropriations for 
     those programs; and
       (2) summarizes and highlights development, at the State and 
     local level, of high-performance green building initiatives, 
     including executive orders, policies, or laws adopted 
     promoting high-performance green building (including the 
     status of implementation of those initiatives).

     SEC. 422. ZERO NET ENERGY COMMERCIAL BUILDINGS INITIATIVE.

       (a) Definitions.--In this section:
       (1) Consortium.--The term ``consortium'' means a High-
     Performance Green Building Consortium selected by the 
     Commercial Director.
       (2) Initiative.--The term ``initiative'' means the Zero-
     Net-Energy Commercial Buildings Initiative established under 
     subsection (b)(1).
       (3) Zero-net-energy commercial building.--The term ``zero-
     net-energy commercial building'' means a high-performance 
     commercial building that is designed, constructed, and 
     operated--
       (A) to require a greatly reduced quantity of energy to 
     operate;
       (B) to meet the balance of energy needs from sources of 
     energy that do not produce greenhouse gases;
       (C) in a manner that will result in no net emissions of 
     greenhouse gases; and
       (D) to be economically viable.
       (b) Establishment.--
       (1) In general.--The Commercial Director shall establish an 
     initiative, to be known as the ``Zero-Net-Energy Commercial 
     Buildings Initiative''--
       (A) to reduce the quantity of energy consumed by commercial 
     buildings located in the United States; and
       (B) to achieve the development of zero net energy 
     commercial buildings in the United States.
       (2) Consortium.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Commercial Director shall 
     competitively select, and enter into an agreement with, a 
     consortium to develop and carry out the initiative.
       (B) Agreements.--In entering into an agreement with a 
     consortium under subparagraph (A), the Commercial Director 
     shall use the authority described in section 646(g) of the 
     Department of Energy Organization Act (42 U.S.C. 7256(g)), to 
     the maximum extent practicable.
       (c) Goal of Initiative.--The goal of the initiative shall 
     be to develop and disseminate technologies, practices, and 
     policies for the development and establishment of zero net 
     energy commercial buildings for--
       (1) any commercial building newly constructed in the United 
     States by 2030;
       (2) 50 percent of the commercial building stock of the 
     United States by 2040; and
       (3) all commercial buildings in the United States by 2050.
       (d) Components.--In carrying out the initiative, the 
     Commercial Director, in consultation with the consortium, 
     may--
       (1) conduct research and development on building science, 
     design, materials, components, equipment and controls, 
     operation and other practices, integration, energy use 
     measurement, and benchmarking;
       (2) conduct pilot programs and demonstration projects to 
     evaluate replicable approaches to achieving energy efficient 
     commercial buildings for a variety of building types in a 
     variety of climate zones;
       (3) conduct deployment, dissemination, and technical 
     assistance activities to encourage widespread adoption of 
     technologies, practices, and policies to achieve energy 
     efficient commercial buildings;
       (4) conduct other research, development, demonstration, and 
     deployment activities necessary to achieve each goal of the 
     initiative, as determined by the Commercial Director, in 
     consultation with the consortium;
       (5) develop training materials and courses for building 
     professionals and trades on achieving cost-effective high-
     performance energy efficient buildings;
       (6) develop and disseminate public education materials to 
     share information on the benefits and cost-effectiveness of 
     high-performance energy efficient buildings;
       (7) support code-setting organizations and State and local 
     governments in developing minimum performance standards in 
     building codes that recognize the ready availability of many 
     technologies utilized in high-performance energy efficient 
     buildings;
       (8) develop strategies for overcoming the split incentives 
     between builders and purchasers, and landlords and tenants, 
     to ensure that energy efficiency and high-performance 
     investments are made that are cost-effective on a lifecycle 
     basis; and
       (9) develop improved means of measurement and verification 
     of energy savings and performance for public dissemination.
       (e) Cost Sharing.--In carrying out this section, the 
     Commercial Director shall require cost sharing in accordance 
     with section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
     16352).
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $20,000,000 for fiscal year 2008;
       (2) $50,000,000 for each of fiscal years 2009 and 2010;
       (3) $100,000,000 for each of fiscal years 2011 and 2012; 
     and
       (4) $200,000,000 for each of fiscal years 2013 through 
     2018.

     SEC. 423. PUBLIC OUTREACH.

       The Commercial Director and Federal Director, in 
     coordination with the Consortium, shall carry out public 
     outreach to inform individuals and entities of the 
     information and services available Governmentwide by--
       (1) establishing and maintaining a national high-
     performance green building clearinghouse, including on the 
     internet, that--
       (A) identifies existing similar efforts and coordinates 
     activities of common interest; and
       (B) provides information relating to high-performance green 
     buildings, including hyperlinks to internet sites that 
     describe the activities, information, and resources of--
       (i) the Federal Government;
       (ii) State and local governments;
       (iii) the private sector (including nongovernmental and 
     nonprofit entities and organizations); and
       (iv) international organizations;
       (2) identifying and recommending educational resources for 
     implementing high-performance green building practices, 
     including security and emergency benefits and practices;
       (3) providing access to technical assistance, tools, and 
     resources for constructing high-performance green buildings, 
     particularly tools to conduct life-cycle costing and life-
     cycle assessment;
       (4) providing information on application processes for 
     certifying a high-performance green building, including 
     certification and commissioning;
       (5) providing to the public, through the Commercial 
     Director, technical and research information or other forms 
     of assistance or advice that would be useful in planning and 
     constructing high-performance green buildings;
       (6) using such additional methods as are determined by the 
     Commercial Director to be appropriate to conduct public 
     outreach;
       (7) surveying existing research and studies relating to 
     high-performance green buildings; and
       (8) coordinating activities of common interest.

             Subtitle C--High-Performance Federal Buildings

     SEC. 431. ENERGY REDUCTION GOALS FOR FEDERAL BUILDINGS.

       Section 543(a)(1) of the National Energy Conservation 
     Policy Act (42 U.S.C. 8253(a)(1)) is amended by striking the 
     table and inserting the following:

``Fiscal Year                                      Percentage reduction
  2006...............................................................2 
  2007...............................................................4 
  2008...............................................................9 
  2009..............................................................12 
  2010..............................................................15 
  2011..............................................................18 
  2012..............................................................21 
  2013..............................................................24 
  2014..............................................................27 
  2015............................................................30.''

     SEC. 432. MANAGEMENT OF ENERGY AND WATER EFFICIENCY IN 
                   FEDERAL BUILDINGS.

       Section 543 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8253) is amended by adding at the end the 
     following:
       ``(f) Use of Energy and Water Efficiency Measures in 
     Federal Buildings.--
       ``(1) Definitions.--In this subsection:
       ``(A) Commissioning.--The term `commissioning', with 
     respect to a facility, means a systematic process--
       ``(i) of ensuring, using appropriate verification and 
     documentation, during the period beginning on the initial day 
     of the design phase of the facility and ending not earlier 
     than 1 year after the date of completion of construction of 
     the facility, that all facility systems perform interactively 
     in accordance with--

       ``(I) the design documentation and intent of the facility; 
     and
       ``(II) the operational needs of the owner of the facility, 
     including preparation of operation personnel; and

       ``(ii) the primary goal of which is to ensure fully 
     functional systems that can be properly operated and 
     maintained during the useful life of the facility.

[[Page 33905]]

       ``(B) Energy manager.--
       ``(i) In general.--The term `energy manager', with respect 
     to a facility, means the individual who is responsible for--

       ``(I) ensuring compliance with this subsection by the 
     facility; and
       ``(II) reducing energy use at the facility.

       ``(ii) Inclusions.--The term `energy manager' may include--

       ``(I) a contractor of a facility;
       ``(II) a part-time employee of a facility; and
       ``(III) an individual who is responsible for multiple 
     facilities.

       ``(C) Facility.--
       ``(i) In general.--The term `facility' means any building, 
     installation, structure, or other property (including any 
     applicable fixtures) owned or operated by, or constructed or 
     manufactured and leased to, the Federal Government.
       ``(ii) Inclusions.--The term `facility' includes--

       ``(I) a group of facilities at a single location or 
     multiple locations managed as an integrated operation; and
       ``(II) contractor-operated facilities owned by the Federal 
     Government.

       ``(iii) Exclusions.--The term `facility' does not include 
     any land or site for which the cost of utilities is not paid 
     by the Federal Government.
       ``(D) Life cycle cost-effective.--The term `life cycle 
     cost-effective', with respect to a measure, means a measure 
     the estimated savings of which exceed the estimated costs 
     over the lifespan of the measure, as determined in accordance 
     with section 544.
       ``(E) Payback period.--
       ``(i) In general.--Subject to clause (ii), the term 
     `payback period', with respect to a measure, means a value 
     equal to the quotient obtained by dividing--

       ``(I) the estimated initial implementation cost of the 
     measure (other than financing costs); by
       ``(II) the annual cost savings resulting from the measure, 
     including--

       ``(aa) net savings in estimated energy and water costs; and
       ``(bb) operations, maintenance, repair, replacement, and 
     other direct costs.
       ``(ii) Modifications and exceptions.--The Secretary, in 
     guidelines issued pursuant to paragraph (6), may make such 
     modifications and provide such exceptions to the calculation 
     of the payback period of a measure as the Secretary 
     determines to be appropriate to achieve the purposes of this 
     Act.
       ``(F) Recommissioning.--The term `recommissioning' means a 
     process--
       ``(i) of commissioning a facility or system beyond the 
     project development and warranty phases of the facility or 
     system; and
       ``(ii) the primary goal of which is to ensure optimum 
     performance of a facility, in accordance with design or 
     current operating needs, over the useful life of the 
     facility, while meeting building occupancy requirements.
       ``(G) Retrocommissioning.--The term `retrocommissioning' 
     means a process of commissioning a facility or system that 
     was not commissioned at time of construction of the facility 
     or system.
       ``(2) Facility energy managers.--
       ``(A) In general.--Each Federal agency shall designate an 
     energy manager responsible for implementing this subsection 
     and reducing energy use at each facility that meets criteria 
     under subparagraph (B).
       ``(B) Covered facilities.--The Secretary shall develop 
     criteria, after consultation with affected agencies, energy 
     efficiency advocates, and energy and utility service 
     providers, that cover, at a minimum, Federal facilities, 
     including central utility plants and distribution systems and 
     other energy intensive operations, that constitute at least 
     75 percent of facility energy use at each agency.
       ``(3) Energy and water evaluations.--
       ``(A) Evaluations.--Effective beginning on the date that is 
     180 days after the date of enactment of this subsection and 
     annually thereafter, energy managers shall complete, for each 
     calendar year, a comprehensive energy and water evaluation 
     for approximately 25 percent of the facilities of each agency 
     that meet the criteria under paragraph (2)(B) in a manner 
     that ensures that an evaluation of each such facility is 
     completed at least once every 4 years.
       ``(B) Recommissioning and retrocommissioning.--As part of 
     the evaluation under subparagraph (A), the energy manager 
     shall identify and assess recommissioning measures (or, if 
     the facility has never been commissioned, retrocommissioning 
     measures) for each such facility.
       ``(4) Implementation of identified energy and water 
     efficiency measures.--Not later than 2 years after the 
     completion of each evaluation under paragraph (3), each 
     energy manager may--
       ``(A) implement any energy- or water-saving measure that 
     the Federal agency identified in the evaluation conducted 
     under paragraph (3) that is life cycle cost-effective; and
       ``(B) bundle individual measures of varying paybacks 
     together into combined projects.
       ``(5) Follow-up on implemented measures.--For each measure 
     implemented under paragraph (4), each energy manager shall 
     ensure that--
       ``(A) equipment, including building and equipment controls, 
     is fully commissioned at acceptance to be operating at design 
     specifications;
       ``(B) a plan for appropriate operations, maintenance, and 
     repair of the equipment is in place at acceptance and is 
     followed;
       ``(C) equipment and system performance is measured during 
     its entire life to ensure proper operations, maintenance, and 
     repair; and
       ``(D) energy and water savings are measured and verified.
       ``(6) Guidelines.--
       ``(A) In general.--The Secretary shall issue guidelines and 
     necessary criteria that each Federal agency shall follow for 
     implementation of--
       ``(i) paragraphs (2) and (3) not later than 180 days after 
     the date of enactment of this subsection; and
       ``(ii) paragraphs (4) and (5) not later than 1 year after 
     the date of enactment of this subsection.
       ``(B) Relationship to funding source.--The guidelines 
     issued by the Secretary under subparagraph (A) shall be 
     appropriate and uniform for measures funded with each type of 
     funding made available under paragraph (10), but may 
     distinguish between different types of measures project size, 
     and other criteria the Secretary determines are relevant.
       ``(7) Web-based certification.--
       ``(A) In general.--For each facility that meets the 
     criteria established by the Secretary under paragraph (2)(B), 
     the energy manager shall use the web-based tracking system 
     under subparagraph (B) to certify compliance with the 
     requirements for--
       ``(i) energy and water evaluations under paragraph (3);
       ``(ii) implementation of identified energy and water 
     measures under paragraph (4); and
       ``(iii) follow-up on implemented measures under paragraph 
     (5).
       ``(B) Deployment.--
       ``(i) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Secretary shall develop and 
     deploy a web-based tracking system required under this 
     paragraph in a manner that tracks, at a minimum--

       ``(I) the covered facilities;
       ``(II) the status of meeting the requirements specified in 
     subparagraph (A);
       ``(III) the estimated cost and savings for measures 
     required to be implemented in a facility;
       ``(IV) the measured savings and persistence of savings for 
     implemented measures; and
       ``(V) the benchmarking information disclosed under 
     paragraph (8)(C).

       ``(ii) Ease of compliance.--The Secretary shall ensure that 
     energy manager compliance with the requirements in this 
     paragraph, to the maximum extent practicable--

       ``(I) can be accomplished with the use of streamlined 
     procedures and templates that minimize the time demands on 
     Federal employees; and
       ``(II) is coordinated with other applicable energy 
     reporting requirements.

       ``(C) Availability.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     shall make the web-based tracking system required under this 
     paragraph available to Congress, other Federal agencies, and 
     the public through the Internet.
       ``(ii) Exemptions.--At the request of a Federal agency, the 
     Secretary may exempt specific data for specific facilities 
     from disclosure under clause (i) for national security 
     purposes.
       ``(8) Benchmarking of federal facilities.--
       ``(A) In general.--The energy manager shall enter energy 
     use data for each metered building that is (or is a part of) 
     a facility that meets the criteria established by the 
     Secretary under paragraph (2)(B) into a building energy use 
     benchmarking system, such as the Energy Star Portfolio 
     Manager.
       ``(B) System and guidance.--Not later than 1 year after the 
     date of enactment of this subsection, the Secretary shall--
       ``(i) select or develop the building energy use 
     benchmarking system required under this paragraph for each 
     type of building; and
       ``(ii) issue guidance for use of the system.
       ``(C) Public disclosure.--Each energy manager shall post 
     the information entered into, or generated by, a benchmarking 
     system under this subsections, on the web-based tracking 
     system under paragraph (7)(B). The energy manager shall 
     update such information each year, and shall include in such 
     reporting previous years' information to allow changes in 
     building performance to be tracked over time.
       ``(9) Federal agency scorecards.--
       ``(A) In general.--The Director of the Office of Management 
     and Budget shall issue semiannual scorecards for energy 
     management activities carried out by each Federal agency that 
     includes--
       ``(i) summaries of the status of implementing the various 
     requirements of the agency and its energy managers under this 
     subsection; and
       ``(ii) any other means of measuring performance that the 
     Director considers appropriate.
       ``(B) Availability.--The Director shall make the scorecards 
     required under this paragraph available to Congress, other 
     Federal agencies, and the public through the Internet.

[[Page 33906]]

       ``(10) Funding and implementation.--
       ``(A) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection.
       ``(B) Funding options.--
       ``(i) In general.--To carry out this subsection, a Federal 
     agency may use any combination of--

       ``(I) appropriated funds made available under subparagraph 
     (A); and
       ``(II) private financing otherwise authorized under Federal 
     law, including financing available through energy savings 
     performance contracts or utility energy service contracts.

       ``(ii) Combined funding for same measure.--A Federal agency 
     may use any combination of appropriated funds and private 
     financing described in clause (i) to carry out the same 
     measure under this subsection.
       ``(C) Implementation.--Each Federal agency may implement 
     the requirements under this subsection itself or may contract 
     out performance of some or all of the requirements.
       ``(11) Rule of construction.--This subsection shall not be 
     construed to require or to obviate any contractor savings 
     guarantees.''.

     SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE 
                   STANDARDS.

       (a) Standards.--Section 305(a)(3) of the Energy 
     Conservation and Production Act (42 U.S.C. 6834(a)(3)) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Not later than 1 year after the date of enactment of 
     the Energy Independence and Security Act of 2007, the 
     Secretary shall establish, by rule, revised Federal building 
     energy efficiency performance standards that require that:
       ``(i) For new Federal buildings and Federal buildings 
     undergoing major renovations, with respect to which the 
     Administrator of General Services is required to transmit a 
     prospectus to Congress under section 3307 of title 40, United 
     States Code, in the case of public buildings (as defined in 
     section 3301 of title 40, United States Code), or of at least 
     $2,500,000 in costs adjusted annually for inflation for other 
     buildings:
       ``(I) The buildings shall be designed so that the fossil 
     fuel-generated energy consumption of the buildings is 
     reduced, as compared with such energy consumption by a 
     similar building in fiscal year 2003 (as measured by 
     Commercial Buildings Energy Consumption Survey or Residential 
     Energy Consumption Survey data from the Energy Information 
     Agency), by the percentage specified in the following table:

 
                                                              Percentage
                       ``Fiscal Year                          Reduction
 
  2010.....................................................           55
  2015.....................................................           65
  2020.....................................................           80
  2025.....................................................           90
  2030.....................................................       100.''

       ``(II) Upon petition by an agency subject to this 
     subparagraph, the Secretary may adjust the applicable numeric 
     requirement under subclause (I) downward with respect to a 
     specific building, if the head of the agency designing the 
     building certifies in writing that meeting such requirement 
     would be technically impracticable in light of the agency's 
     specified functional needs for that building and the 
     Secretary concurs with the agency's conclusion. This 
     subclause shall not apply to the General Services 
     Administration.
       ``(III) Sustainable design principles shall be applied to 
     the siting, design, and construction of such buildings. Not 
     later than 90 days after the date of enactment of the Energy 
     Independence and Security Act of 2007, the Secretary, after 
     reviewing the findings of the Federal Director under section 
     436(h) of that Act, in consultation with the Administrator of 
     General Services, and in consultation with the Secretary of 
     Defense for considerations relating to those facilities under 
     the custody and control of the Department of Defense, shall 
     identify a certification system and level for green buildings 
     that the Secretary determines to be the most likely to 
     encourage a comprehensive and environmentally-sound approach 
     to certification of green buildings. The identification of 
     the certification system and level shall be based on a review 
     of the Federal Director's findings under section 436(h) of 
     the Energy Independence and Security Act of 2007 and the 
     criteria specified in clause (iii), shall identify the 
     highest level the Secretary determines is appropriate above 
     the minimum level required for certification under the system 
     selected, and shall achieve results at least comparable to 
     the system used by and highest level referenced by the 
     General Services Administration as of the date of enactment 
     of the Energy Independence and Security Act of 2007. Within 
     90 days of the completion of each study required by clause 
     (iv), the Secretary, in consultation with the Administrator 
     of General Services, and in consultation with the Secretary 
     of Defense for considerations relating to those facilities 
     under the custody and control of the Department of Defense, 
     shall review and update the certification system and level, 
     taking into account the conclusions of such study.
       ``(ii) In establishing criteria for identifying major 
     renovations that are subject to the requirements of this 
     subparagraph, the Secretary shall take into account the 
     scope, degree, and types of renovations that are likely to 
     provide significant opportunities for substantial 
     improvements in energy efficiency.
       ``(iii) In identifying the green building certification 
     system and level, the Secretary shall take into 
     consideration--
       ``(I) the ability and availability of assessors and 
     auditors to independently verify the criteria and measurement 
     of metrics at the scale necessary to implement this 
     subparagraph;
       ``(II) the ability of the applicable certification 
     organization to collect and reflect public comment;
       ``(III) the ability of the standard to be developed and 
     revised through a consensus-based process;
       ``(IV) an evaluation of the robustness of the criteria for 
     a high-performance green building, which shall give credit 
     for promoting--
       ``(aa) efficient and sustainable use of water, energy, and 
     other natural resources;
       ``(bb) use of renewable energy sources;
       ``(cc) improved indoor environmental quality through 
     enhanced indoor air quality, thermal comfort, acoustics, day 
     lighting, pollutant source control, and use of low-emission 
     materials and building system controls; and
       ``(dd) such other criteria as the Secretary determines to 
     be appropriate; and
       ``(V) national recognition within the building industry.
       ``(iv) At least once every five years, and in accordance 
     with section 436 of the Energy Independence and Security Act 
     of 2007, the Administrator of General Services shall conduct 
     a study to evaluate and compare available third-party green 
     building certification systems and levels, taking into 
     account the criteria listed in clause (iii).
       ``(v) The Secretary may by rule allow Federal agencies to 
     develop internal certification processes, using certified 
     professionals, in lieu of certification by the certification 
     entity identified under clause (i)(III). The Secretary shall 
     include in any such rule guidelines to ensure that the 
     certification process results in buildings meeting the 
     applicable certification system and level identified under 
     clause (i)(III). An agency employing an internal 
     certification process must continue to obtain external 
     certification by the certification entity identified under 
     clause (i)(III) for at least 5 percent of the total number of 
     buildings certified annually by the agency.
       ``(vi) With respect to privatized military housing, the 
     Secretary of Defense, after consultation with the Secretary 
     may, through rulemaking, develop alternative criteria to 
     those established by subclauses (I) and (III) of clause (i) 
     that achieve an equivalent result in terms of energy savings, 
     sustainable design, and green building performance.
       ``(vii) In addition to any use of water conservation 
     technologies otherwise required by this section, water 
     conservation technologies shall be applied to the extent that 
     the technologies are life-cycle cost-effective.''.
       (b) Definitions.--Section 303(6) of the Energy Conservation 
     and Production Act (42 U.S.C. 6832(6)) is amended by striking 
     ``which is not legally subject to State or local building 
     codes or similar requirements.'' and inserting ``. Such term 
     shall include buildings built for the purpose of being leased 
     by a Federal agency, and privatized military housing.''.
       (c) Revision of Federal Acquisition Regulation.--Not later 
     than 2 years after the date of the enactment of this Act, the 
     Federal Acquisition Regulation shall be revised to require 
     Federal officers and employees to comply with this section 
     and the amendments made by this section in the acquisition, 
     construction, or major renovation of any facility. The 
     members of the Federal Acquisition Regulatory Council 
     (established under section 25 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 421)) shall consult with 
     the Federal Director and the Commercial Director before 
     promulgating regulations to carry out this subsection.
       (d) Guidance.--Not later than 90 days after the date of 
     promulgation of the revised regulations under subsection (c), 
     the Administrator for Federal Procurement Policy shall issue 
     guidance to all Federal procurement executives providing 
     direction and instructions to renegotiate the design of 
     proposed facilities and major renovations for existing 
     facilities to incorporate improvements that are consistent 
     with this section.

     SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY.

       (a) Large Capital Energy Investments.--Section 543 of the 
     National Energy Conservation Policy Act (42 U.S.C. 8253) is 
     amended by adding at the end the following:
       ``(f) Large Capital Energy Investments.--
       ``(1) In general.--Each Federal agency shall ensure that 
     any large capital energy investment in an existing building 
     that is not a major renovation but involves replacement of 
     installed equipment (such as heating and cooling systems), or 
     involves renovation, rehabilitation, expansion, or remodeling 
     of existing space, employs the most energy efficient designs, 
     systems, equipment, and controls that are life-cycle cost 
     effective.

[[Page 33907]]

       ``(2) Process for review of investment decisions.--Not 
     later than 180 days after the date of enactment of this 
     subsection, each Federal agency shall--
       ``(A) develop a process for reviewing each decision made on 
     a large capital energy investment described in paragraph (1) 
     to ensure that the requirements of this subsection are met; 
     and
       ``(B) report to the Director of the Office of Management 
     and Budget on the process established.
       ``(3) Compliance report.--Not later than 1 year after the 
     date of enactment of this subsection, the Director of the 
     Office of Management and Budget shall evaluate and report to 
     Congress on the compliance of each agency with this 
     subsection.''.
       (b) Metering.--Section 543(e)(1) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8253(e)(1)) is amended by 
     inserting after the second sentence the following: ``Not 
     later than October 1, 2016, each agency shall provide for 
     equivalent metering of natural gas and steam, in accordance 
     with guidelines established by the Secretary under paragraph 
     (2).''.

     SEC. 435. LEASING.

       (a) In General.--Except as provided in subsection (b), 
     effective beginning on the date that is 3 years after the 
     date of enactment of this Act, no Federal agency shall enter 
     into a contract to lease space in a building that has not 
     earned the Energy Star label in the most recent year.
       (b) Exception.--
       (1) Application.--This subsection applies if--
       (A) no space is available in a building described in 
     subsection (a) that meets the functional requirements of an 
     agency, including locational needs;
       (B) the agency proposes to remain in a building that the 
     agency has occupied previously;
       (C) the agency proposes to lease a building of historical, 
     architectural, or cultural significance (as defined in 
     section 3306(a)(4) of title 40, United States Code) or space 
     in such a building; or
       (D) the lease is for not more than 10,000 gross square feet 
     of space.
       (2) Buildings without energy star label.--If 1 of the 
     conditions described in paragraph (2) is met, the agency may 
     enter into a contract to lease space in a building that has 
     not earned the Energy Star label in the most recent year if 
     the lease contract includes provisions requiring that, prior 
     to occupancy or, in the case of a contract described in 
     paragraph (1)(B), not later than 1 year after signing the 
     contract, the space will be renovated for all energy 
     efficiency and conservation improvements that would be cost 
     effective over the life of the lease, including improvements 
     in lighting, windows, and heating, ventilation, and air 
     conditioning systems.
       (c) Revision of Federal Acquisition Regulation.--
       (1) In general.--Not later than 3 years after the date of 
     the enactment of this Act, the Federal Acquisition Regulation 
     described in section 6(a) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 405(a)) shall be revised to 
     require Federal officers and employees to comply with this 
     section in leasing buildings.
       (2) Consultation.--The members of the Federal Acquisition 
     Regulatory Council established under section 25 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 421)) shall 
     consult with the Federal Director and the Commercial Director 
     before promulgating regulations to carry out this subsection.

     SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.

       (a) Establishment of Office.--Not later than 60 days after 
     the date of enactment of this Act, the Administrator shall 
     establish within the General Services Administration an 
     Office of Federal High-Performance Green Buildings, and 
     appoint an individual to serve as Federal Director in, a 
     position in the career-reserved Senior Executive service, 
     to--
       (1) establish and manage the Office of Federal High-
     Performance Green Buildings; and
       (2) carry out other duties as required under this subtitle.
       (b) Compensation.--The compensation of the Federal Director 
     shall not exceed the maximum rate of basic pay for the Senior 
     Executive Service under section 5382 of title 5, United 
     States Code, including any applicable locality-based 
     comparability payment that may be authorized under section 
     5304(h)(2)(C) of that title.
       (c) Duties.--The Federal Director shall--
       (1) coordinate the activities of the Office of Federal 
     High-Performance Green Buildings with the activities of the 
     Office of Commercial High-Performance Green Buildings, and 
     the Secretary, in accordance with section 305(a)(3)(D) of the 
     Energy Conservation and Production Act (42 U.S.C. 
     6834(a)(3)(D));
       (2) ensure full coordination of high-performance green 
     building information and activities within the General 
     Services Administration and all relevant agencies, including, 
     at a minimum--
       (A) the Environmental Protection Agency;
       (B) the Office of the Federal Environmental Executive;
       (C) the Office of Federal Procurement Policy;
       (D) the Department of Energy;
       (E) the Department of Health and Human Services;
       (F) the Department of Defense;
       (G) the Department of Transportation;
       (H) the National Institute of Standards and Technology; and
       (I) the Office of Science and Technology Policy;
       (3) establish a senior-level Federal Green Building 
     Advisory Committee under section 474, which shall provide 
     advice and recommendations in accordance with that section 
     and subsection (d);
       (4) identify and every 5 years reassess improved or higher 
     rating standards recommended by the Advisory Committee;
       (5) ensure full coordination, dissemination of information 
     regarding, and promotion of the results of research and 
     development information relating to Federal high-performance 
     green building initiatives;
       (6) identify and develop Federal high-performance green 
     building standards for all types of Federal facilities, 
     consistent with the requirements of this subtitle and section 
     305(a)(3)(D) of the Energy Conservation and Production Act 
     (42 U.S.C. 6834(a)(3)(D));
       (7) establish green practices that can be used throughout 
     the life of a Federal facility;
       (8) review and analyze current Federal budget practices and 
     life-cycle costing issues, and make recommendations to 
     Congress, in accordance with subsection (d); and
       (9) identify opportunities to demonstrate innovative and 
     emerging green building technologies and concepts.
       (d) Additional Duties.--The Federal Director, in 
     consultation with the Commercial Director and the Advisory 
     Committee, and consistent with the requirements of section 
     305(a)(3)(D) of the Energy Conservation and Production Act 
     (42 U.S.C. 6834(a)(3)(D)) shall--
       (1) identify, review, and analyze current budget and 
     contracting practices that affect achievement of high-
     performance green buildings, including the identification of 
     barriers to high-performance green building life-cycle 
     costing and budgetary issues;
       (2) develop guidance and conduct training sessions with 
     budget specialists and contracting personnel from Federal 
     agencies and budget examiners to apply life-cycle cost 
     criteria to actual projects;
       (3) identify tools to aid life-cycle cost decisionmaking; 
     and
       (4) explore the feasibility of incorporating the benefits 
     of high-performance green buildings, such as security 
     benefits, into a cost-budget analysis to aid in life-cycle 
     costing for budget and decisionmaking processes.
       (e) Incentives.--Within 90 days after the date of enactment 
     of this Act, the Federal Director shall identify incentives 
     to encourage the expedited use of high-performance green 
     buildings and related technology in the operations of the 
     Federal Government, in accordance with the requirements of 
     section 305(a)(3)(D) of the Energy Conservation and 
     Production Act (42 U.S.C. 6834(a)(3)(D)), including through--
       (1) the provision of recognition awards; and
       (2) the maximum feasible retention of financial savings in 
     the annual budgets of Federal agencies for use in reinvesting 
     in future high-performance green building initiatives.
       (f) Report.--Not later than 2 years after the date of 
     enactment of this Act, and biennially thereafter, the Federal 
     Director, in consultation with the Secretary, shall submit to 
     Congress a report that--
       (1) describes the status of compliance with this subtitle, 
     the requirements of section 305(a)(3)(D) of the Energy 
     Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), 
     and other Federal high-performance green building initiatives 
     in effect as of the date of the report, including--
       (A) the extent to which the programs are being carried out 
     in accordance with this subtitle and the requirements of 
     section 305(a)(3)(D) of that Act; and
       (B) the status of funding requests and appropriations for 
     those programs;
       (2) identifies within the planning, budgeting, and 
     construction process all types of Federal facility procedures 
     that may affect the certification of new and existing Federal 
     facilities as high-performance green buildings under the 
     provisions of section 305(a)(3)(D) of that Act and the 
     criteria established in subsection (h);
       (3) identifies inconsistencies, as reported to the Advisory 
     Committee, in Federal law with respect to product acquisition 
     guidelines and high-performance product guidelines;
       (4) recommends language for uniform standards for use by 
     Federal agencies in environmentally responsible acquisition;
       (5) in coordination with the Office of Management and 
     Budget, reviews the budget process for capital programs with 
     respect to alternatives for--
       (A) restructuring of budgets to require the use of complete 
     energy and environmental cost accounting;
       (B) using operations expenditures in budget-related 
     decisions while simultaneously incorporating productivity and 
     health measures (as those measures can be quantified by the 
     Office of Federal High-Performance Green Buildings, with the 
     assistance of universities and national laboratories);

[[Page 33908]]

       (C) streamlining measures for permitting Federal agencies 
     to retain all identified savings accrued as a result of the 
     use of life-cycle costing for future high-performance green 
     building initiatives; and
       (D) identifying short-term and long-term cost savings that 
     accrue from high-performance green buildings, including those 
     relating to health and productivity;
       (6) identifies green, self-sustaining technologies to 
     address the operational needs of Federal facilities in times 
     of national security emergencies, natural disasters, or other 
     dire emergencies;
       (7) summarizes and highlights development, at the State and 
     local level, of high-performance green building initiatives, 
     including executive orders, policies, or laws adopted 
     promoting high-performance green building (including the 
     status of implementation of those initiatives); and
       (8) includes, for the 2-year period covered by the report, 
     recommendations to address each of the matters, and a plan 
     for implementation of each recommendation, described in 
     paragraphs (1) through (7).
       (g) Implementation.--The Office of Federal High-Performance 
     Green Buildings shall carry out each plan for implementation 
     of recommendations under subsection (f)(8).
       (h) Identification of Certification System.--
       (1) In general.--For the purpose of this section, not later 
     than 60 days after the date of enactment of this Act, the 
     Federal Director shall identify and shall provide to the 
     Secretary pursuant to section 305(a)(3)(D) of the Energy 
     Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), a 
     certification system that the Director determines to be the 
     most likely to encourage a comprehensive and environmentally-
     sound approach to certification of green buildings.
       (2) Basis.--The system identified under paragraph (1) shall 
     be based on--
       (A) a study completed every 5 years and provided to the 
     Secretary pursuant to section 305(a)(3)(D) of that Act, which 
     shall be carried out by the Federal Director to compare and 
     evaluate standards;
       (B) the ability and availability of assessors and auditors 
     to independently verify the criteria and measurement of 
     metrics at the scale necessary to implement this subtitle;
       (C) the ability of the applicable standard-setting 
     organization to collect and reflect public comment;
       (D) the ability of the standard to be developed and revised 
     through a consensus-based process;
       (E) an evaluation of the robustness of the criteria for a 
     high performance green building, which shall give credit for 
     promoting--
       (i) efficient and sustainable use of water, energy, and 
     other natural resources;
       (ii) use of renewable energy sources;
       (iii) improved indoor environmental quality through 
     enhanced indoor air quality, thermal comfort, acoustics, day 
     lighting, pollutant source control, and use of low-emission 
     materials and building system controls;
       (iv) reduced impacts from transportation through building 
     location and site design that promote access by public 
     transportation; and
       (v) such other criteria as the Federal Director determines 
     to be appropriate; and
       (F) national recognition within the building industry.

     SEC. 437. FEDERAL GREEN BUILDING PERFORMANCE.

       (a) In General.--Not later than October 31 of each of the 2 
     fiscal years following the fiscal year in which this Act is 
     enacted, and at such times thereafter as the Comptroller 
     General of the United States determines to be appropriate, 
     the Comptroller General of the United States shall, with 
     respect to the fiscal years that have passed since the 
     preceding report--
       (1) conduct an audit of the implementation of this 
     subtitle, section 305(a)(3)(D) of the Energy Conservation and 
     Production Act (42 U.S.C. 6834(a)(3)(D)), and section 435; 
     and
       (2) submit to the Federal Director, the Advisory Committee, 
     the Administrator, and Congress a report describing the 
     results of the audit.
       (b) Contents.--An audit under subsection (a) shall include 
     a review, with respect to the period covered by the report 
     under subsection (a)(2), of--
       (1) budget, life-cycle costing, and contracting issues, 
     using best practices identified by the Comptroller General of 
     the United States and heads of other agencies in accordance 
     with section 436(d);
       (2) the level of coordination among the Federal Director, 
     the Office of Management and Budget, the Department of 
     Energy, and relevant agencies;
       (3) the performance of the Federal Director and other 
     agencies in carrying out the implementation plan;
       (4) the design stage of high-performance green building 
     measures;
       (5) high-performance building data that were collected and 
     reported to the Office; and
       (6) such other matters as the Comptroller General of the 
     United States determines to be appropriate.
       (c) Environmental Stewardship Scorecard.--The Federal 
     Director shall consult with the Advisory Committee to 
     enhance, and assist in the implementation of, the Office of 
     Management and Budget government efficiency reports and 
     scorecards under section 528 and the Environmental 
     Stewardship Scorecard announced at the White House summit on 
     Federal sustainable buildings in January 2006, to measure the 
     implementation by each Federal agency of sustainable design 
     and green building initiatives.

     SEC. 438. STORM WATER RUNOFF REQUIREMENTS FOR FEDERAL 
                   DEVELOPMENT PROJECTS.

       The sponsor of any development or redevelopment project 
     involving a Federal facility with a footprint that exceeds 
     5,000 square feet shall use site planning, design, 
     construction, and maintenance strategies for the property to 
     maintain or restore, to the maximum extent technically 
     feasible, the predevelopment hydrology of the property with 
     regard to the temperature, rate, volume, and duration of 
     flow.

     SEC. 439. COST-EFFECTIVE TECHNOLOGY ACCELERATION PROGRAM.

       (a) Definition of Administrator.--In this section, the term 
     ``Administrator'' means the Administrator of General 
     Services.
       (b) Establishment.--
       (1) In general.--The Administrator shall establish a 
     program to accelerate the use of more cost-effective 
     technologies and practices at GSA facilities.
       (2) Requirements.--The program established under this 
     subsection shall--
       (A) ensure centralized responsibility for the coordination 
     of cost reduction-related recommendations, practices, and 
     activities of all relevant Federal agencies;
       (B) provide technical assistance and operational guidance 
     to applicable tenants to achieve the goal identified in 
     subsection (c)(2)(B)(ii);
       (C) establish methods to track the success of Federal 
     departments and agencies with respect to that goal; and
       (D) be fully coordinated with and no less stringent nor 
     less energy-conserving or water-conserving than required by 
     other provisions of this Act and other applicable law, 
     including sections 321 through 324, 431 through 438, 461, 511 
     through 518, and 523 through 525 and amendments made by those 
     sections.
       (c) Accelerated Use of Technologies.--
       (1) Review.--
       (A) In general.--As part of the program under this section, 
     not later than 90 days after the date of enactment of this 
     Act, the Administrator shall conduct a review of--
       (i) current use of cost-effective lighting technologies and 
     geothermal heat pumps in GSA facilities; and
       (ii) the availability to managers of GSA facilities of 
     cost-effective lighting technologies and geothermal heat 
     pumps.
       (B) Requirements.--The review under subparagraph (A) 
     shall--
       (i) examine the use of cost-effective lighting 
     technologies, geothermal heat pumps, and other cost-effective 
     technologies and practices by Federal agencies in GSA 
     facilities; and
       (ii) as prepared in consultation with the Administrator of 
     the Environmental Protection Agency, identify cost-effective 
     lighting technology and geothermal heat pump technology 
     standards that could be used for all types of GSA facilities.
       (2) Replacement.--
       (A) In general.--As part of the program under this section, 
     not later than 180 days after the date of enactment of this 
     Act, the Administrator shall establish, using available 
     appropriations and programs implementing sections 432 and 525 
     (and amendments made by those sections), a cost-effective 
     lighting technology and geothermal heat pump technology 
     acceleration program to achieve maximum feasible replacement 
     of existing lighting, heating, cooling technologies with 
     cost-effective lighting technologies and geothermal heat pump 
     technologies in each GSA facility. Such program shall fully 
     comply with the requirements of sections 321 through 324, 431 
     through 438, 461, 511 through 518, and 523 through 525 and 
     amendments made by those sections and any other provisions of 
     law, which shall be applicable to the extent that they are 
     more stringent or would achieve greater energy savings than 
     required by this section.
       (B) Acceleration plan timetable.--
       (i) In general.--To implement the program established under 
     subparagraph (A), not later than 1 year after the date of 
     enactment of this Act, the Administrator shall establish a 
     timetable of actions to comply with the requirements of this 
     section and sections 431 through 435, whichever achieves 
     greater energy savings most expeditiously, including 
     milestones for specific activities needed to replace existing 
     lighting, heating, cooling technologies with cost-effective 
     lighting technologies and geothermal heat pump technologies, 
     to the maximum extent feasible (including at the maximum rate 
     feasible), at each GSA facility.
       (ii) Goal.--The goal of the timetable under clause (i) 
     shall be to complete, using available appropriations and 
     programs implementing sections 431 through 435 (and 
     amendments made by those sections), maximum feasible 
     replacement of existing lighting, heating, and cooling 
     technologies with cost-effective lighting technologies and 
     geothermal heat pump technologies consistent

[[Page 33909]]

     with the requirements of this section and sections 431 
     through 435, whichever achieves greater energy savings most 
     expeditiously. Notwithstanding any provision of this section, 
     such program shall fully comply with the requirements of the 
     Act including sections 321 through 324, 431 through 438, 461, 
     511 through 518, and 523 through 525 and amendments made by 
     those sections and other provisions of law, which shall be 
     applicable to the extent that they are more stringent or 
     would achieve greater energy or water savings than required 
     by this section.
       (d) GSA Facility Technologies and Practices.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, and annually thereafter, the 
     Administrator shall--
       (A) ensure that a manager responsible for implementing 
     section 432 and for accelerating the use of cost-effective 
     technologies and practices is designated for each GSA 
     facility; and
       (B) submit to Congress a plan to comply with section 432, 
     this section, and other applicable provisions of this Act and 
     applicable law with respect to energy and water conservation 
     at GSA facilities.
       (2) Measures.--The plan shall implement measures required 
     by such other provisions of law in accordance with those 
     provisions, and shall implement the measures required by this 
     section to the maximum extent feasible (including at the 
     maximum rate feasible) using available appropriations and 
     programs implementing sections 431 through 435 and 525 (and 
     amendments made by those sections), by not later than the 
     date that is 5 years after the date of enactment of this Act.
       (3) Contents of plan.--The plan shall--
       (A) with respect to cost-effective technologies and 
     practices--
       (i) identify the specific activities needed to comply with 
     sections 431 through 435;
       (ii) identify the specific activities needed to achieve at 
     least a 20-percent reduction in operational costs through the 
     application of cost-effective technologies and practices from 
     2003 levels at GSA facilities by not later than 5 years after 
     the date of enactment of this Act;
       (iii) describe activities required and carried out to 
     estimate the funds necessary to achieve the reduction 
     described in clauses (i) and (ii);
       (B) include an estimate of the funds necessary to carry out 
     this section;
       (C) describe the status of the implementation of cost-
     effective technologies and practices at GSA facilities, 
     including--
       (i) the extent to which programs, including the program 
     established under subsection (b), are being carried out in 
     accordance with this subtitle; and
       (ii) the status of funding requests and appropriations for 
     those programs;
       (D) identify within the planning, budgeting, and 
     construction processes, all types of GSA facility-related 
     procedures that inhibit new and existing GSA facilities from 
     implementing cost-effective technologies;
       (E) recommend language for uniform standards for use by 
     Federal agencies in implementing cost-effective technologies 
     and practices;
       (F) in coordination with the Office of Management and 
     Budget, review the budget process for capital programs with 
     respect to alternatives for--
       (i) implementing measures that will assure that Federal 
     agencies retain all identified savings accrued as a result of 
     the use of cost-effective technologies, consistent with 
     section 543(a)(1) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8253(a)(1), and other applicable law; and
       (ii) identifying short- and long-term cost savings that 
     accrue from the use of cost-effective technologies and 
     practices;
       (G) with respect to cost-effective technologies and 
     practices, achieve substantial operational cost savings 
     through the application of the technologies; and
       (H) include recommendations to address each of the matters, 
     and a plan for implementation of each recommendation, 
     described in subparagraphs (A) through (G).
       (4) Administration.--Notwithstanding any provision of this 
     section, the program required under this section shall fully 
     comply with the requirements of sections 321 through 324, 431 
     through 438, 461, 511 through 518, and 523 through 525 and 
     amendments made by those sections, which shall be applicable 
     to the extent that they are more stringent or would achieve 
     greater energy or water savings than required by this 
     section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section, to remain available until expended.

     SEC. 440. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out 
     sections 434 through 439 and 482 $4,000,000 for each of 
     fiscal years 2008 through 2012, to remain available until 
     expended.

     SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.

       Section 544(a)(1) of the National Energy Conservation 
     Policy Act (42 U.S.C. 8254(a)(1)) is amended by striking 
     ``25'' and inserting ``40''.

                Subtitle D--Industrial Energy Efficiency

     SEC. 451. INDUSTRIAL ENERGY EFFICIENCY.

       (a) In General.--Title III of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291 et seq.) is amended by 
     inserting after part D the following:

                 ``PART E--INDUSTRIAL ENERGY EFFICIENCY

     ``SEC. 371. DEFINITIONS.

       ``In this part:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Combined heat and power.--The term `combined heat and 
     power system' means a facility that--
       ``(A) simultaneously and efficiently produces useful 
     thermal energy and electricity; and
       ``(B) recovers not less than 60 percent of the energy value 
     in the fuel (on a higher-heating-value basis) in the form of 
     useful thermal energy and electricity.
       ``(3) Net excess power.--The term `net excess power' means, 
     for any facility, recoverable waste energy recovered in the 
     form of electricity in quantities exceeding the total 
     consumption of electricity at the specific time of generation 
     on the site at which the facility is located.
       ``(4) Project.--The term `project' means a recoverable 
     waste energy project or a combined heat and power system 
     project.
       ``(5) Recoverable waste energy.--The term `recoverable 
     waste energy' means waste energy from which electricity or 
     useful thermal energy may be recovered through modification 
     of an existing facility or addition of a new facility.
       ``(6) Registry.--The term `Registry' means the Registry of 
     Recoverable Waste Energy Sources established under section 
     372(d).
       ``(7) Useful thermal energy.--The term `useful thermal 
     energy' means energy--
       ``(A) in the form of direct heat, steam, hot water, or 
     other thermal form that is used in production and beneficial 
     measures for heating, cooling, humidity control, process use, 
     or other valid thermal end-use energy requirements; and
       ``(B) for which fuel or electricity would otherwise be 
     consumed.
       ``(8) Waste energy.--The term `waste energy' means--
       ``(A) exhaust heat or flared gas from any industrial 
     process;
       ``(B) waste gas or industrial tail gas that would otherwise 
     be flared, incinerated, or vented;
       ``(C) a pressure drop in any gas, excluding any pressure 
     drop to a condenser that subsequently vents the resulting 
     heat; and
       ``(D) such other forms of waste energy as the Administrator 
     may determine.
       ``(9) Other terms.--The terms `electric utility', 
     `nonregulated electric utility', `State regulated electric 
     utility', and other terms have the meanings given those terms 
     in title I of the Public Utility Regulatory Policies Act of 
     1978 (16 U.S.C. 2611 et seq.).

     ``SEC. 372. SURVEY AND REGISTRY.

       ``(a) Recoverable Waste Energy Inventory Program.--
       ``(1) In general.--The Administrator, in cooperation with 
     the Secretary and State energy offices, shall establish a 
     recoverable waste energy inventory program.
       ``(2) Survey.--The program shall include--
       ``(A) an ongoing survey of all major industrial and large 
     commercial combustion sources in the United States (as 
     defined by the Administrator) and the sites at which the 
     sources are located; and
       ``(B) a review of each source for the quantity and quality 
     of waste energy produced at the source.
       ``(b) Criteria.--
       ``(1) In general.--Not later than 270 days after the date 
     of enactment of the Energy Independence and Security Act of 
     2007, the Administrator shall publish a rule for establishing 
     criteria for including sites in the Registry.
       ``(2) Inclusions.--The criteria shall include--
       ``(A) a requirement that, to be included in the Registry, a 
     project at the site shall be determined to be economically 
     feasible by virtue of offering a payback of invested costs 
     not later than 5 years after the date of first full project 
     operation (including incentives offered under this part);
       ``(B) standards to ensure that projects proposed for 
     inclusion in the Registry are not developed or used for the 
     primary purpose of making sales of excess electric power 
     under the regulatory provisions of this part; and
       ``(C) procedures for contesting the listing of any source 
     or site on the Registry by any State, utility, or other 
     interested person.
       ``(c) Technical Support.--On the request of the owner or 
     operator of a source or site included in the Registry, the 
     Secretary shall--
       ``(1) provide to owners or operators of combustion sources 
     technical support; and
       ``(2) offer partial funding (in an amount equal to not more 
     than \1/2\ of total costs) for feasibility studies to confirm 
     whether or not investment in recovery of waste energy or 
     combined heat and power at a source would offer a payback 
     period of 5 years or less.
       ``(d) Registry.--
       ``(1) Establishment.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the Energy Independence and Security Act of 
     2007, the Administrator shall establish a Registry of

[[Page 33910]]

     Recoverable Waste Energy Sources, and sites on which the 
     sources are located, that meet the criteria established under 
     subsection (b).
       ``(B) Updates; availability.--The Administrator shall--
       ``(i) update the Registry on a regular basis; and
       ``(ii) make the Registry available to the public on the 
     website of the Environmental Protection Agency.
       ``(C) Contesting listing.--Any State, electric utility, or 
     other interested person may contest the listing of any source 
     or site by submitting a petition to the Administrator.
       ``(2) Contents.--
       ``(A) In general.--The Administrator shall register and 
     include on the Registry all sites meeting the criteria 
     established under subsection (b).
       ``(B) Quantity of recoverable waste energy.--The 
     Administrator shall--
       ``(i) calculate the total quantities of potentially 
     recoverable waste energy from sources at the sites, 
     nationally and by State; and
       ``(ii) make public--

       ``(I) the total quantities described in clause (i); and
       ``(II) information on the criteria pollutant and greenhouse 
     gas emissions savings that might be achieved with recovery of 
     the waste energy from all sources and sites listed on the 
     Registry.

       ``(3) Availability of information.--
       ``(A) In general.--The Administrator shall notify owners or 
     operators of recoverable waste energy sources and sites 
     listed on the Registry prior to publishing the listing.
       ``(B) Detailed quantitative information.--
       ``(i) In general.--Except as provided in clause (ii), the 
     owner or operator of a source at a site may elect to have 
     detailed quantitative information concerning the site not 
     made public by notifying the Administrator of the election.
       ``(ii) Limited availability.--The information shall be made 
     available to--

       ``(I) the applicable State energy office; and
       ``(II) any utility requested to support recovery of waste 
     energy from the source pursuant to the incentives provided 
     under section 374.

       ``(iii) State totals.--Information concerning the site 
     shall be included in the total quantity of recoverable waste 
     energy for a State unless there are fewer than 3 sites in the 
     State.
       ``(4) Removal of projects from registry.--
       ``(A) In general.--Subject to subparagraph (B), as a 
     project achieves successful recovery of waste energy, the 
     Administrator shall--
       ``(i) remove the related sites or sources from the 
     Registry; and
       ``(ii) designate the removed projects as eligible for 
     incentives under section 374.
       ``(B) Limitation.--No project shall be removed from the 
     Registry without the consent of the owner or operator of the 
     project if--
       ``(i) the owner or operator has submitted a petition under 
     section 374; and
       ``(ii) the petition has not been acted on or denied.
       ``(5) Ineligibility of certain sources.--The Administrator 
     shall not list any source constructed after the date of the 
     enactment of the Energy Independence and Security Act of 2007 
     on the Registry if the Administrator determines that the 
     source--
       ``(A) was developed for the primary purpose of making sales 
     of excess electric power under the regulatory provisions of 
     this part; or
       ``(B) does not capture at least 60 percent of the total 
     energy value of the fuels used (on a higher-heating-value 
     basis) in the form of useful thermal energy, electricity, 
     mechanical energy, chemical output, or any combination 
     thereof.
       ``(e) Self-Certification.--
       ``(1) In general.--Subject to any procedures that are 
     established by the Administrator, an owner, operator, or 
     third-party developer of a recoverable waste energy project 
     that qualifies under standards established by the 
     Administrator may self-certify the sites or sources of the 
     owner, operator, or developer to the Administrator for 
     inclusion in the Registry.
       ``(2) Review and approval.--To prevent a fraudulent 
     listing, a site or source shall be included on the Registry 
     only if the Administrator reviews and approves the self-
     certification.
       ``(f) New Facilities.--As a new energy-consuming industrial 
     facility is developed after the date of enactment of the 
     Energy Independence and Security Act of 2007, to the extent 
     the facility may constitute a site with recoverable waste 
     energy that may qualify for inclusion on the Registry, the 
     Administrator may elect to include the facility on the 
     Registry, at the request of the owner, operator, or developer 
     of the facility, on a conditional basis with the site to be 
     removed from the Registry if the development ceases or the 
     site fails to qualify for listing under this part.
       ``(g) Optimum Means of Recovery.--For each site listed in 
     the Registry, at the request of the owner or operator of the 
     site, the Administrator shall offer, in cooperation with 
     Clean Energy Application Centers operated by the Secretary of 
     Energy, suggestions for optimum means of recovery of value 
     from waste energy stream in the form of electricity, useful 
     thermal energy, or other energy-related products.
       ``(h) Revision.--Each annual report of a State under 
     section 548(a) of the National Energy Conservation Policy Act 
     (42 U.S.C. 8258(a)) shall include the results of the survey 
     for the State under this section.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to--
       ``(1) the Administrator to create and maintain the Registry 
     and services authorized by this section, $1,000,000 for each 
     of fiscal years 2008 through 2012; and
       ``(2) the Secretary--
       ``(A) to assist site or source owners and operators in 
     determining the feasibility of projects authorized by this 
     section, $2,000,000 for each of fiscal years 2008 through 
     2012; and
       ``(B) to provide funding for State energy office functions 
     under this section, $5,000,000.

     ``SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM.

       ``(a) Establishment.--The Secretary shall establish in the 
     Department of Energy a waste energy recovery incentive grant 
     program to provide incentive grants to--
       ``(1) owners and operators of projects that successfully 
     produce electricity or incremental useful thermal energy from 
     waste energy recovery;
       ``(2) utilities purchasing or distributing the electricity; 
     and
       ``(3) States that have achieved 80 percent or more of 
     recoverable waste heat recovery opportunities.
       ``(b) Grants to Projects and Utilities.--
       ``(1) In general.--The Secretary shall make grants under 
     this section--
       ``(A) to the owners or operators of waste energy recovery 
     projects; and
       ``(B) in the case of excess power purchased or transmitted 
     by a electric utility, to the utility.
       ``(2) Proof.--Grants may only be made under this section on 
     receipt of proof of waste energy recovery or excess 
     electricity generation, or both, from the project in a form 
     prescribed by the Secretary.
       ``(3) Excess electric energy.--
       ``(A) In general.--In the case of waste energy recovery, a 
     grant under this section shall be made at the rate of $10 per 
     megawatt hour of documented electricity produced from 
     recoverable waste energy (or by prevention of waste energy in 
     the case of a new facility) by the project during the first 3 
     calendar years of production, beginning on or after the date 
     of enactment of the Energy Independence and Security Act of 
     2007.
       ``(B) Utilities.--If the project produces net excess power 
     and an electric utility purchases or transmits the excess 
     power, 50 percent of so much of the grant as is attributable 
     to the net excess power shall be paid to the electric utility 
     purchasing or transporting the net excess power.
       ``(4) Useful thermal energy.--In the case of waste energy 
     recovery that produces useful thermal energy that is used for 
     a purpose different from that for which the project is 
     principally designed, a grant under this section shall be 
     made to the owner or operator of the waste energy recovery 
     project at the rate of $10 for each 3,412,000 Btus of the 
     excess thermal energy used for the different purpose.
       ``(c) Grants to States.--In the case of any State that has 
     achieved 80 percent or more of waste heat recovery 
     opportunities identified by the Secretary under this part, 
     the Administrator shall make a 1-time grant to the State in 
     an amount of not more than $1,000 per megawatt of waste-heat 
     capacity recovered (or a thermal equivalent) to support 
     State-level programs to identify and achieve additional 
     energy efficiency.
       ``(d) Eligibility.--The Secretary shall--
       ``(1) establish rules and guidelines to establish 
     eligibility for grants under subsection (b);
       ``(2) publicize the availability of the grant program known 
     to owners or operators of recoverable waste energy sources 
     and sites listed on the Registry; and
       ``(3) award grants under the program on the basis of the 
     merits of each project in recovering or preventing waste 
     energy throughout the United States on an impartial, 
     objective, and not unduly discriminatory basis.
       ``(e) Limitation.--The Secretary shall not award grants to 
     any person for a combined heat and power project or a waste 
     heat recovery project that qualifies for specific Federal tax 
     incentives for combined heat and power or for waste heat 
     recovery.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary--
       ``(1) to make grants to projects and utilities under 
     subsection (b)--
       ``(A) $100,000,000 for fiscal year 2008 and $200,000,000 
     for each of fiscal years 2009 through 2012; and
       ``(B) such additional amounts for fiscal year 2008 and each 
     fiscal year thereafter as may be necessary for administration 
     of the waste energy recovery incentive grant program; and
       ``(2) to make grants to States under subsection (b), 
     $10,000,000 for each of fiscal years 2008 through 2012, to 
     remain available until expended.

     ``SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE, AND 
                   PREVENTION OF INDUSTRIAL WASTE ENERGY.

       ``(a) Consideration of Standard.--

[[Page 33911]]

       ``(1) In general.--Not later than 180 days after the 
     receipt by a State regulatory authority (with respect to each 
     electric utility for which the authority has ratemaking 
     authority), or nonregulated electric utility, of a request 
     from a project sponsor or owner or operator, the State 
     regulatory authority or nonregulated electric utility shall--
       ``(A) provide public notice and conduct a hearing 
     respecting the standard established by subsection (b); and
       ``(B) on the basis of the hearing, consider and make a 
     determination whether or not it is appropriate to implement 
     the standard to carry out the purposes of this part.
       ``(2) Relationship to state law.--For purposes of any 
     determination under paragraph (1) and any review of the 
     determination in any court, the purposes of this section 
     supplement otherwise applicable State law.
       ``(3) Nonadoption of standard.--Nothing in this part 
     prohibits any State regulatory authority or nonregulated 
     electric utility from making any determination that it is not 
     appropriate to adopt any standard described in paragraph (1), 
     pursuant to authority under otherwise applicable State law.
       ``(b) Standard for Sales of Excess Power.--For purposes of 
     this section, the standard referred to in subsection (a) 
     shall provide that an owner or operator of a waste energy 
     recovery project identified on the Registry that generates 
     net excess power shall be eligible to benefit from at least 1 
     of the options described in subsection (c) for disposal of 
     the net excess power in accordance with the rate conditions 
     and limitations described in subsection (d).
       ``(c) Options.--The options referred to in subsection (b) 
     are as follows:
       ``(1) Sale of net excess power to utility.--The electric 
     utility shall purchase the net excess power from the owner or 
     operator of the eligible waste energy recovery project during 
     the operation of the project under a contract entered into 
     for that purpose.
       ``(2) Transport by utility for direct sale to third 
     party.--The electric utility shall transmit the net excess 
     power on behalf of the project owner or operator to up to 3 
     separate locations on the system of the utility for direct 
     sale by the owner or operator to third parties at those 
     locations.
       ``(3) Transport over private transmission lines.--The State 
     and the electric utility shall permit, and shall waive or 
     modify such laws as would otherwise prohibit, the 
     construction and operation of private electric wires 
     constructed, owned, and operated by the project owner or 
     operator, to transport the power to up to 3 purchasers within 
     a 3-mile radius of the project, allowing the wires to use or 
     cross public rights-of-way, without subjecting the project to 
     regulation as a public utility, and according the wires the 
     same treatment for safety, zoning, land use, and other legal 
     privileges as apply or would apply to the wires of the 
     utility, except that--
       ``(A) there shall be no grant of any power of eminent 
     domain to take or cross private property for the wires; and
       ``(B) the wires shall be physically segregated and not 
     interconnected with any portion of the system of the utility, 
     except on the customer side of the revenue meter of the 
     utility and in a manner that precludes any possible export of 
     the electricity onto the utility system, or disruption of the 
     system.
       ``(4) Agreed on alternatives.--The utility and the owner or 
     operator of the project may reach agreement on any alternate 
     arrangement and payments or rates associated with the 
     arrangement that is mutually satisfactory and in accord with 
     State law.
       ``(d) Rate Conditions and Criteria.--
       ``(1) Definitions.--In this subsection:
       ``(A) Per unit distribution costs.--The term `per unit 
     distribution costs' means (in kilowatt hours) the quotient 
     obtained by dividing--
       ``(i) the depreciated book-value distribution system costs 
     of a utility; by
       ``(ii) the volume of utility electricity sales or 
     transmission during the previous year at the distribution 
     level.
       ``(B) Per unit distribution margin.--The term `per unit 
     distribution margin' means--
       ``(i) in the case of a State-regulated electric utility, a 
     per-unit gross pretax profit equal to the product obtained by 
     multiplying--

       ``(I) the State-approved percentage rate of return for the 
     utility for distribution system assets; by
       ``(II) the per unit distribution costs; and

       ``(ii) in the case of a nonregulated utility, a per unit 
     contribution to net revenues determined multiplying--

       ``(I) the percentage (but not less than 10 percent) 
     obtained by dividing--

       ``(aa) the amount of any net revenue payment or 
     contribution to the owners or subscribers of the nonregulated 
     utility during the prior year; by
       ``(bb) the gross revenues of the utility during the prior 
     year to obtain a percentage; by

       ``(II) the per unit distribution costs.

       ``(C) Per unit transmission costs.--The term `per unit 
     transmission costs' means the total cost of those 
     transmission services purchased or provided by a utility on a 
     per-kilowatt-hour basis as included in the retail rate of the 
     utility.
       ``(2) Options.--The options described in paragraphs (1) and 
     (2) in subsection (c) shall be offered under purchase and 
     transport rate conditions that reflect the rate components 
     defined under paragraph (1) as applicable under the 
     circumstances described in paragraph (3).
       ``(3) Applicable rates.--
       ``(A) Rates applicable to sale of net excess power.--
       ``(i) In general.--Sales made by a project owner or 
     operator of a facility under the option described in 
     subsection (c)(1) shall be paid for on a per kilowatt hour 
     basis that shall equal the full undiscounted retail rate paid 
     to the utility for power purchased by the facility minus per 
     unit distribution costs, that applies to the type of utility 
     purchasing the power.
       ``(ii) Voltages exceeding 25 kilovolts.--If the net excess 
     power is made available for purchase at voltages that must be 
     transformed to or from voltages exceeding 25 kilovolts to be 
     available for resale by the utility, the purchase price shall 
     further be reduced by per unit transmission costs.
       ``(B) Rates applicable to transport by utility for direct 
     sale to third parties.--
       ``(i) In general.--Transportation by utilities of power on 
     behalf of the owner or operator of a project under the option 
     described in subsection (c)(2) shall incur a transportation 
     rate that shall equal the per unit distribution costs and per 
     unit distribution margin, that applies to the type of utility 
     transporting the power.
       ``(ii) Voltages exceeding 25 kilovolts.--If the net excess 
     power is made available for transportation at voltages that 
     must be transformed to or from voltages exceeding 25 
     kilovolts to be transported to the designated third-party 
     purchasers, the transport rate shall further be increased by 
     per unit transmission costs.
       ``(iii) States with competitive retail markets for 
     electricity.--In a State with a competitive retail market for 
     electricity, the applicable transportation rate for similar 
     transportation shall be applied in lieu of any rate 
     calculated under this paragraph.
       ``(4) Limitations.--
       ``(A) In general.--Any rate established for sale or 
     transportation under this section shall--
       ``(i) be modified over time with changes in the underlying 
     costs or rates of the electric utility; and
       ``(ii) reflect the same time-sensitivity and billing 
     periods as are established in the retail sales or 
     transportation rates offered by the utility.
       ``(B) Limitation.--No utility shall be required to purchase 
     or transport a quantity of net excess power under this 
     section that exceeds the available capacity of the wires, 
     meter, or other equipment of the electric utility serving the 
     site unless the owner or operator of the project agrees to 
     pay necessary and reasonable upgrade costs.
       ``(e) Procedural Requirements for Consideration and 
     Determination.--
       ``(1) Public notice and hearing.--
       ``(A) In general.--The consideration referred to in 
     subsection (a) shall be made after public notice and hearing.
       ``(B) Administration.--The determination referred to in 
     subsection (a) shall be--
       ``(i) in writing;
       ``(ii) based on findings included in the determination and 
     on the evidence presented at the hearing; and
       ``(iii) available to the public.
       ``(2) Intervention by administrator.--The Administrator may 
     intervene as a matter of right in a proceeding conducted 
     under this section--
       ``(A) to calculate--
       ``(i) the energy and emissions likely to be saved by 
     electing to adopt 1 or more of the options; and
       ``(ii) the costs and benefits to ratepayers and the 
     utility; and
       ``(B) to advocate for the waste-energy recovery 
     opportunity.
       ``(3) Procedures.--
       ``(A) In general.--Except as otherwise provided in 
     paragraphs (1) and (2), the procedures for the consideration 
     and determination referred to in subsection (a) shall be the 
     procedures established by the State regulatory authority or 
     the nonregulated electric utility.
       ``(B) Multiple projects.--If there is more than 1 project 
     seeking consideration simultaneously in connection with the 
     same utility, the proceeding may encompass all such projects, 
     if full attention is paid to individual circumstances and 
     merits and an individual judgment is reached with respect to 
     each project.
       ``(f) Implementation.--
       ``(1) In general.--The State regulatory authority (with 
     respect to each electric utility for which the authority has 
     ratemaking authority) or nonregulated electric utility may, 
     to the extent consistent with otherwise applicable State 
     law--
       ``(A) implement the standard determined under this section; 
     or
       ``(B) decline to implement any such standard.
       ``(2) Nonimplementation of standard.--
       ``(A) In general.--If a State regulatory authority (with 
     respect to each electric utility

[[Page 33912]]

     for which the authority has ratemaking authority) or 
     nonregulated electric utility declines to implement any 
     standard established by this section, the authority or 
     nonregulated electric utility shall state in writing the 
     reasons for declining to implement the standard.
       ``(B) Availability to public.--The statement of reasons 
     shall be available to the public.
       ``(C) Annual report.--The Administrator shall include in an 
     annual report submitted to Congress a description of the lost 
     opportunities for waste-heat recovery from the project 
     described in subparagraph (A), specifically identifying the 
     utility and stating the quantity of lost energy and emissions 
     savings calculated.
       ``(D) New petition.--If a State regulatory authority (with 
     respect to each electric utility for which the authority has 
     ratemaking authority) or nonregulated electric utility 
     declines to implement the standard established by this 
     section, the project sponsor may submit a new petition under 
     this section with respect to the project at any time after 
     the date that is 2 years after the date on which the State 
     regulatory authority or nonregulated utility declined to 
     implement the standard.

     ``SEC. 375. CLEAN ENERGY APPLICATION CENTERS.

       ``(a) Renaming.--
       ``(1) In general.--The Combined Heat and Power Application 
     Centers of the Department of Energy are redesignated as Clean 
     Energy Application Centers.
       ``(2) References.--Any reference in any law, rule, 
     regulation, or publication to a Combined Heat and Power 
     Application Center shall be treated as a reference to a Clean 
     Energy Application Center.
       ``(b) Relocation.--
       ``(1) In general.--In order to better coordinate efforts 
     with the separate Industrial Assessment Centers and to ensure 
     that the energy efficiency and, when applicable, the 
     renewable nature of deploying mature clean energy technology 
     is fully accounted for, the Secretary shall relocate the 
     administration of the Clean Energy Application Centers to the 
     Office of Energy Efficiency and Renewable Energy within the 
     Department of Energy.
       ``(2) Office of electricity delivery and energy 
     reliability.--The Office of Electricity Delivery and Energy 
     Reliability shall--
       ``(A) continue to perform work on the role of technology 
     described in paragraph (1) in support of the grid and the 
     reliability and security of the technology; and
       ``(B) shall assist the Clean Energy Application Centers in 
     the work of the Centers with regard to the grid and with 
     electric utilities.
       ``(c) Grants.--
       ``(1) In general.--The Secretary shall make grants to 
     universities, research centers, and other appropriate 
     institutions to ensure the continued operations and 
     effectiveness of 8 Regional Clean Energy Application Centers 
     in each of the following regions (as designated for such 
     purposes as of the date of the enactment of the Energy 
     Independence and Security Act of 2007):
       ``(A) Gulf Coast.
       ``(B) Intermountain.
       ``(C) Mid-Atlantic.
       ``(D) Midwest.
       ``(E) Northeast.
       ``(F) Northwest.
       ``(G) Pacific.
       ``(H) Southeast.
       ``(2) Establishment of goals and compliance.--In making 
     grants under this subsection, the Secretary shall ensure that 
     sufficient goals are established and met by each Center 
     throughout the program duration concerning outreach and 
     technology deployment.
       ``(d) Activities.--
       ``(1) In general.--Each Clean Energy Application Center 
     shall--
       ``(A) operate a program to encourage deployment of clean 
     energy technologies through education and outreach to 
     building and industrial professionals; and other individuals 
     and organizations with an interest in efficient energy use; 
     and
       ``(B) provide project specific support to building and 
     industrial professionals through assessments and advisory 
     activities.
       ``(2) Types of activities.--Funds made available under this 
     section may be used--
       ``(A) to develop and distribute informational materials on 
     clean energy technologies, including continuation of the 8 
     websites in existence on the date of enactment of the Energy 
     Independence and Security Act of 2007;
       ``(B) to develop and conduct target market workshops, 
     seminars, internet programs, and other activities to educate 
     end users, regulators, and stakeholders in a manner that 
     leads to the deployment of clean energy technologies;
       ``(C) to provide or coordinate onsite assessments for sites 
     and enterprises that may consider deployment of clean energy 
     technology;
       ``(D) to perform market research to identify high profile 
     candidates for clean energy deployment;
       ``(E) to provide consulting support to sites considering 
     deployment of clean energy technologies;
       ``(F) to assist organizations developing clean energy 
     technologies to overcome barriers to deployment; and
       ``(G) to assist companies and organizations with 
     performance evaluations of any clean energy technology 
     implemented.
       ``(e) Duration.--
       ``(1) In general.--A grant awarded under this section shall 
     be for a period of 5 years
       ``(2) Annual evaluations.--Each grant shall be evaluated 
     annually for the continuation of the grant based on the 
     activities and results of the grant.
       ``(f) Authorization.--There is authorized to be 
     appropriated to carry out this section $10,000,000 for each 
     of fiscal years 2008 through 2012.''.
       (b) Table of Contents.--The table of contents of the Energy 
     Policy and Conservation Act (42 U.S.C. prec. 6201) is amended 
     by inserting after the items relating to part D of title III 
     the following:

                 ``Part E--Industrial Energy Efficiency

``Sec. 371. Definitions.
``Sec. 372. Survey and Registry.
``Sec. 373.Waste energy recovery incentive grant program.
``Sec. 374. Additional incentives for recovery, utilization and 
              prevention of industrial waste energy.
``Sec. 375. Clean Energy Application Centers.''.

     SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means--
       (A) an energy-intensive industry;
       (B) a national trade association representing an energy-
     intensive industry; or
       (C) a person acting on behalf of 1 or more energy-intensive 
     industries or sectors, as determined by the Secretary.
       (2) Energy-intensive industry.--The term ``energy-intensive 
     industry'' means an industry that uses significant quantities 
     of energy as part of its primary economic activities, 
     including--
       (A) information technology, including data centers 
     containing electrical equipment used in processing, storing, 
     and transmitting digital information;
       (B) consumer product manufacturing;
       (C) food processing;
       (D) materials manufacturers, including--
       (i) aluminum;
       (ii) chemicals;
       (iii) forest and paper products;
       (iv) metal casting;
       (v) glass;
       (vi) petroleum refining;
       (vii) mining; and
       (viii) steel;
       (E) other energy-intensive industries, as determined by the 
     Secretary.
       (3) Feedstock.--The term ``feedstock'' means the raw 
     material supplied for use in manufacturing, chemical, and 
     biological processes.
       (4) Partnership.--The term ``partnership'' means an energy 
     efficiency partnership established under subsection 
     (c)(1)(A).
       (5) Program.--The term ``program'' means the energy-
     intensive industries program established under subsection 
     (b).
       (b) Establishment of Program.--The Secretary shall 
     establish a program under which the Secretary, in cooperation 
     with energy-intensive industries and national industry trade 
     associations representing the energy-intensive industries, 
     shall support, research, develop, and promote the use of new 
     materials processes, technologies, and techniques to optimize 
     energy efficiency and the economic competitiveness of the 
     United States' industrial and commercial sectors.
       (c) Partnerships.--
       (1) In general.--As part of the program, the Secretary 
     shall establish energy efficiency partnerships between the 
     Secretary and eligible entities to conduct research on, 
     develop, and demonstrate new processes, technologies, and 
     operating practices and techniques to significantly improve 
     the energy efficiency of equipment and processes used by 
     energy-intensive industries, including the conduct of 
     activities to--
       (A) increase the energy efficiency of industrial processes 
     and facilities;
       (B) research, develop, and demonstrate advanced 
     technologies capable of energy intensity reductions and 
     increased environmental performance; and
       (C) promote the use of the processes, technologies, and 
     techniques described in subparagraphs (A) and (B).
       (2) Eligible activities.--Partnership activities eligible 
     for funding under this subsection include--
       (A) feedstock and recycling research, development, and 
     demonstration activities to identify and promote--
       (i) opportunities for meeting industry feedstock 
     requirements with more energy efficient and flexible sources 
     of feedstock or energy supply;
       (ii) strategies to develop and deploy technologies that 
     improve the quality and quantity of feedstocks recovered from 
     process and waste streams; and
       (iii) other methods using recycling, reuse, and improved 
     industrial materials;
       (B) research to develop and demonstrate technologies and 
     processes that utilize alternative energy sources to supply 
     heat, power, and new feedstocks for energy-intensive 
     industries;

[[Page 33913]]

       (C) research to achieve energy efficiency in steam, power, 
     control system, and process heat technologies, and in other 
     manufacturing processes; and
       (D) industrial and commercial energy efficiency and 
     sustainability assessments to--
       (i) assist individual industrial and commercial sectors in 
     developing tools, techniques, and methodologies to assess--

       (I) the unique processes and facilities of the sectors;
       (II) the energy utilization requirements of the sectors; 
     and
       (III) the application of new, more energy efficient 
     technologies; and

       (ii) conduct energy savings assessments;
       (E) the incorporation of technologies and innovations that 
     would significantly improve the energy efficiency and 
     utilization of energy-intensive commercial applications; and
       (F) any other activities that the Secretary determines to 
     be appropriate.
       (3) Proposals.--
       (A) In general.--To be eligible for funding under this 
     subsection, a partnership shall submit to the Secretary a 
     proposal that describes the proposed research, development, 
     or demonstration activity to be conducted by the partnership.
       (B) Review.--After reviewing the scientific, technical, and 
     commercial merit of a proposals submitted under subparagraph 
     (A), the Secretary shall approve or disapprove the proposal.
       (C) Competitive awards.--The provision of funding under 
     this subsection shall be on a competitive basis.
       (4) Cost-sharing requirement.--In carrying out this 
     section, the Secretary shall require cost sharing in 
     accordance with section 988 of the Energy Policy Act of 2005 
     (42 U.S.C. 16352).
       (d) Grants.--The Secretary may award competitive grants for 
     innovative technology research, development and 
     demonstrations to universities, individual inventors, and 
     small companies, based on energy savings potential, 
     commercial viability, and technical merit.
       (e) Institution of Higher Education-Based Industrial 
     Research and Assessment Centers.--The Secretary shall provide 
     funding to institution of higher education-based industrial 
     research and assessment centers, whose purpose shall be--
       (1) to identify opportunities for optimizing energy 
     efficiency and environmental performance;
       (2) to promote applications of emerging concepts and 
     technologies in small and medium-sized manufacturers;
       (3) to promote research and development for the use of 
     alternative energy sources to supply heat, power, and new 
     feedstocks for energy-intensive industries;
       (4) to coordinate with appropriate Federal and State 
     research offices, and provide a clearinghouse for industrial 
     process and energy efficiency technical assistance resources; 
     and
       (5) to coordinate with State-accredited technical training 
     centers and community colleges, while ensuring appropriate 
     services to all regions of the United States.
       (f) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary to carry out this section--
       (A) $184,000,000 for fiscal year 2008;
       (B) $190,000,000 for fiscal year 2009;
       (C) $196,000,000 for fiscal year 2010;
       (D) $202,000,000 for fiscal year 2011;
       (E) $208,000,000 for fiscal year 2012; and
       (F) such sums as are necessary for fiscal year 2013 and 
     each fiscal year thereafter.
       (2) Partnership activities.--Of the amounts made available 
     under paragraph (1), not less than 50 percent shall be used 
     to pay the Federal share of partnership activities under 
     subsection (c).
       (3) Coordination and nonduplication.--The Secretary shall 
     coordinate efforts under this section with other programs of 
     the Department and other Federal agencies to avoid 
     duplication of effort.

     SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

       (a) Definitions.--In this section:
       (1) Data center.--The term ``data center'' means any 
     facility that primarily contains electronic equipment used to 
     process, store, and transmit digital information, which may 
     be--
       (A) a free-standing structure; or
       (B) a facility within a larger structure, that uses 
     environmental control equipment to maintain the proper 
     conditions for the operation of electronic equipment.
       (2) Data center operator.--The term ``data center 
     operator'' means any person or government entity that builds 
     or operates a data center or purchases data center services, 
     equipment, and facilities.
       (b) Voluntary National Information Program.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary and the Administrator of 
     the Environmental Protection Agency shall, after consulting 
     with information technology industry and other interested 
     parties, initiate a voluntary national information program 
     for those types of data centers and data center equipment and 
     facilities that are widely used and for which there is a 
     potential for significant data center energy savings as a 
     result of the program.
       (2) Requirements.--The program described in paragraph (1) 
     shall--
       (A) address data center efficiency holistically, reflecting 
     the total energy consumption of data centers as whole 
     systems, including both equipment and facilities;
       (B) consider prior work and studies undertaken in this 
     area, including by the Environmental Protection Agency and 
     the Department of Energy;
       (C) consistent with the objectives described in paragraph 
     (1), determine the type of data center and data center 
     equipment and facilities to be covered under the program;
       (D) produce specifications, measurements, best practices, 
     and benchmarks that will enable data center operators to make 
     more informed decisions about the energy efficiency and costs 
     of data centers, and that take into account--
       (i) the performance and use of servers, data storage 
     devices, and other information technology equipment;
       (ii) the efficiency of heating, ventilation, and air 
     conditioning, cooling, and power conditioning systems, 
     provided that no modification shall be required of a standard 
     then in effect under the Energy Policy and Conservation Act 
     (42 U.S.C. 6201 et seq.) for any covered heating, 
     ventilation, air-conditioning, cooling or power-conditioning 
     product;
       (iii) energy savings from the adoption of software and data 
     management techniques; and
       (iv) other factors determined by the organization described 
     in subsection (c);
       (E) allow for creation of separate specifications, 
     measurements, and benchmarks based on data center size and 
     function, as well as other appropriate characteristics;
       (F) advance the design and implementation of efficiency 
     technologies to the maximum extent economically practical;
       (G) provide to data center operators in the private sector 
     and the Federal Government information about best practices 
     and purchasing decisions that reduce the energy consumption 
     of data centers; and
       (H) publish the information described in subparagraph (G), 
     which may be disseminated through catalogs, trade 
     publications, the Internet, or other mechanisms, that will 
     allow data center operators to assess the energy consumption 
     and potential cost savings of alternative data centers and 
     data center equipment and facilities.
       (3) Procedures.--The program described in paragraph (1) 
     shall be developed in consultation with and coordinated by 
     the organization described in subsection (c) according to 
     commonly accepted procedures for the development of 
     specifications, measurements, and benchmarks.
       (c) Data Center Efficiency Organization.--
       (1) In general.--After the establishment of the program 
     described in subsection (b), the Secretary and the 
     Administrator shall jointly designate an information 
     technology industry organization to consult with and to 
     coordinate the program.
       (2) Requirements.--The organization designated under 
     paragraph (1), whether preexisting or formed specifically for 
     the purposes of subsection (b), shall--
       (A) consist of interested parties that have expertise in 
     energy efficiency and in the development, operation, and 
     functionality of computer data centers, information 
     technology equipment, and software, as well as 
     representatives of hardware manufacturers, data center 
     operators, and facility managers;
       (B) obtain and address input from Department of Energy 
     National Laboratories or any college, university, research 
     institution, industry association, company, or public 
     interest group with applicable expertise in any of the areas 
     listed in paragraph (1);
       (C) follow commonly accepted procedures for the development 
     of specifications and accredited standards development 
     processes;
       (D) have a mission to develop and promote energy efficiency 
     for data centers and information technology; and
       (E) have the primary responsibility to consult in the 
     development and publishing of the information, measurements, 
     and benchmarks described in subsection (b) and transmission 
     of the information to the Secretary and the Administrator for 
     consideration under subsection (d).
       (d) Measurements and Specifications.--
       (1) In general.--The Secretary and the Administrator shall 
     consider the specifications, measurements, and benchmarks 
     described in subsection (b) for use by the Federal Energy 
     Management Program, the Energy Star Program, and other 
     efficiency programs of the Department of Energy and 
     Environmental Protection Agency, respectively.
       (2) Rejections.--If the Secretary or the Administrator 
     rejects 1 or more specifications, measurements, or benchmarks 
     described in subsection (b), the rejection shall be made 
     consistent with section 12(d) of the National Technology 
     Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 
     Public Law 104-113).
       (3) Determination of impracticability.--A determination 
     that a specification, measurement, or benchmark described in 
     subsection (b) is impractical may include consideration of 
     the maximum efficiency that is

[[Page 33914]]

     technologically feasible and economically justified.
       (e) Monitoring.--The Secretary and the Administrator 
     shall--
       (1) monitor and evaluate the efforts to develop the program 
     described in subsection (b); and
       (2) not later than 3 years after the date of enactment of 
     this Act, make a determination as to whether the program is 
     consistent with the objectives of subsection (b).
       (f) Alternative System.--If the Secretary and the 
     Administrator make a determination under subsection (e) that 
     a voluntary national information program for data centers 
     consistent with the objectives of subsection (b) has not been 
     developed, the Secretary and the Administrator shall, after 
     consultation with the National Institute of Standards and 
     Technology and not later than 2 years after the 
     determination, develop and implement the program under 
     subsection (b).
       (g) Protection of Proprietary Information.--The Secretary, 
     the Administrator, or the data center efficiency organization 
     shall not disclose any proprietary information or trade 
     secrets provided by any individual or company for the 
     purposes of carrying out this section or the program 
     established under this section.

              Subtitle E--Healthy High-Performance Schools

     SEC. 461. HEALTHY HIGH-PERFORMANCE SCHOOLS.

       (a) Amendment.--The Toxic Substances Control Act (15 U.S.C. 
     2601 et seq.) is amended by adding at the end the following 
     new title:

              ``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

     ``SEC. 501. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS.

       ``(a) In General.--The Administrator, in consultation with 
     the Secretary of Education, may provide grants to States for 
     use in--
       ``(1) providing technical assistance for programs of the 
     Environmental Protection Agency (including the Tools for 
     Schools Program and the Healthy School Environmental 
     Assessment Tool) to schools for use in addressing 
     environmental issues; and
       ``(2) development and implementation of State school 
     environmental health programs that include--
       ``(A) standards for school building design, construction, 
     and renovation; and
       ``(B) identification of ongoing school building 
     environmental problems, including contaminants, hazardous 
     substances, and pollutant emissions, in the State and 
     recommended solutions to address those problems, including 
     assessment of information on the exposure of children to 
     environmental hazards in school facilities.
       ``(b) Sunset.--The authority of the Administrator to carry 
     out this section shall expire 5 years after the date of 
     enactment of this section.

     ``SEC. 502. MODEL GUIDELINES FOR SITING OF SCHOOL FACILITIES.

       ``Not later than 18 months after the date of enactment of 
     this section, the Administrator, in consultation with the 
     Secretary of Education and the Secretary of Health and Human 
     Services, shall issue voluntary school site selection 
     guidelines that account for--
       ``(1) the special vulnerability of children to hazardous 
     substances or pollution exposures in any case in which the 
     potential for contamination at a potential school site 
     exists;
       ``(2) modes of transportation available to students and 
     staff;
       ``(3) the efficient use of energy; and
       ``(4) the potential use of a school at the site as an 
     emergency shelter.

     ``SEC. 503. PUBLIC OUTREACH.

       ``(a) Reports.--The Administrator shall publish and submit 
     to Congress an annual report on all activities carried out 
     under this title, until the expiration of authority described 
     in section 501(b).
       ``(b) Public Outreach.--The Federal Director appointed 
     under section 436(a) of the Energy Independence and Security 
     Act of 2007 (in this title referred to as the `Federal 
     Director') shall ensure, to the maximum extent practicable, 
     that the public clearinghouse established under section 
     423(1) of the Energy Independence and Security Act of 2007 
     receives and makes available information on the exposure of 
     children to environmental hazards in school facilities, as 
     provided by the Administrator.

     ``SEC. 504. ENVIRONMENTAL HEALTH PROGRAM.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of this section, the Administrator, in consultation 
     with the Secretary of Education, the Secretary of Health and 
     Human Services, and other relevant agencies, shall issue 
     voluntary guidelines for use by the State in developing and 
     implementing an environmental health program for schools 
     that--
       ``(1) takes into account the status and findings of Federal 
     initiatives established under this title or subtitle C of 
     title IV of the Energy Independence and Security Act of 2007 
     and other relevant Federal law with respect to school 
     facilities, including relevant updates on trends in the 
     field, such as the impact of school facility environments on 
     student and staff--
       ``(A) health, safety, and productivity; and
       ``(B) disabilities or special needs;
       ``(2) takes into account studies using relevant tools 
     identified or developed in accordance with section 492 of the 
     Energy Independence and Security Act of 2007;
       ``(3) takes into account, with respect to school 
     facilities, each of--
       ``(A) environmental problems, contaminants, hazardous 
     substances, and pollutant emissions, including--
       ``(i) lead from drinking water;
       ``(ii) lead from materials and products;
       ``(iii) asbestos;
       ``(iv) radon;
       ``(v) the presence of elemental mercury releases from 
     products and containers;
       ``(vi) pollutant emissions from materials and products; and
       ``(vii) any other environmental problem, contaminant, 
     hazardous substance, or pollutant emission that present or 
     may present a risk to the health of occupants of the school 
     facilities or environment;
       ``(B) natural day lighting;
       ``(C) ventilation choices and technologies;
       ``(D) heating and cooling choices and technologies;
       ``(E) moisture control and mold;
       ``(F) maintenance, cleaning, and pest control activities;
       ``(G) acoustics; and
       ``(H) other issues relating to the health, comfort, 
     productivity, and performance of occupants of the school 
     facilities;
       ``(4) provides technical assistance on siting, design, 
     management, and operation of school facilities, including 
     facilities used by students with disabilities or special 
     needs;
       ``(5) collaborates with federally funded pediatric 
     environmental health centers to assist in on-site school 
     environmental investigations;
       ``(6) assists States and the public in better understanding 
     and improving the environmental health of children; and
       ``(7) takes into account the special vulnerability of 
     children in low-income and minority communities to exposures 
     from contaminants, hazardous substances, and pollutant 
     emissions.
       ``(b) Public Outreach.--The Federal Director and Commercial 
     Director shall ensure, to the maximum extent practicable, 
     that the public clearinghouse established under section 423 
     of the Energy Independence and Security Act of 2007 receives 
     and makes available--
       ``(1) information from the Administrator that is contained 
     in the report described in section 503(a); and
       ``(2) information on the exposure of children to 
     environmental hazards in school facilities, as provided by 
     the Administrator.

     ``SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $1,000,000 for fiscal year 2009, and $1,500,000 for 
     each of fiscal years 2010 through 2013, to remain available 
     until expended.''.
       (b) Table of Contents Amendment.--The table of contents for 
     the Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is 
     amended by adding at the end the following:

              ``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

``Sec. 501. Grants for healthy school environments.
``Sec. 502. Model guidelines for siting of school facilities.
``Sec. 503. Public outreach.
``Sec. 504. Environmental health program.
``Sec. 505. Authorization of appropriations.''.

     SEC. 462. STUDY ON INDOOR ENVIRONMENTAL QUALITY IN SCHOOLS.

       (a) In General.--The Administrator of the Environmental 
     Protection Agency shall enter into an arrangement with the 
     Secretary of Education and the Secretary of Energy to conduct 
     a detailed study of how sustainable building features such as 
     energy efficiency affect multiple perceived indoor 
     environmental quality stressors on students in K-12 schools.
       (b) Contents.--The study shall--
       (1) investigate the combined effect building stressors such 
     as heating, cooling, humidity, lighting, and acoustics have 
     on building occupants' health, productivity, and overall 
     well-being;
       (2) identify how sustainable building features, such as 
     energy efficiency, are influencing these human outcomes 
     singly and in concert; and
       (3) ensure that the impacts of the indoor environmental 
     quality are evaluated as a whole.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated for carrying out this section $200,000 for 
     each of the fiscal years 2008 through 2012.

                   Subtitle F--Institutional Entities

     SEC. 471. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND 
                   LOANS FOR INSTITUTIONS.

       Part G of title III of the Energy Policy and Conservation 
     Act is amended by inserting after section 399 (42 U.S.C. 
     6371h) the following:

     ``SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND 
                   LOANS FOR INSTITUTIONS.

