[House Report 110-474]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-474
=====================================================================
 
 PROVIDING FOR THE CONSIDERATION OF THE SENATE AMENDMENTS TO THE BILL 
(H.R. 6) TO REDUCE OUR NATION'S DEPENDENCY ON FOREIGN OIL BY INVESTING 
 IN CLEAN, RENEWABLE, AND ALTERNATIVE ENERGY RESOURCES, PROMOTING NEW 
   EMERGING ENERGY TECHNOLOGIES, DEVELOPING GREATER EFFICIENCY, AND 
CREATING A STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE TO INVEST 
             IN ALTERNATIVE ENERGY, AND FOR OTHER PURPOSES

                                _______
                                

  December 5, 2007.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

    Mr. Welch, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 846]

    The Committee on Rules, having had under consideration 
House Resolution 846, by a record vote 9-3, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of the Senate 
amendments to H.R. 6, to reduce our Nation's dependency on 
foreign oil by investing in clean, renewable, and alternative 
energy resources, promoting new emerging energy technologies, 
developing greater efficiency, and creating a Strategic Energy 
Efficiency and Renewables Reserve to invest in alternative 
energy, and for other purposes. The resolution makes in order a 
motion by the Majority Leader to concur in the Senate 
amendments with the House amendments printed in this report. 
The resolution waives all points of order against the motion 
except clause 10 of rule XXI. The resolution provides that the 
Senate amendments and the motion shall be considered as read. 
The resolution provides one hour of debate on the motion 
equally divided and controlled by the Majority Leader and the 
Minority Leader. The resolution further provides that the Chair 
may postpone further consideration of the motion to a time 
designated by the Speaker.

                         EXPLANATION OF WAIVERS

    Although the rule waives all points of order against 
consideration of the motion (except for clause 10 of rule XXI) 
the Committee is not aware of any points of order against the 
motion. The waiver of all points of order against the motion is 
prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 402

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To grant an open rule.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 403

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Shimkus (IL), #8, to amend 
Section 211 of the Clean Air Act to create a limited 
alternative fuel program that includes renewable fuel, coal-
derived fuel blended with renewable sources, fuel derived from 
biologic materials, electricity derived from renewable 
resources, and any other fuel that the Administrator determines 
is derived by renewable resources, not derived from crude oil, 
and would yield security or environmental benefits.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 404

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Sullivan (OK), #7, to strike 
title II, subtitle A of the bill.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 405

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Upton (MI), #4, to strike 
Title XIV, the Renewable Electricity Standard.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 406

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. McCrery (LA), #2, to strike 
the revenue raising provisions.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 407

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. McCrery (LA), #1, to insert 
AMT relief identical to what the House passed in H.R. 3996.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 408

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To allow any motion to strike any 
provision of the amendment which qualifies as an earmark 
pursuant to the definition of an earmark in clause 9 of rule 
XXI.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 409

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Shuster (PA), #5, to allow a 
one year tax credit for $500 ($1000 for a joint return) for 
those earning 200% (or less) of the poverty line whose primary 
source of heating energy is home heating oil.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 410

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Buyer (IN), #3, to strike the 
language contained in Section 413, ``Energy code improvements 
applicable to manufactured housing.''
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 411

    Date: December 5, 2007.
    Measure: Senate amendments to H.R. 6.
    Motion by: Mr. McGovern.
    Summary of motion: To report the rule.
    Results: Adopted 9-3.
    Vote by Members: McGovern--Yea; Hastings (FL)--Yea; 
Matsui--Yea; Cardoza--Yea; Welch--Yea; Castor--Yea; Arcuri--
Yea; Sutton--Yea; Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Slaughter--Yea.

   SUMMARY OF THE HOUSE AMENDMENTS TO THE SENATE AMENDMENTS TO H.R. 6

    Increases the fuel efficiency of vehicles to 35 miles per 
gallon by 2020. Allows automakers to calculate the mileage 
based on vehicle attributes and to distinguish between cars and 
trucks. It requires manufacturers to achieve a fleet wide 
average of 35 miles per gallon in 2020. The bill includes 
incentives for the big American manufacturers to build small 
cars in the U.S. It extends flex fuel vehicle credits for 
automakers who produce vehicles that can run on E-85 through 
2019.
    Amends the current Renewable Fuel Standard in the Clean Air 
Act to require the production and use of at least 36 billion 
gallons of renewable fuel in this country by 2022, capping corn 
ethanol at 15 billion gallons. This would represent more than 
25% of the gasoline that we use in this country today. It also 
requires that an increasing portion of renewable fuels must be 
advanced biofuels until we reach 21 billion gallons in 2022. A 
portion of the advanced biofuel mandate qualifies as cellulosic 
biofuel that derives from a cellulosic feedstock. The bill also 
requires the production and use of one billion gallons of 
biodiesel in this country by 2012.
    Requires that 15 percent of our electricity come from 
renewable sources (Renewable Electricity Standard). The measure 
exempts municipal and other publicly-owned power plants, 
federal agencies and rural electric coops and small private 
utilities, and it permits utilities to use energy efficiency 
savings to meet up to 4 percent of the targeted 15 percent and 
to give utilities more time to ramp-up renewable energy sales.
    Includes new energy efficiency standards for a wide range 
of products, appliances, lighting and buildings.
    Includes tax incentives for renewable energy, including 
solar, wind, biomass, geothermal technologies, clean coal, as 
well as biodiesel and cellulosic ethanol. Also establishes a 
new tax credit for plug-in and electric vehicles, and extends 
energy efficiency tax credit for homes, commercial buildings, 
and appliances.
    Authorizes $2 billion of new clean renewable energy bonds 
to finance facilities that generate electricity from wind, 
closed- and open-loop biomass, geothermal, small irrigation, 
hydropower, landfill gas, marine renewable, and trash 
combustion facilities. The bond authority is divided between 
qualifying projects of state/local/tribal governments, public 
power providers, and electric cooperatives.
    Creates a new category of tax credit bonds for State and 
local governments to promote green community programs and 
initiatives designed to reduce greenhouse gas emissions.
    Promotes fiscal responsibility by fully paying for the 
$21.5 billion bill with repeal of $13 billion in tax giveaways 
for oil and gas companies, which were enacted during a time of 
record profits, and with other revenue raisers from the 
President's budget.
    The bill includes energy research provisions in solar, 
geothermal and marine renewable energy.
    Authorizes a nationwide assessment of geological formations 
capable of sequestering carbon dioxide underground. Includes 
research and development in carbon sequestration, including 
large-volume sequestration tests in a variety of different 
geological formations.
    The bill directs the federal government to promote U.S. 
energy exports of clean, efficient technologies to India and 
China and other developing countries.
    Creates an Energy Efficiency and Renewable Energy Worker 
Training Program to train a quality workforce for ``green'' 
collar jobs--such as solar panel manufacturer and green 
building construction worker--created by federal renewable 
energy and energy efficiency initiatives.
    The bill increases loan limits to help small businesses 
develop energy efficient technologies and purchases and 
provides information to small businesses to reduce energy 
costs.
    Increases the federal share for CMAQ, promotes short-sea 
shipping, and includes capital grants for railroads.

    TEXT OF THE HOUSE AMENDMENTS TO THE SENATE AMENDMENTS TO H.R. 6

    In lieu of the matter proposed to be inserted for the text 
of the bill, H.R. 6, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

     TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

     Subtitle A--Increased Corporate Average Fuel Economy Standards

Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain 
          other vehicles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-
          duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling 
          procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.

                 Subtitle B--Improved Vehicle Technology

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

                   Subtitle C--Federal Vehicle Fleets

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

   TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

                   Subtitle A--Renewable Fuel Standard

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

              Subtitle B--Biofuels Research and Development

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

                   Subtitle C--Biofuels Infrastructure

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

                  Subtitle D--Environmental Safeguards

Sec. 251. Waiver for fuel or fuel additives.

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

                 Subtitle A--Appliance Energy Efficiency

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

                 Subtitle B--Lighting Energy Efficiency

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

           TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

Sec. 401. Definitions.

               Subtitle A--Residential Building Efficiency

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

            Subtitle B--High-Performance Commercial Buildings

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

             Subtitle C--High-Performance Federal Buildings

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

                Subtitle D--Industrial Energy Efficiency

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

              Subtitle E--Healthy High-Performance Schools

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

                   Subtitle F--Institutional Entities

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

                 Subtitle G--Public and Assisted Housing

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

                     Subtitle H--General Provisions

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

      TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

                Subtitle A--United States Capitol Complex

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

           Subtitle B--Energy Savings Performance Contracting

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

            Subtitle C--Energy Efficiency in Federal Agencies

Sec. 521. Installation of photovoltaic system at Department of Energy 
          headquarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.

          Subtitle D--Energy Efficiency of Public Institutions

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

       Subtitle E--Energy Efficiency and Conservation Block Grants

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

             TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

                        Subtitle A--Solar Energy

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

                      Subtitle B--Geothermal Energy

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

    Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies

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

    Subtitle D--Energy Storage for Transportation and Electric Power

Sec. 641. Energy storage competitiveness.

                  Subtitle E--Miscellaneous Provisions

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

               TITLE VII--CARBON CAPTURE AND SEQUESTRATION

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

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

  Subtitle B--Carbon Capture and Sequestration Assessment and Framework

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

            TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

                   Subtitle A--Management Improvements

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

  Subtitle B--Prohibitions on Market Manipulation and False Information

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

                 TITLE IX--INTERNATIONAL ENERGY PROGRAMS

Sec. 901. Definitions.

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

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

            Subtitle B--International Clean Energy Foundation

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

                  Subtitle C--Miscellaneous Provisions

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

                           TITLE X--GREEN JOBS

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

           TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

                Subtitle A--Department of Transportation

Sec. 1101. Office of Climate Change and Environment.

                          Subtitle B--Railroads

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

                    Subtitle C--Marine Transportation

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

                          Subtitle D--Highways

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

                TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

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

                         TITLE XIII--SMART GRID

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

                TITLE XIV--RENEWABLE ELECTRICITY STANDARD

Sec. 1401. Renewable electricity standard.

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

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

        Subtitle A--Clean Renewable Energy Production Incentives

             PART I--Provisions Relating to Renewable Energy

Sec. 1501. Extension and modification of renewable energy credit.
Sec. 1502. Production credit for electricity produced from marine 
          renewables.
Sec. 1503. Extension and modification of energy credit.
Sec. 1504. Extension and modification of credit for residential energy 
          efficient property.
Sec. 1505. Extension and modification of special rule to implement FERC 
          and State electric restructuring policy.
Sec. 1506. New clean renewable energy bonds.