       ``(a) Definitions.--In this section:

[[Page 33915]]

       ``(1) Combined heat and power.--The term `combined heat and 
     power' means the generation of electric energy and heat in a 
     single, integrated system, with an overall thermal efficiency 
     of 60 percent or greater on a higher-heating-value basis.
       ``(2) District energy systems.--The term `district energy 
     systems' means systems providing thermal energy from a 
     renewable energy source, thermal energy source, or highly 
     efficient technology to more than 1 building or fixed energy-
     consuming use from 1 or more thermal-energy production 
     facilities through pipes or other means to provide space 
     heating, space conditioning, hot water, steam, compression, 
     process energy, or other end uses for that energy.
       ``(3) Energy sustainability.--The term `energy 
     sustainability' includes using a renewable energy source, 
     thermal energy source, or a highly efficient technology for 
     transportation, electricity generation, heating, cooling, 
     lighting, or other energy services in fixed installations.
       ``(4) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 
     15801).
       ``(5) Institutional entity.--The term `institutional 
     entity' means an institution of higher education, a public 
     school district, a local government, a municipal utility, or 
     a designee of 1 of those entities.
       ``(6) Renewable energy source.--The term `renewable energy 
     source' has the meaning given the term in section 609 of the 
     Public Utility Regulatory Policies Act of 1978 (7 U.S.C. 
     918c).
       ``(7) Sustainable energy infrastructure.--The term 
     `sustainable energy infrastructure' means--
       ``(A) facilities for production of energy from renewable 
     energy sources, thermal energy sources, or highly efficient 
     technologies, including combined heat and power or other 
     waste heat use; and
       ``(B) district energy systems.
       ``(8) Thermal energy source.--The term `thermal energy 
     source' means--
       ``(A) a natural source of cooling or heating from lake or 
     ocean water; and
       ``(B) recovery of useful energy that would otherwise be 
     wasted from ongoing energy uses.
       ``(b) Technical Assistance Grants.--
       ``(1) In general.--Subject to the availability of 
     appropriated funds, the Secretary shall implement a program 
     of information dissemination and technical assistance to 
     institutional entities to assist the institutional entities 
     in identifying, evaluating, designing, and implementing 
     sustainable energy infrastructure projects in energy 
     sustainability.
       ``(2) Assistance.--The Secretary shall support 
     institutional entities in--
       ``(A) identification of opportunities for sustainable 
     energy infrastructure;
       ``(B) understanding the technical and economic 
     characteristics of sustainable energy infrastructure;
       ``(C) utility interconnection and negotiation of power and 
     fuel contracts;
       ``(D) understanding financing alternatives;
       ``(E) permitting and siting issues;
       ``(F) obtaining case studies of similar and successful 
     sustainable energy infrastructure systems; and
       ``(G) reviewing and obtaining computer software for 
     assessment, design, and operation and maintenance of 
     sustainable energy infrastructure systems.
       ``(3) Eligible costs for technical assistance grants.--On 
     receipt of an application of an institutional entity, the 
     Secretary may make grants to the institutional entity to fund 
     a portion of the cost of--
       ``(A) feasibility studies to assess the potential for 
     implementation or improvement of sustainable energy 
     infrastructure;
       ``(B) analysis and implementation of strategies to overcome 
     barriers to project implementation, including financial, 
     contracting, siting, and permitting barriers; and
       ``(C) detailed engineering of sustainable energy 
     infrastructure.
       ``(c) Grants for Energy Efficiency Improvement and Energy 
     Sustainability.--
       ``(1) Grants.--
       ``(A) In general.--The Secretary shall award grants to 
     institutional entities to carry out projects to improve 
     energy efficiency on the grounds and facilities of the 
     institutional entity.
       ``(B) Requirement.--To the extent that applications have 
     been submitted, grants under subparagraph (A) shall include 
     not less than 1 grant each year to an institution of higher 
     education in each State.
       ``(C) Minimum funding.--Not less than 50 percent of the 
     total funding for all grants under this subsection shall be 
     awarded in grants to institutions of higher education.
       ``(2) Criteria.--Evaluation of projects for grant funding 
     shall be based on criteria established by the Secretary, 
     including criteria relating to--
       ``(A) improvement in energy efficiency;
       ``(B) reduction in greenhouse gas emissions and other air 
     emissions, including criteria air pollutants and ozone-
     depleting refrigerants;
       ``(C) increased use of renewable energy sources or thermal 
     energy sources;
       ``(D) reduction in consumption of fossil fuels;
       ``(E) active student participation; and
       ``(F) need for funding assistance.
       ``(3) Condition.--As a condition of receiving a grant under 
     this subsection, an institutional entity shall agree--
       ``(A) to implement a public awareness campaign concerning 
     the project in the community in which the institutional 
     entity is located; and
       ``(B) to submit to the Secretary, and make available to the 
     public, reports on any efficiency improvements, energy cost 
     savings, and environmental benefits achieved as part of a 
     project carried out under paragraph (1), including 
     quantification of the results relative to the criteria 
     described under paragraph (2).
       ``(d) Grants for Innovation in Energy Sustainability.--
       ``(1) Grants.--
       ``(A) In general.--The Secretary shall award grants to 
     institutional entities to engage in innovative energy 
     sustainability projects.
       ``(B) Requirement.--To the extent that applications have 
     been submitted, grants under subparagraph (A) shall include 
     not less than 2 grants each year to institutions of higher 
     education in each State.
       ``(C) Minimum funding.--Not less than 50 percent of the 
     total funding for all grants under this subsection shall be 
     awarded in grants to institutions of higher education.
       ``(2) Innovation projects.--An innovation project carried 
     out with a grant under this subsection shall--
       ``(A) involve--
       ``(i) an innovative technology that is not yet commercially 
     available; or
       ``(ii) available technology in an innovative application 
     that maximizes energy efficiency and sustainability;
       ``(B) have the greatest potential for testing or 
     demonstrating new technologies or processes; and
       ``(C) to the extent undertaken by an institution of higher 
     education, ensure active student participation in the 
     project, including the planning, implementation, evaluation, 
     and other phases of projects.
       ``(3) Condition.--As a condition of receiving a grant under 
     this subsection, an institutional entity shall agree to 
     submit to the Secretary, and make available to the public, 
     reports that describe the results of the projects carried out 
     using grant funds.
       ``(e) Allocation to Institutions of Higher Education With 
     Small Endowments.--
       ``(1) In general.--Of the total amount of grants provided 
     to institutions of higher education for a fiscal year under 
     this section, the Secretary shall provide not less than 50 
     percent of the amount to institutions of higher education 
     that have an endowment of not more than $100,000,000.
       ``(2) Requirement.--To the extent that applications have 
     been submitted, at least 50 percent of the amount described 
     in paragraph (1) shall be provided to institutions of higher 
     education that have an endowment of not more than 
     $50,000,000.
       ``(f) Grant Amounts.--
       ``(1) In general.--If the Secretary determines that cost 
     sharing is appropriate, the amounts of grants provided under 
     this section shall be limited as provided in this subsection.
       ``(2) Technical assistance grants.--In the case of grants 
     for technical assistance under subsection (b), grant funds 
     shall be available for not more than--
       ``(A) an amount equal to the lesser of--
       ``(i) $50,000; or
       ``(ii) 75 percent of the cost of feasibility studies to 
     assess the potential for implementation or improvement of 
     sustainable energy infrastructure;
       ``(B) an amount equal to the lesser of--
       ``(i) $90,000; or
       ``(ii) 60 percent of the cost of guidance on overcoming 
     barriers to project implementation, including financial, 
     contracting, siting, and permitting barriers; and
       ``(C) an amount equal to the lesser of--
       ``(i) $250,000; or
       ``(ii) 40 percent of the cost of detailed engineering and 
     design of sustainable energy infrastructure.
       ``(3) Grants for efficiency improvement and energy 
     sustainability.--In the case of grants for efficiency 
     improvement and energy sustainability under subsection (c), 
     grant funds shall be available for not more than an amount 
     equal to the lesser of--
       ``(A) $1,000,000; or
       ``(B) 60 percent of the total cost.
       ``(4) Grants for innovation in energy sustainability.--In 
     the case of grants for innovation in energy sustainability 
     under subsection (d), grant funds shall be available for not 
     more than an amount equal to the lesser of--
       ``(A) $500,000; or
       ``(B) 75 percent of the total cost.
       ``(g) Loans for Energy Efficiency Improvement and Energy 
     Sustainability.--
       ``(1) In general.--Subject to the availability of 
     appropriated funds, the Secretary shall provide loans to 
     institutional entities for the purpose of implementing energy 
     efficiency improvements and sustainable energy 
     infrastructure.
       ``(2) Terms and conditions.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, loans made under this subsection shall be on such 
     terms and conditions as the Secretary may prescribe.

[[Page 33916]]

       ``(B) Maturity.--The final maturity of loans made within a 
     period shall be the lesser of, as determined by the 
     Secretary--
       ``(i) 20 years; or
       ``(ii) 90 percent of the useful life of the principal 
     physical asset to be financed by the loan.
       ``(C) Default.--No loan made under this subsection may be 
     subordinated to another debt contracted by the institutional 
     entity or to any other claims against the institutional 
     entity in the case of default.
       ``(D) Benchmark interest rate.--
       ``(i) In general.--Loans under this subsection shall be at 
     an interest rate that is set by reference to a benchmark 
     interest rate (yield) on marketable Treasury securities with 
     a similar maturity to the direct loans being made.
       ``(ii) Minimum.--The minimum interest rate of loans under 
     this subsection shall be at the interest rate of the 
     benchmark financial instrument.
       ``(iii) New loans.--The minimum interest rate of new loans 
     shall be adjusted each quarter to take account of changes in 
     the interest rate of the benchmark financial instrument.
       ``(E) Credit risk.--The Secretary shall--
       ``(i) prescribe explicit standards for use in periodically 
     assessing the credit risk of making direct loans under this 
     subsection; and
       ``(ii) find that there is a reasonable assurance of 
     repayment before making a loan.
       ``(F) Advance budget authority required.--New direct loans 
     may not be obligated under this subsection except to the 
     extent that appropriations of budget authority to cover the 
     costs of the new direct loans are made in advance, as 
     required by section 504 of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661c).
       ``(3) Criteria.--Evaluation of projects for potential loan 
     funding shall be based on criteria established by the 
     Secretary, including criteria relating to--
       ``(A) improvement in energy efficiency;
       ``(B) reduction in greenhouse gas emissions and other air 
     emissions, including criteria air pollutants and ozone-
     depleting refrigerants;
       ``(C) increased use of renewable electric energy sources or 
     renewable thermal energy sources;
       ``(D) reduction in consumption of fossil fuels; and
       ``(E) need for funding assistance, including consideration 
     of the size of endowment or other financial resources 
     available to the institutional entity.
       ``(4) Labor standards.--
       ``(A) In general.--All laborers and mechanics employed by 
     contractors or subcontractors in the performance of 
     construction, repair, or alteration work funded in whole or 
     in part under this section shall be paid wages at rates not 
     less than those prevailing on projects of a character similar 
     in the locality as determined by the Secretary of Labor in 
     accordance with sections 3141 through 3144, 3146, and 3147 of 
     title 40, United States Code. The Secretary shall not approve 
     any such funding without first obtaining adequate assurance 
     that required labor standards will be maintained upon the 
     construction work.
       ``(B) Authority and functions.--The Secretary of Labor 
     shall have, with respect to the labor standards specified in 
     paragraph (1), the authority and functions set forth in 
     Reorganization Plan Number 14 of 1950 (15 Fed. Reg. 3176; 64 
     Stat. 1267) and section 3145 of title 40, United States Code.
       ``(h) Program Procedures.--Not later than 180 days after 
     the date of enactment of this section, the Secretary shall 
     establish procedures for the solicitation and evaluation of 
     potential projects for grant and loan funding and 
     administration of the grant and loan programs.
       ``(i) Authorization.--
       ``(1) Grants.--There is authorized to be appropriated for 
     the cost of grants authorized in subsections (b), (c), and 
     (d) $250,000,000 for each of fiscal years 2009 through 2013, 
     of which not more than 5 percent may be used for 
     administrative expenses.
       ``(2) Loans.--There is authorized to be appropriated for 
     the initial cost of direct loans authorized in subsection (g) 
     $500,000,000 for each of fiscal years 2009 through 2013, of 
     which not more than 5 percent may be used for administrative 
     expenses.''.

                Subtitle G--Public and Assisted Housing

     SEC. 481. APPLICATION OF INTERNATIONAL ENERGY CONSERVATION 
                   CODE TO PUBLIC AND ASSISTED HOUSING.

       Section 109 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12709) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(C), by striking, ``, where such 
     standards are determined to be cost effective by the 
     Secretary of Housing and Urban Development''; and
       (B) in the first sentence of paragraph (2)--
       (i) by striking ``Council of American Building Officials 
     Model Energy Code, 1992'' and inserting ``2006 International 
     Energy Conservation Code''; and
       (ii) by striking ``, and, with respect to rehabilitation 
     and new construction of public and assisted housing funded by 
     HOPE VI revitalization grants under section 24 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
     International Energy Conservation Code'';
       (2) in subsection (b)--
       (A) in the heading, by striking ``MODEL ENERGY CODE.--'' 
     and inserting ``INTERNATIONAL ENERGY CONSERVATION CODE.--'';
       (B) by inserting ``and rehabilitation'' after ``all new 
     construction''; and
       (C) by striking ``, and, with respect to rehabilitation and 
     new construction of public and assisted housing funded by 
     HOPE VI revitalization grants under section 24 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
     International Energy Conservation Code'';
       (3) in subsection (c)--
       (A) in the heading, by striking ``MODEL ENERGY CODE AND''; 
     and
       (B) by striking ``, or, with respect to rehabilitation and 
     new construction of public and assisted housing funded by 
     HOPE VI revitalization grants under section 24 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
     International Energy Conservation Code'';
       (4) by adding at the end the following:
       ``(d) Failure To Amend the Standards.--If the Secretary of 
     Housing and Urban Development and the Secretary of 
     Agriculture have not, within 1 year after the requirements of 
     the 2006 IECC or the ASHRAE Standard 90.1-2004 are revised, 
     amended the standards or made a determination under 
     subsection (c), all new construction and rehabilitation of 
     housing specified in subsection (a) shall meet the 
     requirements of the revised code or standard if--
       ``(1) the Secretary of Housing and Urban Development or the 
     Secretary of Agriculture make a determination that the 
     revised codes do not negatively affect the availability or 
     affordability of new construction of assisted housing and 
     single family and multifamily residential housing (other than 
     manufactured homes) subject to mortgages insured under the 
     National Housing Act (12 U.S.C. 1701 et seq.) or insured, 
     guaranteed, or made by the Secretary of Agriculture under 
     title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.), 
     respectively; and
       ``(2) the Secretary of Energy has made a determination 
     under section 304 of the Energy Conservation and Production 
     Act (42 U.S.C. 6833) that the revised code or standard would 
     improve energy efficiency.'';
       (5) by striking ``CABO Model Energy Code, 1992'' each place 
     it appears and inserting ``the 2006 IECC''; and
       (6) by striking ``1989'' each place it appears and 
     inserting ``2004''.

                     Subtitle H--General Provisions

     SEC. 491. DEMONSTRATION PROJECT.

       (a) In General.--The Federal Director and the Commercial 
     Director shall establish guidelines to implement a 
     demonstration project to contribute to the research goals of 
     the Office of Commercial High-Performance Green Buildings and 
     the Office of Federal High-Performance Green Buildings.
       (b) Projects.--In accordance with guidelines established by 
     the Federal Director and the Commercial Director under 
     subsection (a) and the duties of the Federal Director and the 
     Commercial Director described in this title, the Federal 
     Director or the Commercial Director shall carry out--
       (1) for each of fiscal years 2009 through 2014, 1 
     demonstration project per year of green features in a Federal 
     building selected by the Federal Director in accordance with 
     relevant agencies and described in subsection (c)(1), that--
       (A) provides for instrumentation, monitoring, and data 
     collection related to the green features, for study of the 
     impact of the features on overall enrgy use and operational 
     costs, and for the evaluation of the information obtained 
     through the conduct of projects and activities under this 
     title; and
       (B) achieves the highest rating offered by the high 
     performance green building system identified pursuant to 
     section 436(h);
       (2) no fewer than 4 demonstration projects at 4 
     universities, that, as competitively selected by the 
     Commercial Director in accordance with subsection (c)(2), 
     have--
       (A) appropriate research resources and relevant projects to 
     meet the goals of the demonstration project established by 
     the Office of Commercial High-Performance Green Buildings; 
     and
       (B) the ability--
       (i) to serve as a model for high-performance green building 
     initiatives, including research and education by achieving 
     the highest rating offered by the high performance green 
     building system identified pursuant to section 436(h);
       (ii) to identify the most effective ways o use high-
     performance green building and landscape technologies to 
     engage and educate undergraduate and graduate students;
       (iii) to effectively implement a high-performance green 
     building education program for students and occupants;
       (iv) to demonstrate the effectiveness of various high-
     performance technologies, including their impacts on energy 
     use and operational costs, in each of the 4 climatic regions 
     of the United States described in subsection (c)(2)(B); and
       (v) to explore quantifiable and nonquantifiable beneficial 
     impacts on public health and employee and student 
     performance;

[[Page 33917]]

       (3) demonstration projects to evaluate replicable 
     approaches of achieving high performance in actual building 
     operation in various types of commercial buildings in various 
     climates; and
       (4) deployment activities to disseminate information on and 
     encourage widespread adoption of technologies, practices, and 
     policies to achieve zero-net-energy commercial buildings or 
     low energy use and effective monitoring of energy use in 
     commercial buildings.
       (c) Criteria.--
       (1) Federal facilities.--With respect to the existing or 
     proposed Federal facility at which a demonstration project 
     under this section is conducted, the Federal facility shall--
       (A) be an appropriate model for a project relating to--
       (i) the effectiveness of high-performance technologies;
       (ii) analysis of materials, components, systems, and 
     emergency operations in the building, and the impact of those 
     materials, components, and systems, including the impact on 
     the health of building occupants;
       (iii) life-cycle costing and life-cycle assessment of 
     building materials and systems; and
       (iv) location and design that promote access to the Federal 
     facility through walking, biking, and mass transit; and
       (B) possess sufficient technological and organizational 
     adaptability.
       (2) Universities.--With respect to the 4 universities at 
     which a demonstration project under this section is 
     conducted--
       (A) the universities should be selected, after careful 
     review of all applications received containing the required 
     information, as determined by the Commercial Director, based 
     on--
       (i) successful and established public-private research and 
     development partnerships;
       (ii) demonstrated capabilities to construct or renovate 
     buildings that meet high indoor environmental quality 
     standards;
       (iii) organizational flexibility;
       (iv) technological adaptability;
       (v) the demonstrated capacity of at least 1 university to 
     replicate lessons learned among nearby or sister 
     universities, preferably by participation in groups or 
     consortia that promote sustainability;
       (vi) the demonstrated capacity of at least 1 university to 
     have officially-adopted, institution-wide ``high-performance 
     green building'' guidelines for all campus building projects; 
     and
       (vii) the demonstrated capacity of at least 1 university to 
     have been recognized by similar institutions as a national 
     leader in sustainability education and curriculum for 
     students of the university; and
       (B) each university shall be located in a different 
     climatic region of the United States, each of which regions 
     shall have, as determined by the Office of Commercial High-
     Performance Green Buildings--
       (i) a hot, dry climate;
       (ii) a hot, humid climate;
       (iii) a cold climate; or
       (iv) a temperate climate (including a climate with cold 
     winters and humid summers).
       (d) Applications.--To receive a grant under subsection (b), 
     an eligible applicant shall submit to the Federal Director or 
     the Commercial Director an application at such time, in such 
     manner, and containing such information as the Director may 
     require, including a written assurance that all laborers and 
     mechanics employed by contractors or subcontractors during 
     construction, alteration, or repair that is financed, in 
     whole or in part, by a grant under this section shall be paid 
     wages at rates not less than those prevailing on similar 
     construction in the locality, as determined by the Secretary 
     of Labor in accordance with sections 3141 through 3144, 3146, 
     and 3147 of title 40, United States Code. The Secretary of 
     Labor shall, with respect to the labor standards described in 
     this subsection, have the authority and functions set forth 
     in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) 
     and section 3145 of title 40, United States Code.
       (e) Report.--Not later than 1 year after the date of 
     enactment of this Act, and annually thereafter through 
     September 30, 2014--
       (1) the Federal Director and the Commercial Director shall 
     submit to the Secretary a report that describes the status of 
     the demonstration projects; and
       (2) each University at which a demonstration project under 
     this section is conducted shall submit to the Secretary a 
     report that describes the status of the demonstration 
     projects under this section.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the demonstration project 
     described in section (b)(1) $10,000,000 for the period of 
     fiscal years 2008 through 2012, and to carry out the 
     demonstration project described in section (b)(2), 
     $10,000,000 for the period of fiscal years 2008 through 2012, 
     to remain available until expended.

     SEC. 492. RESEARCH AND DEVELOPMENT.

       (a) Establishment.--The Federal Director and the Commercial 
     Director, jointly and in coordination with the Advisory 
     Committee, shall--
       (1)(A) survey existing research and studies relating to 
     high-performance green buildings; and
       (B) coordinate activities of common interest;
       (2) develop and recommend a high-performance green building 
     research plan that--
       (A) identifies information and research needs, including 
     the relationships between human health, occupant 
     productivity, safety, security, and accessibility and each 
     of--
       (i) emissions from materials and products in the building;
       (ii) natural day lighting;
       (iii) ventilation choices and technologies;
       (iv) heating, cooling, and system control choices and 
     technologies;
       (v) moisture control and mold;
       (vi) maintenance, cleaning, and pest control activities;
       (vii) acoustics;
       (viii) access to public transportation; and
       (ix) other issues relating to the health, comfort, 
     productivity, and performance of occupants of the building;
       (B) promotes the development and dissemination of high-
     performance green building measurement tools that, at a 
     minimum, may be used--
       (i) to monitor and assess the life-cycle performance of 
     facilities (including demonstration projects) built as high-
     performance green buildings; and
       (ii) to perform life-cycle assessments; and
       (C) identifies and tests new and emerging technologies for 
     high performance green buildings;
       (3) assist the budget and life-cycle costing functions of 
     the Directors' Offices under section 436(d);
       (4) study and identify potential benefits of green 
     buildings relating to security, natural disaster, and 
     emergency needs of the Federal Government; and
       (5) support other research initiatives determined by the 
     Directors' Offices.
       (b) Indoor Air Quality.--The Federal Director, in 
     consultation with the Administrator of the Environmental 
     Protection Agency and the Advisory Committee, shall develop 
     and carry out a comprehensive indoor air quality program for 
     all Federal facilities to ensure the safety of Federal 
     workers and facility occupants--
       (1) during new construction and renovation of facilities; 
     and
       (2) in existing facilities.

     SEC. 493. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT 
                   PROGRAM FOR LOCAL GOVERNMENTS.

       Title III of the Clean Air Act (42 U.S.C. 7601 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 329. DEMONSTRATION GRANT PROGRAM FOR LOCAL 
                   GOVERNMENTS.

       ``(a) Grant Program.--
       ``(1) In general.--The Administrator shall establish a 
     demonstration program under which the Administrator shall 
     provide competitive grants to assist local governments (such 
     as municipalities and counties), with respect to local 
     government buildings--
       ``(A) to deploy cost-effective technologies and practices; 
     and
       ``(B) to achieve operational cost savings, through the 
     application of cost-effective technologies and practices, as 
     verified by the Administrator.
       ``(2) Cost sharing.--
       ``(A) In general.--The Federal share of the cost of an 
     activity carried out using a grant provided under this 
     section shall be 40 percent.
       ``(B) Waiver of non-federal share.--The Administrator may 
     waive up to 100 percent of the local share of the cost of any 
     grant under this section should the Administrator determine 
     that the community is economically distressed, pursuant to 
     objective economic criteria established by the Administrator 
     in published guidelines.
       ``(3) Maximum amount.--The amount of a grant provided under 
     this subsection shall not exceed $1,000,000.
       ``(b) Guidelines.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Administrator shall issue 
     guidelines to implement the grant program established under 
     subsection (a).
       ``(2) Requirements.--The guidelines under paragraph (1) 
     shall establish--
       ``(A) standards for monitoring and verification of 
     operational cost savings through the application of cost-
     effective technologies and practices reported by grantees 
     under this section;
       ``(B) standards for grantees to implement training 
     programs, and to provide technical 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.

[[Page 33918]]

       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $20,000,000 for 
     each of fiscal years 2007 through 2012.
       ``(e) Reports.--
       ``(1) In general.--The Administrator shall provide annual 
     reports to Congress on cost savings achieved and actions 
     taken and recommendations made under this section, and any 
     recommendations for further action.
       ``(2) Final report.--The Administrator shall issue a final 
     report at the conclusion of the program, including findings, 
     a summary of total cost savings achieved, and recommendations 
     for further action.
       ``(f) Termination.--The program under this section shall 
     terminate on September 30, 2012.
       ``(g) Definitions.--In this section, the terms `cost 
     effective technologies and practices' and `operating cost 
     savings' shall have the meanings defined in section 401 of 
     the Energy Independence and Security Act of 2007.''.

     SEC. 494. GREEN BUILDING ADVISORY COMMITTEE.

       (a) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Federal Director, in 
     coordination with the Commercial Director, shall establish an 
     advisory committee, to be known as the ``Green Building 
     Advisory Committee''.
       (b) Membership.--
       (1) In general.--The Committee shall be composed of 
     representatives of, at a minimum--
       (A) each agency referred to in section 421(e); and
       (B) other relevant agencies and entities, as determined by 
     the Federal Director, including at least 1 representative of 
     each of--
       (i) State and local governmental green building programs;
       (ii) independent green building associations or councils;
       (iii) building experts, including architects, material 
     suppliers, and construction contractors;
       (iv) security advisors focusing on national security needs, 
     natural disasters, and other dire emergency situations;
       (v) public transportation industry experts; and
       (vi) environmental health experts, including those with 
     experience in children's health.
       (2) Non-federal members.--The total number of non-Federal 
     members on the Committee at any time shall not exceed 15.
       (c) Meetings.--The Federal Director shall establish a 
     regular schedule of meetings for the Committee.
       (d) Duties.--The Committee shall provide advice and 
     expertise for use by the Federal Director in carrying out the 
     duties under this subtitle, including such recommendations 
     relating to Federal activities carried out under sections 434 
     through 436 as are agreed to by a majority of the members of 
     the Committee.
       (e) FACA Exemption.--The Committee shall not be subject to 
     section 14 of the Federal Advisory Committee Act (5 U.S.C. 
     App.).

     SEC. 495. ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCE.

       (a) Establishment.--The Secretary, acting through the 
     Assistant Secretary of Energy for Energy Efficiency and 
     Renewable Energy, shall establish an Advisory Committee on 
     Energy Efficiency Finance to provide advice and 
     recommendations to the Department on energy efficiency 
     finance and investment issues, options, ideas, and trends, 
     and to assist the energy community in identifying practical 
     ways of lowering costs and increasing investments in energy 
     efficiency technologies.
       (b) Membership.--The advisory committee established under 
     this section shall have a balanced membership that shall 
     include members with expertise in--
       (1) availability of seed capital;
       (2) availability of venture capital;
       (3) availability of other sources of private equity;
       (4) investment banking with respect to corporate finance;
       (5) investment banking with respect to mergers and 
     acquisitions;
       (6) equity capital markets;
       (7) debt capital markets;
       (8) research analysis;
       (9) sales and trading;
       (10) commercial lending; and
       (11) residential lending.
       (c) Termination.--The Advisory Committee on Energy 
     Efficiency Finance shall terminate on the date that is 10 
     years after the date of enactment of this Act.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to the 
     Secretary for carrying out this section.

     TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

               Subtitle A--United States Capitol Complex

     SEC. 501. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY 
                   STUDIES.

       (a) Studies.--The Architect of the Capitol may conduct 
     feasibility studies regarding construction of photovoltaic 
     roofs for the Rayburn House Office Building and the Hart 
     Senate Office Building.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Architect of the Capitol shall 
     transmit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Rules and Administration of the Senate a report 
     on the results of the feasibility studies and recommendations 
     regarding construction of photovoltaic roofs for the 
     buildings referred to in subsection (a).
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $500,000.

     SEC. 502. CAPITOL COMPLEX E-85 REFUELING STATION.

       (a) Construction.--The Architect of the Capitol may 
     construct a fuel tank and pumping system for E-85 fuel at or 
     within close proximity to the Capitol Grounds Fuel Station.
       (b) Use.--The E-85 fuel tank and pumping system shall be 
     available for use by all legislative branch vehicles capable 
     of operating with E-85 fuel, subject to such other 
     legislative branch agencies reimbursing the Architect of the 
     Capitol for the costs of E-85 fuel used by such other 
     legislative branch vehicles.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $640,000 for 
     fiscal year 2008.

     SEC. 503. ENERGY AND ENVIRONMENTAL MEASURES IN CAPITOL 
                   COMPLEX MASTER PLAN.

       (a) In General.--To the maximum extent practicable, the 
     Architect of the Capitol shall include energy efficiency and 
     conservation measures, greenhouse gas emission reduction 
     measures, and other appropriate environmental measures in the 
     Capitol Complex Master Plan.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Architect of the Capitol shall 
     submit to the Committee on Transportation and Infrastructure 
     of the House of Representatives and the Committee on Rules 
     and Administration of the Senate a report on the energy 
     efficiency and conservation measures, greenhouse gas emission 
     reduction measures, and other appropriate environmental 
     measures included in the Capitol Complex Master Plan pursuant 
     to subsection (a).

     SEC. 504. PROMOTING MAXIMUM EFFICIENCY IN OPERATION OF 
                   CAPITOL POWER PLANT.

       (a) Steam Boilers.--
       (1) In general.--The Architect of the Capitol shall take 
     such steps as may be necessary to operate the steam boilers 
     at the Capitol Power Plant in the most energy efficient 
     manner possible to minimize carbon emissions and operating 
     costs, including adjusting steam pressures and adjusting the 
     operation of the boilers to take into account variations in 
     demand, including seasonality, for the use of the system.
       (2) Effective date.--The Architect shall implement the 
     steps required under paragraph (1) not later than 30 days 
     after the date of the enactment of this Act.
       (b) Chiller Plant.--
       (1) In general.--The Architect of the Capitol shall take 
     such steps as may be necessary to operate the chiller plant 
     at the Capitol Power Plant in the most energy efficient 
     manner possible to minimize carbon emissions and operating 
     costs, including adjusting water temperatures and adjusting 
     the operation of the chillers to take into account variations 
     in demand, including seasonality, for the use of the system.
       (2) Effective date.--The Architect shall implement the 
     steps required under paragraph (1) not later than 30 days 
     after the date of the enactment of this Act.
       (c) Meters.--Not later than 90 days after the date of the 
     enactment of this Act, the Architect of the Capitol shall 
     evaluate the accuracy of the meters in use at the Capitol 
     Power Plant and correct them as necessary.
       (d) Report on Implementation.--Not later than 180 days 
     after the date of the enactment of this Act, the Architect of 
     the Capitol shall complete the implementation of the 
     requirements of this section and submit a report describing 
     the actions taken and the energy efficiencies achieved to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives, the Committee on Commerce, Science, and 
     Transportation of the Senate, the Committee on House 
     Administration of the House of Representatives, and the 
     Committee on Rules and Administration of the Senate.

     SEC. 505. CAPITOL POWER PLANT CARBON DIOXIDE EMISSIONS 
                   FEASIBILITY STUDY AND DEMONSTRATION PROJECTS.

       The first section of the Act of March 4, 1911 (2 U.S.C. 
     2162; 36 Stat. 1414, chapter 285) is amended in the seventh 
     undesignated paragraph (relating to the Capitol power plant) 
     under the heading ``Public Buildings'', under the heading 
     ``Under the Department of Interior''--
       (1) by striking ``ninety thousand dollars:'' and inserting 
     $90,000.''; and
       (2) by striking ``Provided, That hereafter the'' and all 
     that follows through the end of the proviso and inserting the 
     following:
       ``(a) Designation.--The heating, lighting, and power plant 
     constructed under the terms of the Act approved April 28, 
     1904 (33 Stat. 479, chapter 1762) shall be known as the 
     `Capitol Power Plant'.
       ``(b) Definition.--In this section, the term `carbon 
     dioxide energy efficiency' means the

[[Page 33919]]

     quantity of electricity used to power equipment for carbon 
     dioxide capture and storage or use.
       ``(c) Feasibility Study.--The Architect of the Capitol 
     shall conduct a feasibility study evaluating the available 
     methods to capture, store, and use carbon dioxide emitted 
     from the Capitol Power Plant as a result of burning fossil 
     fuels. In carrying out the feasibility study, the Architect 
     of the Capitol is encouraged to consult with individuals with 
     expertise in carbon capture and storage or use, including 
     experts with the Environmental Protection Agency, Department 
     of Energy, academic institutions, non-profit organizations, 
     and industry, as appropriate. The study shall consider--
       ``(1) the availability of technologies to capture and store 
     or use Capitol Power Plant carbon dioxide emissions;
       ``(2) strategies to conserve energy and reduce carbon 
     dioxide emissions at the Capitol Power Plant; and
       ``(3) other factors as determined by the Architect of the 
     Capitol.
       ``(d) Demonstration Projects.--
       ``(1) In general.--If the feasibility study determines that 
     a demonstration project to capture and store or use Capitol 
     Power Plant carbon dioxide emissions is technologically 
     feasible and economically justified (including direct and 
     indirect economic and environmental benefits), the Architect 
     of the Capitol may conduct one or more demonstration projects 
     to capture and store or use carbon dioxide emitted from the 
     Capitol Power Plant as a result of burning fossil fuels.
       ``(2) Factors for consideration.--In carrying out such 
     demonstration projects, the Architect of the Capitol shall 
     consider--
       ``(A) the amount of Capitol Power Plant carbon dioxide 
     emissions to be captured and stored or used;
       ``(B) whether the proposed project is able to reduce air 
     pollutants other than carbon dioxide;
       ``(C) the carbon dioxide energy efficiency of the proposed 
     project;
       ``(D) whether the proposed project is able to use carbon 
     dioxide emissions;
       ``(E) whether the proposed project could be expanded to 
     significantly increase the amount of Capitol Power Plant 
     carbon dioxide emissions to be captured and stored or used;
       ``(F) the potential environmental, energy, and educational 
     benefits of demonstrating the capture and storage or use of 
     carbon dioxide at the U.S. Capitol; and
       ``(G) other factors as determined by the Architect of the 
     Capitol.
       ``(3) Terms and conditions.--A demonstration project funded 
     under this section shall be subject to such terms and 
     conditions as the Architect of the Capitol may prescribe.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the feasibility study and 
     demonstration project $3,000,000. Such sums shall remain 
     available until expended.''.

           Subtitle B--Energy Savings Performance Contracting

     SEC. 511. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS.

       (a) In General.--Section 801(a)(2)(D) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(D)) is 
     amended--
       (1) in clause (ii), by inserting ``and'' after the 
     semicolon at the end;
       (2) by striking clause (iii); and
       (3) by redesignating clause (iv) as clause (iii).
       (b) Reports.--Section 548(a)(2) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8258(a)(2)) is amended by 
     inserting ``and any termination penalty exposure'' after 
     ``the energy and cost savings that have resulted from such 
     contracts''.
       (c) Conforming Amendment.--Section 2913 of title 10, United 
     States Code, is amended by striking subsection (e).

     SEC. 512. FINANCING FLEXIBILITY.

       Section 801(a)(2) of the National Energy Conservation 
     Policy Act (42 U.S.C. 8287(a)(2)) is amended by adding at the 
     end the following:
       ``(E) Funding options.--In carrying out a contract under 
     this title, a Federal agency may use any combination of--
       ``(i) appropriated funds; and
       ``(ii) private financing under an energy savings 
     performance contract.''.

     SEC. 513. PROMOTING LONG-TERM ENERGY SAVINGS PERFORMANCE 
                   CONTRACTS AND VERIFYING SAVINGS.

       Section 801(a)(2) of the National Energy Conservation 
     Policy Act (42 U.S.C. 8287(a)(2)) (as amended by section 512) 
     is amended--
       (1) in subparagraph (D), by inserting ``beginning on the 
     date of the delivery order'' after ``25 years''; and
       (2) by adding at the end the following:
       ``(F) Promotion of contracts.--In carrying out this 
     section, a Federal agency shall not--
       ``(i) establish a Federal agency policy that limits the 
     maximum contract term under subparagraph (D) to a period 
     shorter than 25 years; or
       ``(ii) limit the total amount of obligations under energy 
     savings performance contracts or other private financing of 
     energy savings measures.
       ``(G) Measurement and verification requirements for private 
     financing.--
       ``(i) In general.--In the case of energy savings 
     performance contracts, the evaluations and savings 
     measurement and verification required under paragraphs (2) 
     and (4) of section 543(f) shall be used by a Federal agency 
     to meet the requirements for the need for energy audits, 
     calculation of energy savings, and any other evaluation of 
     costs and savings needed to implement the guarantee of 
     savings under this section.
       ``(ii) Modification of existing contracts.--Not later than 
     18 months after the date of enactment of this subparagraph, 
     each Federal agency shall, to the maximum extent practicable, 
     modify any indefinite delivery and indefinite quantity energy 
     savings performance contracts, and other indefinite delivery 
     and indefinite quantity contracts using private financing, to 
     conform to the amendments made by subtitle B of title V of 
     the Energy Independence and Security Act of 2007.''.

     SEC. 514. PERMANENT REAUTHORIZATION.

       Section 801 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8287) is amended by striking subsection (c).

     SEC. 515. DEFINITION OF ENERGY SAVINGS.

       Section 804(2) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8287c(2)) is amended--
       (1) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively, and indenting 
     appropriately;
       (2) by striking ``means a reduction'' and inserting 
     ``means--
       ``(A) a reduction'';
       (3) by striking the period at the end and inserting a 
     semicolon; and
       (4) by adding at the end the following:
       ``(B) the increased efficient use of an existing energy 
     source by cogeneration or heat recovery;
       ``(C) if otherwise authorized by Federal or State law 
     (including regulations), the sale or transfer of electrical 
     or thermal energy generated on-site from renewable energy 
     sources or cogeneration, but in excess of Federal needs, to 
     utilities or non-Federal energy users; and
       ``(D) the increased efficient use of existing water sources 
     in interior or exterior applications.''.

     SEC. 516. RETENTION OF SAVINGS.

       Section 546(c) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8256(c)) is amended by striking paragraph (5).

     SEC. 517. TRAINING FEDERAL CONTRACTING OFFICERS TO NEGOTIATE 
                   ENERGY EFFICIENCY CONTRACTS.

       (a) Program.--The Secretary shall create and administer in 
     the Federal Energy Management Program a training program to 
     educate Federal contract negotiation and contract management 
     personnel so that the contract officers are prepared to--
       (1) negotiate energy savings performance contracts;
       (2) conclude effective and timely contracts for energy 
     efficiency services with all companies offering energy 
     efficiency services; and
       (3) review Federal contracts for all products and services 
     for the potential energy efficiency opportunities and 
     implications of the contracts.
       (b) Schedule.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall plan, staff, 
     announce, and begin training under the Federal Energy 
     Management Program.
       (c) Personnel to Be Trained.--Personnel appropriate to 
     receive training under the Federal Energy Management Program 
     shall be selected by and sent for the training from--
       (1) the Department of Defense;
       (2) the Department of Veterans Affairs;
       (3) the Department;
       (4) the General Services Administration;
       (5) the Department of Housing and Urban Development;
       (6) the United States Postal Service; and
       (7) all other Federal agencies and departments that enter 
     contracts for buildings, building services, electricity and 
     electricity services, natural gas and natural gas services, 
     heating and air conditioning services, building fuel 
     purchases, and other types of procurement or service 
     contracts determined by the Secretary, in carrying out the 
     Federal Energy Management Program, to offer the potential for 
     energy savings and greenhouse gas emission reductions if 
     negotiated with taking into account those goals.
       (d) Trainers.--Training under the Federal Energy Management 
     Program may be conducted by--
       (1) attorneys or contract officers with experience in 
     negotiating and managing contracts described in subsection 
     (c)(7) from any agency, except that the Secretary shall 
     reimburse the related salaries and expenses of the attorneys 
     or contract officers from amounts made available for carrying 
     out this section to the extent the attorneys or contract 
     officers are not employees of the Department; and
       (2) private experts hired by the Secretary for the purposes 
     of this section, except that the Secretary may not hire 
     experts who are simultaneously employed by any company under 
     contract to provide energy efficiency services to the Federal 
     Government.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $750,000 for each of fiscal years 2008 through 2012.

[[Page 33920]]



     SEC. 518. STUDY OF ENERGY AND COST SAVINGS IN NONBUILDING 
                   APPLICATIONS.

       (a) Definitions.--In this section:
       (1) Nonbuilding application.--The term ``nonbuilding 
     application'' means--
       (A) any class of vehicles, devices, or equipment that is 
     transportable under the power of the applicable vehicle, 
     device, or equipment by land, sea, or air and that consumes 
     energy from any fuel source for the purpose of--
       (i) that transportation; or
       (ii) maintaining a controlled environment within the 
     vehicle, device, or equipment; and
       (B) any federally-owned equipment used to generate 
     electricity or transport water.
       (2) Secondary savings.--
       (A) In general.--The term ``secondary savings'' means 
     additional energy or cost savings that are a direct 
     consequence of the energy savings that result from the energy 
     efficiency improvements that were financed and implemented 
     pursuant to an energy savings performance contract.
       (B) Inclusions.--The term ``secondary savings'' includes--
       (i) energy and cost savings that result from a reduction in 
     the need for fuel delivery and logistical support;
       (ii) personnel cost savings and environmental benefits; and
       (iii) in the case of electric generation equipment, the 
     benefits of increased efficiency in the production of 
     electricity, including revenues received by the Federal 
     Government from the sale of electricity so produced.
       (b) Study.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary and the Secretary of 
     Defense shall jointly conduct, and submit to Congress and the 
     President a report of, a study of the potential for the use 
     of energy savings performance contracts to reduce energy 
     consumption and provide energy and cost savings in 
     nonbuilding applications.
       (2) Requirements.--The study under this subsection shall 
     include--
       (A) an estimate of the potential energy and cost savings to 
     the Federal Government, including secondary savings and 
     benefits, from increased efficiency in nonbuilding 
     applications;
       (B) an assessment of the feasibility of extending the use 
     of energy savings performance contracts to nonbuilding 
     applications, including an identification of any regulatory 
     or statutory barriers to that use; and
       (C) such recommendations as the Secretary and Secretary of 
     Defense determine to be appropriate.

           Subtitle C--Energy Efficiency in Federal Agencies

     SEC. 521. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT 
                   OF ENERGY HEADQUARTERS BUILDING.

       (a) In General.--The Administrator of General Services 
     shall install a photovoltaic system, as set forth in the Sun 
     Wall Design Project, for the headquarters building of the 
     Department located at 1000 Independence Avenue, SW., 
     Washington, DC, commonly known as the Forrestal Building.
       (b) Funding.--There shall be available from the Federal 
     Buildings Fund established by section 592 of title 40, United 
     States Code, $30,000,000 to carry out this section. Such sums 
     shall be derived from the unobligated balance of amounts made 
     available from the Fund for fiscal year 2007, and prior 
     fiscal years, for repairs and alternations and other 
     activities (excluding amounts made available for the energy 
     program). Such sums shall remain available until expended.

     SEC. 522. PROHIBITION ON INCANDESCENT LAMPS BY COAST GUARD.

       (a) Prohibition.--Except as provided by subsection (b), on 
     and after January 1, 2009, a general service incandescent 
     lamp shall not be purchased or installed in a Coast Guard 
     facility by or on behalf of the Coast Guard.
       (b) Exception.--A general service incandescent lamp may be 
     purchased, installed, and used in a Coast Guard facility 
     whenever the application of a general service incandescent 
     lamp is--
       (1) necessary due to purpose or design, including medical, 
     security, and industrial applications;
       (2) reasonable due to the architectural or historical value 
     of a light fixture installed before January 1, 2009; or
       (3) the Commandant of the Coast Guard determines that 
     operational requirements necessitate the use of a general 
     service incandescent lamp.
       (c) Limitation.--In this section, the term ``facility'' 
     does not include a vessel or aircraft of the Coast Guard.

     SEC. 523. STANDARD RELATING TO SOLAR HOT WATER HEATERS.

       Section 305(a)(3)(A) of the Energy Conservation and 
     Production Act (42 U.S.C. 6834(a)(3)(A)) is amended--
       (1) in clause (i)(II), by striking ``and'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(iii) if lifecycle cost-effective, as compared to other 
     reasonably available technologies, not less than 30 percent 
     of the hot water demand for each new Federal building or 
     Federal building undergoing a major renovation be met through 
     the installation and use of solar hot water heaters.''.

     SEC. 524. FEDERALLY-PROCURED APPLIANCES WITH STANDBY POWER.

       Section 553 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8259b) is amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following:
       ``(e) Federally-Procured Appliances With Standby Power.--
       ``(1) Definition of eligible product.--In this subsection, 
     the term `eligible product' means a commercially available, 
     off-the-shelf product that--
       ``(A)(i) uses external standby power devices; or
       ``(ii) contains an internal standby power function; and
       ``(B) is included on the list compiled under paragraph (4).
       ``(2) Federal purchasing requirement.--Subject to paragraph 
     (3), if an agency purchases an eligible product, the agency 
     shall purchase--
       ``(A) an eligible product that uses not more than 1 watt in 
     the standby power consuming mode of the eligible product; or
       ``(B) if an eligible product described in subparagraph (A) 
     is not available, the eligible product with the lowest 
     available standby power wattage in the standby power 
     consuming mode of the eligible product.
       ``(3) Limitation.--The requirements of paragraph (2) shall 
     apply to a purchase by an agency only if--
       ``(A) the lower-wattage eligible product is--
       ``(i) lifecycle cost-effective; and
       ``(ii) practicable; and
       ``(B) the utility and performance of the eligible product 
     is not compromised by the lower wattage requirement.
       ``(4) Eligible products.--The Secretary, in consultation 
     with the Secretary of Defense, the Administrator of the 
     Environmental Protection Agency, and the Administrator of 
     General Services, shall compile a publicly accessible list of 
     cost-effective eligible products that shall be subject to the 
     purchasing requirements of paragraph (2).''.

     SEC. 525. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

       (a) Amendments.--Section 553 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8259b) is amended--
       (1) in subsection (b)(1), by inserting ``in a product 
     category covered by the Energy Star program or the Federal 
     Energy Management Program for designated products'' after 
     ``energy consuming product''; and
       (2) in the second sentence of subsection (c)--
       (A) by inserting ``list in their catalogues, represent as 
     available, and'' after ``Logistics Agency shall''; and
       (B) by striking ``where the agency'' and inserting ``in 
     which the head of the agency''.
       (b) Catalogue Listing Deadline.--Not later than 9 months 
     after the date of enactment of this Act, the General Services 
     Administration and the Defense Logistics Agency shall ensure 
     that the requirement established by the amendment made by 
     subsection (a)(2)(A) has been fully complied with.

     SEC. 526. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

       No Federal agency shall enter into a contract for 
     procurement of an alternative or synthetic fuel, including a 
     fuel produced from nonconventional petroleum sources, for any 
     mobility-related use, other than for research or testing, 
     unless the contract specifies that the lifecycle greenhouse 
     gas emissions associated with the production and combustion 
     of the fuel supplied under the contract must, on an ongoing 
     basis, be less than or equal to such emissions from the 
     equivalent conventional fuel produced from conventional 
     petroleum sources.

     SEC. 527. GOVERNMENT EFFICIENCY STATUS REPORTS.

       (a) In General.--Each Federal agency subject to any of the 
     requirements of this title or the amendments made by this 
     title shall compile and submit to the Director of the Office 
     of Management and Budget an annual Government efficiency 
     status report on--
       (1) compliance by the agency with each of the requirements 
     of this title and the amendments made by this title;
       (2) the status of the implementation by the agency of 
     initiatives to improve energy efficiency, reduce energy 
     costs, and reduce emissions of greenhouse gases; and
       (3) savings to the taxpayers of the United States resulting 
     from mandated improvements under this title and the 
     amendments made by this title
       (b) Submission.--The report shall be submitted--
       (1) to the Director at such time as the Director requires;
       (2) in electronic, not paper, format; and
       (3) consistent with related reporting requirements.

     SEC. 528. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.

       (a) Reports.--Not later than April 1 of each year, the 
     Director of the Office of Management and Budget shall submit 
     an annual Government efficiency report to the Committee on 
     Oversight and Government Reform

[[Page 33921]]

     of the House of Representatives and the Committee on 
     Governmental Affairs of the Senate, which shall contain--
       (1) a summary of the information reported by agencies under 
     section 527;
       (2) an evaluation of the overall progress of the Federal 
     Government toward achieving the goals of this title and the 
     amendments made by this title; and
       (3) recommendations for additional actions necessary to 
     meet the goals of this title and the amendments made by this 
     title.
       (b) Scorecards.--The Director of the Office of Management 
     and Budget shall include in any annual energy scorecard the 
     Director is otherwise required to submit a description of the 
     compliance of each agency with the requirements of this title 
     and the amendments made by this title.

     SEC. 529. ELECTRICITY SECTOR DEMAND RESPONSE.

       (a) In General.--Title V of the National Energy 
     Conservation Policy Act (42 U.S.C. 8241 et seq.) is amended 
     by adding at the end the following:

                    ``PART 5--PEAK DEMAND REDUCTION

     ``SEC. 571. NATIONAL ACTION PLAN FOR DEMAND RESPONSE.

       ``(a) National Assessment and Report.--The Federal Energy 
     Regulatory Commission (`Commission') shall conduct a National 
     Assessment of Demand Response. The Commission shall, within 
     18 months of the date of enactment of this part, submit a 
     report to Congress that includes each of the following:
       ``(1) Estimation of nationwide demand response potential in 
     5 and 10 year horizons, including data on a State-by-State 
     basis, and a methodology for updates of such estimates on an 
     annual basis.
       ``(2) Estimation of how much of this potential can be 
     achieved within 5 and 10 years after the enactment of this 
     part accompanied by specific policy recommendations that if 
     implemented can achieve the estimated potential. Such 
     recommendations shall include options for funding and/or 
     incentives for the development of demand response resources.
       ``(3) The Commission shall further note any barriers to 
     demand response programs offering flexible, non-
     discriminatory, and fairly compensatory terms for the 
     services and benefits made available, and shall provide 
     recommendations for overcoming such barriers.
       ``(4) The Commission shall seek to take advantage of 
     preexisting research and ongoing work, and shall insure that 
     there is no duplication of effort.
       ``(b) National Action Plan on Demand Response.--The 
     Commission shall further develop a National Action Plan on 
     Demand Response, soliciting and accepting input and 
     participation from a broad range of industry stakeholders, 
     State regulatory utility commissioners, and non-governmental 
     groups. The Commission shall seek consensus where possible, 
     and decide on optimum solutions to issues that defy 
     consensus. Such Plan shall be completed within one year after 
     the completion of the National Assessment of Demand Response, 
     and shall meet each of the following objectives:
       ``(1) Identification of requirements for technical 
     assistance to States to allow them to maximize the amount of 
     demand response resources that can be developed and deployed.
       ``(2) Design and identification of requirements for 
     implementation of a national communications program that 
     includes broad-based customer education and support.
       ``(3) Development or identification of analytical tools, 
     information, model regulatory provisions, model contracts, 
     and other support materials for use by customers, states, 
     utilities and demand response providers.
       ``(c) Upon completion, the National Action Plan on Demand 
     Response shall be published, together with any favorable and 
     dissenting comments submitted by participants in its 
     preparation. Six months after publication, the Commission, 
     together with the Secretary of Energy, shall submit to 
     Congress a proposal to implement the Action Plan, including 
     specific proposed assignments of responsibility, proposed 
     budget amounts, and any agreements secured for participation 
     from State and other participants.
       ``(d) Authorization.--There are authorized to be 
     appropriated to the Commission to carry out this section not 
     more than $10,000,000 for each of the fiscal years 2008, 
     2009, and 2010.''.
       (b) Table of Contents.--The table of contents for the 
     National Energy Conservation Policy Act (42 U.S.C. 8201 note) 
     is amended by adding after the items relating to part 4 of 
     title V the following:

                    ``Part 5--Peak Demand Reduction

``Sec. 571. National Action Plan for Demand Response.''.

          Subtitle D--Energy Efficiency of Public Institutions

     SEC. 531. REAUTHORIZATION OF STATE ENERGY PROGRAMS.

       Section 365(f) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6325(f)) is amended by striking ``$100,000,000 for 
     each of the fiscal years 2006 and 2007 and $125,000,000 for 
     fiscal year 2008'' and inserting ``$125,000,000 for each of 
     fiscal years 2007 through 2012''.

     SEC. 532. UTILITY ENERGY EFFICIENCY PROGRAMS.

       (a) Electric Utilities.--Section 111(d) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 
     is amended by adding at the end the following:
       ``(16) Integrated resource planning.--Each electric utility 
     shall--
       ``(A) integrate energy efficiency resources into utility, 
     State, and regional plans; and
       ``(B) adopt policies establishing cost-effective energy 
     efficiency as a priority resource.
       ``(17) Rate design modifications to promote energy 
     efficiency investments.--
       ``(A) In general.--The rates allowed to be charged by any 
     electric utility shall--
       ``(i) align utility incentives with the delivery of cost-
     effective energy efficiency; and
       ``(ii) promote energy efficiency investments.
       ``(B) Policy options.--In complying with subparagraph (A), 
     each State regulatory authority and each nonregulated utility 
     shall consider--
       ``(i) removing the throughput incentive and other 
     regulatory and management disincentives to energy efficiency;
       ``(ii) providing utility incentives for the successful 
     management of energy efficiency programs;
       ``(iii) including the impact on adoption of energy 
     efficiency as 1 of the goals of retail rate design, 
     recognizing that energy efficiency must be balanced with 
     other objectives;
       ``(iv) adopting rate designs that encourage energy 
     efficiency for each customer class;
       ``(v) allowing timely recovery of energy efficiency-related 
     costs; and
       ``(vi) offering home energy audits, offering demand 
     response programs, publicizing the financial and 
     environmental benefits associated with making home energy 
     efficiency improvements, and educating homeowners about all 
     existing Federal and State incentives, including the 
     availability of low-cost loans, that make energy efficiency 
     improvements more affordable.''.
       (b) Natural Gas Utilities.--Section 303(b) of the Public 
     Utility Regulatory Policies Act of 1978 (15 U.S.C. 3203(b)) 
     is amended by adding at the end the following:
       ``(5) Energy efficiency.--Each natural gas utility shall--
       ``(A) integrate energy efficiency resources into the plans 
     and planning processes of the natural gas utility; and
       ``(B) adopt policies that establish energy efficiency as a 
     priority resource in the plans and planning processes of the 
     natural gas utility.
       ``(6) Rate design modifications to promote energy 
     efficiency investments.--
       ``(A) In general.--The rates allowed to be charged by a 
     natural gas utility shall align utility incentives with the 
     deployment of cost-effective energy efficiency.
       ``(B) Policy options.--In complying with subparagraph (A), 
     each State regulatory authority and each nonregulated utility 
     shall consider--
       ``(i) separating fixed-cost revenue recovery from the 
     volume of transportation or sales service provided to the 
     customer;
       ``(ii) providing to utilities incentives for the successful 
     management of energy efficiency programs, such as allowing 
     utilities to retain a portion of the cost-reducing benefits 
     accruing from the programs;
       ``(iii) promoting the impact on adoption of energy 
     efficiency as 1 of the goals of retail rate design, 
     recognizing that energy efficiency must be balanced with 
     other objectives; and
       ``(iv) adopting rate designs that encourage energy 
     efficiency for each customer class.
     For purposes of applying the provisions of this subtitle to 
     this paragraph, any reference in this subtitle to the date of 
     enactment of this Act shall be treated as a reference to the 
     date of enactment of this paragraph.''.
       (c) Conforming Amendment.--Section 303(a) of the Public 
     Utility Regulatory Policies Act of 1978 U.S.C. 3203(a)) is 
     amended by striking ``and (4)'' inserting ``(4), (5), and 
     (6)''.

      Subtitle E--Energy Efficiency and Conservation Block Grants

     SEC. 541. DEFINITIONS.

       In this subtitle:
       (1) Eligible entity.--The term ``eligible entity'' means--
       (A) a State;
       (B) an eligible unit of local government; and
       (C) an Indian tribe.
       (2) Eligible unit of local government.--The term ``eligible 
     unit of local government'' means--
       (A) an eligible unit of local government-alternative 1; and
       (B) an eligible unit of local government-alternative 2.
       (3)(A) Eligible unit of local government-alternative 1.--
     The term ``eligible unit of local government-alternative 1'' 
     means--
       (i) a city with a population--
       (I) of at least 35,000; or
       (II) that causes the city to be 1 of the 10 highest-
     populated cities of the State in which the city is located; 
     and
       (ii) a county with a population--
       (I) of at least 200,000; or
       (II) that causes the county to be 1 of the 10 highest-
     populated counties of the State in which the county is 
     located.

[[Page 33922]]

       (B) Eligible unit of local government-alternative 2.--The 
     term ``eligible unit of local government-alternative 2'' 
     means--
       (i) a city with a population of at least 50,000; or
       (ii) a county with a population of at least 200,000.
       (4) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (5) Program.--The term ``program'' means the Energy 
     Efficiency and Conservation Block Grant Program established 
     under section 542(a).
       (6) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.

     SEC. 542. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT 
                   PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     program, to be known as the ``Energy Efficiency and 
     Conservation Block Grant Program'', under which the Secretary 
     shall provide grants to eligible entities in accordance with 
     this subtitle.
       (b) Purpose.--The purpose of the program shall be to assist 
     eligible entities in implementing strategies--
       (1) to reduce fossil fuel emissions created as a result of 
     activities within the jurisdictions of eligible entities in 
     manner that--
       (A) is environmentally sustainable; and
       (B) to the maximum extent practicable, maximizes benefits 
     for local and regional communities;
       (2) to reduce the total energy use of the eligible 
     entities; and
       (3) to improve energy efficiency in--
       (A) the transportation sector;
       (B) the building sector; and
       (C) other appropriate sectors.

     SEC. 543. ALLOCATION OF FUNDS.

       (a) In General.--Of amounts made available to provide 
     grants under this subtitle for each fiscal year, the 
     Secretary shall allocate--
       (1) 68 percent to eligible units of local government in 
     accordance with subsection (b);
       (2) 28 percent to States in accordance with subsection (c);
       (3) 2 percent to Indian tribes in accordance with 
     subsection (d); and
       (4) 2 percent for competitive grants under section 546.
       (b) Eligible Units of Local Government.--Of amounts 
     available for distribution to eligible units of local 
     government under subsection (a)(1), the Secretary shall 
     provide grants to eligible units of local government under 
     this section based on a formula established by the Secretary 
     according to--
       (1) the populations served by the eligible units of local 
     government, according to the latest available decennial 
     census; and
       (2) the daytime populations of the eligible units of local 
     government and other similar factors (such as square footage 
     of commercial, office, and industrial space), as determined 
     by the Secretary.
       (c) States.--Of amounts available for distribution to 
     States under subsection (a)(2), the Secretary shall provide--
       (1) not less than 1.25 percent to each State; and
       (2) the remainder among the States, based on a formula to 
     be established by the Secretary that takes into account--
       (A) the population of each State; and
       (B) any other criteria that the Secretary determines to be 
     appropriate.
       (d) Indian Tribes.--Of amounts available for distribution 
     to Indian tribes under subsection (a)(3), the Secretary shall 
     establish a formula for allocation of the amounts to Indian 
     tribes, taking into account any factors that the Secretary 
     determines to be appropriate.
       (e) Publication of Allocation Formulas.--Not later than 90 
     days before the beginning of each fiscal year for which 
     grants are provided under this subtitle, the Secretary shall 
     publish in the Federal Register the formulas for allocation 
     established under this section.
       (f) State and Local Advisory Committee.--The Secretary 
     shall establish a State and local advisory committee to 
     advise the Secretary regarding administration, 
     implementation, and evaluation of the program.

     SEC. 544. USE OF FUNDS.

       An eligible entity may use a grant received under this 
     subtitle to carry out activities to achieve the purposes of 
     the program, including--
       (1) development and implementation of an energy efficiency 
     and conservation strategy under section 545(b);
       (2) retaining technical consultant services to assist the 
     eligible entity in the development of such a strategy, 
     including--
       (A) formulation of energy efficiency, energy conservation, 
     and energy usage goals;
       (B) identification of strategies to achieve those goals--
       (i) through efforts to increase energy efficiency and 
     reduce energy consumption; and
       (ii) by encouraging behavioral changes among the population 
     served by the eligible entity;
       (C) development of methods to measure progress in achieving 
     the goals;
       (D) development and publication of annual reports to the 
     population served by the eligible entity describing--
       (i) the strategies and goals; and
       (ii) the progress made in achieving the strategies and 
     goals during the preceding calendar year; and
       (E) other services to assist in the implementation of the 
     energy efficiency and conservation strategy;
       (3) conducting residential and commercial building energy 
     audits;
       (4) establishment of financial incentive programs for 
     energy efficiency improvements;
       (5) the provision of grants to nonprofit organizations and 
     governmental agencies for the purpose of performing energy 
     efficiency retrofits;
       (6) development and implementation of energy efficiency and 
     conservation programs for buildings and facilities within the 
     jurisdiction of the eligible entity, including--
       (A) design and operation of the programs;
       (B) identifying the most effective methods for achieving 
     maximum participation and efficiency rates;
       (C) public education;
       (D) measurement and verification protocols; and
       (E) identification of energy efficient technologies;
       (7) development and implementation of programs to conserve 
     energy used in transportation, including--
       (A) use of flex time by employers;
       (B) satellite work centers;
       (C) development and promotion of zoning guidelines or 
     requirements that promote energy efficient development;
       (D) development of infrastructure, such as bike lanes and 
     pathways and pedestrian walkways;
       (E) synchronization of traffic signals; and
       (F) other measures that increase energy efficiency and 
     decrease energy consumption;
       (8) development and implementation of building codes and 
     inspection services to promote building energy efficiency;
       (9) application and implementation of energy distribution 
     technologies that significantly increase energy efficiency, 
     including--
       (A) distributed resources; and
       (B) district heating and cooling systems;
       (10) activities to increase participation and efficiency 
     rates for material conservation programs, including source 
     reduction, recycling, and recycled content procurement 
     programs that lead to increases in energy efficiency;
       (11) the purchase and implementation of technologies to 
     reduce, capture, and, to the maximum extent practicable, use 
     methane and other greenhouse gases generated by landfills or 
     similar sources;
       (12) replacement of traffic signals and street lighting 
     with energy efficient lighting technologies, including--
       (A) light emitting diodes; and
       (B) any other technology of equal or greater energy 
     efficiency;
       (13) development, implementation, and installation on or in 
     any government building of the eligible entity of onsite 
     renewable energy technology that generates electricity from 
     renewable resources, including--
       (A) solar energy;
       (B) wind energy;
       (C) fuel cells; and
       (D) biomass; and
       (14) any other appropriate activity, as determined by the 
     Secretary, in consultation with--
       (A) the Administrator of the Environmental Protection 
     Agency;
       (B) the Secretary of Transportation; and
       (C) the Secretary of Housing and Urban Development.

     SEC. 545. REQUIREMENTS FOR ELIGIBLE ENTITIES.

       (a) Construction Requirement.--
       (1) In general.--To be eligible to receive a grant under 
     the program, each eligible applicant shall submit to the 
     Secretary a written assurance that all laborers and mechanics 
     employed by any contractor or subcontractor of the eligible 
     entity during any construction, alteration, or repair 
     activity funded, in whole or in part, by the grant shall be 
     paid wages at rates not less than the prevailing wages for 
     similar construction activities in the locality, as 
     determined by the Secretary of Labor, in accordance with 
     sections 3141 through 3144, 3146, and 3147 of title 40, 
     United States Code.
       (2) Secretary of labor.--With respect to the labor 
     standards referred to in paragraph (1), the Secretary of 
     Labor shall have the authority and functions described in--
       (A) Reorganization Plan Numbered 14 of 1950 (5 U.S.C. 903 
     note); and
       (B) section 3145 of title 40, United States Code.
       (b) Eligible Units of Local Government and Indian Tribes.--
       (1) Proposed strategy.--
       (A) In general.--Not later than 1 year after the date on 
     which an eligible unit of local government or Indian tribe 
     receives a grant under this subtitle, the eligible unit of 
     local government or Indian tribe shall submit to the 
     Secretary a proposed energy efficiency and conservation 
     strategy in accordance with this paragraph.
       (B) Inclusions.--The proposed strategy under subparagraph 
     (A) shall include--

[[Page 33923]]

       (i) a description of the goals of the eligible unit of 
     local government or Indian tribe, in accordance with the 
     purposes of this subtitle, for increased energy efficiency 
     and conservation in the jurisdiction of the eligible unit of 
     local government or Indian tribe; and
       (ii) a plan for the use of the grant to assist the eligible 
     unit of local government or Indian tribe in achieving those 
     goals, in accordance with section 544.
       (C) Requirements for eligible units of local government.--
     In developing the strategy under subparagraph (A), an 
     eligible unit of local government shall--
       (i) take into account any plans for the use of funds by 
     adjacent eligible units of local governments that receive 
     grants under the program; and
       (ii) coordinate and share information with the State in 
     which the eligible unit of local government is located 
     regarding activities carried out using the grant to maximize 
     the energy efficiency and conservation benefits under this 
     subtitle.
       (2) Approval by secretary.--
       (A) In general.--The Secretary shall approve or disapprove 
     a proposed strategy under paragraph (1) by not later than 120 
     days after the date of submission of the proposed strategy.
       (B) Disapproval.--If the Secretary disapproves a proposed 
     strategy under subparagraph (A)--
       (i) the Secretary shall provide to the eligible unit of 
     local government or Indian tribe the reasons for the 
     disapproval; and
       (ii) the eligible unit of local government or Indian tribe 
     may revise and resubmit the proposed strategy as many times 
     as necessary until the Secretary approves a proposed 
     strategy.
       (C) Requirement.--The Secretary shall not provide to an 
     eligible unit of local government or Indian tribe any grant 
     under the program until a proposed strategy of the eligible 
     unit of local government or Indian tribe is approved by the 
     Secretary under this paragraph.
       (3) Limitations on use of funds.--Of amounts provided to an 
     eligible unit of local government or Indian tribe under the 
     program, an eligible unit of local government or Indian tribe 
     may use--
       (A) for administrative expenses, excluding the cost of 
     meeting the reporting requirements of this subtitle, an 
     amount equal to the greater of--
       (i) 10 percent; and
       (ii) $75,000;
       (B) for the establishment of revolving loan funds, an 
     amount equal to the greater of--
       (i) 20 percent; and
       (ii) $250,000; and
       (C) for the provision of subgrants to nongovernmental 
     organizations for the purpose of assisting in the 
     implementation of the energy efficiency and conservation 
     strategy of the eligible unit of local government or Indian 
     tribe, an amount equal to the greater of--
       (i) 20 percent; and
       (ii) $250,000.
       (4) Annual report.--Not later than 2 years after the date 
     on which funds are initially provided to an eligible unit of 
     local government or Indian tribe under the program, and 
     annually thereafter, the eligible unit of local government or 
     Indian tribe shall submit to the Secretary a report 
     describing--
       (A) the status of development and implementation of the 
     energy efficiency and conservation strategy of the eligible 
     unit of local government or Indian tribe; and
       (B) as practicable, an assessment of energy efficiency 
     gains within the jurisdiction of the eligible unit of local 
     government or Indian tribe.
       (c) States.--
       (1) Distribution of funds.--
       (A) In general.--A State that receives a grant under the 
     program shall use not less than 60 percent of the amount 
     received to provide subgrants to units of local government in 
     the State that are not eligible units of local government.
       (B) Deadline.--The State shall provide the subgrants 
     required under subparagraph (A) by not later than 180 days 
     after the date on which the Secretary approves a proposed 
     energy efficiency and conservation strategy of the State 
     under paragraph (3).
       (2) Revision of conservation plan; proposed strategy.--Not 
     later than 120 days after the date of enactment of this Act, 
     each State shall--
       (A) modify the State energy conservation plan of the State 
     under section 362 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6322) to establish additional goals for increased 
     energy efficiency and conservation in the State; and
       (B) submit to the Secretary a proposed energy efficiency 
     and conservation strategy that--
       (i) establishes a process for providing subgrants as 
     required under paragraph (1); and
       (ii) includes a plan of the State for the use of funds 
     received under a the program to assist the State in achieving 
     the goals established under subparagraph (A), in accordance 
     with sections 542(b) and 544.
       (3) Approval by secretary.--
       (A) In general.--The Secretary shall approve or disapprove 
     a proposed strategy under paragraph (2)(B) by not later than 
     120 days after the date of submission of the proposed 
     strategy.
       (B) Disapproval.--If the Secretary disapproves a proposed 
     strategy under subparagraph (A)--
       (i) the Secretary shall provide to the State the reasons 
     for the disapproval; and
       (ii) the State may revise and resubmit the proposed 
     strategy as many times as necessary until the Secretary 
     approves a proposed strategy.
       (C) Requirement.--The Secretary shall not provide to a 
     State any grant under the program until a proposed strategy 
     of the State is approved the Secretary under this paragraph.
       (4) Limitations on use of funds.--A State may use not more 
     than 10 percent of amounts provided under the program for 
     administrative expenses.
       (5) Annual reports.--Each State that receives a grant under 
     the program shall submit to the Secretary an annual report 
     that describes--
       (A) the status of development and implementation of the 
     energy efficiency and conservation strategy of the State 
     during the preceding calendar year;
       (B) the status of the subgrant program of the State under 
     paragraph (1);
       (C) the energy efficiency gains achieved through the energy 
     efficiency and conservation strategy of the State during the 
     preceding calendar year; and
       (D) specific energy efficiency and conservation goals of 
     the State for subsequent calendar years.

     SEC. 546. COMPETITIVE GRANTS.

       (a) In General.--Of the total amount made available for 
     each fiscal year to carry out this subtitle, the Secretary 
     shall use not less than 2 percent to provide grants under 
     this section, on a competitive basis, to--
       (1) units of local government (including Indian tribes) 
     that are not eligible entities; and
       (2) consortia of units of local government described in 
     paragraph (1).
       (b) Applications.--To be eligible to receive a grant under 
     this section, a unit of local government or consortia shall 
     submit to the Secretary an application at such time, in such 
     manner, and containing such information as the Secretary may 
     require, including a plan of the unit of local government to 
     carry out an activity described in section 544.
       (c) Priority.--In providing grants under this section, the 
     Secretary shall give priority to units of local government--
       (1) located in States with populations of less than 
     2,000,000; or
       (2) that plan to carry out projects that would result in 
     significant energy efficiency improvements or reductions in 
     fossil fuel use.

     SEC. 547. REVIEW AND EVALUATION.

       (a) In General.--The Secretary may review and evaluate the 
     performance of any eligible entity that receives a grant 
     under the program, including by conducting an audit, as the 
     Secretary determines to be appropriate.
       (b) Withholding of Funds.--The Secretary may withhold from 
     an eligible entity any portion of a grant to be provided to 
     the eligible entity under the program if the Secretary 
     determines that the eligible entity has failed to achieve 
     compliance with--
       (1) any applicable guideline or regulation of the Secretary 
     relating to the program, including the misuse or 
     misappropriation of funds provided under the program; or
       (2) the energy efficiency and conservation strategy of the 
     eligible entity.

     SEC. 548. FUNDING.

       (a) Authorization of Appropriations.--
       (1) Grants.--There is authorized to be appropriated to the 
     Secretary for the provision of grants under the program 
     $2,000,000,000 for each of fiscal years 2008 through 2012; 
     provided that 49 percent of the appropriated funds shall be 
     distributed using the definition of eligible unit of local 
     government-alternative 1 in section 541(3)(A) and 49 percent 
     of the appropriated funds shall be distributed using the 
     definition of eligible unit of local government-alternative 2 
     in section 541(3)(B).
       (2) Administrative costs.--There are authorized to be 
     appropriated to the Secretary for administrative expenses of 
     the program--
       (A) $20,000,000 for each of fiscal years 2008 and 2009;
       (B) $25,000,000 for each of fiscal years 2010 and 2011; and
       (C) $30,000,000 for fiscal year 2012.
       (b) Maintenance of Funding.--The funding provided under 
     this section shall supplement (and not supplant) other 
     Federal funding provided under--
       (1) a State energy conservation plan established under part 
     D of title III of the Energy Policy and Conservation Act (42 
     U.S.C. 6321 et seq.); or
       (2) the Weatherization Assistance Program for Low-Income 
     Persons established under part A of title IV of the Energy 
     Conservation and Production Act (42 U.S.C. 6861 et seq.).

             TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

                        Subtitle A--Solar Energy

     SEC. 601. SHORT TITLE.

       This subtitle may be cited as the ``Solar Energy Research 
     and Advancement Act of 2007''.

[[Page 33924]]



     SEC. 602. THERMAL ENERGY STORAGE RESEARCH AND DEVELOPMENT 
                   PROGRAM.

       (a) Establishment.--The Secretary shall establish a program 
     of research and development to provide lower cost and more 
     viable thermal energy storage technologies to enable the 
     shifting of electric power loads on demand and extend the 
     operating time of concentrating solar power electric 
     generating plants.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     section $5,000,000 for fiscal year 2008, $7,000,000 for 
     fiscal year 2009, $9,000,000 for fiscal year 2010, 
     $10,000,000 for fiscal year 2011, and $12,000,000 for fiscal 
     year 2012.

     SEC. 603. CONCENTRATING SOLAR POWER COMMERCIAL APPLICATION 
                   STUDIES.

       (a) Integration.--The Secretary shall conduct a study on 
     methods to integrate concentrating solar power and utility-
     scale photovoltaic systems into regional electricity 
     transmission systems, and to identify new transmission or 
     transmission upgrades needed to bring electricity from high 
     concentrating solar power resource areas to growing electric 
     power load centers throughout the United States. The study 
     shall analyze and assess cost-effective approaches for 
     management and large-scale integration of concentrating solar 
     power and utility-scale photovoltaic systems into regional 
     electric transmission grids to improve electric reliability, 
     to efficiently manage load, and to reduce demand on the 
     natural gas transmission system for electric power. The 
     Secretary shall submit a report to Congress on the results of 
     this study not later than 12 months after the date of 
     enactment of this Act.
       (b) Water Consumption.--Not later than 6 months after the 
     date of the enactment of this Act, the Secretary of Energy 
     shall transmit to Congress a report on the results of a study 
     on methods to reduce the amount of water consumed by 
     concentrating solar power systems.

     SEC. 604. SOLAR ENERGY CURRICULUM DEVELOPMENT AND 
                   CERTIFICATION GRANTS.

       (a) Establishment.--The Secretary shall establish in the 
     Office of Solar Energy Technologies a competitive grant 
     program to create and strengthen solar industry workforce 
     training and internship programs in installation, operation, 
     and maintenance of solar energy products. The goal of this 
     program is to ensure a supply of well-trained individuals to 
     support the expansion of the solar energy industry.
       (b) Authorized Activities.--Grant funds may be used to 
     support the following activities:
       (1) Creation and development of a solar energy curriculum 
     appropriate for the local educational, entrepreneurial, and 
     environmental conditions, including curriculum for community 
     colleges.
       (2) Support of certification programs for individual solar 
     energy system installers, instructors, and training programs.
       (3) Internship programs that provide hands-on participation 
     by students in commercial applications.
       (4) Activities required to obtain certification of training 
     programs and facilities by an industry-accepted quality-
     control certification program.
       (5) Incorporation of solar-specific learning modules into 
     traditional occupational training and internship programs for 
     construction-related trades.
       (6) The purchase of equipment necessary to carry out 
     activities under this section.
       (7) Support of programs that provide guidance and updates 
     to solar energy curriculum instructors.
       (c) Administration of Grants.--Grants may be awarded under 
     this section for up to 3 years. The Secretary shall award 
     grants to ensure sufficient geographic distribution of 
     training programs nationally. Grants shall only be awarded 
     for programs certified by an industry-accepted quality-
     control certification institution, or for new and growing 
     programs with a credible path to certification. Due 
     consideration shall be given to women, underrepresented 
     minorities, and persons with disabilities.
       (d) Report.--The Secretary shall make public, on the 
     website of the Department or upon request, information on the 
     name and institution for all grants awarded under this 
     section, including a brief description of the project as well 
     as the grant award amount.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     section $10,000,000 for each of the fiscal years 2008 through 
     2012.

     SEC. 605. DAYLIGHTING SYSTEMS AND DIRECT SOLAR LIGHT PIPE 
                   TECHNOLOGY.

       (a) Establishment.--The Secretary shall establish a program 
     of research and development to provide assistance in the 
     demonstration and commercial application of direct solar 
     renewable energy sources to provide alternatives to 
     traditional power generation for lighting and illumination, 
     including light pipe technology, and to promote greater 
     energy conservation and improved efficiency. All direct solar 
     renewable energy devices supported under this program shall 
     have the capability to provide measurable data on the amount 
     of kilowatt-hours saved over the traditionally powered light 
     sources they have replaced.
       (b) Reporting.--The Secretary shall transmit to Congress an 
     annual report assessing the measurable data derived from each 
     project in the direct solar renewable energy sources program 
     and the energy savings resulting from its use.
       (c) Definitions.--For purposes of this section--
       (1) the term ``direct solar renewable energy'' means energy 
     from a device that converts sunlight into useable light 
     within a building, tunnel, or other enclosed structure, 
     replacing artificial light generated by a light fixture and 
     doing so without the conversion of the sunlight into another 
     form of energy; and
       (2) the term ``light pipe'' means a device designed to 
     transport visible solar radiation from its collection point 
     to the interior of a building while excluding interior heat 
     gain in the nonheating season.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     section $3,500,000 for each of the fiscal years 2008 through 
     2012.

     SEC. 606. SOLAR AIR CONDITIONING RESEARCH AND DEVELOPMENT 
                   PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     research, development, and demonstration program to promote 
     less costly and more reliable decentralized distributed 
     solar-powered air conditioning for individuals and 
     businesses.
       (b) Authorized Activities.--Grants made available under 
     this section may be used to support the following activities:
       (1) Advancing solar thermal collectors, including 
     concentrating solar thermal and electric systems, flat plate 
     and evacuated tube collector performance.
       (2) Achieving technical and economic integration of solar-
     powered distributed air-conditioning systems with existing 
     hot water and storage systems for residential applications.
       (3) Designing and demonstrating mass manufacturing 
     capability to reduce costs of modular standardized solar-
     powered distributed air conditioning systems and components.
       (4) Improving the efficiency of solar-powered distributed 
     air-conditioning to increase the effectiveness of solar-
     powered absorption chillers, solar-driven compressors and 
     condensors, and cost-effective precooling approaches.
       (5) Researching and comparing performance of solar-powered 
     distributed air conditioning systems in different regions of 
     the country, including potential integration with other 
     onsite systems, such as solar, biogas, geothermal heat pumps, 
     and propane assist or combined propane fuel cells, with a 
     goal to develop site-specific energy production and 
     management systems that ease fuel and peak utility loading.
       (c) Cost Sharing.--Section 988 of the Energy Policy Act of 
     2005 (42 U.S.C. 16352) shall apply to a project carried out 
     under this section.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     section $2,500,000 for each of the fiscal years 2008 through 
     2012.

     SEC. 607. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

       (a) In General.--The Secretary shall establish a program of 
     grants to States to demonstrate advanced photovoltaic 
     technology.
       (b) Requirements.--
       (1) Ability to meet requirements.--To receive funding under 
     the program under this section, a State must submit a 
     proposal that demonstrates, to the satisfaction of the 
     Secretary, that the State will meet the requirements of 
     subsection (f).
       (2) Compliance with requirements.--If a State has received 
     funding under this section for the preceding year, the State 
     must demonstrate, to the satisfaction of the Secretary, that 
     it complied with the requirements of subsection (f) in 
     carrying out the program during that preceding year, and that 
     it will do so in the future, before it can receive further 
     funding under this section.
       (c) Competition.--The Secretary shall award grants on a 
     competitive basis to the States with the proposals the 
     Secretary considers most likely to encourage the widespread 
     adoption of photovoltaic technologies. The Secretary shall 
     take into consideration the geographic distribution of 
     awards.
       (d) Proposals.--Not later than 6 months after the date of 
     enactment of this Act, and in each subsequent fiscal year for 
     the life of the program, the Secretary shall solicit 
     proposals from the States to participate in the program under 
     this section.
       (e) Competitive Criteria.--In awarding funds in a 
     competitive allocation under subsection (c), the Secretary 
     shall consider--
       (1) the likelihood of a proposal to encourage the 
     demonstration of, or lower the costs of, advanced 
     photovoltaic technologies; and
       (2) the extent to which a proposal is likely to--
       (A) maximize the amount of photovoltaics demonstrated;
       (B) maximize the proportion of non-Federal cost share; and
       (C) limit State administrative costs.

[[Page 33925]]

       (f) State Program.--A program operated by a State with 
     funding under this section shall provide competitive awards 
     for the demonstration of advanced photo-voltaic technologies. 
     Each State program shall--
       (1) require a contribution of at least 60 percent per award 
     from non-Federal sources, which may include any combination 
     of State, local, and private funds, except that at least 10 
     percent of the funding must be supplied by the State;
       (2) endeavor to fund recipients in the commercial, 
     industrial, institutional, governmental, and residential 
     sectors;
       (3) limit State administrative costs to no more than 10 
     percent of the grant;
       (4) report annually to the Secretary on--
       (A) the amount of funds disbursed;
       (B) the amount of photovoltaics purchased; and
       (C) the results of the monitoring under paragraph (5);
       (5) provide for measurement and verification of the output 
     of a representative sample of the photovoltaics systems 
     demonstrated throughout the average working life of the 
     systems, or at least 20 years; and
       (6) require that applicant buildings must have received an 
     independent energy efficiency audit during the 6-month period 
     preceding the filing of the application.
       (g) Unexpended Funds.--If a State fails to expend any funds 
     received under this section within 3 years of receipt, such 
     remaining funds shall be returned to the Treasury.
       (h) Reports.--The Secretary shall report to Congress 5 
     years after funds are first distributed to the States under 
     this section--
       (1) the amount of photovoltaics demonstrated;
       (2) the number of projects undertaken;
       (3) the administrative costs of the program;
       (4) the results of the monitoring under subsection (f)(5); 
     and
       (5) the total amount of funds distributed, including a 
     breakdown by State.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for the purposes of 
     carrying out this section--
       (1) $15,000,000 for fiscal year 2008;
       (2) $30,000,000 for fiscal year 2009;
       (3) $45,000,000 for fiscal year 2010;
       (4) $60,000,000 for fiscal year 2011; and
       (5) $70,000,000 for fiscal year 2012.

                     Subtitle B--Geothermal Energy

     SEC. 611. SHORT TITLE.

       This subtitle may be cited as the ``Advanced Geothermal 
     Energy Research and Development Act of 2007''.

     SEC. 612. DEFINITIONS.

       For purposes of this subtitle:
       (1) Engineered.--When referring to enhanced geothermal 
     systems, the term ``engineered'' means subjected to 
     intervention, including intervention to address one or more 
     of the following issues:
       (A) Lack of effective permeability or porosity or open 
     fracture connectivity within the reservoir.
       (B) Insufficient contained geofluid in the reservoir.
       (C) A low average geothermal gradient, which necessitates 
     deeper drilling.
       (2) Enhanced geothermal systems.--The term ``enhanced 
     geothermal systems'' means geothermal reservoir systems that 
     are engineered, as opposed to occurring naturally.
       (3) Geofluid.--The term ``geofluid'' means any fluid used 
     to extract thermal energy from the Earth which is transported 
     to the surface for direct use or electric power generation, 
     except that such term shall not include oil or natural gas.
       (4) Geopressured resources.--The term ``geopressured 
     resources'' mean geothermal deposits found in sedimentary 
     rocks under higher than normal pressure and saturated with 
     gas or methane.
       (5) Geothermal.--The term ``geothermal'' refers to heat 
     energy stored in the Earth's crust that can be accessed for 
     direct use or electric power generation.
       (6) Hydrothermal.--The term ``hydrothermal'' refers to 
     naturally occurring subsurface reservoirs of hot water or 
     steam.
       (7) Systems approach.--The term ``systems approach'' means 
     an approach to solving problems or designing systems that 
     attempts to optimize the performance of the overall system, 
     rather than a particular component of the system.

     SEC. 613. HYDROTHERMAL RESEARCH AND DEVELOPMENT.

       (a) In General.--The Secretary shall support programs of 
     research, development, demonstration, and commercial 
     application to expand the use of geothermal energy production 
     from hydrothermal systems, including the programs described 
     in subsection (b).
       (b) Programs.--
       (1) Advanced hydrothermal resource tools.--The Secretary, 
     in consultation with other appropriate agencies, shall 
     support a program to develop advanced geophysical, 
     geochemical, and geologic tools to assist in locating hidden 
     hydrothermal resources, and to increase the reliability of 
     site characterization before, during, and after initial 
     drilling. The program shall develop new prospecting 
     techniques to assist in prioritization of targets for 
     characterization. The program shall include a field 
     component.
       (2) Industry coupled exploratory drilling.--The Secretary 
     shall support a program of cost-shared field demonstration 
     programs, to be pursued, simultaneously and independently, in 
     collaboration with industry partners, for the demonstration 
     of advanced technologies and techniques of siting and 
     exploratory drilling for undiscovered resources in a variety 
     of geologic settings. The program shall include incentives to 
     encourage the use of advanced technologies and techniques.

     SEC. 614. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND 
                   DEVELOPMENT.

       (a) Subsurface Components and Systems.--The Secretary shall 
     support a program of research, development, demonstration, 
     and commercial application of components and systems capable 
     of withstanding extreme geothermal environments and necessary 
     to cost-effectively develop, produce, and monitor geothermal 
     reservoirs and produce geothermal energy. These components 
     and systems shall include advanced casing systems (expandable 
     tubular casing, low-clearance casing designs, and others), 
     high-temperature cements, high-temperature submersible pumps, 
     and high-temperature packers, as well as technologies for 
     under-reaming, multilateral completions, high-temperature and 
     high-pressure logging, logging while drilling, deep fracture 
     stimulation, and reservoir system diagnostics.
       (b) Reservoir Performance Modeling.--The Secretary shall 
     support a program of research, development, demonstration, 
     and commercial application of models of geothermal reservoir 
     performance, with an emphasis on accurately modeling 
     performance over time. Models shall be developed to assist 
     both in the development of geothermal reservoirs and to more 
     accurately account for stress-related effects in stimulated 
     hydrothermal and enhanced geothermal systems production 
     environments.
       (c) Environmental Impacts.--The Secretary shall--
       (1) support a program of research, development, 
     demonstration, and commercial application of technologies and 
     practices designed to mitigate or preclude potential adverse 
     environmental impacts of geothermal energy development, 
     production or use, and seek to ensure that geothermal energy 
     development is consistent with the highest practicable 
     standards of environmental stewardship;
       (2) in conjunction with the Assistant Administrator for 
     Research and Development at the Environmental Protection 
     Agency, support a research program to identify potential 
     environmental impacts of geothermal energy development, 
     production, and use, and ensure that the program described in 
     paragraph (1) addresses such impacts, including effects on 
     groundwater and local hydrology; and
       (3) support a program of research to compare the potential 
     environmental impacts identified as part of the development, 
     production, and use of geothermal energy with the potential 
     emission reductions of greenhouse gases gained by geothermal 
     energy development, production, and use.

     SEC. 615. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND 
                   DEVELOPMENT.

       (a) In General.--The Secretary shall support a program of 
     research, development, demonstration, and commercial 
     application for enhanced geothermal systems, including the 
     programs described in subsection (b).
       (b) Programs.--
       (1) Enhanced geothermal systems technologies.--The 
     Secretary shall support a program of research, development, 
     demonstration, and commercial application of the technologies 
     and knowledge necessary for enhanced geothermal systems to 
     advance to a state of commercial readiness, including 
     advances in--
       (A) reservoir stimulation;
       (B) reservoir characterization, monitoring, and modeling;
       (C) stress mapping;
       (D) tracer development;
       (E) three-dimensional tomography; and
       (F) understanding seismic effects of reservoir engineering 
     and stimulation.
       (2) Enhanced geothermal systems reservoir stimulation.--
       (A) Program.--In collaboration with industry partners, the 
     Secretary shall support a program of research, development, 
     and demonstration of enhanced geothermal systems reservoir 
     stimulation technologies and techniques. A minimum of 4 sites 
     shall be selected in locations that show particular promise 
     for enhanced geothermal systems development. Each site 
     shall--
       (i) represent a different class of subsurface geologic 
     environments; and
       (ii) take advantage of an existing site where subsurface 
     characterization has been conducted or existing drill holes 
     can be utilized, if possible.
       (B) Consideration of existing site.--The Desert Peak, 
     Nevada, site, where a Department of Energy and industry 
     cooperative enhanced geothermal systems project is already 
     underway, may be considered for inclusion among the sites 
     selected under subparagraph (A).

     SEC. 616. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS 
                   FIELDS AND RECOVERY AND PRODUCTION OF 
                   GEOPRESSURED GAS RESOURCES.

       (a) In General.--The Secretary shall establish a program of 
     research, development, demonstration, and commercial 
     application to support development of geothermal energy 
     production from oil and gas fields and

[[Page 33926]]

     production and recovery of energy, including electricity, 
     from geopressured resources. In addition, the Secretary shall 
     conduct such supporting activities including research, 
     resource characterization, and technology development as 
     necessary.
       (b) Geothermal Energy Production From Oil and Gas Fields.--
     The Secretary shall implement a grant program in support of 
     geothermal energy production from oil and gas fields. The 
     program shall include grants for a total of not less than 
     three demonstration projects of the use of geothermal 
     techniques such as advanced organic rankine cycle systems at 
     marginal, unproductive, and productive oil and gas wells. The 
     Secretary shall, to the extent practicable and in the public 
     interest, make awards that--
       (1) include not less than five oil or gas well sites per 
     project award;
       (2) use a range of oil or gas well hot water source 
     temperatures from 150 degrees Fahrenheit to 300 degrees 
     Fahrenheit;
       (3) cover a range of sizes up to one megawatt;
       (4) are located at a range of sites;
       (5) can be replicated at a wide range of sites;
       (6) facilitate identification of optimum techniques among 
     competing alternatives;
       (7) include business commercialization plans that have the 
     potential for production of equipment at high volumes and 
     operation and support at a large number of sites; and
       (8) satisfy other criteria that the Secretary determines 
     are necessary to carry out the program and collect necessary 
     data and information.
     The Secretary shall give preference to assessments that 
     address multiple elements contained in paragraphs (1) through 
     (8).
       (c) Grant Awards.--Each grant award for demonstration of 
     geothermal technology such as advanced organic rankine cycle 
     systems at oil and gas wells made by the Secretary under 
     subsection (b) shall include--
       (1) necessary and appropriate site engineering study;
       (2) detailed economic assessment of site specific 
     conditions;
       (3) appropriate feasibility studies to determine whether 
     the demonstration can be replicated;
       (4) design or adaptation of existing technology for site 
     specific circumstances or conditions;
       (5) installation of equipment, service, and support;
       (6) operation for a minimum of one year and monitoring for 
     the duration of the demonstration; and
       (7) validation of technical and economic assumptions and 
     documentation of lessons learned.
       (d) Geopressured Gas Resource Recovery and Production.--(1) 
     The Secretary shall implement a program to support the 
     research, development, demonstration, and commercial 
     application of cost-effective techniques to produce energy 
     from geopressured resources.
       (2) The Secretary shall solicit preliminary engineering 
     designs for geopressured resources production and recovery 
     facilities.
       (3) Based upon a review of the preliminary designs, the 
     Secretary shall award grants, which may be cost-shared, to 
     support the detailed development and completion of 
     engineering, architectural and technical plans needed to 
     support construction of new designs.
       (4) Based upon a review of the final design plans above, 
     the Secretary shall award cost-shared development and 
     construction grants for demonstration geopressured production 
     facilities that show potential for economic recovery of the 
     heat, kinetic energy and gas resources from geopressured 
     resources.
       (e) Competitive Grant Selection.--Not less than 90 days 
     after the date of the enactment of this Act, the Secretary 
     shall conduct a national solicitation for applications for 
     grants under the programs outlined in subsections (b) and 
     (d). Grant recipients shall be selected on a competitive 
     basis based on criteria in the respective subsection.
       (f) Well Drilling.--No funds may be used under this section 
     for the purpose of drilling new wells.

     SEC. 617. COST SHARING AND PROPOSAL EVALUATION.

       (a) Federal Share.--The Federal share of costs of projects 
     funded under this subtitle shall be in accordance with 
     section 988 of the Energy Policy Act of 2005.
       (b) Organization and Administration of Programs.--Programs 
     under this subtitle shall incorporate the following elements:
       (1) The Secretary shall coordinate with, and where 
     appropriate may provide funds in furtherance of the purposes 
     of this subtitle to, other Department of Energy research and 
     development programs focused on drilling, subsurface 
     characterization, and other related technologies.
       (2) In evaluating proposals, the Secretary shall give 
     priority to proposals that demonstrate clear evidence of 
     employing a systems approach.
       (3) The Secretary shall coordinate and consult with the 
     appropriate Federal land management agencies in selecting 
     proposals for funding under this subtitle.
       (4) Nothing in this subtitle shall be construed to alter or 
     affect any law relating to the management or protection of 
     Federal lands.

     SEC. 618. CENTER FOR GEOTHERMAL TECHNOLOGY TRANSFER.

       (a) In General.--The Secretary shall award to an 
     institution of higher education (or consortium thereof) a 
     grant to establish a Center for Geothermal Technology 
     Transfer (referred to in this section as the ``Center'').
       (b) Duties.--The Center shall--
       (1) serve as an information clearinghouse for the 
     geothermal industry by collecting and disseminating 
     information on best practices in all areas relating to 
     developing and utilizing geothermal resources;
       (2) make data collected by the Center available to the 
     public; and
       (3) seek opportunities to coordinate efforts and share 
     information with domestic and international partners engaged 
     in research and development of geothermal systems and related 
     technology.
       (c) Selection Criteria.--In awarding the grant under 
     subsection (a) the Secretary shall select an institution of 
     higher education (or consortium thereof) best suited to 
     provide national leadership on geothermal related issues and 
     perform the duties enumerated under subsection (b).
       (d) Duration of Grant.--A grant made under subsection (a)--
       (1) shall be for an initial period of 5 years; and
       (2) may be renewed for additional 5-year periods on the 
     basis of--
       (A) satisfactory performance in meeting the duties outlined 
     in subsection (b); and
       (B) any other requirements specified by the Secretary.

     SEC. 619. GEOPOWERING AMERICA.

       The Secretary shall expand the Department of Energy's 
     GeoPowering the West program to extend its geothermal 
     technology transfer activities throughout the entire United 
     States. The program shall be renamed ``GeoPowering America''. 
     The program shall continue to be based in the Department of 
     Energy office in Golden, Colorado.

     SEC. 620. EDUCATIONAL PILOT PROGRAM.

       The Secretary shall seek to award grant funding, on a 
     competitive basis, to an institution of higher education for 
     a geothermal-powered energy generation facility on the 
     institution's campus. The purpose of the facility shall be to 
     provide electricity and space heating. The facility shall 
     also serve as an educational resource to students in relevant 
     fields of study, and the data generated by the facility shall 
     be available to students and the general public. The total 
     funding award shall not exceed $2,000,000.

     SEC. 621. REPORTS.

       (a) Reports on Advanced Uses of Geothermal Energy.--Not 
     later than 3 years and 5 years after the date of enactment of 
     this Act, the Secretary shall report to the Committee on 
     Science and Technology of the House of Representatives and 
     the Committee on Energy and Natural Resources of the Senate 
     on advanced concepts and technologies to maximize the 
     geothermal resource potential of the United States. The 
     reports shall include--
       (1) the use of carbon dioxide as an alternative geofluid 
     with potential carbon sequestration benefits;
       (2) mineral recovery from geofluids;
       (3) use of geothermal energy to produce hydrogen;
       (4) use of geothermal energy to produce biofuels;
       (5) use of geothermal heat for oil recovery from oil shales 
     and tar sands; and
       (6) other advanced geothermal technologies, including 
     advanced drilling technologies and advanced power conversion 
     technologies.
       (b) Progress Reports.--(1) Not later than 36 months after 
     the date of enactment of this Act, the Secretary shall submit 
     to the Committee on Science and Technology of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate an interim report describing the 
     progress made under this subtitle. At the end of 60 months, 
     the Secretary shall submit to Congress a report on the 
     results of projects undertaken under this subtitle and other 
     such information the Secretary considers appropriate.
       (2) As necessary, the Secretary shall report to the 
     Congress on any legal, regulatory, or other barriers 
     encountered that hinder economic development of these 
     resources, and provide recommendations on legislative or 
     other actions needed to address such impediments.

     SEC. 622. APPLICABILITY OF OTHER LAWS.

       Nothing in this subtitle shall be construed as waiving, 
     modifying, or superseding the applicability of any 
     requirement under any environmental or other Federal or State 
     law. To the extent that activities authorized in this 
     subtitle take place in coastal and ocean areas, the Secretary 
     shall consult with the Secretary of Commerce, acting through 
     the Under Secretary of Commerce for Oceans and Atmosphere, 
     regarding the potential marine environmental impacts and 
     measures to address such impacts.

     SEC. 623. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary to 
     carry out this subtitle $90,000,000 for each of the fiscal 
     years 2008

[[Page 33927]]

     through 2012, of which $10,000,000 for each fiscal year shall 
     be for carrying out section 616. There are also authorized to 
     be appropriated to the Secretary for the Intermountain West 
     Geothermal Consortium $5,000,000 for each of the fiscal years 
     2008 through 2012.

     SEC. 624. INTERNATIONAL GEOTHERMAL ENERGY DEVELOPMENT.

       (a) In General.--The Secretary of Energy, in coordination 
     with other appropriate Federal and multilateral agencies 
     (including the United States Agency for International 
     Development) shall support international collaborative 
     efforts to promote the research, development, and deployment 
     of geothermal technologies used to develop hydrothermal and 
     enhanced geothermal system resources, including as partners 
     (as appropriate) the African Rift Geothermal Development 
     Facility, Australia, China, France, the Republic of Iceland, 
     India, Japan, and the United Kingdom.
       (b) United States Trade and Development Agency.--The 
     Director of the United States Trade and Development Agency 
     may--
       (1) encourage participation by United States firms in 
     actions taken to carry out subsection (a); and
       (2) provide grants and other financial support for 
     feasibility and resource assessment studies conducted in, or 
     intended to benefit, less developed countries.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2008 through 2012.

     SEC. 625. HIGH COST REGION GEOTHERMAL ENERGY GRANT PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means--
       (A) a utility;
       (B) an electric cooperative;
       (C) a State;
       (D) a political subdivision of a State;
       (E) an Indian tribe; or
       (F) a Native corporation.
       (2) High-cost region.--The term ``high-cost region'' means 
     a region in which the average cost of electrical power 
     exceeds 150 percent of the national average retail cost, as 
     determined by the Secretary.
       (b) Program.--The Secretary shall use amounts made 
     available to carry out this section to make grants to 
     eligible entities for activities described in subsection (c).
       (c) Eligible Activities.--An eligible entity may use grant 
     funds under this section, with respect to a geothermal energy 
     project in a high-cost region, only--
       (1) to conduct a feasibility study, including a study of 
     exploration, geochemical testing, geomagnetic surveys, 
     geologic information gathering, baseline environmental 
     studies, well drilling, resource characterization, 
     permitting, and economic analysis;
       (2) for design and engineering costs, relating to the 
     project; and
       (3) to demonstrate and promote commercial application of 
     technologies related to geothermal energy as part of the 
     project.
       (d) Cost Sharing.--The cost-sharing requirements of section 
     988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall 
     apply to any project carried out under this section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

   Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies

     SEC. 631. SHORT TITLE.

       This subtitle may be cited as the ``Marine and Hydrokinetic 
     Renewable Energy Research and Development Act''.

     SEC. 632. DEFINITION.

       For purposes of this subtitle, the term ``marine and 
     hydrokinetic renewable energy'' means electrical energy 
     from--:
       (1) waves, tides, and currents in oceans, estuaries, and 
     tidal areas;
       (2) free flowing water in rivers, lakes, and streams;
       (3) free flowing water in man-made channels; and
       (4) differentials in ocean temperature (ocean thermal 
     energy conversion).
     The term ``marine and hydrokinetic renewable energy'' does 
     not include energy from any source that uses a dam, 
     diversionary structure, or impoundment for electric power 
     purposes.

     SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH 
                   AND DEVELOPMENT.

       (a) In General.--The Secretary, in consultation with the 
     Secretary of the Interior and the Secretary of Commerce, 
     acting through the Under Secretary of Commerce for Oceans and 
     Atmosphere, shall establish a program of research, 
     development, demonstration, and commercial application to 
     expand marine and hydrokinetic renewable energy production, 
     including programs to--
       (1) study and compare existing marine and hydrokinetic 
     renewable energy technologies;
       (2) research, develop, and demonstrate marine and 
     hydrokinetic renewable energy systems and technologies;
       (3) reduce the manufacturing and operation costs of marine 
     and hydrokinetic renewable energy technologies;
       (4) investigate efficient and reliable integration with the 
     utility grid and intermittency issues;
       (5) advance wave forecasting technologies;
       (6) conduct experimental and numerical modeling for 
     optimization of marine energy conversion devices and arrays;
       (7) increase the reliability and survivability of marine 
     and hydrokinetic renewable energy technologies, including 
     development of corrosive-resistant materials;
       (8) identify, in conjunction with the Secretary of 
     Commerce, acting through the Under Secretary of Commerce for 
     Oceans and Atmosphere, and other Federal agencies as 
     appropriate, the potential environmental impacts, including 
     potential impacts on fisheries and other marine resources, of 
     marine and hydrokinetic renewable energy technologies, 
     measures to prevent adverse impacts, and technologies and 
     other means available for monitoring and determining 
     environmental impacts;
       (9) identify, in conjunction with the Secretary of the 
     Department in which the United States Coast Guard is 
     operating, acting through the Commandant of the United States 
     Coast Guard, the potential navigational impacts of marine and 
     hydrokinetic renewable energy technologies and measures to 
     prevent adverse impacts on navigation;
       (10) develop power measurement standards for marine and 
     hydrokinetic renewable energy;
       (11) develop identification standards for marine and 
     hydrokinetic renewable energy devices;
       (12) address standards development, demonstration, and 
     technology transfer for advanced systems engineering and 
     system integration methods to identify critical interfaces;
       (13) identifying opportunities for cross fertilization and 
     development of economies of scale between other renewable 
     sources and marine and hydrokinetic renewable energy sources; 
     and
       (14) providing public information and opportunity for 
     public comment concerning all technologies.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary, in conjunction with the 
     Secretary of Commerce, acting through the Undersecretary of 
     Commerce for Oceans and Atmosphere, and the Secretary of the 
     Interior, shall provide to the Congress a report that 
     addresses--
       (1) the potential environmental impacts, including impacts 
     to fisheries and marine resources, of marine and hydrokinetic 
     renewable energy technologies;
       (2) options to prevent adverse environmental impacts;
       (3) the potential role of monitoring and adaptive 
     management in identifying and addressing any adverse 
     environmental impacts; and
       (4) the necessary components of such an adaptive management 
     program.

     SEC. 634. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, 
                   DEVELOPMENT, AND DEMONSTRATION CENTERS.

       (a) Centers.--The Secretary shall award grants to 
     institutions of higher education (or consortia thereof) for 
     the establishment of 1 or more National Marine Renewable 
     Energy Research, Development, and Demonstration Centers. In 
     selecting locations for Centers, the Secretary shall consider 
     sites that meet one of the following criteria:
       (1) Hosts an existing marine renewable energy research and 
     development program in coordination with an engineering 
     program at an institution of higher education.
       (2) Has proven expertise to support environmental and 
     policy-related issues associated with harnessing of energy in 
     the marine environment.
       (3) Has access to and utilizes the marine resources in the 
     Gulf of Mexico, the Atlantic Ocean, or the Pacific Ocean.
     The Secretary may give special consideration to historically 
     black colleges and universities and land grant universities 
     that also meet one of these criteria. In establishing 
     criteria for the selection of the Centers, the Secretary 
     shall consult with the Secretary of Commerce, acting through 
     the Under Secretary of Commerce for Oceans and Atmosphere, on 
     the criteria related to ocean waves, tides, and currents 
     including those for advancing wave forecasting technologies, 
     ocean temperature differences, and studying the compatibility 
     of marine renewable energy technologies and systems with the 
     environment, fisheries, and other marine resources.
       (b) Purposes.--The Centers shall advance research, 
     development, demonstration, and commercial application of 
     marine renewable energy, and shall serve as an information 
     clearinghouse for the marine renewable energy industry, 
     collecting and disseminating information on best practices in 
     all areas related to developing and managing enhanced marine 
     renewable energy systems resources.
       (c) Demonstration of Need.--When applying for a grant under 
     this section, an applicant shall include a description of why 
     Federal support is necessary for the Center, including 
     evidence that the research of the Center will not be 
     conducted in the absence of Federal support.

[[Page 33928]]



     SEC. 635. APPLICABILITY OF OTHER LAWS.

       Nothing in this subtitle shall be construed as waiving, 
     modifying, or superseding the applicability of any 
     requirement under any environmental or other Federal or State 
     law.

     SEC. 636. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary to 
     carry out this subtitle $50,000,000 for each of the fiscal 
     years 2008 through 2012, except that no funds shall be 
     appropriated under this section for activities that are 
     receiving funds under section 931(a)(2)(E)(i) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16231(a)(2)(E)(i)).

    Subtitle D--Energy Storage for Transportation and Electric Power

     SEC. 641. ENERGY STORAGE COMPETITIVENESS.

       (a) Short Title.--This section may be cited as the ``United 
     States Energy Storage Competitiveness Act of 2007''.
       (b) Definitions.--In this section:
       (1) Council.--The term ``Council'' means the Energy Storage 
     Advisory Council established under subsection (e).
       (2) Compressed air energy storage.--The term ``compressed 
     air energy storage'' means, in the case of an electricity 
     grid application, the storage of energy through the 
     compression of air.
       (3) Electric drive vehicle.--The term ``electric drive 
     vehicle'' means--
       (A) a vehicle that uses an electric motor for all or part 
     of the motive power of the vehicle, including battery 
     electric, hybrid electric, plug-in hybrid electric, fuel 
     cell, and plug-in fuel cell vehicles and rail transportation 
     vehicles; or
       (B) mobile equipment that uses an electric motor to replace 
     an internal combustion engine for all or part of the work of 
     the equipment.
       (4) Islanding.--The term ``islanding'' means a distributed 
     generator or energy storage device continuing to power a 
     location in the absence of electric power from the primary 
     source.
       (5) Flywheel.--The term ``flywheel'' means, in the case of 
     an electricity grid application, a device used to store 
     rotational kinetic energy.
       (6) Microgrid.--The term ``microgrid'' means an integrated 
     energy system consisting of interconnected loads and 
     distributed energy resources (including generators and energy 
     storage devices), which as an integrated system can operate 
     in parallel with the utility grid or in an intentional 
     islanding mode.
       (7) Self-healing grid.--The term ``self-healing grid'' 
     means a grid that is capable of automatically anticipating 
     and responding to power system disturbances (including the 
     isolation of failed sections and components), while 
     optimizing the performance and service of the grid to 
     customers.
       (8) Spinning reserve services.--The term ``spinning reserve 
     services'' means a quantity of electric generating capacity 
     in excess of the quantity needed to meet peak electric 
     demand.
       (9) Ultracapacitor.--The term ``ultracapacitor'' means an 
     energy storage device that has a power density comparable to 
     a conventional capacitor but is capable of exceeding the 
     energy density of a conventional capacitor by several orders 
     of magnitude.
       (c) Program.--The Secretary shall carry out a research, 
     development, and demonstration program to support the ability 
     of the United States to remain globally competitive in energy 
     storage systems for electric drive vehicles, stationary 
     applications, and electricity transmission and distribution.
       (d) Coordination.--In carrying out the activities of this 
     section, the Secretary shall coordinate relevant efforts with 
     appropriate Federal agencies, including the Department of 
     Transportation.
       (e) Energy Storage Advisory Council.--
       (1) Establishment.--Not later than 90 days after the date 
     of enactment of this Act, the Secretary shall establish an 
     Energy Storage Advisory Council.
       (2) Composition.--
       (A) In general.--Subject to subparagraph (B), the Council 
     shall consist of not less than 15 individuals appointed by 
     the Secretary, based on recommendations of the National 
     Academy of Sciences.
       (B) Energy storage industry.--The Council shall consist 
     primarily of representatives of the energy storage industry 
     of the United States.
       (C) Chairperson.--The Secretary shall select a Chairperson 
     for the Council from among the members appointed under 
     subparagraph (A).
       (3) Meetings.--
       (A) In general.--The Council shall meet not less than once 
     a year.
       (B) Federal advisory committee act.--The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall apply to a meeting of the 
     Council.
       (4) Plans.--No later than 1 year after the date of 
     enactment of this Act and every 5 years thereafter, the 
     Council, in conjunction with the Secretary, shall develop a 
     5-year plan for integrating basic and applied research so 
     that the United States retains a globally competitive 
     domestic energy storage industry for electric drive vehicles, 
     stationary applications, and electricity transmission and 
     distribution.
       (5) Review.--The Council shall--
       (A) assess, every 2 years, the performance of the 
     Department in meeting the goals of the plans developed under 
     paragraph (4); and
       (B) make specific recommendations to the Secretary on 
     programs or activities that should be established or 
     terminated to meet those goals.
       (f) Basic Research Program.--
       (1) Basic research.--The Secretary shall conduct a basic 
     research program on energy storage systems to support 
     electric drive vehicles, stationary applications, and 
     electricity transmission and distribution, including--
       (A) materials design;
       (B) materials synthesis and characterization;
       (C) electrode-active materials, including electrolytes and 
     bioelectrolytes;
       (D) surface and interface dynamics;
       (E) modeling and simulation; and
       (F) thermal behavior and life degradation mechanisms.
       (2) Nanoscience centers.--The Secretary, in cooperation 
     with the Council, shall coordinate the activities of the 
     nanoscience centers of the Department to help the energy 
     storage research centers of the Department maintain a 
     globally competitive posture in energy storage systems for 
     electric drive vehicles, stationary applications, and 
     electricity transmission and distribution.
       (3) Funding.--For activities carried out under this 
     subsection, in addition to funding activities at National 
     Laboratories, the Secretary shall award funds to, and 
     coordinate activities with, a range of stakeholders including 
     the public, private, and academic sectors.
       (g) Applied Research Program.--
       (1) In general.--The Secretary shall conduct an applied 
     research program on energy storage systems to support 
     electric drive vehicles, stationary applications, and 
     electricity transmission and distribution technologies, 
     including--
       (A) ultracapacitors;
       (B) flywheels;
       (C) batteries and battery systems (including flow 
     batteries);
       (D) compressed air energy systems;
       (E) power conditioning electronics;
       (F) manufacturing technologies for energy storage systems;
       (G) thermal management systems; and
       (H) hydrogen as an energy storage medium.
       (2) Funding.--For activities carried out under this 
     subsection, in addition to funding activities at National 
     Laboratories, the Secretary shall provide funds to, and 
     coordinate activities with, a range of stakeholders, 
     including the public, private, and academic sectors.
       (h) Energy Storage Research Centers.--
       (1) In general.--The Secretary shall establish, through 
     competitive bids, not more than 4 energy storage research 
     centers to translate basic research into applied technologies 
     to advance the capability of the United States to maintain a 
     globally competitive posture in energy storage systems for 
     electric drive vehicles, stationary applications, and 
     electricity transmission and distribution.
       (2) Program management.--The centers shall be managed by 
     the Under Secretary for Science of the Department.
       (3) Participation agreements.--As a condition of 
     participating in a center, a participant shall enter into a 
     participation agreement with the center that requires that 
     activities conducted by the participant for the center 
     promote the goal of enabling the United States to compete 
     successfully in global energy storage markets.
       (4) Plans.--A center shall conduct activities that promote 
     the achievement of the goals of the plans of the Council 
     under subsection (e)(4).
       (5) National laboratories.--A national laboratory (as 
     defined in section 2 of the Energy Policy Act of 2005 (42 
     U.S.C. 15801)) may participate in a center established under 
     this subsection, including a cooperative research and 
     development agreement (as defined in section 12(d) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(d))).
       (6) Disclosure.--Section 623 of the Energy Policy Act of 
     1992 (42 U.S.C. 13293) may apply to any project carried out 
     through a grant, contract, or cooperative agreement under 
     this subsection.
       (7) Intellectual property.--In accordance with section 
     202(a)(ii) of title 35, United States Code, section 152 of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9 
     of the Federal Nonnuclear Energy Research and Development Act 
     of 1974 (42 U.S.C. 5908), the Secretary may require, for any 
     new invention developed under this subsection, that--
       (A) if an industrial participant is active in a energy 
     storage research center established under this subsection 
     relating to the advancement of energy storage technologies 
     carried out, in whole or in part, with Federal funding, the 
     industrial participant be granted the first option to 
     negotiate with the invention owner, at least in the field of 
     energy storage technologies, nonexclusive licenses, and 
     royalties on terms that are reasonable, as determined by the 
     Secretary;
       (B) if 1 or more industry participants are active in a 
     center, during a 2-year period beginning on the date on which 
     an invention is made--

[[Page 33929]]

       (i) the patent holder shall not negotiate any license or 
     royalty agreement with any entity that is not an industrial 
     participant under this subsection; and
       (ii) the patent holder shall negotiate nonexclusive 
     licenses and royalties in good faith with any interested 
     industrial participant under this subsection; and
       (C) the new invention be developed under such other terms 
     as the Secretary determines to be necessary to promote the 
     accelerated commercialization of inventions made under this 
     subsection to advance the capability of the United States to 
     successfully compete in global energy storage markets.
       (i) Energy Storage Systems Demonstrations.--
       (1) In general.--The Secretary shall carry out a program of 
     new demonstrations of advanced energy storage systems.
       (2) Scope.--The demonstrations shall--
       (A) be regionally diversified; and
       (B) expand on the existing technology demonstration program 
     of the Department.
       (3) Stakeholders.--In carrying out the demonstrations, the 
     Secretary shall, to the maximum extent practicable, include 
     the participation of a range of stakeholders, including--
       (A) rural electric cooperatives;
       (B) investor owned utilities;
       (C) municipally owned electric utilities;
       (D) energy storage systems manufacturers;
       (E) electric drive vehicle manufacturers;
       (F) the renewable energy production industry;
       (G) State or local energy offices;
       (H) the fuel cell industry; and
       (I) institutions of higher education.
       (4) Objectives.--Each of the demonstrations shall include 1 
     or more of the following:
       (A) Energy storage to improve the feasibility of microgrids 
     or islanding, or transmission and distribution capability, to 
     improve reliability in rural areas.
       (B) Integration of an energy storage system with a self-
     healing grid.
       (C) Use of energy storage to improve security to emergency 
     response infrastructure and ensure availability of emergency 
     backup power for consumers.
       (D) Integration with a renewable energy production source, 
     at the source or away from the source.
       (E) Use of energy storage to provide ancillary services, 
     such as spinning reserve services, for grid management.
       (F) Advancement of power conversion systems to make the 
     systems smarter, more efficient, able to communicate with 
     other inverters, and able to control voltage.
       (G) Use of energy storage to optimize transmission and 
     distribution operation and power quality, which could address 
     overloaded lines and maintenance of transformers and 
     substations.
       (H) Use of advanced energy storage for peak load management 
     of homes, businesses, and the grid.
       (I) Use of energy storage devices to store energy during 
     nonpeak generation periods to make better use of existing 
     grid assets.
       (j) Vehicle Energy Storage Demonstration.--
       (1) In general.--The Secretary shall carry out a program of 
     electric drive vehicle energy storage technology 
     demonstrations.
       (2) Consortia.--The technology demonstrations shall be 
     conducted through consortia, which may include--
       (A) energy storage systems manufacturers and suppliers of 
     the manufacturers;
       (B) electric drive vehicle manufacturers;
       (C) rural electric cooperatives;
       (D) investor owned utilities;
       (E) municipal and rural electric utilities;
       (F) State and local governments;
       (G) metropolitan transportation authorities; and
       (H) institutions of higher education.
       (3) Objectives.--The program shall demonstrate 1 or more of 
     the following:
       (A) Novel, high capacity, high efficiency energy storage, 
     charging, and control systems, along with the collection of 
     data on performance characteristics, such as battery life, 
     energy storage capacity, and power delivery capacity.
       (B) Advanced onboard energy management systems and highly 
     efficient battery cooling systems.
       (C) Integration of those systems on a prototype vehicular 
     platform, including with drivetrain systems for passenger, 
     commercial, and nonroad electric drive vehicles.
       (D) New technologies and processes that reduce 
     manufacturing costs.
       (E) Integration of advanced vehicle technologies with 
     electricity distribution system and smart metering 
     technology.
       (F) Control systems that minimize emissions profiles in 
     cases in which clean diesel engines are part of a plug-in 
     hybrid drive system.
       (k) Secondary Applications and Disposal of Electric Drive 
     Vehicle Batteries.--The Secretary shall carry out a program 
     of research, development, and demonstration of--
       (1) secondary applications of energy storage devices 
     following service in electric drive vehicles; and
       (2) technologies and processes for final recycling and 
     disposal of the devices.
       (l) Cost Sharing.--The Secretary shall carry out the 
     programs established under this section in accordance with 
     section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
     16352).
       (m) Merit Review of Proposals.--The Secretary shall carry 
     out the programs established under subsections (i), (j), and 
     (k) in accordance with section 989 of the Energy Policy Act 
     of 2005 (42 U.S.C. 16353).
       (n) Coordination and Nonduplication.--To the maximum extent 
     practicable, the Secretary shall coordinate activities under 
     this section with other programs and laboratories of the 
     Department and other Federal research programs.
       (o) Review by National Academy of Sciences.--On the 
     business day that is 5 years after the date of enactment of 
     this Act, the Secretary shall offer to enter into an 
     arrangement with the National Academy of Sciences to assess 
     the performance of the Department in carrying out this 
     section.
       (p) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out--
       (1) the basic research program under subsection (f) 
     $50,000,000 for each of fiscal years 2009 through 2018;
       (2) the applied research program under subsection (g) 
     $80,000,000 for each of fiscal years 2009 through 2018; and;
       (3) the energy storage research center program under 
     subsection (h) $100,000,000 for each of fiscal years 2009 
     through 2018;
       (4) the energy storage systems demonstration program under 
     subsection (i) $30,000,000 for each of fiscal years 2009 
     through 2018;
       (5) the vehicle energy storage demonstration program under 
     subsection (j) $30,000,000 for each of fiscal years 2009 
     through 2018; and
       (6) the secondary applications and disposal of electric 
     drive vehicle batteries program under subsection (k) 
     $5,000,000 for each of fiscal years 2009 through 2018.

                  Subtitle E--Miscellaneous Provisions

     SEC. 651. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

       (a) In General.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of Energy shall 
     establish a program to determine ways in which the weight of 
     motor vehicles could be reduced to improve fuel efficiency 
     without compromising passenger safety by conducting research, 
     development, and demonstration relating to--
       (1) the development of new materials (including cast metal 
     composite materials formed by autocombustion synthesis) and 
     material processes that yield a higher strength-to-weight 
     ratio or other properties that reduce vehicle weight; and
       (2) reducing the cost of--
       (A) lightweight materials (including high-strength steel 
     alloys, aluminum, magnesium, metal composites, and carbon 
     fiber reinforced polymer composites) with the properties 
     required for construction of lighter-weight vehicles; and
       (B) materials processing, automated manufacturing, joining, 
     and recycling lightweight materials for high-volume 
     applications.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $80,000,000 for 
     the period of fiscal years 2008 through 2012.

     SEC. 652. COMMERCIAL INSULATION DEMONSTRATION PROGRAM.

       (a) Definitions.--In this section:
       (1) Advanced insulation.--The term ``advanced insulation'' 
     means insulation that has an R value of not less than R35 per 
     inch.
       (2) Covered refrigeration unit.--The term ``covered 
     refrigeration unit'' means any--
       (A) commercial refrigerated truck;
       (B) commercial refrigerated trailer; or
       (C) commercial refrigerator, freezer, or refrigerator-
     freezer described in section 342(c) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6313(c)).
       (b) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that includes an evaluation of--
       (1) the state of technological advancement of advanced 
     insulation; and
       (2) the projected amount of cost savings that would be 
     generated by implementing advanced insulation into covered 
     refrigeration units.
       (c) Demonstration Program.--
       (1) Establishment.--If the Secretary determines in the 
     report described in subsection (b) that the implementation of 
     advanced insulation into covered refrigeration units would 
     generate an economically justifiable amount of cost savings, 
     the Secretary, in cooperation with manufacturers of covered 
     refrigeration units, shall establish a demonstration program 
     under which the Secretary shall demonstrate the cost-
     effectiveness of advanced insulation.
       (2) Disclosure.--The Secretary may, for a period of up to 
     five years after an award is granted under the demonstration 
     program, exempt from mandatory disclosure under section 552 
     of title 5, United States Code (popularly known as the 
     Freedom of Information Act) information that the Secretary 
     determines would be a privileged or confidential trade secret 
     or commercial or financial information under subsection 
     (b)(4) of such section if the information had been obtained 
     from a non-Government party.
       (3) Cost-sharing.--Section 988 of the Energy Policy Act of 
     2005 (42 U.S.C. 16352) shall apply to any project carried out 
     under this subsection.

[[Page 33930]]

       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $8,000,000 for 
     the period of fiscal years 2009 through 2014.

     SEC. 653. TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE.

       Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005 
     (42 U.S.C. 15962(b)(1)(B)(ii)) is amended by striking 
     subclause (I) and inserting the following:

       ``(I)(aa) to remove at least 99 percent of sulfur dioxide; 
     or
       ``(bb) to emit not more than 0.04 pound SO2 per 
     million Btu, based on a 30-day average;''.

     SEC. 654. H-PRIZE.

       Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 
     16396) is amended by adding at the end the following new 
     subsection:
       ``(f) H-Prize.--
       ``(1) Prize authority.--
       ``(A) In general.--As part of the program under this 
     section, the Secretary shall carry out a program to 
     competitively award cash prizes in conformity with this 
     subsection to advance the research, development, 
     demonstration, and commercial application of hydrogen energy 
     technologies.
       ``(B) Advertising and solicitation of competitors.--
       ``(i) Advertising.--The Secretary shall widely advertise 
     prize competitions under this subsection to encourage broad 
     participation, including by individuals, universities 
     (including historically Black colleges and universities and 
     other minority serving institutions), and large and small 
     businesses (including businesses owned or controlled by 
     socially and economically disadvantaged persons).
       ``(ii) Announcement through federal register notice.--The 
     Secretary shall announce each prize competition under this 
     subsection by publishing a notice in the Federal Register. 
     This notice shall include essential elements of the 
     competition such as the subject of the competition, the 
     duration of the competition, the eligibility requirements for 
     participation in the competition, the process for 
     participants to register for the competition, the amount of 
     the prize, and the criteria for awarding the prize.
       ``(C) Administering the competitions.--The Secretary shall 
     enter into an agreement with a private, nonprofit entity to 
     administer the prize competitions under this subsection, 
     subject to the provisions of this subsection (in this 
     subsection referred to as the `administering entity'). The 
     duties of the administering entity under the agreement shall 
     include--
       ``(i) advertising prize competitions under this subsection 
     and their results;
       ``(ii) raising funds from private entities and individuals 
     to pay for administrative costs and to contribute to cash 
     prizes, including funds provided in exchange for the right to 
     name a prize awarded under this subsection;
       ``(iii) developing, in consultation with and subject to the 
     final approval of the Secretary, the criteria for selecting 
     winners in prize competitions under this subsection, based on 
     goals provided by the Secretary;
       ``(iv) determining, in consultation with the Secretary, the 
     appropriate amount and funding sources for each prize to be 
     awarded under this subsection, subject to the final approval 
     of the Secretary with respect to Federal funding;
       ``(v) providing advice and consultation to the Secretary on 
     the selection of judges in accordance with paragraph (2)(D), 
     using criteria developed in consultation with and subject to 
     the final approval of the Secretary; and
       ``(vi) protecting against the administering entity's 
     unauthorized use or disclosure of a registered participant's 
     trade secrets and confidential business information. Any 
     information properly identified as trade secrets or 
     confidential business information that is submitted by a 
     participant as part of a competitive program under this 
     subsection may be withheld from public disclosure.
       ``(D) Funding sources.--Prizes under this subsection shall 
     consist of Federal appropriated funds and any funds provided 
     by the administering entity (including funds raised pursuant 
     to subparagraph (C)(ii)) for such cash prize programs. The 
     Secretary may accept funds from other Federal agencies for 
     such cash prizes and, notwithstanding section 3302(b) of 
     title 31, United States Code, may use such funds for the cash 
     prize program under this subsection. Other than publication 
     of the names of prize sponsors, the Secretary may not give 
     any special consideration to any private sector entity or 
     individual in return for a donation to the Secretary or 
     administering entity.
       ``(E) Announcement of prizes.--The Secretary may not issue 
     a notice required by subparagraph (B)(ii) until all the funds 
     needed to pay out the announced amount of the prize have been 
     appropriated or committed in writing by the administering 
     entity. The Secretary may increase the amount of a prize 
     after an initial announcement is made under subparagraph 
     (B)(ii) if--
       ``(i) notice of the increase is provided in the same manner 
     as the initial notice of the prize; and
       ``(ii) the funds needed to pay out the announced amount of 
     the increase have been appropriated or committed in writing 
     by the administering entity.
       ``(F) Sunset.--The authority to announce prize competitions 
     under this subsection shall terminate on September 30, 2018.
       ``(2) Prize categories.--
       ``(A) Categories.--The Secretary shall establish prizes 
     under this subsection for--
       ``(i) advancements in technologies, components, or systems 
     related to--

       ``(I) hydrogen production;
       ``(II) hydrogen storage;
       ``(III) hydrogen distribution; and
       ``(IV) hydrogen utilization;

       ``(ii) prototypes of hydrogen-powered vehicles or other 
     hydrogen-based products that best meet or exceed objective 
     performance criteria, such as completion of a race over a 
     certain distance or terrain or generation of energy at 
     certain levels of efficiency; and
       ``(iii) transformational changes in technologies for the 
     distribution or production of hydrogen that meet or exceed 
     far-reaching objective criteria, which shall include minimal 
     carbon emissions and which may include cost criteria designed 
     to facilitate the eventual market success of a winning 
     technology.
       ``(B) Awards.--
       ``(i) Advancements.--To the extent permitted under 
     paragraph (1)(E), the prizes authorized under subparagraph 
     (A)(i) shall be awarded biennially to the most significant 
     advance made in each of the four subcategories described in 
     subclauses (I) through (IV) of subparagraph (A)(i) since the 
     submission deadline of the previous prize competition in the 
     same category under subparagraph (A)(i) or the date of 
     enactment of this subsection, whichever is later, unless no 
     such advance is significant enough to merit an award. No one 
     such prize may exceed $1,000,000. If less than $4,000,000 is 
     available for a prize competition under subparagraph (A)(i), 
     the Secretary may omit one or more subcategories, reduce the 
     amount of the prizes, or not hold a prize competition.
       ``(ii) Prototypes.--To the extent permitted under paragraph 
     (1)(E), prizes authorized under subparagraph (A)(ii) shall be 
     awarded biennially in alternate years from the prizes 
     authorized under subparagraph (A)(i). The Secretary is 
     authorized to award up to one prize in this category in each 
     2-year period. No such prize may exceed $4,000,000. If no 
     registered participants meet the objective performance 
     criteria established pursuant to subparagraph (C) for a 
     competition under this clause, the Secretary shall not award 
     a prize.
       ``(iii) Transformational technologies.--To the extent 
     permitted under paragraph (1)(E), the Secretary shall 
     announce one prize competition authorized under subparagraph 
     (A)(iii) as soon after the date of enactment of this 
     subsection as is practicable. A prize offered under this 
     clause shall be not less than $10,000,000, paid to the winner 
     in a lump sum, and an additional amount paid to the winner as 
     a match for each dollar of private funding raised by the 
     winner for the hydrogen technology beginning on the date the 
     winner was named. The match shall be provided for 3 years 
     after the date the prize winner is named or until the full 
     amount of the prize has been paid out, whichever occurs 
     first. A prize winner may elect to have the match amount paid 
     to another entity that is continuing the development of the 
     winning technology. The Secretary shall announce the rules 
     for receiving the match in the notice required by paragraph 
     (1)(B)(ii). The Secretary shall award a prize under this 
     clause only when a registered participant has met the 
     objective criteria established for the prize pursuant to 
     subparagraph (C) and announced pursuant to paragraph 
     (1)(B)(ii). Not more than $10,000,000 in Federal funds may be 
     used for the prize award under this clause. The administering 
     entity shall seek to raise $40,000,000 toward the matching 
     award under this clause.
       ``(C) Criteria.--In establishing the criteria required by 
     this subsection, the Secretary--
       ``(i) shall consult with the Department's Hydrogen 
     Technical and Fuel Cell Advisory Committee;
       ``(ii) shall consult with other Federal agencies, including 
     the National Science Foundation; and
       ``(iii) may consult with other experts such as private 
     organizations, including professional societies, industry 
     associations, and the National Academy of Sciences and the 
     National Academy of Engineering.
       ``(D) Judges.--For each prize competition under this 
     subsection, the Secretary in consultation with the 
     administering entity shall assemble a panel of qualified 
     judges to select the winner or winners on the basis of the 
     criteria established under subparagraph (C). Judges for each 
     prize competition shall include individuals from outside the 
     Department, including from the private sector. A judge, 
     spouse, minor children, and members of the judge's household 
     may not--
       ``(i) have personal or financial interests in, or be an 
     employee, officer, director, or agent of, any entity that is 
     a registered participant in the prize competition for which 
     he or she will serve as a judge; or
       ``(ii) have a familial or financial relationship with an 
     individual who is a registered participant in the prize 
     competition for which he or she will serve as a judge.
       ``(3) Eligibility.--To be eligible to win a prize under 
     this subsection, an individual or entity--
       ``(A) shall have complied with all the requirements in 
     accordance with the Federal Register notice required under 
     paragraph (1)(B)(ii);

[[Page 33931]]

       ``(B) in the case of a private entity, shall be 
     incorporated in and maintain a primary place of business in 
     the United States, and in the case of an individual, whether 
     participating singly or in a group, shall be a citizen of, or 
     an alien lawfully admitted for permanent residence in, the 
     United States; and
       ``(C) shall not be a Federal entity, a Federal employee 
     acting within the scope of his employment, or an employee of 
     a national laboratory acting within the scope of his 
     employment.
       ``(4) Intellectual property.--The Federal Government shall 
     not, by virtue of offering or awarding a prize under this 
     subsection, be entitled to any intellectual property rights 
     derived as a consequence of, or direct relation to, the 
     participation by a registered participant in a competition 
     authorized by this subsection. This paragraph shall not be 
     construed to prevent the Federal Government from negotiating 
     a license for the use of intellectual property developed for 
     a prize competition under this subsection.
       ``(5) Liability.--
       ``(A) Waiver of liability.--The Secretary may require 
     registered participants to waive claims against the Federal 
     Government and the administering entity (except claims for 
     willful misconduct) for any injury, death, damage, or loss of 
     property, revenue, or profits arising from the registered 
     participants' participation in a competition under this 
     subsection. The Secretary shall give notice of any waiver 
     required under this subparagraph in the notice required by 
     paragraph (1)(B)(ii). The Secretary may not require a 
     registered participant to waive claims against the 
     administering entity arising out of the unauthorized use or 
     disclosure by the administering entity of the registered 
     participant's trade secrets or confidential business 
     information.
       ``(B) Liability insurance.--
       ``(i) Requirements.--Registered participants in a prize 
     competition under this subsection shall be required to obtain 
     liability insurance or demonstrate financial responsibility, 
     in amounts determined by the Secretary, for claims by--

       ``(I) a third party for death, bodily injury, or property 
     damage or loss resulting from an activity carried out in 
     connection with participation in a competition under this 
     subsection; and
       ``(II) the Federal Government for damage or loss to 
     Government property resulting from such an activity.

       ``(ii) Federal government insured.--The Federal Government 
     shall be named as an additional insured under a registered 
     participant's insurance policy required under clause (i)(I), 
     and registered participants shall be required to agree to 
     indemnify the Federal Government against third party claims 
     for damages arising from or related to competition activities 
     under this subsection.
       ``(6) Report to congress.--Not later than 60 days after the 
     awarding of the first prize under this subsection, and 
     annually thereafter, the Secretary shall transmit to the 
     Congress a report that--
       ``(A) identifies each award recipient;
       ``(B) describes the technologies developed by each award 
     recipient; and
       ``(C) specifies actions being taken toward commercial 
     application of all technologies with respect to which a prize 
     has been awarded under this subsection.
       ``(7) Authorization of appropriations.--
       ``(A) In general.--
       ``(i) Awards.--There are authorized to be appropriated to 
     the Secretary for the period encompassing fiscal years 2008 
     through 2017 for carrying out this subsection--

       ``(I) $20,000,000 for awards described in paragraph 
     (2)(A)(i);
       ``(II) $20,000,000 for awards described in paragraph 
     (2)(A)(ii); and
       ``(III) $10,000,000 for the award described in paragraph 
     (2)(A)(iii).

       ``(ii) Administration.--In addition to the amounts 
     authorized in clause (i), there are authorized to be 
     appropriated to the Secretary for each of fiscal years 2008 
     and 2009 $2,000,000 for the administrative costs of carrying 
     out this subsection.
       ``(B) Carryover of funds.--Funds appropriated for prize 
     awards under this subsection shall remain available until 
     expended, and may be transferred, reprogrammed, or expended 
     for other purposes only after the expiration of 10 fiscal 
     years after the fiscal year for which the funds were 
     originally appropriated. No provision in this subsection 
     permits obligation or payment of funds in violation of 
     section 1341 of title 31 of the United States Code (commonly 
     referred to as the Anti-Deficiency Act).
       ``(8) Nonsubstitution.--The programs created under this 
     subsection shall not be considered a substitute for Federal 
     research and development programs.''.

     SEC. 655. BRIGHT TOMORROW LIGHTING PRIZES.

       (a) Establishment.--Not later than 1 year after the date of 
     enactment of this Act, as part of the program carried out 
     under section 1008 of the Energy Policy Act of 2005 (42 
     U.S.C. 16396), the Secretary shall establish and award Bright 
     Tomorrow Lighting Prizes for solid state lighting in 
     accordance with this section.
       (b) Prize Specifications.--
       (1) 60-watt incandescent replacement lamp prize.--The 
     Secretary shall award a 60-Watt Incandescent Replacement Lamp 
     Prize to an entrant that produces a solid-state light package 
     simultaneously capable of--
       (A) producing a luminous flux greater than 900 lumens;
       (B) consuming less than or equal to 10 watts;
       (C) having an efficiency greater than 90 lumens per watt;
       (D) having a color rendering index greater than 90;
       (E) having a correlated color temperature of not less than 
     2,750, and not more than 3,000, degrees Kelvin;
       (F) having 70 percent of the lumen value under subparagraph 
     (A) exceeding 25,000 hours under typical conditions expected 
     in residential use;
       (G) having a light distribution pattern similar to a soft 
     60-watt incandescent A19 bulb;
       (H) having a size and shape that fits within the maximum 
     dimensions of an A19 bulb in accordance with American 
     National Standards Institute standard C78.20-2003, figure 
     C78.20-211;
       (I) using a single contact medium screw socket; and
       (J) mass production for a competitive sales commercial 
     market satisfied by producing commercially accepted quality 
     control lots of such units equal to or exceeding the criteria 
     described in subparagraphs (A) through (I).
       (2) PAR type 38 halogen replacement lamp prize.--The 
     Secretary shall award a Parabolic Aluminized Reflector Type 
     38 Halogen Replacement Lamp Prize (referred to in this 
     section as the ``PAR Type 38 Halogen Replacement Lamp 
     Prize'') to an entrant that produces a solid-state-light 
     package simultaneously capable of--
       (A) producing a luminous flux greater than or equal to 
     1,350 lumens;
       (B) consuming less than or equal to 11 watts;
       (C) having an efficiency greater than 123 lumens per watt;
       (D) having a color rendering index greater than or equal to 
     90;
       (E) having a correlated color coordinate temperature of not 
     less than 2,750, and not more than 3,000, degrees Kelvin;
       (F) having 70 percent of the lumen value under subparagraph 
     (A) exceeding 25,000 hours under typical conditions expected 
     in residential use;
       (G) having a light distribution pattern similar to a PAR 38 
     halogen lamp;
       (H) having a size and shape that fits within the maximum 
     dimensions of a PAR 38 halogen lamp in accordance with 
     American National Standards Institute standard C78-21-2003, 
     figure C78.21-238;
       (I) using a single contact medium screw socket; and
       (J) mass production for a competitive sales commercial 
     market satisfied by producing commercially accepted quality 
     control lots of such units equal to or exceeding the criteria 
     described in subparagraphs (A) through (I).
       (3) Twenty-first century lamp prize.--The Secretary shall 
     award a Twenty-First Century Lamp Prize to an entrant that 
     produces a solid-state-light-light capable of--
       (A) producing a light output greater than 1,200 lumens;
       (B) having an efficiency greater than 150 lumens per watt;
       (C) having a color rendering index greater than 90;
       (D) having a color coordinate temperature between 2,800 and 
     3,000 degrees Kelvin; and
       (E) having a lifetime exceeding 25,000 hours.
       (c) Private Funds.--
       (1) In general.--Subject to paragraph (2), and 
     notwithstanding section 3302 of title 31, United States Code, 
     the Secretary may accept, retain, and use funds contributed 
     by any person, government entity, or organization for 
     purposes of carrying out this subsection--
       (A) without further appropriation; and
       (B) without fiscal year limitation.
       (2) Prize competition.--A private source of funding may not 
     participate in the competition for prizes awarded under this 
     section.
       (d) Technical Review.--The Secretary shall establish a 
     technical review committee composed of non-Federal officers 
     to review entrant data submitted under this section to 
     determine whether the data meets the prize specifications 
     described in subsection (b).
       (e) Third Party Administration.--The Secretary may 
     competitively select a third party to administer awards under 
     this section.
       (f) Eligibility for Prizes.--To be eligible to be awarded a 
     prize under this section--
       (1) in the case of a private entity, the entity shall be 
     incorporated in and maintain a primary place of business in 
     the United States; and
       (2) in the case of an individual (whether participating as 
     a single individual or in a group), the individual shall be a 
     citizen or lawful permanent resident of the United States.
       (g) Award Amounts.--Subject to the availability of funds to 
     carry out this section, the amount of--
       (1) the 60-Watt Incandescent Replacement Lamp Prize 
     described in subsection (b)(1) shall be $10,000,000;
       (2) the PAR Type 38 Halogen Replacement Lamp Prize 
     described in subsection (b)(2) shall be $5,000,000; and

[[Page 33932]]

       (3) the Twenty-First Century Lamp Prize described in 
     subsection (b)(3) shall be $5,000,000.
       (h) Federal Procurement of Solid-State-Lights.--
       (1) 60-watt incandescent replacement.--Subject to paragraph 
     (3), as soon as practicable after the successful award of the 
     60-Watt Incandescent Replacement Lamp Prize under subsection 
     (b)(1), the Secretary (in consultation with the Administrator 
     of General Services) shall develop governmentwide Federal 
     purchase guidelines with a goal of replacing the use of 60-
     watt incandescent lamps in Federal Government buildings with 
     a solid-state-light package described in subsection (b)(1) by 
     not later than the date that is 5 years after the date the 
     award is made.
       (2) PAR 38 halogen replacement lamp replacement.--Subject 
     to paragraph (3), as soon as practicable after the successful 
     award of the PAR Type 38 Halogen Replacement Lamp Prize under 
     subsection (b)(2), the Secretary (in consultation with the 
     Administrator of General Services) shall develop 
     governmentwide Federal purchase guidelines with the goal of 
     replacing the use of PAR 38 halogen lamps in Federal 
     Government buildings with a solid-state-light package 
     described in subsection (b)(2) by not later than the date 
     that is 5 years after the date the award is made.
       (3) Waivers.--
       (A) In general.--The Secretary or the Administrator of 
     General Services may waive the application of paragraph (1) 
     or (2) if the Secretary or Administrator determines that the 
     return on investment from the purchase of a solid-state-light 
     package described in paragraph (1) or (2) of subsection (b), 
     respectively, is cost prohibitive.
       (B) Report of waiver.--If the Secretary or Administrator 
     waives the application of paragraph (1) or (2), the Secretary 
     or Administrator, respectively, shall submit to Congress an 
     annual report that describes the waiver and provides a 
     detailed justification for the waiver.
       (i) Report.--Not later than 2 years after the date of 
     enactment of this Act, and annually thereafter, the 
     Administrator of General Services shall submit to the Energy 
     Information Agency a report describing the quantity, type, 
     and cost of each lighting product purchased by the Federal 
     Government.
       (j) Bright Tomorrow Lighting Award Fund.--
       (1) Establishment.--There is established in the United 
     States Treasury a Bright Tomorrow Lighting permanent fund 
     without fiscal year limitation to award prizes under 
     paragraphs (1), (2), and (3) of subsection (b).
       (2) Sources of funding.--The fund established under 
     paragraph (1) shall accept--
       (A) fiscal year appropriations; and
       (B) private contributions authorized under subsection (c).
       (k) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 656. RENEWABLE ENERGY INNOVATION MANUFACTURING 
                   PARTNERSHIP.

       (a) Establishment.--The Secretary shall carry out a 
     program, to be known as the Renewable Energy Innovation 
     Manufacturing Partnership Program (referred to in this 
     section as the ``Program''), to make assistance awards to 
     eligible entities for use in carrying out research, 
     development, and demonstration relating to the manufacturing 
     of renewable energy technologies.
       (b) Solicitation.--To carry out the Program, the Secretary 
     shall annually conduct a competitive solicitation for 
     assistance awards for an eligible project described in 
     subsection (e).
       (c) Program Purposes.--The purposes of the Program are--
       (1) to develop, or aid in the development of, advanced 
     manufacturing processes, materials, and infrastructure;
       (2) to increase the domestic production of renewable energy 
     technology and components; and
       (3) to better coordinate Federal, State, and private 
     resources to meet regional and national renewable energy 
     goals through advanced manufacturing partnerships.
       (d) Eligible Entities.--An entity shall be eligible to 
     receive an assistance award under the Program to carry out an 
     eligible project described in subsection (e) if the entity is 
     composed of--
       (1) 1 or more public or private nonprofit institutions or 
     national laboratories engaged in research, development, 
     demonstration, or technology transfer, that would participate 
     substantially in the project; and
       (2) 1 or more private entities engaged in the manufacturing 
     or development of renewable energy system components 
     (including solar energy, wind energy, biomass, geothermal 
     energy, energy storage, or fuel cells).
       (e) Eligible Projects.--An eligible entity may use an 
     assistance award provided under this section to carry out a 
     project relating to--
       (1) the conduct of studies of market opportunities for 
     component manufacturing of renewable energy systems;
       (2) the conduct of multiyear applied research, development, 
     demonstration, and deployment projects for advanced 
     manufacturing processes, materials, and infrastructure for 
     renewable energy systems; and
       (3) other similar ventures, as approved by the Secretary, 
     that promote advanced manufacturing of renewable 
     technologies.
       (f) Criteria and Guidelines.--The Secretary shall establish 
     criteria and guidelines for the submission, evaluation, and 
     funding of proposed projects under the Program.
       (g) Cost Sharing.--Section 988 of the Energy Policy Act of 
     2005 (42 U.S.C. 16352) shall apply to a project carried out 
     under this section.
       (h) Disclosure.--The Secretary may, for a period of up to 
     five years after an award is granted under this section, 
     exempt from mandatory disclosure under section 552 of title 
     5, United States Code (popularly known as the Freedom of 
     Information Act) information that the Secretary determines 
     would be a privileged or confidential trade secret or 
     commercial or financial information under subsection (b)(4) 
     of such section if the information had been obtained from a 
     non-Government party.
       (i) Sense of the Congress.--It is the sense of the Congress 
     that the Secretary should ensure that small businesses 
     engaged in renewable manufacturing be given priority 
     consideration for the assistance awards provided under this 
     section.
       (j) Authorization of Appropriations.--There is authorized 
     to be appropriated out of funds already authorized to carry 
     out this section $25,000,000 for each of fiscal years 2008 
     through 2013, to remain available until expended.

              TITLE VII--CARBON CAPTURE AND SEQUESTRATION

Subtitle A--Carbon Capture and Sequestration Research, Development, and 
                             Demonstration

     SEC. 701. SHORT TITLE.

       This subtitle may be cited as the ``Department of Energy 
     Carbon Capture and Sequestration Research, Development, and 
     Demonstration Act of 2007''.

     SEC. 702. CARBON CAPTURE AND SEQUESTRATION RESEARCH, 
                   DEVELOPMENT, AND DEMONSTRATION PROGRAM.

       (a) Amendment.--Section 963 of the Energy Policy Act of 
     2005 (42 U.S.C. 16293) is amended--
       (1) in the section heading, by striking ``RESEARCH AND 
     DEVELOPMENT'' and inserting ``AND SEQUESTRATION RESEARCH, 
     DEVELOPMENT, AND DEMONSTRATION'';
       (2) in subsection (a)--
       (A) by striking ``research and development'' and inserting 
     ``and sequestration research, development, and 
     demonstration''; and
       (B) by striking ``capture technologies on combustion-based 
     systems'' and inserting ``capture and sequestration 
     technologies related to industrial sources of carbon 
     dioxide'';
       (3) in subsection (b)--
       (A) in paragraph (3), by striking ``and'' at the end;
       (B) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(5) to expedite and carry out large-scale testing of 
     carbon sequestration systems in a range of geologic 
     formations that will provide information on the cost and 
     feasibility of deployment of sequestration technologies.''; 
     and
       (4) by striking subsection (c) and inserting the following:
       ``(c) Programmatic Activities.--
       ``(1) Fundamental science and engineering research and 
     development and demonstration supporting carbon capture and 
     sequestration technologies and carbon use activities.--
       ``(A) In general.--The Secretary shall carry out 
     fundamental science and engineering research (including 
     laboratory-scale experiments, numeric modeling, and 
     simulations) to develop and document the performance of new 
     approaches to capture and sequester, or use carbon dioxide to 
     lead to an overall reduction of carbon dioxide emissions.
       ``(B) Program integration.--The Secretary shall ensure that 
     fundamental research carried out under this paragraph is 
     appropriately applied to energy technology development 
     activities, the field testing of carbon sequestration, and 
     carbon use activities, including--
       ``(i) development of new or advanced technologies for the 
     capture and sequestration of carbon dioxide;
       ``(ii) development of new or advanced technologies that 
     reduce the cost and increase the efficacy of advanced 
     compression of carbon dioxide required for the sequestration 
     of carbon dioxide;
       ``(iii) modeling and simulation of geologic sequestration 
     field demonstrations;
       ``(iv) quantitative assessment of risks relating to 
     specific field sites for testing of sequestration 
     technologies;
       ``(v) research and development of new and advanced 
     technologies for carbon use, including recycling and reuse of 
     carbon dioxide; and

[[Page 33933]]

       ``(vi) research and development of new and advanced 
     technologies for the separation of oxygen from air.
       ``(2) Field validation testing activities.--
       ``(A) In general.--The Secretary shall promote, to the 
     maximum extent practicable, regional carbon sequestration 
     partnerships to conduct geologic sequestration tests 
     involving carbon dioxide injection and monitoring, 
     mitigation, and verification operations in a variety of 
     candidate geologic settings, including--
       ``(i) operating oil and gas fields;
       ``(ii) depleted oil and gas fields;
       ``(iii) unmineable coal seams;
       ``(iv) deep saline formations;
       ``(v) deep geologic systems that may be used as engineered 
     reservoirs to extract economical quantities of heat from 
     geothermal resources of low permeability or porosity; and
       ``(vi) deep geologic systems containing basalt formations.
       ``(B) Objectives.--The objectives of tests conducted under 
     this paragraph shall be--
       ``(i) to develop and validate geophysical tools, analysis, 
     and modeling to monitor, predict, and verify carbon dioxide 
     containment;
       ``(ii) to validate modeling of geologic formations;
       ``(iii) to refine sequestration capacity estimated for 
     particular geologic formations;
       ``(iv) to determine the fate of carbon dioxide concurrent 
     with and following injection into geologic formations;
       ``(v) to develop and implement best practices for 
     operations relating to, and monitoring of, carbon dioxide 
     injection and sequestration in geologic formations;
       ``(vi) to assess and ensure the safety of operations 
     related to geologic sequestration of carbon dioxide;
       ``(vii) to allow the Secretary to promulgate policies, 
     procedures, requirements, and guidance to ensure that the 
     objectives of this subparagraph are met in large-scale 
     testing and deployment activities for carbon capture and 
     sequestration that are funded by the Department of Energy; 
     and
       ``(viii) to provide information to States, the 
     Environmental Protection Agency, and other appropriate 
     entities to support development of a regulatory framework for 
     commercial-scale sequestration operations that ensure the 
     protection of human health and the environment.
       ``(3) Large-scale carbon dioxide sequestration testing.--
       ``(A) In general.--The Secretary shall conduct not less 
     than 7 initial large-scale sequestration tests, not including 
     the FutureGen project, for geologic containment of carbon 
     dioxide to collect and validate information on the cost and 
     feasibility of commercial deployment of technologies for 
     geologic containment of carbon dioxide. These 7 tests may 
     include any Regional Partnership projects awarded as of the 
     date of enactment of the Department of Energy Carbon Capture 
     and Sequestration Research, Development, and Demonstration 
     Act of 2007.
       ``(B) Diversity of formations to be studied.--In selecting 
     formations for study under this paragraph, the Secretary 
     shall consider a variety of geologic formations across the 
     United States, and require characterization and modeling of 
     candidate formations, as determined by the Secretary.
       ``(C) Source of carbon dioxide for large-scale 
     sequestration tests.--In the process of any acquisition of 
     carbon dioxide for sequestration tests under subparagraph 
     (A), the Secretary shall give preference to sources of carbon 
     dioxide from industrial sources. To the extent feasible, the 
     Secretary shall prefer tests that would facilitate the 
     creation of an integrated system of capture, transportation 
     and sequestration of carbon dioxide. The preference provided 
     for under this subparagraph shall not delay the 
     implementation of the large-scale sequestration tests under 
     this paragraph.
       ``(D) Definition.--For purposes of this paragraph, the term 
     `large-scale' means the injection of more than 1,000,000 tons 
     of carbon dioxide from industrial sources annually or a scale 
     that demonstrates the ability to inject and sequester several 
     million metric tons of industrial source carbon dioxide for a 
     large number of years.
       ``(4) Preference in project selection from meritorious 
     proposals.--In making competitive awards under this 
     subsection, subject to the requirements of section 989, the 
     Secretary shall--
       ``(A) give preference to proposals from partnerships among 
     industrial, academic, and government entities; and
       ``(B) require recipients to provide assurances that all 
     laborers and mechanics employed by contractors and 
     subcontractors in the construction, repair, or alteration of 
     new or existing facilities performed in order to carry out a 
     demonstration or commercial application activity authorized 
     under this subsection shall be paid wages at rates not less 
     than those prevailing on similar construction in the 
     locality, as determined by the Secretary of Labor in 
     accordance with subchapter IV of chapter 31 of title 40, 
     United States Code, and the Secretary of Labor shall, with 
     respect to the labor standards in this paragraph, have the 
     authority and functions set forth in Reorganization Plan 
     Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. Appendix) 
     and section 3145 of title 40, United States Code.
       ``(5) Cost sharing.--Activities under this subsection shall 
     be considered research and development activities that are 
     subject to the cost sharing requirements of section 988(b).
       ``(6) Program review and report.--During fiscal year 2011, 
     the Secretary shall--
       ``(A) conduct a review of programmatic activities carried 
     out under this subsection; and
       ``(B) make recommendations with respect to continuation of 
     the activities.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section--
       ``(1) $240,000,000 for fiscal year 2008;
       ``(2) $240,000,000 for fiscal year 2009;
       ``(3) $240,000,000 for fiscal year 2010;
       ``(4) $240,000,000 for fiscal year 2011; and
       ``(5) $240,000,000 for fiscal year 2012.''.
       (b) Table of Contents Amendment.--The item relating to 
     section 963 in the table of contents for the Energy Policy 
     Act of 2005 is amended to read as follows:

``Sec. 963. Carbon capture and sequestration research, development, and 
              demonstration program.''.

     SEC. 703. CARBON CAPTURE.

       (a) Program Establishment.--
       (1) In general.--The Secretary shall carry out a program to 
     demonstrate technologies for the large-scale capture of 
     carbon dioxide from industrial sources. In making awards 
     under this program, the Secretary shall select, as 
     appropriate, a diversity of capture technologies to address 
     the need to capture carbon dioxide from a range of industrial 
     sources.
       (2) Scope of award.--Awards under this section shall be 
     only for the portion of the project that--
       (A) carries out the large-scale capture (including 
     purification and compression) of carbon dioxide from 
     industrial sources;
       (B) provides for the transportation and injection of carbon 
     dioxide; and
       (C) incorporates a comprehensive measurement, monitoring, 
     and validation program.
       (3) Preferences for award.--To ensure reduced carbon 
     dioxide emissions, the Secretary shall take necessary actions 
     to provide for the integration of the program under this 
     paragraph with the large-scale carbon dioxide sequestration 
     tests described in section 963(c)(3) of the Energy Policy Act 
     of 2005 (42 U.S.C. 16293(c)(3)), as added by section 702 of 
     this subtitle. These actions should not delay implementation 
     of these tests. The Secretary shall give priority 
     consideration to projects with the following characteristics:
       (A) Capacity.--Projects that will capture a high percentage 
     of the carbon dioxide in the treated stream and large volumes 
     of carbon dioxide as determined by the Secretary.
       (B) Sequestration.--Projects that capture carbon dioxide 
     from industrial sources that are near suitable geological 
     reservoirs and could continue sequestration including--
       (i) a field testing validation activity under section 963 
     of the Energy Policy Act of 2005 (42 U.S.C. 16293), as 
     amended by this Act; or
       (ii) other geologic sequestration projects approved by the 
     Secretary.
       (4) Requirement.--For projects that generate carbon dioxide 
     that is to be sequestered, the carbon dioxide stream shall be 
     of a sufficient purity level to allow for safe transport and 
     sequestration.
       (5) Cost-sharing.--The cost-sharing requirements of section 
     988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) for 
     research and development projects shall apply to this 
     section.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $200,000,000 per year for fiscal years 2009 through 2013.

     SEC. 704. REVIEW OF LARGE-SCALE PROGRAMS.

       The Secretary shall enter into an arrangement with the 
     National Academy of Sciences for an independent review and 
     oversight, beginning in 2011, of the programs under section 
     963(c)(3) of the Energy Policy Act of 2005 (42 U.S.C. 
     16293(c)(3)), as added by section 702 of this subtitle, and 
     under section 703 of this subtitle, to ensure that the 
     benefits of such programs are maximized. Not later than 
     January 1, 2012, the Secretary shall transmit to the Congress 
     a report on the results of such review and oversight.

     SEC. 705. GEOLOGIC SEQUESTRATION TRAINING AND RESEARCH.

       (a) Study.--
       (1) In general.--The Secretary shall enter into an 
     arrangement with the National Academy of Sciences to 
     undertake a study that--
       (A) defines an interdisciplinary program in geology, 
     engineering, hydrology, environmental science, and related 
     disciplines that will support the Nation's capability to 
     capture and sequester carbon dioxide from anthropogenic 
     sources;
       (B) addresses undergraduate and graduate education, 
     especially to help develop graduate level programs of 
     research and instruction that lead to advanced degrees with 
     emphasis on geologic sequestration science;
       (C) develops guidelines for proposals from colleges and 
     universities with substantial capabilities in the required 
     disciplines that

[[Page 33934]]

     seek to implement geologic sequestration science programs 
     that advance the Nation's capacity to address carbon 
     management through geologic sequestration science; and
       (D) outlines a budget and recommendations for how much 
     funding will be necessary to establish and carry out the 
     grant program under subsection (b).
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     Congress a copy of the results of the study provided by the 
     National Academy of Sciences under paragraph (1).
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     subsection $1,000,000 for fiscal year 2008.
       (b) Grant Program.--
       (1) Establishment.--The Secretary shall establish a 
     competitive grant program through which colleges and 
     universities may apply for and receive 4-year grants for--
       (A) salary and startup costs for newly designated faculty 
     positions in an integrated geologic carbon sequestration 
     science program; and
       (B) internships for graduate students in geologic 
     sequestration science.
       (2) Renewal.--Grants under this subsection shall be 
     renewable for up to 2 additional 3-year terms, based on 
     performance criteria, established by the National Academy of 
     Sciences study conducted under subsection (a), that include 
     the number of graduates of such programs.
       (3) Interface with regional geologic carbon sequestration 
     partnerships.--To the greatest extent possible, geologic 
     carbon sequestration science programs supported under this 
     subsection shall interface with the research of the Regional 
     Carbon Sequestration Partnerships operated by the Department 
     to provide internships and practical training in carbon 
     capture and geologic sequestration.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     subsection such sums as may be necessary.

     SEC. 706. RELATION TO SAFE DRINKING WATER ACT.

       The injection and geologic sequestration of carbon dioxide 
     pursuant to this subtitle and the amendments made by this 
     subtitle shall be subject to the requirements of the Safe 
     Drinking Water Act (42 U.S.C. 300f et seq.), including the 
     provisions of part C of such Act (42 U.S.C. 300h et seq.; 
     relating to protection of underground sources of drinking 
     water). Nothing in this subtitle and the amendments made by 
     this subtitle imposes or authorizes the promulgation of any 
     requirement that is inconsistent or in conflict with the 
     requirements of the Safe Drinking Water Act (42 U.S.C. 300f 
     et seq.) or regulations thereunder.

     SEC. 707. SAFETY RESEARCH.

       (a) Program.--The Administrator of the Environmental 
     Protection Agency shall conduct a research program to address 
     public health, safety, and environmental impacts that may be 
     associated with capture, injection, and sequestration of 
     greenhouse gases in geologic reservoirs.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated for carrying out this section $5,000,000 
     for each fiscal year.

     SEC. 708. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT 
                   PROGRAM.

       (a) Establishment.--The Secretary, in consultation with 
     other appropriate agencies, shall establish a university 
     based research and development program to study carbon 
     capture and sequestration using the various types of coal.
       (b) Rural and Agricultural Institutions.--The Secretary 
     shall give special consideration to rural or agricultural 
     based institutions in areas that have regional sources of 
     coal and that offer interdisciplinary programs in the area of 
     environmental science to study carbon capture and 
     sequestration.
       (c) Authorization of Appropriations.--There are to be 
     authorized to be appropriated $10,000,000 to carry out this 
     section.

 Subtitle B--Carbon Capture and Sequestration Assessment and Framework

     SEC. 711. CARBON DIOXIDE SEQUESTRATION CAPACITY ASSESSMENT.

       (a) Definitions.--In this section
       (1) Assessment.--The term ``assessment'' means the national 
     assessment of onshore capacity for carbon dioxide completed 
     under subsection (f).
       (2) Capacity.--The term ``capacity'' means the portion of a 
     sequestration formation that can retain carbon dioxide in 
     accordance with the requirements (including physical, 
     geological, and economic requirements) established under the 
     methodology developed under subsection (b).
       (3) Engineered hazard.--The term ``engineered hazard'' 
     includes the location and completion history of any well that 
     could affect potential sequestration.
       (4) Risk.--The term ``risk'' includes any risk posed by 
     geomechanical, geochemical, hydrogeological, structural, and 
     engineered hazards.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Director of the United 
     States Geological Survey.
       (6) Sequestration formation.--The term ``sequestration 
     formation'' means a deep saline formation, unmineable coal 
     seam, or oil or gas reservoir that is capable of 
     accommodating a volume of industrial carbon dioxide.
       (b) Methodology.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall develop a 
     methodology for conducting an assessment under subsection 
     (f), taking into consideration--
       (1) the geographical extent of all potential sequestration 
     formations in all States;
       (2) the capacity of the potential sequestration formations;
       (3) the injectivity of the potential sequestration 
     formations;
       (4) an estimate of potential volumes of oil and gas 
     recoverable by injection and sequestration of industrial 
     carbon dioxide in potential sequestration formations;
       (5) the risk associated with the potential sequestration 
     formations; and
       (6) the work done to develop the Carbon Sequestration Atlas 
     of the United States and Canada that was completed by the 
     Department.
       (c) Coordination.--
       (1) Federal coordination.--
       (A) Consultation.--The Secretary shall consult with the 
     Secretary of Energy and the Administrator of the 
     Environmental Protection Agency on issues of data sharing, 
     format, development of the methodology, and content of the 
     assessment required under this section to ensure the maximum 
     usefulness and success of the assessment.
       (B) Cooperation.--The Secretary of Energy and the 
     Administrator shall cooperate with the Secretary to ensure, 
     to the maximum extent practicable, the usefulness and success 
     of the assessment.
       (2) State coordination.--The Secretary shall consult with 
     State geological surveys and other relevant entities to 
     ensure, to the maximum extent practicable, the usefulness and 
     success of the assessment.
       (d) External Review and Publication.--On completion of the 
     methodology under subsection (b), the Secretary shall--
       (1) publish the methodology and solicit comments from the 
     public and the heads of affected Federal and State agencies;
       (2) establish a panel of individuals with expertise in the 
     matters described in paragraphs (1) through (5) of subsection 
     (b) composed, as appropriate, of representatives of Federal 
     agencies, institutions of higher education, nongovernmental 
     organizations, State organizations, industry, and 
     international geoscience organizations to review the 
     methodology and comments received under paragraph (1); and
       (3) on completion of the review under paragraph (2), 
     publish in the Federal Register the revised final 
     methodology.
       (e) Periodic Updates.--The methodology developed under this 
     section shall be updated periodically (including at least 
     once every 5 years) to incorporate new data as the data 
     becomes available.
       (f) National Assessment.--
       (1) In general.--Not later than 2 years after the date of 
     publication of the methodology under subsection (d)(1), the 
     Secretary, in consultation with the Secretary of Energy and 
     State geological surveys, shall complete a national 
     assessment of capacity for carbon dioxide in accordance with 
     the methodology.
       (2) Geological verification.--As part of the assessment 
     under this subsection, the Secretary shall carry out a 
     drilling program to supplement the geological data relevant 
     to determining sequestration capacity of carbon dioxide in 
     geological sequestration formations, including--
       (A) well log data;
       (B) core data; and
       (C) fluid sample data.
       (3) Partnership with other drilling programs.--As part of 
     the drilling program under paragraph (2), the Secretary shall 
     enter, as appropriate, into partnerships with other entities 
     to collect and integrate data from other drilling programs 
     relevant to the sequestration of carbon dioxide in geological 
     formations.
       (4) Incorporation into natcarb.--
       (A) In general.--On completion of the assessment, the 
     Secretary of Energy and the Secretary of the Interior shall 
     incorporate the results of the assessment using--
       (i) the NatCarb database, to the maximum extent 
     practicable; or
       (ii) a new database developed by the Secretary of Energy, 
     as the Secretary of Energy determines to be necessary.
       (B) Ranking.--The database shall include the data necessary 
     to rank potential sequestration sites for capacity and risk, 
     across the United States, within each State, by formation, 
     and within each basin.
       (5) Report.--Not later than 180 days after the date on 
     which the assessment is completed, the Secretary shall submit 
     to the Committee on Energy and Natural Resources of the 
     Senate and the Committee on Natural Resources of the House of 
     Representatives a report describing the findings under the 
     assessment.
       (6) Periodic updates.--The national assessment developed 
     under this section shall be updated periodically (including 
     at least once every 5 years) to support public and private 
     sector decisionmaking.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $30,000,000 for 
     the period of fiscal years 2008 through 2012.

[[Page 33935]]



     SEC. 712. ASSESSMENT OF CARBON SEQUESTRATION AND METHANE AND 
                   NITROUS OXIDE EMISSIONS FROM ECOSYSTEMS.

       (a) Definitions.--In this section:
       (1) Adaptation strategy.--The term ``adaptation strategy'' 
     means a land use and management strategy that can be used--
       (A) to increase the sequestration capabilities of covered 
     greenhouse gases of any ecosystem; or
       (B) to reduce the emissions of covered greenhouse gases 
     from any ecosystem.
       (2) Assessment.--The term ``assessment'' means the national 
     assessment authorized under subsection (b).
       (3) Covered greenhouse gas.--The term ``covered greenhouse 
     gas'' means carbon dioxide, nitrous oxide, and methane gas.
       (4) Ecosystem.--The term ``ecosystem'' means any 
     terrestrial, freshwater aquatic, or coastal ecosystem, 
     including an estuary.
       (5) Native plant species.--The term ``native plant 
     species'' means any noninvasive, naturally occurring plant 
     species within an ecosystem.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Authorization of Assessment.--Not later than 2 years 
     after the date on which the final methodology is published 
     under subsection (f)(3)(D), the Secretary shall complete a 
     national assessment of--
       (1) the quantity of carbon stored in and released from 
     ecosystems, including from man-caused and natural fires; and
       (2) the annual flux of covered greenhouse gases in and out 
     of ecosystems.
       (c) Components.--In conducting the assessment under 
     subsection (b), the Secretary shall--
       (1) determine the processes that control the flux of 
     covered greenhouse gases in and out of each ecosystem;
       (2) estimate the potential for increasing carbon 
     sequestration in natural and managed ecosystems through 
     management activities or restoration activities in each 
     ecosystem;
       (3) develop near-term and long-term adaptation strategies 
     or mitigation strategies that can be employed--
       (A) to enhance the sequestration of carbon in each 
     ecosystem;
       (B) to reduce emissions of covered greenhouse gases from 
     ecosystems; and
       (C) to adapt to climate change; and
       (4) estimate the annual carbon sequestration capacity of 
     ecosystems under a range of policies in support of management 
     activities to optimize sequestration.
       (d) Use of Native Plant Species.--In developing restoration 
     activities under subsection (c)(2) and management strategies 
     and adaptation strategies under subsection (c)(3), the 
     Secretary shall emphasize the use of native plant species 
     (including mixtures of many native plant species) for 
     sequestering covered greenhouse gas in each ecosystem.
       (e) Consultation.--
       (1) In general.--In conducting the assessment under 
     subsection (b) and developing the methodology under 
     subsection (f), the Secretary shall consult with--
       (A) the Secretary of Energy;
       (B) the Secretary of Agriculture;
       (C) the Administrator of the Environmental Protection 
     Agency;
       (D) the Secretary of Commerce, acting through the Under 
     Secretary for Oceans and Atmosphere; and
       (E) the heads of other relevant agencies.
       (2) Ocean and coastal ecosystems.--In carrying out this 
     section with respect to ocean and coastal ecosystems 
     (including estuaries), the Secretary shall work jointly with 
     the Secretary of Commerce, acting through the Under Secretary 
     for Oceans and Atmosphere.
       (f) Methodology.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall develop a 
     methodology for conducting the assessment.
       (2) Requirements.--The methodology developed under 
     paragraph (1)--
       (A) shall--
       (i) determine the method for measuring, monitoring, and 
     quantifying covered greenhouse gas emissions and reductions;
       (ii) estimate the total capacity of each ecosystem to 
     sequester carbon; and
       (iii) estimate the ability of each ecosystem to reduce 
     emissions of covered greenhouse gases through management 
     practices; and
       (B) may employ economic and other systems models, analyses, 
     and estimates, to be developed in consultation with each of 
     the individuals described in subsection (e).
       (3) External review and publication.--On completion of a 
     proposed methodology, the Secretary shall--
       (A) publish the proposed methodology;
       (B) at least 60 days before the date on which the final 
     methodology is published, solicit comments from--
       (i) the public; and
       (ii) heads of affected Federal and State agencies;
       (C) establish a panel to review the proposed methodology 
     published under subparagraph (A) and any comments received 
     under subparagraph (B), to be composed of members--
       (i) with expertise in the matters described in subsections 
     (c) and (d); and
       (ii) that are, as appropriate, representatives of Federal 
     agencies, institutions of higher education, nongovernmental 
     organizations, State organizations, industry, and 
     international organizations; and
       (D) on completion of the review under subparagraph (C), 
     publish in the Federal register the revised final 
     methodology.
       (g) Estimate; Review.--The Secretary shall--
       (1) based on the assessment, prescribe the data, 
     information, and analysis needed to establish a 
     scientifically sound estimate of the carbon sequestration 
     capacity of relevant ecosystems; and
       (2) not later than 180 days after the date on which the 
     assessment is completed, submit to the heads of applicable 
     Federal agencies and the appropriate committees of Congress a 
     report that describes the results of the assessment.
       (h) Data and Report Availability.--On completion of the 
     assessment, the Secretary shall incorporate the results of 
     the assessment into a web-accessible database for public use.
       (i) Authorization.--There is authorized to be appropriated 
     to carry out this section $20,000,000 for the period of 
     fiscal years 2008 through 2012.

     SEC. 713. CARBON DIOXIDE SEQUESTRATION INVENTORY.

       Section 354 of the Energy Policy Act of 2005 (42 U.S.C. 
     15910) is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following:
       ``(d) Records and Inventory.--The Secretary of the 
     Interior, acting through the Bureau of Land Management, shall 
     maintain records on, and an inventory of, the quantity of 
     carbon dioxide stored within Federal mineral leaseholds.''.

     SEC. 714. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON 
                   PUBLIC LAND.

       (a) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     submit to the Committee on Natural Resources of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate a report on a recommended framework 
     for managing geological carbon sequestration activities on 
     public land.
       (b) Contents.--The report required by subsection (a) shall 
     include the following:
       (1) Recommended criteria for identifying candidate 
     geological sequestration sites in each of the following types 
     of geological settings:
       (A) Operating oil and gas fields.
       (B) Depleted oil and gas fields.
       (C) Unmineable coal seams.
       (D) Deep saline formations.
       (E) Deep geological systems that may be used as engineered 
     reservoirs to extract economical quantities of heat from 
     geothermal resources of low permeability or porosity.
       (F) Deep geological systems containing basalt formations.
       (G) Coalbeds being used for methane recovery.
       (2) A proposed regulatory framework for the leasing of 
     public land or an interest in public land for the long-term 
     geological sequestration of carbon dioxide, which includes an 
     assessment of options to ensure that the United States 
     receives fair market value for the use of public land or an 
     interest in public land for geological sequestration.
       (3) A proposed procedure for ensuring that any geological 
     carbon sequestration activities on public land--
       (A) provide for public review and comment from all 
     interested persons; and
       (B) protect the quality of natural and cultural resources 
     of the public land overlaying a geological sequestration 
     site.
       (4) A description of the status of Federal leasehold or 
     Federal mineral estate liability issues related to the 
     geological subsurface trespass of or caused by carbon dioxide 
     stored in public land, including any relevant experience from 
     enhanced oil recovery using carbon dioxide on public land.
       (5) Recommendations for additional legislation that may be 
     required to ensure that public land management and leasing 
     laws are adequate to accommodate the long-term geological 
     sequestration of carbon dioxide.
       (6) An identification of the legal and regulatory issues 
     specific to carbon dioxide sequestration on land in cases in 
     which title to mineral resources is held by the United States 
     but title to the surface estate is not held by the United 
     States.
       (7)(A) An identification of the issues specific to the 
     issuance of pipeline rights-of-way on public land under the 
     Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1701 et 
     seq.) for natural or anthropogenic carbon dioxide.
       (B) Recommendations for additional legislation that may be 
     required to clarify the appropriate framework for issuing 
     rights-of-way for carbon dioxide pipelines on public land.
       (c) Consultation With Other Agencies.--In preparing the 
     report under this section, the Secretary of the Interior 
     shall coordinate with--
       (1) the Administrator of the Environmental Protection 
     Agency;
       (2) the Secretary of Energy; and
       (3) the heads of other appropriate agencies.

[[Page 33936]]

       (d) Compliance With Safe Drinking Water Act.--The Secretary 
     shall ensure that all recommendations developed under this 
     section are in compliance with all Federal environmental 
     laws, including the Safe Drinking Water Act (42 U.S.C. 300f 
     et seq.) and regulations under that Act.

            TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

                  Subtitle A--Management Improvements

     SEC. 801. NATIONAL MEDIA CAMPAIGN.

       (a) In General.--The Secretary, acting through the 
     Assistant Secretary for Energy Efficiency and Renewable 
     Energy (referred to in this section as the ``Secretary''), 
     shall develop and conduct a national media campaign--
       (1) to increase energy efficiency throughout the economy of 
     the United States during the 10-year period beginning on the 
     date of enactment of this Act;
       (2) to promote the national security benefits associated 
     with increased energy efficiency; and
       (3) to decrease oil consumption in the United States during 
     the 10-year period beginning on the date of enactment of this 
     Act.
       (b) Contract With Entity.--The Secretary shall carry out 
     subsection (a) directly or through--
       (1) competitively bid contracts with 1 or more nationally 
     recognized media firms for the development and distribution 
     of monthly television, radio, and newspaper public service 
     announcements; or
       (2) collective agreements with 1 or more nationally 
     recognized institutes, businesses, or nonprofit organizations 
     for the funding, development, and distribution of monthly 
     television, radio, and newspaper public service 
     announcements.
       (c) Use of Funds.--
       (1) In general.--Amounts made available to carry out this 
     section shall be used for--
       (A) advertising costs, including--
       (i) the purchase of media time and space;
       (ii) creative and talent costs;
       (iii) testing and evaluation of advertising; and
       (iv) evaluation of the effectiveness of the media campaign; 
     and
       (B) administrative costs, including operational and 
     management expenses.
       (2) Limitations.--In carrying out this section, the 
     Secretary shall allocate not less than 85 percent of funds 
     made available under subsection (e) for each fiscal year for 
     the advertising functions specified under paragraph (1)(A).
       (d) Reports.--The Secretary shall annually submit to 
     Congress a report that describes--
       (1) the strategy of the national media campaign and whether 
     specific objectives of the campaign were accomplished, 
     including--
       (A) determinations concerning the rate of change of energy 
     consumption, in both absolute and per capita terms; and
       (B) an evaluation that enables consideration of whether the 
     media campaign contributed to reduction of energy 
     consumption;
       (2) steps taken to ensure that the national media campaign 
     operates in an effective and efficient manner consistent with 
     the overall strategy and focus of the campaign;
       (3) plans to purchase advertising time and space;
       (4) policies and practices implemented to ensure that 
     Federal funds are used responsibly to purchase advertising 
     time and space and eliminate the potential for waste, fraud, 
     and abuse; and
       (5) all contracts or cooperative agreements entered into 
     with a corporation, partnership, or individual working on 
     behalf of the national media campaign.
       (e) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $5,000,000 for each of fiscal years 
     2008 through 2012.
       (2) Decreased oil consumption.--The Secretary shall use not 
     less than 50 percent of the amount that is made available 
     under this section for each fiscal year to develop and 
     conduct a national media campaign to decrease oil consumption 
     in the United States over the next decade.

     SEC. 802. ALASKA NATURAL GAS PIPELINE ADMINISTRATION.

       Section 106 of the Alaska Natural Gas Pipeline Act (15 
     U.S.C. 720d) is amended by adding at the end the following:
       ``(h) Administration.--
       ``(1) Personnel appointments.--
       ``(A) In general.--The Federal Coordinator may appoint and 
     terminate such personnel as the Federal Coordinator 
     determines to be appropriate.
       ``(B) Authority of federal coordinator.--Personnel 
     appointed by the Federal Coordinator under subparagraph (A) 
     shall be appointed without regard to the provisions of title 
     5, United States Code, governing appointments in the 
     competitive service.
       ``(2) Compensation.--
       ``(A) In general.--Subject to subparagraph (B), personnel 
     appointed by the Federal Coordinator under paragraph (1)(A) 
     shall be paid without regard to the provisions of chapter 51 
     and subchapter III of chapter 53 of title 5, United States 
     Code (relating to classification and General Schedule pay 
     rates).
       ``(B) Maximum level of compensation.--The rate of pay for 
     personnel appointed by the Federal Coordinator under 
     paragraph (1)(A) shall not exceed the maximum level of rate 
     payable for level III of the Executive Schedule (5 U.S.C. 
     5314).
       ``(C) Allowances.--Section 5941 of title 5, United States 
     Code, shall apply to personnel appointed by the Federal 
     Coordinator under paragraph (1)(A).
       ``(3) Temporary services.--
       ``(A) In general.--The Federal Coordinator may procure 
     temporary and intermittent services in accordance with 
     section 3109(b) of title 5, United States Code.
       ``(B) Maximum level of compensation.--The level of 
     compensation of an individual employed on a temporary or 
     intermittent basis under subparagraph (A) shall not exceed 
     the maximum level of rate payable for level III of the 
     Executive Schedule (5 U.S.C. 5314).
       ``(4) Fees, charges, and commissions.--
       ``(A) In general.--With respect to the duties of the 
     Federal Coordinator, as described in this Act, the Federal 
     Coordinator shall have similar authority to establish, 
     change, and abolish reasonable filing and service fees, 
     charges, and commissions, require deposits of payments, and 
     provide refunds as provided to the Secretary of the Interior 
     in section 304 of the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1734).
       ``(B) Authority of secretary of the interior.--Subparagraph 
     (A) shall not affect the authority of the Secretary of the 
     Interior to establish, change, and abolish reasonable filing 
     and service fees, charges, and commissions, require deposits 
     of payments, and provide refunds under section 304 of the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1734).
       ``(C) Use of funds.--The Federal Coordinator is authorized 
     to use, without further appropriation, amounts collected 
     under subparagraph (A) to carry out this section.''.

     SEC. 803. RENEWABLE ENERGY DEPLOYMENT.

       (a) Definitions.--In this section:
       (1) Alaska small hydroelectric power.--The term ``Alaska 
     small hydroelectric power'' means power that--
       (A) is generated--
       (i) in the State of Alaska;
       (ii) without the use of a dam or impoundment of water; and
       (iii) through the use of--

       (I) a lake tap (but not a perched alpine lake); or
       (II) a run-of-river screened at the point of diversion; and

       (B) has a nameplate capacity rating of a wattage that is 
     not more than 15 megawatts.
       (2) Eligible applicant.--The term ``eligible applicant'' 
     means any--
       (A) governmental entity;
       (B) private utility;
       (C) public utility;
       (D) municipal utility;
       (E) cooperative utility;
       (F) Indian tribes; and
       (G) Regional Corporation (as defined in section 3 of the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1602)).
       (3) Ocean energy.--
       (A) Inclusions.--The term ``ocean energy'' includes 
     current, wave, and tidal energy.
       (B) Exclusion.--The term ``ocean energy'' excludes thermal 
     energy.
       (4) Renewable energy project.--The term ``renewable energy 
     project'' means a project--
       (A) for the commercial generation of electricity; and
       (B) that generates electricity from--
       (i) solar, wind, or geothermal energy or ocean energy;
       (ii) biomass (as defined in section 203(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 15852(b)));
       (iii) landfill gas; or
       (iv) Alaska small hydroelectric power.
       (b) Renewable Energy Construction Grants.--
       (1) In general.--The Secretary shall use amounts 
     appropriated under this section to make grants for use in 
     carrying out renewable energy projects.
       (2) Criteria.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall set forth criteria 
     for use in awarding grants under this section.
       (3) Application.--To receive a grant from the Secretary 
     under paragraph (1), an eligible applicant shall submit to 
     the Secretary an application at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including a written assurance that--
       (A) all laborers and mechanics employed by contractors or 
     subcontractors during construction, alteration, or repair 
     that is financed, in whole or in part, by a grant under this 
     section shall be paid wages at rates not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor in accordance with 
     sections 3141-3144, 3146, and 3147 of title 40, United States 
     Code; and
       (B) the Secretary of Labor shall, with respect to the labor 
     standards described in this paragraph, have the authority and 
     functions set forth in Reorganization Plan Numbered 14 of 
     1950 (5 U.S.C. App.) and section 3145 of title 40, United 
     States Code.
       (4) Non-federal share.--Each eligible applicant that 
     receives a grant under this subsection shall contribute to 
     the total cost of the renewable energy project constructed by 
     the eligible applicant an amount not less than 50 percent of 
     the total cost of the project.

[[Page 33937]]

       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Fund such sums as are necessary to 
     carry out this section.

     SEC. 804. COORDINATION OF PLANNED REFINERY OUTAGES.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Energy Information Administration.
       (2) Planned refinery outage.--
       (A) In general.--The term ``planned refinery outage'' means 
     a removal, scheduled before the date on which the removal 
     occurs, of a refinery, or any unit of a refinery, from 
     service for maintenance, repair, or modification.
       (B) Exclusion.--The term ``planned refinery outage'' does 
     not include any necessary and unplanned removal of a 
     refinery, or any unit of a refinery, from service as a result 
     of a component failure, safety hazard, emergency, or action 
     reasonably anticipated to be necessary to prevent such 
     events.
       (3) Refined petroleum product.--The term ``refined 
     petroleum product'' means any gasoline, diesel fuel, fuel 
     oil, lubricating oil, liquid petroleum gas, or other 
     petroleum distillate that is produced through the refining or 
     processing of crude oil or an oil derived from tar sands, 
     shale, or coal.
       (4) Refinery.--The term ``refinery'' means a facility used 
     in the production of a refined petroleum product through 
     distillation, cracking, or any other process.
       (b) Review and Analysis of Available Information.--The 
     Administrator shall, on an ongoing basis--
       (1) review information on refinery outages that is 
     available from commercial reporting services;
       (2) analyze that information to determine whether the 
     scheduling of a refinery outage may nationally or regionally 
     substantially affect the price or supply of any refined 
     petroleum product by--
       (A) decreasing the production of the refined petroleum 
     product; and
       (B) causing or contributing to a retail or wholesale supply 
     shortage or disruption;
       (3) not less frequently than twice each year, submit to the 
     Secretary a report describing the results of the review and 
     analysis under paragraphs (1) and (2); and
       (4) specifically alert the Secretary of any refinery outage 
     that the Administrator determines may nationally or 
     regionally substantially affect the price or supply of a 
     refined petroleum product.
       (c) Action by Secretary.--On a determination by the 
     Secretary, based on a report or alert under paragraph (3) or 
     (4) of subsection (b), that a refinery outage may affect the 
     price or supply of a refined petroleum product, the Secretary 
     shall make available to refinery operators information on 
     planned refinery outages to encourage reductions of the 
     quantity of refinery capacity that is out of service at any 
     time.
       (d) Limitation.--Nothing in this section shall alter any 
     existing legal obligation or responsibility of a refinery 
     operator, or create any legal right of action, nor shall this 
     section authorize the Secretary--
       (1) to prohibit a refinery operator from conducting a 
     planned refinery outage; or
       (2) to require a refinery operator to continue to operate a 
     refinery.

     SEC. 805. ASSESSMENT OF RESOURCES.

       (a) 5-Year Plan.--
       (1) Establishment.--The Administrator of the Energy 
     Information Administration (referred to in this section as 
     the ``Administrator'') shall establish a 5-year plan to 
     enhance the quality and scope of the data collection 
     necessary to ensure the scope, accuracy, and timeliness of 
     the information needed for efficient functioning of energy 
     markets and related financial operations.
       (2) Requirement.--In establishing the plan under paragraph 
     (1), the Administrator shall pay particular attention to--
       (A) data series terminated because of budget constraints;
       (B) data on demand response;
       (C) timely data series of State-level information;
       (D) improvements in the area of oil and gas data;
       (E) improvements in data on solid byproducts from coal-
     based energy-producing facilities; and
       (F) the ability to meet applicable deadlines under Federal 
     law (including regulations) to provide data required by 
     Congress.
       (b) Submission to Congress.--The Administrator shall submit 
     to Congress the plan established under subsection (a), 
     including a description of any improvements needed to enhance 
     the ability of the Administrator to collect and process 
     energy information in a manner consistent with the needs of 
     energy markets.
       (c) Guidelines.--
       (1) In general.--The Administrator shall--
       (A) establish guidelines to ensure the quality, 
     comparability, and scope of State energy data, including data 
     on energy production and consumption by product and sector 
     and renewable and alternative sources, required to provide a 
     comprehensive, accurate energy profile at the State level;
       (B) share company-level data collected at the State level 
     with each State involved, in a manner consistent with the 
     legal authorities, confidentiality protections, and stated 
     uses in effect at the time the data were collected, subject 
     to the condition that the State shall agree to reasonable 
     requirements for use of the data, as the Administrator may 
     require;
       (C) assess any existing gaps in data obtained and compiled 
     by the Energy Information Administration; and
       (D) evaluate the most cost-effective ways to address any 
     data quality and quantity issues in conjunction with State 
     officials.
       (2) Consultation.--The Administrator shall consult with 
     State officials and the Federal Energy Regulatory Commission 
     on a regular basis in--
       (A) establishing guidelines and determining the scope of 
     State-level data under paragraph (1); and
       (B) exploring ways to address data needs and serve data 
     uses.
       (d) Assessment of State Data Needs.--Not later than 1 year 
     after the date of enactment of this Act, the Administrator 
     shall submit to Congress an assessment of State-level data 
     needs, including a plan to address the needs.
       (e) Authorization of Appropriations.--In addition to any 
     other amounts made available to the Administrator, there are 
     authorized to be appropriated to the Administrator to carry 
     out this section--
       (1) $10,000,000 for fiscal year 2008;
       (2) $10,000,000 for fiscal year 2009;
       (3) $10,000,000 for fiscal year 2010;
       (4) $15,000,000 for fiscal year 2011;
       (5) $20,000,000 for fiscal year 2012; and
       (6) such sums as are necessary for subsequent fiscal years.