       PART II--Provisions Relating to Carbon Mitigation and Coal

Sec. 1507. Expansion and modification of advanced coal project 
          investment credit.
Sec. 1508. Expansion and modification of coal gasification investment 
          credit.
Sec. 1509. Seven-year applicable recovery period for depreciation of 
          qualified carbon dioxide pipeline property.
Sec. 1510. Special rules for refund of the coal excise tax to certain 
          coal producers and exporters.
Sec. 1511. Extension of temporary increase in coal excise tax.
Sec. 1512. Carbon audit of the tax code.

          Subtitle B--Transportation and Domestic Fuel Security

                            PART I--Biofuels

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

               PART II--Advanced Technology Motor Vehicles

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

                PART III--Other Transportation Provisions

Sec. 1530. Restructuring of New York Liberty Zone tax credits.
Sec. 1531. Extension of transportation fringe benefit to bicycle 
          commuters.

             Subtitle C--Energy Conservation and Efficiency

                  PART I--Conservation Tax Credit Bonds

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

                           PART II--Efficiency

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

                      Subtitle D--Other Provisions

                       PART I--Forestry Provisions

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

                          PART II--Exxon Valdez

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

                     Subtitle E--Revenue Provisions

Sec. 1561. Limitation of deduction for income attributable to domestic 
          production of oil, gas, or a primary products thereof .
Sec. 1562. Elimination of the different treatment of foreign oil and gas 
          extraction income and foreign oil related income for purposes 
          of the foreign tax credit.
Sec. 1563. 7-year amortization of geological and geophysical 
          expenditures for certain major integrated oil companies.
Sec. 1564. Broker reporting of customer's basis in securities 
          transactions.
Sec. 1565. Extension of additional 0.2 percent FUTA surtax.
Sec. 1566. Termination of treatment of natural gas distribution lines as 
          15-year property.
Sec. 1567. Time for payment of corporate estimated taxes.
Sec. 1568. Modification of penalty for failure to file partnership 
          returns.

                    Subtitle F--Secure Rural Schools

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

SEC. 2. DEFINITIONS.

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

SEC. 3. RELATIONSHIP TO OTHER LAW.

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

     TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY


     Subtitle A--Increased Corporate Average Fuel Economy Standards


SEC. 101. SHORT TITLE.

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

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

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

SEC. 103. DEFINITIONS.

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

SEC. 104. CREDIT TRADING PROGRAM.

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

SEC. 105. CONSUMER INFORMATION.

  Section 32908 of title 49, United States Code, is amended by 
adding at the end the following:
  ``(g) Consumer Information.--
          ``(1) Program.--The Secretary of Transportation, in 
        consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, 
        shall develop and implement by rule a program to 
        require manufacturers--
                  ``(A) to label new automobiles sold in the 
                United States with--
                          ``(i) information reflecting an 
                        automobile's performance on the basis 
                        of criteria that the Administrator 
                        shall develop, not later than 18 months 
                        after the date of the enactment of the 
                        Ten-in-Ten Fuel Economy Act, to reflect 
                        fuel economy and greenhouse gas and 
                        other emissions over the useful life of 
                        the automobile;
                          ``(ii) a rating system that would 
                        make it easy for consumers to compare 
                        the fuel economy and greenhouse gas and 
                        other emissions of automobiles at the 
                        point of purchase, including a 
                        designation of automobiles--
                                  ``(I) with the lowest 
                                greenhouse gas emissions over 
                                the useful life of the 
                                vehicles; and
                                  ``(II) the highest fuel 
                                economy; and
                          ``(iii) a permanent and prominent 
                        display that an automobile is capable 
                        of operating on an alternative fuel; 
                        and
                  ``(B) to include in the owner's manual for 
                vehicles capable of operating on alternative 
                fuels information that describes that 
                capability and the benefits of using 
                alternative fuels, including the renewable 
                nature and environmental benefits of using 
                alternative fuels.
          ``(2) Consumer education.--
                  ``(A) In general.--The Secretary of 
                Transportation, in consultation with the 
                Secretary of Energy and the Administrator of 
                the Environmental Protection Agency, shall 
                develop and implement by rule a consumer 
                education program to improve consumer 
                understanding of automobile performance 
                described in paragraph (1)(A)(i) and to inform 
                consumers of the benefits of using alternative 
                fuel in automobiles and the location of 
                stations with alternative fuel capacity.
                  ``(B) Fuel savings education campaign.--The 
                Secretary of Transportation shall establish a 
                consumer education campaign on the fuel savings 
                that would be recognized from the purchase of 
                vehicles equipped with thermal management 
                technologies, including energy efficient air 
                conditioning systems and glass.
          ``(3) Fuel tank labels for alternative fuel 
        automobiles.--The Secretary of Transportation shall by 
        rule require a label to be attached to the fuel 
        compartment of vehicles capable of operating on 
        alternative fuels, with the form of alternative fuel 
        stated on the label. A label attached in compliance 
        with the requirements of section 32905(h) is deemed to 
        meet the requirements of this paragraph.
          ``(4) Rulemaking deadline.--The Secretary of 
        Transportation shall issue a final rule under this 
        subsection not later than 42 months after the date of 
        the enactment of the Ten-in-Ten Fuel Economy Act.''.

SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.

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

SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.

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

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

  (a) In General.--As soon as practicable after the date of 
enactment of this Act, the Secretary of Transportation shall 
execute an agreement with the National Academy of Sciences to 
develop a report evaluating medium-duty and heavy-duty truck 
fuel economy standards, including--
          (1) an assessment of technologies and costs to 
        evaluate fuel economy for medium-duty and heavy-duty 
        trucks;
          (2) an analysis of existing and potential 
        technologies that may be used practically to improve 
        medium-duty and heavy-duty truck fuel economy;
          (3) an analysis of how such technologies may be 
        practically integrated into the medium-duty and heavy-
        duty truck manufacturing process;
          (4) an assessment of how such technologies may be 
        used to meet fuel economy standards to be prescribed 
        under section 32902(l) of title 49, United States Code, 
        as amended by this subtitle; and
          (5) associated costs and other impacts on the 
        operation of medium-duty and heavy-duty trucks, 
        including congestion.
  (b) Report.--The Academy shall submit the report to the 
Secretary, the Committee on Commerce, Science, and 
Transportation of the Senate, and the Committee on Energy and 
Commerce of the House of Representatives, with its findings and 
recommendations not later than 1 year after the date on which 
the Secretary executes the agreement with the Academy.

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

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

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

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

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

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

SEC. 111. CONSUMER TIRE INFORMATION.

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

``Sec. 32304A. Consumer tire information

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

``32304A. Consumer tire information''.

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

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

SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.

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

                Subtitle B--Improved Vehicle Technology


SEC. 131. TRANSPORTATION ELECTRIFICATION.

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

SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

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

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

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

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

  Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 
13258) is amended--
          (1) by redesignating subsections (a) through (d) as 
        subsections (b) through (e), respectively;
          (2) by inserting before subsection (b) the following:
  ``(a) Definitions.--In this section:
          ``(1) Fuel cell electric vehicle.--The term `fuel 
        cell electric vehicle' means an on-road or nonroad 
        vehicle that uses a fuel cell (as defined in section 
        803 of the Spark M. Matsunaga Hydrogen Act of 2005 (42 
        U.S.C. 16152)).
          ``(2) Hybrid electric vehicle.--The term `hybrid 
        electric vehicle' means a new qualified hybrid motor 
        vehicle (as defined in section 30B(d)(3) of the 
        Internal Revenue Code of 1986).
          ``(3) Medium- or heavy-duty electric vehicle.--The 
        term `medium- or heavy-duty electric vehicle' means an 
        electric, hybrid electric, or plug-in hybrid electric 
        vehicle with a gross vehicle weight of more than 8,501 
        pounds.
          ``(4) Neighborhood electric vehicle.--The term 
        `neighborhood electric vehicle' means a 4-wheeled on-
        road or nonroad vehicle that--
                  ``(A) has a top attainable speed in 1 mile of 
                more than 20 mph and not more than 25 mph on a 
                paved level surface; and
                  ``(B) is propelled by an electric motor and 
                on-board, rechargeable energy storage system 
                that is rechargeable using an off-board source 
                of electricity.
          ``(5) Plug-in electric drive vehicle.--The term 
        `plug-in electric drive vehicle' means a vehicle that--
                  ``(A) draws motive power from a battery with 
                a capacity of at least 4 kilowatt-hours;
                  ``(B) can be recharged from an external 
                source of electricity for motive power; and
                  ``(C) is a light-, medium-, or heavy duty 
                motor vehicle or nonroad vehicle (as those 
                terms are defined in section 216 of the Clean 
                Air Act (42 U.S.C. 7550).'';
          (3) in subsection (b) (as redesignated by paragraph 
        (1))--
                  (A) by striking ``The Secretary'' and 
                inserting the following:
          ``(1) Allocation.--The Secretary''; and
                  (B) by adding at the end the following:
          ``(2) Electric vehicles.--Not later than January 31, 
        2009, the Secretary shall--
                  ``(A) allocate credit in an amount to be 
                determined by the Secretary for--
                          ``(i) acquisition of--
                                  ``(I) a hybrid electric 
                                vehicle;
                                  ``(II) a plug-in electric 
                                drive vehicle;
                                  ``(III) a fuel cell electric 
                                vehicle;
                                  ``(IV) a neighborhood 
                                electric vehicle; or
                                  ``(V) a medium- or heavy-duty 
                                electric vehicle; and
                          ``(ii) investment in qualified 
                        alternative fuel infrastructure or 
                        nonroad equipment, as determined by the 
                        Secretary; and
                  ``(B) allocate more than 1, but not to exceed 
                5, credits for investment in an emerging 
                technology relating to any vehicle described in 
                subparagraph (A) to encourage--
                          ``(i) a reduction in petroleum 
                        demand;
                          ``(ii) technological advancement; and
                          ``(iii) a reduction in vehicle 
                        emissions.'';
          (4) in subsection (c) (as redesignated by paragraph 
        (1)), by striking ``subsection (a)'' and inserting 
        ``subsection (b)''; and
          (5) by adding at the end the following:
  ``(f) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2013.''.

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

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

SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.

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

SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.