     SEC. 806. SENSE OF CONGRESS RELATING TO THE USE OF RENEWABLE 
                   RESOURCES TO GENERATE ENERGY.

       (a) Findings.--Congress finds that--
       (1) the United States has a quantity of renewable energy 
     resources that is sufficient to supply a significant portion 
     of the energy needs of the United States;
       (2) the agricultural, forestry, and working land of the 
     United States can help ensure a sustainable domestic energy 
     system;
       (3) accelerated development and use of renewable energy 
     technologies provide numerous benefits to the United States, 
     including improved national security, improved balance of 
     payments, healthier rural economies, improved environmental 
     quality, and abundant, reliable, and affordable energy for 
     all citizens of the United States;
       (4) the production of transportation fuels from renewable 
     energy would help the United States meet rapidly growing 
     domestic and global energy demands, reduce the dependence of 
     the United States on energy imported from volatile regions of 
     the world that are politically unstable, stabilize the cost 
     and availability of energy, and safeguard the economy and 
     security of the United States;
       (5) increased energy production from domestic renewable 
     resources would attract substantial new investments in energy 
     infrastructure, create economic growth, develop new jobs for 
     the citizens of the United States, and increase the income 
     for farm, ranch, and forestry jobs in the rural regions of 
     the United States;
       (6) increased use of renewable energy is practical and can 
     be cost effective with the implementation of supportive 
     policies and proper incentives to stimulate markets and 
     infrastructure; and
       (7) public policies aimed at enhancing renewable energy 
     production and accelerating technological improvements will 
     further reduce energy costs over time and increase market 
     demand.
       (b) Sense of Congress.--It is the sense of Congress that it 
     is the goal of the United States that, not later than January 
     1, 2025, the agricultural, forestry, and working land of the 
     United States should--
       (1) provide from renewable resources not less than 25 
     percent of the total energy consumed in the United States; 
     and
       (2) continue to produce safe, abundant, and affordable 
     food, feed, and fiber.

     SEC. 807. GEOTHERMAL ASSESSMENT, EXPLORATION INFORMATION, AND 
                   PRIORITY ACTIVITIES.

       (a) In General.--Not later than January 1, 2012, the 
     Secretary of the Interior, acting through the Director of the 
     United States Geological Survey, shall--
       (1) complete a comprehensive nationwide geothermal resource 
     assessment that examines the full range of geothermal 
     resources in the United States; and
       (2) submit to the the Committee on Natural Resources of the 
     House of Representatives and the Committee on Energy and 
     Natural Resources of the Senate a report describing the 
     results of the assessment.
       (b) Periodic Updates.--At least once every 10 years, the 
     Secretary shall update the national assessment required under 
     this section to support public and private sector 
     decisionmaking.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of the Interior to carry 
     out this section--
       (1) $15,000,000 for each of fiscal years 2008 through 2012; 
     and
       (2) such sums as are necessary for each of fiscal years 
     2013 through 2022.

[[Page 33938]]



 Subtitle B--Prohibitions on Market Manipulation and False Information

     SEC. 811. PROHIBITION ON MARKET MANIPULATION.

       It is unlawful for any person, directly or indirectly, to 
     use or employ, in connection with the purchase or sale of 
     crude oil gasoline or petroleum distillates at wholesale, any 
     manipulative or deceptive device or contrivance, in 
     contravention of such rules and regulations as the Federal 
     Trade Commission may prescribe as necessary or appropriate in 
     the public interest or for the protection of United States 
     citizens.

     SEC. 812. PROHIBITION ON FALSE INFORMATION.

       It is unlawful for any person to report information related 
     to the wholesale price of crude oil gasoline or petroleum 
     distillates to a Federal department or agency if--
       (1) the person knew, or reasonably should have known, the 
     information to be false or misleading;
       (2) the information was required by law to be reported; and
       (3) the person intended the false or misleading data to 
     affect data compiled by the department or agency for 
     statistical or analytical purposes with respect to the market 
     for crude oil, gasoline, or petroleum distillates.

     SEC. 813. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

       (a) Enforcement.--This subtitle shall be enforced by the 
     Federal Trade Commission in the same manner, by the same 
     means, and with the same jurisdiction as though all 
     applicable terms of the Federal Trade Commission Act (15 
     U.S.C. 41 et seq.) were incorporated into and made a part of 
     this subtitle.
       (b) Violation Is Treated as Unfair or Deceptive Act or 
     Practice.--The violation of any provision of this subtitle 
     shall be treated as an unfair or deceptive act or practice 
     proscribed under a rule issued under section 18(a)(1)(B) of 
     the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

     SEC. 814. PENALTIES.

       (a) Civil Penalty.--In addition to any penalty applicable 
     under the Federal Trade Commission Act (15 U.S.C. 41 et 
     seq.), any supplier that violates section 811 or 812 shall be 
     punishable by a civil penalty of not more than $1,000,000.
       (b) Method.--The penalties provided by subsection (a) shall 
     be obtained in the same manner as civil penalties imposed 
     under section 5 of the Federal Trade Commission Act (15 
     U.S.C. 45).
       (c) Multiple Offenses; Mitigating Factors.--In assessing 
     the penalty provided by subsection (a)--
       (1) each day of a continuing violation shall be considered 
     a separate violation; and
       (2) the court shall take into consideration, among other 
     factors--
       (A) the seriousness of the violation; and
       (B) the efforts of the person committing the violation to 
     remedy the harm caused by the violation in a timely manner.

     SEC. 815. EFFECT ON OTHER LAWS.

       (a) Other Authority of the Commission.--Nothing in this 
     subtitle limits or affects the authority of the Federal Trade 
     Commission to bring an enforcement action or take any other 
     measure under the Federal Trade Commission Act (15 U.S.C. 41 
     et seq.) or any other provision of law.
       (b) Antitrust Law.--Nothing in this subtitle shall be 
     construed to modify, impair, or supersede the operation of 
     any of the antitrust laws. For purposes of this subsection, 
     the term ``antitrust laws'' shall have the meaning given it 
     in subsection (a) of the first section of the Clayton Act (15 
     U.S.C. 12), except that it includes section 5 of the Federal 
     Trade Commission Act (15 U.S.C. 45) to the extent that such 
     section 5 applies to unfair methods of competition.
       (c) State Law.--Nothing in this subtitle preempts any State 
     law.

                TITLE IX--INTERNATIONAL ENERGY PROGRAMS

     SEC. 901. DEFINITIONS.

       In this title:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Foreign Affairs and the Committee on 
     Energy and Commerce of the House of Representatives; and
       (B) the Committee on Foreign Relations, the Committee on 
     Energy and Natural Resources, the Committee on Environment 
     and Public Works of the Senate, and the Committee on 
     Commerce, Science, and Transportation.
       (2) Clean and efficient energy technology.--The term 
     ``clean and efficient energy technology'' means an energy 
     supply or end-use technology that, compared to a similar 
     technology already in widespread commercial use in a 
     recipient country, will--
       (A) reduce emissions of greenhouse gases; or
       (B)(i) increase efficiency of energy production; or
       (ii) decrease intensity of energy usage.
       (3) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) carbon dioxide;
       (B) methane;
       (C) nitrous oxide;
       (D) hydrofluorocarbons;
       (E) perfluorocarbons; or
       (F) sulfur hexafluoride.

     Subtitle A--Assistance to Promote Clean and Efficient Energy 
                   Technologies in Foreign Countries

     SEC. 911. UNITED STATES ASSISTANCE FOR DEVELOPING COUNTRIES.

       (a) Assistance Authorized.--The Administrator of the United 
     States Agency for International Development shall support 
     policies and programs in developing countries that promote 
     clean and efficient energy technologies--
       (1) to produce the necessary market conditions for the 
     private sector delivery of energy and environmental 
     management services;
       (2) to create an environment that is conducive to accepting 
     clean and efficient energy technologies that support the 
     overall purpose of reducing greenhouse gas emissions, 
     including--
       (A) improving policy, legal, and regulatory frameworks;
       (B) increasing institutional abilities to provide energy 
     and environmental management services; and
       (C) increasing public awareness and participation in the 
     decision-making of delivering energy and environmental 
     management services; and
       (3) to promote the use of American-made clean and efficient 
     energy technologies, products, and energy and environmental 
     management services.
       (b) Report.--The Administrator of the United States Agency 
     for International Development shall submit to the appropriate 
     congressional committees an annual report on the 
     implementation of this section for each of the fiscal years 
     2008 through 2012.
       (c) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated to the 
     Administrator of the United States Agency for International 
     Development $200,000,000 for each of the fiscal years 2008 
     through 2012.

     SEC. 912. UNITED STATES EXPORTS AND OUTREACH PROGRAMS FOR 
                   INDIA, CHINA, AND OTHER COUNTRIES.

       (a) Assistance Authorized.--The Secretary of Commerce shall 
     direct the United States and Foreign Commercial Service to 
     expand or create a corps of the Foreign Commercial Service 
     officers to promote United States exports in clean and 
     efficient energy technologies and build the capacity of 
     government officials in India, China, and any other country 
     the Secretary of Commerce determines appropriate, to become 
     more familiar with the available technologies--
       (1) by assigning or training Foreign Commercial Service 
     attaches, who have expertise in clean and efficient energy 
     technologies from the United States, to embark on business 
     development and outreach efforts to such countries; and
       (2) by deploying the attaches described in paragraph (1) to 
     educate provincial, state, and local government officials in 
     such countries on the variety of United States-based 
     technologies in clean and efficient energy technologies for 
     the purposes of promoting United States exports and reducing 
     global greenhouse gas emissions.
       (b) Report.--The Secretary of Commerce shall submit to the 
     appropriate congressional committees an annual report on the 
     implementation of this section for each of the fiscal years 
     2008 through 2012.
       (c) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated to the 
     Secretary of Commerce such sums as may be necessary for each 
     of the fiscal years 2008 through 2012.

     SEC. 913. UNITED STATES TRADE MISSIONS TO ENCOURAGE PRIVATE 
                   SECTOR TRADE AND INVESTMENT.

       (a) Assistance Authorized.--The Secretary of Commerce shall 
     direct the International Trade Administration to expand or 
     create trade missions to and from the United States to 
     encourage private sector trade and investment in clean and 
     efficient energy technologies--
       (1) by organizing and facilitating trade missions to 
     foreign countries and by matching United States private 
     sector companies with opportunities in foreign markets so 
     that clean and efficient energy technologies can help to 
     combat increases in global greenhouse gas emissions; and
       (2) by creating reverse trade missions in which the 
     Department of Commerce facilitates the meeting of foreign 
     private and public sector organizations with private sector 
     companies in the United States for the purpose of showcasing 
     clean and efficient energy technologies in use or in 
     development that could be exported to other countries.
       (b) Report.--The Secretary of Commerce shall submit to the 
     appropriate congressional committees an annual report on the 
     implementation of this section for each of the fiscal years 
     2008 through 2012.
       (c) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated to the 
     Secretary of Commerce such sums as may be necessary for each 
     of the fiscal years 2008 through 2012.

     SEC. 914. ACTIONS BY OVERSEAS PRIVATE INVESTMENT CORPORATION.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Overseas Private Investment Corporation should promote 
     greater investment in clean and efficient energy technologies 
     by--

[[Page 33939]]

       (1) proactively reaching out to United States companies 
     that are interested in investing in clean and efficient 
     energy technologies in countries that are significant 
     contributors to global greenhouse gas emissions;
       (2) giving preferential treatment to the evaluation and 
     awarding of projects that involve the investment or 
     utilization of clean and efficient energy technologies; and
       (3) providing greater flexibility in supporting projects 
     that involve the investment or utilization of clean and 
     efficient energy technologies, including financing, 
     insurance, and other assistance.
       (b) Report.--The Overseas Private Investment Corporation 
     shall include in its annual report required under section 
     240A of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2200a)--
       (1) a description of the activities carried out to 
     implement this section; or
       (2) if the Corporation did not carry out any activities to 
     implement this section, an explanation of the reasons 
     therefor.

     SEC. 915. ACTIONS BY UNITED STATES TRADE AND DEVELOPMENT 
                   AGENCY.

       (a) Assistance Authorized.--The Director of the Trade and 
     Development Agency shall establish or support policies that--
       (1) proactively seek opportunities to fund projects that 
     involve the utilization of clean and efficient energy 
     technologies, including in trade capacity building and 
     capital investment projects;
       (2) where appropriate, advance the utilization of clean and 
     efficient energy technologies, particularly to countries that 
     have the potential for significant reduction in greenhouse 
     gas emissions; and
       (3) recruit and retain individuals with appropriate 
     expertise or experience in clean, renewable, and efficient 
     energy technologies to identify and evaluate opportunities 
     for projects that involve clean and efficient energy 
     technologies and services.
       (b) Report.--The President shall include in the annual 
     report on the activities of the Trade and Development Agency 
     required under section 661(d) of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2421(d)) a description of the activities 
     carried out to implement this section.

     SEC. 916. DEPLOYMENT OF INTERNATIONAL CLEAN AND EFFICIENT 
                   ENERGY TECHNOLOGIES AND INVESTMENT IN GLOBAL 
                   ENERGY MARKETS.

       (a) Task Force.--
       (1) Establishment.--Not later than 90 days after the date 
     of the enactment of this Act, the President shall establish a 
     Task Force on International Cooperation for Clean and 
     Efficient Energy Technologies (in this section referred to as 
     the ``Task Force'').
       (2) Composition.--The Task Force shall be composed of 
     representatives, appointed by the head of the respective 
     Federal department or agency, of--
       (A) the Council on Environmental Quality;
       (B) the Department of Energy;
       (C) the Department of Commerce;
       (D) the Department of the Treasury;
       (E) the Department of State;
       (F) the Environmental Protection Agency;
       (G) the United States Agency for International Development;
       (H) the Export-Import Bank of the United States;
       (I) the Overseas Private Investment Corporation:
       (J) the Trade and Development Agency;
       (K) the Small Business Administration;
       (L) the Office of the United States Trade Representative; 
     and
       (M) other Federal departments and agencies, as determined 
     by the President.
       (3) Chairperson.--The President shall designate a 
     Chairperson or Co-Chairpersons of the Task Force.
       (4) Duties.--The Task Force--
       (A) shall develop and assist in the implementation of the 
     strategy required under subsection (c); and
       (B)(i) shall analyze technology, policy, and market 
     opportunities for the development, demonstration, and 
     deployment of clean and efficient energy technologies on an 
     international basis; and
       (ii) shall examine relevant trade, tax, finance, 
     international, and other policy issues to assess which 
     policies, in the United States and in developing countries, 
     would help open markets and improve the export of clean and 
     efficient energy technologies from the United States.
       (5) Termination.--The Task Force, including any working 
     group established by the Task Force pursuant to subsection 
     (b), shall terminate 12 years after the date of the enactment 
     of this Act.
       (b) Working Groups.--
       (1) Establishment.--The Task Force--
       (A) shall establish an Interagency Working Group on the 
     Export of Clean and Efficient Energy Technologies (in this 
     section referred to as the ``Interagency Working Group''); 
     and
       (B) may establish other working groups as may be necessary 
     to carry out this section.
       (2) Composition.--The Interagency Working Group shall be 
     composed of--
       (A) the Secretary of Energy, the Secretary of Commerce, and 
     the Secretary of State, who shall serve as Co-Chairpersons of 
     the Interagency Working Group; and
       (B) other members, as determined by the Chairperson or Co-
     Chairpersons of the Task Force.
       (3) Duties.--The Interagency Working Group shall coordinate 
     the resources and relevant programs of the Department of 
     Energy, the Department of Commerce, the Department of State, 
     and other relevant Federal departments and agencies to 
     support the export of clean and efficient energy technologies 
     developed or demonstrated in the United States to other 
     countries and the deployment of such clean and efficient 
     energy technologies in such other countries.
       (4) Interagency center.--The Interagency Working Group--
       (A) shall establish an Interagency Center on the Export of 
     Clean and Efficient Energy Technologies (in this section 
     referred to as the ``Interagency Center'') to assist the 
     Interagency Working Group in carrying out its duties required 
     under paragraph (3); and
       (B) shall locate the Interagency Center at a site agreed 
     upon by the Co-Chairpersons of the Interagency Working Group, 
     with the approval of Chairperson or Co-Chairpersons of the 
     Task Force.
       (c) Strategy.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Task Force shall develop and 
     submit to the President and the appropriate congressional 
     committees a strategy to--
       (A) support the development and implementation of programs, 
     policies, and initiatives in developing countries to promote 
     the adoption and deployment of clean and efficient energy 
     technologies, with an emphasis on those developing countries 
     that are expected to experience the most significant growth 
     in energy production and use over the next 20 years;
       (B) open and expand clean and efficient energy technology 
     markets and facilitate the export of clean and efficient 
     energy technologies to developing countries, in a manner 
     consistent with United States obligations as member of the 
     World Trade Organization;
       (C) integrate into the foreign policy objectives of the 
     United States the promotion of--
       (i) the deployment of clean and efficient energy 
     technologies and the reduction of greenhouse gas emissions in 
     developing countries; and
       (ii) the export of clean and efficient energy technologies; 
     and
       (D) develop financial mechanisms and instruments, including 
     securities that mitigate the political and foreign exchange 
     risks of uses that are consistent with the foreign policy 
     objectives of the United States by combining the private 
     sector market and government enhancements, that--
       (i) are cost-effective; and
       (ii) facilitate private capital investment in clean and 
     efficient energy technology projects in developing countries.
       (2) Updates.--Not later than 3 years after the date of 
     submission of the strategy under paragraph (1), and every 3 
     years thereafter, the Task Force shall update the strategy in 
     accordance with the requirements of paragraph (1).
       (d) Report.--
       (1) In general.--Not later than 3 years after the date of 
     submission of the strategy under subsection (c)(1), and every 
     3 years thereafter, the President shall transmit to the 
     appropriate congressional committees a report on the 
     implementation of this section for the prior 3-year period.
       (2) Matters to be included.--The report required under 
     paragraph (1) shall include the following:
       (A) The update of the strategy required under subsection 
     (c)(2) and a description of the actions taken by the Task 
     Force to assist in the implementation of the strategy.
       (B) A description of actions taken by the Task Force to 
     carry out the duties required under subsection (a)(4)(B).
       (C) A description of assistance provided under this 
     section.
       (D) The results of programs, projects, and activities 
     carried out under this section.
       (E) A description of priorities for promoting the diffusion 
     and adoption of clean and efficient energy technologies and 
     strategies in developing countries, taking into account 
     economic and security interests of the United States and 
     opportunities for the export of technology of the United 
     States.
       (F) Recommendations to the heads of appropriate Federal 
     departments and agencies on methods to streamline Federal 
     programs and policies to improve the role of such Federal 
     departments and agencies in the development, demonstration, 
     and deployment of clean and efficient energy technologies on 
     an international basis.
       (G) Strategies to integrate representatives of the private 
     sector and other interested groups on the export and 
     deployment of clean and efficient energy technologies.
       (H) A description of programs to disseminate information to 
     the private sector and the public on clean and efficient 
     energy technologies and opportunities to transfer such clean 
     and efficient energy technologies.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2008 through 2020.

     SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION.

       (a) Findings.--Congress finds that--

[[Page 33940]]

       (1) it is in the highest national security interests of the 
     United States to develop renewable energy sources;
       (2) the State of Israel is a steadfast ally of the United 
     States;
       (3) the special relationship between the United States and 
     Israel is manifested in a variety of cooperative scientific 
     research and development programs, such as--
       (A) the United States-Israel Binational Science Foundation; 
     and
       (B) the United States-Israel Binational Industrial Research 
     and Development Foundation;
       (4) those programs have made possible many scientific, 
     technological, and commercial breakthroughs in the fields of 
     life sciences, medicine, bioengineering, agriculture, 
     biotechnology, communications, and others;
       (5) on February 1, 1996, the Secretary of Energy (referred 
     to in this section as the ``Secretary'') and the Israeli 
     Minister of Energy and Infrastructure signed an agreement to 
     establish a framework for collaboration between the United 
     States and Israel in energy research and development 
     activities;
       (6) Israeli scientists and engineers are at the forefront 
     of research and development in the field of renewable energy 
     sources; and
       (7) enhanced cooperation between the United States and 
     Israel for the purpose of research and development of 
     renewable energy sources would be in the national interests 
     of both countries.
       (b) Grant Program.--
       (1) Establishment.--In implementing the agreement entitled 
     the ``Agreement between the Department of Energy of the 
     United States of America and the Ministry of Energy and 
     Infrastructure of Israel Concerning Energy Cooperation'', 
     dated February 1, 1996, the Secretary shall establish a grant 
     program in accordance with the requirements of sections 988 
     and 989 of the Energy Policy Act of 2005 (42 U.S.C. 16352, 
     16353) to support research, development, and 
     commercialization of renewable energy or energy efficiency.
       (2) Types of energy.--In carrying out paragraph (1), the 
     Secretary may make grants to promote--
       (A) solar energy;
       (B) biomass energy;
       (C) energy efficiency;
       (D) wind energy;
       (E) geothermal energy;
       (F) wave and tidal energy; and
       (G) advanced battery technology.
       (3) Eligible applicants.--An applicant shall be eligible to 
     receive a grant under this subsection if the project of the 
     applicant--
       (A) addresses a requirement in the area of improved energy 
     efficiency or renewable energy sources, as determined by the 
     Secretary; and
       (B) is a joint venture between--
       (i)(I) a for-profit business entity, academic institution, 
     National Laboratory (as defined in section 2 of the Energy 
     Policy Act of 2005 (42 U.S.C. 15801)), or nonprofit entity in 
     the United States; and
       (II) a for-profit business entity, academic institution, or 
     nonprofit entity in Israel; or
       (ii)(I) the Federal Government; and
       (II) the Government of Israel.
       (4) Applications.--To be eligible to receive a grant under 
     this subsection, an applicant shall submit to the Secretary 
     an application for the grant in accordance with procedures 
     established by the Secretary, in consultation with the 
     advisory board established under paragraph (5).
       (5) Advisory board.--
       (A) Establishment.--The Secretary shall establish an 
     advisory board--
       (i) to monitor the method by which grants are awarded under 
     this subsection; and
       (ii) to provide to the Secretary periodic performance 
     reviews of actions taken to carry out this subsection.
       (B) Composition.--The advisory board established under 
     subparagraph (A) shall be composed of 3 members, to be 
     appointed by the Secretary, of whom--
       (i) 1 shall be a representative of the Federal Government;
       (ii) 1 shall be selected from a list of nominees provided 
     by the United States-Israel Binational Science Foundation; 
     and
       (iii) 1 shall be selected from a list of nominees provided 
     by the United States-Israel Binational Industrial Research 
     and Development Foundation.
       (6) Contributed funds.--Notwithstanding section 3302 of 
     title 31, United States Code, the Secretary may accept, 
     retain, and use funds contributed by any person, government 
     entity, or organization for purposes of carrying out this 
     subsection--
       (A) without further appropriation; and
       (B) without fiscal year limitation.
       (7) Report.--Not later than 180 days after the date of 
     completion of a project for which a grant is provided under 
     this subsection, the grant recipient shall submit to the 
     Secretary a report that contains--
       (A) a description of the method by which the recipient used 
     the grant funds; and
       (B) an evaluation of the level of success of each project 
     funded by the grant.
       (8) Classification.--Grants shall be awarded under this 
     subsection only for projects that are considered to be 
     unclassified by both the United States and Israel.
       (c) Termination.--The grant program and the advisory 
     committee established under this section terminate on the 
     date that is 7 years after the date of enactment of this Act.
       (d) Authorization of Appropriations.--The Secretary shall 
     use amounts authorized to be appropriated under section 931 
     of the Energy Policy Act of 2005 (42 U.S.C. 16231) to carry 
     out this section.

           Subtitle B--International Clean Energy Foundation

     SEC. 921. DEFINITIONS.

       In this subtitle:
       (1) Board.--The term ``Board'' means the Board of Directors 
     of the Foundation established pursuant to section 922(c).
       (2) Chief executive officer.--The term ``Chief Executive 
     Officer'' means the chief executive officer of the Foundation 
     appointed pursuant to section 922(b).
       (3) Foundation.--The term ``Foundation'' means the 
     International Clean Energy Foundation established by section 
     922(a).

     SEC. 922. ESTABLISHMENT AND MANAGEMENT OF FOUNDATION.

       (a) Establishment.--
       (1) In general.--There is established in the executive 
     branch a foundation to be known as the ``International Clean 
     Energy Foundation'' that shall be responsible for carrying 
     out the provisions of this subtitle. The Foundation shall be 
     a government corporation, as defined in section 103 of title 
     5, United States Code.
       (2) Board of directors.--The Foundation shall be governed 
     by a Board of Directors in accordance with subsection (c).
       (3) Intent of congress.--It is the intent of Congress, in 
     establishing the structure of the Foundation set forth in 
     this subsection, to create an entity that serves the long-
     term foreign policy and energy security goals of reducing 
     global greenhouse gas emissions.
       (b) Chief Executive Officer.--
       (1) In general.--There shall be in the Foundation a Chief 
     Executive Officer who shall be responsible for the management 
     of the Foundation.
       (2) Appointment.--The Chief Executive Officer shall be 
     appointed by the Board, with the advice and consent of the 
     Senate, and shall be a recognized leader in clean and 
     efficient energy technologies and climate change and shall 
     have experience in energy security, business, or foreign 
     policy, chosen on the basis of a rigorous search.
       (3) Relationship to board.--The Chief Executive Officer 
     shall report to, and be under the direct authority of, the 
     Board.
       (4) Compensation and rank.--
       (A) In general.--The Chief Executive Officer shall be 
     compensated at the rate provided for level III of the 
     Executive Schedule under section 5314 of title 5, United 
     States Code.
       (B) Amendment.--Section 5314 of title 5, United States 
     Code, is amended by adding at the end the following:
     ``Chief Executive Officer, International Clean Energy 
     Foundation.''.
       (C) Authorities and duties.--The Chief Executive Officer 
     shall be responsible for the management of the Foundation and 
     shall exercise the powers and discharge the duties of the 
     Foundation.
       (D) Authority to appoint officers.--In consultation and 
     with approval of the Board, the Chief Executive Officer shall 
     appoint all officers of the Foundation.
       (c) Board of Directors.--
       (1) Establishment.--There shall be in the Foundation a 
     Board of Directors.
       (2) Duties.--The Board shall perform the functions 
     specified to be carried out by the Board in this subtitle and 
     may prescribe, amend, and repeal bylaws, rules, regulations, 
     and procedures governing the manner in which the business of 
     the Foundation may be conducted and in which the powers 
     granted to it by law may be exercised.
       (3) Membership.--The Board shall consist of--
       (A) the Secretary of State (or the Secretary's designee), 
     the Secretary of Energy (or the Secretary's designee), and 
     the Administrator of the United States Agency for 
     International Development (or the Administrator's designee); 
     and
       (B) four other individuals with relevant experience in 
     matters relating to energy security (such as individuals who 
     represent institutions of energy policy, business 
     organizations, foreign policy organizations, or other 
     relevant organizations) who shall be appointed by the 
     President, by and with the advice and consent of the Senate, 
     of whom--
       (i) one individual shall be appointed from among a list of 
     individuals submitted by the majority leader of the House of 
     Representatives;
       (ii) one individual shall be appointed from among a list of 
     individuals submitted by the minority leader of the House of 
     Representatives;
       (iii) one individual shall be appointed from among a list 
     of individuals submitted by the majority leader of the 
     Senate; and
       (iv) one individual shall be appointed from among a list of 
     individuals submitted by the minority leader of the Senate.
       (4) Chief executive officer.--The Chief Executive Officer 
     of the Foundation shall serve as a nonvoting, ex officio 
     member of the Board.
       (5) Terms.--
       (A) Officers of the federal government.--Each member of the 
     Board described in paragraph (3)(A) shall serve for a term

[[Page 33941]]

     that is concurrent with the term of service of the 
     individual's position as an officer within the other Federal 
     department or agency.
       (B) Other members.--Each member of the Board described in 
     paragraph (3)(B) shall be appointed for a term of 3 years and 
     may be reappointed for a term of an additional 3 years.
       (C) Vacancies.--A vacancy in the Board shall be filled in 
     the manner in which the original appointment was made.
       (D) Acting members.--A vacancy in the Board may be filled 
     with an appointment of an acting member by the Chairperson of 
     the Board for up to 1 year while a nominee is named and 
     awaits confirmation in accordance with paragraph (3)(B).
       (6) Chairperson.--There shall be a Chairperson of the 
     Board. The Secretary of State (or the Secretary's designee) 
     shall serve as the Chairperson.
       (7) Quorum.--A majority of the members of the Board 
     described in paragraph (3) shall constitute a quorum, which, 
     except with respect to a meeting of the Board during the 135-
     day period beginning on the date of the enactment of this 
     Act, shall include at least 1 member of the Board described 
     in paragraph (3)(B).
       (8) Meetings.--The Board shall meet at the call of the 
     Chairperson, who shall call a meeting no less than once a 
     year.
       (9) Compensation.--
       (A) Officers of the federal government.--
       (i) In general.--A member of the Board described in 
     paragraph (3)(A) may not receive additional pay, allowances, 
     or benefits by reason of the member's service on the Board.
       (ii) Travel expenses.--Each such member of the Board shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with applicable provisions under 
     subchapter I of chapter 57 of title 5, United States Code.
       (B) Other members.--
       (i) In general.--Except as provided in clause (ii), a 
     member of the Board described in paragraph (3)(B)--

       (I) shall be paid compensation out of funds made available 
     for the purposes of this subtitle at the daily equivalent of 
     the highest rate payable under section 5332 of title 5, 
     United States Code, for each day (including travel time) 
     during which the member is engaged in the actual performance 
     of duties as a member of the Board; and

       (II) while away from the member's home or regular place of 
     business on necessary travel in the actual performance of 
     duties as a member of the Board, shall be paid per diem, 
     travel, and transportation expenses in the same manner as is 
     provided under subchapter I of chapter 57 of title 5, United 
     States Code.

       (ii) Limitation.--A member of the Board may not be paid 
     compensation under clause (i)(II) for more than 90 days in 
     any calendar year.

     SEC. 923. DUTIES OF FOUNDATION.

       The Foundation shall--
       (1) use the funds authorized by this subtitle to make 
     grants to promote projects outside of the United States that 
     serve as models of how to significantly reduce the emissions 
     of global greenhouse gases through clean and efficient energy 
     technologies, processes, and services;
       (2) seek contributions from foreign governments, especially 
     those rich in energy resources such as member countries of 
     the Organization of the Petroleum Exporting Countries, and 
     private organizations to supplement funds made available 
     under this subtitle;
       (3) harness global expertise through collaborative 
     partnerships with foreign governments and domestic and 
     foreign private actors, including nongovernmental 
     organizations and private sector companies, by leveraging 
     public and private capital, technology, expertise, and 
     services towards innovative models that can be instituted to 
     reduce global greenhouse gas emissions;
       (4) create a repository of information on best practices 
     and lessons learned on the utilization and implementation of 
     clean and efficient energy technologies and processes to be 
     used for future initiatives to tackle the climate change 
     crisis;
       (5) be committed to minimizing administrative costs and to 
     maximizing the availability of funds for grants under this 
     subtitle; and
       (6) promote the use of American-made clean and efficient 
     energy technologies, processes, and services by giving 
     preference to entities incorporated in the United States and 
     whose technology will be substantially manufactured in the 
     United States.

     SEC. 924. ANNUAL REPORT.

       (a) Report Required.--Not later than March 31, 2008, and 
     each March 31 thereafter, the Foundation shall submit to the 
     appropriate congressional committees a report on the 
     implementation of this subtitle during the prior fiscal year.
       (b) Contents.--The report required by subsection (a) shall 
     include--
       (1) the total financial resources available to the 
     Foundation during the year, including appropriated funds, the 
     value and source of any gifts or donations accepted pursuant 
     to section 925(a)(6), and any other resources;
       (2) a description of the Board's policy priorities for the 
     year and the basis upon which competitive grant proposals 
     were solicited and awarded to nongovernmental institutions 
     and other organizations;
       (3) a list of grants made to nongovernmental institutions 
     and other organizations that includes the identity of the 
     institutional recipient, the dollar amount, and the results 
     of the program; and
       (4) the total administrative and operating expenses of the 
     Foundation for the year, as well as specific information on--
       (A) the number of Foundation employees and the cost of 
     compensation for Board members, Foundation employees, and 
     personal service contractors;
       (B) costs associated with securing the use of real property 
     for carrying out the functions of the Foundation;
       (C) total travel expenses incurred by Board members and 
     Foundation employees in connection with Foundation 
     activities; and
       (D) total representational expenses.

     SEC. 925. POWERS OF THE FOUNDATION; RELATED PROVISIONS.

       (a) Powers.--The Foundation--
       (1) shall have perpetual succession unless dissolved by a 
     law enacted after the date of the enactment of this Act;
       (2) may adopt, alter, and use a seal, which shall be 
     judicially noticed;
       (3) may make and perform such contracts, grants, and other 
     agreements with any person or government however designated 
     and wherever situated, as may be necessary for carrying out 
     the functions of the Foundation;
       (4) may determine and prescribe the manner in which its 
     obligations shall be incurred and its expenses allowed and 
     paid, including expenses for representation;
       (5) may lease, purchase, or otherwise acquire, improve, and 
     use such real property wherever situated, as may be necessary 
     for carrying out the functions of the Foundation;
       (6) may accept money, funds, services, or property (real, 
     personal, or mixed), tangible or intangible, made available 
     by gift, bequest grant, or otherwise for the purpose of 
     carrying out the provisions of this title from domestic or 
     foreign private individuals, charities, nongovernmental 
     organizations, corporations, or governments;
       (7) may use the United States mails in the same manner and 
     on the same conditions as the executive departments;
       (8) may contract with individuals for personal services, 
     who shall not be considered Federal employees for any 
     provision of law administered by the Office of Personnel 
     Management;
       (9) may hire or obtain passenger motor vehicles; and
       (10) shall have such other powers as may be necessary and 
     incident to carrying out this subtitle.
       (b) Principal Office.--The Foundation shall maintain its 
     principal office in the metropolitan area of Washington, 
     District of Columbia.
       (c) Applicability of Government Corporation Control Act.--
       (1) In general.--The Foundation shall be subject to chapter 
     91 of subtitle VI of title 31, United States Code, except 
     that the Foundation shall not be authorized to issue 
     obligations or offer obligations to the public.
       (2) Conforming amendment.--Section 9101(3) of title 31, 
     United States Code, is amended by adding at the end the 
     following:
       ``(R) the International Clean Energy Foundation.''.
       (d) Inspector General.--
       (1) In general.--The Inspector General of the Department of 
     State shall serve as Inspector General of the Foundation, 
     and, in acting in such capacity, may conduct reviews, 
     investigations, and inspections of all aspects of the 
     operations and activities of the Foundation.
       (2) Authority of the board.--In carrying out the 
     responsibilities under this subsection, the Inspector General 
     shall report to and be under the general supervision of the 
     Board.
       (3) Reimbursement and authorization of services.--
       (A) Reimbursement.--The Foundation shall reimburse the 
     Department of State for all expenses incurred by the 
     Inspector General in connection with the Inspector General's 
     responsibilities under this subsection.
       (B) Authorization for services.--Of the amount authorized 
     to be appropriated under section 927(a) for a fiscal year, up 
     to $500,000 is authorized to be made available to the 
     Inspector General of the Department of State to conduct 
     reviews, investigations, and inspections of operations and 
     activities of the Foundation.

     SEC. 926. GENERAL PERSONNEL AUTHORITIES.

       (a) Detail of Personnel.--Upon request of the Chief 
     Executive Officer, the head of an agency may detail any 
     employee of such agency to the Foundation on a reimbursable 
     basis. Any employee so detailed remains, for the purpose of 
     preserving such employee's allowances, privileges, rights, 
     seniority, and other benefits, an employee of the agency from 
     which detailed.
       (b) Reemployment Rights.--
       (1) In general.--An employee of an agency who is serving 
     under a career or career conditional appointment (or the 
     equivalent), and who, with the consent of the head of such 
     agency, transfers to the Foundation, is

[[Page 33942]]

     entitled to be reemployed in such employee's former position 
     or a position of like seniority, status, and pay in such 
     agency, if such employee--
       (A) is separated from the Foundation for any reason, other 
     than misconduct, neglect of duty, or malfeasance; and
       (B) applies for reemployment not later than 90 days after 
     the date of separation from the Foundation.
       (2) Specific rights.--An employee who satisfies paragraph 
     (1) is entitled to be reemployed (in accordance with such 
     paragraph) within 30 days after applying for reemployment 
     and, on reemployment, is entitled to at least the rate of 
     basic pay to which such employee would have been entitled had 
     such employee never transferred.
       (c) Hiring Authority.--Of persons employed by the 
     Foundation, no more than 30 persons may be appointed, 
     compensated, or removed without regard to the civil service 
     laws and regulations.
       (d) Basic Pay.--The Chief Executive Officer may fix the 
     rate of basic pay of employees of the Foundation without 
     regard to the provisions of chapter 51 of title 5, United 
     States Code (relating to the classification of positions), 
     subchapter III of chapter 53 of such title (relating to 
     General Schedule pay rates), except that no employee of the 
     Foundation may receive a rate of basic pay that exceeds the 
     rate for level IV of the Executive Schedule under section 
     5315 of such title.
       (e) Definitions.--In this section--
       (1) the term ``agency'' means an executive agency, as 
     defined by section 105 of title 5, United States Code; and
       (2) the term ``detail'' means the assignment or loan of an 
     employee, without a change of position, from the agency by 
     which such employee is employed to the Foundation.

     SEC. 927. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Appropriations.--To carry out this 
     subtitle, there are authorized to be appropriated $20,000,000 
     for each of the fiscal years 2009 through 2013.
       (b) Allocation of Funds.--
       (1) In general.--The Foundation may allocate or transfer to 
     any agency of the United States Government any of the funds 
     available for carrying out this subtitle. Such funds shall be 
     available for obligation and expenditure for the purposes for 
     which the funds were authorized, in accordance with authority 
     granted in this subtitle or under authority governing the 
     activities of the United States Government agency to which 
     such funds are allocated or transferred.
       (2) Notification.--The Foundation shall notify the 
     appropriate congressional committees not less than 15 days 
     prior to an allocation or transfer of funds pursuant to 
     paragraph (1).

                  Subtitle C--Miscellaneous Provisions

     SEC. 931. ENERGY DIPLOMACY AND SECURITY WITHIN THE DEPARTMENT 
                   OF STATE.

       (a) State Department Coordinator for International Energy 
     Affairs.--
       (1) In general.--The Secretary of State should ensure that 
     energy security is integrated into the core mission of the 
     Department of State.
       (2) Coordinator for international energy affairs.--There is 
     established within the Office of the Secretary of State a 
     Coordinator for International Energy Affairs, who shall be 
     responsible for--
       (A) representing the Secretary of State in interagency 
     efforts to develop the international energy policy of the 
     United States;
       (B) ensuring that analyses of the national security 
     implications of global energy and environmental developments 
     are reflected in the decision making process within the 
     Department of State;
       (C) incorporating energy security priorities into the 
     activities of the Department of State;
       (D) coordinating energy activities of the Department of 
     State with relevant Federal agencies; and
       (E) coordinating energy security and other relevant 
     functions within the Department of State currently undertaken 
     by offices within--
       (i) the Bureau of Economic, Energy and Business Affairs;
       (ii) the Bureau of Oceans and International Environmental 
     and Scientific Affairs; and
       (iii) other offices within the Department of State.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this subsection.
       (b) Energy Experts in Key Embassies.--Not later than 180 
     days after the date of the enactment of this Act, the 
     Secretary of State shall submit a report to the Committee on 
     Foreign Relations of the Senate and the Committee on Foreign 
     Affairs of the House of Representatives that includes--
       (1) a description of the Department of State personnel who 
     are dedicated to energy matters and are stationed at 
     embassies and consulates in countries that are major energy 
     producers or consumers;
       (2) an analysis of the need for Federal energy specialist 
     personnel in United States embassies and other United States 
     diplomatic missions; and
       (3) recommendations for increasing energy expertise within 
     United States embassies among foreign service officers and 
     options for assigning to such embassies energy attaches from 
     the National Laboratories or other agencies within the 
     Department of Energy.
       (c) Energy Advisors.--The Secretary of Energy may make 
     appropriate arrangements with the Secretary of State to 
     assign personnel from the Department of Energy or the 
     National Laboratories of the Department of Energy to serve as 
     dedicated advisors on energy matters in embassies of the 
     United States or other United States diplomatic missions.
       (d) Report.--Not later than 180 days after the date of the 
     enactment of this Act, and every 2 years thereafter for the 
     following 20 years, the Secretary of State shall submit a 
     report to the Committee on Foreign Relations of the Senate 
     and the Committee on Foreign Affairs of the House of 
     Representatives that describes--
       (1) the energy-related activities being conducted by the 
     Department of State, including activities within--
       (A) the Bureau of Economic, Energy and Business Affairs;
       (B) the Bureau of Oceans and Environmental and Scientific 
     Affairs; and
       (C) other offices within the Department of State;
       (2) the amount of funds spent on each activity within each 
     office described in paragraph (1); and
       (3) the number and qualification of personnel in each 
     embassy (or relevant foreign posting) of the United States 
     whose work is dedicated exclusively to energy matters.

     SEC. 932. NATIONAL SECURITY COUNCIL REORGANIZATION.

       Section 101(a) of the National Security Act of 1947 (50 
     U.S.C. 402(a)) is amended--
       (1) by redesignating paragraphs (5), (6), and (7) as 
     paragraphs (6), (7), and (8), respectively; and
       (2) by inserting after paragraph (4) the following:
       ``(5) the Secretary of Energy;''.

     SEC. 933. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT.

       (a) Reports.--
       (1) In general.--Subject to paragraph (2), on the date on 
     which the President submits to Congress the budget for the 
     following fiscal year under section 1105 of title 31, United 
     States Code, the President shall submit to Congress a 
     comprehensive report on the national energy security of the 
     United States.
       (2) New presidents.--In addition to the reports required 
     under paragraph (1), the President shall submit a 
     comprehensive report on the national energy security of the 
     United States by not later than 150 days after the date on 
     which the President assumes the office of President after a 
     presidential election.
       (b) Contents.--Each report under this section shall 
     describe the national energy security strategy of the United 
     States, including a comprehensive description of--
       (1) the worldwide interests, goals, and objectives of the 
     United States that are vital to the national energy security 
     of the United States;
       (2) the foreign policy, worldwide commitments, and national 
     defense capabilities of the United States necessary--
       (A) to deter political manipulation of world energy 
     resources; and
       (B) to implement the national energy security strategy of 
     the United States;
       (3) the proposed short-term and long-term uses of the 
     political, economic, military, and other authorities of the 
     United States--
       (A) to protect or promote energy security; and
       (B) to achieve the goals and objectives described in 
     paragraph (1);
       (4) the adequacy of the capabilities of the United States 
     to protect the national energy security of the United States, 
     including an evaluation of the balance among the capabilities 
     of all elements of the national authority of the United 
     States to support the implementation of the national energy 
     security strategy; and
       (5) such other information as the President determines to 
     be necessary to inform Congress on matters relating to the 
     national energy security of the United States.
       (c) Classified and Unclassified Form.--Each national energy 
     security strategy report shall be submitted to Congress in--
       (1) a classified form; and
       (2) an unclassified form.

     SEC. 934. CONVENTION ON SUPPLEMENTARY COMPENSATION FOR 
                   NUCLEAR DAMAGE CONTINGENT COST ALLOCATION.

       (a) Findings and Purpose.--
       (1) Findings.--Congress finds that--
       (A) section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210) (commonly known as the ``Price-Anderson Act'')--
       (i) provides a predictable legal framework necessary for 
     nuclear projects; and
       (ii) ensures prompt and equitable compensation in the event 
     of a nuclear incident in the United States;
       (B) the Price-Anderson Act, in effect, provides operators 
     of nuclear powerplants with insurance for damage arising out 
     of a nuclear incident and funds the insurance primarily 
     through the assessment of a retrospective premium from each 
     operator after the occurrence of a nuclear incident;

[[Page 33943]]

       (C) the Convention on Supplementary Compensation for 
     Nuclear Damage, done at Vienna on September 12, 1997, will 
     establish a global system--
       (i) to provide a predictable legal framework necessary for 
     nuclear energy projects; and
       (ii) to ensure prompt and equitable compensation in the 
     event of a nuclear incident;
       (D) the Convention benefits United States nuclear suppliers 
     that face potentially unlimited liability for nuclear 
     incidents that are not covered by the Price-Anderson Act by 
     replacing a potentially open-ended liability with a 
     predictable liability regime that, in effect, provides 
     nuclear suppliers with insurance for damage arising out of 
     such an incident;
       (E) the Convention also benefits United States nuclear 
     facility operators that may be publicly liable for a Price-
     Anderson incident by providing an additional early source of 
     funds to compensate damage arising out of the Price-Anderson 
     incident;
       (F) the combined operation of the Convention, the Price-
     Anderson Act, and this section will augment the quantity of 
     assured funds available for victims in a wider variety of 
     nuclear incidents while reducing the potential liability of 
     United States suppliers without increasing potential costs to 
     United States operators;
       (G) the cost of those benefits is the obligation of the 
     United States to contribute to the supplementary compensation 
     fund established by the Convention;
       (H) any such contribution should be funded in a manner that 
     does not--
       (i) upset settled expectations based on the liability 
     regime established under the Price-Anderson Act; or
       (ii) shift to Federal taxpayers liability risks for nuclear 
     incidents at foreign installations;
       (I) with respect to a Price-Anderson incident, funds 
     already available under the Price-Anderson Act should be 
     used; and
       (J) with respect to a nuclear incident outside the United 
     States not covered by the Price-Anderson Act, a retrospective 
     premium should be prorated among nuclear suppliers relieved 
     from potential liability for which insurance is not 
     available.
       (2) Purpose.--The purpose of this section is to allocate 
     the contingent costs associated with participation by the 
     United States in the international nuclear liability 
     compensation system established by the Convention on 
     Supplementary Compensation for Nuclear Damage, done at Vienna 
     on September 12, 1997--
       (A) with respect to a Price-Anderson incident, by using 
     funds made available under section 170 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2210) to cover the contingent costs in 
     a manner that neither increases the burdens nor decreases the 
     benefits under section 170 of that Act; and
       (B) with respect to a covered incident outside the United 
     States that is not a Price-Anderson incident, by allocating 
     the contingent costs equitably, on the basis of risk, among 
     the class of nuclear suppliers relieved by the Convention 
     from the risk of potential liability resulting from any 
     covered incident outside the United States.
       (b) Definitions.--In this section:
       (1) Commission.--The term ``Commission'' means the Nuclear 
     Regulatory Commission.
       (2) Contingent cost.--The term ``contingent cost'' means 
     the cost to the United States in the event of a covered 
     incident the amount of which is equal to the amount of funds 
     the United States is obligated to make available under 
     paragraph 1(b) of Article III of the Convention.
       (3) Convention.--The term ``Convention'' means the 
     Convention on Supplementary Compensation for Nuclear Damage, 
     done at Vienna on September 12, 1997.
       (4) Covered incident.--The term ``covered incident'' means 
     a nuclear incident the occurrence of which results in a 
     request for funds pursuant to Article VII of the Convention.
       (5) Covered installation.--The term ``covered 
     installation'' means a nuclear installation at which the 
     occurrence of a nuclear incident could result in a request 
     for funds under Article VII of the Convention.
       (6) Covered person.--
       (A) In general.--The term ``covered person'' means--
       (i) a United States person; and
       (ii) an individual or entity (including an agency or 
     instrumentality of a foreign country) that--

       (I) is located in the United States; or
       (II) carries out an activity in the United States.

       (B) Exclusions.--The term ``covered person'' does not 
     include--
       (i) the United States; or
       (ii) any agency or instrumentality of the United States.
       (7) Nuclear supplier.--The term ``nuclear supplier'' means 
     a covered person (or a successor in interest of a covered 
     person) that--
       (A) supplies facilities, equipment, fuel, services, or 
     technology pertaining to the design, construction, operation, 
     or decommissioning of a covered installation; or
       (B) transports nuclear materials that could result in a 
     covered incident.
       (8) Price-anderson incident.--The term ``Price-Anderson 
     incident'' means a covered incident for which section 170 of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2210) would make 
     funds available to compensate for public liability (as 
     defined in section 11 of that Act (42 U.S.C. 2014)).
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (10) United states.--
       (A) In general.--The term ``United States'' has the meaning 
     given the term in section 11 of the Atomic Energy Act of 1954 
     (42 U.S.C. 2014).
       (B) Inclusions.--The term ``United States'' includes--
       (i) the Commonwealth of Puerto Rico;
       (ii) any other territory or possession of the United 
     States;
       (iii) the Canal Zone; and
       (iv) the waters of the United States territorial sea under 
     Presidential Proclamation Number 5928, dated December 27, 
     1988 (43 U.S.C. 1331 note).
       (11) United states person.--The term ``United States 
     person'' means--
       (A) any individual who is a resident, national, or citizen 
     of the United States (other than an individual residing 
     outside of the United States and employed by a person who is 
     not a United States person); and
       (B) any corporation, partnership, association, joint stock 
     company, business trust, unincorporated organization, or sole 
     proprietorship that is organized under the laws of the United 
     States.
       (c) Use of Price-Anderson Funds.--
       (1) In general.--Funds made available under section 170 of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used 
     to cover the contingent cost resulting from any Price-
     Anderson incident.
       (2) Effect.--The use of funds pursuant to paragraph (1) 
     shall not reduce the limitation on public liability 
     established under section 170 e. of the Atomic Energy Act of 
     1954 (42 U.S.C. 2210(e)).
       (d) Effect on Amount of Public Liability.--
       (1) In general.--Funds made available to the United States 
     under Article VII of the Convention with respect to a Price-
     Anderson incident shall be used to satisfy public liability 
     resulting from the Price-Anderson incident.
       (2) Amount.--The amount of public liability allowable under 
     section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) 
     relating to a Price-Anderson incident under paragraph (1) 
     shall be increased by an amount equal to the difference 
     between--
       (A) the amount of funds made available for the Price-
     Anderson incident under Article VII of the Convention; and
       (B) the amount of funds used under subsection (c) to cover 
     the contingent cost resulting from the Price-Anderson 
     incident.
       (e) Retrospective Risk Pooling Program.--
       (1) In general.--Except as provided under paragraph (2), 
     each nuclear supplier shall participate in a retrospective 
     risk pooling program in accordance with this section to cover 
     the contingent cost resulting from a covered incident outside 
     the United States that is not a Price-Anderson incident.
       (2) Deferred payment.--
       (A) In general.--The obligation of a nuclear supplier to 
     participate in the retrospective risk pooling program shall 
     be deferred until the United States is called on to provide 
     funds pursuant to Article VII of the Convention with respect 
     to a covered incident that is not a Price-Anderson incident.
       (B) Amount of deferred payment.--The amount of a deferred 
     payment of a nuclear supplier under subparagraph (A) shall be 
     based on the risk-informed assessment formula determined 
     under subparagraph (C).
       (C) Risk-informed assessment formula.--
       (i) In general.--Not later than 3 years after the date of 
     the enactment of this Act, and every 5 years thereafter, the 
     Secretary shall, by regulation, determine the risk-informed 
     assessment formula for the allocation among nuclear suppliers 
     of the contingent cost resulting from a covered incident that 
     is not a Price-Anderson incident, taking into account risk 
     factors such as--

       (I) the nature and intended purpose of the goods and 
     services supplied by each nuclear supplier to each covered 
     installation outside the United States;
       (II) the quantity of the goods and services supplied by 
     each nuclear supplier to each covered installation outside 
     the United States;
       (III) the hazards associated with the supplied goods and 
     services if the goods and services fail to achieve the 
     intended purposes;
       (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;

[[Page 33944]]

       (cc) a nuclear supplier with a de minimis share of the 
     contingent cost; and
       (dd) a nuclear supplier no longer in existence for which 
     there is no identifiable successor; and

       (II) establish the period on which the risk assessment is 
     based.

       (iii) Application.--In applying the formula, the Secretary 
     shall not consider any covered installation or transportation 
     for which funds would be available under section 170 of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2210).
       (iv) Report.--Not later than 5 years after the date of the 
     enactment of this Act, and every 5 years thereafter, the 
     Secretary shall submit to the Committee on Environment and 
     Public Works of the Senate and the Committee on Energy and 
     Commerce of the House of Representatives a report on whether 
     there is a need for continuation or amendment of this 
     section, taking into account the effects of the 
     implementation of the Convention on the United States nuclear 
     industry and suppliers.
       (f) Reporting.--
       (1) Collection of information.--
       (A) In general.--The Secretary may collect information 
     necessary for developing and implementing the formula for 
     calculating the deferred payment of a nuclear supplier under 
     subsection (e)(2).
       (B) Provision of information.--Each nuclear supplier and 
     other appropriate persons shall make available to the 
     Secretary such information, reports, records, documents, and 
     other data as the Secretary determines, by regulation, to be 
     necessary or appropriate to develop and implement the formula 
     under subsection (e)(2)(C).
       (2) Private insurance.--The Secretary shall make available 
     to nuclear suppliers, and insurers of nuclear suppliers, 
     information to support the voluntary establishment and 
     maintenance of private insurance against any risk for which 
     nuclear suppliers may be required to pay deferred payments 
     under this section.
       (g) Effect on Liability.--Nothing in any other law 
     (including regulations) limits liability for a covered 
     incident to an amount equal to less than the amount 
     prescribed in paragraph 1(a) of Article IV of the Convention, 
     unless the law--
       (1) specifically refers to this section; and
       (2) explicitly repeals, alters, amends, modifies, impairs, 
     displaces, or supersedes the effect of this subsection.
       (h) Payments to and by the United States.--
       (1) Action by nuclear suppliers.--
       (A) Notification.--In the case of a request for funds under 
     Article VII of the Convention resulting from a covered 
     incident that is not a Price-Anderson incident, the Secretary 
     shall notify each nuclear supplier of the amount of the 
     deferred payment required to be made by the nuclear supplier.
       (B) Payments.--
       (i) In general.--Except as provided under clause (ii), not 
     later than 60 days after receipt of a notification under 
     subparagraph (A), a nuclear supplier shall pay to the general 
     fund of the Treasury the deferred payment of the nuclear 
     supplier required under subparagraph (A).
       (ii) Annual payments.--A nuclear supplier may elect to 
     prorate payment of the deferred payment required under 
     subparagraph (A) in 5 equal annual payments (including 
     interest on the unpaid balance at the prime rate prevailing 
     at the time the first payment is due).
       (C) Vouchers.--A nuclear supplier shall submit payment 
     certification vouchers to the Secretary of the Treasury in 
     accordance with section 3325 of title 31, United States Code.
       (2) Use of funds.--
       (A) In general.--Amounts paid into the Treasury under 
     paragraph (1) shall be available to the Secretary of the 
     Treasury, without further appropriation and without fiscal 
     year limitation, for the purpose of making the contributions 
     of public funds required to be made by the United States 
     under the Convention.
       (B) Action by secretary of treasury.--The Secretary of the 
     Treasury shall pay the contribution required under the 
     Convention to the court of competent jurisdiction under 
     Article XIII of the Convention with respect to the applicable 
     covered incident.
       (3) Failure to pay.--If a nuclear supplier fails to make a 
     payment required under this subsection, the Secretary may 
     take appropriate action to recover from the nuclear 
     supplier--
       (A) the amount of the payment due from the nuclear 
     supplier;
       (B) any applicable interest on the payment; and
       (C) a penalty of not more than twice the amount of the 
     deferred payment due from the nuclear supplier.
       (i) Limitation on Judicial Review; Cause of Action.--
       (1) Limitation on judicial review.--
       (A) In general.--In any civil action arising under the 
     Convention over which Article XIII of the Convention grants 
     jurisdiction to the courts of the United States, any appeal 
     or review by writ of mandamus or otherwise with respect to a 
     nuclear incident that is not a Price-Anderson incident shall 
     be in accordance with chapter 83 of title 28, United States 
     Code, except that the appeal or review shall occur in the 
     United States Court of Appeals for the District of Columbia 
     Circuit.
       (B) Supreme court jurisdiction.--Nothing in this paragraph 
     affects the jurisdiction of the Supreme Court of the United 
     States under chapter 81 of title 28, United States Code.
       (2) Cause of action.--
       (A) In general.--Subject to subparagraph (B), in any civil 
     action arising under the Convention over which Article XIII 
     of the Convention grants jurisdiction to the courts of the 
     United States, in addition to any other cause of action that 
     may exist, an individual or entity shall have a cause of 
     action against the operator to recover for nuclear damage 
     suffered by the individual or entity.
       (B) Requirement.--Subparagraph (A) shall apply only if the 
     individual or entity seeks a remedy for nuclear damage (as 
     defined in Article I of the Convention) that was caused by a 
     nuclear incident (as defined in Article I of the Convention) 
     that is not a Price-Anderson incident.
       (C) Savings provision.--Nothing in this paragraph may be 
     construed to limit, modify, extinguish, or otherwise affect 
     any cause of action that would have existed in the absence of 
     enactment of this paragraph.
       (j) Right of Recourse.--This section does not provide to an 
     operator of a covered installation any right of recourse 
     under the Convention.
       (k) Protection of Sensitive United States Information.--
     Nothing in the Convention or this section requires the 
     disclosure of--
       (1) any data that, at any time, was Restricted Data (as 
     defined in section 11 of the Atomic Energy Act of 1954 (42 
     U.S.C. 2014));
       (2) information relating to intelligence sources or methods 
     protected by section 102A(i) of the National Security Act of 
     1947 (50 U.S.C. 403-1(i)); or
       (3) national security information classified under 
     Executive Order 12958 (50 U.S.C. 435 note; relating to 
     classified national security information) (or a successor 
     Executive Order or regulation).
       (l) Regulations.--
       (1) In general.--The Secretary or the Commission, as 
     appropriate, may prescribe regulations to carry out section 
     170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and 
     this section.
       (2) Requirement.--Rules prescribed under this subsection 
     shall ensure, to the maximum extent practicable, that--
       (A) the implementation of section 170 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2210) and this section is consistent 
     and equitable; and
       (B) the financial and operational burden on a Commission 
     licensee in complying with section 170 of that Act is not 
     greater as a result of the enactment of this section.
       (3) Applicability of provision.--Section 553 of title 5, 
     United States Code, shall apply with respect to the 
     promulgation of regulations under this subsection.
       (4) Effect of subsection.--The authority provided under 
     this subsection is in addition to, and does not impair or 
     otherwise affect, any other authority of the Secretary or the 
     Commission to prescribe regulations.
       (m) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 935. TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE 
                   PAYMENTS.

       (a) Purpose.--The purpose of this section is to--
       (1) ensure greater United States energy security by 
     combating corruption in the governments of foreign countries 
     that receive revenues from the sale of their natural 
     resources; and
       (2) enhance the development of democracy and increase 
     political and economic stability in such resource rich 
     foreign countries.
       (b) Statement of Policy.--It is the policy of the United 
     States--
       (1) to increase energy security by promoting anti-
     corruption initiatives in oil and natural gas rich countries; 
     and
       (2) to promote global energy security through promotion of 
     programs such as the Extractive Industries Transparency 
     Initiative (EITI) that seek to instill transparency and 
     accountability into extractive industries resource payments.
       (c) Sense of Congress.--It is the sense of Congress that 
     the United States should further global energy security and 
     promote democratic development in resource-rich foreign 
     countries by--
       (1) encouraging further participation in the EITI by 
     eligible countries and companies; and
       (2) promoting the efficacy of the EITI program by ensuring 
     a robust and candid review mechanism.
       (d) Report.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, and annually thereafter, 
     the Secretary of State, in consultation with the Secretary of 
     Energy, shall submit to the appropriate congressional 
     committees a report on progress made in promoting 
     transparency in extractive industries resource payments.
       (2) Matters to be included.--The report required by 
     paragraph (1) shall include a detailed description of United 
     States participation in the EITI, bilateral and multilateral 
     diplomatic efforts to further participation in

[[Page 33945]]

     the EITI, and other United States initiatives to strengthen 
     energy security, deter energy kleptocracy, and promote 
     transparency in the extractive industries.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated $3,000,000 for the purposes of United 
     States contributions to the Multi-Donor Trust Fund of the 
     EITI.

                          TITLE X--GREEN JOBS

     SEC. 1001. SHORT TITLE.

       This title may be cited as the ``Green Jobs Act of 2007''.

     SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER 
                   TRAINING PROGRAM.

       Section 171 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2916) is amended by adding at the end the following:
       ``(e) Energy Efficiency and Renewable Energy Worker 
     Training Program.--
       ``(1) Grant program.--
       ``(A) In general.--Not later than 6 months after the date 
     of enactment of the Green Jobs Act of 2007, the Secretary, in 
     consultation with the Secretary of Energy, shall establish an 
     energy efficiency and renewable energy worker training 
     program under which the Secretary shall carry out the 
     activities described in paragraph (2) to achieve the purposes 
     of this subsection.
       ``(B) Eligibility.--For purposes of providing assistance 
     and services under the program established under this 
     subsection--
       ``(i) target populations of eligible individuals to be 
     given priority for training and other services shall 
     include--

       ``(I) workers impacted by national energy and environmental 
     policy;
       ``(II) individuals in need of updated training related to 
     the energy efficiency and renewable energy industries;
       ``(III) veterans, or past and present members of reserve 
     components of the Armed Forces;
       ``(IV) unemployed individuals;
       ``(V) individuals, including at-risk youth, seeking 
     employment pathways out of poverty and into economic self-
     sufficiency; and
       ``(VI) formerly incarcerated, adjudicated, nonviolent 
     offenders; and

       ``(ii) energy efficiency and renewable energy industries 
     eligible to participate in a program under this subsection 
     include--

       ``(I) the energy-efficient building, construction, and 
     retrofits industries;
       ``(II) the renewable electric power industry;
       ``(III) the energy efficient and advanced drive train 
     vehicle industry;
       ``(IV) the biofuels industry;
       ``(V) the deconstruction and materials use industries;
       ``(VI) the energy efficiency assessment industry serving 
     the residential, commercial, or industrial sectors; and
       ``(VII) manufacturers that produce sustainable products 
     using environmentally sustainable processes and materials.

       ``(2) Activities.--
       ``(A) National research program.--Under the program 
     established under paragraph (1), the Secretary, acting 
     through the Bureau of Labor Statistics, where appropriate, 
     shall collect and analyze labor market data to track 
     workforce trends resulting from energy-related initiatives 
     carried out under this subsection. Activities carried out 
     under this paragraph shall include--
       ``(i) tracking and documentation of academic and 
     occupational competencies as well as future skill needs with 
     respect to renewable energy and energy efficiency technology;
       ``(ii) tracking and documentation of occupational 
     information and workforce training data with respect to 
     renewable energy and energy efficiency technology;
       ``(iii) collaborating with State agencies, workforce 
     investments boards, industry, organized labor, and community 
     and nonprofit organizations to disseminate information on 
     successful innovations for labor market services and worker 
     training with respect to renewable energy and energy 
     efficiency technology;
       ``(iv) serving as a clearinghouse for best practices in 
     workforce development, job placement, and collaborative 
     training partnerships;
       ``(v) encouraging the establishment of workforce training 
     initiatives with respect to renewable energy and energy 
     efficiency technologies;
       ``(vi) linking research and development in renewable energy 
     and energy efficiency technology with the development of 
     standards and curricula for current and future jobs;
       ``(vii) assessing new employment and work practices 
     including career ladder and upgrade training as well as high 
     performance work systems; and
       ``(viii) providing technical assistance and capacity 
     building to national and State energy partnerships, including 
     industry and labor representatives.
       ``(B) National energy training partnership grants.--
       ``(i) In general.--Under the program established under 
     paragraph (1), the Secretary shall award National Energy 
     Training Partnerships Grants on a competitive basis to 
     eligible entities to enable such entities to carry out 
     training that leads to economic self-sufficiency and to 
     develop an energy efficiency and renewable energy industries 
     workforce. Grants shall be awarded under this subparagraph so 
     as to ensure geographic diversity with at least 2 grants 
     awarded to entities located in each of the 4 Petroleum 
     Administration for Defense Districts with no subdistricts, 
     and at least 1 grant awarded to an entity located in each of 
     the subdistricts of the Petroleum Administration for Defense 
     District with subdistricts.
       ``(ii) Eligibility.--To be eligible to receive a grant 
     under clause (i), an entity shall be a nonprofit partnership 
     that--

       ``(I) includes the equal participation of industry, 
     including public or private employers, and labor 
     organizations, including joint labor-management training 
     programs, and may include workforce investment boards, 
     community-based organizations, qualified service and 
     conservation corps, educational institutions, small 
     businesses, cooperatives, State and local veterans agencies, 
     and veterans service organizations; and
       ``(II) demonstrates--

       ``(aa) experience in implementing and operating worker 
     skills training and education programs;
       ``(bb) the ability to identify and involve in training 
     programs carried out under this grant, target populations of 
     individuals who would benefit from training and be actively 
     involved in activities related to energy efficiency and 
     renewable energy industries; and
       ``(cc) the ability to help individuals achieve economic 
     self-sufficiency.
       ``(iii) Priority.--Priority shall be given to partnerships 
     which leverage additional public and private resources to 
     fund training programs, including cash or in-kind matches 
     from participating employers.
       ``(C) State labor market research, information, and labor 
     exchange research program.--
       ``(i) In general.--Under the program established under 
     paragraph (1), the Secretary shall award competitive grants 
     to States to enable such States to administer labor market 
     and labor exchange information programs that include the 
     implementation of the activities described in clause (ii), in 
     coordination with the one-stop delivery system.
       ``(ii) Activities.--A State shall use amounts awarded under 
     a grant under this subparagraph to provide funding to the 
     State agency that administers the Wagner-Peyser Act and State 
     unemployment compensation programs to carry out the following 
     activities using State agency merit staff:

       ``(I) The identification of job openings in the renewable 
     energy and energy efficiency sector.
       ``(II) The administration of skill and aptitude testing and 
     assessment for workers.
       ``(III) The counseling, case management, and referral of 
     qualified job seekers to openings and training programs, 
     including energy efficiency and renewable energy training 
     programs.

       ``(D) State energy training partnership program.--
       ``(i) In general.--Under the program established under 
     paragraph (1), the Secretary shall award competitive grants 
     to States to enable such States to administer renewable 
     energy and energy efficiency workforce development programs 
     that include the implementation of the activities described 
     in clause (ii).
       ``(ii) Partnerships.--A State shall use amounts awarded 
     under a grant under this subparagraph to award competitive 
     grants to eligible State Energy Sector Partnerships to enable 
     such Partnerships to coordinate with existing apprenticeship 
     and labor management training programs and implement training 
     programs that lead to the economic self-sufficiency of 
     trainees.
       ``(iii) Eligibility.--To be eligible to receive a grant 
     under this subparagraph, a State Energy Sector Partnership 
     shall--

       ``(I) consist of nonprofit organizations that include equal 
     participation from industry, including public or private 
     nonprofit employers, and labor organizations, including joint 
     labor-management training programs, and may include 
     representatives from local governments, the workforce 
     investment system, including one-stop career centers, 
     community based organizations, qualified service and 
     conservation corps, community colleges, and other post-
     secondary institutions, small businesses, cooperatives, State 
     and local veterans agencies, and veterans service 
     organizations;
       ``(II) demonstrate experience in implementing and operating 
     worker skills training and education programs; and
       ``(III) demonstrate the ability to identify and involve in 
     training programs, target populations of workers who would 
     benefit from training and be actively involved in activities 
     related to energy efficiency and renewable energy industries.

       ``(iv) Priority.--In awarding grants under this 
     subparagraph, the Secretary shall give priority to States 
     that demonstrate that activities under the grant--

       ``(I) meet national energy policies associated with energy 
     efficiency, renewable energy, and the reduction of emissions 
     of greenhouse gases;
       ``(II) meet State energy policies associated with energy 
     efficiency, renewable energy, and the reduction of emissions 
     of greenhouse gases; and

[[Page 33946]]

       ``(III) leverage additional public and private resources to 
     fund training programs, including cash or in-kind matches 
     from participating employers.

       ``(v) Coordination.--A grantee under this subparagraph 
     shall coordinate activities carried out under the grant with 
     existing other appropriate training programs, including 
     apprenticeship and labor management training programs, 
     including such activities referenced in paragraph (3)(A), and 
     implement training programs that lead to the economic self-
     sufficiency of trainees.
       ``(E) Pathways out of poverty demonstration program.--
       ``(i) In general.--Under the program established under 
     paragraph (1), the Secretary shall award competitive grants 
     of sufficient size to eligible entities to enable such 
     entities to carry out training that leads to economic self-
     sufficiency. The Secretary shall give priority to entities 
     that serve individuals in families with income of less than 
     200 percent of the sufficiency standard for the local areas 
     where the training is conducted that specifies, as defined by 
     the State, or where such standard is not established, the 
     income needs of families, by family size, the number and ages 
     of children in the family, and sub-State geographical 
     considerations. Grants shall be awards to ensure geographic 
     diversity.
       ``(ii) Eligible entities.--To be eligible to receive a 
     grant an entity shall be a partnership that--

       ``(I) includes community-based nonprofit organizations, 
     educational institutions with expertise in serving low-income 
     adults or youth, public or private employers from the 
     industry sectors described in paragraph (1)(B)(ii), and labor 
     organizations representing workers in such industry sectors;
       ``(II) demonstrates a record of successful experience in 
     implementing and operating worker skills training and 
     education programs;
       ``(III) coordinates activities, where appropriate, with the 
     workforce investment system; and
       ``(IV) demonstrates the ability to recruit individuals for 
     training and to support such individuals to successful 
     completion in training programs carried out under this grant, 
     targeting populations of workers who are or will be engaged 
     in activities related to energy efficiency and renewable 
     energy industries.

       ``(iii) Priorities.--In awarding grants under this 
     paragraph, the Secretary shall give priority to applicants 
     that--

       ``(I) target programs to benefit low-income workers, 
     unemployed youth and adults, high school dropouts, or other 
     underserved sectors of the workforce within areas of high 
     poverty;
       ``(II) ensure that supportive services are integrated with 
     education and training, and delivered by organizations with 
     direct access to and experience with targeted populations;
       ``(III) leverage additional public and private resources to 
     fund training programs, including cash or in-kind matches 
     from participating employers;
       ``(IV) involve employers and labor organizations in the 
     determination of relevant skills and competencies and ensure 
     that the certificates or credentials that result from the 
     training are employer-recognized;
       ``(V) deliver courses at alternative times (such as evening 
     and weekend programs) and locations most convenient and 
     accessible to participants and link adult remedial education 
     with occupational skills training; and
       ``(VI) demonstrate substantial experience in administering 
     local, municipal, State, Federal, foundation, or private 
     entity grants.

       ``(iv) Data collection.--Grantees shall collect and report 
     the following information:

       ``(I) The number of participants.
       ``(II) The demographic characteristics of participants, 
     including race, gender, age, parenting status, participation 
     in other Federal programs, education and literacy level at 
     entry, significant barriers to employment (such as limited 
     English proficiency, criminal record, addiction or mental 
     health problem requiring treatment, or mental disability).
       ``(III) The services received by participants, including 
     training, education, and supportive services.
       ``(IV) The amount of program spending per participant.
       ``(V) Program completion rates.
       ``(VI) Factors determined as significantly interfering with 
     program participation or completion.
       ``(VII) The rate of Job placement and the rate of 
     employment retention after 1 year.
       ``(VIII) The average wage at placement, including any 
     benefits, and the rate of average wage increase after 1 year.
       ``(IX) Any post-employment supportive services provided.

     The Secretary shall assist grantees in the collection of data 
     under this clause by making available, where practicable, 
     low-cost means of tracking the labor market outcomes of 
     participants, and by providing standardized reporting forms, 
     where appropriate.
       ``(3) Activities.--
       ``(A) In general.--Activities to be carried out under a 
     program authorized by subparagraph (B), (D), or (E) of 
     paragraph (2) shall be coordinated with existing systems or 
     providers, as appropriate. Such activities may include--
       ``(i) occupational skills training, including curriculum 
     development, on-the-job training, and classroom training;
       ``(ii) safety and health training;
       ``(iii) the provision of basic skills, literacy, GED, 
     English as a second language, and job readiness training;
       ``(iv) individual referral and tuition assistance for a 
     community college training program, or any training program 
     leading to an industry-recognized certificate;
       ``(v) internship programs in fields related to energy 
     efficiency and renewable energy;
       ``(vi) customized training in conjunction with an existing 
     registered apprenticeship program or labor-management 
     partnership;
       ``(vii) incumbent worker and career ladder training and 
     skill upgrading and retraining;
       ``(viii) the implementation of transitional jobs 
     strategies; and
       ``(ix) the provision of supportive services.
       ``(B) Outreach activities.--In addition to the activities 
     authorized under subparagraph (A), activities authorized for 
     programs under subparagraph (E) of paragraph (2) may include 
     the provision of outreach, recruitment, career guidance, and 
     case management services.
       ``(4) Worker protections and nondiscrimination 
     requirements.--
       ``(A) Application of wia.--The provisions of sections 181 
     and 188 of the Workforce Investment Act of 1998 (29 U.S.C. 
     2931 and 2938) shall apply to all programs carried out with 
     assistance under this subsection.
       ``(B) Consultation with labor organizations.--If a labor 
     organization represents a substantial number of workers who 
     are engaged in similar work or training in an area that is 
     the same as the area that is proposed to be funded under this 
     Act, the labor organization shall be provided an opportunity 
     to be consulted and to submit comments in regard to such a 
     proposal.
       ``(5) Performance measures.--
       ``(A) In general.--The Secretary shall negotiate and reach 
     agreement with the eligible entities that receive grants and 
     assistance under this section on performance measures for the 
     indicators of performance referred to in subparagraphs (A) 
     and (B) of section 136(b)(2) that will be used to evaluate 
     the performance of the eligible entity in carrying out the 
     activities described in subsection (e)(2). Each performance 
     measure shall consist of such an indicator of performance, 
     and a performance level referred to in subparagraph (B).
       ``(B) Performance levels.--The Secretary shall negotiate 
     and reach agreement with the eligible entity regarding the 
     levels of performance expected to be achieved by the eligible 
     entity on the indicators of performance.
       ``(6) Report.--
       ``(A) Status report.--Not later than 18 months after the 
     date of enactment of the Green Jobs Act of 2007, the 
     Secretary shall transmit a report to the Senate Committee on 
     Energy and Natural Resources, the Senate Committee on Health, 
     Education, Labor, and Pensions, the House Committee on 
     Education and Labor, and the House Committee on Energy and 
     Commerce on the training program established by this 
     subsection. The report shall include a description of the 
     entities receiving funding and the activities carried out by 
     such entities.
       ``(B) Evaluation.--Not later than 3 years after the date of 
     enactment of such Act, the Secretary shall transmit to the 
     Senate Committee on Energy and Natural Resources, the Senate 
     Committee on Health, Education, Labor, and Pensions, the 
     House Committee on Education and Labor, and the House 
     Committee on Energy and Commerce an assessment of such 
     program and an evaluation of the activities carried out by 
     entities receiving funding from such program.
       ``(7) Definition.--As used in this subsection, the term 
     `renewable energy' has the meaning given such term in section 
     203(b)(2) of the Energy Policy Act of 2005 (Public Law 109-
     58).
       ``(8) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection, $125,000,000 
     for each fiscal years, of which--
       ``(A) not to exceed 20 percent of the amount appropriated 
     in each such fiscal year shall be made available for, and 
     shall be equally divided between, national labor market 
     research and information under paragraph (2)(A) and State 
     labor market information and labor exchange research under 
     paragraph (2)(C), and not more than 2 percent of such amount 
     shall be for the evaluation and report required under 
     paragraph (4);
       ``(B) 20 percent shall be dedicated to Pathways Out of 
     Poverty Demonstration Programs under paragraph (2)(E); and
       ``(C) the remainder shall be divided equally between 
     National Energy Partnership Training Grants under paragraph 
     (2)(B) and State energy training partnership grants under 
     paragraph (2)(D).''.

           TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

                Subtitle A--Department of Transportation

     SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRONMENT.

       (a) In General.--Section 102 of title 49, United States 
     Code, is amended--

[[Page 33947]]

       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following:
       ``(g) Office of Climate Change and Environment.--
       ``(1) Establishment.--There is established in the 
     Department an Office of Climate Change and Environment to 
     plan, coordinate, and implement--
       ``(A) department-wide research, strategies, and actions 
     under the Department's statutory authority to reduce 
     transportation-related energy use and mitigate the effects of 
     climate change; and
       ``(B) department-wide research strategies and actions to 
     address the impacts of climate change on transportation 
     systems and infrastructure.
       ``(2) Clearinghouse.--The Office shall establish a 
     clearinghouse of solutions, including cost-effective 
     congestion reduction approaches, to reduce air pollution and 
     transportation-related energy use and mitigate the effects of 
     climate change.''.
       (b) Coordination.--The Office of Climate Change and 
     Environment of the Department of Transportation shall 
     coordinate its activities with the United States Global 
     Change Research Program.
       (c) Transportation System's Impact on Climate Change and 
     Fuel Efficiency.--
       (1) Study.--The Office of Climate Change and Environment, 
     in coordination with the Environmental Protection Agency and 
     in consultation with the United States Global Change Research 
     Program, shall conduct a study to examine the impact of the 
     Nation's transportation system on climate change and the fuel 
     efficiency savings and clean air impacts of major 
     transportation projects, to identify solutions to reduce air 
     pollution and transportation-related energy use and mitigate 
     the effects of climate change, and to examine the potential 
     fuel savings that could result from changes in the current 
     transportation system and through the use of intelligent 
     transportation systems that help businesses and consumers to 
     plan their travel and avoid delays, including Web-based real-
     time transit information systems, congestion information 
     systems, carpool information systems, parking information 
     systems, freight route management systems, and traffic 
     management systems.
       (2) Report.--Not later than one year after the date of 
     enactment of this Act, the Secretary of Transportation, in 
     coordination with the Administrator of the Environmental 
     Protection Agency, shall transmit to the Committee on 
     Transportation and Infrastructure and the Committee on Energy 
     and Commerce of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation and the 
     Committee on Environment and Public Works of the Senate a 
     report that contains the results of the study required under 
     this section.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation for the 
     Office of Climate Change and Environment to carry out its 
     duties under section 102(g) of title 49, United States Code 
     (as amended by this Act), such sums as may be necessary for 
     fiscal years 2008 through 2011.

                         Subtitle B--Railroads

     SEC. 1111. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT PILOT 
                   PROGRAM.

       (a) In General.--The Secretary of Transportation, in 
     consultation with the Administrator of the Environmental 
     Protection Agency, shall establish and carry out a pilot 
     program for making grants to railroad carriers (as defined in 
     section 20102 of title 49, United States Code) and State and 
     local governments--
       (1) for assistance in purchasing hybrid or other energy-
     efficient locomotives, including hybrid switch and generator-
     set locomotives; and
       (2) to demonstrate the extent to which such locomotives 
     increase fuel economy, reduce emissions, and lower costs of 
     operation.
       (b) Limitation.--Notwithstanding subsection (a), no grant 
     under this section may be used to fund the costs of emissions 
     reductions that are mandated under Federal law.
       (c) Grant Criteria.--In selecting applicants for grants 
     under this section, the Secretary of Transportation shall 
     consider--
       (1) the level of energy efficiency that would be achieved 
     by the proposed project;
       (2) the extent to which the proposed project would assist 
     in commercial deployment of hybrid or other energy-efficient 
     locomotive technologies;
       (3) the extent to which the proposed project complements 
     other private or governmental partnership efforts to improve 
     air quality or fuel efficiency in a particular area; and
       (4) the extent to which the applicant demonstrates 
     innovative strategies and a financial commitment to 
     increasing energy efficiency and reducing greenhouse gas 
     emissions of its railroad operations.
       (d) Competitive Grant Selection Process.--
       (1) Applications.--A railroad carrier or State or local 
     government seeking a grant under this section shall submit 
     for approval by the Secretary of Transportation an 
     application for the grant containing such information as the 
     Secretary of Transportation may require.
       (2) Competitive selection.--The Secretary of Transportation 
     shall conduct a national solicitation for applications for 
     grants under this section and shall select grantees on a 
     competitive basis.
       (e) Federal Share.--The Federal share of the cost of a 
     project under this section shall not exceed 80 percent of the 
     project cost.
       (f) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     submit to Congress a report on the results of the pilot 
     program carried out under this section.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Transportation 
     $10,000,000 for each of the fiscal years 2008 through 2011 to 
     carry out this section. Such funds shall remain available 
     until expended.

     SEC. 1112. CAPITAL GRANTS FOR CLASS II AND CLASS III 
                   RAILROADS.

       (a) Amendment.--Chapter 223 of title 49, United States 
     Code, is amended to read as follows:

   ``CHAPTER 223--CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS

``Sec.
``22301. Capital grants for class II and class III railroads.

     ``Sec. 22301. Capital grants for class II and class III 
       railroads

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program for making capital grants to class II and 
     class III railroads. Such grants shall be for projects in the 
     public interest that--
       ``(A)(i) rehabilitate, preserve, or improve railroad track 
     (including roadbed, bridges, and related track structures) 
     used primarily for freight transportation;
       ``(ii) facilitate the continued or greater use of railroad 
     transportation for freight shipments; and
       ``(iii) reduce the use of less fuel efficient modes of 
     transportation in the transportation of such shipments; and
       ``(B) demonstrate innovative technologies and advanced 
     research and development that increase fuel economy, reduce 
     greenhouse gas emissions, and lower the costs of operation.
       ``(2) Provision of grants.--Grants may be provided under 
     this chapter--
       ``(A) directly to the class II or class III railroad; or
       ``(B) with the concurrence of the class II or class III 
     railroad, to a State or local government.
       ``(3) State cooperation.--Class II and class III railroad 
     applicants for a grant under this chapter are encouraged to 
     utilize the expertise and assistance of State transportation 
     agencies in applying for and administering such grants. State 
     transportation agencies are encouraged to provide such 
     expertise and assistance to such railroads.
       ``(4) Regulations.--Not later than October 1, 2008, the 
     Secretary shall issue final regulations to implement the 
     program under this section.
       ``(b) Maximum Federal Share.--The maximum Federal share for 
     carrying out a project under this section shall be 80 percent 
     of the project cost. The non-Federal share may be provided by 
     any non-Federal source in cash, equipment, or supplies. Other 
     in-kind contributions may be approved by the Secretary on a 
     case-by-case basis consistent with this chapter.
       ``(c) Use of Funds.--Grants provided under this section 
     shall be used to implement track capital projects as soon as 
     possible. In no event shall grant funds be contractually 
     obligated for a project later than the end of the third 
     Federal fiscal year following the year in which the grant was 
     awarded. Any funds not so obligated by the end of such fiscal 
     year shall be returned to the Secretary for reallocation.
       ``(d) Employee Protection.--The Secretary shall require as 
     a condition of any grant made under this section that the 
     recipient railroad provide a fair arrangement at least as 
     protective of the interests of employees who are affected by 
     the project to be funded with the grant as the terms imposed 
     under section 11326(a), as in effect on the date of the 
     enactment of this chapter.
       ``(e) Labor Standards.--
       ``(1) Prevailing wages.--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under subchapter IV of 
     chapter 31 of title 40 (commonly known as the `Davis-Bacon 
     Act'). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the subchapter IV of chapter 31 of title 40.
       ``(f) Study.--The Secretary shall conduct a study of the 
     projects carried out with grant assistance under this section 
     to determine the extent to which the program helps promote a 
     reduction in fuel use associated with

[[Page 33948]]

     the transportation of freight and demonstrates innovative 
     technologies that increase fuel economy, reduce greenhouse 
     gas emissions, and lower the costs of operation. Not later 
     than March 31, 2009, the Secretary shall submit a report to 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate on the study, 
     including any recommendations the Secretary considers 
     appropriate regarding the program.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary $50,000,000 for each of 
     fiscal years 2008 through 2011 for carrying out this 
     section.''.
       (b) Clerical Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

``223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS.22301''.....

                   Subtitle C--Marine Transportation

     SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE.

       (a) In General.--Title 46, United States Code, is amended 
     by adding after chapter 555 the following:

                ``CHAPTER 556--SHORT SEA TRANSPORTATION

``Sec. 55601. Short sea transportation program.
``Sec. 55602. Cargo and shippers.
``Sec. 55603. Interagency coordination.
``Sec. 55604. Research on short sea transportation.
``Sec. 55605. Short sea transportation defined.

     ``Sec. 55601. Short sea transportation program

       ``(a) Establishment.--The Secretary of Transportation shall 
     establish a short sea transportation program and designate 
     short sea transportation projects to be conducted under the 
     program to mitigate landside congestion.
       ``(b) Program Elements.--The program shall encourage the 
     use of short sea transportation through the development and 
     expansion of--
       ``(1) documented vessels;
       ``(2) shipper utilization;
       ``(3) port and landside infrastructure; and
       ``(4) marine transportation strategies by State and local 
     governments.
       ``(c) Short Sea Transportation Routes.--The Secretary shall 
     designate short sea transportation routes as extensions of 
     the surface transportation system to focus public and private 
     efforts to use the waterways to relieve landside congestion 
     along coastal corridors. The Secretary may collect and 
     disseminate data for the designation and delineation of short 
     sea transportation routes.
       ``(d) Project Designation.--The Secretary may designate a 
     project to be a short sea transportation project if the 
     Secretary determines that the project may--
       ``(1) offer a waterborne alternative to available landside 
     transportation services using documented vessels; and
       ``(2) provide transportation services for passengers or 
     freight (or both) that may reduce congestion on landside 
     infrastructure using documented vessels.
       ``(e) Elements of Program.--For a short sea transportation 
     project designated under this section, the Secretary may--
       ``(1) promote the development of short sea transportation 
     services;
       ``(2) coordinate, with ports, State departments of 
     transportation, localities, other public agencies, and the 
     private sector and on the development of landside facilities 
     and infrastructure to support short sea transportation 
     services; and
       ``(3) develop performance measures for the short sea 
     transportation program.
       ``(f) Multistate, State and Regional Transportation 
     Planning.--The Secretary, in consultation with Federal 
     entities and State and local governments, shall develop 
     strategies to encourage the use of short sea transportation 
     for transportation of passengers and cargo. The Secretary 
     shall--
       ``(1) assess the extent to which States and local 
     governments include short sea transportation and other marine 
     transportation solutions in their transportation planning;
       ``(2) encourage State departments of transportation to 
     develop strategies, where appropriate, to incorporate short 
     sea transportation, ferries, and other marine transportation 
     solutions for regional and interstate transport of freight 
     and passengers in their transportation planning; and
       ``(3) encourage groups of States and multi-State 
     transportation entities to determine how short sea 
     transportation can address congestion, bottlenecks, and other 
     interstate transportation challenges.

     ``Sec. 55602. Cargo and shippers

       ``(a) Memorandums of Agreement.--The Secretary of 
     Transportation shall enter into memorandums of understanding 
     with the heads of other Federal entities to transport 
     federally owned or generated cargo using a short sea 
     transportation project designated under section 55601 when 
     practical or available.
       ``(b) Short-Term Incentives.--The Secretary shall consult 
     shippers and other participants in transportation logistics 
     and develop proposals for short-term incentives to encourage 
     the use of short sea transportation.

     ``Sec. 55603. Interagency coordination

       ``The Secretary of Transportation shall establish a board 
     to identify and seek solutions to impediments hindering 
     effective use of short sea transportation. The board shall 
     include representatives of the Environmental Protection 
     Agency and other Federal, State, and local governmental 
     entities and private sector entities.

     ``Sec. 55604. Research on short sea transportation

       ``The Secretary of Transportation, in consultation with the 
     Administrator of the Environmental Protection Agency, may 
     conduct research on short sea transportation, regarding--
       ``(1) the environmental and transportation benefits to be 
     derived from short sea transportation alternatives for other 
     forms of transportation;
       ``(2) technology, vessel design, and other improvements 
     that would reduce emissions, increase fuel economy, and lower 
     costs of short sea transportation and increase the efficiency 
     of intermodal transfers; and
       ``(3) solutions to impediments to short sea transportation 
     projects designated under section 55601.

     ``Sec. 55605. Short sea transportation defined

       ``In this chapter, the term `short sea transportation' 
     means the carriage by vessel of cargo--
       ``(1) that is--
       ``(A) contained in intermodal cargo containers and loaded 
     by crane on the vessel; or
       ``(B) loaded on the vessel by means of wheeled technology; 
     and
       ``(2) that is--
       ``(A) loaded at a port in the United States and unloaded 
     either at another port in the United States or at a port in 
     Canada located in the Great Lakes Saint Lawrence Seaway 
     System; or
       ``(B) loaded at a port in Canada located in the Great Lakes 
     Saint Lawrence Seaway System and unloaded at a port in the 
     United States.''.
       (b) Clerical Amendment.--The table of chapters at the 
     beginning of subtitle V of such title is amended by inserting 
     after the item relating to chapter 555 the following:

``556. Short Sea Transportation............................55601''.....

       (c) Regulations.--
       (1) Interim regulations.--Not later than 90 days after the 
     date of enactment of this Act, the Secretary of 
     Transportation shall issue temporary regulations to implement 
     the program under this section. Subchapter II of chapter 5 of 
     title 5, United States Code, does not apply to a temporary 
     regulation issued under this paragraph or to an amendment to 
     such a temporary regulation.
       (2) Final regulations.--Not later than October 1, 2008, the 
     Secretary of Transportation shall issue final regulations to 
     implement the program under this section.

     SEC. 1122. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL 
                   CONSTRUCTION FUND.

       (a) Definition of Qualified Vessel.--Section 53501 of title 
     46, United States Code, is amended--
       (1) in paragraph (5)(A)(iii) by striking ``or noncontiguous 
     domestic'' and inserting ``noncontiguous domestic, or short 
     sea transportation trade''; and
       (2) by inserting after paragraph (6) the following:
       ``(7) Short sea transportation trade.--The term `short sea 
     transportation trade' means the carriage by vessel of cargo--
       ``(A) that is--
       ``(i) contained in intermodal cargo containers and loaded 
     by crane on the vessel; or
       ``(ii) loaded on the vessel by means of wheeled technology; 
     and
       ``(B) that is--
       ``(i) loaded at a port in the United States and unloaded 
     either at another port in the United States or at a port in 
     Canada located in the Great Lakes Saint Lawrence Seaway 
     System; or
       ``(ii) loaded at a port in Canada located in the Great 
     Lakes Saint Lawrence Seaway System and unloaded at a port in 
     the United States.''.
       (b) Allowable Purpose.--Section 53503(b) of such title is 
     amended by striking ``or noncontiguous domestic trade'' and 
     inserting ``noncontiguous domestic, or short sea 
     transportation trade''.

     SEC. 1123. SHORT SEA TRANSPORTATION REPORT.

       Not later than one year after the date of enactment of this 
     Act, the Secretary of Transportation, in consultation with 
     the Administrator of the Environmental Protection Agency, 
     shall submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate a report on the short sea transportation program 
     established under the amendments made by section 1121. The 
     report shall include a description of the activities 
     conducted under the program, and any recommendations for 
     further legislative or administrative action that the 
     Secretary of Transportation considers appropriate.

                          Subtitle D--Highways

     SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.

       Section 120(c) of title 23, United States Code, is 
     amended--

[[Page 33949]]

       (1) in the subsection heading by striking ``for Certain 
     Safety Projects'';
       (2) by striking ``The Federal share'' and inserting the 
     following:
       ``(1) Certain safety projects.--The Federal share''; and
       (3) by adding at the end the following:
       ``(2) CMAQ projects.--The Federal share payable on account 
     of a project or program carried out under section 149 with 
     funds obligated in fiscal year 2008 or 2009, or both, shall 
     be not less than 80 percent and, at the discretion of the 
     State, may be up to 100 percent of the cost thereof.''.