  (a) Definitions.--In this section:
          (1) Advanced technology vehicle.--The term ``advanced 
        technology vehicle'' means a light duty vehicle that 
        meets--
                  (A) the Bin 5 Tier II emission standard 
                established in regulations issued by the 
                Administrator of the Environmental Protection 
                Agency under section 202(i) of the Clean Air 
                Act (42 U.S.C. 7521(i)), or a lower-numbered 
                Bin emission standard;
                  (B) any new emission standard in effect for 
                fine particulate matter prescribed by the 
                Administrator under that Act (42 U.S.C. 7401 et 
                seq.); and
                  (C) at least 125 percent of the average base 
                year combined fuel economy for vehicles with 
                substantially similar attributes.
          (2) Combined fuel economy.--The term ``combined fuel 
        economy'' means--
                  (A) the combined city/highway miles per 
                gallon values, as reported in accordance with 
                section 32904 of title 49, United States Code; 
                and
                  (B) in the case of an electric drive vehicle 
                with the ability to recharge from an off-board 
                source, the reported mileage, as determined in 
                a manner consistent with the Society of 
                Automotive Engineers recommended practice for 
                that configuration or a similar practice 
                recommended by the Secretary.
          (3) Engineering integration costs.--The term 
        ``engineering integration costs'' includes the cost of 
        engineering tasks relating to--
                  (A) incorporating qualifying components into 
                the design of advanced technology vehicles; and
                  (B) designing tooling and equipment and 
                developing manufacturing processes and material 
                suppliers for production facilities that 
                produce qualifying components or advanced 
                technology vehicles.
          (4) Qualifying components.--The term ``qualifying 
        components'' means components that the Secretary 
        determines to be--
                  (A) designed for advanced technology 
                vehicles; and
                  (B) installed for the purpose of meeting the 
                performance requirements of advanced technology 
                vehicles.
  (b) Advanced Vehicles Manufacturing Facility.--The Secretary 
shall provide facility funding awards under this section to 
automobile manufacturers and component suppliers to pay not 
more than 30 percent of the cost of--
          (1) reequipping, expanding, or establishing a 
        manufacturing facility in the United States to 
        produce--
                  (A) qualifying advanced technology vehicles; 
                or
                  (B) qualifying components; and
          (2) engineering integration performed in the United 
        States of qualifying vehicles and qualifying 
        components.
  (c) Period of Availability.--An award under subsection (b) 
shall apply to--
          (1) facilities and equipment placed in service before 
        December 30, 2020; and
          (2) engineering integration costs incurred during the 
        period beginning on the date of enactment of this Act 
        and ending on December 30, 2020.
  (d) Direct Loan Program.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of this Act, and subject to the 
        availability of appropriated funds, the Secretary shall 
        carry out a program to provide a total of not more than 
        $25,000,000,000 in loans to eligible individuals and 
        entities (as determined by the Secretary) for the costs 
        of activities described in subsection (b).
          (2) Application.--An applicant for a loan under this 
        subsection shall submit to the Secretary an application 
        at such time, in such manner, and containing such 
        information as the Secretary may require, including a 
        written assurance that--
                  (A) all laborers and mechanics employed by 
                contractors or subcontractors during 
                construction, alteration, or repair that is 
                financed, in whole or in part, by a loan under 
                this section shall be paid wages at rates not 
                less than those prevailing on similar 
                construction in the locality, as determined by 
                the Secretary of Labor in accordance with 
                sections 3141-3144, 3146, and 3147 of title 40, 
                United States Code; and
                  (B) the Secretary of Labor shall, with 
                respect to the labor standards described in 
                this paragraph, have the authority and 
                functions set forth in Reorganization Plan 
                Numbered 14 of 1950 (5 U.S.C. App.) and section 
                3145 of title 40, United States Code.
          (3) Selection of eligible projects.--The Secretary 
        shall select eligible projects to receive loans under 
        this subsection in cases in which, as determined by the 
        Secretary, the award recipient--
                  (A) is financially viable without the receipt 
                of additional Federal funding associated with 
                the proposed project;
                  (B) will provide sufficient information to 
                the Secretary for the Secretary to ensure that 
                the qualified investment is expended 
                efficiently and effectively; and
                  (C) has met such other criteria as may be 
                established and published by the Secretary.
          (4) Rates, terms, and repayment of loans.--A loan 
        provided under this subsection--
                  (A) shall have an interest rate that, as of 
                the date on which the loan is made, is equal to 
                the cost of funds to the Department of the 
                Treasury for obligations of comparable 
                maturity;
                  (B) shall have a term equal to the lesser 
                of--
                          (i) the projected life, in years, of 
                        the eligible project to be carried out 
                        using funds from the loan, as 
                        determined by the Secretary; and
                          (ii) 25 years;
                  (C) may be subject to a deferral in repayment 
                for not more than 5 years after the date on 
                which the eligible project carried out using 
                funds from the loan first begins operations, as 
                determined by the Secretary; and
                  (D) shall be made by the Federal Financing 
                Bank.
  (e) Improvement.--The Secretary shall issue regulations that 
require that, in order for an automobile manufacturer to be 
eligible for an award or loan under this section during a 
particular year, the adjusted average fuel economy of the 
manufacturer for light duty vehicles produced by the 
manufacturer during the most recent year for which data are 
available shall be not less than the average fuel economy for 
all light duty vehicles of the manufacturer for model year 
2005. In order to determine fuel economy baselines for 
eligibility of a new manufacturer or a manufacturer that has 
not produced previously produced equivalent vehicles, the 
Secretary may substitute industry averages.
  (f) Fees.--Administrative costs shall be no more than 
$100,000 or 10 basis point of the loan.
  (g) Priority.--The Secretary shall, in making awards or loans 
to those manufacturers that have existing facilities, give 
priority to those facilities that are oldest or have been in 
existence for at least 20 years. Such facilities can currently 
be sitting idle.
  (h) Set Aside for Small Automobile Manufacturers and 
Component Suppliers.--
          (1) Definition of covered firm.--In this subsection, 
        the term ``covered firm'' means a firm that--
                  (A) employs less than 500 individuals; and
                  (B) manufactures automobiles or components of 
                automobiles.
          (2) Set aside.--Of the amount of funds that are used 
        to provide awards for each fiscal year under subsection 
        (b), the Secretary shall use not less than 10 percent 
        to provide awards to covered firms or consortia led by 
        a covered firm.
  (i) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012.

                   Subtitle C--Federal Vehicle Fleets


SEC. 141. FEDERAL VEHICLE FLEETS.

  Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 
13212) is amended--
          (1) by redesignating subsection (f) as subsection 
        (g); and
          (2) by inserting after subsection (e) the following 
        new subsection:
  ``(f) Vehicle Emission Requirements.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Federal agency.--The term `Federal 
                agency' does not include any office of the 
                legislative branch, except that it does include 
                the House of Representatives with respect to an 
                acquisition described in paragraph (2)(C).
                  ``(B) Medium duty passenger vehicle.--The 
                term `medium duty passenger vehicle' has the 
                meaning given that term section 523.2 of title 
                49 of the Code of Federal Regulations, as in 
                effect on the date of enactment of this 
                paragraph.
                  ``(C) Member's representational allowance.--
                The term `Member's Representational Allowance' 
                means the allowance described in section 101(a) 
                of the House of Representatives Administrative 
                Reform Technical Corrections Act (2 U.S.C. 
                57b(a)).
          ``(2) Prohibition.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), no Federal agency shall 
                acquire a light duty motor vehicle or medium 
                duty passenger vehicle that is not a low 
                greenhouse gas emitting vehicle.
                  ``(B) Exception.--The prohibition in 
                subparagraph (A) shall not apply to acquisition 
                of a vehicle if the head of the agency 
                certifies in writing, in a separate 
                certification for each individual vehicle 
                purchased, either--
                          ``(i) that no low greenhouse gas 
                        emitting vehicle is available to meet 
                        the functional needs of the agency and 
                        details in writing the functional needs 
                        that could not be met with a low 
                        greenhouse gas emitting vehicle; or
                          ``(ii) that the agency has taken 
                        specific alternative more cost-
                        effective measures to reduce petroleum 
                        consumption that--
                                  ``(I) have reduced a measured 
                                and verified quantity of 
                                greenhouse gas emissions equal 
                                to or greater than the quantity 
                                of greenhouse gas reductions 
                                that would have been achieved 
                                through acquisition of a low 
                                greenhouse gas emitting vehicle 
                                over the lifetime of the 
                                vehicle; or
                                  ``(II) will reduce each year 
                                a measured and verified 
                                quantity of greenhouse gas 
                                emissions equal to or greater 
                                than the quantity of greenhouse 
                                gas reductions that would have 
                                been achieved each year through 
                                acquisition of a low greenhouse 
                                gas emitting vehicle.
                  ``(C) Special rule for vehicles provided by 
                funds contained in members' representational 
                allowance.--This paragraph shall apply to the 
                acquisition of a light duty motor vehicle or 
                medium duty passenger vehicle using any portion 
                of a Member's Representational Allowance, 
                including an acquisition under a long-term 
                lease.
          ``(3) Guidance.--
                  ``(A) In general.--Each year, the 
                Administrator of the Environmental Protection 
                Agency shall issue guidance identifying the 
                makes and model numbers of vehicles that are 
                low greenhouse gas emitting vehicles.
                  ``(B) Consideration.--In identifying vehicles 
                under subparagraph (A), the Administrator shall 
                take into account the most stringent standards 
                for vehicle greenhouse gas emissions applicable 
                to and enforceable against motor vehicle 
                manufacturers for vehicles sold anywhere in the 
                United States.
                  ``(C) Requirement.--The Administrator shall 
                not identify any vehicle as a low greenhouse 
                gas emitting vehicle if the vehicle emits 
                greenhouse gases at a higher rate than such 
                standards allow for the manufacturer's fleet 
                average grams per mile of carbon dioxide-
                equivalent emissions for that class of vehicle, 
                taking into account any emissions allowances 
                and adjustment factors such standards 
                provide.''.

SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.

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

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

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

   TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS


                  Subtitle A--Renewable Fuel Standard


SEC. 201. DEFINITIONS.

  Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is 
amended to read as follows:
          ``(1) Definitions.--In this section:
                  ``(A) Additional renewable fuel.--The term 
                `additional renewable fuel' means fuel that is 
                produced from renewable biomass and that is 
                used to replace or reduce the quantity of 
                fossil fuel present in home heating oil or jet 
                fuel.
                  ``(B) Advanced biofuel.--
                          ``(i) In general.--The term `advanced 
                        biofuel' means renewable fuel, other 
                        than ethanol derived from corn starch, 
                        that has lifecycle greenhouse gas 
                        emissions, as determined by the 
                        Administrator, after notice and 
                        opportunity for comment, that are at 
                        least 50 percent less than baseline 
                        lifecycle greenhouse gas emissions.
                          ``(ii) Inclusions.--The types of 
                        fuels eligible for consideration as 
                        `advanced biofuel' may include any of 
                        the following:
                                  ``(I) Ethanol derived from 
                                cellulose, hemicellulose, or 
                                lignin.
                                  ``(II) Ethanol derived from 
                                sugar or starch (other than 
                                corn starch).
                                  ``(III) Ethanol derived from 
                                waste material, including crop 
                                residue, other vegetative waste 
                                material, animal waste, and 
                                food waste and yard waste.
                                  ``(IV) Biomass-based diesel.
                                  ``(V) Biogas (including 
                                landfill gas and sewage waste 
                                treatment gas) produced through 
                                the conversion of organic 
                                matter from renewable biomass.
                                  ``(VI) Butanol or other 
                                alcohols produced through the 
                                conversion of organic matter 
                                from renewable biomass.
                                  ``(VII) Other fuel derived 
                                from cellulosic biomass.
                  ``(C) Baseline lifecycle greenhouse gas 
                emissions.--The term `baseline lifecycle 
                greenhouse gas emissions' means the average 
                lifecycle greenhouse gas emissions, as 
                determined by the Administrator, after notice 
                and opportunity for comment, for gasoline or 
                diesel (whichever is being replaced by the 
                renewable fuel) sold or distributed as 
                transportation fuel in 2005.
                  ``(D) Biomass-based diesel.--The term 
                `biomass-based diesel' means renewable fuel 
                that is biodiesel as defined in section 312(f) 
                of the Energy Policy Act of 1992 (42 U.S.C. 
                13220(f)) and that has lifecycle greenhouse gas 
                emissions, as determined by the Administrator, 
                after notice and opportunity for comment, that 
                are at least 50 percent less than the baseline 
                lifecycle greenhouse gas emissions. 
                Notwithstanding the preceding sentence, 
                renewable fuel derived from co-processing 
                biomass with a petroleum feedstock shall be 
                advanced biofuel if it meets the requirements 
                of subparagraph (B), but is not biomass-based 
                diesel.
                  ``(E) Cellulosic biofuel.--The term 
                `cellulosic biofuel' means renewable fuel 
                derived from any cellulose, hemicellulose, or 
                lignin that is derived from renewable biomass 
                and that has lifecycle greenhouse gas 
                emissions, as determined by the Administrator, 
                that are at least 60 percent less than the 
                baseline lifecycle greenhouse gas emissions.
                  ``(F) Conventional biofuel.--The term 
                `conventional biofuel' means renewable fuel 
                that is ethanol derived from corn starch
                  ``(G) Greenhouse gas.--The term `greenhouse 
                gas' means carbon dioxide, hydrofluorocarbons, 
                methane, nitrous oxide, perfluorocarbons, 
                sulfur hexafluoride. The Administrator may 
                include any other anthropogenically-emitted gas 
                that is determined by the Administrator, after 
                notice and comment, to contribute to global 
                warming.
                  ``(H) Lifecycle greenhouse gas emissions.--
                The term `lifecycle greenhouse gas emissions' 
                means the aggregate quantity of greenhouse gas 
                emissions (including direct emissions and 
                significant indirect emissions such as 
                significant emissions from land use changes), 
                as determined by the Administrator, related to 
                the full fuel lifecycle, including all stages 
                of fuel and feedstock production and 
                distribution, from feedstock generation or 
                extraction through the distribution and 
                delivery and use of the finished fuel to the 
                ultimate consumer, where the mass values for 
                all greenhouse gases are adjusted to account 
                for their relative global warming potential.
                  ``(I) Renewable biomass.--The term `renewable 
                biomass' means each of the following:
                          ``(i) Planted crops and crop residue 
                        harvested from agricultural land 
                        cleared or cultivated at any time prior 
                        to the enactment of this sentence that 
                        is either actively managed or fallow, 
                        and nonforested.
                          ``(ii) Planted trees and tree residue 
                        from actively managed tree plantations 
                        on non-federal land cleared at any time 
                        prior to enactment of this sentence, 
                        including land belonging to an Indian 
                        tribe or an Indian individual, that is 
                        held in trust by the United States or 
                        subject to a restriction against 
                        alienation imposed by the United 
                        States.
                          ``(iii) Animal waste material and 
                        animal byproducts.
                          ``(iv) Slash and pre-commercial 
                        thinnings that are from non-federal 
                        forestlands, including forestlands 
                        belonging to an Indian tribe or an 
                        Indian individual, that are held in 
                        trust by the United States or subject 
                        to a restriction against alienation 
                        imposed by the United States, but not 
                        forests or forestlands that are 
                        ecological communities with a global or 
                        State ranking of critically imperiled, 
                        imperiled, or rare pursuant to a State 
                        Natural Heritage Program, old growth 
                        forest, or late successional forest.
                          ``(v) Biomass obtained from the 
                        immediate vicinity of buildings and 
                        other areas regularly occupied by 
                        people, or of public infrastructure, at 
                        risk from wildfire.
                          ``(vi) Algae.
                          ``(vii) Separated yard waste or food 
                        waste, including recycled cooking and 
                        trap grease.
                  ``(J) Renewable fuel.--The term `renewable 
                fuel' means fuel that is produced from 
                renewable biomass and that is used to replace 
                or reduce the quantity of fossil fuel present 
                in a transportation fuel.
                  ``(K) Small refinery.--The term `small 
                refinery' means a refinery for which the 
                average aggregate daily crude oil throughput 
                for a calendar year (as determined by dividing 
                the aggregate throughput for the calendar year 
                by the number of days in the calendar year) 
                does not exceed 75,000 barrels.
                  ``(L) Transportation fuel.--The term 
                `transportation fuel' means fuel for use in 
                motor vehicles, motor vehicle engines, nonroad 
                vehicles, or nonroad engines (except for ocean-
                going vessels).''.

SEC. 202. RENEWABLE FUEL STANDARD.

  (a) Renewable Fuel Program.--Paragraph (2) of section 211(o) 
(42 U.S.C. 7545(o)(2)) of the Clean Air Act is amended as 
follows:
          (1) Regulations.--Clause (i) of subparagraph (A) is 
        amended by adding the following at the end thereof: 
        ``Not later than 1 year after the date of enactment of 
        this sentence, the Administrator shall revise the 
        regulations under this paragraph to ensure that 
        transportation fuel sold or introduced into commerce in 
        the United States (except in noncontiguous States or 
        territories), on an annual average basis, contains at 
        least the applicable volume of renewable fuel, advanced 
        biofuel, cellulosic biofuel, and biomass-based diesel, 
        determined in accordance with subparagraph (B) and, in 
        the case of any such renewable fuel produced from new 
        facilities that commence construction after the date of 
        enactment of this sentence, achieves at least a 20 
        percent reduction in lifecycle greenhouse gas emissions 
        compared to baseline lifecycle greenhouse gas 
        emissions.''
          (2) Applicable volumes of renewable fuel.--
        Subparagraph (B) is amended to read as follows:
                  ``(B) Applicable volumes.--
                          ``(i) Calendar years after 2005.--
                                  ``(I) Renewable fuel.--For 
                                the purpose of subparagraph 
                                (A), the applicable volume of 
                                renewable fuel for the calendar 
                                years 2006 through 2022 shall 
                                be determined in accordance 
                                with the following table:
                                     Applicable volume of renewable fuel
``Calendar year:                               (in billions of gallons):
    2006..........................................................   4.0
    2007..........................................................   4.7
    2008..........................................................   9.0
    2009..........................................................  11.1
    2010.......................................................... 12.95
    2011.......................................................... 13.95
    2012..........................................................  15.2
    2013.......................................................... 16.55
    2014.......................................................... 18.15
    2015..........................................................  20.5
    2016.......................................................... 22.25
    2017..........................................................  24.0
    2018..........................................................  26.0
    2019..........................................................  28.0
    2020..........................................................  30.0
    2021..........................................................  33.0
    2022..........................................................  36.0
                                  ``(II) Advanced biofuel.--For 
                                the purpose of subparagraph 
                                (A), of the volume of renewable 
                                fuel required under subclause 
                                (I), the applicable volume of 
                                advanced biofuel for the 
                                calendar years 2009 through 
                                2022 shall be determined in 
                                accordance with the following 
                                table:
                                   Applicable volume of advanced biofuel
``Calendar year:                               (in billions of gallons):
    2009..........................................................   0.6
    2010..........................................................  0.95
    2011..........................................................  1.35
    2012..........................................................   2.0
    2013..........................................................  2.75
    2014..........................................................  3.75
    2015..........................................................   5.5
    2016..........................................................  7.25
    2017..........................................................   9.0
    2018..........................................................  11.0
    2019..........................................................  13.0
    2020..........................................................  15.0
    2021..........................................................  18.0
    2022..........................................................  21.0
                                  ``(III) Cellulosic biofuel.--
                                For the purpose of subparagraph 
                                (A), of the volume of advanced 
                                biofuel required under 
                                subclause (II), the applicable 
                                volume of cellulosic biofuel 
                                for the calendar years 2010 
                                through 2022 shall be 
                                determined in accordance with 
                                the following table:
                                 Applicable volume of cellulosic biofuel
``Calendar year:                               (in billions of gallons):
    2010..........................................................   0.1
    2011..........................................................  0.25
    2012..........................................................   0.5
    2013..........................................................   1.0
    2014..........................................................  1.75
    2015..........................................................   3.0
    2016..........................................................  4.25
    2017..........................................................   5.5
    2018..........................................................   7.0
    2019..........................................................   8.5
    2020..........................................................  10.5
    2021..........................................................  13.5
    2022..........................................................  16.0
                                  ``(IV) Biomass-based 
                                diesel.--For the purpose of 
                                subparagraph (A), of the volume 
                                of advanced biofuel required 
                                under subclause (II), the 
                                applicable volume of biomass-
                                based diesel for the calendar 
                                years 2009 through 2012 shall 
                                be determined in accordance 
                                with the following table:
                               Applicable volume of biomass-based diesel
``Calendar year:                               (in billions of gallons):
    2009..........................................................   0.5
    2010..........................................................  0.65
    2011..........................................................  0.80
    2012..........................................................   1.0
                          ``(ii) Other calendar years.--For the 
                        purposes of subparagraph (A), the 
                        applicable volumes of each fuel 
                        specified in the tables in clause (i) 
                        for calendar years after the calendar 
                        years specified in the tables shall be 
                        determined by the Administrator, in 
                        coordination with the Secretary of 
                        Energy and the Secretary of 
                        Agriculture, based on a review of the 
                        implementation of the program during 
                        calendar years specified in the tables, 
                        and an analysis of--
                                  ``(I) the impact of the 
                                production and use of renewable 
                                fuels on the environment, 
                                including on air quality, 
                                climate change, conversion of 
                                wet lands, eco-systems, 
                                wildlife habitat, water 
                                quality, and water supply;
                                  ``(II) the impact of 
                                renewable fuels on the energy 
                                security of the United States;
                                  ``(III) the expected annual 
                                rate of future commercial 
                                production of renewable fuels, 
                                including advanced biofuels in 
                                each category (cellulosic 
                                biofuel and biomass-based 
                                diesel);
                                  ``(IV) the impact of 
                                renewable fuels on the 
                                infrastructure of the United 
                                States, including 
                                deliverability of materials, 
                                goods, and products other than 
                                renewable fuel, and the 
                                sufficiency of infrastructure 
                                to deliver and use renewable 
                                fuel;
                                  ``(V) the impact of the use 
                                of renewable fuels on the cost 
                                to consumers of transportation 
                                fuel and on the cost to 
                                transport goods; and
                                  ``(VI) the impact of the use 
                                of renewable fuels on other 
                                factors, including job 
                                creation, the price and supply 
                                of agricultural commodities, 
                                rural economic development, and 
                                food prices.
                        The Administrator shall promulgate 
                        rules establishing the applicable 
                        volumes under this clause no later than 
                        14 months before the first year for 
                        which such applicable volume will 
                        apply.
                          ``(iii) Applicable volume of advanced 
                        biofuel.--For the purpose of making the 
                        determinations in clause (ii), for each 
                        calendar year, the applicable volume of 
                        advanced biofuel shall be at least the 
                        same percentage of the applicable 
                        volume of renewable fuel as in calendar 
                        year 2022.
                          ``(iv) Applicable volume of 
                        cellulosic biofuel.--For the purpose of 
                        making the determinations in clause 
                        (ii), for each calendar year, the 
                        applicable volume of cellulosic biofuel 
                        established by the Administrator shall 
                        be based on the assumption that the 
                        Administrator will not need to issue a 
                        waiver for such years under paragraph 
                        (7)(D).
                          ``(v) Minimum applicable volume of 
                        biomass-based diesel.--For the purpose 
                        of making the determinations in clause 
                        (ii), the applicable volume of biomass-
                        based diesel shall not be less than the 
                        applicable volume listed in clause 
                        (i)(IV) for calendar year 2012.''.
  (b) Applicable Percentages.--Paragraph (3) of section 211(o) 
of the Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as 
follows:
          (1) In subparagraph (A), by striking ``2011'' and 
        inserting ``2021.''
          (2) In subparagraph (A), by striking ``gasoline'' and 
        inserting ``transportation fuel, biomass-based diesel, 
        and cellulosic biofuel''.
          (3) In subparagraph (B), by striking ``2012'' and 
        inserting ``2021'' in clause (ii)(I).
          (4) In subparagraph (B), by striking gasoline'' and 
        inserting ``transportation fuel'' in clause (ii)(II).
  (c) Modification of Greenhouse Gas Percentages.--Paragraph 
(4) of section 211(o) of the Clean Air Act (42 U.S.C. 
7545(o)(4)) is amended to read as follows:
          ``(4) Modification of greenhouse gas reduction 
        percentages.--
                  ``(A) In general.--The Administrator may, in 
                the regulations under the last sentence of 
                paragraph (2)(A)(i), adjust the 20 percent, 50 
                percent, and 60 percent reductions in lifecycle 
                greenhouse gas emissions specified in 
                paragraphs (2)(A)(i)(relating to renewable 
                fuel), (1)(D) (relating to biomass-based 
                diesel), (1)(B)(i)(relating to advanced 
                biofuel), and (1)(E) (relating to cellulosic 
                biofuel) to a lower percentage. For the 50 and 
                60 percent reductions, the Administrator may 
                make such an adjustment only if he determines 
                that generally such reduction is not 
                commercially feasible for fuels made using a 
                variety of feedstocks, technologies, and 
                processes to meet the applicable reduction.
                  ``(B) Amount of adjustment.--In promulgating 
                regulations under this paragraph, the specified 
                50 percent reduction in greenhouse gas 
                emissions from advanced biofuel and in biomass-
                based diesel may not be reduced below 40 
                percent. The specified 20 percent reduction in 
                greenhouse gas emissions from renewable fuel 
                may not be reduced below 10 percent, and the 
                specified 60 percent reduction in greenhouse 
                gas emissions from cellulosic biofuel may not 
                be reduced below 50 percent.
                  ``(C) Adjusted reduction levels.--An 
                adjustment under this paragraph to a percent 
                less than the specified 20 percent greenhouse 
                gas reduction for renewable fuel shall be the 
                minimum possible adjustment, and the adjusted 
                greenhouse gas reduction shall be established 
                by the Administrator at the maximum achievable 
                level, taking cost in consideration, for 
                natural gas fired corn-based ethanol plants, 
                allowing for the use of a variety of 
                technologies and processes. An adjustment in 
                the 50 or 60 percent greenhouse gas levels 
                shall be the minimum possible adjustment for 
                the fuel or fuels concerned, and the adjusted 
                greenhouse gas reduction shall be established 
                at the maximum achievable level, taking cost in 
                consideration, allowing for the use of a 
                variety of feedstocks, technologies, and 
                processes.
                  ``(D) 5-year review.--Whenever the 
                Administrator makes any adjustment under this 
                paragraph, not later than 5 years thereafter he 
                shall review and revise (based upon the same 
                criteria and standards as required for the 
                initial adjustment) the regulations 
                establishing the adjusted level.
                  ``(E) Subsequent adjustments.--After the 
                Administrator has promulgated a final rule 
                under the last sentence of paragraph (2)(A)(i) 
                with respect to the method of determining 
                lifecycle greenhouse gas emissions, except as 
                provided in subparagraph (D), the Administrator 
                may not adjust the percent greenhouse gas 
                reduction levels unless he determines that 
                there has been a significant change in the 
                analytical methodology used for determining the 
                lifecycle greenhouse gas emissions. If he makes 
                such determination, he may adjust the 20, 50, 
                or 60 percent reduction levels through 
                rulemaking using the criteria and standards set 
                forth in this paragraph.
                  ``(F) Limit on upward adjustments.--If, under 
                subparagraph (D) or (E), the Administrator 
                revises a percent level adjusted as provided in 
                subparagraph (A), (B), and (C) to a higher 
                percent, such higher percent may not exceed the 
                applicable percent specified in paragraph 
                (2)(A)(i), (1)(D),(1)(B)(i), or (1)(E).
                  ``(G) Applicability of adjustments.--If the 
                Administrator adjusts, or revises, a percent 
                level referred to in this paragraph or makes a 
                change in the analytical methodology used for 
                determining the lifecycle greenhouse gas 
                emissions, such adjustment, revision, or change 
                (or any combination thereof) shall only apply 
                to renewable fuel from new facilities that 
                commence construction after the effective date 
                of such adjustment, revision, or change.''.
  (d) Credits for Additional Renewable Fuel.--Paragraph (5) of 
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is 
amended by adding the following new subparagraph at the end 
thereof:
                  ``(E) Credits for additional renewable 
                fuel.--The Administrator may issue regulations 
                providing (i) for the generation of an 
                appropriate amount of credits by any person 
                that refines, blends, or imports additional 
                renewable fuels specified by the Administrator 
                and (ii) for the use of such credits by the 
                generator, or the transfer of all or a portion 
                of the credits to another person, for the 
                purpose of complying with paragraph (2).''.
  (e) Waivers.--
          (1) In general.--Paragraph (7)(A) of section 211(o) 
        of the Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is 
        amended by inserting ``, by any person subject to the 
        requirements of this subsection, or by the 
        Administrator on his own motion'' after ``one or more 
        States'' in subparagraph (A) and by striking out 
        ``State'' in subparagraph (B).
          (2) Cellulosic biofuel.--Paragraph (7) of section 
        211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)) is 
        amended by adding the following at the end thereof:
                  ``(D) Cellulosic biofuel.--(i) For any 
                calendar year for which the projected volume of 
                cellulosic biofuel production is less than the 
                minimum applicable volume established under 
                paragraph (2)(B), as determined by the 
                Administrator based on the estimate provided 
                under paragraph (3)(A), not later than November 
                30 of the preceding calendar year, the 
                Administrator shall reduce the applicable 
                volume of cellulosic biofuel required under 
                paragraph (2)(B) to the projected volume 
                available during that calendar year. For any 
                calendar year in which the Administrator makes 
                such a reduction, the Administrator may also 
                reduce the applicable volume of renewable fuel 
                and advanced biofuels requirement established 
                under paragraph (2)(B) by the same or a lesser 
                volume.
                  ``(ii) Whenever the Administrator reduces the 
                minimum cellulosic biofuel volume under this 
                subparagraph, the Administrator shall make 
                available for sale cellulosic biofuel credits 
                at the higher of $0.25 per gallon or the amount 
                by which $3.00 per gallon exceeds the average 
                wholesale price of a gallon of gasoline in the 
                United States. Such amounts shall be adjusted 
                for inflation by the Administrator for years 
                after 2008.
                  ``(iii) 18 months after date of enactment of 
                this subparagraph, the Administrator shall 
                promulgate regulations to govern the issuance 
                of credits under this subparagraph. The 
                regulations shall set forth the method for 
                determining the exact price of credits in the 
                event of a waiver. The price of such credits 
                shall not be changed more frequently than once 
                each quarter. These regulations shall include 
                such provisions, including limiting the 
                credits' uses and useful life, as the 
                Administrator deems appropriate to assist 
                market liquidity and transparency, to provide 
                appropriate certainty for regulated entities 
                and renewable fuel producers, and to limit any 
                potential misuse of cellulosic biofuel credits 
                to reduce the use of other renewable fuels, and 
                for such other purposes as the Administrator 
                determines will help achieve the goals of this 
                subsection. The regulations shall limit the 
                number of cellulosic biofuel credits for any 
                calendar year to the minimum applicable volume 
                (as reduced under this subparagraph) of 
                cellulosic biofuel for that year.''.
          (3) Biomass-based diesel.--Paragraph (7) of section 
        211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)) is 
        amended by adding the following at the end thereof:
                  ``(E) Biomass-based diesel.--
                          ``(i) Market evaluation.--The 
                        Administrator, in consultation with the 
                        Secretary of Energy and the Secretary 
                        of Agriculture, shall periodically 
                        evaluate the impact of the biomass-
                        based diesel requirements established 
                        under this paragraph on the price of 
                        diesel fuel.
                          ``(ii) Waiver.--If the Administrator 
                        determines that there is a significant 
                        renewable feedstock disruption or other 
                        market circumstances that would make 
                        the price of biomass-based diesel fuel 
                        increase significantly, the 
                        Administrator, in consultation with the 
                        Secretary of Energy and the Secretary 
                        of Agriculture, shall issue an order to 
                        reduce, for up to a 60-day period, the 
                        quantity of biomass-based diesel 
                        required under subparagraph (A) by an 
                        appropriate quantity that does not 
                        exceed 15 percent of the applicable 
                        annual requirement for biomass-based 
                        diesel. For any calendar year in which 
                        the Administrator makes a reduction 
                        under this subparagraph, the 
                        Administrator may also reduce the 
                        applicable volume of renewable fuel and 
                        advanced biofuels requirement 
                        established under paragraph (2)(B) by 
                        the same or a lesser volume.
                          ``(iii) Extensions.--If the 
                        Administrator determines that the 
                        feedstock disruption or circumstances 
                        described in clause (ii) is continuing 
                        beyond the 60-day period described in 
                        clause (ii) or this clause, the 
                        Administrator, in consultation with the 
                        Secretary of Energy and the Secretary 
                        of Agriculture, may issue an order to 
                        reduce, for up to an additional 60-day 
                        period, the quantity of biomass-based 
                        diesel required under subparagraph (A) 
                        by an appropriate quantity that does 
                        not exceed an additional 15 percent of 
                        the applicable annual requirement for 
                        biomass-based diesel.
                  ``(F) Modification of applicable volumes.--
                For any of the tables in paragraph (2)(B), if 
                the Administrator waives--
                          ``(i) at least 20 percent of the 
                        applicable volume requirement set forth 
                        in any such table for 2 consecutive 
                        years; or
                          ``(ii) at least 50 percent of such 
                        volume requirement for a single year,
                the Administrator shall promulgate a rule 
                (within one year after issuing such waiver) 
                that modifies the applicable volumes set forth 
                in the table concerned for all years following 
                the final year to which the waiver applies, 
                except that no such modification in applicable 
                volumes shall be made for any year before 2016. 
                In promulgating such a rule, the Administrator 
                shall comply with the processes, criteria, and 
                standards set forth in paragraph (2)(B)(ii).''.