     SEC. 1132. DISTRIBUTION OF RESCISSIONS.

       (a) In General.--Any unobligated balances of amounts that 
     are appropriated from the Highway Trust Fund for a fiscal 
     year, and apportioned under chapter 1 of title 23, United 
     States Code, before, on, or after the date of enactment of 
     this Act and that are rescinded in fiscal year 2008 or fiscal 
     year 2009 shall be distributed by the Secretary of 
     Transportation within each State (as defined in section 101 
     of such title) among all programs for which funds are 
     apportioned under such chapter for such fiscal year, to the 
     extent sufficient funds remain available for obligation, in 
     the ratio that the amount of funds apportioned for each 
     program under such chapter for such fiscal year, bears to the 
     amount of funds apportioned for all such programs under such 
     chapter for such fiscal year.
       (b) Adjustments.--A State may make adjustments to the 
     distribution of a rescission within the State for a fiscal 
     year under subsection (a) by transferring the amounts to be 
     rescinded among the programs for which funds are apportioned 
     under chapter 1 of title 23, United States Code, for such 
     fiscal year, except that in making such adjustments the State 
     may not rescind from any such program more than 110 percent 
     of the funds to be rescinded from the program for the fiscal 
     year as determined by the Secretary of Transportation under 
     subsection (a).
       (c) Treatment of Transportation Enhancement Set-Aside and 
     Funds Suballocated to Substate Areas.--Funds set aside under 
     sections 133(d)(2) and 133(d)(3) of title 23, United States 
     Code, shall be treated as being apportioned under chapter 1 
     of such title for purposes of subsection (a).

     SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COMPLETE 
                   STREETS DESIGN TECHNIQUES.

       It is the sense of Congress that in constructing new 
     roadways or rehabilitating existing facilities, State and 
     local governments should consider policies designed to 
     accommodate all users, including motorists, pedestrians, 
     cyclists, transit riders, and people of all ages and 
     abilities, in order to--
       (1) serve all surface transportation users by creating a 
     more interconnected and intermodal system;
       (2) create more viable transportation options; and
       (3) facilitate the use of environmentally friendly options, 
     such as public transportation, walking, and bicycling.

               TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

     SEC. 1201. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY 
                   EFFICIENCY.

       Section 7(a)(31) of the Small Business Act (15 U.S.C. 
     636(a)(31)) is amended by adding at the end the following:
       ``(F) Express loans for renewable energy and energy 
     efficiency.--
       ``(i) Definitions.--In this subparagraph--

       ``(I) the term `biomass'--

       ``(aa) means any organic material that is available on a 
     renewable or recurring basis, including--
       ``(AA) agricultural crops;
       ``(BB) trees grown for energy production;
       ``(CC) wood waste and wood residues;
       ``(DD) plants (including aquatic plants and grasses);
       ``(EE) residues;
       ``(FF) fibers;
       ``(GG) animal wastes and other waste materials; and
       ``(HH) fats, oils, and greases (including recycled fats, 
     oils, and greases); and
       ``(bb) does not include--
       ``(AA) paper that is commonly recycled; or
       ``(BB) unsegregated solid waste;

       ``(II) the term `energy efficiency project' means the 
     installation or upgrading of equipment that results in a 
     significant reduction in energy usage; and
       ``(III) the term `renewable energy system' means a system 
     of energy derived from--

       ``(aa) a wind, solar, biomass (including biodiesel), or 
     geothermal source; or
       ``(bb) hydrogen derived from biomass or water using an 
     energy source described in item (aa).
       ``(ii) Loans.--The Administrator may make a loan under the 
     Express Loan Program for the purpose of--

       ``(I) purchasing a renewable energy system; or
       ``(II) carrying out an energy efficiency project for a 
     small business concern.''.

     SEC. 1202. PILOT PROGRAM FOR REDUCED 7(A) FEES FOR PURCHASE 
                   OF ENERGY EFFICIENT TECHNOLOGIES.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
     is amended by adding at the end the following:
       ``(32) Loans for energy efficient technologies.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `cost' has the meaning given that term in 
     section 502 of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a);
       ``(ii) the term `covered energy efficiency loan' means a 
     loan--

       ``(I) made under this subsection; and
       ``(II) the proceeds of which are used to purchase energy 
     efficient designs, equipment, or fixtures, or to reduce the 
     energy consumption of the borrower by 10 percent or more; and

       ``(iii) the term `pilot program' means the pilot program 
     established under subparagraph (B)
       ``(B) Establishment.--The Administrator shall establish and 
     carry out a pilot program under which the Administrator shall 
     reduce the fees for covered energy efficiency loans.
       ``(C) Duration.--The pilot program shall terminate at the 
     end of the second full fiscal year after the date that the 
     Administrator establishes the pilot program.
       ``(D) Maximum participation.--A covered energy efficiency 
     loan shall include the maximum participation levels by the 
     Administrator permitted for loans made under this subsection.
       ``(E) Fees.--
       ``(i) In general.--The fee on a covered energy efficiency 
     loan shall be equal to 50 percent of the fee otherwise 
     applicable to that loan under paragraph (18).
       ``(ii) Waiver.--The Administrator may waive clause (i) for 
     a fiscal year if--

       ``(I) for the fiscal year before that fiscal year, the 
     annual rate of default of covered energy efficiency loans 
     exceeds that of loans made under this subsection that are not 
     covered energy efficiency loans;
       ``(II) the cost to the Administration of making loans under 
     this subsection is greater than zero and such cost is 
     directly attributable to the cost of making covered energy 
     efficiency loans; and
       ``(III) no additional sources of revenue authority are 
     available to reduce the cost of making loans under this 
     subsection to zero.

       ``(iii) Effect of waiver.--If the Administrator waives the 
     reduction of fees under clause (ii), the Administrator--

       ``(I) shall not assess or collect fees in an amount greater 
     than necessary to ensure that the cost of the program under 
     this subsection is not greater than zero; and
       ``(II) shall reinstate the fee reductions under clause (i) 
     when the conditions in clause (ii) no longer apply.

       ``(iv) No increase of fees.--The Administrator shall not 
     increase the fees under paragraph (18) on loans made under 
     this subsection that are not covered energy efficiency loans 
     as a direct result of the pilot program.
       ``(F) GAO report.--
       ``(i) In general.--Not later than 1 year after the date 
     that the pilot program terminates, the Comptroller General of 
     the United States shall submit to the Committee on Small 
     Business of the House of Representatives and the Committee on 
     Small Business and Entrepreneurship of the Senate a report on 
     the pilot program.
       ``(ii) Contents.--The report submitted under clause (i) 
     shall include--

       ``(I) the number of covered energy efficiency loans for 
     which fees were reduced under the pilot program;
       ``(II) a description of the energy efficiency savings with 
     the pilot program;
       ``(III) a description of the impact of the pilot program on 
     the program under this subsection;
       ``(IV) an evaluation of the efficacy and potential fraud 
     and abuse of the pilot program; and
       ``(V) recommendations for improving the pilot program.''.

     SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY.

       (a) Definitions.--In this section--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the term ``association'' means the association of small 
     business development centers established under section 
     21(a)(3)(A) of the Small Business Act (15 U.S.C. 
     648(a)(3)(A));
       (3) the term ``disability'' has the meaning given that term 
     in section 3 of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12102);
       (4) the term ``Efficiency Program'' means the Small 
     Business Energy Efficiency Program established under 
     subsection (c)(1);
       (5) the term ``electric utility'' has the meaning given 
     that term in section 3 of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2602);
       (6) the term ``high performance green building'' has the 
     meaning given that term in section 401;
       (7) the term ``on-bill financing'' means a low interest or 
     no interest financing agreement between a small business 
     concern and an electric utility for the purchase or 
     installation of equipment, under which the regularly 
     scheduled payment of that small business concern to that 
     electric utility is not reduced by the amount of the 
     reduction in cost attributable to the new equipment and that 
     amount is credited to the electric utility, until the cost of 
     the purchase or installation is repaid;

[[Page 33950]]

       (8) the term ``small business concern'' has the same 
     meaning as in section 3 of the Small Business Act (15 U.S.C. 
     632);
       (9) the term ``small business development center'' means a 
     small business development center described in section 21 of 
     the Small Business Act (15 U.S.C. 648);
       (10) the term ``telecommuting'' means the use of 
     telecommunications to perform work functions under 
     circumstances which reduce or eliminate the need to commute;
       (11) the term ``Telecommuting Pilot Program'' means the 
     pilot program established under subsection (d)(1)(A); and
       (12) the term ``veteran'' has the meaning given that term 
     in section 101 of title 38, United States Code.
       (b) Implementation of Small Business Energy Efficiency 
     Program.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall promulgate 
     final rules establishing the Government-wide program 
     authorized under subsection (d) of section 337 of the Energy 
     Policy and Conservation Act (42 U.S.C. 6307) that ensure 
     compliance with that subsection by not later than 6 months 
     after such date of enactment.
       (2) Program required.--The Administrator shall develop and 
     coordinate a Government-wide program, building on the Energy 
     Star for Small Business program, to assist small business 
     concerns in--
       (A) becoming more energy efficient;
       (B) understanding the cost savings from improved energy 
     efficiency; and
       (C) identifying financing options for energy efficiency 
     upgrades.
       (3) Consultation and cooperation.--The program required by 
     paragraph (2) shall be developed and coordinated--
       (A) in consultation with the Secretary of Energy and the 
     Administrator of the Environmental Protection Agency; and
       (B) in cooperation with any entities the Administrator 
     considers appropriate, such as industry trade associations, 
     industry members, and energy efficiency organizations.
       (4) Availability of information.--The Administrator shall 
     make available the information and materials developed under 
     the program required by paragraph (2) to--
       (A) small business concerns, including smaller design, 
     engineering, and construction firms; and
       (B) other Federal programs for energy efficiency, such as 
     the Energy Star for Small Business program.
       (5) Strategy and report.--
       (A) Strategy required.--The Administrator shall develop a 
     strategy to educate, encourage, and assist small business 
     concerns in adopting energy efficient building fixtures and 
     equipment.
       (B) Report.--Not later than December 31, 2008, the 
     Administrator shall submit to Congress a report containing a 
     plan to implement the strategy developed under subparagraph 
     (A).
       (c) Small Business Sustainability Initiative.--
       (1) Authority.--The Administrator shall establish a Small 
     Business Energy Efficiency Program to provide energy 
     efficiency assistance to small business concerns through 
     small business development centers.
       (2) Small business development centers.--
       (A) In general.--In carrying out the Efficiency Program, 
     the Administrator shall enter into agreements with small 
     business development centers under which such centers shall--
       (i) provide access to information and resources on energy 
     efficiency practices, including on-bill financing options;
       (ii) conduct training and educational activities;
       (iii) offer confidential, free, one-on-one, in-depth energy 
     audits to the owners and operators of small business concerns 
     regarding energy efficiency practices;
       (iv) give referrals to certified professionals and other 
     providers of energy efficiency assistance who meet such 
     standards for educational, technical, and professional 
     competency as the Administrator shall establish;
       (v) to the extent not inconsistent with controlling State 
     public utility regulations, act as a facilitator between 
     small business concerns, electric utilities, lenders, and the 
     Administration to facilitate on-bill financing arrangements;
       (vi) provide necessary support to small business concerns 
     to--

       (I) evaluate energy efficiency opportunities and 
     opportunities to design or construct high performance green 
     buildings;
       (II) evaluate renewable energy sources, such as the use of 
     solar and small wind to supplement power consumption;
       (III) secure financing to achieve energy efficiency or to 
     design or construct high performance green buildings; and
       (IV) implement energy efficiency projects;

       (vii) assist owners of small business concerns with the 
     development and commercialization of clean technology 
     products, goods, services, and processes that use renewable 
     energy sources, dramatically reduce the use of natural 
     resources, and cut or eliminate greenhouse gas emissions 
     through--

       (I) technology assessment;
       (II) intellectual property;
       (III) Small Business Innovation Research submissions under 
     section 9 of the Small Business Act (15 U.S.C. 638);
       (IV) strategic alliances;
       (V) business model development; and
       (VI) preparation for investors; and

       (viii) help small business concerns improve environmental 
     performance by shifting to less hazardous materials and 
     reducing waste and emissions, including by providing 
     assistance for small business concerns to adapt the materials 
     they use, the processes they operate, and the products and 
     services they produce.
       (B) Reports.--Each small business development center 
     participating in the Efficiency Program shall submit to the 
     Administrator and the Administrator of the Environmental 
     Protection Agency an annual report that includes--
       (i) a summary of the energy efficiency assistance provided 
     by that center under the Efficiency Program;
       (ii) the number of small business concerns assisted by that 
     center under the Efficiency Program;
       (iii) statistics on the total amount of energy saved as a 
     result of assistance provided by that center under the 
     Efficiency Program; and
       (iv) any additional information determined necessary by the 
     Administrator, in consultation with the association.
       (C) Reports to congress.--Not later than 60 days after the 
     date on which all reports under subparagraph (B) relating to 
     a year are submitted, the Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives a report summarizing the information 
     regarding the Efficiency Program submitted by small business 
     development centers participating in that program.
       (3) Eligibility.--A small business development center shall 
     be eligible to participate in the Efficiency Program only if 
     that center is certified under section 21(k)(2) of the Small 
     Business Act (15 U.S.C. 648(k)(2)).
       (4) Selection of participating state programs.--From among 
     small business development centers submitting applications to 
     participate in the Efficiency Program, the Administrator--
       (A) shall, to the maximum extent practicable, select small 
     business development centers in such a manner so as to 
     promote a nationwide distribution of centers participating in 
     the Efficiency Program; and
       (B) may not select more than 1 small business development 
     center in a State to participate in the Efficiency Program.
       (5) Matching requirement.--Subparagraphs (A) and (B) of 
     section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) shall apply to assistance made available under the 
     Efficiency Program.
       (6) Grant amounts.--Each small business development center 
     selected to participate in the Efficiency Program under 
     paragraph (4) shall be eligible to receive a grant in an 
     amount equal to--
       (A) not less than $100,000 in each fiscal year; and
       (B) not more than $300,000 in each fiscal year.
       (7) Evaluation and report.--The Comptroller General of the 
     United States shall--
       (A) not later than 30 months after the date of disbursement 
     of the first grant under the Efficiency Program, initiate an 
     evaluation of that program; and
       (B) not later than 6 months after the date of the 
     initiation of the evaluation under subparagraph (A), submit 
     to the Administrator, the Committee on Small Business and 
     Entrepreneurship of the Senate, and the Committee on Small 
     Business of the House of Representatives, a report 
     containing--
       (i) the results of the evaluation; and
       (ii) any recommendations regarding whether the Efficiency 
     Program, with or without modification, should be extended to 
     include the participation of all small business development 
     centers.
       (8) Guarantee.--To the extent not inconsistent with State 
     law, the Administrator may guarantee the timely payment of a 
     loan made to a small business concern through an on-bill 
     financing agreement on such terms and conditions as the 
     Administrator shall establish through a formal rule making, 
     after providing notice and an opportunity for comment.
       (9) Implementation.--Subject to amounts approved in advance 
     in appropriations Acts and separate from amounts approved to 
     carry out section 21(a)(1) of the Small Business Act (15 
     U.S.C. 648(a)(1)), the Administrator may make grants or enter 
     into cooperative agreements to carry out this subsection.
       (10) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary to make grants 
     and enter into cooperative agreements to carry out this 
     subsection.
       (11) Termination.--The authority under this subsection 
     shall terminate 4 years after the date of disbursement of the 
     first grant under the Efficiency Program.
       (d) Small Business Telecommuting.--
       (1) Pilot program.--
       (A) In general.--The Administrator shall conduct, in not 
     more than 5 of the regions of the Administration, a pilot 
     program to provide information regarding telecommuting

[[Page 33951]]

     to employers that are small business concerns and to 
     encourage such employers to offer telecommuting options to 
     employees.
       (B) Special outreach to individuals with disabilities.--In 
     carrying out the Telecommuting Pilot Program, the 
     Administrator shall make a concerted effort to provide 
     information to--
       (i) small business concerns owned by or employing 
     individuals with disabilities, particularly veterans who are 
     individuals with disabilities;
       (ii) Federal, State, and local agencies having knowledge 
     and expertise in assisting individuals with disabilities, 
     including veterans who are individuals with disabilities; and
       (iii) any group or organization, the primary purpose of 
     which is to aid individuals with disabilities or veterans who 
     are individuals with disabilities.
       (C) Permissible activities.--In carrying out the 
     Telecommuting Pilot Program, the Administrator may--
       (i) produce educational materials and conduct presentations 
     designed to raise awareness in the small business community 
     of the benefits and the ease of telecommuting;
       (ii) conduct outreach--

       (I) to small business concerns that are considering 
     offering telecommuting options; and
       (II) as provided in subparagraph (B); and

       (iii) acquire telecommuting technologies and equipment to 
     be used for demonstration purposes.
       (D) Selection of regions.--In determining which regions 
     will participate in the Telecommuting Pilot Program, the 
     Administrator shall give priority consideration to regions in 
     which Federal agencies and private-sector employers have 
     demonstrated a strong regional commitment to telecommuting.
       (2) Report to congress.--Not later than 2 years after the 
     date on which funds are first appropriated to carry out this 
     subsection, the Administrator shall transmit to the Committee 
     on Small Business and Entrepreneurship of the Senate and the 
     Committee on Small Business of the House of Representatives a 
     report containing the results of an evaluation of the 
     Telecommuting Pilot Program and any recommendations regarding 
     whether the pilot program, with or without modification, 
     should be extended to include the participation of all 
     regions of the Administration.
       (3) Termination.--The Telecommuting Pilot Program shall 
     terminate 4 years after the date on which funds are first 
     appropriated to carry out this subsection.
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to the Administration $5,000,000 to carry 
     out this subsection.
       (e) Encouraging Innovation in Energy Efficiency.--Section 9 
     of the Small Business Act (15 U.S.C. 638) is amended by 
     adding at the end the following:
       ``(z) Encouraging Innovation in Energy Efficiency.--
       ``(1) Federal agency energy-related priority.--In carrying 
     out its duties under this section relating to SBIR and STTR 
     solicitations by Federal departments and agencies, the 
     Administrator shall--
       ``(A) ensure that such departments and agencies give high 
     priority to small business concerns that participate in or 
     conduct energy efficiency or renewable energy system research 
     and development projects; and
       ``(B) include in the annual report to Congress under 
     subsection (b)(7) a determination of whether the priority 
     described in subparagraph (A) is being carried out.
       ``(2) Consultation required.--The Administrator shall 
     consult with the heads of other Federal departments and 
     agencies in determining whether priority has been given to 
     small business concerns that participate in or conduct energy 
     efficiency or renewable energy system research and 
     development projects, as required by this subsection.
       ``(3) Guidelines.--The Administrator shall, as soon as is 
     practicable after the date of enactment of this subsection, 
     issue guidelines and directives to assist Federal agencies in 
     meeting the requirements of this subsection.
       ``(4) Definitions.--In this subsection--
       ``(A) the term `biomass'--
       ``(i) means any organic material that is available on a 
     renewable or recurring basis, including--

       ``(I) agricultural crops;
       ``(II) trees grown for energy production;
       ``(III) wood waste and wood residues;
       ``(IV) plants (including aquatic plants and grasses);
       ``(V) residues;
       ``(VI) fibers;
       ``(VII) animal wastes and other waste materials; and
       ``(VIII) fats, oils, and greases (including recycled fats, 
     oils, and greases); and

       ``(ii) does not include--

       ``(I) paper that is commonly recycled; or
       ``(II) unsegregated solid waste;

       ``(B) the term `energy efficiency project' means the 
     installation or upgrading of equipment that results in a 
     significant reduction in energy usage; and
       ``(C) the term `renewable energy system' means a system of 
     energy derived from--
       ``(i) a wind, solar, biomass (including biodiesel), or 
     geothermal source; or
       ``(ii) hydrogen derived from biomass or water using an 
     energy source described in clause (i).''.

     SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP 
                   ENERGY EFFICIENT TECHNOLOGIES AND PURCHASES.

       (a) Eligibility for Energy Efficiency Projects.--Section 
     501(d)(3) of the Small Business Investment Act of 1958 (15 
     U.S.C. 695(d)(3)) is amended--
       (1) in subparagraph (G) by striking ``or'' at the end;
       (2) in subparagraph (H) by striking the period at the end 
     and inserting a comma;
       (3) by inserting after subparagraph (H) the following:
       ``(I) reduction of energy consumption by at least 10 
     percent,
       ``(J) increased use of sustainable design, including 
     designs that reduce the use of greenhouse gas emitting fossil 
     fuels, or low-impact design to produce buildings that reduce 
     the use of non-renewable resources and minimize environmental 
     impact, or
       ``(K) plant, equipment and process upgrades of renewable 
     energy sources such as the small-scale production of energy 
     for individual buildings or communities consumption, commonly 
     known as micropower, or renewable fuels producers including 
     biodiesel and ethanol producers.''; and
       (4) by adding at the end the following: ``In subparagraphs 
     (J) and (K), terms have the meanings given those terms under 
     the Leadership in Energy and Environmental Design (LEED) 
     standard for green building certification, as determined by 
     the Administrator.''.
       (b) Loans for Plant Projects Used for Energy-Efficient 
     Purposes.--Section 502(2)(A) of the Small Business Investment 
     Act of 1958 (15 U.S.C. 696(2)(A)) is amended--
       (1) in clause (ii) by striking ``and'' at the end;
       (2) in clause (iii) by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(iv) $4,000,000 for each project that reduces the 
     borrower's energy consumption by at least 10 percent; and
       ``(v) $4,000,000 for each project that generates renewable 
     energy or renewable fuels, such as biodiesel or ethanol 
     production.''.

     SEC. 1205. ENERGY SAVING DEBENTURES.

       (a) In General.--Section 303 of the Small Business 
     Investment Act of 1958 (15 U.S.C. 683) is amended by adding 
     at the end the following:
       ``(k) Energy Saving Debentures.--In addition to any other 
     authority under this Act, a small business investment company 
     licensed in the first fiscal year after the date of enactment 
     of this subsection or any fiscal year thereafter may issue 
     Energy Saving debentures.''.
       (b) Definitions.--Section 103 of the Small Business 
     Investment Act of 1958 (15 U.S.C. 662) is amended--
       (1) in paragraph (16), by striking ``and'' at the end;
       (2) in paragraph (17), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(18) the term `Energy Saving debenture' means a deferred 
     interest debenture that--
       ``(A) is issued at a discount;
       ``(B) has a 5-year maturity or a 10-year maturity;
       ``(C) requires no interest payment or annual charge for the 
     first 5 years;
       ``(D) is restricted to Energy Saving qualified investments; 
     and
       ``(E) is issued at no cost (as defined in section 502 of 
     the Credit Reform Act of 1990) with respect to purchasing and 
     guaranteeing the debenture; and
       ``(19) the term `Energy Saving qualified investment' means 
     investment in a small business concern that is primarily 
     engaged in researching, manufacturing, developing, or 
     providing products, goods, or services that reduce the use or 
     consumption of non-renewable energy resources.''.

     SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.

       (a) Maximum Leverage.--Section 303(b)(2) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 303(b)(2)) is 
     amended by adding at the end the following:
       ``(D) Investments in energy saving small businesses.--
       ``(i) In general.--Subject to clause (ii), in calculating 
     the outstanding leverage of a company for purposes of 
     subparagraph (A), the Administrator shall exclude the amount 
     of the cost basis of any Energy Saving qualified investment 
     in a smaller enterprise made in the first fiscal year after 
     the date of enactment of this subparagraph or any fiscal year 
     thereafter by a company licensed in the applicable fiscal 
     year.
       ``(ii) Limitations.--

       ``(I) Amount of exclusion.--The amount excluded under 
     clause (i) for a company shall not exceed 33 percent of the 
     private capital of that company.
       ``(II) Maximum investment.--A company shall not make an 
     Energy Saving qualified investment in any one entity in an 
     amount equal to more than 20 percent of the private capital 
     of that company.
       ``(III) Other terms.--The exclusion of amounts under clause 
     (i) shall be subject to such terms as the Administrator may 
     impose to ensure that there is no cost (as that term is 
     defined in section 502 of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661a)) with respect to purchasing or 
     guaranteeing any debenture involved.''.

[[Page 33952]]

       (b) Maximum Aggregate Amount of Leverage.--Section 
     303(b)(4) of the Small Business Investment Act of 1958 (15 
     U.S.C. 303(b)(4)) is amended by adding at the end the 
     following:
       ``(E) Investments in energy saving small businesses.--
       ``(i) In general.--Subject to clause (ii), in calculating 
     the aggregate outstanding leverage of a company for purposes 
     of subparagraph (A), the Administrator shall exclude the 
     amount of the cost basis of any Energy Saving qualified 
     investment in a smaller enterprise made in the first fiscal 
     year after the date of enactment of this subparagraph or any 
     fiscal year thereafter by a company licensed in the 
     applicable fiscal year.
       ``(ii) Limitations.--

       ``(I) Amount of exclusion.--The amount excluded under 
     clause (i) for a company shall not exceed 33 percent of the 
     private capital of that company.
       ``(II) Maximum investment.--A company shall not make an 
     Energy Saving qualified investment in any one entity in an 
     amount equal to more than 20 percent of the private capital 
     of that company.
       ``(III) Other terms.--The exclusion of amounts under clause 
     (i) shall be subject to such terms as the Administrator may 
     impose to ensure that there is no cost (as that term is 
     defined in section 502 of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661a)) with respect to purchasing or 
     guaranteeing any debenture involved.''.

     SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.

       Title III of the Small Business Investment Act of 1958 (15 
     U.S.C. 681 et seq.) is amended by adding at the end the 
     following:

       ``PART C--RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM

     ``SEC. 381. DEFINITIONS.

       ``In this part:
       ``(1) Operational assistance.--The term `operational 
     assistance' means management, marketing, and other technical 
     assistance that assists a small business concern with 
     business development.
       ``(2) Participation agreement.--The term `participation 
     agreement' means an agreement, between the Administrator and 
     a company granted final approval under section 384(e), that--
       ``(A) details the operating plan and investment criteria of 
     the company; and
       ``(B) requires the company to make investments in smaller 
     enterprises primarily engaged in researching, manufacturing, 
     developing, producing, or bringing to market goods, products, 
     or services that generate or support the production of 
     renewable energy.
       ``(3) Renewable energy.--The term `renewable energy' means 
     energy derived from resources that are regenerative or that 
     cannot be depleted, including solar, wind, ethanol, and 
     biodiesel fuels.
       ``(4) Renewable fuel capital investment company.--The term 
     `Renewable Fuel Capital Investment company' means a company--
       ``(A) that--
       ``(i) has been granted final approval by the Administrator 
     under section 384(e); and
       ``(ii) has entered into a participation agreement with the 
     Administrator; or
       ``(B) that has received conditional approval under section 
     384(c).
       ``(5) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, and any other 
     commonwealth, territory, or possession of the United States.
       ``(6) Venture capital.--The term `venture capital' means 
     capital in the form of equity capital investments, as that 
     term is defined in section 303(g)(4).

     ``SEC. 382. PURPOSES.

       ``The purposes of the Renewable Fuel Capital Investment 
     Program established under this part are--
       ``(1) to promote the research, development, manufacture, 
     production, and bringing to market of goods, products, or 
     services that generate or support the production of renewable 
     energy by encouraging venture capital investments in smaller 
     enterprises primarily engaged such activities; and
       ``(2) to establish a venture capital program, with the 
     mission of addressing the unmet equity investment needs of 
     smaller enterprises engaged in researching, developing, 
     manufacturing, producing, and bringing to market goods, 
     products, or services that generate or support the production 
     of renewable energy, to be administered by the 
     Administrator--
       ``(A) to enter into participation agreements with Renewable 
     Fuel Capital Investment companies;
       ``(B) to guarantee debentures of Renewable Fuel Capital 
     Investment companies to enable each such company to make 
     venture capital investments in smaller enterprises engaged in 
     the research, development, manufacture, production, and 
     bringing to market of goods, products, or services that 
     generate or support the production of renewable energy; and
       ``(C) to make grants to Renewable Fuel Investment Capital 
     companies, and to other entities, for the purpose of 
     providing operational assistance to smaller enterprises 
     financed, or expected to be financed, by such companies.

     ``SEC. 383. ESTABLISHMENT.

       ``The Administrator shall establish a Renewable Fuel 
     Capital Investment Program, under which the Administrator 
     may--
       ``(1) enter into participation agreements for the purposes 
     described in section 382; and
       ``(2) guarantee the debentures issued by Renewable Fuel 
     Capital Investment companies as provided in section 385.

     ``SEC. 384. SELECTION OF RENEWABLE FUEL CAPITAL INVESTMENT 
                   COMPANIES.

       ``(a) Eligibility.--A company is eligible to apply to be 
     designated as a Renewable Fuel Capital Investment company if 
     the company--
       ``(1) is a newly formed for-profit entity or a newly formed 
     for-profit subsidiary of an existing entity;
       ``(2) has a management team with experience in alternative 
     energy financing or relevant venture capital financing; and
       ``(3) has a primary objective of investment in smaller 
     enterprises that research, manufacture, develop, produce, or 
     bring to market goods, products, or services that generate or 
     support the production of renewable energy.
       ``(b) Application.--A company desiring to be designated as 
     a Renewable Fuel Capital Investment company shall submit an 
     application to the Administrator that includes--
       ``(1) a business plan describing how the company intends to 
     make successful venture capital investments in smaller 
     enterprises primarily engaged in the research, manufacture, 
     development, production, or bringing to market of goods, 
     products, or services that generate or support the production 
     of renewable energy;
       ``(2) information regarding the relevant venture capital 
     qualifications and general reputation of the management of 
     the company;
       ``(3) a description of how the company intends to seek to 
     address the unmet capital needs of the smaller enterprises 
     served;
       ``(4) a proposal describing how the company intends to use 
     the grant funds provided under this part to provide 
     operational assistance to smaller enterprises financed by the 
     company, including information regarding whether the company 
     has employees with appropriate professional licenses or will 
     contract with another entity when the services of such an 
     individual are necessary;
       ``(5) with respect to binding commitments to be made to the 
     company under this part, an estimate of the ratio of cash to 
     in-kind contributions;
       ``(6) a description of whether and to what extent the 
     company meets the criteria under subsection (c)(2) and the 
     objectives of the program established under this part;
       ``(7) information regarding the management and financial 
     strength of any parent firm, affiliated firm, or any other 
     firm essential to the success of the business plan of the 
     company; and
       ``(8) such other information as the Administrator may 
     require.
       ``(c) Conditional Approval.--
       ``(1) In general.--From among companies submitting 
     applications under subsection (b), the Administrator shall 
     conditionally approve companies to operate as Renewable Fuel 
     Capital Investment companies.
       ``(2) Selection criteria.--In conditionally approving 
     companies under paragraph (1), the Administrator shall 
     consider--
       ``(A) the likelihood that the company will meet the goal of 
     its business plan;
       ``(B) the experience and background of the management team 
     of the company;
       ``(C) the need for venture capital investments in the 
     geographic areas in which the company intends to invest;
       ``(D) the extent to which the company will concentrate its 
     activities on serving the geographic areas in which it 
     intends to invest;
       ``(E) the likelihood that the company will be able to 
     satisfy the conditions under subsection (d);
       ``(F) the extent to which the activities proposed by the 
     company will expand economic opportunities in the geographic 
     areas in which the company intends to invest;
       ``(G) the strength of the proposal by the company to 
     provide operational assistance under this part as the 
     proposal relates to the ability of the company to meet 
     applicable cash requirements and properly use in-kind 
     contributions, including the use of resources for the 
     services of licensed professionals, when necessary, whether 
     provided by employees or contractors; and
       ``(H) any other factor determined appropriate by the 
     Administrator.
       ``(3) Nationwide distribution.--From among companies 
     submitting applications under subsection (b), the 
     Administrator shall consider the selection criteria under 
     paragraph (2) and shall, to the maximum extent practicable, 
     approve at least one company from each geographic region of 
     the Administration.
       ``(d) Requirements To Be Met for Final Approval.--
       ``(1) In general.--The Administrator shall grant each 
     conditionally approved company 2 years to satisfy the 
     requirements of this subsection.
       ``(2) Capital requirement.--Each conditionally approved 
     company shall raise not less than $3,000,000 of private 
     capital or binding capital commitments from 1 or more 
     investors (which shall not be departments or agencies of the 
     Federal Government) who

[[Page 33953]]

     meet criteria established by the Administrator.
       ``(3) Nonadministration resources for operational 
     assistance.--
       ``(A) In general.--In order to provide operational 
     assistance to smaller enterprises expected to be financed by 
     the company, each conditionally approved company shall have 
     binding commitments (for contribution in cash or in-kind)--
       ``(i) from sources other than the Administration that meet 
     criteria established by the Administrator; and
       ``(ii) payable or available over a multiyear period 
     determined appropriate by the Administrator (not to exceed 10 
     years).
       ``(B) Exception.--The Administrator may, in the discretion 
     of the Administrator and based upon a showing of special 
     circumstances and good cause, consider an applicant to have 
     satisfied the requirements of subparagraph (A) if the 
     applicant has--
       ``(i) a viable plan that reasonably projects the capacity 
     of the applicant to raise the amount (in cash or in-kind) 
     required under subparagraph (A); and
       ``(ii) binding commitments in an amount equal to not less 
     than 20 percent of the total amount required under paragraph 
     (A).
       ``(C) Limitation.--The total amount of a in-kind 
     contributions by a company shall be not more than 50 percent 
     of the total contributions by a company.
       ``(e) Final Approval; Designation.--The Administrator 
     shall, with respect to each applicant conditionally approved 
     under subsection (c)--
       ``(1) grant final approval to the applicant to operate as a 
     Renewable Fuel Capital Investment company under this part and 
     designate the applicant as such a company, if the applicant--
       ``(A) satisfies the requirements of subsection (d) on or 
     before the expiration of the time period described in that 
     subsection; and
       ``(B) enters into a participation agreement with the 
     Administrator; or
       ``(2) if the applicant fails to satisfy the requirements of 
     subsection (d) on or before the expiration of the time period 
     described in paragraph (1) of that subsection, revoke the 
     conditional approval granted under that subsection.

     ``SEC. 385. DEBENTURES.

       ``(a) In General.--The Administrator may guarantee the 
     timely payment of principal and interest, as scheduled, on 
     debentures issued by any Renewable Fuel Capital Investment 
     company.
       ``(b) Terms and Conditions.--The Administrator may make 
     guarantees under this section on such terms and conditions as 
     it determines appropriate, except that--
       ``(1) the term of any debenture guaranteed under this 
     section shall not exceed 15 years; and
       ``(2) a debenture guaranteed under this section--
       ``(A) shall carry no front-end or annual fees;
       ``(B) shall be issued at a discount;
       ``(C) shall require no interest payments during the 5-year 
     period beginning on the date the debenture is issued;
       ``(D) shall be prepayable without penalty after the end of 
     the 1-year period beginning on the date the debenture is 
     issued; and
       ``(E) shall require semiannual interest payments after the 
     period described in subparagraph (C).
       ``(c) Full Faith and Credit of the United States.--The full 
     faith and credit of the United States is pledged to pay all 
     amounts that may be required to be paid under any guarantee 
     under this part.
       ``(d) Maximum Guarantee.--
       ``(1) In general.--Under this section, the Administrator 
     may guarantee the debentures issued by a Renewable Fuel 
     Capital Investment company only to the extent that the total 
     face amount of outstanding guaranteed debentures of such 
     company does not exceed 150 percent of the private capital of 
     the company, as determined by the Administrator.
       ``(2) Treatment of certain federal funds.--For the purposes 
     of paragraph (1), private capital shall include capital that 
     is considered to be Federal funds, if such capital is 
     contributed by an investor other than a department or agency 
     of the Federal Government.

     ``SEC. 386. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

       ``(a) Issuance.--The Administrator may issue trust 
     certificates representing ownership of all or a fractional 
     part of debentures issued by a Renewable Fuel Capital 
     Investment company and guaranteed by the Administrator under 
     this part, if such certificates are based on and backed by a 
     trust or pool approved by the Administrator and composed 
     solely of guaranteed debentures.
       ``(b) Guarantee.--
       ``(1) In general.--The Administrator may, under such terms 
     and conditions as it determines appropriate, guarantee the 
     timely payment of the principal of and interest on trust 
     certificates issued by the Administrator or its agents for 
     purposes of this section.
       ``(2) Limitation.--Each guarantee under this subsection 
     shall be limited to the extent of principal and interest on 
     the guaranteed debentures that compose the trust or pool.
       ``(3) Prepayment or default.--If a debenture in a trust or 
     pool is prepaid, or in the event of default of such a 
     debenture, the guarantee of timely payment of principal and 
     interest on the trust certificates shall be reduced in 
     proportion to the amount of principal and interest such 
     prepaid debenture represents in the trust or pool. Interest 
     on prepaid or defaulted debentures shall accrue and be 
     guaranteed by the Administrator only through the date of 
     payment of the guarantee. At any time during its term, a 
     trust certificate may be called for redemption due to 
     prepayment or default of all debentures.
       ``(c) Full Faith and Credit of the United States.--The full 
     faith and credit of the United States is pledged to pay all 
     amounts that may be required to be paid under any guarantee 
     of a trust certificate issued by the Administrator or its 
     agents under this section.
       ``(d) Fees.--The Administrator shall not collect a fee for 
     any guarantee of a trust certificate under this section, but 
     any agent of the Administrator may collect a fee approved by 
     the Administrator for the functions described in subsection 
     (f)(2).
       ``(e) Subrogation and Ownership Rights.--
       ``(1) Subrogation.--If the Administrator pays a claim under 
     a guarantee issued under this section, it shall be subrogated 
     fully to the rights satisfied by such payment.
       ``(2) Ownership rights.--No Federal, State, or local law 
     shall preclude or limit the exercise by the Administrator of 
     its ownership rights in the debentures residing in a trust or 
     pool against which trust certificates are issued under this 
     section.
       ``(f) Management and Administration.--
       ``(1) Registration.--The Administrator may provide for a 
     central registration of all trust certificates issued under 
     this section.
       ``(2) Contracting of functions.--
       ``(A) In general.--The Administrator may contract with an 
     agent or agents to carry out on behalf of the Administrator 
     the pooling and the central registration functions provided 
     for in this section, including, not withstanding any other 
     provision of law--
       ``(i) maintenance, on behalf of and under the direction of 
     the Administrator, of such commercial bank accounts or 
     investments in obligations of the United States as may be 
     necessary to facilitate the creation of trusts or pools 
     backed by debentures guaranteed under this part; and
       ``(ii) the issuance of trust certificates to facilitate the 
     creation of such trusts or pools.
       ``(B) Fidelity bond or insurance requirement.--Any agent 
     performing functions on behalf of the Administrator under 
     this paragraph shall provide a fidelity bond or insurance in 
     such amounts as the Administrator determines to be necessary 
     to fully protect the interests of the United States.
       ``(3) Regulation of brokers and dealers.--The Administrator 
     may regulate brokers and dealers in trust certificates issued 
     under this section.
       ``(4) Electronic registration.--Nothing in this subsection 
     may be construed to prohibit the use of a book-entry or other 
     electronic form of registration for trust certificates issued 
     under this section.

     ``SEC. 387. FEES.

       ``(a) In General.--Except as provided in section 386(d), 
     the Administrator may charge such fees as it determines 
     appropriate with respect to any guarantee or grant issued 
     under this part, in an amount established annually by the 
     Administrator, as necessary to reduce to zero the cost (as 
     defined in section 502 of the Federal Credit Reform Act of 
     1990) to the Administration of purchasing and guaranteeing 
     debentures under this part, which amounts shall be paid to 
     and retained by the Administration.
       ``(b) Offset.--The Administrator may, as provided by 
     section 388, offset fees charged and collected under 
     subsection (a).

     ``SEC. 388. FEE CONTRIBUTION.

       ``(a) In General.--To the extent that amounts are made 
     available to the Administrator for the purpose of fee 
     contributions, the Administrator shall contribute to fees 
     paid by the Renewable Fuel Capital Investment companies under 
     section 387.
       ``(b) Annual Adjustment.--Each fee contribution under 
     subsection (a) shall be effective for 1 fiscal year and shall 
     be adjusted as necessary for each fiscal year thereafter to 
     ensure that amounts under subsection (a) are fully used. The 
     fee contribution for a fiscal year shall be based on the 
     outstanding commitments made and the guarantees and grants 
     that the Administrator projects will be made during that 
     fiscal year, given the program level authorized by law for 
     that fiscal year and any other factors that the Administrator 
     determines appropriate.

     ``SEC. 389. OPERATIONAL ASSISTANCE GRANTS.

       ``(a) In General.--
       ``(1) Authority.--The Administrator may make grants to 
     Renewable Fuel Capital Investment companies to provide 
     operational assistance to smaller enterprises financed, or 
     expected to be financed, by such companies or other entities.
       ``(2) Terms.--A grant under this subsection shall be made 
     over a multiyear period not to exceed 10 years, under such 
     other terms as the Administrator may require.
       ``(3) Grant amount.--The amount of a grant made under this 
     subsection to a Renewable Fuel Capital Investment company 
     shall be equal to the lesser of--

[[Page 33954]]

       ``(A) 10 percent of the resources (in cash or in kind) 
     raised by the company under section 384(d)(2); or
       ``(B) $1,000,000.
       ``(4) Pro rata reductions.--If the amount made available to 
     carry out this section is insufficient for the Administrator 
     to provide grants in the amounts provided for in paragraph 
     (3), the Administrator shall make pro rata reductions in the 
     amounts otherwise payable to each company and entity under 
     such paragraph.
       ``(5) Grants to conditionally approved companies.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     upon the request of a company conditionally approved under 
     section 384(c), the Administrator shall make a grant to the 
     company under this subsection.
       ``(B) Repayment by companies not approved.--If a company 
     receives a grant under this paragraph and does not enter into 
     a participation agreement for final approval, the company 
     shall, subject to controlling Federal law, repay the amount 
     of the grant to the Administrator.
       ``(C) Deduction of grant to approved company.--If a company 
     receives a grant under this paragraph and receives final 
     approval under section 384(e), the Administrator shall deduct 
     the amount of the grant from the total grant amount the 
     company receives for operational assistance.
       ``(D) Amount of grant.--No company may receive a grant of 
     more than $100,000 under this paragraph.
       ``(b) Supplemental Grants.--
       ``(1) In general.--The Administrator may make supplemental 
     grants to Renewable Fuel Capital Investment companies and to 
     other entities, as authorized by this part, under such terms 
     as the Administrator may require, to provide additional 
     operational assistance to smaller enterprises financed, or 
     expected to be financed, by the companies.
       ``(2) Matching requirement.--The Administrator may require, 
     as a condition of any supplemental grant made under this 
     subsection, that the company or entity receiving the grant 
     provide from resources (in a cash or in kind), other then 
     those provided by the Administrator, a matching contribution 
     equal to the amount of the supplemental grant.
       ``(c) Limitation.--None of the assistance made available 
     under this section may be used for any overhead or general 
     and administrative expense of a Renewable Fuel Capital 
     Investment company.

     ``SEC. 390. BANK PARTICIPATION.

       ``(a) In General.--Except as provided in subsection (b), 
     any national bank, any member bank of the Federal Reserve 
     System, and (to the extent permitted under applicable State 
     law) any insured bank that is not a member of such system, 
     may invest in any Renewable Fuel Capital Investment company, 
     or in any entity established to invest solely in Renewable 
     Fuel Capital Investment companies.
       ``(b) Limitation.--No bank described in subsection (a) may 
     make investments described in such subsection that are 
     greater than 5 percent of the capital and surplus of the 
     bank.

     ``SEC. 391. FEDERAL FINANCING BANK.

       ``Notwithstanding section 318, the Federal Financing Bank 
     may acquire a debenture issued by a Renewable Fuel Capital 
     Investment company under this part.

     ``SEC. 392. REPORTING REQUIREMENT.

       ``Each Renewable Fuel Capital Investment company that 
     participates in the program established under this part shall 
     provide to the Administrator such information as the 
     Administrator may require, including--
       ``(1) information related to the measurement criteria that 
     the company proposed in its program application; and
       ``(2) in each case in which the company makes, under this 
     part, an investment in, or a loan or a grant to, a business 
     that is not primarily engaged in the research, development, 
     manufacture, or bringing to market or renewable energy 
     sources, a report on the nature, origin, and revenues of the 
     business in which investments are made.

     ``SEC. 393. EXAMINATIONS.

       ``(a) In General.--Each Renewable Fuel Capital Investment 
     company that participates in the program established under 
     this part shall be subject to examinations made at the 
     direction of the Investment Division of the Administration in 
     accordance with this section.
       ``(b) Assistance of Private Sector Entities.--Examinations 
     under this section may be conducted with the assistance of a 
     private sector entity that has both the qualifications and 
     the expertise necessary to conduct such examinations.
       ``(c) Costs.--
       ``(1) Assessment.--
       ``(A) In general.--The Administrator may assess the cost of 
     examinations under this section, including compensation of 
     the examiners, against the company examined.
       ``(B) Payment.--Any company against which the Administrator 
     assesses costs under this paragraph shall pay such costs.
       ``(2) Deposit of funds.--Funds collected under this section 
     shall be deposited in the account for salaries and expenses 
     of the Administration.

     ``SEC. 394. MISCELLANEOUS.

       ``To the extent such procedures are not inconsistent with 
     the requirements of this part, the Administrator may take 
     such action as set forth in sections 309, 311, 312, and 314 
     and an officer, director, employee, agent, or other 
     participant in the management or conduct of the affairs of a 
     Renewable Fuel Capital Investment company shall be subject to 
     the requirements of such sections.

     ``SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

       ``Using the procedures for removing or suspending a 
     director or an officer of a licensee set forth in section 313 
     (to the extent such procedures are not inconsistent with the 
     requirements of this part), the Administrator may remove or 
     suspend any director or officer of any Renewable Fuel Capital 
     Investment company.

     ``SEC. 396. REGULATIONS.

       ``The Administrator may issue such regulations as the 
     Administrator determines necessary to carry out the 
     provisions of this part in accordance with its purposes.

     ``SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS.

       ``(a) In General.--Subject to the availability of 
     appropriations, the Administrator is authorized to make 
     $15,000,000 in operational assistance grants under section 
     389 for each of fiscal years 2008 and 2009.
       ``(b) Funds Collected for Examinations.--Funds deposited 
     under section 393(c)(2) are authorized to be appropriated 
     only for the costs of examinations under section 393 and for 
     the costs of other oversight activities with respect to the 
     program established under this part.

     ``SEC. 398. TERMINATION.

       ``The program under this part shall terminate at the end of 
     the second full fiscal year after the date that the 
     Administrator establishes the program under this part.''.

     SEC. 1208. STUDY AND REPORT.

       The Administrator of the Small Business Administration 
     shall conduct a study of the Renewable Fuel Capital 
     Investment Program under part C of title III of the Small 
     Business Investment Act of 1958, as added by this Act. Not 
     later than 3 years after the date of enactment of this Act, 
     the Administrator shall complete the study under this section 
     and submit to Congress a report regarding the results of the 
     study.

                         TITLE XIII--SMART GRID

     SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF 
                   ELECTRICITY GRID.

       It is the policy of the United States to support the 
     modernization of the Nation's electricity transmission and 
     distribution system to maintain a reliable and secure 
     electricity infrastructure that can meet future demand growth 
     and to achieve each of the following, which together 
     characterize a Smart Grid:
       (1) Increased use of digital information and controls 
     technology to improve reliability, security, and efficiency 
     of the electric grid.
       (2) Dynamic optimization of grid operations and resources, 
     with full cyber-security.
       (3) Deployment and integration of distributed resources and 
     generation, including renewable resources.
       (4) Development and incorporation of demand response, 
     demand-side resources, and energy-efficiency resources.
       (5) Deployment of ``smart'' technologies (real-time, 
     automated, interactive technologies that optimize the 
     physical operation of appliances and consumer devices) for 
     metering, communications concerning grid operations and 
     status, and distribution automation.
       (6) Integration of ``smart'' appliances and consumer 
     devices.
       (7) Deployment and integration of advanced electricity 
     storage and peak-shaving technologies, including plug-in 
     electric and hybrid electric vehicles, and thermal-storage 
     air conditioning.
       (8) Provision to consumers of timely information and 
     control options.
       (9) Development of standards for communication and 
     interoperability of appliances and equipment connected to the 
     electric grid, including the infrastructure serving the grid.
       (10) Identification and lowering of unreasonable or 
     unnecessary barriers to adoption of smart grid technologies, 
     practices, and services.

     SEC. 1302. SMART GRID SYSTEM REPORT.

       The Secretary, acting through the Assistant Secretary of 
     the Office of Electricity Delivery and Energy Reliability 
     (referred to in this section as the ``OEDER'') and through 
     the Smart Grid Task Force established in section 1303, shall, 
     after consulting with any interested individual or entity as 
     appropriate, no later than one year after enactment, and 
     every two years thereafter, report to Congress concerning the 
     status of smart grid deployments nationwide and any 
     regulatory or government barriers to continued deployment. 
     The report shall provide the current status and prospects of 
     smart grid development, including information on technology 
     penetration, communications network capabilities, costs, and 
     obstacles. It may include recommendations for State and 
     Federal policies or actions helpful to facilitate the 
     transition to a smart grid. To the extent appropriate, it 
     should take a regional perspective. In preparing this report, 
     the Secretary shall solicit advice and contributions from the 
     Smart Grid Advisory Committee created in section 1303; from 
     other involved Federal agencies including but not

[[Page 33955]]

     limited to the Federal Energy Regulatory Commission 
     (``Commission''), the National Institute of Standards and 
     Technology (``Institute''), and the Department of Homeland 
     Security; and from other stakeholder groups not already 
     represented on the Smart Grid Advisory Committee.

     SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK 
                   FORCE.

       (a) Smart Grid Advisory Committee.--
       (1) Establishment.--The Secretary shall establish, within 
     90 days of enactment of this Part, a Smart Grid Advisory 
     Committee (either as an independent entity or as a designated 
     sub-part of a larger advisory committee on electricity 
     matters). The Smart Grid Advisory Committee shall include 
     eight or more members appointed by the Secretary who have 
     sufficient experience and expertise to represent the full 
     range of smart grid technologies and services, to represent 
     both private and non-Federal public sector stakeholders. One 
     member shall be appointed by the Secretary to Chair the Smart 
     Grid Advisory Committee.
       (2) Mission.--The mission of the Smart Grid Advisory 
     Committee shall be to advise the Secretary, the Assistant 
     Secretary, and other relevant Federal officials concerning 
     the development of smart grid technologies, the progress of a 
     national transition to the use of smart-grid technologies and 
     services, the evolution of widely-accepted technical and 
     practical standards and protocols to allow interoperability 
     and inter-communication among smart-grid capable devices, and 
     the optimum means of using Federal incentive authority to 
     encourage such progress.
       (3) Applicability of federal advisory committee act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall apply to 
     the Smart Grid Advisory Committee.
       (b) Smart Grid Task Force.--
       (1) Establishment.--The Assistant Secretary of the Office 
     of Electricity Delivery and Energy Reliability shall 
     establish, within 90 days of enactment of this Part, a Smart 
     Grid Task Force composed of designated employees from the 
     various divisions of that office who have responsibilities 
     related to the transition to smart-grid technologies and 
     practices. The Assistant Secretary or his designee shall be 
     identified as the Director of the Smart Grid Task Force. The 
     Chairman of the Federal Energy Regulatory Commission and the 
     Director of the National Institute of Standards and 
     Technology shall each designate at least one employee to 
     participate on the Smart Grid Task Force. Other members may 
     come from other agencies at the invitation of the Assistant 
     Secretary or the nomination of the head of such other agency. 
     The Smart Grid Task Force shall, without disrupting the work 
     of the Divisions or Offices from which its members are drawn, 
     provide an identifiable Federal entity to embody the Federal 
     role in the national transition toward development and use of 
     smart grid technologies.
       (2) Mission.--The mission of the Smart Grid Task Force 
     shall be to insure awareness, coordination and integration of 
     the diverse activities of the Office and elsewhere in the 
     Federal government related to smart-grid technologies and 
     practices, including but not limited to: smart grid research 
     and development; development of widely accepted smart-grid 
     standards and protocols; the relationship of smart-grid 
     technologies and practices to electric utility regulation; 
     the relationship of smart-grid technologies and practices to 
     infrastructure development, system reliability and security; 
     and the relationship of smart-grid technologies and practices 
     to other facets of electricity supply, demand, transmission, 
     distribution, and policy. The Smart Grid Task Force shall 
     collaborate with the Smart Grid Advisory Committee and other 
     Federal agencies and offices. The Smart Grid Task Force shall 
     meet at the call of its Director as necessary to accomplish 
     its mission.
       (c) Authorization.--There are authorized to be appropriated 
     for the purposes of this section such sums as are necessary 
     to the Secretary to support the operations of the Smart Grid 
     Advisory Committee and Smart Grid Task Force for each of 
     fiscal years 2008 through 2020.

     SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND 
                   DEMONSTRATION.

       (a) Power Grid Digital Information Technology.--The 
     Secretary, in consultation with the Federal Energy Regulatory 
     Commission and other appropriate agencies, electric 
     utilities, the States, and other stakeholders, shall carry 
     out a program--
       (1) to develop advanced techniques for measuring peak load 
     reductions and energy-efficiency savings from smart metering, 
     demand response, distributed generation, and electricity 
     storage systems;
       (2) to investigate means for demand response, distributed 
     generation, and storage to provide ancillary services;
       (3) to conduct research to advance the use of wide-area 
     measurement and control networks, including data mining, 
     visualization, advanced computing, and secure and dependable 
     communications in a highly-distributed environment;
       (4) to test new reliability technologies, including those 
     concerning communications network capabilities, in a grid 
     control room environment against a representative set of 
     local outage and wide area blackout scenarios;
       (5) to identify communications network capacity needed to 
     implement advanced technologies.
       (6) to investigate the feasibility of a transition to time-
     of-use and real-time electricity pricing;
       (7) to develop algorithms for use in electric transmission 
     system software applications;
       (8) to promote the use of underutilized electricity 
     generation capacity in any substitution of electricity for 
     liquid fuels in the transportation system of the United 
     States; and
       (9) in consultation with the Federal Energy Regulatory 
     Commission, to propose interconnection protocols to enable 
     electric utilities to access electricity stored in vehicles 
     to help meet peak demand loads.
       (b) Smart Grid Regional Demonstration Initiative.--
       (1) In general.--The Secretary shall establish a smart grid 
     regional demonstration initiative (referred to in this 
     subsection as the ``Initiative'') composed of demonstration 
     projects specifically focused on advanced technologies for 
     use in power grid sensing, communications, analysis, and 
     power flow control. The Secretary shall seek to leverage 
     existing smart grid deployments.
       (2) Goals.--The goals of the Initiative shall be--
       (A) to demonstrate the potential benefits of concentrated 
     investments in advanced grid technologies on a regional grid;
       (B) to facilitate the commercial transition from the 
     current power transmission and distribution system 
     technologies to advanced technologies;
       (C) to facilitate the integration of advanced technologies 
     in existing electric networks to improve system performance, 
     power flow control, and reliability;
       (D) to demonstrate protocols and standards that allow for 
     the measurement and validation of the energy savings and 
     fossil fuel emission reductions associated with the 
     installation and use of energy efficiency and demand response 
     technologies and practices; and
       (E) to investigate differences in each region and 
     regulatory environment regarding best practices in 
     implementing smart grid technologies.
       (3) Demonstration projects.--
       (A) In general.--In carrying out the initiative, the 
     Secretary shall carry out smart grid demonstration projects 
     in up to 5 electricity control areas, including rural areas 
     and at least 1 area in which the majority of generation and 
     transmission assets are controlled by a tax-exempt entity.
       (B) Cooperation.--A demonstration project under 
     subparagraph (A) shall be carried out in cooperation with the 
     electric utility that owns the grid facilities in the 
     electricity control area in which the demonstration project 
     is carried out.
       (C) Federal share of cost of technology investments.--The 
     Secretary shall provide to an electric utility described in 
     subparagraph (B) financial assistance for use in paying an 
     amount equal to not more than 50 percent of the cost of 
     qualifying advanced grid technology investments made by the 
     electric utility to carry out a demonstration project.
       (D) Ineligibility for grants.--No person or entity 
     participating in any demonstration project conducted under 
     this subsection shall be eligible for grants under section 
     1306 for otherwise qualifying investments made as part of 
     that demonstration project.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) to carry out subsection (a), such sums as are necessary 
     for each of fiscal years 2008 through 2012; and
       (2) to carry out subsection (b), $100,000,000 for each of 
     fiscal years 2008 through 2012.

     SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK.

       (a) Interoperability Framework.--The Director of the 
     National Institute of Standards and Technology shall have 
     primary responsibility to coordinate the development of a 
     framework that includes protocols and model standards for 
     information management to achieve interoperability of smart 
     grid devices and systems. Such protocols and standards shall 
     further align policy, business, and technology approaches in 
     a manner that would enable all electric resources, including 
     demand-side resources, to contribute to an efficient, 
     reliable electricity network. In developing such protocols 
     and standards--
       (1) the Director shall seek input and cooperation from the 
     Commission, OEDER and its Smart Grid Task Force, the Smart 
     Grid Advisory Committee, other relevant Federal and State 
     agencies; and
       (2) the Director shall also solicit input and cooperation 
     from private entities interested in such protocols and 
     standards, including but not limited to the Gridwise 
     Architecture Council, the International Electrical and 
     Electronics Engineers, the National Electric Reliability 
     Organization recognized by the Federal Energy Regulatory 
     Commission, and National Electrical Manufacturer's 
     Association.
       (b) Scope of Framework.--The framework developed under 
     subsection (a) shall be flexible, uniform and technology 
     neutral, including but not limited to technologies for 
     managing smart grid information, and designed--

[[Page 33956]]

       (1) to accommodate traditional, centralized generation and 
     transmission resources and consumer distributed resources, 
     including distributed generation, renewable generation, 
     energy storage, energy efficiency, and demand response and 
     enabling devices and systems;
       (2) to be flexible to incorporate--
       (A) regional and organizational differences; and
       (B) technological innovations;
       (3) to consider the use of voluntary uniform standards for 
     certain classes of mass-produced electric appliances and 
     equipment for homes and businesses that enable customers, at 
     their election and consistent with applicable State and 
     Federal laws, and are manufactured with the ability to 
     respond to electric grid emergencies and demand response 
     signals by curtailing all, or a portion of, the electrical 
     power consumed by the appliances or equipment in response to 
     an emergency or demand response signal, including through--
       (A) load reduction to reduce total electrical demand;
       (B) adjustment of load to provide grid ancillary services; 
     and
       (C) in the event of a reliability crisis that threatens an 
     outage, short-term load shedding to help preserve the 
     stability of the grid; and
       (4) such voluntary standards should incorporate appropriate 
     manufacturer lead time.
       (c) Timing of Framework Development.--The Institute shall 
     begin work pursuant to this section within 60 days of 
     enactment. The Institute shall provide and publish an initial 
     report on progress toward recommended or consensus standards 
     and protocols within one year after enactment, further 
     reports at such times as developments warrant in the judgment 
     of the Institute, and a final report when the Institute 
     determines that the work is completed or that a Federal role 
     is no longer necessary.
       (d) Standards for Interoperability in Federal 
     Jurisdiction.--At any time after the Institute's work has led 
     to sufficient consensus in the Commission's judgment, the 
     Commission shall institute a rulemaking proceeding to adopt 
     such standards and protocols as may be necessary to insure 
     smart-grid functionality and interoperability in interstate 
     transmission of electric power, and regional and wholesale 
     electricity markets.
       (e) Authorization.--There are authorized to be appropriated 
     for the purposes of this section $5,000,000 to the Institute 
     to support the activities required by this subsection for 
     each of fiscal years 2008 through 2012.

     SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT 
                   COSTS.

       (a) Matching Fund.--The Secretary shall establish a Smart 
     Grid Investment Matching Grant Program to provide 
     reimbursement of one-fifth (20 percent) of qualifying Smart 
     Grid investments.
       (b) Qualifying Investments.--Qualifying Smart Grid 
     investments may include any of the following made on or after 
     the date of enactment of this Act:
       (1) In the case of appliances covered for purposes of 
     establishing energy conservation standards under part B of 
     title III of the Energy Policy and Conservation Act of 1975 
     (42 U.S.C. 6291 et seq.), the documented expenditures 
     incurred by a manufacturer of such appliances associated with 
     purchasing or designing, creating the ability to manufacture, 
     and manufacturing and installing for one calendar year, 
     internal devices that allow the appliance to engage in Smart 
     Grid functions.
       (2) In the case of specialized electricity-using equipment, 
     including motors and drivers, installed in industrial or 
     commercial applications, the documented expenditures incurred 
     by its owner or its manufacturer of installing devices or 
     modifying that equipment to engage in Smart Grid functions.
       (3) In the case of transmission and distribution equipment 
     fitted with monitoring and communications devices to enable 
     smart grid functions, the documented expenditures incurred by 
     the electric utility to purchase and install such monitoring 
     and communications devices.
       (4) In the case of metering devices, sensors, control 
     devices, and other devices integrated with and attached to an 
     electric utility system or retail distributor or marketer of 
     electricity that are capable of engaging in Smart Grid 
     functions, the documented expenditures incurred by the 
     electric utility, distributor, or marketer and its customers 
     to purchase and install such devices.
       (5) In the case of software that enables devices or 
     computers to engage in Smart Grid functions, the documented 
     purchase costs of the software.
       (6) In the case of entities that operate or coordinate 
     operations of regional electric grids, the documented 
     expenditures for purchasing and installing such equipment 
     that allows Smart Grid functions to operate and be combined 
     or coordinated among multiple electric utilities and between 
     that region and other regions.
       (7) In the case of persons or entities other than electric 
     utilities owning and operating a distributed electricity 
     generator, the documented expenditures of enabling that 
     generator to be monitored, controlled, or otherwise 
     integrated into grid operations and electricity flows on the 
     grid utilizing Smart Grid functions.
       (8) In the case of electric or hybrid-electric vehicles, 
     the documented expenses for devices that allow the vehicle to 
     engage in Smart Grid functions (but not the costs of 
     electricity storage for the vehicle).
       (9) The documented expenditures related to purchasing and 
     implementing Smart Grid functions in such other cases as the 
     Secretary shall identify. In making such grants, the 
     Secretary shall seek to reward innovation and early 
     adaptation, even if success is not complete, rather than 
     deployment of proven and commercially viable technologies.
       (c) Investments Not Included.--Qualifying Smart Grid 
     investments do not include any of the following:
       (1) Investments or expenditures for Smart Grid 
     technologies, devices, or equipment that are eligible for 
     specific tax credits or deductions under the Internal Revenue 
     Code, as amended.
       (2) Expenditures for electricity generation, transmission, 
     or distribution infrastructure or equipment not directly 
     related to enabling Smart Grid functions.
       (3) After the final date for State consideration of the 
     Smart Grid Information Standard under section 1307 (paragraph 
     (17) of section 111(d) of the Public Utility Regulatory 
     Policies Act of 1978), an investment that is not in 
     compliance with such standard.
       (4) After the development and publication by the Institute 
     of protocols and model standards for interoperability of 
     smart grid devices and technologies, an investment that fails 
     to incorporate any of such protocols or model standards.
       (5) Expenditures for physical interconnection of generators 
     or other devices to the grid except those that are directly 
     related to enabling Smart Grid functions.
       (6) Expenditures for ongoing salaries, benefits, or 
     personnel costs not incurred in the initial installation, 
     training, or start up of smart grid functions.
       (7) Expenditures for travel, lodging, meals or other 
     personal costs.
       (8) Ongoing or routine operation, billing, customer 
     relations, security, and maintenance expenditures.
       (9) Such other expenditures that the Secretary determines 
     not to be Qualifying Smart Grid Investments by reason of the 
     lack of the ability to perform Smart Grid functions or lack 
     of direct relationship to Smart Grid functions.
       (d) Smart Grid Functions.--The term ``smart grid 
     functions'' means any of the following:
       (1) The ability to develop, store, send and receive digital 
     information concerning electricity use, costs, prices, time 
     of use, nature of use, storage, or other information relevant 
     to device, grid, or utility operations, to or from or by 
     means of the electric utility system, through one or a 
     combination of devices and technologies.
       (2) The ability to develop, store, send and receive digital 
     information concerning electricity use, costs, prices, time 
     of use, nature of use, storage, or other information relevant 
     to device, grid, or utility operations to or from a computer 
     or other control device.
       (3) The ability to measure or monitor electricity use as a 
     function of time of day, power quality characteristics such 
     as voltage level, current, cycles per second, or source or 
     type of generation and to store, synthesize or report that 
     information by digital means.
       (4) The ability to sense and localize disruptions or 
     changes in power flows on the grid and communicate such 
     information instantaneously and automatically for purposes of 
     enabling automatic protective responses to sustain 
     reliability and security of grid operations.
       (5) The ability to detect, prevent, communicate with regard 
     to, respond to, or recover from system security threats, 
     including cyber-security threats and terrorism, using digital 
     information, media, and devices.
       (6) The ability of any appliance or machine to respond to 
     such signals, measurements, or communications automatically 
     or in a manner programmed by its owner or operator without 
     independent human intervention.
       (7) The ability to use digital information to operate 
     functionalities on the electric utility grid that were 
     previously electro-mechanical or manual.
       (8) The ability to use digital controls to manage and 
     modify electricity demand, enable congestion management, 
     assist in voltage control, provide operating reserves, and 
     provide frequency regulation.
       (9) Such other functions as the Secretary may identify as 
     being necessary or useful to the operation of a Smart Grid.
       (e) The Secretary shall--
       (1) establish and publish in the Federal Register, within 
     one year after the enactment of this Act procedures by which 
     applicants who have made qualifying Smart Grid investments 
     can seek and obtain reimbursement of one-fifth of their 
     documented expenditures;
       (2) establish procedures to ensure that there is no 
     duplication or multiple reimbursement for the same investment 
     or costs, that the reimbursement goes to the party making the 
     actual expenditures for Qualifying Smart Grid Investments, 
     and that the grants made have significant effect in 
     encouraging and facilitating the development of a smart grid;

[[Page 33957]]

       (3) maintain public records of reimbursements made, 
     recipients, and qualifying Smart Grid investments which have 
     received reimbursements;
       (4) establish procedures to provide, in cases deemed by the 
     Secretary to be warranted, advance payment of moneys up to 
     the full amount of the projected eventual reimbursement, to 
     creditworthy applicants whose ability to make Qualifying 
     Smart Grid Investments may be hindered by lack of initial 
     capital, in lieu of any later reimbursement for which that 
     applicant qualifies, and subject to full return of the 
     advance payment in the event that the Qualifying Smart Grid 
     investment is not made; and
       (5) have and exercise the discretion to deny grants for 
     investments that do not qualify in the reasonable judgment of 
     the Secretary.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary for the administration of this section and the 
     grants to be made pursuant to this section for fiscal years 
     2008 through 2012.

     SEC. 1307. STATE CONSIDERATION OF SMART GRID.

       (a) Section 111(d) of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding 
     at the end the following:
       ``(16) Consideration of smart grid investments.--
       ``(A) In general.--Each State shall consider requiring 
     that, prior to undertaking investments in nonadvanced grid 
     technologies, an electric utility of the State demonstrate to 
     the State that the electric utility considered an investment 
     in a qualified smart grid system based on appropriate 
     factors, including--
       ``(i) total costs;
       ``(ii) cost-effectiveness;
       ``(iii) improved reliability;
       ``(iv) security;
       ``(v) system performance; and
       ``(vi) societal benefit.
       ``(B) Rate recovery.--Each State shall consider authorizing 
     each electric utility of the State to recover from ratepayers 
     any capital, operating expenditure, or other costs of the 
     electric utility relating to the deployment of a qualified 
     smart grid system, including a reasonable rate of return on 
     the capital expenditures of the electric utility for the 
     deployment of the qualified smart grid system.
       ``(C) Obsolete equipment.--Each State shall consider 
     authorizing any electric utility or other party of the State 
     to deploy a qualified smart grid system to recover in a 
     timely manner the remaining book-value costs of any equipment 
     rendered obsolete by the deployment of the qualified smart 
     grid system, based on the remaining depreciable life of the 
     obsolete equipment.
       ``(17) Smart grid information.--
       ``(A) Standard.--All electricity purchasers shall be 
     provided direct access, in written or electronic machine-
     readable form as appropriate, to information from their 
     electricity provider as provided in subparagraph (B).
       ``(B) Information.--Information provided under this 
     section, to the extent practicable, shall include:
       ``(i) Prices.--Purchasers and other interested persons 
     shall be provided with information on--

       ``(I) time-based electricity prices in the wholesale 
     electricity market; and
       ``(II) time-based electricity retail prices or rates that 
     are available to the purchasers.

       ``(ii) Usage.--Purchasers shall be provided with the number 
     of electricity units, expressed in kwh, purchased by them.
       ``(iii) Intervals and projections.--Updates of information 
     on prices and usage shall be offered on not less than a daily 
     basis, shall include hourly price and use information, where 
     available, and shall include a day-ahead projection of such 
     price information to the extent available.
       ``(iv) Sources.--Purchasers and other interested persons 
     shall be provided annually with written information on the 
     sources of the power provided by the utility, to the extent 
     it can be determined, by type of generation, including 
     greenhouse gas emissions associated with each type of 
     generation, for intervals during which such information is 
     available on a cost-effective basis.
       ``(C) Access.--Purchasers shall be able to access their own 
     information at any time through the internet and on other 
     means of communication elected by that utility for Smart Grid 
     applications. Other interested persons shall be able to 
     access information not specific to any purchaser through the 
     Internet. Information specific to any purchaser shall be 
     provided solely to that purchaser.''.
       (b) Compliance.--
       (1) Time limitations.--Section 112(b) of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is 
     amended by adding the following at the end thereof:
       ``(6)(A) Not later than 1 year after the enactment of this 
     paragraph, each State regulatory authority (with respect to 
     each electric utility for which it has ratemaking authority) 
     and each nonregulated utility shall commence the 
     consideration referred to in section 111, or set a hearing 
     date for consideration, with respect to the standards 
     established by paragraphs (17) through (18) of section 
     111(d).
       ``(B) Not later than 2 years after the date of the 
     enactment of the this paragraph, each State regulatory 
     authority (with respect to each electric utility for which it 
     has ratemaking authority), and each nonregulated electric 
     utility, shall complete the consideration, and shall make the 
     determination, referred to in section 111 with respect to 
     each standard established by paragraphs (17) through (18) of 
     section 111(d).''.
       (2) Failure to comply.--Section 112(c) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) 
     is amended by adding the following at the end:
       ``In the case of the standards established by paragraphs 
     (16) through (19) of section 111(d), the reference contained 
     in this subsection to the date of enactment of this Act shall 
     be deemed to be a reference to the date of enactment of such 
     paragraphs.''.
       (3) Prior state actions.--Section 112(d) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) 
     is amended by inserting ``and paragraphs (17) through (18)'' 
     before ``of section 111(d)''.

     SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE 
                   DEVELOPMENT OF COMBINED HEAT AND POWER 
                   FACILITIES.

       (a) Study.--
       (1) In general.--The Secretary, in consultation with the 
     States and other appropriate entities, shall conduct a study 
     of the laws (including regulations) affecting the siting of 
     privately owned electric distribution wires on and across 
     public rights-of-way.
       (2) Requirements.--The study under paragraph (1) shall 
     include--
       (A) an evaluation of--
       (i) the purposes of the laws; and
       (ii) the effect the laws have on the development of 
     combined heat and power facilities;
       (B) a determination of whether a change in the laws would 
     have any operating, reliability, cost, or other impacts on 
     electric utilities and the customers of the electric 
     utilities; and
       (C) an assessment of--
       (i) whether privately owned electric distribution wires 
     would result in duplicative facilities; and
       (ii) whether duplicative facilities are necessary or 
     desirable.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that describes the results of the study conducted 
     under subsection (a).

     SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID 
                   SYSTEMS.

       (a) DOE Study.--The Secretary shall, within 18 months after 
     the date of enactment of this Act, submit a report to 
     Congress that provides a quantitative assessment and 
     determination of the existing and potential impacts of the 
     deployment of Smart Grid systems on improving the security of 
     the Nation's electricity infrastructure and operating 
     capability. The report shall include but not be limited to 
     specific recommendations on each of the following:
       (1) How smart grid systems can help in making the Nation's 
     electricity system less vulnerable to disruptions due to 
     intentional acts against the system.
       (2) How smart grid systems can help in restoring the 
     integrity of the Nation's electricity system subsequent to 
     disruptions.
       (3) How smart grid systems can facilitate nationwide, 
     interoperable emergency communications and control of the 
     Nation's electricity system during times of localized, 
     regional, or nationwide emergency.
       (4) What risks must be taken into account that smart grid 
     systems may, if not carefully created and managed, create 
     vulnerability to security threats of any sort, and how such 
     risks may be mitigated.
       (b) Consultation.--The Secretary shall consult with other 
     Federal agencies in the development of the report under this 
     section, including but not limited to the Secretary of 
     Homeland Security, the Federal Energy Regulatory Commission, 
     and the Electric Reliability Organization certified by the 
     Commission under section 215(c) of the Federal Power Act (16 
     U.S.C. 824o) as added by section 1211 of the Energy Policy 
     Act of 2005 (Public Law 109-58; 119 Stat. 941).

                     TITLE XIV--POOL AND SPA SAFETY

     SEC. 1401. SHORT TITLE.

       This title may be cited as the ``Virginia Graeme Baker Pool 
     and Spa Safety Act''.

     SEC. 1402. FINDINGS.

       Congress finds the following:
       (1) Of injury-related deaths, drowning is the second 
     leading cause of death in children aged 1 to 14 in the United 
     States.
       (2) In 2004, 761 children aged 14 and under died as a 
     result of unintentional drowning.
       (3) Adult supervision at all aquatic venues is a critical 
     safety factor in preventing children from drowning.
       (4) Research studies show that the installation and proper 
     use of barriers or fencing, as well as additional layers of 
     protection, could substantially reduce the number of 
     childhood residential swimming pool drownings and near 
     drownings.

     SEC. 1403. DEFINITIONS.

       In this title:
       (1) ASME/ANSI.--The term ``ASME/ANSI'' as applied to a 
     safety standard means such a standard that is accredited by 
     the American National Standards Institute and published

[[Page 33958]]

     by the American Society of Mechanical Engineers.
       (2) Barrier.--The term ``barrier'' includes a natural or 
     constructed topographical feature that prevents unpermitted 
     access by children to a swimming pool, and, with respect to a 
     hot tub, a lockable cover.
       (3) Commission.--The term ``Commission'' means the Consumer 
     Product Safety Commission.
       (4) Main drain.--The term ``main drain'' means a submerged 
     suction outlet typically located at the bottom of a pool or 
     spa to conduct water to a re-circulating pump.
       (5) Safety vacuum release system.--The term ``safety vacuum 
     release system'' means a vacuum release system capable of 
     providing vacuum release at a suction outlet caused by a high 
     vacuum occurrence due to a suction outlet flow blockage.
       (6) Swimming pool; spa.--The term ``swimming pool'' or 
     ``spa'' means any outdoor or indoor structure intended for 
     swimming or recreational bathing, including in-ground and 
     above-ground structures, and includes hot tubs, spas, 
     portable spas, and non-portable wading pools.
       (7) Unblockable drain.--The term ``unblockable drain'' 
     means a drain of any size and shape that a human body cannot 
     sufficiently block to create a suction entrapment hazard.

     SEC. 1404. FEDERAL SWIMMING POOL AND SPA DRAIN COVER 
                   STANDARD.

       (a) Consumer Product Safety Rule.--The requirements 
     described in subsection (b) shall be treated as a consumer 
     product safety rule issued by the Consumer Product Safety 
     Commission under the Consumer Product Safety Act (15 U.S.C. 
     2051 et seq.).
       (b) Drain Cover Standard.--Effective 1 year after the date 
     of enactment of this title, each swimming pool or spa drain 
     cover manufactured, distributed, or entered into commerce in 
     the United States shall conform to the entrapment protection 
     standards of the ASME/ANSI A112.19.8 performance standard, or 
     any successor standard regulating such swimming pool or drain 
     cover.
       (c) Public Pools.--
       (1) Required equipment.--
       (A) In general.--Beginning 1 year after the date of 
     enactment of this title--
       (i) each public pool and spa in the United States shall be 
     equipped with anti-entrapment devices or systems that comply 
     with the ASME/ANSI A112.19.8 performance standard, or any 
     successor standard; and
       (ii) each public pool and spa in the United States with a 
     single main drain other than an unblockable drain shall be 
     equipped, at a minimum, with 1 or more of the following 
     devices or systems designed to prevent entrapment by pool or 
     spa drains that meets the requirements of subparagraph (B):

       (I) Safety vacuum release system.--A safety vacuum release 
     system which ceases operation of the pump, reverses the 
     circulation flow, or otherwise provides a vacuum release at a 
     suction outlet when a blockage is detected, that has been 
     tested by an independent third party and found to conform to 
     ASME/ANSI standard A112.19.17 or ASTM standard F2387.
       (II) Suction-limiting vent system.--A suction-limiting vent 
     system with a tamper-resistant atmospheric opening.
       (III) Gravity drainage system.--A gravity drainage system 
     that utilizes a collector tank.
       (IV) Automatic pump shut-off system.--An automatic pump 
     shut-off system.
       (V) Drain disablement.--A device or system that disables 
     the drain.
       (VI) Other systems.--Any other system determined by the 
     Commission to be equally effective as, or better than, the 
     systems described in subclauses (I) through (V) of this 
     clause at preventing or eliminating the risk of injury or 
     death associated with pool drainage systems.

       (B) Applicable standards.--Any device or system described 
     in subparagraph (A)(ii) shall meet the requirements of any 
     ASME/ANSI or ASTM performance standard if there is such a 
     standard for such a device or system, or any applicable 
     consumer product safety standard.
       (2) Public pool and spa defined.--In this subsection, the 
     term ``public pool and spa'' means a swimming pool or spa 
     that is--
       (A) open to the public generally, whether for a fee or free 
     of charge;
       (B) open exclusively to--
       (i) members of an organization and their guests;
       (ii) residents of a multi-unit apartment building, 
     apartment complex, residential real estate development, or 
     other multi-family residential area (other than a 
     municipality, township, or other local government 
     jurisdiction); or
       (iii) patrons of a hotel or other public accommodations 
     facility; or
       (C) operated by the Federal Government (or by a 
     concessionaire on behalf of the Federal Government) for the 
     benefit of members of the Armed Forces and their dependents 
     or employees of any department or agency and their 
     dependents.
       (3) Enforcement.--Violation of paragraph (1) shall be 
     considered to be a violation of section 19(a)(1) of the 
     Consumer Product Safety Act (15 U.S.C. 2068(a)(1)) and may 
     also be enforced under section 17 of that Act (15 U.S.C. 
     2066).

     SEC. 1405. STATE SWIMMING POOL SAFETY GRANT PROGRAM.

       (a) In General.--Subject to the availability of 
     appropriations authorized by subsection (e), the Commission 
     shall establish a grant program to provide assistance to 
     eligible States.
       (b) Eligibility.--To be eligible for a grant under the 
     program, a State shall--
       (1) demonstrate to the satisfaction of the Commission that 
     it has a State statute, or that, after the date of enactment 
     of this title, it has enacted a statute, or amended an 
     existing statute, and provides for the enforcement of, a law 
     that--
       (A) except as provided in section 1406(a)(1)(A)(i), applies 
     to all swimming pools in the State; and
       (B) meets the minimum State law requirements of section 
     1406; and
       (2) submit an application to the Commission at such time, 
     in such form, and containing such additional information as 
     the Commission may require.
       (c) Amount of Grant.--The Commission shall determine the 
     amount of a grant awarded under this title, and shall 
     consider--
       (1) the population and relative enforcement needs of each 
     qualifying State; and
       (2) allocation of grant funds in a manner designed to 
     provide the maximum benefit from the program in terms of 
     protecting children from drowning or entrapment, and, in 
     making that allocation, shall give priority to States that 
     have not received a grant under this title in a preceding 
     fiscal year.
       (d) Use of Grant Funds.--A State receiving a grant under 
     this section shall use--
       (1) at least 50 percent of amounts made available to hire 
     and train enforcement personnel for implementation and 
     enforcement of standards under the State swimming pool and 
     spa safety law; and
       (2) the remainder--
       (A) to educate pool construction and installation companies 
     and pool service companies about the standards;
       (B) to educate pool owners, pool operators, and other 
     members of the public about the standards under the swimming 
     pool and spa safety law and about the prevention of drowning 
     or entrapment of children using swimming pools and spas; and
       (C) to defray administrative costs associated with such 
     training and education programs.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Commission for each of fiscal years 
     2009 and 2010 $2,000,000 to carry out this section, such sums 
     to remain available until expended. Any amounts appropriated 
     pursuant to this subsection that remain unexpended and 
     unobligated at the end of fiscal year 2010 shall be retained 
     by the Commission and credited to the appropriations account 
     that funds enforcement of the Consumer Product Safety Act.

     SEC. 1406. MINIMUM STATE LAW REQUIREMENTS.

       (a) In General.--
       (1) Safety standards.--A State meets the minimum State law 
     requirements of this section if--
       (A) the State requires by statute--
       (i) the enclosure of all outdoor residential pools and spas 
     by barriers to entry that will effectively prevent small 
     children from gaining unsupervised and unfettered access to 
     the pool or spa;
       (ii) that all pools and spas be equipped with devices and 
     systems designed to prevent entrapment by pool or spa drains;
       (iii) that pools and spas built more than 1 year after the 
     date of the enactment of such statute have--

       (I) more than 1 drain;
       (II) 1 or more unblockable drains; or
       (III) no main drain;

       (iv) every swimming pool and spa that has a main drain, 
     other than an unblockable drain, be equipped with a drain 
     cover that meets the consumer product safety standard 
     established by section 1404; and
       (v) that periodic notification is provided to owners of 
     residential swimming pools or spas about compliance with the 
     entrapment protection standards of the ASME/ANSI A112.19.8 
     performance standard, or any successor standard; and
       (B) the State meets such additional State law requirements 
     for pools and spas as the Commission may establish after 
     public notice and a 30-day public comment period.
       (2) No liability inference associated with state 
     notification requirement.--The minimum State law notification 
     requirement under paragraph (1)(A)(v) shall not be construed 
     to imply any liability on the part of a State related to that 
     requirement.
       (b) Standards.--Nothing in this section prevents the 
     Commission from promulgating standards regulating pool and 
     spa safety or from relying on an applicable national 
     performance standard.
       (c) Basic Access-Related Safety Devices and Equipment 
     Requirements To Be Considered.--In establishing minimum State 
     law requirements for swimming pools and spas under subsection 
     (a)(1), the Commission shall consider the following 
     requirements:
       (1) Covers.--A safety pool cover.
       (2) Gates.--A gate with direct access to the swimming pool 
     or spa that is equipped with a self-closing, self-latching 
     device.
       (3) Doors.--Any door with direct access to the swimming 
     pool or spa that is equipped

[[Page 33959]]

     with an audible alert device or alarm which sounds when the 
     door is opened.
       (4) Pool alarm.--A device designed to provide rapid 
     detection of an entry into the water of a swimming pool or 
     spa.
       (d) Entrapment, Entanglement, and Evisceration Prevention 
     Standards To Be Required.--
       (1) In general.--In establishing additional minimum State 
     law requirements for swimming pools and spas under subsection 
     (a)(1), the Commission shall require, at a minimum, 1 or more 
     of the following (except for pools constructed without a 
     single main drain):
       (A) Safety vacuum release system.--A safety vacuum release 
     system which ceases operation of the pump, reverses the 
     circulation flow, or otherwise provides a vacuum release at a 
     suction outlet when a blockage is detected, that has been 
     tested by an independent third party and found to conform to 
     ASME/ANSI standard A112.19.17 or ASTM standard F2387, or any 
     successor standard.
       (B) Suction-limiting vent system.--A suction-limiting vent 
     system with a tamper-resistant atmospheric opening.
       (C) Gravity drainage system.--A gravity drainage system 
     that utilizes a collector tank.
       (D) Automatic pump shut-off system.--An automatic pump 
     shut-off system.
       (E) Drain disablement.--A device or system that disables 
     the drain.
       (F) Other systems.--Any other system determined by the 
     Commission to be equally effective as, or better than, the 
     systems described in subparagraphs (A) through (E) of this 
     paragraph at preventing or eliminating the risk of injury or 
     death associated with pool drainage systems.
       (2) Applicable standards.--Any device or system described 
     in subparagraphs (B) through (E) of paragraph (1) shall meet 
     the requirements of any ASME/ANSI or ASTM performance 
     standard if there is such a standard for such a device or 
     system, or any applicable consumer product safety standard.

     SEC. 1407. EDUCATION PROGRAM.

       (a) In General.--The Commission shall establish and carry 
     out an education program to inform the public of methods to 
     prevent drowning and entrapment in swimming pools and spas. 
     In carrying out the program, the Commission shall develop--
       (1) educational materials designed for pool manufacturers, 
     pool service companies, and pool supply retail outlets;
       (2) educational materials designed for pool owners and 
     operators; and
       (3) a national media campaign to promote awareness of pool 
     and spa safety.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Commission for each of the fiscal 
     years 2008 through 2012 $5,000,000 to carry out the education 
     program authorized by subsection (a).

     SEC. 1408. CPSC REPORT.

       Not later than 1 year after the last day of each fiscal 
     year for which grants are made under section 1405, the 
     Commission shall submit to Congress a report evaluating the 
     implementation of the grant program authorized by that 
     section.

   TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007

     SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This title may be cited as the ``Clean 
     Renewable Energy and Conservation Tax Act of 2007''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

        Subtitle A--Clean Renewable Energy Production Incentives

            PART I--PROVISIONS RELATING TO RENEWABLE ENERGY

     SEC. 1501. EXTENSION AND MODIFICATION OF RENEWABLE 
                   ELECTRICITY AND REFINED COAL PRODUCTION CREDIT.

       (a) Extension.--
       (1) In general.--Section 45(d) (relating to qualified 
     facilities) is amended by striking ``January 1, 2009'' each 
     place it appears in paragraphs (1), (2), (3), (4), (5), (6), 
     (7), (8), and (9) and inserting ``January 1, 2011''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect on the date of the enactment of this Act.
       (b) Modification of Refined Coal as a Qualified Energy 
     Resource.--
       (1) Elimination of increased market value test.--Section 
     45(c)(7)(A) (defining refined coal) is amended--
       (A) by striking clause (iv),
       (B) by adding ``and'' at the end of clause (ii), and
       (C) by striking ``, and'' at the end of clause (iii) and 
     inserting a period.
       (2) Increase in required emission reduction.--Section 
     45(c)(7)(B) (defining qualified emission reduction) is 
     amended by inserting ``at least 40 percent of the emissions 
     of'' after ``nitrogen oxide and''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to coal produced and sold after December 31, 
     2007.
       (c) Credit Allowed for On-Site Use of Electricity Produced 
     From Biomass.--
       (1) On-site use.--Section 45(e) (relating to definitions 
     and special rules) is amended by adding at the end the 
     following new paragraph:
       ``(12) Credit allowed for on-site use of electricity 
     produced from biomass.--In the case of electricity produced 
     after December 31, 2007, at any facility described in 
     paragraph (2) or (3) which is equipped with net metering to 
     determine electricity consumption or sale (such consumption 
     or sale to be verified by a third party as determined by the 
     Secretary), subsection (a)(2) shall be applied without regard 
     to subparagraph (B) thereof.''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect on the date of the enactment of this Act.
       (d) Expansion of Resources to Wave, Current, Tidal, and 
     Ocean Thermal Energy.--
       (1) In general.--Section 45(c)(1) (defining qualified 
     energy resources) is amended by striking ``and'' at the end 
     of subparagraph (G), by striking the period at the end of 
     subparagraph (H) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(I) wave, current, tidal, and ocean thermal energy.''.
       (2) Definition of resources.--Section 45(c) is amended by 
     adding at the end the following new paragraph:
       ``(10) Wave, current, tidal, and ocean thermal energy.--The 
     term `wave, current, tidal, and ocean thermal energy' means 
     electricity produced from any of the following:
       ``(A) Free flowing ocean water derived from tidal currents, 
     ocean currents, waves, or estuary currents.
       ``(B) Ocean thermal energy.''.
       (3) Facilities.--Section 45(d) is amended by adding at the 
     end the following new paragraph:
       ``(11) Wave, current, tidal, and ocean thermal facility.--
     In the case of a facility using resources described in 
     subparagraph (A), (B), or (C) of subsection (c)(10) to 
     produce electricity, the term `qualified facility' means any 
     facility owned by the taxpayer which is originally placed in 
     service after the date of the enactment of this paragraph and 
     before January 1, 2011, but such term shall not include a 
     facility which includes impoundment structures or a small 
     irrigation power facility.''.
       (4) Credit rate.--Section 45(b)(4)(A) (relating to credit 
     rate) is amended by striking ``or (9)'' and inserting ``(9), 
     or (11)''.
       (5) Effective date.--The amendments made by this subsection 
     shall take effect on the date of the enactment of this Act.
       (e) Trash Facility Clarification.--
       (1) In general.--Paragraph (7) of section 45(d) is 
     amended--
       (A) by striking ``facility which burns'' and inserting 
     ``facility (other than a facility described in paragraph (6)) 
     which uses'', and
       (B) by striking ``combustion''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to electricity produced and sold before, on, or 
     after December 31, 2007.