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

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

SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.

  (a) In General.--Not later than 3 years after the enactment 
of this section and every 3 years thereafter, the Administrator 
of the Environmental Protection Agency, in consultation with 
the Secretary of Agriculture and the Secretary of Energy, shall 
assess and report to Congress on the impacts to date and likely 
future impacts of the requirements of section 211(o) of the 
Clean Air Act on the following:
          (1) Environmental issues, including air quality, 
        effects on hypoxia, pesticides, sediment, nutrient and 
        pathogen levels in waters, acreage and function of 
        waters, and soil environmental quality.
          (2) Resource conservation issues, including soil 
        conservation, water availability, and ecosystem health 
        and biodiversity, including impacts on forests, 
        grasslands, and wetlands.
          (3) The growth and use of cultivated invasive or 
        noxious plants and their impacts on the environment and 
        agriculture.
In advance of preparing the report required by this subsection, 
the Administrator may seek the views of the National Academy of 
Sciences or another appropriate independent research institute. 
The report shall include the annual volume of imported 
renewable fuels and feedstocks for renewable fuels, and the 
environmental impacts outside the United States of producing 
such fuels and feedstocks. The report required by this 
subsection shall include recommendations for actions to address 
any adverse impacts found.
  (b) Effect on Air Quality and Other Environmental 
Requirements.--Except as provided in section 211(o)(13) of the 
Clean Air Act, nothing in the amendments made by this title to 
section 211(o) of the Clean Air Act shall be construed as 
superseding, or limiting, any more environmentally protective 
requirement under the Clean Air Act, or under any other 
provision of State or Federal law or regulation, including any 
environmental law or regulation.

SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING.

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

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

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

SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.

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

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

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

SEC. 209. ANTI-BACKSLIDING.

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

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

  (a) Transition Rules.--(1) For calendar year 2008, 
transportation fuel sold or introduced into commerce in the 
United States (except in noncontiguous States or territories), 
that is produced from facilities that commence construction 
after the date of enactment of this Act shall be treated as 
renewable fuel within the meaning of section 211(o) of the 
Clean Air Act only if it achieves at least a 20 percent 
reduction in lifecycle greenhouse gas emissions compared to 
baseline lifecycle greenhouse gas emissions. For calendar years 
2008 and 2009, any ethanol plant that is fired with natural 
gas, biomass, or any combination thereof is deemed to be in 
compliance with such 20 percent reduction requirement and with 
the 20 percent reduction requirement of section 211(o)(1) of 
the Clean Air Act. The terms used in this subsection shall have 
the same meaning as provided in the amendment made by this Act 
to section 211(o) of the Clean Air Act.
  (2) Until January 1, 2009, the Administrator of the 
Environmental Protection Agency shall implement section 211(o) 
of the Clean Air Act and the rules promulgated under that 
section in accordance with the provisions of that section as in 
effect before the enactment of this Act and in accordance with 
the rules promulgated before the enactment of this Act, except 
that for calendar year 2008, the number ``8.5'' shall be 
substituted for the number ``5.4'' in the table in section 
211(o)(2)(B) and in the corresponding rules promulgated to 
carry out those provisions. The Administrator is authorized to 
take such other actions as may be necessary to carry out this 
paragraph notwithstanding any other provision of law.
  (b) Savings Clause.--Section 211(o) of the Clean Air Act (42 
U.S.C. 7545(o)) is amended by adding the following new 
paragraph at the end thereof:
          ``(13) Effect on other provisions.--Nothing in this 
        subsection, or regulations issued pursuant to this 
        subsection, shall affect or be construed to affect the 
        regulatory status of carbon dioxide or any other 
        greenhouse gas, or to expand or limit regulatory 
        authority regarding carbon dioxide or any other 
        greenhouse gas, for purposes of other provisions 
        (including section 165) of this Act. The previous 
        sentence shall not affect implementation and 
        enforcement of this subsection.''.
  (c) Effective Date.--The amendments made by this title to 
section 211(o) of the Clean Air Act shall take effect January 
1, 2009, except that the Administrator shall promulgate 
regulations to carry out such amendments not later than one 
year after the enactment of this Act.

             Subtitle B--Biofuels Research and Development


SEC. 221. BIODIESEL.

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

SEC. 222. BIOGAS.

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

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

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

SEC. 224. BIOREFINERY ENERGY EFFICIENCY.

  Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232) is 
amended by adding at the end the following new subsections:
  ``(g) Biorefinery Energy Efficiency.--The Secretary shall 
establish a program of research, development, demonstration, 
and commercial application for increasing energy efficiency and 
reducing energy consumption in the operation of biorefinery 
facilities.
  ``(h) Retrofit Technologies for the Development of Ethanol 
From Cellulosic Materials.--The Secretary shall establish a 
program of research, development, demonstration, and commercial 
application on technologies and processes to enable 
biorefineries that exclusively use corn grain or corn starch as 
a feedstock to produce ethanol to be retrofitted to accept a 
range of biomass, including lignocellulosic feedstocks.''.

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

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

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

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

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

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

SEC. 228. ALGAL BIOMASS.

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

SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CENTER.

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

SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.

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

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

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

SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.

  (a) In General.--Section 977 of the Energy Policy Act of 2005 
(42 U.S.C. 16317) is amended--
          (1) in subsection (a)(1), by striking ``and 
        computational biology'' and inserting ``computational 
        biology, and environmental science''; and
          (2) in subsection (b)--
                  (A) in paragraph (1), by inserting ``in 
                sustainable production systems that reduce 
                greenhouse gas emissions'' after ``hydrogen'';
                  (B) in paragraph (3), by striking ``and'' at 
                the end;
                  (C) by redesignating paragraph (4) as 
                paragraph (5); and
                  (D) by inserting after paragraph (3) the 
                following:
          ``(4) develop cellulosic and other feedstocks that 
        are less resource and land intensive and that promote 
        sustainable use of resources, including soil, water, 
        energy, forests, and land, and ensure protection of 
        air, water, and soil quality; and''.
  (b) Tools and Evaluation.--Section 307(d) of the Biomass 
Research and Development Act of 2000 (7 U.S.C. 8606(d)) is 
amended--
          (1) in paragraph (3)(E), by striking ``and'' at the 
        end;
          (2) in paragraph (4), by striking the period at the 
        end and inserting a semicolon; and
          (3) by adding at the end the following:
          ``(5) the improvement and development of analytical 
        tools to facilitate the analysis of life-cycle energy 
        and greenhouse gas emissions, including emissions 
        related to direct and indirect land use changes, 
        attributable to all potential biofuel feedstocks and 
        production processes; and
          ``(6) the systematic evaluation of the impact of 
        expanded biofuel production on the environment, 
        including forest lands, and on the food supply for 
        humans and animals.''.
  (c) Small-Scale Production and Use of Biofuels.--Section 
307(e) of the Biomass Research and Development Act of 2000 (7 
U.S.C. 8606(e)) is amended--
          (1) in paragraph (2), by striking ``and'' at the end;
          (2) in paragraph (3), by striking the period at the 
        end and inserting ``; and''; and
          (3) by adding at the end the following:
          ``(4) to facilitate small-scale production, local, 
        and on-farm use of biofuels, including the development 
        of small-scale gasification technologies for production 
        of biofuel from cellulosic feedstocks.''.

SEC. 233. BIOENERGY RESEARCH CENTERS.