     SEC. 1502. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

       (a) Extension of Credit.--
       (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) (relating to energy credit) are 
     each amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2017''.
       (2) Fuel cell property.--Subparagraph (E) of section 
     48(c)(1) (relating to qualified fuel cell property) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2016''.
       (3) Microturbine property.--Subparagraph (E) of section 
     48(c)(2) (relating to qualified microturbine property) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2016''.
       (b) Allowance of Energy Credit Against Alternative Minimum 
     Tax.--Subparagraph (B) of section 38(c)(4) (relating to 
     specified credits) is amended by striking ``and'' at the end 
     of clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, and'', and by adding at the end the 
     following new clause:
       ``(v) the credit determined under section 46 to the extent 
     that such credit is attributable to the energy credit 
     determined under section 48.''.
       (c) Energy Credit for Combined Heat and Power System 
     Property.--
       (1) In general.--Section 48(a)(3)(A) (defining energy 
     property) is amended by striking ``or'' at the end of clause 
     (iii), by inserting ``or'' at the end of clause (iv), and by 
     adding at the end the following new clause:
       ``(v) combined heat and power system property,''.
       (2) Combined heat and power system property.--Section 48 
     (relating to energy credit; reforestation credit) is amended 
     by adding at the end the following new subsection:
       ``(d) Combined Heat and Power System Property.--For 
     purposes of subsection (a)(3)(A)(v)--
       ``(1) Combined heat and power system property.--The term 
     `combined heat and power system property' means property 
     comprising a system--

[[Page 33960]]

       ``(A) which uses the same energy source for the 
     simultaneous or sequential generation of electrical power, 
     mechanical shaft power, or both, in combination with the 
     generation of steam or other forms of useful thermal energy 
     (including heating and cooling applications),
       ``(B) which produces--
       ``(i) at least 20 percent of its total useful energy in the 
     form of thermal energy which is not used to produce 
     electrical or mechanical power (or combination thereof), and
       ``(ii) at least 20 percent of its total useful energy in 
     the form of electrical or mechanical power (or combination 
     thereof),
       ``(C) the energy efficiency percentage of which exceeds 60 
     percent, and
       ``(D) which is placed in service before January 1, 2017.
       ``(2) Limitation.--
       ``(A) In general.--In the case of combined heat and power 
     system property with an electrical capacity in excess of the 
     applicable capacity placed in service during the taxable 
     year, the credit under subsection (a)(1) (determined without 
     regard to this paragraph) for such year shall be equal to the 
     amount which bears the same ratio to such credit as the 
     applicable capacity bears to the capacity of such property.
       ``(B) Applicable capacity.--For purposes of subparagraph 
     (A), the term `applicable capacity' means 15 megawatts or a 
     mechanical energy capacity of more than 20,000 horsepower or 
     an equivalent combination of electrical and mechanical energy 
     capacities.
       ``(C) Maximum capacity.--The term `combined heat and power 
     system property' shall not include any property comprising a 
     system if such system has a capacity in excess of 50 
     megawatts or a mechanical energy capacity in excess of 67,000 
     horsepower or an equivalent combination of electrical and 
     mechanical energy capacities.
       ``(3) Special rules.--
       ``(A) Energy efficiency percentage.--For purposes of this 
     subsection, the energy efficiency percentage of a system is 
     the fraction--
       ``(i) the numerator of which is the total useful 
     electrical, thermal, and mechanical power produced by the 
     system at normal operating rates, and expected to be consumed 
     in its normal application, and
       ``(ii) the denominator of which is the lower heating value 
     of the fuel sources for the system.
       ``(B) Determinations made on btu basis.--The energy 
     efficiency percentage and the percentages under paragraph 
     (1)(B) shall be determined on a Btu basis.
       ``(C) Input and output property not included.--The term 
     `combined heat and power system property' does not include 
     property used to transport the energy source to the facility 
     or to distribute energy produced by the facility.
       ``(4) Systems using biomass.--If a system is designed to 
     use biomass (within the meaning of paragraphs (2) and (3) of 
     section 45(c) without regard to the last sentence of 
     paragraph (3)(A)) for at least 90 percent of the energy 
     source--
       ``(A) paragraph (1)(C) shall not apply, but
       ``(B) the amount of credit determined under subsection (a) 
     with respect to such system shall not exceed the amount which 
     bears the same ratio to such amount of credit (determined 
     without regard to this paragraph) as the energy efficiency 
     percentage of such system bears to 60 percent.''.
       (d) Increase of Credit Limitation for Fuel Cell Property.--
     Subparagraph (B) of section 48(c)(1) is amended by striking 
     ``$500'' and inserting ``$1,500''.
       (e) Public Electric Utility Property Taken Into Account.--
       (1) In general.--Paragraph (3) of section 48(a) is amended 
     by striking the second sentence thereof.
       (2) Conforming amendments.--
       (A) Paragraph (1) of section 48(c) is amended by striking 
     subparagraph (D) and redesignating subparagraph (E) as 
     subparagraph (D).
       (B) Paragraph (2) of section 48(c) is amended by striking 
     subparagraph (D) and redesignating subparagraph (E) as 
     subparagraph (D).
       (f) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of 
     section 48(c) are each amended by striking ``paragraph (1)'' 
     and inserting ``subsection (a)''.
       (g) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall take 
     effect on the date of the enactment of this Act.
       (2) Allowance against alternative minimum tax.--The 
     amendments made by subsection (b) shall apply to credits 
     determined under section 46 of the Internal Revenue Code of 
     1986 in taxable years beginning after the date of the 
     enactment of this Act and to carrybacks of such credits.
       (3) Combined heat and power and fuel cell property.--The 
     amendments made by subsections (c) and (d) shall apply to 
     periods after the date of the enactment of this Act, in 
     taxable years ending after such date, under rules similar to 
     the rules of section 48(m) of the Internal Revenue Code of 
     1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).
       (4)  Public electric utility property.--The amendments made 
     by subsection (e) shall apply to periods after June 20, 2007, 
     in taxable years ending after such date, under rules similar 
     to the rules of section 48(m) of the Internal Revenue Code of 
     1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 1503. EXTENSION AND MODIFICATION OF CREDIT FOR 
                   RESIDENTIAL ENERGY EFFICIENT PROPERTY.

       (a) Extension.--Section 25D(g) (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2014''.
       (b) Maximum Credit for Solar Electric Property.--
       (1) In general.--Section 25D(b)(1)(A) (relating to maximum 
     credit) is amended by striking ``$2,000'' and inserting 
     ``$4,000''.
       (2) Conforming amendment.--Section 25D(e)(4)(A)(i) is 
     amended by striking ``$6,667'' and inserting ``$13,334''.
       (c) Credit for Residential Wind Property.--
       (1) In general.--Section 25D(a) (relating to allowance of 
     credit) is amended by striking ``and'' at the end of 
     paragraph (2), by striking the period at the end of paragraph 
     (3) and inserting ``, and'', and by adding at the end the 
     following new paragraph:
       ``(4) 30 percent of the qualified small wind energy 
     property expenditures made by the taxpayer during such 
     year.''.
       (2) Limitation.--Section 25D(b)(1) (relating to maximum 
     credit) is amended by striking ``and'' at the end of 
     subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(D) $500 with respect to each half kilowatt of capacity 
     (not to exceed $4,000) of wind turbines for which qualified 
     small wind energy property expenditures are made.''.
       (3) Qualified small wind energy property expenditures.--
       (A) In general.--Section 25D(d) (relating to definitions) 
     is amended by adding at the end the following new paragraph:
       ``(4) Qualified small wind energy property expenditure.--
     The term `qualified small wind energy property expenditure' 
     means an expenditure for property which uses a wind turbine 
     to generate electricity for use in connection with a dwelling 
     unit located in the United States and used as a residence by 
     the taxpayer.''.
       (B) No double benefit.--Section 45(d)(1) (relating to wind 
     facility) is amended by adding at the end the following new 
     sentence: ``Such term shall not include any facility with 
     respect to which any qualified small wind energy property 
     expenditure (as defined in subsection (d)(4) of section 25D) 
     is taken into account in determining the credit under such 
     section.''.
       (4) Maximum expenditures in case of joint occupancy.--
     Section 25D(e)(4)(A) (relating to maximum expenditures) is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(iv) $1,667 in the case of each half kilowatt of capacity 
     (not to exceed $13,333) of wind turbines for which qualified 
     small wind energy property expenditures are made.''.
       (d) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Subsection (c) of section 25D is amended 
     to read as follows:
       ``(c) Limitation Based on Amount of Tax; Carryforward of 
     Unused Credit.--
       ``(1) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for the taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) and section 27 for the taxable 
     year.
       ``(2) Carryforward of unused credit.--
       ``(A) Rule for years in which all personal credits allowed 
     against regular and alternative minimum tax.--In the case of 
     a taxable year to which section 26(a)(2) applies, if the 
     credit allowable under subsection (a) exceeds the limitation 
     imposed by section 26(a)(2) for such taxable year reduced by 
     the sum of the credits allowable under this subpart (other 
     than this section), such excess shall be carried to the 
     succeeding taxable year and added to the credit allowable 
     under subsection (a) for such succeeding taxable year.
       ``(B) Rule for other years.--In the case of a taxable year 
     to which section 26(a)(2) does not apply, if the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such succeeding 
     taxable year.''.
       (2) Conforming amendments.--
       (A) Section 23(b)(4)(B) is amended by inserting ``and 
     section 25D'' after ``this section''.
       (B) Section 24(b)(3)(B) is amended by striking ``and 25B'' 
     and inserting ``, 25B, and 25D''.
       (C) Section 25B(g)(2) is amended by striking ``section 23'' 
     and inserting ``sections 23 and 25D''.

[[Page 33961]]

       (D) Section 26(a)(1) is amended by striking ``and 25B'' and 
     inserting ``25B, and 25D''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to expenditures after December 31, 2007.
       (2) Allowance against alternative minimum tax.--
       (A) In general.--The amendments made by subsection (d) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
       (B) Application of egtrra sunset.--The amendments made by 
     subparagraphs (A) and (B) of subsection (d)(2) shall be 
     subject to title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 in the same manner as the 
     provisions of such Act to which such amendments relate.

     SEC. 1504. EXTENSION AND MODIFICATION OF SPECIAL RULE TO 
                   IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING 
                   POLICY.

       (a) Extension for Qualified Electric Utilities.--
       (1) In general.--Paragraph (3) of section 451(i) (relating 
     to special rule for sales or dispositions to implement 
     Federal Energy Regulatory Commission or State electric 
     restructuring policy) is amended by inserting ``(before 
     January 1, 2010, in the case of a qualified electric 
     utility)'' after ``January 1, 2008''.
       (2) Qualified electric utility.--Subsection (i) of section 
     451 is amended by redesignating paragraphs (6) through (10) 
     as paragraphs (7) through (11), respectively, and by 
     inserting after paragraph (5) the following new paragraph:
       ``(6) Qualified electric utility.--For purposes of this 
     subsection, the term `qualified electric utility' means a 
     person that, as of the date of the qualifying electric 
     transmission transaction, is vertically integrated, in that 
     it is both--
       ``(A) a transmitting utility (as defined in section 3(23) 
     of the Federal Power Act (16 U.S.C. 796(23)) with respect to 
     the transmission facilities to which the election under this 
     subsection applies, and
       ``(B) an electric utility (as defined in section 3(22) of 
     the Federal Power Act (16 U.S.C. 796(22)).''.
       (b) Extension of Period for Transfer of Operational Control 
     Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is 
     amended by striking ``December 31, 2007'' and inserting ``the 
     date which is 4 years after the close of the taxable year in 
     which the transaction occurs''.
       (c) Property Located Outside the United States Not Treated 
     as Exempt Utility Property.--Paragraph (5) of section 451(i) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) Exception for property located outside the united 
     states.--The term `exempt utility property' shall not include 
     any property which is located outside the United States.''.
       (d) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     apply to transactions after December 31, 2007.
       (2) Transfers of operational control.--The amendment made 
     by subsection (b) shall take effect as if included in section 
     909 of the American Jobs Creation Act of 2004.
       (3) Exception for property located outside the united 
     states.--The amendment made by subsection (c) shall apply to 
     transactions after the date of the enactment of this Act.

     SEC. 1505. NEW CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Part IV of subchapter A of chapter 1 
     (relating to credits against tax) is amended by adding at the 
     end the following new subpart:

                ``Subpart I--Qualified Tax Credit Bonds

``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.

     ``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

       ``(a) Allowance of Credit.--If a taxpayer holds a qualified 
     tax credit bond on one or more credit allowance dates of the 
     bond during any taxable year, there shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of the credits 
     determined under subsection (b) with respect to such dates.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a qualified tax credit bond is 25 percent of the 
     annual credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any qualified tax credit bond is the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate is 70 percent of the rate 
     which the Secretary estimates will permit the issuance of 
     qualified tax credit bonds with a specified maturity or 
     redemption date without discount and without interest cost to 
     the qualified issuer. The applicable credit rate with respect 
     to any qualified tax credit bond shall be determined as of 
     the first day on which there is a binding, written contract 
     for the sale or exchange of the bond.
       ``(4) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed or matures.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than subpart C and this subpart).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year 
     (determined before the application of paragraph (1) for such 
     succeeding taxable year).
       ``(d) Qualified Tax Credit Bond.--For purposes of this 
     section--
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means a new clean renewable energy bond which is 
     part of an issue that meets the requirements of paragraphs 
     (2), (3), (4), (5), and (6).
       ``(2) Special rules relating to expenditures.--
       ``(A) In general.--An issue shall be treated as meeting the 
     requirements of this paragraph if, as of the date of 
     issuance, the issuer reasonably expects--
       ``(i) 100 percent or more of the available project proceeds 
     to be spent for 1 or more qualified purposes within the 3-
     year period beginning on such date of issuance, and
       ``(ii) a binding commitment with a third party to spend at 
     least 10 percent of such available project proceeds will be 
     incurred within the 6-month period beginning on such date of 
     issuance.
       ``(B) Failure to spend required amount of bond proceeds 
     within 3 years.--
       ``(i) In general.--To the extent that less than 100 percent 
     of the available project proceeds of the issue are expended 
     by the close of the expenditure period for 1 or more 
     qualified purposes, the issuer shall redeem all of the 
     nonqualified bonds within 90 days after the end of such 
     period. For purposes of this paragraph, the amount of the 
     nonqualified bonds required to be redeemed shall be 
     determined in the same manner as under section 142.
       ``(ii) Expenditure period.--For purposes of this subpart, 
     the term `expenditure period' means, with respect to any 
     issue, the 3-year period beginning on the date of issuance. 
     Such term shall include any extension of such period under 
     clause (iii).
       ``(iii) Extension of period.--Upon submission of a request 
     prior to the expiration of the expenditure period (determined 
     without regard to any extension under this clause), the 
     Secretary may extend such period if the issuer establishes 
     that the failure to expend the proceeds within the original 
     expenditure period is due to reasonable cause and the 
     expenditures for qualified purposes will continue to proceed 
     with due diligence.
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means a purpose specified in 
     section 54B(a)(1).
       ``(D) Reimbursement.--For purposes of this subtitle, 
     available project proceeds of an issue shall be treated as 
     spent for a qualified purpose if such proceeds are used to 
     reimburse the issuer for amounts paid for a qualified purpose 
     after the date that the Secretary makes an allocation of bond 
     limitation with respect to such issue, but only if--
       ``(i) prior to the payment of the original expenditure, the 
     issuer declared its intent to reimburse such expenditure with 
     the proceeds of a qualified tax credit bond,
       ``(ii) not later than 60 days after payment of the original 
     expenditure, the issuer adopts an official intent to 
     reimburse the original expenditure with such proceeds, and
       ``(iii) the reimbursement is made not later than 18 months 
     after the date the original expenditure is paid.
       ``(3) Reporting.--An issue shall be treated as meeting the 
     requirements of this paragraph if the issuer of qualified tax 
     credit bonds submits reports similar to the reports required 
     under section 149(e).
       ``(4) Special rules relating to arbitrage.--
       ``(A) In general.--An issue shall be treated as meeting the 
     requirements of this paragraph if the issuer satisfies the 
     requirements of section 148 with respect to the proceeds of 
     the issue.
       ``(B) Special rule for investments during expenditure 
     period.--An issue shall not be treated as failing to meet the 
     requirements of subparagraph (A) by reason of any

[[Page 33962]]

     investment of available project proceeds during the 
     expenditure period.
       ``(C) Special rule for reserve funds.--An issue shall not 
     be treated as failing to meet the requirements of 
     subparagraph (A) by reason of any fund which is expected to 
     be used to repay such issue if--
       ``(i) such fund is funded at a rate not more rapid than 
     equal annual installments,
       ``(ii) such fund is funded in a manner reasonably expected 
     to result in an amount not greater than an amount necessary 
     to repay the issue, and
       ``(iii) the yield on such fund is not greater than the 
     discount rate determined under paragraph (5)(B) with respect 
     to the issue.
       ``(5) Maturity limitation.--
       ``(A) In general.--An issue shall be treated as meeting the 
     requirements of this paragraph if the maturity of any bond 
     which is part of such issue does not exceed the maximum term 
     determined by the Secretary under subparagraph (B).
       ``(B) Maximum term.--During each calendar month, the 
     Secretary shall determine the maximum term permitted under 
     this paragraph for bonds issued during the following calendar 
     month. Such maximum term shall be the term which the 
     Secretary estimates will result in the present value of the 
     obligation to repay the principal on the bond being equal to 
     50 percent of the face amount of such bond. Such present 
     value shall be determined using as a discount rate the 
     average annual interest rate of tax-exempt obligations having 
     a term of 10 years or more which are issued during the month. 
     If the term as so determined is not a multiple of a whole 
     year, such term shall be rounded to the next highest whole 
     year.
       ``(6) Prohibition on financial conflicts of interest.--An 
     issue shall be treated as meeting the requirements of this 
     paragraph if the issuer certifies that--
       ``(A) applicable State and local law requirements governing 
     conflicts of interest are satisfied with respect to such 
     issue, and
       ``(B) if the Secretary prescribes additional conflicts of 
     interest rules governing the appropriate Members of Congress, 
     Federal, State, and local officials, and their spouses, such 
     additional rules are satisfied with respect to such issue.
       ``(e) Other Definitions.--For purposes of this subchapter--
       ``(1) Credit allowance date.--The term `credit allowance 
     date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.
     Such term includes the last day on which the bond is 
     outstanding.
       ``(2) Bond.--The term `bond' includes any obligation.
       ``(3) State.--The term `State' includes the District of 
     Columbia and any possession of the United States.
       ``(4) Available project proceeds.--The term `available 
     project proceeds' means--
       ``(A) the excess of--
       ``(i) the proceeds from the sale of an issue, over
       ``(ii) the issuance costs financed by the issue (to the 
     extent that such costs do not exceed 2 percent of such 
     proceeds), and
       ``(B) the proceeds from any investment of the excess 
     described in subparagraph (A).
       ``(f) Credit Treated as Interest.--For purposes of this 
     subtitle, the credit determined under subsection (a) shall be 
     treated as interest which is includible in gross income.
       ``(g) S Corporations and Partnerships.--In the case of a 
     tax credit bond held by an S corporation or partnership, the 
     allocation of the credit allowed by this section to the 
     shareholders of such corporation or partners of such 
     partnership shall be treated as a distribution.
       ``(h) Bonds Held by Regulated Investment Companies and Real 
     Estate Investment Trusts.--If any qualified tax credit bond 
     is held by a regulated investment company or a real estate 
     investment trust, the credit determined under subsection (a) 
     shall be allowed to shareholders of such company or 
     beneficiaries of such trust (and any gross income included 
     under subsection (f) with respect to such credit shall be 
     treated as distributed to such shareholders or beneficiaries) 
     under procedures prescribed by the Secretary.
       ``(i) Credits May Be Stripped.--Under regulations 
     prescribed by the Secretary--
       ``(1) In general.--There may be a separation (including at 
     issuance) of the ownership of a qualified tax credit bond and 
     the entitlement to the credit under this section with respect 
     to such bond. In case of any such separation, the credit 
     under this section shall be allowed to the person who on the 
     credit allowance date holds the instrument evidencing the 
     entitlement to the credit and not to the holder of the bond.
       ``(2) Certain rules to apply.--In the case of a separation 
     described in paragraph (1), the rules of section 1286 shall 
     apply to the qualified tax credit bond as if it were a 
     stripped bond and to the credit under this section as if it 
     were a stripped coupon.

     ``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.

       ``(a) New Clean Renewable Energy Bond.--For purposes of 
     this subpart, the term `new clean renewable energy bond' 
     means any bond issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for capital expenditures incurred by 
     public power providers, governmental bodies, or cooperative 
     electric companies for one or more qualified renewable energy 
     facilities,
       ``(2) the bond is issued by a qualified issuer, and
       ``(3) the issuer designates such bond for purposes of this 
     section.
       ``(b) Limitation on Amount of Bonds Designated.--
       ``(1) In general.--The maximum aggregate face amount of 
     bonds which may be designated under subsection (a) by any 
     issuer shall not exceed the limitation amount allocated under 
     this subsection to such issuer.
       ``(2) National limitation on amount of bonds designated.--
     There is a national new clean renewable energy bond 
     limitation of $2,000,000,000 which shall be allocated by the 
     Secretary as provided in paragraph (3), except that--
       ``(A) not more than 33 \1/3\ percent thereof may be 
     allocated to qualified projects of public power providers,
       ``(B) not more than 33 \1/3\ percent thereof may be 
     allocated to qualified projects of governmental bodies, and
       ``(C) not more than 33 \1/3\ percent thereof may be 
     allocated to qualified projects of cooperative electric 
     companies.
       ``(3) Method of allocation.--
       ``(A) Allocation among public power providers.--After the 
     Secretary determines the qualified projects of public power 
     providers which are appropriate for receiving an allocation 
     of the national new clean renewable energy bond limitation, 
     the Secretary shall, to the maximum extent practicable, make 
     allocations among such projects in such manner that the 
     amount allocated to each such project bears the same ratio to 
     the cost of such project as the limitation under paragraph 
     (2)(A) bears to the cost of all such projects.
       ``(B) Allocation among governmental bodies and cooperative 
     electric companies.--The Secretary shall make allocations of 
     the amount of the national new clean renewable energy bond 
     limitation described in paragraphs (2)(B) and (2)(C) among 
     qualified projects of governmental bodies and cooperative 
     electric companies, respectively, in such manner as the 
     Secretary determines appropriate.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified renewable energy facility.--The term 
     `qualified renewable energy facility' means a qualified 
     facility (as determined under section 45(d) without regard to 
     paragraphs (8) and (10) thereof and to any placed in service 
     date) owned by a public power provider, a governmental body, 
     or a cooperative electric company.
       ``(2) Public power provider.--The term `public power 
     provider' means a State utility with a service obligation, as 
     such terms are defined in section 217 of the Federal Power 
     Act (as in effect on the date of the enactment of this 
     paragraph).
       ``(3) Governmental body.--The term `governmental body' 
     means any State or Indian tribal government, or any political 
     subdivision thereof.
       ``(4) Cooperative electric company.--The term `cooperative 
     electric company' means a mutual or cooperative electric 
     company described in section 501(c)(12) or section 
     1381(a)(2)(C).
       ``(5) Clean renewable energy bond lender.--The term `clean 
     renewable energy bond lender' means a lender which is a 
     cooperative which is owned by, or has outstanding loans to, 
     100 or more cooperative electric companies and is in 
     existence on February 1, 2002, and shall include any 
     affiliated entity which is controlled by such lender.
       ``(6) Qualified issuer.--The term `qualified issuer' means 
     a public power provider, a governmental body, a cooperative 
     electric company, a clean renewable energy bond lender, or a 
     not-for-profit electric utility which has received a loan or 
     loan guarantee under the Rural Electrification Act.''.
       (b) Reporting.--Subsection (d) of section 6049 (relating to 
     returns regarding payments of interest) is amended by adding 
     at the end the following new paragraph:
       ``(9) Reporting of credit on qualified tax credit bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54A and such amounts shall be treated as paid on the 
     credit allowance date (as defined in section 54A(e)(1)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A) of this paragraph, subsection 
     (b)(4) of this section shall be applied without regard to 
     subparagraphs (A), (H), (I), (J), (K), and (L)(i).
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (c) Conforming Amendments.--
       (1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended 
     by striking ``subpart C'' and inserting ``subparts C and I''.

[[Page 33963]]

       (2) Section 1397E(c)(2) is amended by striking ``subpart 
     H'' and inserting ``subparts H and I''.
       (3) Section 6401(b)(1) is amended by striking ``and H'' and 
     inserting ``H, and I''.
       (4) The heading of subpart H of part IV of subchapter A of 
     chapter 1 is amended by striking ``Certain Bonds'' and 
     inserting ``Clean Renewable Energy Bonds''.
       (5) The table of subparts for part IV of subchapter A of 
     chapter 1 is amended by striking the item relating to subpart 
     H and inserting the following new items:

``subpart h. nonrefundable credit to holders of clean renewable energy 
                                 bonds.

              ``subpart i. qualified tax credit bonds.''.

       (d) Effective Dates.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

       PART II--PROVISIONS RELATING TO CARBON MITIGATION AND COAL

     SEC. 1506. EXPANSION AND MODIFICATION OF ADVANCED COAL 
                   PROJECT INVESTMENT CREDIT.

       (a) Modification of Credit Amount.--Section 48A(a) 
     (relating to qualifying advanced coal project credit) is 
     amended by striking ``and'' at the end of paragraph (1), by 
     striking the period at the end of paragraph (2) and inserting 
     ``, and'', and by adding at the end the following the 
     paragraph:
       ``(3) 30 percent of the qualified investment for such 
     taxable year in the case of projects described in clauses 
     (iii) or (iv) of subsection (d)(3)(B).''.
       (b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) 
     (relating to aggregate credits) is amended by striking 
     ``$1,300,000,000'' and inserting ``$2,800,000,000''.
       (c) Authorization of Additional Projects.--
       (1) In general.--Subparagraph (B) of section 48A(d)(3) 
     (relating to aggregate credits) is amended to read as 
     follows:
       ``(B) Particular projects.--Of the dollar amount in 
     subparagraph (A), the Secretary is authorized to certify--
       ``(i) $800,000,000 for integrated gasification combined 
     cycle projects the application for which is submitted during 
     the period described in paragraph (2)(A)(i),
       ``(ii) $500,000,000 for projects which use other advanced 
     coal-based generation technologies the application for which 
     is submitted during the period described in paragraph 
     (2)(A)(i),
       ``(iii) $1,000,000,000 for integrated gasification combined 
     cycle projects the application for which is submitted during 
     the period described in paragraph (2)(A)(ii), and
       ``(iv) $500,000,000 for other advanced coal-based 
     generation technology projects the application for which is 
     submitted during the period described in paragraph 
     (2)(A)(ii).''.
       (2) Application period for additional projects.--
     Subparagraph (A) of section 48A(d)(2) (relating to 
     certification) is amended to read as follows:
       ``(A) Application period.--Each applicant for certification 
     under this paragraph shall submit an application meeting the 
     requirements of subparagraph (B). An applicant may only 
     submit an application--
       ``(i) for an allocation from the dollar amount specified in 
     clause (i) or (ii) of paragraph (3)(A) during the 3-year 
     period beginning on the date the Secretary establishes the 
     program under paragraph (1), and
       ``(ii) for an allocation from the dollar amount specified 
     in clause (iii) or (iv) of paragraph (3)(A) during the 3-year 
     period beginning at the earlier of the termination of the 
     period described in clause (i) or the date prescribed by the 
     Secretary.''.
       (3) Capture and sequestration of carbon dioxide emissions 
     requirement.--
       (A) In general.--Section 48A(e)(1) (relating to 
     requirements) is amended by striking ``and'' at the end of 
     subparagraph (E), by striking the period at the end of 
     subparagraph (F) and inserting ``; and'', and by adding at 
     the end the following new subparagraph:
       ``(G) in the case of any project the application for which 
     is submitted during the period described in subsection 
     (d)(2)(A)(ii), the project includes equipment which separates 
     and sequesters at least 65 percent (70 percent in the case of 
     an application for reallocated credits under subsection 
     (d)(4)) of such project's total carbon dioxide emissions.''.
       (B) Highest priority for projects which sequester carbon 
     dioxide emissions.--Section 48A(e)(3) is amended by striking 
     ``and'' at the end of subparagraph (A)(iii), by striking the 
     period at the end of subparagraph (B)(3) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(C) give highest priority to projects with the greatest 
     separation and sequestration percentage of total carbon 
     dioxide emissions.''.
       (C) Recapture of credit for failure to sequester.--Section 
     48A (relating to qualifying advanced coal project credit) is 
     amended by adding at the end the following new subsection:
       ``(h) Recapture of Credit for Failure to Sequester.--The 
     Secretary shall provide for recapturing the benefit of any 
     credit allowable under subsection (a) with respect to any 
     project which fails to attain or maintain the separation and 
     sequestration requirements of subsection (e)(1)(G).''.
       (4) Additional priority for research partnerships.--Section 
     48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
       (A) by striking ``and'' at the end of clause (ii),
       (B) by redesignating clause (iii) as clause (iv), and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) applicant participants who have a research 
     partnership with an eligible educational institution (as 
     defined in section 529(e)(5)), and''.
       (5) Clerical amendment.--Section 48A(e)(3) is amended by 
     striking ``integrated gasification combined cycle'' in the 
     heading and inserting ``certain''.
       (d) Competitive Certification Awards Modification 
     Authority.--Section 48A (relating to qualifying advanced coal 
     project credit), as amended by subsection (c)(3), is amended 
     by adding at the end the following new subsection:
       ``(i) Competitive Certification Awards Modification 
     Authority.--In implementing this section or section 48B, the 
     Secretary is directed to modify the terms of any competitive 
     certification award and any associated closing agreement 
     where such modification--
       ``(1) is consistent with the objectives of such section,
       ``(2) is requested by the recipient of the competitive 
     certification award, and
       ``(3) involves moving the project site to improve the 
     potential to capture and sequester carbon dioxide emissions, 
     reduce costs of transporting feedstock, and serve a broader 
     customer base,

     unless the Secretary determines that the dollar amount of tax 
     credits available to the taxpayer under such section would 
     increase as a result of the modification or such modification 
     would result in such project not being originally certified. 
     In considering any such modification, the Secretary shall 
     consult with other relevant Federal agencies, including the 
     Department of Energy.''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to credits the application for which is submitted during the 
     period described in section 48A(d)(2)(A)(ii) of the Internal 
     Revenue Code of 1986 and which are allocated or reallocated 
     after the date of the enactment of this Act.
       (2) Competitive certification awards modification 
     authority.--The amendment made by subsection (d) shall take 
     effect on the date of the enactment of this Act and is 
     applicable to all competitive certification awards entered 
     into under section 48A or 48B of the Internal Revenue Code of 
     1986, whether such awards were issued before, on, or after 
     such date of enactment.
       (3) Technical amendment.--The amendment made by subsection 
     (c)(5) shall take effect as if included in the amendment made 
     by section 1307(b) of the Energy Tax Incentives Act of 2005.

     SEC. 1507. EXPANSION AND MODIFICATION OF COAL GASIFICATION 
                   INVESTMENT CREDIT.

       (a) Credit Rate.--Section 48B(a) (relating to qualifying 
     gasification project credit) is amended by inserting ``(30 
     percent in the case of credits allocated under subsection 
     (d)(1)(B))'' after ``20 percent''.
       (b) Expansion of Aggregate Credits.--Section 48B(d)(1) 
     (relating to qualifying gasification project program) is 
     amended by striking ``shall not exceed $350,000,000'' and all 
     that follows and inserting ``shall not exceed--
       ``(A) $350,000,000, plus
       ``(B) $500,000,000 for qualifying gasification projects 
     that include equipment which separates and sequesters at 
     least 75 percent of such a project's total carbon dioxide 
     emissions,

     under rules similar to the rules of section 48A(d)(4).''.
       (c) Recapture of Credit for Failure To Sequester.--Section 
     48B (relating to qualifying gasification project credit) is 
     amended by adding at the end the following new subsection:
       ``(f) Recapture of Credit for Failure To Sequester.--The 
     Secretary shall provide for recapturing the benefit of any 
     credit allowable under subsection (a) with respect to any 
     project which fails to attain or maintain the separation and 
     sequestration requirements for such project under subsection 
     (d)(1).''.
       (d) Selection Priorities.--Section 48B(d) (relating to 
     qualifying gasification project program) is amended by adding 
     at the end the following new paragraph:
       ``(4) Selection priorities.--In determining which 
     qualifying gasification projects to certify under this 
     section, the Secretary shall--
       ``(A) give highest priority to projects with the greatest 
     separation and sequestration percentage of total carbon 
     dioxide emissions, and
       ``(B) give high priority to applicant participants who have 
     a research partnership with an eligible educational 
     institution (as defined in section 529(e)(5)).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to credits described in section 48B(d)(1)(B) of 
     the Internal Revenue Code of 1986 which are allocated or 
     reallocated after the date of the enactment of this Act.

[[Page 33964]]



     SEC. 1508. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR 
                   DEPRECIATION OF QUALIFIED CARBON DIOXIDE 
                   PIPELINE PROPERTY.

       (a) In General.--Section 168(e)(3)(C) (defining 7-year 
     property) is amended by striking ``and'' at the end of clause 
     (iv), by redesignating clause (v) as clause (vi), and by 
     inserting after clause (iv) the following new clause:
       ``(v) any qualified carbon dioxide pipeline property--

       ``(I) the original use of which commences with the taxpayer 
     after the date of the enactment of this clause,
       ``(II) the original purpose of which is to transport carbon 
     dioxide, and
       ``(III) which is placed in service before January 1, 2011, 
     and''.

       (b) Definition of Qualified Carbon Dioxide Pipeline 
     Property.--Section 168(e) (relating to classification of 
     property) is amended by inserting at the end the following 
     new paragraph:
       ``(8) Qualified carbon dioxide pipeline property.--
       ``(A) In general.--The term `qualified carbon dioxide 
     pipeline property' means property which is used in the United 
     States solely to transmit qualified carbon dioxide from the 
     point of capture to a secure geological storage or the point 
     at which such qualified carbon dioxide is used as a tertiary 
     injectant.
       ``(B) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Qualified carbon dioxide.--The term `qualified carbon 
     dioxide' means carbon dioxide captured from an industrial 
     source which--

       ``(I) would otherwise be released into the atmosphere as 
     industrial emission of greenhouse gas, and
       ``(II) is measured at the source of capture and verified at 
     the point of disposal or injection.

       ``(ii) Secure geological storage.--The Secretary, in 
     consultation with the Secretary of the Interior, the 
     Secretary of Energy, and the Administrator of the 
     Environmental Protection Agency, shall establish regulations 
     for determining adequate security measures for the geological 
     storage of carbon dioxide under subparagraph (A) such that 
     the carbon dioxide does not escape into the atmosphere. Such 
     term shall include storage at deep saline formations and 
     unminable coal seems under such conditions as the Secretary 
     may determine under such regulations.
       ``(iii) Tertiary injectant.--The term `tertiary injectant' 
     has the same meaning as when used within section 
     193(b)(1).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 1509. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO 
                   CERTAIN COAL PRODUCERS AND EXPORTERS.

       (a) Refund.--
       (1) Coal producers.--
       (A) In general.--Notwithstanding subsections (a)(1) and (c) 
     of section 6416 and section 6511 of the Internal Revenue Code 
     of 1986, if--
       (i) a coal producer establishes that such coal producer, or 
     a party related to such coal producer, exported coal produced 
     by such coal producer to a foreign country or shipped coal 
     produced by such coal producer to a possession of the United 
     States, or caused such coal to be exported or shipped, the 
     export or shipment of which was other than through an 
     exporter who meets the requirements of paragraph (2),
       (ii) such coal producer filed a tax return on or after 
     October 1, 1990, and on or before the date of the enactment 
     of this Act, and
       (iii) such coal producer files a claim for refund with the 
     Secretary not later than the close of the 30-day period 
     beginning on the date of the enactment of this Act,

     then the Secretary shall pay to such coal producer an amount 
     equal to the tax paid under section 4121 of such Code on such 
     coal exported or shipped by the coal producer or a party 
     related to such coal producer, or caused by the coal producer 
     or a party related to such coal producer to be exported or 
     shipped.
       (B) Special rules for certain taxpayers.--For purposes of 
     this section--
       (i) In general.--If a coal producer or a party related to a 
     coal producer has received a judgment described in clause 
     (iii) and has provided evidence as provided under clause 
     (iv), such coal producer shall be deemed to have established 
     the export of coal to a foreign country or shipment of coal 
     to a possession of the United States under subparagraph 
     (A)(i).
       (ii) Amount of payment.--If a taxpayer described in clause 
     (i) is entitled to a payment under subparagraph (A), the 
     amount of such payment shall be reduced by any amount paid 
     pursuant to the judgment described in clause (iii).
       (iii) Judgment described.--A judgment is described in this 
     subparagraph if such judgment--

       (I) is made by a court of competent jurisdiction within the 
     United States,
       (II) relates to the constitutionality of any tax paid on 
     exported coal under section 4121 of the Internal Revenue Code 
     of 1986, and
       (III) is in favor of the coal producer or the party related 
     to the coal producer.

       (iv) Establishment of export.--For purposes of this 
     section, the Secretary shall accept as proof of export or 
     shipment from a coal producer, at the discretion of the coal 
     producer, either--

       (I) a copy or the original of a judgment described in 
     clause (iii) regardless of whether it is subsequently 
     overturned, which shall be deemed to establish the export of 
     coal covered by the judgment, or
       (II) a copy or the original of any one of 1 the following: 
     a bill of lading, a commercial invoice, or a shipper's export 
     declaration evidencing that such coal was exported or 
     shipped, or caused to be exported or shipped.

       (v) Recapture.--In the case any judgment described in 
     clause (iii) is overturned, the coal producer shall pay to 
     the Secretary the amount of any payment received under 
     subparagraph (A) unless the coal producer establishes the 
     export of the coal to a foreign country or shipment of coal 
     to a possession of the United States.
       (2) Exporters.--
       (A) In general.--Notwithstanding subsections (a)(1) and (c) 
     of section 6416 and section 6511 of the Internal Revenue Code 
     of 1986, and a judgment described in paragraph (1)(B)(iii) of 
     this subsection, if--
       (i) an exporter establishes that such exporter exported 
     coal to a foreign country or shipped coal to a possession of 
     the United States, or caused such coal to be so exported or 
     shipped,
       (ii) such exporter filed a tax return on or after October 
     1, 1990, and on or before the date of the enactment of this 
     Act, and
       (iii) such exporter files a claim for refund with the 
     Secretary not later than the close of the 30-day period 
     beginning on the date of the enactment of this Act,

     then the Secretary shall pay to such exporter an amount equal 
     to $0.825 per ton of such coal exported by the exporter or 
     caused to be exported or shipped, or caused to be exported or 
     shipped, by the exporter.
       (B) Establishment of export.--For purposes of this section, 
     the Secretary shall accept as proof of export or shipment 
     from a coal exporter a copy or the original of any 1 of the 
     following: a copy or the original of any one of 1 the 
     following: a bill of lading, a commercial invoice, or a 
     shipper's export declaration evidencing that such coal was 
     exported or shipped, or caused to be exported or shipped.
       (b) Limitations.--Subsection (a) shall not apply with 
     respect to exported coal if a settlement with the Federal 
     Government has been made with and accepted by, the coal 
     producer, a party related to such coal producer, or the 
     exporter, of such coal, as of the date that the claim is 
     filed under this section with respect to such exported coal. 
     For purposes of this subsection, the term ``settlement with 
     the Federal Government'' shall not include any settlement or 
     stipulation entered into as of the date of the enactment of 
     this Act, the terms of which contemplate a judgment 
     concerning which any party has reserved the right to file an 
     appeal, or has filed an appeal.
       (c) Subsequent Refund Prohibited.--No refund shall be made 
     under this section to the extent that a credit or refund of 
     such tax on such exported or shipped coal has been paid to 
     any person.
       (d) Definitions.--For purposes of this section--
       (1) Coal producer.--The term ``coal producer'' means the 
     person in whom is vested ownership of the coal immediately 
     after the coal is severed from the ground, without regard to 
     the existence of any contractual arrangement for the sale or 
     other disposition of the coal or the payment of any royalties 
     between the producer and third parties. The term includes any 
     person who extracts coal from coal waste refuse piles or from 
     the silt waste product which results from the wet washing (or 
     similar processing) of coal.
       (2) Exporter.--The term ``exporter'' means a person, other 
     than a coal producer, who does not have a contract, fee 
     arrangement, or any other agreement with a producer or seller 
     of such coal to export or ship such coal to a third party on 
     behalf of the producer or seller of such coal and--
       (A) is indicated in the shipper's export declaration or 
     other documentation as the exporter of record, or
       (B) actually exported such coal to a foreign country or 
     shipped such coal to a possession of the United States, or 
     caused such coal to be so exported or shipped.
       (3) Related party.--The term ``a party related to such coal 
     producer'' means a person who--
       (A) is related to such coal producer through any degree of 
     common management, stock ownership, or voting control,
       (B) is related (within the meaning of section 144(a)(3) of 
     such Code) to such coal producer, or
       (C) has a contract, fee arrangement, or any other agreement 
     with such coal producer to sell such coal to a third party on 
     behalf of such coal producer.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Treasury or the Secretary's designee.
       (e) Timing of Refund.--With respect to any claim for refund 
     filed pursuant to this section, the Secretary shall determine 
     whether the requirements of this section are

[[Page 33965]]

     met not later than 180 days after such claim is filed. If the 
     Secretary determines that the requirements of this section 
     are met, the claim for refund shall be paid not later than 
     180 days after the Secretary makes such determination.
       (f) Interest.--Any refund paid pursuant to this section 
     shall be paid by the Secretary with interest from the date of 
     overpayment determined by using the overpayment rate and 
     method under section 6621 of such Code.
       (g) Denial of Double Benefit.--The payment under subsection 
     (a) with respect to any coal shall not exceed--
       (1) in the case of a payment to a coal producer, the amount 
     of tax paid under section 4121 of the Internal Revenue Code 
     of 1986 with respect to such coal by such coal producer or a 
     party related to such coal producer, and
       (2) in the case of a payment to an exporter, an amount 
     equal to $0.825 per ton with respect to such coal exported by 
     the exporter or caused to be exported by the exporter.
       (h) Application of Section.--This section applies only to 
     claims on coal exported or shipped on or after October 1, 
     1990, through the date of the enactment of this Act.
       (i) Standing Not Conferred.--
       (1) Exporters.--With respect to exporters, this section 
     shall not confer standing upon an exporter to commence, or 
     intervene in, any judicial or administrative proceeding 
     concerning a claim for refund by a coal producer of any 
     Federal or State tax, fee, or royalty paid by the coal 
     producer.
       (2) Coal producers.--With respect to coal producers, this 
     section shall not confer standing upon a coal producer to 
     commence, or intervene in, any judicial or administrative 
     proceeding concerning a claim for refund by an exporter of 
     any Federal or State tax, fee, or royalty paid by the 
     producer and alleged to have been passed on to an exporter.

     SEC. 1510. EXTENSION OF TEMPORARY INCREASE IN COAL EXCISE 
                   TAX.

       Paragraph (2) of section 4121(e) (relating to temporary 
     increase termination date) is amended--
       (1) by striking ``January 1, 2014'' in clause (i) and 
     inserting ``December 31, 2017'', and
       (2) by striking ``January 1 after 1981'' in clause (ii) and 
     inserting ``December 31 after 2007''.

     SEC. 1511. CARBON AUDIT OF THE TAX CODE.

       (a) Study.--The Secretary of the Treasury shall enter into 
     an agreement with the National Academy of Sciences to 
     undertake a comprehensive review of the Internal Revenue Code 
     of 1986 to identify the types of and specific tax provisions 
     that have the largest effects on carbon and other greenhouse 
     gas emissions and to estimate the magnitude of those effects.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the National Academy of Sciences shall 
     submit to Congress a report containing the results of study 
     authorized under this section.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,500,000 for 
     the period of fiscal years 2008 and 2009.

         Subtitle B--Transportation and Domestic Fuel Security

                            PART I--BIOFUELS

     SEC. 1521. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS 
                   ALCOHOL.

       (a) In General.--Subsection (a) of section 40 (relating to 
     alcohol used as fuel) is amended by striking ``plus'' at the 
     end of paragraph (2), by striking the period at the end of 
     paragraph (3) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(4) the cellulosic alcohol producer credit.''.
       (b) Cellulosic Alcohol Producer Credit.--
       (1) In general.--Subsection (b) of section 40 is amended by 
     redesignating paragraph (5) as paragraph (6) and by inserting 
     after paragraph (4) the following new paragraph:
       ``(5) Cellulosic alcohol producer credit.--
       ``(A) In general.--The cellulosic alcohol producer credit 
     for the taxable year is an amount equal to the applicable 
     amount for each gallon of qualified cellulosic alcohol 
     production.
       ``(B) Applicable amount.--For purposes of subparagraph (A), 
     the applicable amount means the excess of--
       ``(i) $1.01, over
       ``(ii) the amount of the credit in effect for alcohol which 
     is ethanol under subsection (b)(1) (without regard to 
     subsection (b)(3)) at the time of the qualified cellulosic 
     alcohol production.
       ``(C) Limitation.--
       ``(i) In general.--No credit shall be allowed to any 
     taxpayer under subparagraph (A) with respect to any qualified 
     cellulosic alcohol production during the taxable year in 
     excess of 60,000,000 gallons.
       ``(ii) Aggregation rule.--For purposes of clause (i), all 
     members of the same controlled group of corporations (within 
     the meaning of section 267(f)) and all persons under common 
     control (within the meaning of section 52(b) but determined 
     by treating an interest of more than 50 percent as a 
     controlling interest) shall be treated as 1 person.
       ``(iii) Partnership, s corporations, and other pass-thru 
     entities.--In the case of a partnership, trust, S 
     corporation, or other pass-thru entity, the limitation 
     contained in clause (i) shall be applied at the entity level 
     and at the partner or similar level.
       ``(D) Qualified cellulosic alcohol production.--For 
     purposes of this section, the term `qualified cellulosic 
     alcohol production' means any cellulosic biomass alcohol 
     which is produced by the taxpayer and which during the 
     taxable year--
       ``(i) is sold by the taxpayer to another person--

       ``(I) for use by such other person in the production of a 
     qualified alcohol mixture in such other person's trade or 
     business (other than casual off-farm production),
       ``(II) for use by such other person as a fuel in a trade or 
     business, or
       ``(III) who sells such cellulosic biomass alcohol at retail 
     to another person and places such cellulosic biomass alcohol 
     in the fuel tank of such other person, or

       ``(ii) is used or sold by the taxpayer for any purpose 
     described in clause (i).

     The qualified cellulosic alcohol production of any taxpayer 
     for any taxable year shall not include any alcohol which is 
     purchased by the taxpayer and with respect to which such 
     producer increases the proof of the alcohol by additional 
     distillation.
       ``(E) Cellulosic biomass alcohol.--
       ``(i) In general.--The term `cellulosic biomass alcohol' 
     has the meaning given such term under section 168(l)(3), but 
     does not include any alcohol with a proof of less than 150.
       ``(ii) Determination of proof.--The determination of the 
     proof of any alcohol shall be made without regard to any 
     added denaturants.
       ``(F) Coordination with small ethanol producer credit.--No 
     small ethanol producer credit shall be allowed with respect 
     to any qualified cellulosic alcohol production if credit is 
     determined with respect to such production under this 
     paragraph.
       ``(G) Allocation of cellulosic producer credit to patrons 
     of cooperative.--Rules similar to the rules under subsection 
     (g)(6) shall apply for purposes of this paragraph.
       ``(H) Application of paragraph.--This paragraph shall apply 
     with respect to qualified cellulosic alcohol production after 
     December 31, 2007, and before January 1, 2014.''.
       (2) Termination date not to apply.--Subsection (e) of 
     section 40 (relating to termination) is amended--
       (A) by inserting ``or subsection (b)(5)(H)'' after ``by 
     reason of paragraph (1)'' in paragraph (2), and
       (B) by adding at the end the following new paragraph:
       ``(3) Exception for cellulosic alcohol producer credit.--
     Paragraph (1) shall not apply to the portion of the credit 
     allowed under this section by reason of subsection (a)(4).''.
       (c) Alcohol Not Used as a Fuel, etc.--
       (1) In general.--Paragraph (3) of section 40(d) is amended 
     by redesignating subparagraph (D) as subparagraph (E) and by 
     inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) Cellulosic alcohol producer credit.--If--
       ``(i) any credit is determined under subsection (a)(4), and
       ``(ii) any person does not use such fuel for a purpose 
     described in subsection (b)(5)(D),
     then there is hereby imposed on such person a tax equal to 
     the applicable amount for each gallon of such cellulosic 
     biomass alcohol.''.
       (2) Conforming amendments.--
       (A) Subparagraph (C) of section 40(d)(3) is amended by 
     striking ``producer'' in the heading and inserting ``small 
     ethanol producer''.
       (B) Subparagraph (E) of section 40(d)(3), as redesignated 
     by paragraph (1), is amended by striking ``or (C)'' and 
     inserting ``(C), or (D)''.
       (d) Limitation to Cellulosic Alcohol With Connection to the 
     United States.--Subsection (d) of section 40, as amended by 
     this Act, is amended by adding at the end the following new 
     paragraph:
       ``(7) Limitation to cellulosic alcohol with connection to 
     the united states.--No cellulosic alcohol producer credit 
     shall be determined under subsection (a) with respect to any 
     alcohol unless such alcohol is produced in the United 
     States.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to fuel produced after December 31, 2007.

     SEC. 1522. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC 
                   BIOMASS ALCOHOL FUEL PLANT PROPERTY.

       (a) In General.--Paragraph (3) of section 168(l) (relating 
     to special allowance for cellulosic biomass ethanol plant 
     property) is amended to read as follows:
       ``(3) Cellulosic biomass alcohol.--For purposes of this 
     subsection, the term `cellulosic biomass alcohol' means any 
     alcohol produced from any lignocellulosic or hemicellulosic 
     matter that is available on a renewable or recurring 
     basis.''.
       (b) Conforming Amendments.--
       (1) Subsection (l) of section 168 is amended by striking 
     ``cellulosic biomass ethanol'' each place it appears and 
     inserting ``cellulosic biomass alcohol''.
       (2) The heading of section 168(l) is amended by striking 
     ``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic 
     Biomass Alcohol''.

[[Page 33966]]

       (3) The heading of paragraph (2) of section 168(l) is 
     amended by striking ``cellulosic biomass ethanol'' and 
     inserting ``cellulosic biomass alcohol''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 1523. MODIFICATION OF ALCOHOL CREDIT.

       (a) Income Tax Credit.--Subsection (h) of section 40 
     (relating to reduced credit for ethanol blenders) is amended 
     by adding at the end the following new paragraph:
       ``(3) Reduced amount after sale of 7,500,000,000 gallons.--
       ``(A) In general.--In the case of any calendar year 
     beginning after the calendar year described in subparagraph 
     (B), the last row in the table in paragraph (2) shall be 
     applied by substituting `46 cents' for `51 cents'.
       ``(B) Calendar year described.--The calendar year described 
     in this subparagraph is the first calendar year beginning 
     after 2007 during which 7,500,000,000 gallons of ethanol 
     (including cellulosic ethanol) have been produced in or 
     imported into the United States, as certified by the 
     Secretary, in consultation with the Administrator of the 
     Environmental Protection Agency.''.
       (b) Excise Tax Credit.--
       (1) In general.--Paragraph (2) of section 6426(b) (relating 
     to alcohol fuel mixture credit) is amended by adding at the 
     end the following new subparagraph:
       ``(C) Reduced amount after sale of 7,500,000,000 gallons.--
     In the case of any alcohol fuel mixture produced in a 
     calendar year beginning after the calendar year described in 
     section 40(h)(3)(B), subparagraph (A) shall be applied by 
     substituting `46 cents' for `51 cents'.''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     6426(b)(2) is amended by striking ``subparagraph (B)'' and 
     inserting ``subparagraphs (B) and (C)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 1524. EXTENSION AND MODIFICATION OF CREDITS FOR 
                   BIODIESEL AND RENEWABLE DIESEL.

       (a) In General.--Sections 40A(g), 6426(c)(6), and 
     6427(e)(5)(B) are each amended by striking ``December 31, 
     2008'' and inserting ``December 31, 2010''.
       (b) Uniform Treatment of Diesel Produced From Biomass.--
     Paragraph (3) of section 40A(f) is amended--
       (1) by striking ``using a thermal depolymerization 
     process'', and
       (2) by striking ``or D396'' in subparagraph (B) and 
     inserting ``or other equivalent standard approved by the 
     Secretary for fuels to be used in diesel-powered highway 
     vehicles''.
       (c) Eligibility of Certain Aviation Fuel.--Paragraph (3) of 
     section 40A(f) (defining renewable diesel) is amended by 
     adding at the end the following new flush sentence:
     ``The term `renewable diesel' also means fuel derived from 
     biomass which meets the requirements of a Department of 
     Defense specification for military jet fuel or an American 
     Society of Testing and Materials specification for aviation 
     turbine fuel.''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to fuel produced, 
     and sold or used, after the date of the enactment of this 
     Act.
       (2) Uniform treatment of diesel produced from biomass.--The 
     amendments made by subsection (b) shall apply to fuel 
     produced, and sold or used, after the date which is 30 days 
     after the date of the enactment of this Act.

     SEC. 1525. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL 
                   CREDIT.

       (a) Coproduction With Petroleum Feedstock.--
       (1) In general.--Paragraph (3) of section 40A(f) (defining 
     renewable diesel), as amended by this Act, is amended by 
     adding at the end the following sentence: ``Such term does 
     not include any fuel derived from coprocessing biomass with a 
     feedstock which is not biomass. For purposes of this 
     paragraph, the term `biomass' has the meaning given such term 
     by section 45K(c)(3).''
       (2) Conforming amendment.--Paragraph (3) of section 40A(f) 
     is amended by striking ``(as defined in section 45K(c)(3))''.
       (b) Clarification of Eligibility for Alternative Fuel 
     Credit.--
       (1) In general.--Subparagraph (F) of section 6426(d)(2) is 
     amended by striking ``hydrocarbons'' and inserting ``fuel''.
       (2) Conforming amendment.--Section 6426 is amended by 
     adding at the end the following new subsection:
       ``(h) Denial of Double Benefit.--No credit shall be 
     determined under subsection (d) or (e) with respect to any 
     fuel with respect to which credit may be determined under 
     subsection (b) or (c) or under section 40 or 40A.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to fuel produced, 
     and sold or used, after December 31, 2007.
       (2) Clarification of eligibility for alternative fuel 
     credit.--The amendment made by subsection (b) shall take 
     effect as if included in section 11113 of the Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users.

     SEC. 1526. PROVISIONS CLARIFYING TREATMENT OF FUELS WITH NO 
                   NEXUS TO THE UNITED STATES.

       (a) Alcohol Fuels Credit.--Subsection (d) of section 40 is 
     amended by adding at the end the following new paragraph:
       ``(6) Limitation to alcohol with connection to the united 
     states.--No credit shall be determined under this section 
     with respect to any alcohol which is produced outside the 
     United States for use as a fuel outside the United States. 
     For purposes of this paragraph, the term `United States' 
     includes any possession of the United States.''.
       (b) Biodiesel Fuels Credit.--Subsection (d) of section 40A 
     is amended by adding at the end the following new paragraph:
       ``(5) Limitation to biodiesel with connection to the united 
     states.--No credit shall be determined under this section 
     with respect to any biodiesel which is produced outside the 
     United States for use as a fuel outside the United States. 
     For purposes of this paragraph, the term `United States' 
     includes any possession of the United States.''.
       (c) Excise Tax Credit.--
       (1) In general.--Section 6426, as amended by this Act, is 
     amended by adding at the end the following new subsection:
       ``(i) Limitation to Fuels With Connection to the United 
     States.--
       ``(1) Alcohol.--No credit shall be determined under this 
     section with respect to any alcohol which is produced outside 
     the United States for use as a fuel outside the United 
     States.
       ``(2) Biodiesel and alternative fuels.--No credit shall be 
     determined under this section with respect to any biodiesel 
     or alternative fuel which is produced outside the United 
     States for use as a fuel outside the United States.

     For purposes of this subsection, the term `United States' 
     includes any possession of the United States.''.
       (2) Conforming amendment.--Subsection (e) of section 6427 
     is amended by redesignating paragraph (5) as paragraph (6) 
     and by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Limitation to fuels with connection to the united 
     states.--No amount shall be payable under paragraph (1) or 
     (2) with respect to any mixture or alternative fuel if credit 
     is not allowed with respect to such mixture or alternative 
     fuel by reason of section 6426(i).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after the date of the 
     enactment of this Act.

     SEC. 1527. COMPREHENSIVE STUDY OF BIOFUELS.

       (a) Study.--The Secretary of the Treasury, in consultation 
     with the Secretary of Agriculture, the Secretary of Energy, 
     and the Administrator of the Environmental Protection Agency, 
     shall enter into an agreement with the National Academy of 
     Sciences to produce an analysis of current scientific 
     findings to determine--
       (1) current biofuels production, as well as projections for 
     future production,
       (2) the maximum amount of biofuels production capable on 
     United States farmland,
       (3) the domestic effects of a dramatic increase in biofuels 
     production on, for example--
       (A) the price of fuel,
       (B) the price of land in rural and suburban communities,
       (C) crop acreage and other land use,
       (D) the environment, due to changes in crop acreage, 
     fertilizer use, runoff, water use, emissions from vehicles 
     utilizing biofuels, and other factors,
       (E) the price of feed,
       (F) the selling price of grain crops,
       (G) exports and imports of grains,
       (H) taxpayers, through cost or savings to commodity crop 
     payments, and
       (I) the expansion of refinery capacity,
       (4) the ability to convert corn ethanol plants for other 
     uses, such as cellulosic ethanol or biodiesel,
       (5) a comparative analysis of corn ethanol versus other 
     biofuels and renewable energy sources, considering cost, 
     energy output, and ease of implementation, and
       (6) the need for additional scientific inquiry, and 
     specific areas of interest for future research.
       (b) Report.--The National Academy of Sciences shall submit 
     an initial report of the findings of the report required 
     under subsection (a) to the Congress not later than 3 months 
     after the date of the enactment of this Act, and a final 
     report not later than 6 months after such date of enactment.

              PART II--ADVANCED TECHNOLOGY MOTOR VEHICLES

     SEC. 1528. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
                   MOTOR VEHICLES.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to other credits) is amended by adding at 
     the end the following new section:

     ``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
                   VEHICLES.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of the credit amounts 
     determined under subsection (b) with respect to each new 
     qualified plug-in electric drive motor vehicle placed in 
     service by the taxpayer during the taxable year.

[[Page 33967]]

       ``(b) Per Vehicle Dollar Limitation.--
       ``(1) In general.--The amount determined under this 
     subsection with respect to any new qualified plug-in electric 
     drive motor vehicle is the sum of the amounts determined 
     under paragraphs (2) and (3) with respect to such vehicle.
       ``(2) Base amount.--The amount determined under this 
     paragraph is $3,000.
       ``(3) Battery capacity.--In the case of a vehicle which 
     draws propulsion energy from a battery with not less than 5 
     kilowatt hours of capacity, the amount determined under this 
     paragraph is $200, plus $200 for each kilowatt hour of 
     capacity in excess of 5 kilowatt hours. The amount determined 
     under this paragraph shall not exceed $2,000.
       ``(c) Application With Other Credits.--
       ``(1) Business credit treated as part of general business 
     credit.--So much of the credit which would be allowed under 
     subsection (a) for any taxable year (determined without 
     regard to this subsection) that is attributable to property 
     of a character subject to an allowance for depreciation shall 
     be treated as a credit listed in section 38(b) for such 
     taxable year (and not allowed under subsection (a)).
       ``(2) Personal credit.--
       ``(A) In general.--For purposes of this title, the credit 
     allowed under subsection (a) for any taxable year (determined 
     after application of paragraph (1)) shall be treated as a 
     credit allowable under subpart A for such taxable year.
       ``(B) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall not 
     exceed the excess of--
       ``(i) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(ii) the sum of the credits allowable under subpart A 
     (other than this section and sections 23 and 25D) and section 
     27 for the taxable year.
       ``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--
     For purposes of this section--
       ``(1) In general.--The term `new qualified plug-in electric 
     drive motor vehicle' means a motor vehicle (as defined in 
     section 30(c)(2))--
       ``(A) the original use of which commences with the 
     taxpayer,
       ``(B) which is acquired for use or lease by the taxpayer 
     and not for resale,
       ``(C) which is made by a manufacturer,
       ``(D) which has a gross vehicle weight rating of less than 
     14,000 pounds,
       ``(E) which has received a certificate of conformity under 
     the Clean Air Act and meets or exceeds the Bin 5 Tier II 
     emission standard established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle, and
       ``(F) which is propelled to a significant extent by an 
     electric motor which draws electricity from a battery which--
       ``(i) has a capacity of not less than 4 kilowatt hours, and
       ``(ii) is capable of being recharged from an external 
     source of electricity.
       ``(2) Exception.--The term `new qualified plug-in electric 
     drive motor vehicle' shall not include any vehicle which is 
     not a passenger automobile or light truck if such vehicle has 
     a gross vehicle weight rating of less than 8,500 pounds.
       ``(3) Other terms.--The terms `passenger automobile', 
     `light truck', and `manufacturer' have the meanings given 
     such terms in regulations prescribed by the Administrator of 
     the Environmental Protection Agency for purposes of the 
     administration of title II of the Clean Air Act (42 U.S.C. 
     7521 et seq.).
       ``(4) Battery capacity.--The term `capacity' means, with 
     respect to any battery, the quantity of electricity which the 
     battery is capable of storing, expressed in kilowatt hours, 
     as measured from a 100 percent state of charge to a 0 percent 
     state of charge.
       ``(e) Limitation on Number of New Qualified Plug-in 
     Electric Drive Motor Vehicles Eligible for Credit.--
       ``(1) In general.--In the case of a new qualified plug-in 
     electric drive motor vehicle sold during the phaseout period, 
     only the applicable percentage of the credit otherwise 
     allowable under subsection (a) shall be allowed.
       ``(2) Phaseout period.--For purposes of this subsection, 
     the phaseout period is the period beginning with the second 
     calendar quarter following the calendar quarter which 
     includes the first date on which the number of new qualified 
     plug-in electric drive motor vehicles manufactured by the 
     manufacturer of the vehicle referred to in paragraph (1) sold 
     for use in the United States after the date of the enactment 
     of this section, is at least 60,000.
       ``(3) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 50 percent for the first 2 calendar quarters of the 
     phaseout period,
       ``(B) 25 percent for the 3d and 4th calendar quarters of 
     the phaseout period, and
       ``(C) 0 percent for each calendar quarter thereafter.
       ``(4) Controlled groups.--Rules similar to the rules of 
     section 30B(f)(4) shall apply for purposes of this 
     subsection.
       ``(f) Special Rules.--
       ``(1) Basis reduction.--The basis of any property for which 
     a credit is allowable under subsection (a) shall be reduced 
     by the amount of such credit (determined without regard to 
     subsection (c)).
       ``(2) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit.
       ``(3) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed under subsection (a) 
     with respect to any property referred to in section 50(b)(1) 
     or with respect to the portion of the cost of any property 
     taken into account under section 179.
       ``(4) Election not to take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects to not have this section apply to such vehicle.
       ``(5) Property used by tax-exempt entity; interaction with 
     air quality and motor vehicle safety standards.--Rules 
     similar to the rules of paragraphs (6) and (10) of section 
     30B(h) shall apply for purposes of this section.''.
       (b) Coordination With Alternative Motor Vehicle Credit.--
     Section 30B(d)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(D) Exclusion of plug-in vehicles.--Any vehicle with 
     respect to which a credit is allowable under section 30D 
     (determined without regard to subsection (c) thereof) shall 
     not be taken into account under this section.''.
       (c) Credit Made Part of General Business Credit.--Section 
     38(b), as amended by this Act, is amended--
       (1) by striking ``and'' each place it appears at the end of 
     any paragraph,
       (2) by striking ``plus'' each place it appears at the end 
     of any paragraph,
       (3) by striking the period at the end of paragraph (31) and 
     inserting ``, plus'', and
       (4) by adding at the end the following new paragraph:
       ``(32) the portion of the new qualified plug-in electric 
     drive motor vehicle credit to which section 30D(c)(1) 
     applies.''.
       (d) Conforming Amendments.--
       (1)(A) Section 24(b)(3)(B), as amended by this Act, is 
     amended by striking ``and 25D'' and inserting ``25D, and 
     30D''.
       (B) Section 25(e)(1)(C)(ii) is amended by inserting 
     ``30D,'' after ``25D,''.
       (C) Section 25B(g)(2), as amended by this Act, is amended 
     by striking ``and 25D'' and inserting ``, 25D, and 30D''.
       (D) Section 26(a)(1), as amended by this Act, is amended by 
     striking ``and 25D'' and inserting ``25D, and 30D''.
       (E) Section 1400C(d)(2) is amended by striking ``and 25D'' 
     and inserting ``25D, and 30D''.
       (2) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (36), by striking the period at the end of 
     paragraph (37) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(38) to the extent provided in section 30D(f)(1).''.
       (3) Section 6501(m) is amended by inserting ``30D(f)(4),'' 
     after ``30C(e)(5),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.

       (e) Treatment of Alternative Motor Vehicle Credit as a 
     Personal Credit.--
       (1) In general.--Paragraph (2) of section 30B(g) is amended 
     to read as follows:
       ``(2) Personal credit.--The credit allowed under subsection 
     (a) for any taxable year (after application of paragraph (1)) 
     shall be treated as a credit allowable under subpart A for 
     such taxable year.''.
       (2) Conforming amendments.--
       (A) Subparagraph (A) of section 30C(d)(2) is amended by 
     striking ``sections 27, 30, and 30B'' and inserting 
     ``sections 27 and 30''.
       (B) Paragraph (3) of section 55(c) is amended by striking 
     ``30B(g)(2),''.
       (f) Conversion Kits.--
       (1) In general.--Section 30B (relating to alternative motor 
     vehicle credit) is amended by redesignating subsections (i) 
     and (j) as subsections (j) and (k), respectively, and by 
     inserting after subsection (h) the following new subsection:
       ``(i) Plug-in Conversion Credit.--
       ``(1) In general.--For purposes of subsection (a), the 
     plug-in conversion credit determined under this subsection 
     with respect to any motor vehicle which is converted to a 
     qualified plug-in electric drive motor vehicle is an amount 
     equal to 20 percent of the cost of the plug-in traction 
     battery module installed in such vehicle as part of such 
     conversion.
       ``(2) Limitations.--The amount of the credit allowed under 
     this subsection shall not exceed $2,500 with respect to the 
     conversion of any motor vehicle.
       ``(3) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Qualified plug-in electric drive motor vehicle.--The 
     term `qualified plug-in electric drive motor vehicle' means 
     any new qualified plug-in electric drive motor vehicle (as 
     defined in section 30D(d)(1), determined

[[Page 33968]]

     without regard to subparagraphs (A) and (C) thereof).
       ``(B) Plug-in traction battery module.--The term `plug-in 
     traction battery module' means an electro-chemical energy 
     storage device which--
       ``(i) has a traction battery capacity of not less than 2.5 
     kilowatt hours,
       ``(ii) is equipped with an electrical plug by means of 
     which it can be energized and recharged when plugged into an 
     external source of electric power,
       ``(iii) consists of a standardized configuration and is 
     mass produced,
       ``(iv) has been tested and approved by the National Highway 
     Transportation Safety Administration as compliant with 
     applicable motor vehicle and motor vehicle equipment safety 
     standards when installed by a mechanic with standardized 
     training in protocols established by the battery manufacturer 
     as part of a nationwide distribution program, and
       ``(v) is certified by a battery manufacturer as meeting the 
     requirements of clauses (i) through (iv).
       ``(C) Credit allowed to lessor of battery module.--In the 
     case of a plug-in traction battery module which is leased to 
     the taxpayer, the credit allowed under this subsection shall 
     be allowed to the lessor of the plug-in traction battery 
     module.
       ``(D) Credit allowed in addition to other credits.--The 
     credit allowed under this subsection shall be allowed with 
     respect to a motor vehicle notwithstanding whether a credit 
     has been allowed with respect to such motor vehicle under 
     this section (other than this subsection) in any preceding 
     taxable year.
       ``(4) Termination.--This subsection shall not apply to 
     conversions made after December 31, 2010.''.
       (2) Credit treated as part of alternative motor vehicle 
     credit.--Section 30B(a) is amended by striking ``and'' at the 
     end of paragraph (3), by striking the period at the end of 
     paragraph (4) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(5) the plug-in conversion credit determined under 
     subsection (i).''.
       (3) No recapture for vehicles converted to qualified plug-
     in electric drive motor vehicles.--Paragraph (8) of section 
     30B(h) is amended by adding at the end the following: ``, 
     except that no benefit shall be recaptured if such property 
     ceases to be eligible for such credit by reason of conversion 
     to a qualified plug-in electric drive motor vehicle.''
       (g) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years beginning after December 31, 2007.
       (2) Treatment of alternative motor vehicle credit as 
     personal credit.--The amendments made by subsection (e) shall 
     apply to taxable years beginning after December 31, 2006.
       (3) Conversion kits.--The amendments made by subsection (f) 
     shall apply to property placed in service after December 31, 
     2007, in taxable years beginning after such date.
       (h) Application of EGTRRA Sunset.--The amendment made by 
     subsection (d)(1)(A) shall be subject to title IX of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 in 
     the same manner as the provision of such Act to which such 
     amendment relates.

     SEC. 1529. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING 
                   REDUCTION UNITS AND ADVANCED INSULATION.

       (a) In General.--Section 4053 (relating to exemptions) is 
     amended by adding at the end the following new paragraphs:
       ``(9) Idling reduction device.--Any device or system of 
     devices which--
       ``(A) is designed to provide to a vehicle those services 
     (such as heat, air conditioning, or electricity) that would 
     otherwise require the operation of the main drive engine 
     while the vehicle is temporarily parked or remains stationary 
     using either--
       ``(i) an all electric unit, such as a battery powered unit 
     or from grid-supplied electricity, or
       ``(ii) a dual fuel unit powered by diesel or other fuels, 
     and capable of providing such services from grid-supplied 
     electricity or on-truck batteries alone, and
       ``(B) is certified by the Secretary of Energy, in 
     consultation with the Administrator of the Environmental 
     Protection Agency and the Secretary of Transportation, to 
     reduce long-duration idling of such vehicle at a motor 
     vehicle rest stop or other location where such vehicles are 
     temporarily parked or remain stationary.

     For purposes of subparagraph (B), the term `long-duration 
     idling' means the operation of a main drive engine, for a 
     period greater than 15 consecutive minutes, where the main 
     drive engine is not engaged in gear. Such term does not apply 
     to routine stoppages associated with traffic movement or 
     congestion.
       ``(10) Advanced insulation.--Any insulation that has an R 
     value of not less than R35 per inch.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to sales or installations after December 31, 
     2007.

               PART III--OTHER TRANSPORTATION PROVISIONS

     SEC. 1530. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX 
                   CREDITS.

       (a) In General.--Part I of subchapter Y of chapter 1 is 
     amended by redesignating section 1400L as section 1400K and 
     by adding at the end the following new section:

     ``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.

       ``(a) In General.--In the case of a New York Liberty Zone 
     governmental unit, there shall be allowed as a credit against 
     any taxes imposed for any payroll period by section 3402 for 
     which such governmental unit is liable under section 3403 an 
     amount equal to so much of the portion of the qualifying 
     project expenditure amount allocated under subsection (b)(3) 
     to such governmental unit for the calendar year as is 
     allocated by such governmental unit to such period under 
     subsection (b)(4).
       ``(b) Qualifying Project Expenditure Amount.--For purposes 
     of this section--
       ``(1) In general.--The term `qualifying project expenditure 
     amount' means, with respect to any calendar year, the sum 
     of--
       ``(A) the total expenditures paid or incurred during such 
     calendar year by all New York Liberty Zone governmental units 
     and the Port Authority of New York and New Jersey for any 
     portion of qualifying projects located wholly within the City 
     of New York, New York, and
       ``(B) any such expenditures--
       ``(i) paid or incurred in any preceding calendar year which 
     begins after the date of enactment of this section, and
       ``(ii) not previously allocated under paragraph (3).
       ``(2) Qualifying project.--The term `qualifying project' 
     means any transportation infrastructure project, including 
     highways, mass transit systems, railroads, airports, ports, 
     and waterways, in or connecting with the New York Liberty 
     Zone (as defined in section 1400K(h)), which is designated as 
     a qualifying project under this section jointly by the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York.
       ``(3) General allocation.--
       ``(A) In general.--The Governor of the State of New York 
     and the Mayor of the City of New York, New York, shall 
     jointly allocate to each New York Liberty Zone governmental 
     unit the portion of the qualifying project expenditure amount 
     which may be taken into account by such governmental unit 
     under subsection (a) for any calendar year in the credit 
     period.
       ``(B) Aggregate limit.--The aggregate amount which may be 
     allocated under subparagraph (A) for all calendar years in 
     the credit period shall not exceed $2,000,000,000.
       ``(C) Annual limit.--The aggregate amount which may be 
     allocated under subparagraph (A) for any calendar year in the 
     credit period shall not exceed the sum of--
       ``(i) $115,000,000 ($425,000,000 in the case of the last 2 
     years in the credit period), plus
       ``(ii) the aggregate amount authorized to be allocated 
     under this paragraph for all preceding calendar years in the 
     credit period which was not so allocated.
       ``(D) Unallocated amounts at end of credit period.--If, as 
     of the close of the credit period, the amount under 
     subparagraph (B) exceeds the aggregate amount allocated under 
     subparagraph (A) for all calendar years in the credit period, 
     the Governor of the State of New York and the Mayor of the 
     City of New York, New York, may jointly allocate to New York 
     Liberty Zone governmental units for any calendar year in the 
     5-year period following the credit period an amount equal 
     to--
       ``(i) the lesser of--

       ``(I) such excess, or
       ``(II) the qualifying project expenditure amount for such 
     calendar year, reduced by

       ``(ii) the aggregate amount allocated under this 
     subparagraph for all preceding calendar years.
       ``(4) Allocation to payroll periods.--Each New York Liberty 
     Zone governmental unit which has been allocated a portion of 
     the qualifying project expenditure amount under paragraph (3) 
     for a calendar year may allocate such portion to payroll 
     periods beginning in such calendar year as such governmental 
     unit determines appropriate.
       ``(c) Carryover of Unused Allocations.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     the amount allocated under subsection (b)(3) to a New York 
     Liberty Zone governmental unit for any calendar year exceeds 
     the aggregate taxes imposed by section 3402 for which such 
     governmental unit is liable under section 3403 for periods 
     beginning in such year, such excess shall be carried to the 
     succeeding calendar year and added to the allocation of such 
     governmental unit for such succeeding calendar year.
       ``(2) Reallocation.--If a New York Liberty Zone 
     governmental unit does not use an amount allocated to it 
     under subsection (b)(3) within the time prescribed by the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York, then such amount shall after such time 
     be treated for purposes of subsection (b)(3) in the same 
     manner as if it had never been allocated.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--

[[Page 33969]]

       ``(1) Credit period.--The term `credit period' means the 
     12-year period beginning on January 1, 2008.
       ``(2) New york liberty zone governmental unit.--The term 
     `New York Liberty Zone governmental unit' means--
       ``(A) the State of New York,
       ``(B) the City of New York, New York, and
       ``(C) any agency or instrumentality of such State or City.
       ``(3) Treatment of funds.--Any expenditure for a qualifying 
     project taken into account for purposes of the credit under 
     this section shall be considered State and local funds for 
     the purpose of any Federal program.
       ``(4) Treatment of credit amounts for purposes of 
     withholding taxes.--For purposes of this title, a New York 
     Liberty Zone governmental unit shall be treated as having 
     paid to the Secretary, on the day on which wages are paid to 
     employees, an amount equal to the amount of the credit 
     allowed to such entity under subsection (a) with respect to 
     such wages, but only if such governmental unit deducts and 
     withholds wages for such payroll period under section 3401 
     (relating to wage withholding).
       ``(e) Reporting.--The Governor of the State of New York and 
     the Mayor of the City of New York, New York, shall jointly 
     submit to the Secretary an annual report--
       ``(1) which certifies--
       ``(A) the qualifying project expenditure amount for the 
     calendar year, and
       ``(B) the amount allocated to each New York Liberty Zone 
     governmental unit under subsection (b)(3) for the calendar 
     year, and
       ``(2) includes such other information as the Secretary may 
     require to carry out this section.
       ``(f) Guidance.--The Secretary may prescribe such guidance 
     as may be necessary or appropriate to ensure compliance with 
     the purposes of this section.''.
       (b) Termination of Special Allowance and Expensing.--
     Subparagraph (A) of section 1400K(b)(2), as redesignated by 
     subsection (a), is amended by striking the parenthetical 
     therein and inserting ``(in the case of nonresidential real 
     property and residential rental property, the date of the 
     enactment of the Clean Renewable Energy and Conservation Tax 
     Act of 2007 or, if acquired pursuant to a binding contract in 
     effect on such enactment date, December 31, 2009)''.
       (c) Conforming Amendments.--
       (1) Section 38(c)(3)(B) is amended by striking ``section 
     1400L(a)'' and inserting ``section 1400K(a)''.
       (2) Section 168(k)(2)(D)(ii) is amended by striking 
     ``section 1400L(c)(2)'' and inserting ``section 
     1400K(c)(2)''.
       (3) The table of sections for part I of subchapter Y of 
     chapter 1 is amended by redesignating the item relating to 
     section 1400L as an item relating to section 1400K and by 
     inserting after such item the following new item:

``Sec. 1400L. New York Liberty Zone tax credits.''.

       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 1531. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO 
                   BICYCLE COMMUTERS.

       (a) In General.--Paragraph (1) of section 132(f) of the 
     Internal Revenue Code of 1986 (relating to general rule for 
     qualified transportation fringe) is amended by adding at the 
     end the following:
       ``(D) Any qualified bicycle commuting reimbursement.''.
       (b) Limitation on Exclusion.--Paragraph (2) of section 
     132(f) of such Code is amended by striking ``and'' at the end 
     of subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(C) the applicable annual limitation in the case of any 
     qualified bicycle commuting reimbursement.''.
       (c) Definitions.--Paragraph (5) of section 132(f) of such 
     Code (relating to definitions) is amended by adding at the 
     end the following:
       ``(F) Definitions related to bicycle commuting 
     reimbursement.--
       ``(i) Qualified bicycle commuting reimbursement.--The term 
     `qualified bicycle commuting reimbursement' means, with 
     respect to any calendar year, any employer reimbursement 
     during the 15-month period beginning with the first day of 
     such calendar year for reasonable expenses incurred by the 
     employee during such calendar year for the purchase of a 
     bicycle and bicycle improvements, repair, and storage, if 
     such bicycle is regularly used for travel between the 
     employee's residence and place of employment.
       ``(ii) Applicable annual limitation.--The term `applicable 
     annual limitation' means, with respect to any employee for 
     any calendar year, the product of $20 multiplied by the 
     number of qualified bicycle commuting months during such 
     year.
       ``(iii) Qualified bicycle commuting month.--The term 
     `qualified bicycle commuting month' means, with respect to 
     any employee, any month during which such employee--

       ``(I) regularly uses the bicycle for a substantial portion 
     of the travel between the employee's residence and place of 
     employment, and
       ``(II) does not receive any benefit described in 
     subparagraph (A), (B), or (C) of paragraph (1).''.

       (d) Constructive Receipt of Benefit.--Paragraph (4) of 
     section 132(f) is amended by inserting ``(other than a 
     qualified bicycle commuting reimbursement)'' after 
     ``qualified transportation fringe''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 1532. EXTENSION AND MODIFICATION OF ELECTION TO EXPENSE 
                   CERTAIN REFINERIES.

       (a) Extension.--Paragraph (1) of section 179C(c) (relating 
     to qualified refinery property) is amended--
       (1) by striking ``January 1, 2012'' in subparagraph (B) and 
     inserting ``January 1, 2014'', and
       (2) by striking ``January 1, 2008'' each place it appears 
     in subparagraph (F) and inserting ``January 1, 2010''.
       (b) Inclusion of Fuel Derived From Shale and Tar Sands.--
       (1) In general.--Subsection (d) of section 179C is amended 
     by inserting ``, or directly from shale or tar sands'' after 
     ``(as defined in section 45K(c))''.
       (2) Conforming amendment.--Paragraph (2) of section 179C(e) 
     is amended by inserting ``shale, tar sands, or'' before 
     ``qualified fuels''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

             Subtitle C--Energy Conservation and Efficiency

                 PART I--CONSERVATION TAX CREDIT BONDS

     SEC. 1541. QUALIFIED ENERGY CONSERVATION BONDS.

       (a) In General.--Subpart I of part IV of subchapter A of 
     chapter 1, as added by this title, is amended by adding at 
     the end the following new section:

     ``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.

       ``(a) Qualified Energy Conservation Bond.--For purposes of 
     this subchapter, the term `qualified energy conservation 
     bond' means any bond issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for one or more qualified conservation 
     purposes,
       ``(2) the bond is issued by a State or local government, 
     and
       ``(3) the issuer designates such bond for purposes of this 
     section.
       ``(b) Limitation on Amount of Bonds Designated.--The 
     maximum aggregate face amount of bonds which may be 
     designated under subsection (a) by any issuer shall not 
     exceed the limitation amount allocated to such issuer under 
     subsection (d).
       ``(c) National Limitation on Amount of Bonds Designated.--
     There is a national qualified energy conservation bond 
     limitation of $3,000,000,000.
       ``(d) Allocations.--
       ``(1) In general.--The limitation applicable under 
     subsection (c) shall be allocated by the Secretary among the 
     States in proportion to the population of the States.
       ``(2) Allocations to largest local governments.--
       ``(A) In general.--In the case of any State in which there 
     is a large local government, each such local government shall 
     be allocated a portion of such State's allocation which bears 
     the same ratio to the State's allocation (determined without 
     regard to this subparagraph) as the population of such large 
     local government bears to the population of such State.
       ``(B) Allocation of unused limitation to state.--The amount 
     allocated under this subsection to a large local government 
     may be reallocated by such local government to the State in 
     which such local government is located.
       ``(C) Large local government.--For purposes of this 
     section, the term `large local government' means any 
     municipality or county if such municipality or county has a 
     population of 100,000 or more.
       ``(3) Allocation to issuers; restriction on private 
     activity bonds.--Any allocation under this subsection to a 
     State or large local government shall be allocated by such 
     State or large local government to issuers within the State 
     in a manner that results in not less than 70 percent of the 
     allocation to such State or large local government being used 
     to designate bonds which are not private activity bonds.
       ``(e) Qualified Conservation Purpose.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified conservation 
     purpose' means any of the following:
       ``(A) Capital expenditures incurred for purposes of--
       ``(i) reducing energy consumption in publicly-owned 
     buildings by at least 20 percent,
       ``(ii) implementing green community programs, or
       ``(iii) rural development involving the production of 
     electricity from renewable energy resources.

[[Page 33970]]

       ``(B) Expenditures with respect to research facilities, and 
     research grants, to support research in--
       ``(i) development of cellulosic ethanol or other nonfossil 
     fuels,
       ``(ii) technologies for the capture and sequestration of 
     carbon dioxide produced through the use of fossil fuels,
       ``(iii) increasing the efficiency of existing technologies 
     for producing nonfossil fuels,
       ``(iv) automobile battery technologies and other 
     technologies to reduce fossil fuel consumption in 
     transportation, or
       ``(v) technologies to reduce energy use in buildings.
       ``(C) Mass commuting facilities and related facilities that 
     reduce the consumption of energy, including expenditures to 
     reduce pollution from vehicles used for mass commuting.
       ``(D) Demonstration projects designed to promote the 
     commercialization of--
       ``(i) green building technology,
       ``(ii) conversion of agricultural waste for use in the 
     production of fuel or otherwise,
       ``(iii) advanced battery manufacturing technologies,
       ``(iv) technologies to reduce peak use of electricity, or
       ``(v) technologies for the capture and sequestration of 
     carbon dioxide emitted from combusting fossil fuels in order 
     to produce electricity.
       ``(E) Public education campaigns to promote energy 
     efficiency.
       ``(2) Special rules for private activity bonds.--For 
     purposes of this section, in the case of any private activity 
     bond, the term `qualified conservation purposes' shall not 
     include any expenditure which is not a capital expenditure.
       ``(f) Population.--
       ``(1) In general.--The population of any State or local 
     government shall be determined for purposes of this section 
     as provided in section 146(j) for the calendar year which 
     includes the date of the enactment of this section.
       ``(2) Special rule for counties.--In determining the 
     population of any county for purposes of this section, any 
     population of such county which is taken into account in 
     determining the population of any municipality which is a 
     large local government shall not be taken into account in 
     determining the population of such county.
       ``(g) Application to Indian Tribal Governments.--An Indian 
     tribal government shall be treated for purposes of this 
     section in the same manner as a large local government, 
     except that--
       ``(1) an Indian tribal government shall be treated for 
     purposes of subsection (d) as located within a State to the 
     extent of so much of the population of such government as 
     resides within such State, and
       ``(2) any bond issued by an Indian tribal government shall 
     be treated as a qualified energy conservation bond only if 
     issued as part of an issue the available project proceeds of 
     which are used for purposes for which such Indian tribal 
     government could issue bonds to which section 103(a) 
     applies.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d), as added by this 
     title, is amended to read as follows:
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means--
       ``(A) a new clean renewable energy bond, or
       ``(B) a qualified energy conservation bond,
     which is part of an issue that meets requirements of 
     paragraphs (2), (3), (4), (5), and (6).''.
       (2) Subparagraph (C) of section 54A(d)(2), as added by this 
     title, is amended to read as follows:
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--
       ``(i) in the case of a new clean renewable energy bond, a 
     purpose specified in section 54B(a)(1), and
       ``(ii) in the case of a qualified energy conservation bond, 
     a purpose specified in section 54C(a)(1).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1, as amended by this title, is 
     amended by adding at the end the following new item:

``Sec. 54C. Qualified energy conservation bonds.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 1542. QUALIFIED FORESTRY CONSERVATION BONDS.

       (a) In General.--Subpart I of part IV of subchapter A of 
     chapter 1, as added by this title, is amended by adding at 
     the end the following new section:

     ``SEC. 54D. QUALIFIED FORESTRY CONSERVATION BONDS.

       ``(a) Qualified Forestry Conservation Bond.--For purposes 
     of this subchapter, the term `qualified forestry conservation 
     bond' means any bond issued as part of an issue if--
       ``(1) 100 percent of the available proceeds of such issue 
     are to be used for one or more qualified forestry 
     conservation projects,
       ``(2) the bond is issued by a qualified issuer, and
       ``(3) the issuer designates such bond for purposes of this 
     section.
       ``(b) Limitation on Amount of Bonds Designated.--The 
     maximum aggregate face amount of bonds which may be 
     designated under subsection (a) by any issuer shall not 
     exceed the limitation amount allocated to such issuer under 
     subsection (d).
       ``(c) National Limitation on Amount of Bonds Designated.--
     There is a national qualified forestry conservation bond 
     limitation of $500,000,000.
       ``(d) Allocations.--
       ``(1) In general.--The Secretary shall make allocations of 
     the amount of the national qualified forestry conservation 
     bond limitation described in subsection (c) among qualified 
     forestry conservation projects in such manner as the 
     Secretary determines appropriate so as to ensure that all of 
     such limitation is allocated before the date which is 24 
     months after the date of the enactment of this section.
       ``(2) Solicitation of applications.--The Secretary shall 
     solicit applications for allocations of the national 
     qualified forestry conservation bond limitation described in 
     subsection (c) not later than 90 days after the date of the 
     enactment of this section.
       ``(e) Qualified Forestry Conservation Project.--For 
     purposes of this section, the term `qualified forestry 
     conservation project' means the acquisition by a State or 
     501(c)(3) organization (as defined in section 150(a)(4)) from 
     an unrelated person of forest and forest land that meets the 
     following qualifications:
       ``(1) Some portion of the land acquired must be adjacent to 
     United States Forest Service Land.
       ``(2) At least half of the land acquired must be 
     transferred to the United States Forest Service at no net 
     cost to the United States and not more than half of the land 
     acquired may either remain with or be donated to a State.
       ``(3) All of the land must be subject to a native fish 
     habitat conservation plan approved by the United States Fish 
     and Wildlife Service.
       ``(4) The amount of acreage acquired must be at least 
     40,000 acres.
       ``(f) Qualified Issuer.--For purposes of this section, the 
     term `qualified issuer' means a State or 501(c)(3) 
     organization (as defined in section 150(a)(4)).
       ``(g) Special Arbitrage Rule.--In the case of any qualified 
     forestry conservation bond issued as part of an issue, 
     section 54A(d)(4)(C) shall be applied to such issue without 
     regard to clause (i).''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d), as added by this 
     title, is amended to read as follows:
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means--
       ``(A) a new clean renewable energy bond,
       ``(B) a qualified energy conservation bond, or
       ``(C) a qualified forestry conservation bond,

     which is part of an issue that meets requirements of 
     paragraphs (2), (3), (4), (5), and (6).''.
       (2) Subparagraph (C) of section 54A(d)(2), as added by this 
     title, is amended to read as follows:
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--
       ``(i) in the case of a new clean renewable energy bond, a 
     purpose specified in section 54B(a)(1),
       ``(ii) in the case of a qualified energy conservation bond, 
     a purpose specified in section 54C(a)(1), and
       ``(iii) in the case of a qualified forestry conservation 
     bond, a purpose specified in section 54D(a)(1).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1, as amended by this title, is 
     amended by adding at the end the following new item:

``Sec. 54C. Qualified forestry conservation bonds.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

                          PART II--EFFICIENCY

     SEC. 1543. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT 
                   EXISTING HOMES CREDIT.

       (a) Extension of Credit.--Section 25C(g) (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2008''.
       (b) Qualified Biomass Fuel Property.--
       (1) In general.--Section 25C(d)(3) is amended--
       (A) by striking ``and'' at the end of subparagraph (D),
       (B) by striking the period at the end of subparagraph (E) 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(F) a stove which uses the burning of biomass fuel to 
     heat a dwelling unit located in the United States and used as 
     a residence by the taxpayer, or to heat water for use in such 
     a dwelling unit, and which has a thermal efficiency rating of 
     at least 75 percent.''.
       (2) Biomass fuel.--Section 25C(d) (relating to residential 
     energy property expenditures) is amended by adding at the end 
     the following new paragraph:
       ``(6) Biomass fuel.--The term `biomass fuel' means any 
     plant-derived fuel available on a renewable or recurring 
     basis, including agricultural crops and trees, wood and wood 
     waste and residues (including wood pellets), plants 
     (including aquatic plants), grasses, residues, and fibers.''.

[[Page 33971]]

       (c) Effective Date.--The amendments made this section shall 
     apply to expenditures made after December 31, 2007.

     SEC. 1544. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT 
                   COMMERCIAL BUILDINGS DEDUCTION.

       Subsection (h) of section 179D (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2013''.

     SEC. 1545. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT 
                   FOR APPLIANCES PRODUCED AFTER 2007.