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

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

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

                  Subtitle C--Biofuels Infrastructure


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

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

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

  ``(a) Definition.--In this section:
          ``(1) Renewable fuel.--The term `renewable fuel' 
        means any fuel--
                  ``(A) at least 85 percent of the volume of 
                which consists of ethanol; or
                  ``(B) any mixture of biodiesel and diesel or 
                renewable diesel (as defined in regulations 
                adopted pursuant to section 211(o) of the Clean 
                Air Act (40 CFR, Part 80)), determined without 
                regard to any use of kerosene and containing at 
                least 20 percent biodiesel or renewable diesel.
          ``(2) Franchise-related document.--The term 
        `franchise-related document' means--
                  ``(A) a franchise under this Act; and
                  ``(B) any other contract or directive of a 
                franchisor relating to terms or conditions of 
                the sale of fuel by a franchisee.
  ``(b) Prohibitions.--
          ``(1) In general.--No franchise-related document 
        entered into or renewed on or after the date of 
        enactment of this section shall contain any provision 
        allowing a franchisor to restrict the franchisee or any 
        affiliate of the franchisee from--
                  ``(A) installing on the marketing premises of 
                the franchisee a renewable fuel pump or tank, 
                except that the franchisee's franchisor may 
                restrict the installation of a tank on leased 
                marketing premises of such franchisor;
                  ``(B) converting an existing tank or pump on 
                the marketing premises of the franchisee for 
                renewable fuel use, so long as such tank or 
                pump and the piping connecting them are either 
                warranted by the manufacturer or certified by a 
                recognized standards setting organization to be 
                suitable for use with such renewable fuel;
                  ``(C) advertising (including through the use 
                of signage) the sale of any renewable fuel;
                  ``(D) selling renewable fuel in any specified 
                area on the marketing premises of the 
                franchisee (including any area in which a name 
                or logo of a franchisor or any other entity 
                appears);
                  ``(E) purchasing renewable fuel from sources 
                other than the franchisor if the franchisor 
                does not offer its own renewable fuel for sale 
                by the franchisee;
                  ``(F) listing renewable fuel availability or 
                prices, including on service station signs, 
                fuel dispensers, or light poles; or
                  ``(G) allowing for payment of renewable fuel 
                with a credit card,
        so long as such activities described in subparagraphs 
        (A) through (G) do not constitute mislabeling, 
        misbranding, willful adulteration, or other trademark 
        violations by the franchisee.
          ``(2) Effect of provision.--Nothing in this section 
        shall be construed to preclude a franchisor from 
        requiring the franchisee to obtain reasonable 
        indemnification and insurance policies.
  ``(c) Exception to 3-Grade Requirement.--No franchise-related 
document that requires that 3 grades of gasoline be sold by the 
applicable franchisee shall prevent the franchisee from selling 
an renewable fuel in lieu of 1, and only 1, grade of 
gasoline.''.
  (b) Enforcement.--Section 105 of the Petroleum Marketing 
Practices Act (15 U.S.C. 2805) is amended by striking ``102 or 
103'' each place it appears and inserting ``102, 103, or 107''.
  (c) Conforming Amendments.--
          (1) In general.--Section 101(13) of the Petroleum 
        Marketing Practices Act (15 U.S.C. 2801(13)) is amended 
        by aligning the margin of subparagraph (C) with 
        subparagraph (B).
          (2) Table of contents.--The table of contents of the 
        Petroleum Marketing Practices Act (15 U.S.C. 2801 note) 
        is amended--
                  (A) by inserting after the item relating to 
                section 106 the following:

``Sec. 107. Prohibition on restriction of installation of renewable fuel 
          pumps.''; and
                  (B) by striking the item relating to section 
                202 and inserting the following:

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

SEC. 242. RENEWABLE FUEL DISPENSER REQUIREMENTS.

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

SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.

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

SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS.

  (a) Definition of Renewable Fuel Blend.--For purposes of this 
section, the term ``renewable fuel blend'' means gasoline blend 
that contain not less than 11 percent, and not more than 85 
percent, renewable fuel or diesel fuel that contains at least 
10 percent renewable fuel.
  (b) Infrastructure Development Grants.--
          (1) Establishment.--The Secretary shall establish a 
        program for making grants for providing assistance to 
        retail and wholesale motor fuel dealers or other 
        entities for the installation, replacement, or 
        conversion of motor fuel storage and dispensing 
        infrastructure to be used exclusively to store and 
        dispense renewable fuel blends.
          (2) Selection criteria.--Not later than 12 months 
        after the date of enactment of this Act, the Secretary 
        shall establish criteria for evaluating applications 
        for grants under this subsection that will maximize the 
        availability and use of renewable fuel blends, and that 
        will ensure that renewable fuel blends are available 
        across the country. Such criteria shall provide for--
                  (A) consideration of the public demand for 
                each renewable fuel blend in a particular 
                geographic area based on State registration 
                records showing the number of flexible-fuel 
                vehicles;
                  (B) consideration of the opportunity to 
                create or expand corridors of renewable fuel 
                blend stations along interstate or State 
                highways;
                  (C) consideration of the experience of each 
                applicant with previous, similar projects;
                  (D) consideration of population, number of 
                flexible-fuel vehicles, number of retail fuel 
                outlets, and saturation of flexible-fuel 
                vehicles; and
                  (E) priority consideration to applications 
                that--
                          (i) are most likely to maximize 
                        displacement of petroleum consumption, 
                        measured as a total quantity and a 
                        percentage;
                          (ii) are best able to incorporate 
                        existing infrastructure while 
                        maximizing, to the extent practicable, 
                        the use of renewable fuel blends; and
                          (iii) demonstrate the greatest 
                        commitment on the part of the applicant 
                        to ensure funding for the proposed 
                        project and the greatest likelihood 
                        that the project will be maintained or 
                        expanded after Federal assistance under 
                        this subsection is completed.
          (3) Limitations.--Assistance provided under this 
        subsection shall not exceed--
                  (A) 33 percent of the estimated cost of the 
                installation, replacement, or conversion of 
                motor fuel storage and dispensing 
                infrastructure; or
                  (B) $180,000 for a combination of equipment 
                at any one retail outlet location.
          (4) Operation of renewable fuel blend stations.--The 
        Secretary shall establish rules that set forth 
        requirements for grant recipients under this section 
        that include providing to the public the renewable fuel 
        blends, establishing a marketing plan that informs 
        consumers of the price and availability of the 
        renewable fuel blends, clearly labeling the dispensers 
        and related equipment, and providing periodic reports 
        on the status of the renewable fuel blend sales, the 
        type and amount of the renewable fuel blends dispensed 
        at each location, and the average price of such fuel.
          (5) Notification requirements.--Not later than the 
        date on which each renewable fuel blend station begins 
        to offer renewable fuel blends to the public, the grant 
        recipient that used grant funds to construct or upgrade 
        such station shall notify the Secretary of such 
        opening. The Secretary shall add each new renewable 
        fuel blend station to the renewable fuel blend station 
        locator on its Website when it receives notification 
        under this subsection.
          (6) Double counting.--No person that receives a 
        credit under section 30C of the Internal Revenue Code 
        of 1986 may receive assistance under this section.
          (7) Reservation of funds.--The Secretary shall 
        reserve funds appropriated for the renewable fuel 
        blends infrastructure development grant program for 
        technical and marketing assistance described in 
        subsection (c).
  (c) Retail Technical and Marketing Assistance.--The Secretary 
shall enter into contracts with entities with demonstrated 
experience in assisting retail fueling stations in installing 
refueling systems and marketing renewable fuel blends 
nationally, for the provision of technical and marketing 
assistance to recipients of grants under this section. Such 
assistance shall include--
          (1) technical advice for compliance with applicable 
        Federal and State environmental requirements;
          (2) help in identifying supply sources and securing 
        long-term contracts; and
          (3) provision of public outreach, education, and 
        labeling materials.
  (d) Refueling Infrastructure Corridors.--
          (1) In general.--The Secretary shall establish a 
        competitive grant pilot program (referred to in this 
        subsection as the ``pilot program''), to be 
        administered through the Vehicle Technology Deployment 
        Program of the Department, to provide not more than 10 
        geographically-dispersed project grants to State 
        governments, Indian tribal governments, local 
        governments, metropolitan transportation authorities, 
        or partnerships of those entities to carry out 1 or 
        more projects for the purposes described in paragraph 
        (2).
          (2) Grant purposes.--A grant under this subsection 
        shall be used for the establishment of refueling 
        infrastructure corridors, as designated by the 
        Secretary, for renewable fuel blends, including--
                  (A) installation of infrastructure and 
                equipment necessary to ensure adequate 
                distribution of renewable fuel blends within 
                the corridor;
                  (B) installation of infrastructure and 
                equipment necessary to directly support 
                vehicles powered by renewable fuel blends; and
                  (C) operation and maintenance of 
                infrastructure and equipment installed as part 
                of a project funded by the grant.
          (3) Applications.--
                  (A) Requirements.--
                          (i) In general.--Subject to clause 
                        (ii), not later than 90 days after the 
                        date of enactment of this Act, the 
                        Secretary shall issue requirements for 
                        use in applying for grants under the 
                        pilot program.
                          (ii) Minimum requirements.--At a 
                        minimum, the Secretary shall require 
                        that an application for a grant under 
                        this subsection--
                                  (I) be submitted by--
                                          (aa) the head of a 
                                        State, tribal, or local 
                                        government or a 
                                        metropolitan 
                                        transportation 
                                        authority, or any 
                                        combination of those 
                                        entities; and
                                          (bb) a registered 
                                        participant in the 
                                        Vehicle Technology 
                                        Deployment Program of 
                                        the Department; and
                                  (II) include--
                                          (aa) a description of 
                                        the project proposed in 
                                        the application, 
                                        including the ways in 
                                        which the project meets 
                                        the requirements of 
                                        this subsection;
                                          (bb) an estimate of 
                                        the degree of use of 
                                        the project, including 
                                        the estimated size of 
                                        fleet of vehicles 
                                        operated with renewable 
                                        fuels blend available 
                                        within the geographic 
                                        region of the corridor, 
                                        measured as a total 
                                        quantity and a 
                                        percentage;
                                          (cc) an estimate of 
                                        the potential petroleum 
                                        displaced as a result 
                                        of the project 
                                        (measured as a total 
                                        quantity and a 
                                        percentage), and a plan 
                                        to collect and 
                                        disseminate petroleum 
                                        displacement and other 
                                        relevant data relating 
                                        to the project to be 
                                        funded under the grant, 
                                        over the expected life 
                                        of the project;
                                          (dd) a description of 
                                        the means by which the 
                                        project will be 
                                        sustainable without 
                                        Federal assistance 
                                        after the completion of 
                                        the term of the grant;
                                          (ee) a complete 
                                        description of the 
                                        costs of the project, 
                                        including acquisition, 
                                        construction, 
                                        operation, and 
                                        maintenance costs over 
                                        the expected life of 
                                        the project; and
                                          (ff) a description of 
                                        which costs of the 
                                        project will be 
                                        supported by Federal 
                                        assistance under this 
                                        subsection.
                  (B) Partners.--An applicant under 
                subparagraph (A) may carry out a project under 
                the pilot program in partnership with public 
                and private entities.
          (4) Selection criteria.--In evaluating applications 
        under the pilot program, the Secretary shall--
                  (A) consider the experience of each applicant 
                with previous, similar projects; and
                  (B) give priority consideration to 
                applications that--
                          (i) are most likely to maximize 
                        displacement of petroleum consumption, 
                        measured as a total quantity and a 
                        percentage;
                          (ii) are best able to incorporate 
                        existing infrastructure while 
                        maximizing, to the extent practicable, 
                        the use of advanced biofuels;
                          (iii) demonstrate the greatest 
                        commitment on the part of the applicant 
                        to ensure funding for the proposed 
                        project and the greatest likelihood 
                        that the project will be maintained or 
                        expanded after Federal assistance under 
                        this subsection is completed;
                          (iv) represent a partnership of 
                        public and private entities; and
                          (v) exceed the minimum requirements 
                        of paragraph (3)(A)(ii).
          (5) Pilot project requirements.--
                  (A) Maximum amount.--The Secretary shall 
                provide not more than $20,000,000 in Federal 
                assistance under the pilot program to any 
                applicant.
                  (B) Cost sharing.--The non-Federal share of 
                the cost of any activity relating to renewable 
                fuel blend infrastructure development carried 
                out using funds from a grant under this 
                subsection shall be not less than 20 percent.
                  (C) Maximum period of grants.--The Secretary 
                shall not provide funds to any applicant under 
                the pilot program for more than 2 years.
                  (D) Deployment and distribution.--The 
                Secretary shall seek, to the maximum extent 
                practicable, to ensure a broad geographic 
                distribution of project sites funded by grants 
                under this subsection.
                  (E) Transfer of information and knowledge.--
                The Secretary shall establish mechanisms to 
                ensure that the information and knowledge 
                gained by participants in the pilot program are 
                transferred among the pilot program 
                participants and to other interested parties, 
                including other applicants that submitted 
                applications.
          (6) Schedule.--
                  (A) Initial grants.--
                          (i) In general.--Not later than 90 
                        days after the date of enactment of 
                        this Act, the Secretary shall publish 
                        in the Federal Register, Commerce 
                        Business Daily, and such other 
                        publications as the Secretary considers 
                        to be appropriate, a notice and request 
                        for applications to carry out projects 
                        under the pilot program.
                          (ii) Deadline.--An application 
                        described in clause (i) shall be 
                        submitted to the Secretary by not later 
                        than 180 days after the date of 
                        publication of the notice under that 
                        clause.
                          (iii) Initial selection.--Not later 
                        than 90 days after the date by which 
                        applications for grants are due under 
                        clause (ii), the Secretary shall select 
                        by competitive, peer-reviewed proposal 
                        up to 5 applications for projects to be 
                        awarded a grant under the pilot 
                        program.
                  (B) Additional grants.--
                          (i) In general.--Not later than 2 
                        years after the date of enactment of 
                        this Act, the Secretary shall publish 
                        in the Federal Register, Commerce 
                        Business Daily, and such other 
                        publications as the Secretary considers 
                        to be appropriate, a notice and request 
                        for additional applications to carry 
                        out projects under the pilot program 
                        that incorporate the information and 
                        knowledge obtained through the 
                        implementation of the first round of 
                        projects authorized under the pilot 
                        program.
                          (ii) Deadline.--An application 
                        described in clause (i) shall be 
                        submitted to the Secretary by not later 
                        than 180 days after the date of 
                        publication of the notice under that 
                        clause.
                          (iii) Initial selection.--Not later 
                        than 90 days after the date by which 
                        applications for grants are due under 
                        clause (ii), the Secretary shall select 
                        by competitive, peer-reviewed proposal 
                        such additional applications for 
                        projects to be awarded a grant under 
                        the pilot program as the Secretary 
                        determines to be appropriate.
          (7) Reports to congress.--
                  (A) Initial report.--Not later than 60 days 
                after the date on which grants are awarded 
                under this subsection, the Secretary shall 
                submit to Congress a report containing--
                          (i) an identification of the grant 
                        recipients and a description of the 
                        projects to be funded under the pilot 
                        program;
                          (ii) an identification of other 
                        applicants that submitted applications 
                        for the pilot program but to which 
                        funding was not provided; and
                          (iii) a description of the mechanisms 
                        used by the Secretary to ensure that 
                        the information and knowledge gained by 
                        participants in the pilot program are 
                        transferred among the pilot program 
                        participants and to other interested 
                        parties, including other applicants 
                        that submitted applications.
                  (B) Evaluation.--Not later than 2 years after 
                the date of enactment of this Act, and annually 
                thereafter until the termination of the pilot 
                program, the Secretary shall submit to Congress 
                a report containing an evaluation of the 
                effectiveness of the pilot program, including 
                an assessment of the petroleum displacement and 
                benefits to the environment derived from the 
                projects included in the pilot program.
  (e) Restriction.--No grant shall be provided under subsection 
(b) or (c) to a large, vertically integrated oil company.
  (f) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary for carrying out this section 
$200,000,000 for each of the fiscal years 2008 through 2014.