       (a) In General.--Subsection (b) of section 45M (relating to 
     applicable amount) is amended to read as follows:
       ``(b) Applicable Amount.--For purposes of subsection (a)--
       ``(1) Dishwashers.--The applicable amount is--
       ``(A) $45 in the case of a dishwasher which is manufactured 
     in calendar year 2008 or 2009 and which uses no more than 324 
     kilowatt hours per year and 5.8 gallons per cycle, and
       ``(B) $75 in the case of a dishwasher which is manufactured 
     in calendar year 2008, 2009, or 2010 and which uses no more 
     than 307 kilowatt hours per year and 5.0 gallons per cycle 
     (5.5 gallons per cycle for dishwashers designed for greater 
     than 12 place settings).
       ``(2) Clothes washers.--The applicable amount is--
       ``(A) $75 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 which meets or 
     exceeds a 1.72 modified energy factor and does not exceed a 
     8.0 water consumption factor,
       ``(B) $125 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 or 2009 which meets 
     or exceeds a 1.8 modified energy factor and does not exceed a 
     7.5 water consumption factor,
       ``(C) $150 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009 or 
     2010 which meets or exceeds 2.0 modified energy factor and 
     does not exceed a 6.0 water consumption factor, and
       ``(D) $250 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.2 modified energy factor and 
     does not exceed a 4.5 water consumption factor.
       ``(3) Refrigerators.--The applicable amount is--
       ``(A) $50 in the case of a refrigerator which is 
     manufactured in calendar year 2008, and consumes at least 20 
     percent but not more than 22.9 percent less kilowatt hours 
     per year than the 2001 energy conservation standards,
       ``(B) $75 in the case of a refrigerator which is 
     manufactured in calendar year 2008 or 2009, and consumes at 
     least 23 percent but no more than 24.9 percent less kilowatt 
     hours per year than the 2001 energy conservation standards,
       ``(C) $100 in the case of a refrigerator which is 
     manufactured in calendar year 2008, 2009, or 2010, and 
     consumes at least 25 percent but not more than 29.9 percent 
     less kilowatt hours per year than the 2001 energy 
     conservation standards, and
       ``(D) $200 in the case of a refrigerator manufactured in 
     calendar year 2008, 2009, or 2010 and which consumes at least 
     30 percent less energy than the 2001 energy conservation 
     standards.''.
       (b) Eligible Production.--
       (1) Similar treatment for all appliances.--Subsection (c) 
     of section 45M (relating to eligible production) is amended--
       (A) by striking paragraph (2),
       (B) by striking ``(1) In general'' and all that follows 
     through ``the eligible'' and inserting ``The eligible'', and
       (C) by moving the text of such subsection in line with the 
     subsection heading and redesignating subparagraphs (A) and 
     (B) as paragraphs (1) and (2), respectively.
       (2) Modification of base period.--Paragraph (2) of section 
     45M(c), as amended by paragraph (1) of this section, is 
     amended by striking ``3-calendar year'' and inserting ``2-
     calendar year''.
       (c) Types of Energy Efficient Appliances.--Subsection (d) 
     of section 45M (defining types of energy efficient 
     appliances) is amended to read as follows:
       ``(d) Types of Energy Efficient Appliance.--For purposes of 
     this section, the types of energy efficient appliances are--
       ``(1) dishwashers described in subsection (b)(1),
       ``(2) clothes washers described in subsection (b)(2), and
       ``(3) refrigerators described in subsection (b)(3).''
       (d) Aggregate Credit Amount Allowed.--
       (1) Increase in limit.--Paragraph (1) of section 45M(e) 
     (relating to aggregate credit amount allowed) is amended to 
     read as follows:
       ``(1) Aggregate credit amount allowed.--The aggregate 
     amount of credit allowed under subsection (a) with respect to 
     a taxpayer for any taxable year shall not exceed $75,000,000 
     reduced by the amount of the credit allowed under subsection 
     (a) to the taxpayer (or any predecessor) for all prior 
     taxable years beginning after December 31, 2007.''.
       (2) Exception for certain refrigerator and clothes 
     washers.--Paragraph (2) of section 45M(e) is amended to read 
     as follows:
       ``(2) Amount allowed for certain refrigerators and clothes 
     washers.--Refrigerators described in subsection (b)(3)(D) and 
     clothes washers described in subsection (b)(2)(D) shall not 
     be taken into account under paragraph (1).''.
       (e) Qualified Energy Efficient Appliances.--
       (1) In general.--Paragraph (1) of section 45M(f) (defining 
     qualified energy efficient appliance) is amended to read as 
     follows:
       ``(1) Qualified energy efficient appliance.--The term 
     `qualified energy efficient appliance' means--
       ``(A) any dishwasher described in subsection (b)(1),
       ``(B) any clothes washer described in subsection (b)(2), 
     and
       ``(C) any refrigerator described in subsection (b)(3).''.
       (2) Clothes washer.--Section 45M(f)(3) (defining clothes 
     washer) is amended by inserting ``commercial'' before 
     ``residential'' the second place it appears.
       (3) Top-loading clothes washer.--Subsection (f) of section 
     45M (relating to definitions) is amended by redesignating 
     paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), 
     (7), and (8), respectively, and by inserting after paragraph 
     (3) the following new paragraph:
       ``(4) Top-loading clothes washer.--The term `top-loading 
     clothes washer' means a clothes washer which has the clothes 
     container compartment access located on the top of the 
     machine and which operates on a vertical axis.''.
       (4) Replacement of energy factor.--Section 45M(f)(7), as 
     redesignated by paragraph (3), is amended to read as follows:
       ``(7) Modified energy factor.--The term `modified energy 
     factor' means the modified energy factor established by the 
     Department of Energy for compliance with the Federal energy 
     conservation standard.''.
       (5) Gallons per cycle; water consumption factor.--Section 
     45M(f) (relating to definitions) is amended by adding at the 
     end the following:
       ``(9) Gallons per cycle.--The term `gallons per cycle' 
     means, with respect to a dishwasher, the amount of water, 
     expressed in gallons, required to complete a normal cycle of 
     a dishwasher.
       ``(10) Water consumption factor.--The term `water 
     consumption factor' means, with respect to a clothes washer, 
     the quotient of the total weighted per-cycle water 
     consumption divided by the cubic foot (or liter) capacity of 
     the clothes washer.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.

     SEC. 1546. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR 
                   DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT 
                   DEVICES.

       (a) In General.--Section 168(e)(3)(C) (relating to 7-year 
     property), as amended by this Act, is amended by striking 
     ``and'' at the end of clause (v), by redesignating clause 
     (vi) as clause (vii), and by inserting after clause (v) the 
     following new clause:
       ``(vi) any qualified energy management device, and''.
       (b) Definition of Qualified Energy Management Device.--
     Section 168(i) (relating to definitions and special rules) is 
     amended by inserting at the end the following new paragraph:
       ``(18) Qualified energy management device.--
       ``(A) In general.--The term `qualified energy management 
     device' means any energy management device which is installed 
     on real property of a customer of the taxpayer and is placed 
     in service by a taxpayer who--
       ``(i) is a supplier of electric energy or a provider of 
     electric energy services, and
       ``(ii) provides all commercial and residential customers of 
     such supplier or provider with net metering upon the request 
     of such customer.
       ``(B) Energy management device.--For purposes of 
     subparagraph (A), the term `energy management device' means 
     any time-based meter and related communication equipment 
     which is capable of being used by the taxpayer as part of a 
     system that--
       ``(i) measures and records electricity usage data on a 
     time-differentiated basis in at least 24 separate time 
     segments per day,
       ``(ii) provides for the exchange of information between 
     supplier or provider and the customer's energy management 
     device in support of time-based rates or other forms of 
     demand response, and
       ``(iii) provides data to such supplier or provider so that 
     the supplier or provider can provide energy usage information 
     to customers electronically.
       ``(C) Net metering.--For purposes of subparagraph (A), the 
     term `net metering' means allowing customers a credit for 
     providing electricity to the supplier or provider.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2007.

                      Subtitle D--Other Provisions

                      PART I--FORESTRY PROVISIONS

     SEC. 1551. DEDUCTION FOR QUALIFIED TIMBER GAIN.

       (a) In General.--Part I of subchapter P of chapter 1 is 
     amended by adding at the end the following new section:

[[Page 33972]]



     ``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.

       ``(a) In General.--In the case of a taxpayer which elects 
     the application of this section for a taxable year, there 
     shall be allowed a deduction against gross income in an 
     amount equal to 60 percent of the lesser of--
       ``(1) the taxpayer's qualified timber gain for such year, 
     or
       ``(2) the taxpayer's net capital gain for such year.
       ``(b) Qualified Timber Gain.--For purposes of this section, 
     the term `qualified timber gain' means, with respect to any 
     taxpayer for any taxable year, the excess (if any) of--
       ``(1) the sum of the taxpayer's gains described in 
     subsections (a) and (b) of section 631 for such year, over
       ``(2) the sum of the taxpayer's losses described in such 
     subsections for such year.
       ``(c) Special Rules for Pass-Thru Entities.--
       ``(1) In the case of any qualified timber gain of a pass-
     thru entity (as defined in section 1(h)(10)) other than a 
     real estate investment trust, the election under this section 
     shall be made separately by each taxpayer subject to tax on 
     such gain.
       ``(2) In the case of any qualified timber gain of a real 
     estate investment trust, the election under this section 
     shall be made by the real estate investment trust.
       ``(d) Election.--An election under this section may be made 
     only with respect to the first taxable year beginning after 
     the date of the enactment of this section.''.
       (b) Coordination With Maximum Capital Gains Rates.--
       (1) Taxpayers other than corporations.--Paragraph (2) of 
     section 1(h) is amended to read as follows:
       ``(2) Reduction of net capital gain.--For purposes of this 
     subsection, the net capital gain for any taxable year shall 
     be reduced (but not below zero) by the sum of--
       ``(A) the amount which the taxpayer takes into account as 
     investment income under section 163(d)(4)(B)(iii), and
       ``(B) in the case of a taxable year with respect to which 
     an election is in effect under section 1203, the taxpayer's 
     qualified timber gain (as defined in section 1203(b)).''.
       (2) Corporations.--Section 1201 is amended by redesignating 
     subsection (b) as subsection (c) and inserting after 
     subsection (a) the following new subsection:
       ``(b) Qualified Timber Gain Not Taken Into Account.--For 
     purposes of this section, in the case of a corporation with 
     respect to which an election is in effect under section 1203, 
     the net capital gain for any taxable year shall be reduced 
     (but not below zero) by the corporation's qualified timber 
     gain (as defined in section 1203(b)).''.
       (c) Deduction Allowed Whether or Not Individual Itemizes 
     Other Deductions.--Subsection (a) of section 62 is amended by 
     inserting before the last sentence the following new 
     paragraph:
       ``(22) Qualified timber gains.--The deduction allowed by 
     section 1203.''.
       (d) Deduction Allowed in Computing Adjusted Current 
     Earnings.--Subparagraph (C) of section 56(g)(4) is amended by 
     adding at the end the following new clause:
       ``(vii) Deduction for qualified timber gain.--Clause (i) 
     shall not apply to any deduction allowed under section 
     1203.''.
       (e) Deduction Allowed in Computing Taxable Income of 
     Electing Small Business Trusts.--Subparagraph (C) of section 
     641(c)(2) is amended by inserting after clause (iv) the 
     following new clause:
       ``(v) The deduction allowed under section 1203.''.
       (f) Treatment of Qualified Timber Gain of Real Estate 
     Investment Trusts.--Paragraph (3) of section 857(b) is 
     amended by inserting after subparagraph (F) the following new 
     subparagraph:
       ``(G) Treatment of qualified timber gain.--For purposes of 
     this part, in the case of a real estate investment trust with 
     respect to which an election is in effect under section 
     1203--
       ``(i) Reduction of net capital gain.--The net capital gain 
     of the real estate investment trust for any taxable year 
     shall be reduced (but not below zero) by the real estate 
     investment trust's qualified timber gain (as defined in 
     section 1203(b)).
       ``(ii) Adjustment to shareholder's basis attributable to 
     deduction for qualified timber gains.--

       ``(I) In general.--The adjusted basis of shares in the 
     hands of the shareholder shall be increased by the amount of 
     the deduction allowable under section 1203(a) as provided in 
     subclauses (II) and (III).
       ``(II) Allocation of basis increase for distributions made 
     during taxable year.--For any taxable year of a real estate 
     investment trust for which an election is in effect under 
     section 1203, in the case of a distribution made with respect 
     to shares during such taxable year of amounts attributable to 
     the deduction allowable under section 1203(a), the adjusted 
     basis of such shares shall be increased by the amount of such 
     distributions.
       ``(III) Allocation of excess.--If the deduction allowable 
     under section 1203(a) for a taxable year exceeds the amount 
     of distributions described in subclause (II), the excess 
     shall be allocated to every shareholder of the real estate 
     investment trust at the close of the trust's taxable year in 
     the same manner as if a distribution of such excess were made 
     with respect to such shares.
       ``(IV) Designations.--To the extent provided in 
     regulations, a real estate investment trust shall designate 
     the amounts described in subclauses (II) and (III) in a 
     manner similar to the designations provided with respect to 
     capital gains described in subparagraphs (C) and (D).
       ``(V) Definitions.--As used in this subparagraph, the terms 
     `share' and `shareholder' shall include beneficial interests 
     and holders of beneficial interests, respectively.

       ``(iii) Earnings and profits deduction for qualified timber 
     gains.--The deduction allowable under section 1203(a) for a 
     taxable year shall be allowed as a deduction in computing the 
     earnings and profits of the real estate investment trust for 
     such taxable year. The earnings and profits of any such 
     shareholder which is a corporation shall be appropriately 
     adjusted in accordance with regulations prescribed by the 
     Secretary.''.
       (g) Loss Attributable to Basis Adjustment for Deduction for 
     Qualified Timber Gain of Real Estate Investment Trusts.--
       (1) Section 857(b)(8) is amended by redesignating 
     subparagraphs (B) and (C) as subparagraphs (C) and (D), 
     respectively, and by inserting after subparagraph (A) the 
     following new subparagraph:
       ``(B) Loss attributable to basis adjustment for deduction 
     for qualified timber gain.--If--
       ``(i) a shareholder of a real estate investment trust 
     receives a basis adjustment provided under subsection 
     (b)(3)(G)(ii), and
       ``(ii) the taxpayer has held such share or interest for 6 
     months or less,
     then any loss on the sale or exchange of such share or 
     interest shall, to the extent of the amount described in 
     clause (i), be disallowed.''.
       (2) Subparagraph (D) of section 857(b)(8), as redesignated 
     by paragraph (1), is amended by striking ``subparagraph (A)'' 
     and inserting ``subparagraphs (A) and (B)''.
       (h) Conforming Amendments.--
       (1) Subparagraph (B) of section 172(d)(2) is amended to 
     read as follows:
       ``(B) the exclusion under section 1202, and the deduction 
     under section 1203, shall not be allowed.''.
       (2) Paragraph (4) of section 642(c) is amended by striking 
     the first sentence and inserting ``To the extent that the 
     amount otherwise allowable as a deduction under this 
     subsection consists of gain described in section 1202(a) or 
     qualified timber gain (as defined in section 1203(b)), proper 
     adjustment shall be made for any exclusion allowable to the 
     estate or trust under section 1202 and for any deduction 
     allowable to the estate or trust under section 1203.''
       (3) Paragraph (3) of section 643(a) is amended by striking 
     the last sentence and inserting ``The exclusion under section 
     1202 and the deduction under section 1203 shall not be taken 
     into account.''.
       (4) Subparagraph (C) of section 643(a)(6) is amended to 
     read as follows:
       ``(C) Paragraph (3) shall not apply to a foreign trust. In 
     the case of such a trust--
       ``(i) there shall be included gains from the sale or 
     exchange of capital assets, reduced by losses from such sales 
     or exchanges to the extent such losses do not exceed gains 
     from such sales or exchanges, and
       ``(ii) the deduction under section 1203 shall not be taken 
     into account.''.
       (5) Paragraph (4) of section 691(c) is amended by inserting 
     ``1203,'' after ``1202,''.
       (6) Paragraph (2) of section 871(a) is amended by inserting 
     ``or 1203,'' after ``1202,''.
       (7) The table of sections for part I of subchapter P of 
     chapter 1 is amended by adding at the end the following new 
     item:

``Sec. 1203. Deduction for qualified timber gain.''.

       (i) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 1552. EXCISE TAX NOT APPLICABLE TO SECTION 1203 
                   DEDUCTION OF REAL ESTATE INVESTMENT TRUSTS.

       (a) In General.--
       (1) Ordinary income.--Subparagraph (B) of section 
     4981(e)(1) is amended to read as follows:
       ``(B) by not taking into account--
       ``(i) any gain or loss from the sale or exchange of capital 
     assets (determined without regard to any reduction that would 
     be applied for purposes of section 857(b)(3)(G)(i)), and
       ``(ii) any deduction allowable under section 1203, and''.
       (2) Capital gain net income.--Section 4981(e)(2) is amended 
     by adding at the end the following new subparagraph:
       ``(D) Qualified timber gain.--The amount determined under 
     subparagraph (A) shall be determined without regard to any 
     reduction that would be applied for purposes of section 
     857(b)(3)(G)(i) but shall be reduced for any deduction 
     allowable under section 1203 for such calendar year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 1553. TIMBER REIT MODERNIZATION.

       (a) In General.--Section 856(c)(5) is amended by adding 
     after subparagraph (G) the following new subparagraph:
       ``(H) Treatment of timber gains.--

[[Page 33973]]

       ``(i) In general.--Gain from the sale of real property 
     described in paragraph (2)(D) and (3)(C) shall include gain 
     which is--

       ``(I) recognized by an election under section 631(a) from 
     timber owned by the real estate investment trust, the cutting 
     of which is provided by a taxable REIT subsidiary of the real 
     estate investment trust;
       ``(II) recognized under section 631(b); or
       ``(III) income which would constitute gain under subclause 
     (I) or (II) but for the failure to meet the 1-year holding 
     period requirement.

       ``(ii) Special rules.--

       ``(I) For purposes of this subtitle, cut timber, the gain 
     of which is recognized by a real estate investment trust 
     pursuant to an election under section 631(a) described in 
     clause (i)(I) or so much of clause (i)(III) as relates to 
     clause (i)(I), shall be deemed to be sold to the taxable REIT 
     subsidiary of the real estate investment trust on the first 
     day of the taxable year.
       ``(II) For purposes of this subtitle, income described in 
     this subparagraph shall not be treated as gain from the sale 
     of property described in section 1221(a)(1).

       ``(iii) Termination.--This subparagraph shall not apply to 
     dispositions after the termination date.''.
       (b) Termination Date.--Subsection (c) of section 856 is 
     amended by adding at the end the following new paragraph:
       ``(8) Termination date.--For purposes of this subsection, 
     the term `termination date' means the last day of the first 
     taxable year beginning after the date of the enactment of 
     this paragraph.''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to dispositions in taxable years beginning after 
     the date of the enactment of this Act.

     SEC. 1554. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR 
                   TIMBER REITS.

       (a) In General.--Section 856(c)(2) is amended by striking 
     ``and'' at the end of subparagraph (G), by inserting ``and'' 
     at the end of subparagraph (H), and by adding after 
     subparagraph (H) the following new subparagraph:
       ``(I) mineral royalty income earned in the first taxable 
     year beginning after the date of the enactment of this 
     subparagraph from real property owned by a timber real estate 
     investment trust held, or once held, in connection with the 
     trade or business of producing timber by such real estate 
     investment trust;''.
       (b) Timber Real Estate Investment Trust.--Section 
     856(c)(5), as amended by this Act, is amended by adding after 
     subparagraph (H) the following new subparagraph:
       ``(I) Timber real estate investment trust.--The term 
     `timber real estate investment trust' means a real estate 
     investment trust in which more than 50 percent in value of 
     its total assets consists of real property held in connection 
     with the trade or business of producing timber.''.
       (c) Effective Date.--The amendments by this section shall 
     apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 1555. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST 
                   FOR TIMBER REITS.

       (a) In General.--Section 856(c)(4)(B)(ii) is amended by 
     inserting ``(in the case of a quarter which closes on or 
     before the termination date, 25 percent in the case of a 
     timber real estate investment trust)'' after ``not more than 
     20 percent of the value of its total assets is represented by 
     securities of one or more taxable REIT subsidiaries''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 1556. SAFE HARBOR FOR TIMBER PROPERTY.

       (a) In General.--Section 857(b)(6) (relating to income from 
     prohibited transactions) is amended by adding at the end the 
     following new subparagraph:
       ``(G) Special rules for sales to qualified organizations.--
       ``(i) In general.--In the case of sale of a real estate 
     asset (as defined in section 856(c)(5)(B)) to a qualified 
     organization (as defined in section 170(h)(3)) exclusively 
     for conservation purposes (within the meaning of section 
     170(h)(1)(C)), subparagraph (D) shall be applied--

       ``(I) by substituting `2 years' for `4 years' in clause 
     (i), and
       ``(II) by substituting `2-year period' for `4-year period' 
     in clauses (ii) and (iii).

       ``(ii) Termination.--This subparagraph shall not apply to 
     sales after the termination date.''.
       (b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is 
     amended by inserting ``or, in the case of a sale on or before 
     the termination date, a taxable REIT subsidiary'' after 
     ``independent contractor (as defined in section 856(d)(3)) 
     from whom the trust itself does not derive or receive any 
     income''.
       (c) Sales That Are Not Prohibited Transactions.--Section 
     857(b)(6), as amended by subsection (a), is amended by adding 
     at the end the following new subparagraph:
       ``(H) Sales of property that are not a prohibited 
     transaction.--In the case of a sale on or before the 
     termination date, the sale of property which is not a 
     prohibited transaction through application of subparagraph 
     (D) shall be considered property held for investment or for 
     use in a trade or business and not property described in 
     section 1221(a)(1) for all purposes of this subtitle.''.
       (d) Termination Date.--Section 857(b)(6), as amended by 
     subsections (a) and (c), is amended by adding at the end the 
     following new subparagraph:
       ``(I) Termination date.--For purposes of this paragraph, 
     the term `termination date' means the last day of the first 
     taxable year beginning after the date of the enactment of 
     this subparagraph.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to dispositions in taxable years beginning after 
     the date of the enactment of this Act.

                         PART II--EXXON VALDEZ

     SEC. 1557. INCOME AVERAGING FOR AMOUNTS RECEIVED IN 
                   CONNECTION WITH THE EXXON VALDEZ LITIGATION.

       (a) Income Averaging of Amounts Received From the Exxon 
     Valdez Litigation.--For purposes of section 1301 of the 
     Internal Revenue Code of 1986--
       (1) any qualified taxpayer who receives any qualified 
     settlement income in any taxable year shall be treated as 
     engaged in a fishing business (determined without regard to 
     the commercial nature of the business), and
       (2) such qualified settlement income shall be treated as 
     income attributable to such a fishing business for such 
     taxable year.
       (b) Contributions of Amounts Received to Retirement 
     Accounts.--
       (1) In general.--Any qualified taxpayer who receives 
     qualified settlement income during the taxable year may, at 
     any time before the end of the taxable year in which such 
     income was received, make one or more contributions to an 
     eligible retirement plan of which such qualified taxpayer is 
     a beneficiary in an aggregate amount not to exceed the lesser 
     of--
       (A) $100,000 (reduced by the amount of qualified settlement 
     income contributed to an eligible retirement plan in prior 
     taxable years pursuant to this subsection), or
       (B) the amount of qualified settlement income received by 
     the individual during the taxable year.
       (2) Time when contributions deemed made.--For purposes of 
     paragraph (1), a qualified taxpayer shall be deemed to have 
     made a contribution to an eligible retirement plan on the 
     last day of the taxable year in which such income is received 
     if the contribution is made on account of such taxable year 
     and is made not later than the time prescribed by law for 
     filing the return for such taxable year (not including 
     extensions thereof).
       (3) Treatment of contributions to eligible retirement 
     plans.--For purposes of the Internal Revenue Code of 1986, if 
     a contribution is made pursuant to paragraph (1) with respect 
     to qualified settlement income, then--
       (A) except as provided in paragraph (4)--
       (i) to the extent of such contribution, the qualified 
     settlement income shall not be included in taxable income, 
     and
       (ii) for purposes of section 72 of such Code, such 
     contribution shall not be considered to be investment in the 
     contract,
       (B) the qualified taxpayer shall, to the extent of the 
     amount of the contribution, be treated--
       (i) as having received the qualified settlement income--

       (I) in the case of a contribution to an individual 
     retirement plan (as defined under section 7701(a)(37) of such 
     Code), in a distribution described in section 408(d)(3) of 
     such Code, and
       (II) in the case of any other eligible retirement plan, in 
     an eligible rollover distribution (as defined under section 
     402(f)(2) of such Code), and

       (ii) as having transferred the amount to the eligible 
     retirement plan in a direct trustee to trustee transfer 
     within 60 days of the distribution,
       (C) section 408(d)(3)(B) of the Internal Revenue Code of 
     1986 shall not apply with respect to amounts treated as a 
     rollover under this paragraph, and
       (D) section 408A(c)(3)(B) of the Internal Revenue Code of 
     1986 shall not apply with respect to amounts contributed to a 
     Roth IRA (as defined under section 408A(b) of such Code) or a 
     designated Roth contribution to an applicable retirement plan 
     (within the meaning of section 402A of such Code) under this 
     paragraph.
       (4) Special rule for roth iras and roth 401(k)s.--For 
     purposes of the Internal Revenue Code of 1986, if a 
     contribution is made pursuant to paragraph (1) with respect 
     to qualified settlement income to a Roth IRA (as defined 
     under section 408A(b) of such Code) or as a designated Roth 
     contribution to an applicable retirement plan (within the 
     meaning of section 402A of such Code), then--
       (A) the qualified settlement income shall be includible in 
     taxable income, and
       (B) for purposes of section 72 of such Code, such 
     contribution shall be considered to be investment in the 
     contract.
       (5) Eligible retirement plan.--For purpose of this 
     subsection, the term ``eligible retirement plan'' has the 
     meaning given such term under section 402(c)(8)(B) of the 
     Internal Revenue Code of 1986.
       (c) Treatment of Qualified Settlement Income Under 
     Employment Taxes.--

[[Page 33974]]

       (1) SECA.--For purposes of chapter 2 of the Internal 
     Revenue Code of 1986 and section 211 of the Social Security 
     Act, no portion of qualified settlement income received by a 
     qualified taxpayer shall be treated as self-employment 
     income.
       (2) FICA.--For purposes of chapter 21 of the Internal 
     Revenue Code of 1986 and section 209 of the Social Security 
     Act, no portion of qualified settlement income received by a 
     qualified taxpayer shall be treated as wages.
       (d) Qualified Taxpayer.--For purposes of this section, the 
     term ``qualified taxpayer'' means--
       (1) any individual who is a plaintiff in the civil action 
     In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D. 
     Alaska); or
       (2) any individual who is a beneficiary of the estate of 
     such a plaintiff who--
       (A) acquired the right to receive qualified settlement 
     income from that plaintiff; and
       (B) was the spouse or an immediate relative of that 
     plaintiff.
       (e) Qualified Settlement Income.--For purposes of this 
     section, the term ``qualified settlement income'' means any 
     interest and punitive damage awards which are--
       (1) otherwise includible in taxable income, and
       (2) received (whether as lump sums or periodic payments) in 
     connection with the civil action In re Exxon Valdez, No. 89-
     095-CV (HRH) (Consolidated) (D. Alaska) (whether pre- or 
     post-judgment and whether related to a settlement or 
     judgment).

               PART III--ELECTRIC TRANSMISSION FACILITIES

     SEC. 1558. TAX-EXEMPT FINANCING OF CERTAIN ELECTRIC 
                   TRANSMISSION FACILITIES.

       (a) In General.--Subsection (a) of section 142 is amended--
       (1) by striking ``or'' at the end of paragraph (14),
       (2) by striking the period at the end of paragraph (15) and 
     inserting ``, or'', and
       (3) by inserting at the end the following new paragraph:
       ``(16) qualified electric transmission facilities.''.
       (b) Definition.--Section 142 is amended by inserting at the 
     end the following new subsection:
       ``(n) Qualified Electric Transmission Facilities.--
       ``(1) In general.--For purposes of subsection (a)(16), the 
     term `qualified electric transmission facility' means any 
     electric transmission facility which is owned by--
       ``(A) a State or political subdivision of a State, or any 
     agency, authority, or instrumentality of any of the 
     foregoing, providing electric service, directly or indirectly 
     to the public, or
       ``(B) a State or political subdivision of a State expressly 
     authorized under State law to finance and own electric 
     transmission facilities.
       ``(2) Termination.--Subsection (a)(16) shall not apply with 
     respect to any bond issued after December 31, 2012.''.
       (c) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2009.

                     Subtitle E--Revenue Provisions

     SEC. 1561. DENIAL OF DEDUCTION FOR MAJOR INTEGRATED OIL 
                   COMPANIES FOR INCOME ATTRIBUTABLE TO DOMESTIC 
                   PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS 
                   THEREOF.

       (a) In General.--Subparagraph (B) of section 199(c)(4) 
     (relating to exceptions) is amended by striking ``or'' at the 
     end of clause (ii), by striking the period at the end of 
     clause (iii) and inserting ``, or'', and by inserting after 
     clause (iii) the following new clause:
       ``(iv) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product thereof during any taxable year described 
     in section 167(h)(5)(B).''.
       (b) Primary Product.--Section 199(c)(4)(B) is amended by 
     adding at the end the following flush sentence:
     ``For purposes of clause (iv), the term `primary product' has 
     the same meaning as when used in section 927(a)(2)(C), as in 
     effect before its repeal.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 1562. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN 
                   OIL AND GAS EXTRACTION INCOME AND FOREIGN OIL 
                   RELATED INCOME FOR PURPOSES OF THE FOREIGN TAX 
                   CREDIT.

       (a) In General.--Subsections (a) and (b) of section 907 
     (relating to special rules in case of foreign oil and gas 
     income) are amended to read as follows:
       ``(a) Reduction in Amount Allowed as Foreign Tax Under 
     Section 901.--In applying section 901, the amount of any 
     foreign oil and gas taxes paid or accrued (or deemed to have 
     been paid) during the taxable year which would (but for this 
     subsection) be taken into account for purposes of section 901 
     shall be reduced by the amount (if any) by which the amount 
     of such taxes exceeds the product of--
       ``(1) the amount of the combined foreign oil and gas income 
     for the taxable year,
       ``(2) multiplied by--
       ``(A) in the case of a corporation, the percentage which is 
     equal to the highest rate of tax specified under section 
     11(b), or
       ``(B) in the case of an individual, a fraction the 
     numerator of which is the tax against which the credit under 
     section 901(a) is taken and the denominator of which is the 
     taxpayer's entire taxable income.
       ``(b) Combined Foreign Oil and Gas Income; Foreign Oil and 
     Gas Taxes.--For purposes of this section--
       ``(1) Combined foreign oil and gas income.--The term 
     `combined foreign oil and gas income' means, with respect to 
     any taxable year, the sum of--
       ``(A) foreign oil and gas extraction income, and
       ``(B) foreign oil related income.
       ``(2) Foreign oil and gas taxes.--The term `foreign oil and 
     gas taxes' means, with respect to any taxable year, the sum 
     of--
       ``(A) oil and gas extraction taxes, and
       ``(B) any income, war profits, and excess profits taxes 
     paid or accrued (or deemed to have been paid or accrued under 
     section 902 or 960) during the taxable year with respect to 
     foreign oil related income (determined without regard to 
     subsection (c)(4)) or loss which would be taken into account 
     for purposes of section 901 without regard to this 
     section.''.
       (b) Recapture of Foreign Oil and Gas Losses.--Paragraph (4) 
     of section 907(c) (relating to recapture of foreign oil and 
     gas extraction losses by recharacterizing later extraction 
     income) is amended to read as follows:
       ``(4) Recapture of foreign oil and gas losses by 
     recharacterizing later combined foreign oil and gas income.--
       ``(A) In general.--The combined foreign oil and gas income 
     of a taxpayer for a taxable year (determined without regard 
     to this paragraph) shall be reduced--
       ``(i) first by the amount determined under subparagraph 
     (B), and
       ``(ii) then by the amount determined under subparagraph 
     (C).
     The aggregate amount of such reductions shall be treated as 
     income (from sources without the United States) which is not 
     combined foreign oil and gas income.
       ``(B) Reduction for pre-2008 foreign oil extraction 
     losses.--The reduction under this paragraph shall be equal to 
     the lesser of--
       ``(i) the foreign oil and gas extraction income of the 
     taxpayer for the taxable year (determined without regard to 
     this paragraph), or
       ``(ii) the excess of--

       ``(I) the aggregate amount of foreign oil extraction losses 
     for preceding taxable years beginning after December 31, 
     1982, and before January 1, 2008, over
       ``(II) so much of such aggregate amount as was 
     recharacterized under this paragraph (as in effect before and 
     after the date of the enactment of the Clean Renewable Energy 
     and Conservation Tax Act of 2007) for preceding taxable years 
     beginning after December 31, 1982.

       ``(C) Reduction for post-2007 foreign oil and gas losses.--
     The reduction under this paragraph shall be equal to the 
     lesser of--
       ``(i) the combined foreign oil and gas income of the 
     taxpayer for the taxable year (determined without regard to 
     this paragraph), reduced by an amount equal to the reduction 
     under subparagraph (A) for the taxable year, or
       ``(ii) the excess of--

       ``(I) the aggregate amount of foreign oil and gas losses 
     for preceding taxable years beginning after December 31, 
     2007, over
       ``(II) so much of such aggregate amount as was 
     recharacterized under this paragraph for preceding taxable 
     years beginning after December 31, 2007.

       ``(D) Foreign oil and gas loss defined.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `foreign oil and gas loss' means the amount by which--

       ``(I) the gross income for the taxable year from sources 
     without the United States and its possessions (whether or not 
     the taxpayer chooses the benefits of this subpart for such 
     taxable year) taken into account in determining the combined 
     foreign oil and gas income for such year, is exceeded by
       ``(II) the sum of the deductions properly apportioned or 
     allocated thereto.

       ``(ii) Net operating loss deduction not taken into 
     account.--For purposes of clause (i), the net operating loss 
     deduction allowable for the taxable year under section 172(a) 
     shall not be taken into account.
       ``(iii) Expropriation and casualty losses not taken into 
     account.--For purposes of clause (i), there shall not be 
     taken into account--

       ``(I) any foreign expropriation loss (as defined in section 
     172(h) (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990)) for the 
     taxable year, or
       ``(II) any loss for the taxable year which arises from 
     fire, storm, shipwreck, or other casualty, or from theft,

     to the extent such loss is not compensated for by insurance 
     or otherwise.
       ``(iv) Foreign oil extraction loss.--For purposes of 
     subparagraph (B)(ii)(I), foreign oil extraction losses shall 
     be determined under this paragraph as in effect on the day 
     before the date of the enactment of the Clean

[[Page 33975]]

     Renewable Energy and Conservation Tax Act of 2007.''.
       (c) Carryback and Carryover of Disallowed Credits.--Section 
     907(f) (relating to carryback and carryover of disallowed 
     credits) is amended--
       (1) by striking ``oil and gas extraction taxes'' each place 
     it appears and inserting ``foreign oil and gas taxes'', and
       (2) by adding at the end the following new paragraph:
       ``(4) Transition rules for pre-2008 and 2008 disallowed 
     credits.--
       ``(A) Pre-2008 credits.--In the case of any unused credit 
     year beginning before January 1, 2008, this subsection shall 
     be applied to any unused oil and gas extraction taxes carried 
     from such unused credit year to a year beginning after 
     December 31, 2007--
       ``(i) by substituting `oil and gas extraction taxes' for 
     `foreign oil and gas taxes' each place it appears in 
     paragraphs (1), (2), and (3), and
       ``(ii) by computing, for purposes of paragraph (2)(A), the 
     limitation under subparagraph (A) for the year to which such 
     taxes are carried by substituting `foreign oil and gas 
     extraction income' for `foreign oil and gas income' in 
     subsection (a).
       ``(B) 2008 credits.--In the case of any unused credit year 
     beginning in 2008, the amendments made to this subsection by 
     the Clean Renewable Energy and Conservation Tax Act of 2007 
     shall be treated as being in effect for any preceding year 
     beginning before January 1, 2008, solely for purposes of 
     determining how much of the unused foreign oil and gas taxes 
     for such unused credit year may be deemed paid or accrued in 
     such preceding year.''.
       (d) Conforming Amendment.--Section 6501(i) is amended by 
     striking ``oil and gas extraction taxes'' and inserting 
     ``foreign oil and gas taxes''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 1563. SEVEN-YEAR AMORTIZATION OF GEOLOGICAL AND 
                   GEOPHYSICAL EXPENDITURES FOR CERTAIN MAJOR 
                   INTEGRATED OIL COMPANIES.

       (a) In General.--Subparagraph (A) of section 167(h)(5) 
     (relating to special rule for major integrated oil companies) 
     is amended by striking ``5-year'' and inserting ``7-year''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.

     SEC. 1564. BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES 
                   TRANSACTIONS.

       (a) In General.--
       (1) Broker reporting for securities transactions.--Section 
     6045 (relating to returns of brokers) is amended by adding at 
     the end the following new subsection:
       ``(g) Additional Information Required in the Case of 
     Securities Transactions.--
       ``(1) In general.--If a broker is otherwise required to 
     make a return under subsection (a) with respect to the gross 
     proceeds of the sale of a covered security, the broker shall 
     include in such return the information described in paragraph 
     (2).
       ``(2) Additional information required.--
       ``(A) In general.--The information required under paragraph 
     (1) to be shown on a return with respect to a covered 
     security of a customer shall include the customer's adjusted 
     basis in such security and whether any gain or loss with 
     respect to such security is long-term or short-term (within 
     the meaning of section 1222).
       ``(B) Determination of adjusted basis.--For purposes of 
     subparagraph (A)--
       ``(i) In general.--The customer's adjusted basis shall be 
     determined--

       ``(I) in the case of any stock (other than any stock in an 
     open-end fund), in accordance with the first-in first-out 
     method unless the customer notifies the broker by means of 
     making an adequate identification of the stock sold or 
     transferred,
       ``(II) in the case of any stock in an open-end fund 
     acquired before January 1, 2011, in accordance with any 
     acceptable method under section 1012 with respect to the 
     account in which such interest is held,
       ``(III) in the case of any stock in an open-end fund 
     acquired after December 31, 2010, in accordance with the 
     broker's default method unless the customer notifies the 
     broker that he elects another acceptable method under section 
     1012 with respect to the account in which such interest is 
     held, and
       ``(IV) in any other case, under the method for making such 
     determination under section 1012.

       ``(ii) Exception for wash sales.--Except as otherwise 
     provided by the Secretary, the customer's adjusted basis 
     shall be determined without regard to section 1091 (relating 
     to loss from wash sales of stock or securities) unless the 
     transactions occur in the same account with respect to 
     identical securities.
       ``(3) Covered security.--For purposes of this subsection--
       ``(A) In general.--The term `covered security' means any 
     specified security acquired on or after the applicable date 
     if such security--
       ``(i) was acquired through a transaction in the account in 
     which such security is held, or
       ``(ii) was transferred to such account from an account in 
     which such security was a covered security, but only if the 
     broker received a statement under section 6045A with respect 
     to the transfer.
       ``(B) Specified security.--The term `specified security' 
     means--
       ``(i) any share of stock in a corporation,
       ``(ii) any note, bond, debenture, or other evidence of 
     indebtedness,
       ``(iii) any commodity, or contract or derivative with 
     respect to such commodity, if the Secretary determines that 
     adjusted basis reporting is appropriate for purposes of this 
     subsection, and
       ``(iv) any other financial instrument with respect to which 
     the Secretary determines that adjusted basis reporting is 
     appropriate for purposes of this subsection.
       ``(C) Applicable date.--The term `applicable date' means--
       ``(i) January 1, 2009, in the case of any specified 
     security which is stock in a corporation, and
       ``(ii) January 1, 2011, or such later date determined by 
     the Secretary in the case of any other specified security.
       ``(4) Open-end fund.--For purposes of this subsection, the 
     term `open-end fund' means a regulated investment company (as 
     defined in section 851) which is offering for sale or has 
     outstanding any redeemable security of which it is the issuer 
     and the shares of which are not traded on an established 
     securities exchange.
       ``(5) Treatment of s corporations.--In the case of the sale 
     of a covered security acquired by an S corporation (other 
     than a financial institution) after December 31, 2010, such S 
     corporation shall be treated in the same manner as a 
     partnership for purposes of this section.
       ``(6) Special rules for short sales.--
       ``(A) In general.--Notwithstanding subsection (a), in the 
     case of a short sale under section 1233, reporting under this 
     section shall be made for the year in which such sale is 
     closed.
       ``(B) Exception for constructive sales.--Subparagraph (A) 
     shall not apply to any short sale which results in a 
     constructive sale under section 1259 with respect to property 
     held in the account in which the short sale is entered 
     into.''.
       (2) Broker information required with respect to options.--
     Section 6045, as amended by subsection (a), is amended by 
     adding at the end the following new subsection:
       ``(h) Application to Options on Securities.--
       ``(1) Exercise of option.--For purposes of this section, in 
     the case of any exercise of an option on a covered security 
     where the option was granted or acquired in the same account 
     as the covered security, the amount received or paid with 
     respect to such exercise shall be treated as an adjustment to 
     gross proceeds or as an adjustment to basis, as the case may 
     be.
       ``(2) Lapse or closing transaction.--For purposes of this 
     section, in the case of the lapse (or closing transaction (as 
     defined in section 1234(b)(2)(A))) of an option on a 
     specified security where the taxpayer is the grantor of the 
     option, this section shall apply as if the premium received 
     for such option were gross proceeds received on the date of 
     the lapse or closing transaction, and the cost (if any) of 
     the closing transaction shall be taken into account as 
     adjusted basis. In the case of an option on a specified 
     security where the taxpayer is the grantee of such option, 
     this section shall apply as if the grantee received gross 
     proceeds of zero on the date of the lapse.
       ``(3) Prospective application.--Paragraphs (1) and (2) 
     shall not apply to any option which is granted or acquired 
     before January 1, 2011.
       ``(4) Definitions.--For purposes of this subsection, the 
     terms `covered security' and `specified security' shall have 
     the meanings given such terms in subsection (g)(3).''.
       (3) Extension of period for statements sent to customers.--
       (A) In general.--Subsection (b) of section 6045 is amended 
     by striking ``January 31'' and inserting ``February 15 
     (January 31 in the case of returns for calendar years before 
     2010)''.
       (B) Statements related to substitute payments.--Subsection 
     (d) of section 6045 is amended--
       (i) by striking ``at such time and'', and
       (ii) by inserting after ``other item.'' the following new 
     sentence: ``In the case of a payment made during any calendar 
     year after 2009, the written statement required under the 
     preceding sentence shall be furnished on or before February 
     15 of the year following the calendar year in which the 
     payment was made.''.
       (C) Other statements.--Subsection (b) of section 6045 is 
     amended by adding at the end the following: ``In the case of 
     a consolidated reporting statement (as defined in 
     regulations) with respect to any account which includes the 
     statement required by this subsection, any statement which 
     would otherwise be required to be furnished on or before 
     January 31 of a calendar year after 2010 under section 
     6042(c), 6049(c)(2)(A), or 6050N(b) with respect to any item 
     in such account shall instead be required to be furnished on 
     or before February 15 of such calendar year if furnished as 
     part of such consolidated reporting statement.''.

[[Page 33976]]

       (b) Determination of Basis of Certain Securities on Account 
     by Account Method.--Section 1012 (relating to basis of 
     property-cost) is amended--
       (1) by striking ``The basis of property'' and inserting the 
     following:
       ``(a) In General.--The basis of property'',
       (2) by striking ``The cost of real property'' and inserting 
     the following:
       ``(b) Special Rule for Apportioned Real Estate Taxes.--The 
     cost of real property'', and
       (3) by adding at the end the following new subsection:
       ``(c) Determinations by Account.--
       ``(1) In general.--In the case of the sale, exchange, or 
     other disposition of a specified security on or after the 
     applicable date, the conventions prescribed by regulations 
     under this section shall be applied on an account by account 
     basis.
       ``(2) Application to open-end funds.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any stock in an open-end fund acquired before January 1, 
     2009, shall be treated as a separate account from any such 
     stock acquired on or after such date.
       ``(B) Election by open-end fund for treatment as single 
     account.--If an open-end fund elects (at such time and in 
     such form and manner as the Secretary may prescribe) to have 
     this subparagraph apply with respect to one or more of its 
     stockholders--
       ``(i) subparagraph (A) shall not apply with respect to any 
     stock in such fund held by such stockholders, and
       ``(ii) all stock in such fund which is held by such 
     stockholders shall be treated as covered securities described 
     in section 6045(g)(3) without regard to the date of the 
     acquisition of such stock.
     A rule similar to the rule of the preceding sentence shall 
     apply with respect to a broker holding stock in an open-end 
     fund as a nominee.
       ``(3) Definitions.--For purposes of this section, the terms 
     `specified security', `applicable date', and `open-end fund' 
     shall have the meaning given such terms in section 
     6045(g).''.
       (c) Information by Transferors To Aid Brokers.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 is amended by inserting after section 6045 the 
     following new section:

     ``SEC. 6045A. INFORMATION REQUIRED IN CONNECTION WITH 
                   TRANSFERS OF COVERED SECURITIES TO BROKERS.

       ``(a) Furnishing of Information.--Every applicable person 
     which transfers to a broker (as defined in section 
     6045(c)(1)) a security which is a covered security (as 
     defined in section 6045(g)(3)) in the hands of such 
     applicable person shall furnish to such broker a written 
     statement in such manner and setting forth such information 
     as the Secretary may by regulations prescribe for purposes of 
     enabling such broker to meet the requirements of section 
     6045(g).
       ``(b) Applicable Person.--For purposes of subsection (a), 
     the term `applicable person' means--
       ``(1) any broker (as defined in section 6045(c)(1)), and
       ``(2) any other person as provided by the Secretary in 
     regulations.
       ``(c) Time for Furnishing Statement.--Any statement 
     required by subsection (a) shall be furnished not later than 
     the earlier of--
       ``(1) 45 days after the date of the transfer described in 
     subsection (a), or
       ``(2) January 15 of the year following the calendar year 
     during which such transfer occurred.''.
       (2) Assessable penalties.--Paragraph (2) of section 6724(d) 
     (defining payee statement) is amended by redesignating 
     subparagraphs (I) through (CC) as subparagraphs (J) through 
     (DD), respectively, and by inserting after subparagraph (H) 
     the following new subparagraph:
       ``(I) section 6045A (relating to information required in 
     connection with transfers of covered securities to 
     brokers).''.
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 is amended by 
     inserting after the item relating to section 6045 the 
     following new item:

``Sec. 6045A. Information required in connection with transfers of 
              covered securities to brokers.''.

       (d) Additional Issuer Information to Aid Brokers.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986, as amended 
     by subsection (b), is amended by inserting after section 
     6045A the following new section:

     ``SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING BASIS OF 
                   SPECIFIED SECURITIES.

       ``(a) In General.--According to the forms or regulations 
     prescribed by the Secretary, any issuer of a specified 
     security shall make a return setting forth--
       ``(1) a description of any organizational action which 
     affects the basis of such specified security of such issuer,
       ``(2) the quantitative effect on the basis of such 
     specified security resulting from such action, and
       ``(3) such other information as the Secretary may 
     prescribe.
       ``(b) Time for Filing Return.--Any return required by 
     subsection (a) shall be filed not later than the earlier of--
       ``(1) 45 days after the date of the action described in 
     subsection (a), or
       ``(2) January 15 of the year following the calendar year 
     during which such action occurred.
       ``(c) Statements To Be Furnished to Holders of Specified 
     Securities or Their Nominees.--According to the forms or 
     regulations prescribed by the Secretary, every person 
     required to make a return under subsection (a) with respect 
     to a specified security shall furnish to the nominee with 
     respect to the specified security (or certificate holder if 
     there is no nominee) a written statement showing--
       ``(1) the name, address, and phone number of the 
     information contact of the person required to make such 
     return,
       ``(2) the information required to be shown on such return 
     with respect to such security, and
       ``(3) such other information as the Secretary may 
     prescribe.
     The written statement required under the preceding sentence 
     shall be furnished to the holder on or before January 15 of 
     the year following the calendar year during which the action 
     described in subsection (a) occurred.
       ``(d) Specified Security.--For purposes of this section, 
     the term `specified security' has the meaning given such term 
     by section 6045(g)(3)(B). No return shall be required under 
     this section with respect to actions described in subsection 
     (a) with respect to a specified security which occur before 
     the applicable date (as defined in section 6045(g)(3)(C)) 
     with respect to such security.
       ``(e) Public Reporting in Lieu of Return.--The Secretary 
     may waive the requirements under subsections (a) and (c) with 
     respect to a specified security, if the person required to 
     make the return under subsection (a) makes publicly 
     available, in such form and manner as the Secretary 
     determines necessary to carry out the purposes of this 
     section--
       ``(1) the name, address, phone number, and email address of 
     the information contact of such person, and
       ``(2) the information described in paragraphs (1), (2), and 
     (3) of subsection (a).''.
       (2) Assessable penalties.--
       (A) Subparagraph (B) of section 6724(d)(1) of such Code 
     (defining information return) is amended by redesignating 
     clauses (iv) through (xix) as clauses (v) through (xx), 
     respectively, and by inserting after clause (iii) the 
     following new clause:
       ``(iv) section 6045B(a) (relating to returns relating to 
     actions affecting basis of specified securities),''.
       (B) Paragraph (2) of section 6724(d) of such Code (defining 
     payee statement), as amended by subsection (c)(2), is amended 
     by redesignating subparagraphs (J) through (DD) as 
     subparagraphs (K) through (EE), respectively, and by 
     inserting after subparagraph (I) the following new 
     subparagraph:
       ``(J) subsections (c) and (e) of section 6045B (relating to 
     returns relating to actions affecting basis of specified 
     securities).''.
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 of such Code, as 
     amended by subsection (b)(3), is amended by inserting after 
     the item relating to section 6045A the following new item:

``Sec. 6045B. Returns relating to actions affecting basis of specified 
              securities.''.

       (e) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2009.
       (f) Study Regarding Information Returns.--
       (1) In general.--The Secretary of the Treasury shall study 
     the effect and feasibility of delaying the date for 
     furnishing statements under sections 6042(c), 6045, 
     6049(c)(2)(A), and 6050N(b) of the Internal Revenue Code of 
     1986 until February 15 following the year to which such 
     statements relate.
       (2) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Secretary of the Treasury shall 
     report to Congress on the results of the study conducted 
     under paragraph (1). Such report shall include the 
     Secretary's findings regarding--
       (A) the effect on tax administration of such delay, and
       (B) other administrative or legislative options to improve 
     compliance and ease burdens on taxpayers and brokers with 
     respect to such statements.

     SEC. 1565. EXTENSION OF ADDITIONAL 0.2 PERCENT FUTA SURTAX.

       (a) In General.--Section 3301 (relating to rate of tax) is 
     amended--
       (1) by striking ``2007'' in paragraph (1) and inserting 
     ``2008'', and
       (2) by striking ``2008'' in paragraph (2) and inserting 
     ``2009''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to wages paid after December 31, 2007.

     SEC. 1566. REPEAL OF SUSPENSION OF CERTAIN PENALTIES AND 
                   INTEREST.

       (a) In General.--Section 6404 is amended by striking 
     subsection (g) and by redesignating subsection (h) as 
     subsection (g).
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to notices provided by the Secretary of the 
     Treasury, or his delegate, after December 20, 2007.

[[Page 33977]]



     SEC. 1567. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under subparagraph (B) of section 401(1) of 
     the Tax Increase Prevention and Reconciliation Act of 2005 in 
     effect on the date of the enactment of this Act is increased 
     by 6.25 percentage points.

     SEC. 1568. MODIFICATION OF PENALTY FOR FAILURE TO FILE 
                   PARTNERSHIP RETURNS.

       (a) Extension of Time Limitation.--Section 6698(a) 
     (relating to failure to file partnership returns) is amended 
     by striking ``5 months'' and inserting ``12 months''.
       (b) Increase in Penalty Amount.--Paragraph (1) of section 
     6698(b) is amended by striking ``$50'' and inserting 
     ``$100''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns required to be filed after the date of 
     the enactment of this Act.

     SEC. 1569. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS 
                   ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH 
                   CONTRIBUTIONS.

       (a) In General.--Section 402A(e)(1) (defining applicable 
     retirement plan) is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following:
       ``(C) an eligible deferred compensation plan (as defined in 
     section 457(b)) of an eligible employer described in section 
     457(e)(1)(A).''.
       (b) Elective Deferrals.--Section 402A(e)(2) (defining 
     elective deferral) is amended to read as follows:
       ``(2) Elective deferral.--The term `elective deferral' 
     means--
       ``(A) any elective deferral described in subparagraph (A) 
     or (C) of section 402(g)(3), and
       ``(B) any elective deferral of compensation by an 
     individual under an eligible deferred compensation plan (as 
     defined in section 457(b)) of an eligible employer described 
     in section 457(e)(1)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

                    Subtitle F--Secure Rural Schools

     SEC. 1571. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                   DETERMINATION PROGRAM.

       (a) Reauthorization of the Secure Rural Schools and 
     Community Self-Determination Act of 2000.--The Secure Rural 
     Schools and Community Self-Determination Act of 2000 (16 
     U.S.C. 500 note; Public Law 106-393) is amended by striking 
     sections 1 through 403 and inserting the following:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Secure Rural Schools and 
     Community Self-Determination Act of 2000'.

     ``SEC. 2. PURPOSES.

       ``The purposes of this Act are--
       ``(1) to stabilize and transition payments to counties to 
     provide funding for schools and roads that supplements other 
     available funds;
       ``(2) to make additional investments in, and create 
     additional employment opportunities through, projects that--
       ``(A)(i) improve the maintenance of existing 
     infrastructure;
       ``(ii) implement stewardship objectives that enhance forest 
     ecosystems; and
       ``(iii) restore and improve land health and water quality;
       ``(B) enjoy broad-based support; and
       ``(C) have objectives that may include--
       ``(i) road, trail, and infrastructure maintenance or 
     obliteration;
       ``(ii) soil productivity improvement;
       ``(iii) improvements in forest ecosystem health;
       ``(iv) watershed restoration and maintenance;
       ``(v) the restoration, maintenance, and improvement of 
     wildlife and fish habitat;
       ``(vi) the control of noxious and exotic weeds; and
       ``(vii) the reestablishment of native species; and
       ``(3) to improve cooperative relationships among--
       ``(A) the people that use and care for Federal land; and
       ``(B) the agencies that manage the Federal land.

     ``SEC. 3. DEFINITIONS.

       ``In this Act:
       ``(1) Adjusted share.--The term `adjusted share' means the 
     number equal to the quotient obtained by dividing--
       ``(A) the number equal to the quotient obtained by 
     dividing--
       ``(i) the base share for the eligible county; by
       ``(ii) the income adjustment for the eligible county; by
       ``(B) the number equal to the sum of the quotients obtained 
     under subparagraph (A) and paragraph (8)(A) for all eligible 
     counties.
       ``(2) Base share.--The term `base share' means the number 
     equal to the average of--
       ``(A) the quotient obtained by dividing--
       ``(i) the number of acres of Federal land described in 
     paragraph (7)(A) in each eligible county; by
       ``(ii) the total number acres of Federal land in all 
     eligible counties in all eligible States; and
       ``(B) the quotient obtained by dividing--
       ``(i) the amount equal to the average of the 3 highest 25-
     percent payments and safety net payments made to each 
     eligible State for each eligible county during the 
     eligibility period; by
       ``(ii) the amount equal to the sum of the amounts 
     calculated under clause (i) and paragraph (9)(B)(i) for all 
     eligible counties in all eligible States during the 
     eligibility period.
       ``(3) County payment.--The term `county payment' means the 
     payment for an eligible county calculated under section 
     101(b).
       ``(4) Eligible county.--The term `eligible county' means 
     any county that--
       ``(A) contains Federal land (as defined in paragraph (7)); 
     and
       ``(B) elects to receive a share of the State payment or the 
     county payment under section 102(b).
       ``(5) Eligibility period.--The term `eligibility period' 
     means fiscal year 1986 through fiscal year 1999.
       ``(6) Eligible state.--The term `eligible State' means a 
     State or territory of the United States that received a 25-
     percent payment for 1 or more fiscal years of the eligibility 
     period.
       ``(7) Federal land.--The term `Federal land' means--
       ``(A) land within the National Forest System, as defined in 
     section 11(a) of the Forest and Rangeland Renewable Resources 
     Planning Act of 1974 (16 U.S.C. 1609(a)) exclusive of the 
     National Grasslands and land utilization projects designated 
     as National Grasslands administered pursuant to the Act of 
     July 22, 1937 (7 U.S.C. 1010-1012); and
       ``(B) such portions of the revested Oregon and California 
     Railroad and reconveyed Coos Bay Wagon Road grant land as are 
     or may hereafter come under the jurisdiction of the 
     Department of the Interior, which have heretofore or may 
     hereafter be classified as timberlands, and power-site land 
     valuable for timber, that shall be managed, except as 
     provided in the former section 3 of the Act of August 28, 
     1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest 
     production.
       ``(8) 50-Percent adjusted share.--The term `50-percent 
     adjusted share' means the number equal to the quotient 
     obtained by dividing--
       ``(A) the number equal to the quotient obtained by 
     dividing--
       ``(i) the 50-percent base share for the eligible county; by
       ``(ii) the income adjustment for the eligible county; by
       ``(B) the number equal to the sum of the quotients obtained 
     under subparagraph (A) and paragraph (1)(A) for all eligible 
     counties.
       ``(9) 50-Percent base share.--The term `50-percent base 
     share' means the number equal to the average of--
       ``(A) the quotient obtained by dividing--
       ``(i) the number of acres of Federal land described in 
     paragraph (7)(B) in each eligible county; by
       ``(ii) the total number acres of Federal land in all 
     eligible counties in all eligible States; and
       ``(B) the quotient obtained by dividing--
       ``(i) the amount equal to the average of the 3 highest 50-
     percent payments made to each eligible county during the 
     eligibility period; by
       ``(ii) the amount equal to the sum of the amounts 
     calculated under clause (i) and paragraph (2)(B)(i) for all 
     eligible counties in all eligible States during the 
     eligibility period.
       ``(10) 50-percent payment.--The term `50-percent payment' 
     means the payment that is the sum of the 50-percent share 
     otherwise paid to a county pursuant to title II of the Act of 
     August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), 
     and the payment made to a county pursuant to the Act of May 
     24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et 
     seq.).
       ``(11) Full funding amount.--The term `full funding amount' 
     means--
       ``(A) $500,000,000 for fiscal year 2008; and
       ``(B) for fiscal year 2009 and each fiscal year thereafter, 
     the amount that is equal to 85 percent of the full funding 
     amount for the preceding fiscal year.
       ``(12) Income adjustment.--The term `income adjustment' 
     means the square of the quotient obtained by dividing--
       ``(A) the per capita personal income for each eligible 
     county; by
       ``(B) the median per capita personal income of all eligible 
     counties.
       ``(13) Per capita personal income.--The term `per capita 
     personal income' means the most recent per capita personal 
     income data, as determined by the Bureau of Economic 
     Analysis.
       ``(14) Safety net payments.--The term `safety net payments' 
     means the special payment amounts paid to States and counties 
     required by section 13982 or 13983 of the Omnibus Budget 
     Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500 
     note; 43 U.S.C. 1181f note).
       ``(15) Secretary concerned.--The term `Secretary concerned' 
     means--
       ``(A) the Secretary of Agriculture or the designee of the 
     Secretary of Agriculture with respect to the Federal land 
     described in paragraph (7)(A); and
       ``(B) the Secretary of the Interior or the designee of the 
     Secretary of the Interior with respect to the Federal land 
     described in paragraph (7)(B).

[[Page 33978]]

       ``(16) State payment.--The term `State payment' means the 
     payment for an eligible State calculated under section 
     101(a).
       ``(17) 25-Percent payment.--The term `25-percent payment' 
     means the payment to States required by the sixth paragraph 
     under the heading of `FOREST SERVICE' in the Act of May 23, 
     1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act 
     of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).

 ``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                  LAND

     ``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL 
                   LAND.

       ``(a) State Payment.--For each of fiscal years 2008 through 
     2011, the Secretary of Agriculture shall calculate for each 
     eligible State an amount equal to the sum of the products 
     obtained by multiplying--
       ``(1) the adjusted share for each eligible county within 
     the eligible State; by
       ``(2) the full funding amount for the fiscal year.
       ``(b) County Payment.--For each of fiscal years 2008 
     through 2011, the Secretary of the Interior shall calculate 
     for each eligible county that received a 50-percent payment 
     during the eligibility period an amount equal to the product 
     obtained by multiplying--
       ``(1) the 50-percent adjusted share for the eligible 
     county; by
       ``(2) the full funding amount for the fiscal year.

     ``SEC. 102. PAYMENTS TO STATES AND COUNTIES.

       ``(a) Payment Amounts.--Except as provided in section 103, 
     the Secretary of the Treasury shall pay to--
       ``(1) a State or territory of the United States an amount 
     equal to the sum of the amounts elected under subsection (b) 
     by each county within the State or territory for--
       ``(A) if the county is eligible for the 25-percent payment, 
     the share of the 25-percent payment; or
       ``(B) the share of the State payment of the eligible 
     county; and
       ``(2) a county an amount equal to the amount elected under 
     subsection (b) by each county for--
       ``(A) if the county is eligible for the 50-percent payment, 
     the 50-percent payment; or
       ``(B) the county payment for the eligible county.
       ``(b) Election To Receive Payment Amount.--
       ``(1) Election; submission of results.--
       ``(A) In general.--The election to receive a share of the 
     State payment, the county payment, a share of the State 
     payment and the county payment, a share of the 25-percent 
     payment, the 50-percent payment, or a share of the 25-percent 
     payment and the 50-percent payment, as applicable, shall be 
     made at the discretion of each affected county by August 1, 
     2008, and August 1 of each second fiscal year thereafter, in 
     accordance with paragraph (2), and transmitted to the 
     Secretary concerned by the Governor of each eligible State.
       ``(B) Failure to transmit.--If an election for an affected 
     county is not transmitted to the Secretary concerned by the 
     date specified under subparagraph (A), the affected county 
     shall be considered to have elected to receive a share of the 
     State payment, the county payment, or a share of the State 
     payment and the county payment, as applicable.
       ``(2) Duration of election.--
       ``(A) In general.--A county election to receive a share of 
     the 25-percent payment or 50-percent payment, as applicable, 
     shall be effective for 2 fiscal years.
       ``(B) Full funding amount.--If a county elects to receive a 
     share of the State payment or the county payment, the 
     election shall be effective for all subsequent fiscal years 
     through fiscal year 2011.
       ``(3) Source of payment amounts.--The payment to an 
     eligible State or eligible county under this section for a 
     fiscal year shall be derived from--
       ``(A) any revenues, fees, penalties, or miscellaneous 
     receipts, exclusive of deposits to any relevant trust fund, 
     special account, or permanent operating funds, received by 
     the Federal Government from activities by the Bureau of Land 
     Management or the Forest Service on the applicable Federal 
     land; and
       ``(B) to the extent of any shortfall, out of any amounts in 
     the Treasury of the United States not otherwise appropriated.
       ``(c) Distribution and Expenditure of Payments.--
       ``(1) Distribution method.--A State that receives a payment 
     under subsection (a) for Federal land described in section 
     3(7)(A) shall distribute the appropriate payment amount among 
     the appropriate counties in the State in accordance with--
       ``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
       ``(B) section 13 of the Act of March 1, 1911 (36 Stat. 963; 
     16 U.S.C. 500).
       ``(2) Expenditure purposes.--Subject to subsection (d), 
     payments received by a State under subsection (a) and 
     distributed to counties in accordance with paragraph (1) 
     shall be expended as required by the laws referred to in 
     paragraph (1).
       ``(d) Expenditure Rules for Eligible Counties.--
       ``(1) Allocations.--
       ``(A) Use of portion in same manner as 25-percent payment 
     or 50-percent payment, as applicable.--Except as provided in 
     paragraph (3)(B), if an eligible county elects to receive its 
     share of the State payment or the county payment, not less 
     than 80 percent, but not more than 85 percent, of the funds 
     shall be expended in the same manner in which the 25-percent 
     payments or 50-percent payment, as applicable, are required 
     to be expended.
       ``(B) Election as to use of balance.--Except as provided in 
     subparagraph (C), an eligible county shall elect to do 1 or 
     more of the following with the balance of any funds not 
     expended pursuant to subparagraph (A):
       ``(i) Reserve any portion of the balance for projects in 
     accordance with title II.
       ``(ii) Reserve not more than 7 percent of the total share 
     for the eligible county of the State payment or the county 
     payment for projects in accordance with title III.
       ``(iii) Return the portion of the balance not reserved 
     under clauses (i) and (ii) to the Treasury of the United 
     States.
       ``(C) Counties with modest distributions.--In the case of 
     each eligible county to which more than $100,000, but less 
     than $350,000, is distributed for any fiscal year pursuant to 
     either or both of paragraphs (1)(B) and (2)(B) of subsection 
     (a), the eligible county, with respect to the balance of any 
     funds not expended pursuant to subparagraph (A) for that 
     fiscal year, shall--
       ``(i) reserve any portion of the balance for--

       ``(I) carrying out projects under title II;
       ``(II) carrying out projects under title III; or
       ``(III) a combination of the purposes described in 
     subclauses (I) and (II); or

       ``(ii) return the portion of the balance not reserved under 
     clause (i) to the Treasury of the United States.
       ``(2) Distribution of funds.--
       ``(A) In general.--Funds reserved by an eligible county 
     under subparagraph (B)(i) or (C)(i) of paragraph (1) for 
     carrying out projects under title II shall be deposited in a 
     special account in the Treasury of the United States.
       ``(B) Availability.--Amounts deposited under subparagraph 
     (A) shall--
       ``(i) be available for expenditure by the Secretary 
     concerned, without further appropriation; and
       ``(ii) remain available until expended in accordance with 
     title II.
       ``(3) Election.--
       ``(A) Notification.--
       ``(i) In general.--An eligible county shall notify the 
     Secretary concerned of an election by the eligible county 
     under this subsection not later than September 30 of each 
     fiscal year.
       ``(ii) Failure to elect.--Except as provided in 
     subparagraph (B), if the eligible county fails to make an 
     election by the date specified in clause (i), the eligible 
     county shall--

       ``(I) be considered to have elected to expend 85 percent of 
     the funds in accordance with paragraph (1)(A); and
       ``(II) return the balance to the Treasury of the United 
     States.

       ``(B) Counties with minor distributions.--In the case of 
     each eligible county to which less than $100,000 is 
     distributed for any fiscal year pursuant to either or both of 
     paragraphs (1)(B) and (2)(B) of subsection (a), the eligible 
     county may elect to expend all the funds in the same manner 
     in which the 25-percent payments or 50-percent payments, as 
     applicable, are required to be expended.
       ``(e) Time for Payment.--The payments required under this 
     section for a fiscal year shall be made as soon as 
     practicable after the end of that fiscal year.

     ``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA, 
                   OREGON, AND WASHINGTON.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted amount.--The term `adjusted amount' means, 
     with respect to a covered State--
       ``(A) for fiscal year 2008, 90 percent of--
       ``(i) the sum of the amounts paid for fiscal year 2006 
     under section 102(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the covered State that have 
     elected under section 102(b) to receive a share of the State 
     payment for fiscal year 2008; and
       ``(ii) the sum of the amounts paid for fiscal year 2006 
     under section 103(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the State of Oregon that have 
     elected under section 102(b) to receive the county payment 
     for fiscal year 2008;
       ``(B) for fiscal year 2009, 76 percent of--
       ``(i) the sum of the amounts paid for fiscal year 2006 
     under section 102(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the covered State that have 
     elected under section 102(b) to receive a share of the State 
     payment for fiscal year 2009; and
       ``(ii) the sum of the amounts paid for fiscal year 2006 
     under section 103(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the State of Oregon that have 
     elected under section 102(b) to receive the county payment 
     for fiscal year 2009; and
       ``(C) for fiscal year 2010, 65 percent of--
       ``(i) the sum of the amounts paid for fiscal year 2006 
     under section 102(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the covered State that have 
     elected under section 102(b) to receive a share of the State 
     payment for fiscal year 2010; and

[[Page 33979]]

       ``(ii) the sum of the amounts paid for fiscal year 2006 
     under section 103(a)(2) (as in effect on September 29, 2006) 
     for the eligible counties in the State of Oregon that have 
     elected under section 102(b) to receive the county payment 
     for fiscal year 2010.
       ``(2) Covered state.--The term `covered State' means each 
     of the States of California, Oregon, and Washington.
       ``(b) Transition Payments.--For each of fiscal years 2008 
     through 2010, in lieu of the payment amounts that otherwise 
     would have been made under paragraphs (1)(B) and (2)(B) of 
     section 102(a), the Secretary of the Treasury shall pay the 
     adjusted amount to each covered State and the eligible 
     counties within the covered State, as applicable.
       ``(c) Distribution of Adjusted Amount in Oregon and 
     Washington.--It is the intent of Congress that the method of 
     distributing the payments under subsection (b) among the 
     counties in the States of Oregon and Washington for each of 
     fiscal years 2008 through 2010 be in the same proportion that 
     the payments were distributed to the eligible counties in 
     fiscal year 2006.
       ``(d) Distribution of Payments in California.--The 
     following payments shall be distributed among the eligible 
     counties in the State of California in the same proportion 
     that payments under section 102(a)(2) (as in effect on 
     September 29, 2006) were distributed to the eligible counties 
     for fiscal year 2006:
       ``(1) Payments to the State of California under subsection 
     (b).
       ``(2) The shares of the eligible counties of the State 
     payment for California under section 102 for fiscal year 
     2011.
       ``(e) Treatment of Payments.--For purposes of this Act, any 
     payment made under subsection (b) shall be considered to be a 
     payment made under section 102(a).

              ``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND

     ``SEC. 201. DEFINITIONS.

       ``In this title:
       ``(1) Participating county.--The term `participating 
     county' means an eligible county that elects under section 
     102(d) to expend a portion of the Federal funds received 
     under section 102 in accordance with this title.
       ``(2) Project funds.--The term `project funds' means all 
     funds an eligible county elects under section 102(d) to 
     reserve for expenditure in accordance with this title.
       ``(3) Resource advisory committee.--The term `resource 
     advisory committee' means--
       ``(A) an advisory committee established by the Secretary 
     concerned under section 205; or
       ``(B) an advisory committee determined by the Secretary 
     concerned to meet the requirements of section 205.
       ``(4) Resource management plan.--The term `resource 
     management plan' means--
       ``(A) a land use plan prepared by the Bureau of Land 
     Management for units of the Federal land described in section 
     3(7)(B) pursuant to section 202 of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1712); or
       ``(B) a land and resource management plan prepared by the 
     Forest Service for units of the National Forest System 
     pursuant to section 6 of the Forest and Rangeland Renewable 
     Resources Planning Act of 1974l (16 U.S.C. 1604).

     ``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.

       ``(a) Limitation.--Project funds shall be expended solely 
     on projects that meet the requirements of this title.
       ``(b) Authorized Uses.--Project funds may be used by the 
     Secretary concerned for the purpose of entering into and 
     implementing cooperative agreements with willing Federal 
     agencies, State and local governments, private and nonprofit 
     entities, and landowners for protection, restoration, and 
     enhancement of fish and wildlife habitat, and other resource 
     objectives consistent with the purposes of this Act on 
     Federal land and on non-Federal land where projects would 
     benefit the resources on Federal land.

     ``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

       ``(a) Submission of Project Proposals to Secretary 
     Concerned.--
       ``(1) Projects funded using project funds.--Not later than 
     September 30 for fiscal year 2008, and each September 30 
     thereafter for each succeeding fiscal year through fiscal 
     year 2011, each resource advisory committee shall submit to 
     the Secretary concerned a description of any projects that 
     the resource advisory committee proposes the Secretary 
     undertake using any project funds reserved by eligible 
     counties in the area in which the resource advisory committee 
     has geographic jurisdiction.
       ``(2) Projects funded using other funds.--A resource 
     advisory committee may submit to the Secretary concerned a 
     description of any projects that the committee proposes the 
     Secretary undertake using funds from State or local 
     governments, or from the private sector, other than project 
     funds and funds appropriated and otherwise available to do 
     similar work.
       ``(3) Joint projects.--Participating counties or other 
     persons may propose to pool project funds or other funds, 
     described in paragraph (2), and jointly propose a project or 
     group of projects to a resource advisory committee 
     established under section 205.
       ``(b) Required Description of Projects.--In submitting 
     proposed projects to the Secretary concerned under subsection 
     (a), a resource advisory committee shall include in the 
     description of each proposed project the following 
     information:
       ``(1) The purpose of the project and a description of how 
     the project will meet the purposes of this title.
       ``(2) The anticipated duration of the project.
       ``(3) The anticipated cost of the project.
       ``(4) The proposed source of funding for the project, 
     whether project funds or other funds.
       ``(5)(A) Expected outcomes, including how the project will 
     meet or exceed desired ecological conditions, maintenance 
     objectives, or stewardship objectives.
       ``(B) An estimate of the amount of any timber, forage, and 
     other commodities and other economic activity, including jobs 
     generated, if any, anticipated as part of the project.
       ``(6) A detailed monitoring plan, including funding needs 
     and sources, that--
       ``(A) tracks and identifies the positive or negative 
     impacts of the project, implementation, and provides for 
     validation monitoring; and
       ``(B) includes an assessment of the following:
       ``(i) Whether or not the project met or exceeded desired 
     ecological conditions; created local employment or training 
     opportunities, including summer youth jobs programs such as 
     the Youth Conservation Corps where appropriate.
       ``(ii) Whether the project improved the use of, or added 
     value to, any products removed from land consistent with the 
     purposes of this title.
       ``(7) An assessment that the project is to be in the public 
     interest.
       ``(c) Authorized Projects.--Projects proposed under 
     subsection (a) shall be consistent with section 2.

     ``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY 
                   CONCERNED.

       ``(a) Conditions for Approval of Proposed Project.--The 
     Secretary concerned may make a decision to approve a project 
     submitted by a resource advisory committee under section 203 
     only if the proposed project satisfies each of the following 
     conditions:
       ``(1) The project complies with all applicable Federal laws 
     (including regulations).
       ``(2) The project is consistent with the applicable 
     resource management plan and with any watershed or subsequent 
     plan developed pursuant to the resource management plan and 
     approved by the Secretary concerned.
       ``(3) The project has been approved by the resource 
     advisory committee in accordance with section 205, including 
     the procedures issued under subsection (e) of that section.
       ``(4) A project description has been submitted by the 
     resource advisory committee to the Secretary concerned in 
     accordance with section 203.
       ``(5) The project will improve the maintenance of existing 
     infrastructure, implement stewardship objectives that enhance 
     forest ecosystems, and restore and improve land health and 
     water quality.
       ``(b) Environmental Reviews.--
       ``(1) Request for payment by county.--The Secretary 
     concerned may request the resource advisory committee 
     submitting a proposed project to agree to the use of project 
     funds to pay for any environmental review, consultation, or 
     compliance with applicable environmental laws required in 
     connection with the project.
       ``(2) Conduct of environmental review.--If a payment is 
     requested under paragraph (1) and the resource advisory 
     committee agrees to the expenditure of funds for this 
     purpose, the Secretary concerned shall conduct environmental 
     review, consultation, or other compliance responsibilities in 
     accordance with Federal laws (including regulations).
       ``(3) Effect of refusal to pay.--
       ``(A) In general.--If a resource advisory committee does 
     not agree to the expenditure of funds under paragraph (1), 
     the project shall be deemed withdrawn from further 
     consideration by the Secretary concerned pursuant to this 
     title.
       ``(B) Effect of withdrawal.--A withdrawal under 
     subparagraph (A) shall be deemed to be a rejection of the 
     project for purposes of section 207(c).
       ``(c) Decisions of Secretary Concerned.--
       ``(1) Rejection of projects.--
       ``(A) In general.--A decision by the Secretary concerned to 
     reject a proposed project shall be at the sole discretion of 
     the Secretary concerned.
       ``(B) No administrative appeal or judicial review.--
     Notwithstanding any other provision of law, a decision by the 
     Secretary concerned to reject a proposed project shall not be 
     subject to administrative appeal or judicial review.
       ``(C) Notice of rejection.--Not later than 30 days after 
     the date on which the Secretary concerned makes the rejection 
     decision, the Secretary concerned shall notify in writing the 
     resource advisory committee that submitted the proposed 
     project of the rejection and the reasons for rejection.
       ``(2) Notice of project approval.--The Secretary concerned 
     shall publish in the Federal Register notice of each project 
     approved under subsection (a) if the notice

[[Page 33980]]

     would be required had the project originated with the 
     Secretary.
       ``(d) Source and Conduct of Project.--Once the Secretary 
     concerned accepts a project for review under section 203, the 
     acceptance shall be deemed a Federal action for all purposes.
       ``(e) Implementation of Approved Projects.--
       ``(1) Cooperation.--Notwithstanding chapter 63 of title 31, 
     United States Code, using project funds the Secretary 
     concerned may enter into contracts, grants, and cooperative 
     agreements with States and local governments, private and 
     nonprofit entities, and landowners and other persons to 
     assist the Secretary in carrying out an approved project.
       ``(2) Best value contracting.--
       ``(A) In general.--For any project involving a contract 
     authorized by paragraph (1) the Secretary concerned may elect 
     a source for performance of the contract on a best value 
     basis.
       ``(B) Factors.--The Secretary concerned shall determine 
     best value based on such factors as--
       ``(i) the technical demands and complexity of the work to 
     be done;
       ``(ii)(I) the ecological objectives of the project; and
       ``(II) the sensitivity of the resources being treated;
       ``(iii) the past experience by the contractor with the type 
     of work being done, using the type of equipment proposed for 
     the project, and meeting or exceeding desired ecological 
     conditions; and
       ``(iv) the commitment of the contractor to hiring highly 
     qualified workers and local residents.
       ``(3) Merchantable timber contracting pilot program.--
       ``(A) Establishment.--The Secretary concerned shall 
     establish a pilot program to implement a certain percentage 
     of approved projects involving the sale of merchantable 
     timber using separate contracts for--
       ``(i) the harvesting or collection of merchantable timber; 
     and
       ``(ii) the sale of the timber.
       ``(B) Annual percentages.--Under the pilot program, the 
     Secretary concerned shall ensure that, on a nationwide basis, 
     not less than the following percentage of all approved 
     projects involving the sale of merchantable timber are 
     implemented using separate contracts:
       ``(i) For fiscal year 2008, 35 percent.
       ``(ii) For fiscal year 2009, 45 percent.
       ``(iii) For each of fiscal years 2010 and 2011, 50 percent.
       ``(C) Inclusion in pilot program.--The decision whether to 
     use separate contracts to implement a project involving the 
     sale of merchantable timber shall be made by the Secretary 
     concerned after the approval of the project under this title.
       ``(D) Assistance.--
       ``(i) In general.--The Secretary concerned may use funds 
     from any appropriated account available to the Secretary for 
     the Federal land to assist in the administration of projects 
     conducted under the pilot program.
       ``(ii) Maximum amount of assistance.--The total amount 
     obligated under this subparagraph may not exceed $1,000,000 
     for any fiscal year during which the pilot program is in 
     effect.
       ``(E) Review and report.--
       ``(i) Initial report.--Not later than September 30, 2010, 
     the Comptroller General shall submit to the Committees on 
     Agriculture, Nutrition, and Forestry and Energy and Natural 
     Resources of the Senate and the Committees on Agriculture and 
     Natural Resources of the House of Representatives a report 
     assessing the pilot program.
       ``(ii) Annual report.--The Secretary concerned shall submit 
     to the Committees on Agriculture, Nutrition, and Forestry and 
     Energy and Natural Resources of the Senate and the Committees 
     on Agriculture and Natural Resources of the House of 
     Representatives an annual report describing the results of 
     the pilot program.
       ``(f) Requirements for Project Funds.--The Secretary shall 
     ensure that at least 50 percent of all project funds be used 
     for projects that are primarily dedicated--
       ``(1) to road maintenance, decommissioning, or 
     obliteration; or
       ``(2) to restoration of streams and watersheds.

     ``SEC. 205. RESOURCE ADVISORY COMMITTEES.

       ``(a) Establishment and Purpose of Resource Advisory 
     Committees.--
       ``(1) Establishment.--The Secretary concerned shall 
     establish and maintain resource advisory committees to 
     perform the duties in subsection (b), except as provided in 
     paragraph (4).
       ``(2) Purpose.--The purpose of a resource advisory 
     committee shall be--
       ``(A) to improve collaborative relationships; and
       ``(B) to provide advice and recommendations to the land 
     management agencies consistent with the purposes of this 
     title.
       ``(3) Access to resource advisory committees.--To ensure 
     that each unit of Federal land has access to a resource 
     advisory committee, and that there is sufficient interest in 
     participation on a committee to ensure that membership can be 
     balanced in terms of the points of view represented and the 
     functions to be performed, the Secretary concerned may, 
     establish resource advisory committees for part of, or 1 or 
     more, units of Federal land.
       ``(4) Existing advisory committees.--
       ``(A) In general.--An advisory committee that meets the 
     requirements of this section, a resource advisory committee 
     established before September 29, 2006, or an advisory 
     committee determined by the Secretary concerned before 
     September 29, 2006, to meet the requirements of this section 
     may be deemed by the Secretary concerned to be a resource 
     advisory committee for the purposes of this title.
       ``(B) Charter.--A charter for a committee described in 
     subparagraph (A) that was filed on or before September 29, 
     2006, shall be considered to be filed for purposes of this 
     Act.
       ``(C) Bureau of land management advisory committees.--The 
     Secretary of the Interior may deem a resource advisory 
     committee meeting the requirements of subpart 1784 of part 
     1780 of title 43, Code of Federal Regulations, as a resource 
     advisory committee for the purposes of this title.
       ``(b) Duties.--A resource advisory committee shall--
       ``(1) review projects proposed under this title by 
     participating counties and other persons;
       ``(2) propose projects and funding to the Secretary 
     concerned under section 203;
       ``(3) provide early and continuous coordination with 
     appropriate land management agency officials in recommending 
     projects consistent with purposes of this Act under this 
     title;
       ``(4) provide frequent opportunities for citizens, 
     organizations, tribes, land management agencies, and other 
     interested parties to participate openly and meaningfully, 
     beginning at the early stages of the project development 
     process under this title;
       ``(5)(A) monitor projects that have been approved under 
     section 204; and
       ``(B) advise the designated Federal official on the 
     progress of the monitoring efforts under subparagraph (A); 
     and
       ``(6) make recommendations to the Secretary concerned for 
     any appropriate changes or adjustments to the projects being 
     monitored by the resource advisory committee.
       ``(c) Appointment by the Secretary.--
       ``(1) Appointment and term.--
       ``(A) In general.--The Secretary concerned, shall appoint 
     the members of resource advisory committees for a term of 4 
     years beginning on the date of appointment.
       ``(B) Reappointment.--The Secretary concerned may reappoint 
     members to subsequent 4-year terms.
       ``(2) Basic requirements.--The Secretary concerned shall 
     ensure that each resource advisory committee established 
     meets the requirements of subsection (d).
       ``(3) Initial appointment.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary 
     concerned shall make initial appointments to the resource 
     advisory committees.
       ``(4) Vacancies.--The Secretary concerned shall make 
     appointments to fill vacancies on any resource advisory 
     committee as soon as practicable after the vacancy has 
     occurred.
       ``(5) Compensation.--Members of the resource advisory 
     committees shall not receive any compensation.
       ``(d) Composition of Advisory Committee.--
       ``(1) Number.--Each resource advisory committee shall be 
     comprised of 15 members.
       ``(2) Community interests represented.--Committee members 
     shall be representative of the interests of the following 3 
     categories:
       ``(A) 5 persons that--
       ``(i) represent organized labor or non-timber forest 
     product harvester groups;
       ``(ii) represent developed outdoor recreation, off highway 
     vehicle users, or commercial recreation activities;
       ``(iii) represent--

       ``(I) energy and mineral development interests; or
       ``(II) commercial or recreational fishing interests;

       ``(iv) represent the commercial timber industry; or
       ``(v) hold Federal grazing or other land use permits, or 
     represent nonindustrial private forest land owners, within 
     the area for which the committee is organized.
       ``(B) 5 persons that represent--
       ``(i) nationally recognized environmental organizations;
       ``(ii) regionally or locally recognized environmental 
     organizations;
       ``(iii) dispersed recreational activities;
       ``(iv) archaeological and historical interests; or
       ``(v) nationally or regionally recognized wild horse and 
     burro interest groups, wildlife or hunting organizations, or 
     watershed associations.
       ``(C) 5 persons that--
       ``(i) hold State elected office (or a designee);
       ``(ii) hold county or local elected office;
       ``(iii) represent American Indian tribes within or adjacent 
     to the area for which the committee is organized;
       ``(iv) are school officials or teachers; or
       ``(v) represent the affected public at large.

[[Page 33981]]

       ``(3) Balanced representation.--In appointing committee 
     members from the 3 categories in paragraph (2), the Secretary 
     concerned shall provide for balanced and broad representation 
     from within each category.
       ``(4) Geographic distribution.--The members of a resource 
     advisory committee shall reside within the State in which the 
     committee has jurisdiction and, to extent practicable, the 
     Secretary concerned shall ensure local representation in each 
     category in paragraph (2).
       ``(5) Chairperson.--A majority on each resource advisory 
     committee shall select the chairperson of the committee.
       ``(e) Approval Procedures.--
       ``(1) In general.--Subject to paragraph (3), each resource 
     advisory committee shall establish procedures for proposing 
     projects to the Secretary concerned under this title.
       ``(2) Quorum.--A quorum must be present to constitute an 
     official meeting of the committee.
       ``(3) Approval by majority of members.--A project may be 
     proposed by a resource advisory committee to the Secretary 
     concerned under section 203(a), if the project has been 
     approved by a majority of members of the committee from each 
     of the 3 categories in subsection (d)(2).
       ``(f) Other Committee Authorities and Requirements.--
       ``(1) Staff assistance.--A resource advisory committee may 
     submit to the Secretary concerned a request for periodic 
     staff assistance from Federal employees under the 
     jurisdiction of the Secretary.
       ``(2) Meetings.--All meetings of a resource advisory 
     committee shall be announced at least 1 week in advance in a 
     local newspaper of record and shall be open to the public.
       ``(3) Records.--A resource advisory committee shall 
     maintain records of the meetings of the committee and make 
     the records available for public inspection.

     ``SEC. 206. USE OF PROJECT FUNDS.

       ``(a) Agreement Regarding Schedule and Cost of Project.--
       ``(1) Agreement between parties.--The Secretary concerned 
     may carry out a project submitted by a resource advisory 
     committee under section 203(a) using project funds or other 
     funds described in section 203(a)(2), if, as soon as 
     practicable after the issuance of a decision document for the 
     project and the exhaustion of all administrative appeals and 
     judicial review of the project decision, the Secretary 
     concerned and the resource advisory committee enter into an 
     agreement addressing, at a minimum, the following:
       ``(A) The schedule for completing the project.
       ``(B) The total cost of the project, including the level of 
     agency overhead to be assessed against the project.
       ``(C) For a multiyear project, the estimated cost of the 
     project for each of the fiscal years in which it will be 
     carried out.
       ``(D) The remedies for failure of the Secretary concerned 
     to comply with the terms of the agreement consistent with 
     current Federal law.
       ``(2) Limited use of federal funds.--The Secretary 
     concerned may decide, at the sole discretion of the Secretary 
     concerned, to cover the costs of a portion of an approved 
     project using Federal funds appropriated or otherwise 
     available to the Secretary for the same purposes as the 
     project.
       ``(b) Transfer of Project Funds.--
       ``(1) Initial transfer required.--As soon as practicable 
     after the agreement is reached under subsection (a) with 
     regard to a project to be funded in whole or in part using 
     project funds, or other funds described in section 203(a)(2), 
     the Secretary concerned shall transfer to the applicable unit 
     of National Forest System land or Bureau of Land Management 
     District an amount of project funds equal to--
       ``(A) in the case of a project to be completed in a single 
     fiscal year, the total amount specified in the agreement to 
     be paid using project funds, or other funds described in 
     section 203(a)(2); or
       ``(B) in the case of a multiyear project, the amount 
     specified in the agreement to be paid using project funds, or 
     other funds described in section 203(a)(2) for the first 
     fiscal year.
       ``(2) Condition on project commencement.--The unit of 
     National Forest System land or Bureau of Land Management 
     District concerned, shall not commence a project until the 
     project funds, or other funds described in section 203(a)(2) 
     required to be transferred under paragraph (1) for the 
     project, have been made available by the Secretary concerned.
       ``(3) Subsequent transfers for multiyear projects.--
       ``(A) In general.--For the second and subsequent fiscal 
     years of a multiyear project to be funded in whole or in part 
     using project funds, the unit of National Forest System land 
     or Bureau of Land Management District concerned shall use the 
     amount of project funds required to continue the project in 
     that fiscal year according to the agreement entered into 
     under subsection (a).
       ``(B) Suspension of work.--The Secretary concerned shall 
     suspend work on the project if the project funds required by 
     the agreement in the second and subsequent fiscal years are 
     not available.

     ``SEC. 207. AVAILABILITY OF PROJECT FUNDS.

       ``(a) Submission of Proposed Projects to Obligate Funds.--
     By September 30 of each fiscal year through fiscal year 2011, 
     a resource advisory committee shall submit to the Secretary 
     concerned pursuant to section 203(a)(1) a sufficient number 
     of project proposals that, if approved, would result in the 
     obligation of at least the full amount of the project funds 
     reserved by the participating county in the preceding fiscal 
     year.
       ``(b) Use or Transfer of Unobligated Funds.--Subject to 
     section 208, if a resource advisory committee fails to comply 
     with subsection (a) for a fiscal year, any project funds 
     reserved by the participating county in the preceding fiscal 
     year and remaining unobligated shall be available for use as 
     part of the project submissions in the next fiscal year.
       ``(c) Effect of Rejection of Projects.--Subject to section 
     208, any project funds reserved by a participating county in 
     the preceding fiscal year that are unobligated at the end of 
     a fiscal year because the Secretary concerned has rejected 
     one or more proposed projects shall be available for use as 
     part of the project submissions in the next fiscal year.
       ``(d) Effect of Court Orders.--
       ``(1) In general.--If an approved project under this Act is 
     enjoined or prohibited by a Federal court, the Secretary 
     concerned shall return the unobligated project funds related 
     to the project to the participating county or counties that 
     reserved the funds.
       ``(2) Expenditure of funds.--The returned funds shall be 
     available for the county to expend in the same manner as the 
     funds reserved by the county under subparagraph (B) or (C)(i) 
     of section 102(d)(1).

     ``SEC. 208. TERMINATION OF AUTHORITY.

       ``(a) In General.--The authority to initiate projects under 
     this title shall terminate on September 30, 2011.
       ``(b) Deposits in Treasury.--Any project funds not 
     obligated by September 30, 2012, shall be deposited in the 
     Treasury of the United States.

                       ``TITLE III--COUNTY FUNDS

     ``SEC. 301. DEFINITIONS.

       ``In this title:
       ``(1) County funds.--The term `county funds' means all 
     funds an eligible county elects under section 102(d) to 
     reserve for expenditure in accordance with this title.
       ``(2) Participating county.--The term `participating 
     county' means an eligible county that elects under section 
     102(d) to expend a portion of the Federal funds received 
     under section 102 in accordance with this title.

     ``SEC. 302. USE.

       ``(a) Authorized Uses.--A participating county, including 
     any applicable agencies of the participating county, shall 
     use county funds, in accordance with this title, only--
       ``(1) to carry out activities under the Firewise 
     Communities program to provide to homeowners in fire-
     sensitive ecosystems education on, and assistance with 
     implementing, techniques in home siting, home construction, 
     and home landscaping that can increase the protection of 
     people and property from wildfires;
       ``(2) to reimburse the participating county for search and 
     rescue and other emergency services, including firefighting, 
     that are--
       ``(A) performed on Federal land after the date on which the 
     use was approved under subsection (b);
       ``(B) paid for by the participating county; and
       ``(3) to develop community wildfire protection plans in 
     coordination with the appropriate Secretary concerned.
       ``(b) Proposals.--A participating county shall use county 
     funds for a use described in subsection (a) only after a 45-
     day public comment period, at the beginning of which the 
     participating county shall--
       ``(1) publish in any publications of local record a 
     proposal that describes the proposed use of the county funds; 
     and
       ``(2) submit the proposal to any resource advisory 
     committee established under section 205 for the participating 
     county.

     ``SEC. 303. CERTIFICATION.

       ``(a) In General.--Not later than February 1 of the year 
     after the year in which any county funds were expended by a 
     participating county, the appropriate official of the 
     participating county shall submit to the Secretary concerned 
     a certification that the county funds expended in the 
     applicable year have been used for the uses authorized under 
     section 302(a), including a description of the amounts 
     expended and the uses for which the amounts were expended.
       ``(b) Review.--The Secretary concerned shall review the 
     certifications submitted under subsection (a) as the 
     Secretary concerned determines to be appropriate.

     ``SEC. 304. TERMINATION OF AUTHORITY.

       ``(a) In General.--The authority to initiate projects under 
     this title terminates on September 30, 2011.
       ``(b) Availability.--Any county funds not obligated by 
     September 30, 2012, shall be returned to the Treasury of the 
     United States.

                  ``TITLE IV--MISCELLANEOUS PROVISIONS

     ``SEC. 401. REGULATIONS.

       ``The Secretary of Agriculture and the Secretary of the 
     Interior shall issue regulations to carry out the purposes of 
     this Act.

     ``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this Act for each of fiscal years 2008 
     through 2011.

[[Page 33982]]



     ``SEC. 403. TREATMENT OF FUNDS AND REVENUES.

       ``(a) Relation to Other Appropriations.--Funds made 
     available under section 402 and funds made available to a 
     Secretary concerned under section 206 shall be in addition to 
     any other annual appropriations for the Forest Service and 
     the Bureau of Land Management.
       ``(b) Deposit of Revenues and Other Funds.--All revenues 
     generated from projects pursuant to title II, including any 
     interest accrued from the revenues, shall be deposited in the 
     Treasury of the United States.''.
       (b) Forest Receipt Payments to Eligible States and 
     Counties.--
       (1) Act of may 23, 1908.--The sixth paragraph under the 
     heading ``FOREST SERVICE'' in the Act of May 23, 1908 (16 
     U.S.C. 500) is amended in the first sentence by striking 
     ``twenty-five percentum'' and all that follows through 
     ``shall be paid'' and inserting the following: ``an amount 
     equal to the annual average of 25 percent of all amounts 
     received for the applicable fiscal year and each of the 
     preceding 6 fiscal years from each national forest shall be 
     paid''.
       (2) Weeks law.--Section 13 of the Act of March 1, 1911 
     (commonly known as the ``Weeks Law'') (16 U.S.C. 500) is 
     amended in the first sentence by striking ``twenty-five 
     percentum'' and all that follows through ``shall be paid'' 
     and inserting the following: ``an amount equal to the annual 
     average of 25 percent of all amounts received for the 
     applicable fiscal year and each of the preceding 6 fiscal 
     years from each national forest shall be paid''.
       (c) Payments in Lieu of Taxes.--
       (1) In general.--Section 6906 of title 31, United States 
     Code, is amended to read as follows:

     ``Sec. 6906. Funding

       ``For fiscal year 2009--
       ``(1) each county or other eligible unit of local 
     government shall be entitled to payment under this chapter; 
     and
       ``(2) sums shall be made available to the Secretary of the 
     Interior for obligation or expenditure in accordance with 
     this chapter.''.
       (2) Conforming amendment.--The table of sections for 
     chapter 69 of title 31, United States Code, is amended by 
     striking the item relating to section 6906 and inserting the 
     following:

``6906. Funding.''.

       (3) Budget scorekeeping.--
       (A) In general.--Notwithstanding the Budget Scorekeeping 
     Guidelines and the accompanying list of programs and accounts 
     set forth in the joint explanatory statement of the committee 
     of conference accompanying Conference Report 105-217, the 
     amendment made by paragraph (1) shall be treated in the 
     baseline for purposes of section 257 of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 907) (as 
     in effect before September 30, 2002), by the Chairpersons of 
     the Committee on the Budget of the House of Representatives 
     and the Committee on the Budget of the Senate, as 
     appropriate, for purposes of budget enforcement in the House 
     of Representatives and the Senate, and under the 
     Congressional Budget Act of 1974 (2 U.S.C. 601 et seq.) as if 
     Payment in Lieu of Taxes (14-1114-0-1-806) were an account 
     designated as Appropriated Entitlements and Mandatories for 
     Fiscal Year 1997 in the joint explanatory statement of the 
     committee of conference accompanying Conference Report 105-
     217.
       (B) Effective date.--This paragraph shall--
       (i) be effective beginning on the date of enactment of this 
     Act; and
       (ii) remain in effect for any fiscal year for which the 
     entitlement in section 6906 of title 31, United States Code 
     (as amended by paragraph (1)), applies.

                       TITLE XVI--EFFECTIVE DATE

     SEC. 1601. EFFECTIVE DATE.

       This Act and the amendments made by this Act take effect on 
     the date that is 1 day after the date of enactment of this 
     Act.
                                 ______
                                 
  SA 3842. Mr. REID proposed an amendment to amendment SA 3841 proposed 
by Mr. Reid to the bill H.R. 6, 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; as follows:

       At the end of the amendment add the following:
       This section shall take effect one day after the date of 
     this bill's enactment.
                                 ______
                                 
  SA 3843. Mr. FEINGOLD (for himself and Mr. Menendez) submitted an 
amendment intended to be proposed to amendment SA 3500 proposed by Mr. 
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to 
the bill H.R. 2419, to provide for the continuation of agricultural 
programs through fiscal year 2012, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title I, insert the following:

                    Subtitle H--Flexible State Funds

     SEC. 1941. OFFSET.

       (a) Offset.--
       (1) In general.--Except as provided in paragraph (3) and 
     notwithstanding any other provision of this Act, for the 
     period beginning on October 1, 2007, and ending on September 
     30, 2012, the Secretary shall reduce the total amount of 
     payments described in paragraph (2) received by the producers 
     on a farm by 35 percent.
       (2) Payment.--A payment described in this paragraph is a 
     payment in an amount of more than $10,000 for the crop year 
     that is--
       (A) a direct payment for a covered commodity or peanuts 
     received by the producers on a farm for a crop year under 
     section 1103 or 1303; or
       (B) the fixed payment component of an average crop revenue 
     payment for a covered commodity or peanuts received by the 
     producers on a farm for a crop year under section 1401(b)(2).
       (3) Application.--This subsection does not apply to a 
     payment provided under a contract entered into by the 
     Secretary before the date of enactment of this Act.
       (b) Savings.--The Secretary shall ensure, to the maximum 
     extent practicable, that any savings resulting from 
     subsection (a) are used--
       (1) to provide $15,000,000 for each of fiscal years 2008 
     through 2012 to carry out section 379F of the Consolidated 
     Farm and Rural Development Act (as added by section 1943);
       (2) to provide an additional $35,000,000 for fiscal year 
     2008 and $40,000,000 for each of fiscal years 2009 through 
     2012 to carry out section 231 of the Agricultural Risk 
     Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
     224) (as amended by section 6401);
       (3) to provide an additional $5,000,000 for each of fiscal 
     years 2008 through 2012 to carry out the grassland reserve 
     program established under subchapter C of chapter 2 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3838n et seq.);
       (4) to provide an additional $10,000,000 for each of fiscal 
     years 2008 through 2012 to carry out section 2501 of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 2279)) (as amended by section 11052);
       (5) to provide an additional $30,000,000 for each of fiscal 
     years 2008 through 2012 to carry out the farmland protection 
     program established under subchapter B of chapter 2 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3838h et seq.) (commonly known as the ``Farm and Ranch 
     Lands Protection Program'') ;
       (6) to provide an additional $5,000,000 for fiscal year 
     2008 to carry out the Farmers' Market Promotion Program 
     established under section 6 of the Farmer-to-Consumer Direct 
     Marketing Act of 1976 (7 U.S.C. 3005);
       (7) to carry out sections 4101 and 4013 (and the amendments 
     made by those sections), without regards to paragraphs (1) 
     and (3) of section 4908(b); and
       (8) to make any funds that remain available after providing 
     funds under paragraphs (1) through (7) to the Commodity 
     Credit Corporation for use in carrying out section 1942.

     SEC. 1942. FLEXIBLE STATE FUNDS.

       (a) Funding.--
       (1) Base grants.--The Secretary shall make a grant to each 
     State to be used to benefit agricultural producers and rural 
     communities in the State, in the amount of--
       (A) for fiscal year 2008, $220,000; and
       (B) for the period of fiscal years 2009 through 2017, 
     $2,500,000.
       (2) Proportional funding.--
       (A) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall allocate among the States 
     $220,000,000 for fiscal years 2009 through 2017, with each 
     State receiving a grant in an amount equal to the proportion 
     that--
       (i) the amount of the reduction in payments in the State 
     under section 1941(a) ; bears to
       (ii) the total amount of reduced payments in all States 
     under that section.
       (B) State funds.--The Secretary shall maintain a separate 
     account for each State consisting of amounts allocated for 
     the State in accordance with subparagraph (A).
       (C) Use of funds.--The Secretary shall use amounts 
     maintained in a State account described in subparagraph (B) 
     to carry out eligible programs in the appropriate State in 
     accordance with a determination made by a State board under 
     subsection (b)(3).
       (b) State Boards.--
       (1) In general.--The Secretary shall establish a State 
     board for each State that consists of the State directors 
     of--
       (A) the Farm Service Agency;
       (B) the Natural Resources Conservation Service; and
       (C) USDA-Rural Development.
       (2) Stakeholder input.--A State board established under 
     paragraph (1) shall consult with and conduct appropriate 
     outreach activities with respect to relevant State agencies 
     (including State agencies with jurisdiction over agriculture, 
     rural development, energy, telecommunications, public 
     schools,

[[Page 33983]]

     and nutrition assistance), producers, and local rural and 
     agriculture industry leaders to collect information and 
     provide advice regarding the needs and preferred uses of the 
     funds provided under this section.
       (3) Determination.--
       (A) In general.--Each State board shall determine the use 
     of funds allocated under subsection (a)(2) among the eligible 
     programs described in subsection (c)(1) based on the State 
     needs and priorities as determined by the board.
       (B) Requirement.--Of the funds allocated under subsection 
     (a)(2) during each 5-year period, at least 20 percent of the 
     funds shall be used to carry out eligible programs described 
     in subparagraphs (M) through (P) of subsection (c)(1).
       (4) Outreach activities.--Not more than 2 percent of the 
     amounts maintained in a State account established under 
     subsection (a) for a fiscal year may be used to carry out 
     outreach activities described in paragraph (2).
       (5) Prohibition.--Funds made available under this section 
     may not be used for the administrative expenses of State 
     boards in excess of the amount allowed for program 
     administration under other law, including regulations.
       (c) Eligible Programs.--
       (1) In general.--Funds allocated to a State under 
     subsection (b) may be used in the State--
       (A) to provide stewardship payments for conservation 
     practices under the conservation security program established 
     under subchapter A of chapter 2 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3838 et seq.);
       (B) to provide cost share for projects to reduce pollution 
     under the environmental quality incentives program 
     established under chapter 4 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3839aa et seq.), 
     including manure management;
       (C) to assist States and local groups to purchase 
     development rights from farms and slow suburban sprawl under 
     the farmland protection program established under subchapter 
     B of chapter 2 of subtitle D of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3838h et seq.) (commonly 
     known as the ``Farm and Ranch Lands Protection Program'');
       (D) the grassland reserve program established under 
     subchapter C of chapter 2 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3838n et seq.);
       (E) to provide loans and loan guarantees to improve 
     broadband access in rural areas in accordance with the 
     program under section 601 of the Rural Electrification Act of 
     1936 (7 U.S.C. 950bb);
       (F) to provide to rural community facilities loans and 
     grants under section 306(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1926(a));
       (G) to provide water or waste disposal grants or direct or 
     guaranteed loans under paragraph (1) or (2) of section 306(a) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1926(a));
       (H) to make value-added agricultural product market 
     development grants under section 231 of the Agricultural Risk 
     Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
     224);
       (I) the rural microenterprise assistance program under 
     section 366 of the Consolidated Farm and Rural Development 
     Act (as added by section 6022);
       (J) to provide organic certification cost share or 
     transition funds under the national organic program 
     established under the Organic Foods Production Act of 1990 (7 
     U.S.C. 6501 et seq.);
       (K) to provide grants under the Rural Energy for America 
     Program established under section 9007 of the Farm Security 
     and Rural Investment Act of 2002 (as amended by section 
     9001);
       (L) to provide grants under the Farmers' Market Promotion 
     Program established under section 6 of the Farmer-to-Consumer 
     Direct Marketing Act of 1976 (7 U.S.C. 3005);
       (M) to provide vouchers for the seniors farmers' market 
     nutrition program under section 4402 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 3007);
       (N) to provide vouchers for the farmers' market nutrition 
     program established under section 17(m) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(m));
       (O) to provide grants to improve access to local foods and 
     school gardens under section 18(i) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1769(i)); and
       (P) subject to paragraph (2), to provide additional locally 
     or regionally produced commodities for use by the State for 
     any of--
       (i) the fresh fruit and vegetable program under section 19 
     of the Richard B. Russell National School Lunch Act (as added 
     by section 4903);
       (ii) the commodity supplemental food program established 
     under section 5 of the Agriculture and Consumer Protection 
     Act of 1973 (7 U.S.C. 612c note; Public Law 93-86);
       (iii) the emergency food assistance program established 
     under the Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7501 et seq.);
       (iv) the child and adult care food program established 
     under section 17 of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1766); and
       (v) the food distribution program on Indian reservations 
     established under section 4(b) of the Food and Nutrition Act 
     of 2007 (7 U.S.C. 2013(b)).
       (2) Waivers.--
       (A) In general.--The Secretary may waive a local or 
     regional purchase requirement under any program described in 
     clauses (i) through (v) of paragraph (1)(P) if the applicable 
     State board demonstrates to the satisfaction of the Secretary 
     that a sufficient quality or quantity of a local or regional 
     product is not available.
       (B) Effect.--A product purchased by a State board that 
     receives a waiver under subparagraph (A) in lieu of a local 
     or regional product shall be produced in the United States.
       (d) Maintenance of Effort.--Funds made available to a 
     program of a State under this section shall be in addition 
     to, and shall not supplant, any other funds provided to the 
     program under any other Federal, State, or local law 
     (including regulations).
       (e) Evaluation and Report.--Not later than March 1, 2012, 
     the Secretary shall--
       (1) evaluate the effectiveness of State funds made 
     available under this section in meeting the unmet needs of 
     agricultural producers, rural communities, and nutrition of 
     school children and low-income individuals;
       (2) evaluate whether base grants under subsection (a)(1) 
     and proportional funding under subsection (a)(2) are 
     equitable, based on national needs and the relative needs of 
     each State;
       (3) develop recommendations on whether the State flexible 
     accounts described in subsection (a)(2)(B) should be 
     continued and, if so, what changes should be made to the 
     program;
       (4) if the Secretary recommends that the State flexible 
     accounts should not be continued, develop recommendations on 
     what additional increases in other programs would be more 
     beneficial to the broadest group of family farmers, rural 
     communities, and the nutrition of school children and low-
     income individuals; and
       (5) submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate, a report containing the 
     evaluation and recommendations required under this 
     subsection.

     SEC. 1943. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND 
                   IMPROVE QUALITY OF RURAL HEALTH CARE 
                   FACILITIES.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 6028) is 
     amended by adding at the end the following:

     ``SEC. 379F. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND 
                   QUALITY OF RURAL HEALTH CARE FACILITIES.

       ``(a) Definitions.--In this section:
       ``(1) Health information technology.--The term `health 
     information technology' includes total expenditures incurred 
     for--
       ``(A) purchasing, leasing, and installing computer software 
     and hardware, including handheld computer technologies, and 
     related services;
       ``(B) making improvements to computer software and 
     hardware;
       ``(C) purchasing or leasing communications capabilities 
     necessary for clinical data access, storage, and exchange;
       ``(D) services associated with acquiring, implementing, 
     operating, or optimizing the use of computer software and 
     hardware and clinical health care informatics systems;
       ``(E) providing education and training to rural health 
     facility staff on information systems and technology designed 
     to improve patient safety and quality of care; and
       ``(F) purchasing, leasing, subscribing, or servicing 
     support to establish interoperability that--
       ``(i) integrates patient-specific clinical data with well-
     established national treatment guidelines;
       ``(ii) provides continuous quality improvement functions 
     that allow providers to assess improvement rates over time 
     and against averages for similar providers; and
       ``(iii) integrates with larger health networks.
       ``(2) Rural area.--The term `rural area' means any area of 
     the United States that is not--
       ``(A) included in the boundaries of any city, town, 
     borough, or village, whether incorporated or unincorporated, 
     with a population of more than 20,000 residents; or
       ``(B) an urbanized area contiguous and adjacent to such a 
     city, town, borough, or village.
       ``(3) Rural health facility.--The term `rural health 
     facility' means any of--
       ``(A) a hospital (as defined in section 1861(e) of the 
     Social Security Act (42 U.S.C. 1395x(e)));
       ``(B) a critical access hospital (as defined in section 
     1861(mm) of that Act (42 U.S.C. 1395x(mm)));
       ``(C) a Federally qualified health center (as defined in 
     section 1861(aa) of that Act (42 U.S.C. 1395x(aa))) that is 
     located in a rural area;
       ``(D) a rural health clinic (as defined in that section (42 
     U.S.C. 1395x(aa)));
       ``(E) a medicare-dependent, small rural hospital (as 
     defined in section 1886(d)(5)(G) of that Act (42 U.S.C. 
     1395ww(d)(5)(G))); and
       ``(F) a physician or physician group practice that is 
     located in a rural area.

[[Page 33984]]

       ``(b) Establishment of Program.--The Secretary shall 
     establish a program under which the Secretary shall provide 
     grants to rural health facilities for the purpose of 
     assisting the rural health facilities in--
       ``(1) purchasing health information technology to improve 
     the quality of health care or patient safety; or
       ``(2) otherwise improving the quality of health care or 
     patient safety, including through the development of--
       ``(A) quality improvement support structures to assist 
     rural health facilities and professionals--
       ``(i) to increase integration of personal and population 
     health services; and
       ``(ii) to address safety, effectiveness, patient- or 
     community-centeredness, timeliness, efficiency, and equity; 
     and
       ``(B) innovative approaches to the financing and delivery 
     of health services to achieve rural health quality goals.
       ``(c) Amount of Grant.--The Secretary shall determine the 
     amount of a grant provided under this section.
       ``(d) Provision of Information.--A rural health facility 
     that receives a grant under this section shall provide to the 
     Secretary such information as the Secretary may require--
       ``(1) to evaluate the project for which the grant is used; 
     and
       ``(2) to ensure that the grant is expended for the purposes 
     for which the grant was provided.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section such sums as are necessary for each of fiscal 
     years 2008 through 2012.''.
                                 ______
                                 
  SA 3844. Mr. HARKIN (for himself, Mr. Kennedy, and Mr. Gregg) 
proposed an amendment to amendment SA 3830 proposed by Mr. Harkin (for 
himself, Mr. Kennedy, and Mr. Gregg) to the amendment SA 3500 proposed 
by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. 
Grassley) to the bill H.R. 2419, to provide for the continuation of 
agricultural programs through fiscal year 2012, and for other purposes; 
as follows:

       In lieu of the matter to be inserted insert the following:

                  Subtitle __--Public Safety Officers

     SEC. ___1. SHORT TITLE.

       This subtitle may be cited as the ``Public Safety Employer-
     Employee Cooperation Act of 2007''.

     SEC. ___2. DECLARATION OF PURPOSE AND POLICY.

       The Congress declares that the following is the policy of 
     the United States:
       (1) Labor-management relationships and partnerships are 
     based on trust, mutual respect, open communication, bilateral 
     consensual problem solving, and shared accountability. Labor-
     management cooperation fully utilizes the strengths of both 
     parties to best serve the interests of the public, operating 
     as a team, to carry out the public safety mission in a 
     quality work environment. In many public safety agencies it 
     is the union that provides the institutional stability as 
     elected leaders and appointees come and go.
       (2) State and local public safety officers play an 
     essential role in the efforts of the United States to detect, 
     prevent, and respond to terrorist attacks, and to respond to 
     natural disasters, hazardous materials, and other mass 
     casualty incidents. State and local public safety officers, 
     as first responders, are a component of our Nation's National 
     Incident Management System, developed by the Department of 
     Homeland Security to coordinate response to and recovery from 
     terrorism, major natural disasters, and other major 
     emergencies. Public safety employer-employee cooperation is 
     essential in meeting these needs and is, therefore, in the 
     National interest.
       (3) The Federal Government needs to encourage conciliation, 
     mediation, and voluntary arbitration to aid and encourage 
     employers and the representatives of their employees to reach 
     and maintain agreements concerning rates of pay, hours, and 
     working conditions, and to make all reasonable efforts 
     through negotiations to settle their differences by mutual 
     agreement reached through collective bargaining or by such 
     methods as may be provided for in any applicable agreement 
     for the settlement of disputes.
       (4) The absence of adequate cooperation between public 
     safety employers and employees has implications for the 
     security of employees and can affect interstate and 
     intrastate commerce. The lack of such labor-management 
     cooperation can detrimentally impact the upgrading of police 
     and fire services of local communities, the health and well-
     being of public safety officers, and the morale of the fire 
     and police departments. Additionally, these factors could 
     have significant commercial repercussions. Moreover, 
     providing minimal standards for collective bargaining 
     negotiations in the public safety sector can prevent 
     industrial strife between labor and management that 
     interferes with the normal flow of commerce.

     SEC. ___3. DEFINITIONS.

       In this subtitle:
       (1) Authority.--The term ``Authority'' means the Federal 
     Labor Relations Authority.
       (2) Emergency medical services personnel.--The term 
     ``emergency medical services personnel'' means an individual 
     who provides out-of-hospital emergency medical care, 
     including an emergency medical technician, paramedic, or 
     first responder.
       (3) Employer; public safety agency.--The terms ``employer'' 
     and ``public safety agency'' mean any State, or political 
     subdivision of a State, that employs public safety officers.
       (4) Firefighter.--The term ``firefighter'' has the meaning 
     given the term ``employee engaged in fire protection 
     activities'' in section 3(y) of the Fair Labor Standards Act 
     (29 U.S.C. 203(y)).
       (5) Labor organization.--The term ``labor organization'' 
     means an organization composed in whole or in part of 
     employees, in which employees participate, and which 
     represents such employees before public safety agencies 
     concerning grievances, conditions of employment, and related 
     matters.
       (6) Law enforcement officer.--The term ``law enforcement 
     officer'' has the meaning given such term in section 1204 of 
     the Omnibus Crime Control and Safe Streets Act of 1968 (42 
     U.S.C. 3796b).
       (7) Management employee.--The term ``management employee'' 
     has the meaning given such term under applicable State law in 
     effect on the date of enactment of this subtitle. If no such 
     State law is in effect, the term means an individual employed 
     by a public safety employer in a position that requires or 
     authorizes the individual to formulate, determine, or 
     influence the policies of the employer.
       (8) Person.--The term ``person'' means an individual or a 
     labor organization.
       (9) Public safety officer.--The term ``public safety 
     officer''--
       (A) means an employee of a public safety agency who is a 
     law enforcement officer, a firefighter, or an emergency 
     medical services personnel;
       (B) includes an individual who is temporarily transferred 
     to a supervisory or management position; and
       (C) does not include a permanent supervisory or management 
     employee.
       (10) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     any territory or possession of the United States.
       (11) Substantially provides.--The term ``substantially 
     provides'' means compliance with the essential requirements 
     of this subtitle, specifically, the right to form and join a 
     labor organization, the right to bargain over wages, hours, 
     and conditions of employment, the right to sign an 
     enforceable contract, and availability of some form of 
     mechanism to break an impasse, such as arbitration, 
     mediation, or fact-finding.
       (12) Supervisory employee.--The term ``supervisory 
     employee'' has the meaning given such term under applicable 
     State law in effect on the date of enactment of this 
     subtitle. If no such State law is in effect, the term means 
     an individual, employed by a public safety employer, who--
       (A) has the authority in the interest of the employer to 
     hire, direct, assign, promote, reward, transfer, furlough, 
     lay off, recall, suspend, discipline, or remove public safety 
     officers, to adjust their grievances, or to effectively 
     recommend such action, if the exercise of the authority is 
     not merely routine or clerical in nature but requires the 
     consistent exercise of independent judgment; and
       (B) devotes a majority of time at work exercising such 
     authority.

     SEC. ___4. DETERMINATION OF RIGHTS AND RESPONSIBILITIES.

       (a) Determination.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this subtitle, the Authority shall make a 
     determination as to whether a State substantially provides 
     for the rights and responsibilities described in subsection 
     (b). In making such determinations, the Authority shall 
     consider and give weight, to the maximum extent practicable, 
     to the opinion of affected parties.
       (2) Subsequent determinations.--
       (A) In general.--A determination made pursuant to paragraph 
     (1) shall remain in effect unless and until the Authority 
     issues a subsequent determination, in accordance with the 
     procedures set forth in subparagraph (B).
       (B) Procedures for subsequent determinations.--Upon 
     establishing that a material change in State law or its 
     interpretation has occurred, an employer or a labor 
     organization may submit a written request for a subsequent 
     determination. If satisfied that a material change in State 
     law or its interpretation has occurred, the Authority shall 
     issue a subsequent determination not later than 30 days after 
     receipt of such request.
       (3) Judicial review.--Any person or employer aggrieved by a 
     determination of the Authority under this section may, during 
     the 60-day period beginning on the date on which the 
     determination was made, petition any United States Court of 
     Appeals in the circuit in which the person or employer 
     resides or transacts business or in the District of Columbia 
     circuit, for judicial review. In any judicial review of a 
     determination by the

[[Page 33985]]

     Authority, the procedures contained in subsections (c) and 
     (d) of section 7123 of title 5, United States Code, shall be 
     followed.
       (b) Rights and Responsibilities.--In making a determination 
     described in subsection (a), the Authority shall consider 
     whether State law provides rights and responsibilities 
     comparable to or greater than the following:
       (1) Granting public safety officers the right to form and 
     join a labor organization, which may exclude management 
     employees and supervisory employees, that is, or seeks to be, 
     recognized as the exclusive bargaining representative of such 
     employees.
       (2) Requiring public safety employers to recognize the 
     employees' labor organization (freely chosen by a majority of 
     the employees), to agree to bargain with the labor 
     organization, and to commit any agreements to writing in a 
     contract or memorandum of understanding.
       (3) Permitting bargaining over hours, wages, and terms and 
     conditions of employment.
       (4) Making available an interest impasse resolution 
     mechanism, such as fact-finding, mediation, arbitration, or 
     comparable procedures.
       (5) Requiring enforcement through State courts of--
       (A) all rights, responsibilities, and protections provided 
     by State law and enumerated in this section; and
       (B) any written contract or memorandum of understanding.
       (c) Failure To Meet Requirements.--
       (1) In general.--If the Authority determines, acting 
     pursuant to its authority under subsection (a), that a State 
     does not substantially provide for the rights and 
     responsibilities described in subsection (b), such State 
     shall be subject to the regulations and procedures described 
     in section ___5.
       (2) Effective date.--Paragraph (1) shall take effect on the 
     date that is 2 years after the date of enactment of this 
     subtitle.

     SEC. ___5. ROLE OF FEDERAL LABOR RELATIONS AUTHORITY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this subtitle, the Authority shall issue 
     regulations in accordance with the rights and 
     responsibilities described in section ___4(b) establishing 
     collective bargaining procedures for employers and public 
     safety officers in States which the Authority has determined, 
     acting pursuant to section ___4(a), do not substantially 
     provide for such rights and responsibilities.
       (b) Role of the Federal Labor Relations Authority.--The 
     Authority, to the extent provided in this subtitle and in 
     accordance with regulations prescribed by the Authority, 
     shall--
       (1) determine the appropriateness of units for labor 
     organization representation;
       (2) supervise or conduct elections to determine whether a 
     labor organization has been selected as an exclusive 
     representative by a voting majority of the employees in an 
     appropriate unit;
       (3) resolve issues relating to the duty to bargain in good 
     faith;
       (4) conduct hearings and resolve complaints of unfair labor 
     practices;
       (5) resolve exceptions to the awards of arbitrators;
       (6) protect the right of each employee to form, join, or 
     assist any labor organization, or to refrain from any such 
     activity, freely and without fear of penalty or reprisal, and 
     protect each employee in the exercise of such right; and
       (7) take such other actions as are necessary and 
     appropriate to effectively administer this subtitle, 
     including issuing subpoenas requiring the attendance and 
     testimony of witnesses and the production of documentary or 
     other evidence from any place in the United States, and 
     administering oaths, taking or ordering the taking of 
     depositions, ordering responses to written interrogatories, 
     and receiving and examining witnesses.
       (c) Enforcement.--
       (1) Authority to petition court.--The Authority may 
     petition any United States Court of Appeals with jurisdiction 
     over the parties, or the United States Court of Appeals for 
     the District of Columbia Circuit, to enforce any final orders 
     under this section, and for appropriate temporary relief or a 
     restraining order. Any petition under this section shall be 
     conducted in accordance with subsections (c) and (d) of 
     section 7123 of title 5, United States Code.
       (2) Private right of action.--Unless the Authority has 
     filed a petition for enforcement as provided in paragraph 
     (1), any party has the right to file suit in a State court of 
     competent jurisdiction to enforce compliance with the 
     regulations issued by the Authority pursuant to subsection 
     (b), and to enforce compliance with any order issued by the 
     Authority pursuant to this section. The right provided by 
     this subsection to bring a suit to enforce compliance with 
     any order issued by the Authority pursuant to this section 
     shall terminate upon the filing of a petition seeking the 
     same relief by the Authority.

     SEC. ___6. STRIKES AND LOCKOUTS PROHIBITED.

       (a) Prohibition.--An employer, public safety officer, or 
     labor organization may not engage in a lockout, sickout, work 
     slowdown, strike, or any other action that will measurably 
     disrupt the delivery of emergency services and is designed to 
     compel an employer, public safety officer, or labor 
     organization to agree to the terms of a proposed contract.
       (b) Mandatory Terms and Conditions.--It shall not be a 
     violation of subsection (a) for a public safety officer or 
     labor organization to refuse to carry out services that are 
     not required under the mandatory terms and conditions of 
     employment applicable to the public safety officer or labor 
     organization.

     SEC. ___7. EXISTING COLLECTIVE BARGAINING UNITS AND 
                   AGREEMENTS.

       A certification, recognition, election-held, collective 
     bargaining agreement or memorandum of understanding which has 
     been issued, approved, or ratified by any public employee 
     relations board or commission or by any State or political 
     subdivision or its agents (management officials) and is in 
     effect on the day before the date of enactment of this 
     subtitle shall not be invalidated by the enactment of this 
     subtitle.

     SEC. ___8. CONSTRUCTION AND COMPLIANCE.

       (a) Construction.--Nothing in this subtitle shall be 
     construed--
       (1) to preempt or limit the remedies, rights, and 
     procedures of any law of any State or political subdivision 
     of any State or jurisdiction that provides greater or 
     comparable rights and responsibilities than the rights and 
     responsibilities described in section ___4(b);
       (2) to prevent a State from enforcing a right-to-work law 
     that prohibits employers and labor organizations from 
     negotiating provisions in a labor agreement that require 
     union membership or payment of union fees as a condition of 
     employment;
       (3) to preempt or limit any State law in effect on the date 
     of enactment of this subtitle that provides for the rights 
     and responsibilities described in section ___4(b) solely 
     because such State law permits an employee to appear on the 
     employee's own behalf with respect to the employee's 
     employment relations with the public safety agency involved;
       (4) to preempt or limit any State law in effect on the date 
     of enactment of this subtitle that provides for the rights 
     and responsibilities described in section ___4(b) solely 
     because such State law excludes from its coverage employees 
     of a State militia or national guard;
       (5) to permit parties in States subject to the regulations 
     and procedures described in section ___5 to negotiate 
     provisions that would prohibit an employee from engaging in 
     part-time employment or volunteer activities during off-duty 
     hours;
       (6) to prohibit a State from exempting from coverage under 
     this subtitle a political subdivision of the State that has a 
     population of less than 5,000 or that employs less than 25 
     full-time employees; or
       (7) to preempt or limit the laws or ordinances of any State 
     or political subdivision of a State that provide for the 
     rights and responsibilities described in section ___4(b) 
     solely because such law does not require bargaining with 
     respect to pension, retirement, or health benefits.

     For purposes of paragraph (6), the term ``employee'' includes 
     each and every individual employed by the political 
     subdivision except any individual elected by popular vote or 
     appointed to serve on a board or commission.
       (b) Compliance.--
       (1) Actions of states.--Nothing in this subtitle or the 
     regulations promulgated under this subtitle shall be 
     construed to require a State to rescind or preempt the laws 
     or ordinances of any of its political subdivisions if such 
     laws provide rights and responsibilities for public safety 
     officers that are comparable to or greater than the rights 
     and responsibilities described in section ___4(b).
       (2) Actions of the authority.--Nothing in this subtitle or 
     the regulations promulgated under this subtitle shall be 
     construed to preempt--
       (A) the laws or ordinances of any State or political 
     subdivision of a State, if such laws provide collective 
     bargaining rights for public safety officers that are 
     comparable to or greater than the rights enumerated in 
     section ___4(b);
       (B) the laws or ordinance of any State or political 
     subdivision of a State that provide for the rights and 
     responsibilities described in section ___4(b) with respect to 
     certain categories of public safety officers covered by this 
     subtitle solely because such rights and responsibilities have 
     not been extended to other categories of public safety 
     officers covered by this subtitle; or
       (C) the laws or ordinances of any State or political 
     subdivision of a State that provides for the rights and 
     responsibilities described in section ___4(b), solely because 
     such laws or ordinances provide that a contract or memorandum 
     of understanding between a public safety employer and a labor 
     organization must be presented to a legislative body as part 
     of the process for approving such contract or memorandum of 
     understanding.
       (3) Limited enforcement power.--In the case of a law 
     described in paragraph (2)(B), the Authority shall only 
     exercise the powers provided in section ___5 with respect to 
     those categories of public safety officers who have not been 
     afforded the rights and responsibilities described in section 
     ___4(b).
       (4) Exclusive enforcement provision.--Notwithstanding any 
     other provision of this

[[Page 33986]]

     subtitle, and in the absence of a waiver of a State's 
     sovereign immunity, the Authority shall have the exclusive 
     power to enforce the provisions of this subtitle with respect 
     to employees of a State or political subdivision of a State.

     SEC. ___9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out the provisions of this subtitle.
       This section shall take effect one day after this bill's 
     enactment.
                                 ______
                                 
  SA 3845. Mr. HARKIN (for Mr. Kennedy (for himself and Mr. Durbin)) 
proposed an amendment to amendment SA 3539 proposed by Mr. Durbin to 
the amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. 
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to 
provide for the continuation of agricultural programs through fiscal 
year 2012, and for other purposes; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 1170_. ACTION BY PRESIDENT AND CONGRESS BASED ON REPORT.

       (a) President.--Not later than 180 days after the date on 
     which the Congressional Bipartisan Food Safety Commission 
     established by section 11060(a)(1)(A) submits to the 
     President and Congress the report required under section 
     11060(b)(3), the President shall--
       (1) review the report; and
       (2) submit to Congress proposed legislation based on the 
     recommendations for statutory language contained in the 
     report, together with an explanation of the differences, if 
     any, between the recommendations for statutory language 
     contained in the report and the proposed legislation.
       (b) Congress.--On receipt of the proposed legislation 
     described in subsection (a), the appropriate committees of 
     Congress may hold such hearings and carry out such other 
     activities as are necessary for appropriate consideration of 
     the recommendations for statutory language contained in the 
     report and the proposed legislation.
       (c) Sense of Senate.--It is the sense of the Senate that--
       (1) it is vital for Congress to provide to food safety 
     agencies of the Federal Government, including the Department 
     of Agriculture and the Food and Drug Administration, 
     additional resources, and direction with respect to ensuring 
     the safety of the food supply of the United States;
       (2) additional inspectors are required to improve the 
     ability of the Federal Government to safeguard the food 
     supply of the United States;
       (3) because of the increasing volume of international trade 
     in food products, the Federal Government should give priority 
     to entering into agreements with trading partners of the 
     United States with respect to food safety; and
       (4) based on the report of the Commission referred to in 
     subsection (a) and the proposed legislation referred to in 
     subsection (b), Congress should work toward a comprehensive 
     legislative response to the issue of food safety.
                                 ______
                                 
  SA 3846. Mr. HARKIN (for Mr. Dodd (for himself and Mr. Shelby)) 
proposed an amendment to the bill S. 2271, to authorize State and local 
governments to divest assets in companies that conduct business 
operations in Sudan, to prohibit United States Government contracts 
with such companies, and for other purposes; as follows:

       On page 5, line 20, insert ``parent company,'' after 
     ``subunit,''.
       On page 7, strike lines 1 through 15.
       On page 9, line 18, insert ``or'' after the semicolon.
       On page 9, strike lines 19 through 21.
       On page 9, line 22, strike ``(G)'' and insert ``(F)''.
       On page 10, between lines 8 and 9, insert the following:
       (3) Applicability.--The measure shall not apply to a person 
     that demonstrates to the State or local government that the 
     person does not conduct or have direct investments in 
     business operations described in subsection (d).
       (4) Sense of congress on avoiding erroneous targeting.--It 
     is the sense of Congress that a State or local government 
     should not adopt a measure under subsection (b) with respect 
     to a person unless the State or local government has made 
     every effort to avoid erroneously targeting the person and 
     has verified that the person conducts or has direct 
     investments in business operations described in subsection 
     (d).
       On page 10, lines 24 and 25, strike ``, directly or 
     indirectly,''.
       On page 16, strike lines 9 through 16.
       On page 16, line 17, strike ``(d)'' and insert ``(c)''.
       On page 17, line 3, strike ``(e)'' and insert ``(d)''.
       On page 17, line 11, strike ``(f)'' and insert ``(e)''.
                                 ______
                                 
  SA 3847. Mr. HARKIN (for Mr. Baucus (for himself and Mr. Grassley)) 
proposed an amendment to the bill H.R. 3997, to amend the Internal 
Revenue Code of 1986 to provide tax relief and protections for military 
personnel, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Defenders 
     of Freedom Tax Relief Act of 2007''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; etc.

       TITLE I--TAX RELIEF AND PROTECTIONS FOR MILITARY PERSONNEL

Sec. 101. Permanent extension of qualified mortgage bond program rules 
              for veterans.
Sec. 102. Exclusion of certain amounts from income for purposes of 
              eligibility for certain housing provisions.
Sec. 103. Permanent extension of election to treat combat pay as earned 
              income for purposes of earned income credit.
Sec. 104. Extension of statute of limitations to file claims for 
              refunds relating to disability determinations by 
              Department of Veterans Affairs.
Sec. 105. Credit for employer differential wage payments to employees 
              who are active duty members of the uniformed services.
Sec. 106. Permanent extension of penalty-free withdrawals from 
              retirement plans by individual called to active duty.
Sec. 107. State payments to service members treated as qualified 
              military benefits.
Sec. 108. Survivor and disability payments with respect to qualified 
              military service.
Sec. 109. Treatment of differential military pay as wages.
Sec. 110. Disclosure of return information relating to veterans 
              programs made permanent.
Sec. 111. Contributions of military death gratuities to Roth IRAs and 
              Education Savings Accounts.

TITLE II--CERTAIN HOUSING BENEFITS FOR INTELLIGENCE COMMUNITY AND PEACE 
                            CORPS VOLUNTEERS

Sec. 201. Permanent exclusion of gain from sale of a principal 
              residence by certain employees of the intelligence 
              community.
Sec. 202. Suspension of 5-year period during service with the Peace 
              Corps.

                     TITLE III--REVENUE PROVISIONS

Sec. 301. Revision of tax rules on expatriation.
Sec. 302. Special enrollment option by employer health plans for 
              members of uniform services who lose health care 
              coverage.
Sec. 303. Increase in minimum penalty on failure to file a return of 
              tax.

       TITLE I--TAX RELIEF AND PROTECTIONS FOR MILITARY PERSONNEL

     SEC. 101. PERMANENT EXTENSION OF QUALIFIED MORTGAGE BOND 
                   PROGRAM RULES FOR VETERANS.

       (a) In General.--Section 143(d)(2)(D) (relating to 
     exception) is amended by striking ``in the case of bonds 
     issued after the date of the enactment of this subparagraph 
     and before January 1, 2008,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2007.

     SEC. 102. EXCLUSION OF CERTAIN AMOUNTS FROM INCOME FOR 
                   PURPOSES OF ELIGIBILITY FOR CERTAIN HOUSING 
                   PROVISIONS.

       (a) In General.--The last sentence of 142(d)(2)(B) 
     (relating to income of individuals; area median gross income) 
     is amended to read as follows ``For purposes of determining 
     income under this subparagraph, subsections (g) and (h) of 
     section 7872 shall not apply and any payments to a member of 
     the Armed Forces under section 403 of title 37, United States 
     Code, as a basic pay allowance for housing, shall be 
     disregarded.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) housing credit dollar amounts allocated after the date 
     of the enactment of this Act, and
       (2) buildings placed in service after such date to the 
     extent paragraph (1) of section 42(h) of the Internal Revenue 
     Code of 1986 does not apply to such building by reason of 
     paragraph (4) thereof, but only with respect to bonds issued 
     after such date.

     SEC. 103. PERMANENT EXTENSION OF ELECTION TO TREAT COMBAT PAY 
                   AS EARNED INCOME FOR PURPOSES OF EARNED INCOME 
                   CREDIT.

       (a) In General.--Clause (vi) of section 32(c)(2)(B) 
     (defining earned income) is amended to read as follows:

[[Page 33987]]

       ``(vi) a taxpayer may elect to treat amounts excluded from 
     gross income by reason of section 112 as earned income.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years ending after December 31, 2007.

     SEC. 104. EXTENSION OF STATUTE OF LIMITATIONS TO FILE CLAIMS 
                   FOR REFUNDS RELATING TO DISABILITY 
                   DETERMINATIONS BY DEPARTMENT OF VETERANS 
                   AFFAIRS.

       (a) In General.--Subsection (d) of section 6511 (relating 
     to special rules applicable to income taxes) is amended by 
     adding at the end the following new paragraph:
       ``(8) Special rules when uniformed services retired pay is 
     reduced as a result of award of disability compensation.--
       ``(A) Period of limitation on filing claim.--If the claim 
     for credit or refund relates to an overpayment of tax imposed 
     by subtitle A on account of--
       ``(i) the reduction of uniformed services retired pay 
     computed under section 1406 or 1407 of title 10, United 
     States Code, or
       ``(ii) the waiver of such pay under section 5305 of title 
     38 of such Code,

     as a result of an award of compensation under title 38 of 
     such Code pursuant to a determination by the Secretary of 
     Veterans Affairs, the 3-year period of limitation prescribed 
     in subsection (a) shall be extended, for purposes of 
     permitting a credit or refund based upon the amount of such 
     reduction or waiver, until the end of the 1-year period 
     beginning on the date of such determination.
       ``(B) Limitation to 5 taxable years.--Subparagraph (A) 
     shall not apply with respect to any taxable year which began 
     more than 5 years before the date of such determination.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to claims for credit or refund filed after the 
     date of the enactment of this Act.
       (c) Transition Rules.--In the case of a determination 
     described in paragraph (8) of section 6511(d) of the Internal 
     Revenue Code of 1986 (as added by this section) which is made 
     by the Secretary of Veterans Affairs after December 31, 2000, 
     and on or before the date of the enactment of this Act, such 
     paragraph--
       (1) shall not apply with respect to any taxable year which 
     began before January 1, 2001, and
       (2) shall be applied by substituting ``the date of the 
     enactment of the Defenders of Freedom Tax Relief Act of 
     2007'' for ``the date of such determination'' in subparagraph 
     (A) thereof.

     SEC. 105. CREDIT FOR EMPLOYER DIFFERENTIAL WAGE PAYMENTS TO 
                   EMPLOYEES WHO ARE ACTIVE DUTY MEMBERS OF THE 
                   UNIFORMED SERVICES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business credits) is amended by adding 
     at the end the following new section:

     ``SEC. 45O. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE 
                   DUTY MEMBERS OF THE UNIFORMED SERVICES.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of an eligible small business employer, the differential 
     wage payment credit for any taxable year is an amount equal 
     to 20 percent of the sum of the eligible differential wage 
     payments for each of the qualified employees of the taxpayer 
     during such taxable year.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Eligible differential wage payments.--The term 
     `eligible differential wage payments' means, with respect to 
     each qualified employee, so much of the differential wage 
     payments (as defined in section 3401(h)(2)) paid to such 
     employee for the taxable year as does not exceed $20,000.
       ``(2) Qualified employee.--The term `qualified employee' 
     means a person who has been an employee of the taxpayer for 
     the 91-day period immediately preceding the period for which 
     any differential wage payment is made.
       ``(3) Eligible small business employer.--
       ``(A) In general.--The term `eligible small business 
     employer' means, with respect to any taxable year, any 
     employer which--
       ``(i) employed an average of less that 50 employees on 
     business days during such taxable year, and
       ``(ii) under a written plan of the employer, provides 
     eligible differential wage payments to every qualified 
     employee of the employer.
       ``(B) Controlled groups.--For purposes of subparagraph (A), 
     all persons treated as a single employer under subsection 
     (b), (c), (m), or (o) of section 414 shall be treated as a 
     single employer.
       ``(c) Coordination With Other Credits.--The amount of 
     credit otherwise allowable under this chapter with respect to 
     compensation paid to any employee shall be reduced by the 
     credit determined under this section with respect to such 
     employee.
       ``(d) Disallowance for Failure To Comply With Employment or 
     Reemployment Rights of Members of the Reserve Components of 
     the Armed Forces of the United States.--No credit shall be 
     allowed under subsection (a) to a taxpayer for--
       ``(1) any taxable year, beginning after the date of the 
     enactment of this section, in which the taxpayer is under a 
     final order, judgment, or other process issued or required by 
     a district court of the United States under section 4323 of 
     title 38 of the United States Code with respect to a 
     violation of chapter 43 of such title, and
       ``(2) the 2 succeeding taxable years.
       ``(e) Certain Rules to Apply.--For purposes of this 
     section, rules similar to the rules of subsections (c), (d), 
     and (e) of section 52 shall apply.
       ``(f) Termination.--This section shall not apply to any 
     payments made after December 31, 2009.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to general business credit) is 
     amended by striking ``plus'' at the end of paragraph (30), by 
     striking the period at the end of paragraph (31) and 
     inserting ``, plus'', and by adding at the end of following 
     new paragraph:
       ``(32) the differential wage payment credit determined 
     under section 45O(a).''.
       (c) No Deduction for Compensation Taken Into Account for 
     Credit.--Section 280C(a) (relating to rule for employment 
     credits) is amended by inserting ``45O(a),'' after 
     ``45A(a),''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45O. Employer wage credit for employees who are active duty 
              members of the uniformed services.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to amounts paid after the date of the enactment 
     of this Act.

     SEC. 106. PERMANENT EXTENSION OF PENALTY-FREE WITHDRAWALS 
                   FROM RETIREMENT PLANS BY INDIVIDUAL CALLED TO 
                   ACTIVE DUTY.

       Clause (iv) of section 72(t)(2)(G) (relating to 
     distributions from retirement plans to individuals called to 
     active duty) is amended by striking all after ``September 11, 
     2001'' and inserting a period.

     SEC. 107. STATE PAYMENTS TO SERVICE MEMBERS TREATED AS 
                   QUALIFIED MILITARY BENEFITS.

       (a) In General.--Section 134(b) (defining qualified 
     military benefit) is amended by adding at the end the 
     following new paragraph:
       ``(6) Certain state payments.--The term `qualified military 
     benefit' includes any bonus payment by a State or political 
     subdivision thereof to any member or former member of the 
     uniformed services of the United States or any dependent of 
     such member only by reason of such member's service in an 
     combat zone (as defined in section 112(c)(2), determined 
     without regard to the parenthetical).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made before, on, or after the date of 
     the enactment of this Act.

     SEC. 108. SURVIVOR AND DISABILITY PAYMENTS WITH RESPECT TO 
                   QUALIFIED MILITARY SERVICE.

       (a) Plan Qualification Requirement for Death Benefits Under 
     USERRA-Qualified Active Military Service.--Subsection (a) of 
     section 401 (relating to requirements for qualification) is 
     amended by inserting after paragraph (36) the following new 
     paragraph:
       ``(37) Death benefits under userra-qualified active 
     military service.--A trust shall not constitute a qualified 
     trust unless the plan provides that, in the case of a 
     participant who dies while performing qualified military 
     service (as defined in section 414(u)), the survivors of the 
     participant are entitled to any additional benefits (other 
     than benefit accruals relating to the period of qualified 
     military service) provided under the plan had the participant 
     resumed and then terminated employment on account of 
     death.''.
       (b) Treatment in the Case of Death or Disability Resulting 
     From Active Military Service for Benefit Accrual Purposes.--
     Subsection (u) of section 414 (relating to special rules 
     relating to veterans' reemployment rights under USERRA) is 
     amended by redesignating paragraphs (9) and (10) as 
     paragraphs (10) and (11), respectively, and by inserting 
     after paragraph (8) the following new paragraph:
       ``(9) Treatment in the case of death or disability 
     resulting from active military service.--
       ``(A) In general.--For benefit accrual purposes, an 
     employer sponsoring a retirement plan may treat an individual 
     who dies or becomes disabled (as defined under the terms of 
     the plan) while performing qualified military service with 
     respect to the employer maintaining the plan as if the 
     individual has resumed employment in accordance with the 
     individual's reemployment rights under chapter 43 of title 
     38, United States Code, on the day preceding death or 
     disability (as the case may be) and terminated employment on 
     the actual date of death or disability. In the case of any 
     such treatment, and subject to subparagraphs (B) and (C), any 
     full or partial compliance by such plan with respect to the 
     benefit accrual requirements of paragraph (8) with respect to 
     such individual shall be treated for purposes of paragraph 
     (1) as if such compliance were required under such chapter 
     43.
       ``(B) Nondiscrimination requirement.--Subparagraph (A) 
     shall apply only if all individuals performing qualified 
     military service with respect to the employer maintaining

[[Page 33988]]

     the plan (as determined under subsections (b), (c), (m), and 
     (o)) who die or became disabled as a result of performing 
     qualified military service prior to reemployment by the 
     employer are credited with service and benefits on reasonably 
     equivalent terms.
       ``(C) Determination of benefits.--The amount of employee 
     contributions and the amount of elective deferrals of an 
     individual treated as reemployed under subparagraph (A) for 
     purposes of applying paragraph (8)(C) shall be determined on 
     the basis of the individual's average actual employee 
     contributions or elective deferrals for the lesser of--
       ``(i) the 12-month period of service with the employer 
     immediately prior to qualified military service, or
       ``(ii) if service with the employer is less than such 12-
     month period, the actual length of continuous service with 
     the employer.''.
       (c) Conforming Amendments.--
       (1) Section 404(a)(2) is amended by striking ``and (31)'' 
     and inserting ``(31), and (37)''.
       (2) Section 403(b) is amended by adding at the end the 
     following new paragraph:
       ``(14) Death benefits under userra-qualified active 
     military service.--This subsection shall not apply to an 
     annuity contract unless such contract meets the requirements 
     of section 401(a)(37).''.
       (3) Section 457(g) is amended by adding at the end the 
     following new paragraph:
       ``(4) Death benefits under userra-qualified active military 
     service.--A plan described in paragraph (1) shall not be 
     treated as an eligible deferred compensation plan unless such 
     plan meets the requirements of section 401(a)(37).''.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to deaths and disabilities occurring on or 
     after January 1, 2007.
       (2) Provisions relating to plan amendments.--
       (A) In general.--If this subparagraph applies to any plan 
     or contract amendment, such plan or contract shall be treated 
     as being operated in accordance with the terms of the plan 
     during the period described in subparagraph (B)(iii).
       (B) Amendments to which subparagraph (A) applies.--
       (i) In general.--Subparagraph (A) shall apply to any 
     amendment to any plan or annuity contract which is made--

       (I) pursuant to the amendments made by subsection (a) or 
     pursuant to any regulation issued by the Secretary of the 
     Treasury under subsection (a), and
       (II) on or before the last day of the first plan year 
     beginning on or after January 1, 2009.

     In the case of a governmental plan (as defined in section 
     414(d) of the Internal Revenue Code of 1986), this clause 
     shall be applied by substituting ``2011'' for ``2009'' in 
     subclause (II).
       (ii) Conditions.--This paragraph shall not apply to any 
     amendment unless--

       (I) the plan or contract is operated as if such plan or 
     contract amendment were in effect for the period described in 
     clause (iii), and
       (II) such plan or contract amendment applies retroactively 
     for such period.

       (iii) Period described.--The period described in this 
     clause is the period--

       (I) beginning on the effective date specified by the plan, 
     and
       (II) ending on the date described in clause (i)(II) (or, if 
     earlier, the date the plan or contract amendment is adopted).

     SEC. 109. TREATMENT OF DIFFERENTIAL MILITARY PAY AS WAGES.

       (a) Income Tax Withholding on Differential Wage Payments.--
       (1) In general.--Section 3401 (relating to definitions) is 
     amended by adding at the end the following new subsection:
       ``(h) Differential Wage Payments to Active Duty Members of 
     the Uniformed Services.--
       ``(1) In general.--For purposes of subsection (a), any 
     differential wage payment shall be treated as a payment of 
     wages by the employer to the employee.
       ``(2) Differential wage payment.--For purposes of paragraph 
     (1), the term `differential wage payment' means any payment 
     which--
       ``(A) is made by an employer to an individual with respect 
     to any period during which the individual is performing 
     service in the uniformed services while on active duty for a 
     period of more than 30 days, and
       ``(B) represents all or a portion of the wages the 
     individual would have received from the employer if the 
     individual were performing service for the employer.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to remuneration paid after December 31, 2007.
       (b) Treatment of Differential Wage Payments for Retirement 
     Plan Purposes.--
       (1) Pension plans.--
       (A) In general.--Section 414(u) (relating to special rules 
     relating to veterans' reemployment rights under USERRA), as 
     amended by this Act, is amended by redesignating paragraphs 
     (10) and (11) as paragraphs (11) and (12), respectively, and 
     by inserting after paragraph (9) the following new paragraph:
       ``(10) Treatment of differential wage payments.--
       ``(A) In general.--Except as provided in this paragraph, 
     for purposes of applying this title to a retirement plan to 
     which this subsection applies--
       ``(i) an individual receiving a differential wage payment 
     shall be treated as an employee of the employer making the 
     payment,
       ``(ii) the differential wage payment shall be treated as 
     compensation, and
       ``(iii) the plan shall not be treated as failing to meet 
     the requirements of any provision described in paragraph 
     (1)(C) by reason of any contribution or benefit which is 
     based on the differential wage payment.
       ``(B) Special rule for distributions.--
       ``(i) In general.--Notwithstanding subparagraph (A)(i), for 
     purposes of section 401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii), 
     403(b)(11)(A), or 457(d)(1)(A)(ii), an individual shall be 
     treated as having been severed from employment during any 
     period the individual is performing service in the uniformed 
     services described in section 3401(h)(2)(A).
       ``(ii) Limitation.--If an individual elects to receive a 
     distribution by reason of clause (i), the plan shall provide 
     that the individual may not make an elective deferral or 
     employee contribution during the 6-month period beginning on 
     the date of the distribution.
       ``(C) Nondiscrimination requirement.--Subparagraph (A)(iii) 
     shall apply only if all employees of an employer (as 
     determined under subsections (b), (c), (m), and (o)) 
     performing service in the uniformed services described in 
     section 3401(h)(2)(A) are entitled to receive differential 
     wage payments on reasonably equivalent terms and, if eligible 
     to participate in a retirement plan maintained by the 
     employer, to make contributions based on the payments on 
     reasonably equivalent terms. For purposes of applying this 
     subparagraph, the provisions of paragraphs (3), (4), and (5) 
     of section 410(b) shall apply.
       ``(D) Differential wage payment.--For purposes of this 
     paragraph, the term `differential wage payment' has the 
     meaning given such term by section 3401(h)(2).''.
       (B) Conforming amendment.--The heading for section 414(u) 
     is amended by inserting ``and to Differential Wage Payments 
     to Members on Active Duty'' after ``USERRA''.
       (2) Differential wage payments treated as compensation for 
     individual retirement plans.--Section 219(f)(1) (defining 
     compensation) is amended by adding at the end the following 
     new sentence: ``The term `compensation' includes any 
     differential wage payment (as defined in section 
     3401(h)(2)).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to years beginning after December 31, 2007.
       (c) Provisions Relating to Plan Amendments.--
       (1) In general.--If this subsection applies to any plan or 
     annuity contract amendment--
       (A) such plan or contract shall be treated as being 
     operated in accordance with the terms of the plan or contract 
     during the period described in paragraph (2)(B)(i), and
       (B) except as provided by the Secretary of the Treasury, 
     such plan shall not fail to meet the requirements of the 
     Internal Revenue Code of 1986 or the Employee Retirement 
     Income Security Act of 1974 by reason of such amendment.
       (2) Amendments to which section applies.--
       (A) In general.--This subsection shall apply to any 
     amendment to any plan or annuity contract which is made--
       (i) pursuant to any amendment made by this section, and
       (ii) on or before the last day of the first plan year 
     beginning on or after January 1, 2009.
       (B) Conditions.--This subsection shall not apply to any 
     plan or annuity contract amendment unless--
       (i) during the period beginning on the date the amendment 
     described in subparagraph (A)(i) takes effect and ending on 
     the date described in subparagraph (A)(ii) (or, if earlier, 
     the date the plan or contract amendment is adopted), the plan 
     or contract is operated as if such plan or contract amendment 
     were in effect, and
       (ii) such plan or contract amendment applies retroactively 
     for such period.

     SEC. 110. DISCLOSURE OF RETURN INFORMATION RELATING TO 
                   VETERANS PROGRAMS MADE PERMANENT.

       (a) In General.--Subparagraph (D) of section 6103(l)(7) 
     (relating to disclosure of return information to Federal, 
     State, and local agencies administering certain programs 
     under the Social Security Act, the Food Stamp Act of 1977, or 
     title 38, United States Code or certain housing assistance 
     programs) is amended by striking the last sentence.
       (b) Effective Date.--The amendments made by this section 
     shall apply to requests made after September 30, 2008.

     SEC. 111. CONTRIBUTIONS OF MILITARY DEATH GRATUITIES TO ROTH 
                   IRAS AND EDUCATION SAVINGS ACCOUNTS.

       (a) Provision in Effect Before Pension Protection Act.--
     Subsection (e) of section 408A (relating to qualified 
     rollover contribution), as in effect before the amendments 
     made by section 824 of the Pension Protection Act of 2006, is 
     amended to read as follows:
       ``(e) Qualified Rollover Contribution.--For purposes of 
     this section--

[[Page 33989]]

       ``(1) In general.--The term `qualified rollover 
     contribution' means a rollover contribution to a Roth IRA 
     from another such account, or from an individual retirement 
     plan, but only if such rollover contribution meets the 
     requirements of section 408(d)(3). Such term includes a 
     rollover contribution described in section 402A(c)(3)(A). For 
     purposes of section 408(d)(3)(B), there shall be disregarded 
     any qualified rollover contribution from an individual 
     retirement plan (other than a Roth IRA) to a Roth IRA.
       ``(2) Military death gratuity.--
       ``(A) In general.--The term `qualified rollover 
     contribution' includes a contribution to a Roth IRA 
     maintained for the benefit of an individual made before the 
     end of the 1-year period beginning on the date on which such 
     individual receives an amount under section 1477 of title 10, 
     United States Code, or section 1967 of title 38 of such Code, 
     with respect to a person, to the extent that such 
     contribution does not exceed--
       ``(i) the sum of the amounts received during such period by 
     such individual under such sections with respect to such 
     person, reduced by
       ``(ii) the amounts so received which were contributed to a 
     Coverdell education savings account under section 530(d)(9).
       ``(B) Annual limit on number of rollovers not to apply.--
     Section 408(d)(3)(B) shall not apply with respect to amounts 
     treated as a rollover by subparagraph (A).
       ``(C) Application of section 72.--For purposes of applying 
     section 72 in the case of a distribution which is not a 
     qualified distribution, the amount treated as a rollover by 
     reason of subparagraph (A) shall be treated as investment in 
     the contract.''.
       (b) Provision in Effect After Pension Protection Act.--
     Subsection (e) of section 408A, as in effect after the 
     amendments made by section 824 of the Pension Protection Act 
     of 2006, is amended to read as follows:
       ``(e) Qualified Rollover Contribution.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified rollover 
     contribution' means a rollover contribution--
       ``(A) to a Roth IRA from another such account,
       ``(B) from an eligible retirement plan, but only if--
       ``(i) in the case of an individual retirement plan, such 
     rollover contribution meets the requirements of section 
     408(d)(3), and
       ``(ii) in the case of any eligible retirement plan (as 
     defined in section 402(c)(8)(B) other than clauses (i) and 
     (ii) thereof), such rollover contribution meets the 
     requirements of section 402(c), 403(b)(8), or 457(e)(16), as 
     applicable.

     For purposes of section 408(d)(3)(B), there shall be 
     disregarded any qualified rollover contribution from an 
     individual retirement plan (other than a Roth IRA) to a Roth 
     IRA.
       ``(2) Military death gratuity.--
       ``(A) In general.--The term `qualified rollover 
     contribution' includes a contribution to a Roth IRA 
     maintained for the benefit of an individual made before the 
     end of the 1-year period beginning on the date on which such 
     individual receives an amount under section 1477 of title 10, 
     United States Code, or section 1967 of title 38 of such Code, 
     with respect to a person, to the extent that such 
     contribution does not exceed--
       ``(i) the sum of the amounts received during such period by 
     such individual under such sections with respect to such 
     person, reduced by
       ``(ii) the amounts so received which were contributed to a 
     Coverdell education savings account under section 530(d)(9).
       ``(B) Annual limit on number of rollovers not to apply.--
     Section 408(d)(3)(B) shall not apply with respect to amounts 
     treated as a rollover by the subparagraph (A).
       ``(C) Application of section 72.--For purposes of applying 
     section 72 in the case of a distribution which is not a 
     qualified distribution, the amount treated as a rollover by 
     reason of subparagraph (A) shall be treated as investment in 
     the contract.''.
       (c) Education Savings Accounts.--Subsection (d) of section 
     530 is amended by adding at the end the following new 
     paragraph:
       ``(9) Military death gratuity.--
       ``(A) In general.--For purposes of this section, the term 
     `rollover contribution' includes a contribution to a 
     Coverdell education savings account made before the end of 
     the 1-year period beginning on the date on which the 
     contributor receives an amount under section 1477 of title 
     10, United States Code, or section 1967 of title 38 of such 
     Code, with respect to a person, to the extent that such 
     contribution does not exceed--
       ``(i) the sum of the amounts received during such period by 
     such contributor under such sections with respect to such 
     person, reduced by
       ``(ii) the amounts so received which were contributed to a 
     Roth IRA under section 408A(e)(2) or to another Coverdell 
     education savings account.
       ``(B) Annual limit on number of rollovers not to apply.--
     The last sentence of paragraph (5) shall not apply with 
     respect to amounts treated as a rollover by the subparagraph 
     (A).
       ``(C) Application of section 72.--For purposes of applying 
     section 72 in the case of a distribution which is includible 
     in gross income under paragraph (1), the amount treated as a 
     rollover by reason of subparagraph (A) shall be treated as 
     investment in the contract.''.
       (d) Effective Dates.--
       (1) In general.--Except as provided by paragraphs (2) and 
     (3), the amendments made by this section shall apply with 
     respect to deaths from injuries occurring on or after the 
     date of the enactment of this Act.
       (2) Application of amendments to deaths from injuries 
     occurring on or after october 7, 2001, and before 
     enactment.--The amendments made by this section shall apply 
     to any contribution made pursuant to section 408A(e)(2) or 
     530(d)(5) of the Internal Revenue Code of 1986, as amended by 
     this Act, with respect to amounts received under section 1477 
     of title 10, United States Code, or under section 1967 of 
     title 38 of such Code, for deaths from injuries occurring on 
     or after October 7, 2001, and before the date of the 
     enactment of this Act if such contribution is made not later 
     than 1 year after the date of the enactment of this Act.
       (3) Pension protection act changes.--Section 408A(e)(1) of 
     the Internal Revenue Code of 1986 (as in effect after the 
     amendments made by subsection (b)) shall apply to taxable 
     years beginning after December 31, 2007.

TITLE II--CERTAIN HOUSING BENEFITS FOR INTELLIGENCE COMMUNITY AND PEACE 
                            CORPS VOLUNTEERS

     SEC. 201. PERMANENT EXCLUSION OF GAIN FROM SALE OF A 
                   PRINCIPAL RESIDENCE BY CERTAIN EMPLOYEES OF THE 
                   INTELLIGENCE COMMUNITY.

       (a) In General.--Section 417(e) of division A of the Tax 
     Relief and Health Care Act of 2006 is amended by striking 
     ``and before January 1, 2011''.
       (b) Duty Station May Be Outside United States.--Section 
     121(d)(9)(C) (defining qualified official extended duty) is 
     amended by striking clause (vi).
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales or exchanges after December 31, 2010.

     SEC. 202. SUSPENSION OF 5-YEAR PERIOD DURING SERVICE WITH THE 
                   PEACE CORPS.

       (a) In General.--Subsection (d) of section 121 (relating to 
     special rules) is amended by adding at the end the following 
     new paragraph:
       ``(12) Peace corps.--
       ``(A) In general.--At the election of an individual with 
     respect to a property, the running of the 5-year period 
     described in subsections (a) and (c)(1)(B) and paragraph (7) 
     of this subsection with respect to such property shall be 
     suspended during any period that such individual or such 
     individual's spouse is serving outside the United States--
       ``(i) on qualified official extended duty (as defined in 
     paragraph (9)(C)) as an employee of the Peace Corps, or
       ``(ii) as an enrolled volunteer or volunteer leader under 
     section 5 or 6 (as the case may be) of the Peace Corps Act 
     (22 U.S.C. 2504, 2505).
       ``(B) Applicable rules.--For purposes of subparagraph (A), 
     rules similar to the rules of subparagraphs (B) and (D) shall 
     apply.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2007.

                     TITLE III--REVENUE PROVISIONS

     SEC. 301. REVISION OF TAX RULES ON EXPATRIATION.

       (a) In General.--Subpart A of part II of subchapter N of 
     chapter 1 is amended by inserting after section 877 the 
     following new section:

     ``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

       ``(a) General Rules.--For purposes of this subtitle--
       ``(1) Mark to market.--All property of a covered expatriate 
     shall be treated as sold on the day before the expatriation 
     date for its fair market value.
       ``(2) Recognition of gain or loss.--In the case of any sale 
     under paragraph (1)--
       ``(A) notwithstanding any other provision of this title, 
     any gain arising from such sale shall be taken into account 
     for the taxable year of the sale, and
       ``(B) any loss arising from such sale shall be taken into 
     account for the taxable year of the sale to the extent 
     otherwise provided by this title, except that section 1091 
     shall not apply to any such loss.
     Proper adjustment shall be made in the amount of any gain or 
     loss subsequently realized for gain or loss taken into 
     account under the preceding sentence, determined without 
     regard to paragraph (3).
       ``(3) Exclusion for certain gain.--
       ``(A) In general.--The amount which would (but for this 
     paragraph) be includible in the gross income of any 
     individual by reason of paragraph (1) shall be reduced (but 
     not below zero) by $600,000.
       ``(B) Adjustment for inflation.--
       ``(i) In general.--In the case of any taxable year 
     beginning in a calendar year after 2008, the dollar amount in 
     subparagraph (A) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2007' for 
     `calendar year 1992' in subparagraph (B) thereof.

       ``(ii) Rounding.--If any amount as adjusted under clause 
     (i) is not a multiple of $1,000,

[[Page 33990]]

     such amount shall be rounded to the nearest multiple of 
     $1,000.
       ``(b) Election To Defer Tax.--
       ``(1) In general.--If the taxpayer elects the application 
     of this subsection with respect to any property treated as 
     sold by reason of subsection (a), the time for payment of the 
     additional tax attributable to such property shall be 
     extended until the due date of the return for the taxable 
     year in which such property is disposed of (or, in the case 
     of property disposed of in a transaction in which gain is not 
     recognized in whole or in part, until such other date as the 
     Secretary may prescribe).
       ``(2) Determination of tax with respect to property.--For 
     purposes of paragraph (1), the additional tax attributable to 
     any property is an amount which bears the same ratio to the 
     additional tax imposed by this chapter for the taxable year 
     solely by reason of subsection (a) as the gain taken into 
     account under subsection (a) with respect to such property 
     bears to the total gain taken into account under subsection 
     (a) with respect to all property to which subsection (a) 
     applies.
       ``(3) Termination of extension.--The due date for payment 
     of tax may not be extended under this subsection later than 
     the due date for the return of tax imposed by this chapter 
     for the taxable year which includes the date of death of the 
     expatriate (or, if earlier, the time that the security 
     provided with respect to the property fails to meet the 
     requirements of paragraph (4), unless the taxpayer corrects 
     such failure within the time specified by the Secretary).
       ``(4) Security.--
       ``(A) In general.--No election may be made under paragraph 
     (1) with respect to any property unless adequate security is 
     provided with respect to such property.
       ``(B) Adequate security.--For purposes of subparagraph (A), 
     security with respect to any property shall be treated as 
     adequate security if--
       ``(i) it is a bond which is furnished to, and accepted by, 
     the Secretary, which is conditioned on the payment of tax 
     (and interest thereon), and which meets the requirements of 
     section 6325, or
       ``(ii) it is another form of security for such payment 
     (including letters of credit) that meets such requirements as 
     the Secretary may prescribe.
       ``(5) Waiver of certain rights.--No election may be made 
     under paragraph (1) unless the taxpayer makes an irrevocable 
     waiver of any right under any treaty of the United States 
     which would preclude assessment or collection of any tax 
     imposed by reason of this section.
       ``(6) Elections.--An election under paragraph (1) shall 
     only apply to property described in the election and, once 
     made, is irrevocable.
       ``(7) Interest.--For purposes of section 6601, the last 
     date for the payment of tax shall be determined without 
     regard to the election under this subsection.
       ``(c) Exception for Certain Property.--Subsection (a) shall 
     not apply to--
       ``(1) any deferred compensation item (as defined in 
     subsection (d)(4)),
       ``(2) any specified tax deferred account (as defined in 
     subsection (e)(2)), and
       ``(3) any interest in a nongrantor trust (as defined in 
     subsection (f)(3)).
       ``(d) Treatment of Deferred Compensation Items.--
       ``(1) Withholding on eligible deferred compensation 
     items.--
       ``(A) In general.--In the case of any eligible deferred 
     compensation item, the payor shall deduct and withhold from 
     any taxable payment to a covered expatriate with respect to 
     such item a tax equal to 30 percent thereof.
       ``(B) Taxable payment.--For purposes of subparagraph (A), 
     the term `taxable payment' means with respect to a covered 
     expatriate any payment to the extent it would be includible 
     in the gross income of the covered expatriate if such 
     expatriate continued to be subject to tax as a citizen or 
     resident of the United States. A deferred compensation item 
     shall be taken into account as a payment under the preceding 
     sentence when such item would be so includible.
       ``(2) Other deferred compensation items.--In the case of 
     any deferred compensation item which is not an eligible 
     deferred compensation item--
       ``(A)(i) with respect to any deferred compensation item to 
     which clause (ii) does not apply, an amount equal to the 
     present value of the covered expatriate's accrued benefit 
     shall be treated as having been received by such individual 
     on the day before the expatriation date as a distribution 
     under the plan, and
       ``(ii) with respect to any deferred compensation item 
     referred to in paragraph (4)(D), the rights of the covered 
     expatriate to such item shall be treated as becoming 
     transferable and not subject to a substantial risk of 
     forfeiture on the day before the expatriation date,
       ``(B) no early distribution tax shall apply by reason of 
     such treatment, and
       ``(C) appropriate adjustments shall be made to subsequent 
     distributions from the plan to reflect such treatment.
       ``(3) Eligible deferred compensation items.--For purposes 
     of this subsection, the term `eligible deferred compensation 
     item' means any deferred compensation item with respect to 
     which--
       ``(A) the payor of such item is--
       ``(i) a United States person, or
       ``(ii) a person who is not a United States person but who 
     elects to be treated as a United States person for purposes 
     of paragraph (1) and meets such requirements as the Secretary 
     may provide to ensure that the payor will meet the 
     requirements of paragraph (1), and
       ``(B) the covered expatriate--
       ``(i) notifies the payor of his status as a covered 
     expatriate, and
       ``(ii) makes an irrevocable waiver of any right to claim 
     any reduction under any treaty with the United States in 
     withholding on such item.
       ``(4) Deferred compensation item.--For purposes of this 
     subsection, the term `deferred compensation item' means--
       ``(A) any interest in a plan or arrangement described in 
     section 219(g)(5),
       ``(B) any interest in a foreign pension plan or similar 
     retirement arrangement or program,
       ``(C) any item of deferred compensation, and
       ``(D) any property, or right to property, which the 
     individual is entitled to receive in connection with the 
     performance of services to the extent not previously taken 
     into account under section 83 or in accordance with section 
     83.
       ``(5) Exception.--Paragraphs (1) and (2) shall not apply to 
     any deferred compensation item which is attributable to 
     services performed outside the United States while the 
     covered expatriate was not a citizen or resident of the 
     United States.
       ``(6) Special rules.--
       ``(A) Application of withholding rules.--Rules similar to 
     the rules of subchapter B of chapter 3 shall apply for 
     purposes of this subsection.
       ``(B) Application of tax.--Any item subject to the 
     withholding tax imposed under paragraph (1) shall be subject 
     to tax under section 871.
       ``(C) Coordination with other withholding requirements.--
     Any item subject to withholding under paragraph (1) shall not 
     be subject to withholding under section 1441 or chapter 24.
       ``(e) Treatment of Specified Tax Deferred Accounts.--
       ``(1) Account treated as distributed.--In the case of any 
     interest in a specified tax deferred account held by a 
     covered expatriate on the day before the expatriation date--
       ``(A) the covered expatriate shall be treated as receiving 
     a distribution of his entire interest in such account on the 
     day before the expatriation date,
       ``(B) no early distribution tax shall apply by reason of 
     such treatment, and
       ``(C) appropriate adjustments shall be made to subsequent 
     distributions from the account to reflect such treatment.
       ``(2) Specified tax deferred account.--For purposes of 
     paragraph (1), the term `specified tax deferred account' 
     means an individual retirement plan (as defined in section 
     7701(a)(37)) other than any arrangement described in 
     subsection (k) or (p) of section 408, a qualified tuition 
     program (as defined in section 529), a Coverdell education 
     savings account (as defined in section 530), a health savings 
     account (as defined in section 223), and an Archer MSA (as 
     defined in section 220).
       ``(f) Special Rules for Nongrantor Trusts.--
       ``(1) In general.--In the case of a distribution (directly 
     or indirectly) of any property from a nongrantor trust to a 
     covered expatriate--
       ``(A) the trustee shall deduct and withhold from such 
     distribution an amount equal to 30 percent of the taxable 
     portion of the distribution, and
       ``(B) if the fair market value of such property exceeds its 
     adjusted basis in the hands of the trust, gain shall be 
     recognized to the trust as if such property were sold to the 
     expatriate at its fair market value.
       ``(2) Taxable portion.--For purposes of this subsection, 
     the term `taxable portion' means, with respect to any 
     distribution, that portion of the distribution which would be 
     includible in the gross income of the covered expatriate if 
     such expatriate continued to be subject to tax as a citizen 
     or resident of the United States.
       ``(3) Nongrantor trust.--For purposes of this subsection, 
     the term `nongrantor trust' means the portion of any trust 
     that the individual is not considered the owner of under 
     subpart E of part I of subchapter J. The determination under 
     the preceding sentence shall be made immediately before the 
     expatriation date.
       ``(4) Special rules relating to withholding.--For purposes 
     of this subsection--
       ``(A) rules similar to the rules of subsection (d)(6) shall 
     apply, and
       ``(B) the covered expatriate shall be treated as having 
     waived any right to claim any reduction under any treaty with 
     the United States in withholding on any distribution to which 
     paragraph (1)(A) applies.
       ``(5) Application.--This subsection shall apply to a 
     nongrantor trust only if the covered expatriate was a 
     beneficiary of the trust on the day before the expatriation 
     date.
       ``(g) Definitions and Special Rules Relating to 
     Expatriation.--For purposes of this section--

[[Page 33991]]

       ``(1) Covered expatriate.--
       ``(A) In general.--The term `covered expatriate' means an 
     expatriate who meets the requirements of subparagraph (A), 
     (B), or (C) of section 877(a)(2).
       ``(B) Exceptions.--An individual shall not be treated as 
     meeting the requirements of subparagraph (A) or (B) of 
     section 877(a)(2) if--
       ``(i) the individual--

       ``(I) became at birth a citizen of the United States and a 
     citizen of another country and, as of the expatriation date, 
     continues to be a citizen of, and is taxed as a resident of, 
     such other country, and
       ``(II) has been a resident of the United States (as defined 
     in section 7701(b)(1)(A)(ii)) for not more than 10 taxable 
     years during the 15-taxable year period ending with the 
     taxable year during which the expatriation date occurs, or

       ``(ii)(I) the individual's relinquishment of United States 
     citizenship occurs before such individual attains age 18\1/
     2\, and
       ``(II) the individual has been a resident of the United 
     States (as so defined) for not more than 10 taxable years 
     before the date of relinquishment.
       ``(C) Covered expatriates also subject to tax as citizens 
     or residents.--In the case of any covered expatriate who is 
     subject to tax as a citizen or resident of the United States 
     for any period beginning after the expatriation date, such 
     individual shall not be treated as a covered expatriate 
     during such period for purposes of subsections (d)(1) and (f) 
     and section 2801.
       ``(2) Expatriate.--The term `expatriate' means--
       ``(A) any United States citizen who relinquishes his 
     citizenship, and
       ``(B) any long-term resident of the United States who 
     ceases to be a lawful permanent resident of the United States 
     (within the meaning of section 7701(b)(6)).
       ``(3) Expatriation date.--The term `expatriation date' 
     means--
       ``(A) the date an individual relinquishes United States 
     citizenship, or
       ``(B) in the case of a long-term resident of the United 
     States, the date on which the individual ceases to be a 
     lawful permanent resident of the United States (within the 
     meaning of section 7701(b)(6)).
       ``(4) Relinquishment of citizenship.--A citizen shall be 
     treated as relinquishing his United States citizenship on the 
     earliest of--
       ``(A) the date the individual renounces his United States 
     nationality before a diplomatic or consular officer of the 
     United States pursuant to paragraph (5) of section 349(a) of 
     the Immigration and Nationality Act (8 U.S.C. 1481(a)(5)),
       ``(B) the date the individual furnishes to the United 
     States Department of State a signed statement of voluntary 
     relinquishment of United States nationality confirming the 
     performance of an act of expatriation specified in paragraph 
     (1), (2), (3), or (4) of section 349(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
       ``(C) the date the United States Department of State issues 
     to the individual a certificate of loss of nationality, or
       ``(D) the date a court of the United States cancels a 
     naturalized citizen's certificate of naturalization.
     Subparagraph (A) or (B) shall not apply to any individual 
     unless the renunciation or voluntary relinquishment is 
     subsequently approved by the issuance to the individual of a 
     certificate of loss of nationality by the United States 
     Department of State.
       ``(5) Long-term resident.--The term `long-term resident' 
     has the meaning given to such term by section 877(e)(2).
       ``(6) Early distribution tax.--The term `early distribution 
     tax' means any increase in tax imposed under section 72(t), 
     220(e)(4), 223(f)(4), 409A(a)(1)(B), 529(c)(6), or 530(d)(4).
       ``(h) Other Rules.--
       ``(1) Termination of deferrals, etc.--In the case of any 
     covered expatriate, notwithstanding any other provision of 
     this title--
       ``(A) any time period for acquiring property which would 
     result in the reduction in the amount of gain recognized with 
     respect to property disposed of by the taxpayer shall 
     terminate on the day before the expatriation date, and
       ``(B) any extension of time for payment of tax shall cease 
     to apply on the day before the expatriation date and the 
     unpaid portion of such tax shall be due and payable at the 
     time and in the manner prescribed by the Secretary.
       ``(2) Step-up in basis.--Solely for purposes of determining 
     any tax imposed by reason of subsection (a), property which 
     was held by an individual on the date the individual first 
     became a resident of the United States (within the meaning of 
     section 7701(b)) shall be treated as having a basis on such 
     date of not less than the fair market value of such property 
     on such date. The preceding sentence shall not apply if the 
     individual elects not to have such sentence apply. Such an 
     election, once made, shall be irrevocable.
       ``(3) Coordination with section 684.--If the expatriation 
     of any individual would result in the recognition of gain 
     under section 684, this section shall be applied after the 
     application of section 684.
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Tax on Gifts and Bequests Received by United States 
     Citizens and Residents From Expatriates.--
       (1) In general.--Subtitle B (relating to estate and gift 
     taxes) is amended by inserting after chapter 14 the following 
     new chapter:

           ``CHAPTER 15--GIFTS AND BEQUESTS FROM EXPATRIATES

``Sec. 2801. Imposition of tax.

     ``SEC. 2801. IMPOSITION OF TAX.

       ``(a) In General.--If, during any calendar year, any United 
     States citizen or resident receives any covered gift or 
     bequest, there is hereby imposed a tax equal to the product 
     of--
       ``(1) the highest rate of tax specified in the table 
     contained in section 2001(c) as in effect on the date of such 
     receipt (or, if greater, the highest rate of tax specified in 
     the table applicable under section 2502(a) as in effect on 
     the date), and
       ``(2) the value of such covered gift or bequest.
       ``(b) Tax To Be Paid by Recipient.--The tax imposed by 
     subsection (a) on any covered gift or bequest shall be paid 
     by the person receiving such gift or bequest.
       ``(c) Exception for Certain Gifts.--Subsection (a) shall 
     apply only to the extent that the value of covered gifts and 
     bequests received by any person during the calendar year 
     exceeds $10,000.
       ``(d) Tax Reduced by Foreign Gift or Estate Tax.--The tax 
     imposed by subsection (a) on any covered gift or bequest 
     shall be reduced by the amount of any gift or estate tax paid 
     to a foreign country with respect to such covered gift or 
     bequest.
       ``(e) Covered Gift or Bequest.--
       ``(1) In general.--For purposes of this chapter, the term 
     `covered gift or bequest' means--
       ``(A) any property acquired by gift directly or indirectly 
     from an individual who, at the time of such acquisition, is a 
     covered expatriate, and
       ``(B) any property acquired directly or indirectly by 
     reason of the death of an individual who, immediately before 
     such death, was a covered expatriate.
       ``(2) Exceptions for transfers otherwise subject to estate 
     or gift tax.--Such term shall not include--
       ``(A) any property shown on a timely filed return of tax 
     imposed by chapter 12 which is a taxable gift by the covered 
     expatriate, and
       ``(B) any property included in the gross estate of the 
     covered expatriate for purposes of chapter 11 and shown on a 
     timely filed return of tax imposed by chapter 11 of the 
     estate of the covered expatriate.
       ``(3) Transfers in trust.--
       ``(A) Domestic trusts.--In the case of a covered gift or 
     bequest made to a domestic trust--
       ``(i) subsection (a) shall apply in the same manner as if 
     such trust were a United States citizen, and
       ``(ii) the tax imposed by subsection (a) on such gift or 
     bequest shall be paid by such trust.
       ``(B) Foreign trusts.--
       ``(i) In general.--In the case of a covered gift or bequest 
     made to a foreign trust, subsection (a) shall apply to any 
     distribution attributable to such gift or bequest from such 
     trust (whether from income or corpus) to a United States 
     citizen or resident in the same manner as if such 
     distribution were a covered gift or bequest.
       ``(ii) Deduction for tax paid by recipient.--There shall be 
     allowed as a deduction under section 164 the amount of tax 
     imposed by this section which is paid or accrued by a United 
     States citizen or resident by reason of a distribution from a 
     foreign trust, but only to the extent such tax is imposed on 
     the portion of such distribution which is included in the 
     gross income of such citizen or resident.
       ``(iii) Election to be treated as domestic trust.--Solely 
     for purposes of this section, a foreign trust may elect to be 
     treated as a domestic trust. Such an election may be revoked 
     with the consent of the Secretary.
       ``(f) Covered Expatriate.--For purposes of this section, 
     the term `covered expatriate' has the meaning given to such 
     term by section 877A(g)(1).''.
       (2) Clerical amendment.--The table of chapters for subtitle 
     B is amended by inserting after the item relating to chapter 
     14 the following new item:

         ``Chapter 15. Gifts and Bequests From Expatriates.''.

       (c) Definition of Termination of United States 
     Citizenship.--
       (1) In general.--Section 7701(a) is amended by adding at 
     the end the following new paragraph:
       ``(50) Termination of united states citizenship.--
       ``(A) In general.--An individual shall not cease to be 
     treated as a United States citizen before the date on which 
     the individual's citizenship is treated as relinquished under 
     section 877A(g)(4).
       ``(B) Dual citizens.--Under regulations prescribed by the 
     Secretary, subparagraph (A) shall not apply to an individual 
     who became at birth a citizen of the United States and a 
     citizen of another country.''.
       (2) Conforming amendments.--

[[Page 33992]]

       (A) Paragraph (1) of section 877(e) is amended to read as 
     follows:
       ``(1) In general.--Any long-term resident of the United 
     States who ceases to be a lawful permanent resident of the 
     United States (within the meaning of section 7701(b)(6)) 
     shall be treated for purposes of this section and sections 
     2107, 2501, and 6039G in the same manner as if such resident 
     were a citizen of the United States who lost United States 
     citizenship on the date of such cessation or commencement.''.
       (B) Paragraph (6) of section 7701(b) is amended by adding 
     at the end the following flush sentence:
     ``An individual shall cease to be treated as a lawful 
     permanent resident of the United States if such individual 
     commences to be treated as a resident of a foreign country 
     under the provisions of a tax treaty between the United 
     States and the foreign country, does not waive the benefits 
     of such treaty applicable to residents of the foreign 
     country, and notifies the Secretary of the commencement of 
     such treatment.''.
       (C) Section 7701 is amended by striking subsection (n) and 
     by redesignating subsections (o) and (p) as subsections (n) 
     and (o), respectively.
       (d) Information Returns.--Section 6039G is amended--
       (1) by inserting ``or 877A'' after ``section 877(b)'' in 
     subsection (a), and
       (2) by inserting ``or 877A'' after ``section 877(a)'' in 
     subsection (d).
       (e) Clerical Amendment.--The table of sections for subpart 
     A of part II of subchapter N of chapter 1 is amended by 
     inserting after the item relating to section 877 the 
     following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.
       (f) Effective Date.--
       (1) In general.--Except as provided in this subsection, the 
     amendments made by this section shall apply to expatriates 
     (as defined in section 877A(g) of the Internal Revenue Code 
     of 1986, as added by this section) whose expatriation date 
     (as so defined) is on or after the date of the enactment of 
     this Act.
       (2) Gifts and bequests.--Chapter 15 of the Internal Revenue 
     Code of 1986 (as added by subsection (b)) shall apply to 
     covered gifts and bequests (as defined in section 2801 of 
     such Code, as so added) received on or after the date of the 
     enactment of this Act from transferors whose expatriation 
     date is on or after such date of enactment.

     SEC. 302. SPECIAL ENROLLMENT OPTION BY EMPLOYER HEALTH PLANS 
                   FOR MEMBERS OF UNIFORM SERVICES WHO LOSE HEALTH 
                   CARE COVERAGE.

       (a) In General.--Section 9801(f) (relating to special 
     enrollment periods) is amended by adding at the end the 
     following new paragraph:
       ``(3) Loss of military health coverage.--
       ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
     a group health plan shall permit an employee who is eligible, 
     but not enrolled, for coverage under the terms of the plan 
     (or a dependent of such an employee if the dependent is 
     eligible, but not enrolled, for coverage under such terms) to 
     enroll for coverage under the terms of the plan if each of 
     the following conditions is met:
       ``(i) The employee or dependent, by reason of service in 
     the uniformed services (within the meaning of section 4303 of 
     title 38, United States Code), was covered under a Federal 
     health care benefit program (including coverage under the 
     TRICARE program (as that term is defined in section 1072 of 
     title 10, United States Code) or by reason of entitlement to 
     health care benefits under the laws administered by the 
     Secretary of Veterans Affairs or as a member of the uniformed 
     services on active duty), and the employee or dependent loses 
     eligibility for such coverage.
       ``(ii) The employee or dependent is otherwise eligible to 
     enroll for coverage under the terms of the plan.
       ``(iii) The employee requests such coverage not later than 
     90 days after the date on which the coverage described in 
     clause (i) terminated.
       ``(B) Effective date of coverage.--Coverage requested under 
     subparagraph (A)(iii) shall become effective not later than 
     the first day of the first month after the date of such 
     request.''.
       (b) Employee Retirement Income Security Act of 1974.--
     Section 701(f) of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1181(f)) is amended by adding at the end 
     the following:
       ``(3) Loss of military health coverage.--
       ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
     a group health plan, and a health insurance issuer offering 
     group health insurance coverage in connection with a group 
     health plan, shall permit an employee who is eligible, but 
     not enrolled, for coverage under the terms of the plan (or a 
     dependent of such an employee if the dependent is eligible, 
     but not enrolled, for coverage under such terms) to enroll 
     for coverage under the terms of the plan if each of the 
     following conditions is met:
       ``(i) The employee or dependent, by reason of service in 
     the uniformed services (within the meaning of section 4303 of 
     title 38, United States Code), was covered under a Federal 
     health care benefit program (including coverage under the 
     TRICARE program (as that term is defined in section 1072 of 
     title 10, United States Code) or by reason of entitlement to 
     health care benefits under the laws administered by the 
     Secretary of Veterans Affairs or as a member of the uniformed 
     services on active duty), and the employee or dependent loses 
     eligibility for such coverage.
       ``(ii) The employee or dependent is otherwise eligible to 
     enroll for coverage under the terms of the plan.
       ``(iii) The employee requests such coverage not later than 
     90 days after the date on which the coverage described in 
     clause (i) terminated.
       ``(B) Effective date of coverage.--Coverage requested under 
     subparagraph (A)(iii) shall become effective not later than 
     the first day of the first month after the date of such 
     request.''.
       (c) Public Health Service Act.--Section 2701(f) of the 
     Public Health Service Act (42 U.S.C. 300gg(f)) is amended by 
     adding at the end the following:
       ``(3) Loss of military health coverage.--
       ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
     a group health plan, and a health insurance issuer offering 
     group health insurance coverage in connection with a group 
     health plan, shall permit an employee who is eligible, but 
     not enrolled, for coverage under the terms of the plan (or a 
     dependent of such an employee if the dependent is eligible, 
     but not enrolled, for coverage under such terms) to enroll 
     for coverage under the terms of the plan if each of the 
     following conditions is met:
       ``(i) The employee or dependent, by reason of service in 
     the uniformed services (within the meaning of section 4303 of 
     title 38, United States Code), was covered under a Federal 
     health care benefit program (including coverage under the 
     TRICARE program (as that term is defined in section 1072 of 
     title 10, United States Code) or by reason of entitlement to 
     health care benefits under the laws administered by the 
     Secretary of Veterans Affairs or as a member of the uniformed 
     services on active duty), and the employee or dependent loses 
     eligibility for such coverage.
       ``(ii) The employee or dependent is otherwise eligible to 
     enroll for coverage under the terms of the plan.
       ``(iii) The employee requests such coverage not later than 
     90 days after the date on which the coverage described in 
     clause (i) terminated.
       ``(B) Effective date of coverage.--Coverage requested under 
     subparagraph (A)(iii) shall become effective not later than 
     the first day of the first month after the date of such 
     request.''.
       (d) Regulations.--The Secretary of the Treasury, the 
     Secretary of Labor, and the Secretary of Health and Human 
     Services, consistent with section 104 of the Health Insurance 
     Portability and Accountability Act of 1996 (42 U.S.C. 300gg-
     92 note), may promulgate such regulations as may be necessary 
     or appropriate to require the notification of individuals (or 
     their dependents) of their rights under the amendment made by 
     this Act.
       (e) Effective Date.--The amendments made by this section 
     shall take effect 90 days after the date of the enactment of 
     this Act.

     SEC. 303. INCREASE IN MINIMUM PENALTY ON FAILURE TO FILE A 
                   RETURN OF TAX.

       (a) In General.--Subsection (a) of section 6651 is amended 
     by striking ``$100'' in the last sentence and inserting 
     ``$225''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to returns the due date for the filing of which 
     (including extensions) is after December 31, 2007.
                                 ______
                                 
  SA 3848. Mr. HARKIN (for Mr. Baucus) proposed an amendment to the 
bill H.R. 3997, to amend the Internal Revenue Code of 1986 to provide 
tax relief and protections for military personnel, and for other 
purposes; as follows:

       Amend the title so as to read: ``An Act to amend the 
     Internal Revenue Code of 1986 to provide tax relief and 
     protections for military personnel, and for other 
     purposes.''.

                          ____________________