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

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

SEC. 246. FEDERAL FLEET FUELING CENTERS.

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

SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL.

  Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended 
by redesignating subsection (s) as subsection (t), 
redesignating subsection (r) (relating to conversion assistance 
for cellulosic biomass, waste-derived ethanol, approved 
renewable fuels) as subsection (s) and by adding the following 
new subsection at the end thereof:
  ``(u) Standard Specifications for Biodiesel.--(1) Unless the 
American Society for Testing and Materials has adopted a 
standard for diesel fuel containing 20 percent biodiesel 
(commonly known as `B20') within 1 year after the date of 
enactment of this subsection, the Administrator shall initiate 
a rulemaking to establish a uniform per gallon fuel standard 
for such fuel and designate an identification number so that 
vehicle manufacturers are able to design engines to use fuel 
meeting such standard.
  ``(2) Unless the American Society for Testing and Materials 
has adopted a standard for diesel fuel containing 5 percent 
biodiesel (commonly known as `B5') within 1 year after the date 
of enactment of this subsection, the Administrator shall 
initiate a rulemaking to establish a uniform per gallon fuel 
standard for such fuel and designate an identification so that 
vehicle manufacturers are able to design engines to use fuel 
meeting such standard.
  ``(3) Whenever the Administrator is required to initiate a 
rulemaking under paragraph (1) or (2), the Administrator shall 
promulgate a final rule within 18 months after the date of the 
enactment of this subsection.
  ``(4) Not later than 180 days after the enactment of this 
subsection, the Administrator shall establish an annual 
inspection and enforcement program to ensure that diesel fuel 
containing biodiesel sold or distributed in interstate commerce 
meets the standards established under regulations under this 
section, including testing and certification for compliance 
with applicable standards of the American Society for Testing 
and Materials. There are authorized to be appropriated to carry 
out the inspection and enforcement program under this paragraph 
$3,000,000 for each of fiscal years 2008 through 2010.
  ``(5) For purposes of this subsection, the term `biodiesel' 
has the meaning provided by section 312(f) of Energy Policy Act 
of 1992 (42 U.S.C. 13220(f)).''.

SEC. 248. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS INFRASTRUCTURE.

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

                  Subtitle D--Environmental Safeguards


SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES.

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

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


                Subtitle A--Appliance Energy Efficiency


SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.

  (a) Definitions.--Section 321 of the Energy Policy and 
Conservation Act (42 U.S.C. 6291) is amended--
          (1) in paragraph (36)--
                  (A) by striking ``(36) The'' and inserting 
                the following:
          ``(36) External power supply.--
                  ``(A) In general.--The''; and
                  (B) by adding at the end the following:
                  ``(B) Active mode.--The term `active mode' 
                means the mode of operation when an external 
                power supply is connected to the main 
                electricity supply and the output is connected 
                to a load.
                  ``(C) Class a external power supply.--
                          ``(i) In general.--The term `class A 
                        external power supply' means a device 
                        that--
                                  ``(I) is designed to convert 
                                line voltage AC input into 
                                lower voltage AC or DC output;
                                  ``(II) is able to convert to 
                                only 1 AC or DC output voltage 
                                at a time;
                                  ``(III) is sold with, or 
                                intended to be used with, a 
                                separate end-use product that 
                                constitutes the primary load;
                                  ``(IV) is contained in a 
                                separate physical enclosure 
                                from the end-use product;
                                  ``(V) is connected to the 
                                end-use product via a removable 
                                or hard-wired male/female 
                                electrical connection, cable, 
                                cord, or other wiring; and
                                  ``(VI) has nameplate output 
                                power that is less than or 
                                equal to 250 watts.
                          ``(ii) Exclusions.--The term `class A 
                        external power supply' does not include 
                        any device that--
                                  ``(I) requires Federal Food 
                                and Drug Administration listing 
                                and approval as a medical 
                                device in accordance with 
                                section 513 of the Federal 
                                Food, Drug, and Cosmetic Act 
                                (21 U.S.C. 360c); or
                                  ``(II) powers the charger of 
                                a detachable battery pack or 
                                charges the battery of a 
                                product that is fully or 
                                primarily motor operated.
                  ``(D) No-load mode.--The term `no-load mode' 
                means the mode of operation when an external 
                power supply is connected to the main 
                electricity supply and the output is not 
                connected to a load.''; and
          (2) by adding at the end the following:
          ``(52) Detachable battery.--The term `detachable 
        battery' means a battery that is--
                  ``(A) contained in a separate enclosure from 
                the product; and
                  ``(B) intended to be removed or disconnected 
                from the product for recharging.''.
  (b) Test Procedures.--Section 323(b) of the Energy Policy and 
Conservation Act (42 U.S.C. 6293(b)) is amended by adding at 
the end the following:
          ``(17) Class a external power supplies.--Test 
        procedures for class A external power supplies shall be 
        based on the `Test Method for Calculating the Energy 
        Efficiency of Single-Voltage External AC-DC and AC-AC 
        Power Supplies' published by the Environmental 
        Protection Agency on August 11, 2004, except that the 
        test voltage specified in section 4(d) of that test 
        method shall be only 115 volts, 60 Hz.''.
  (c) Efficiency Standards for Class A External Power 
Supplies.--Section 325(u) of the Energy Policy and Conservation 
Act (42 U.S.C. 6295(u)) is amended by adding at the end the 
following:
          ``(6) Efficiency standards for class a external power 
        supplies.--
                  ``(A) In general.--Subject to subparagraphs 
                (B) through (D), a class A external power 
                supply manufactured on or after the later of 
                July 1, 2008, or the date of enactment of this 
                paragraph shall meet the following standards:


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

                  ``(B) Noncovered supplies.--A class A 
                external power supply shall not be subject to 
                subparagraph (A) if the class A external power 
                supply is--
                          ``(i) manufactured during the period 
                        beginning on July 1, 2008, and ending 
                        on June 30, 2015; and
                          ``(ii) made available by the 
                        manufacturer as a service part or a 
                        spare part for an end-use product--
                                  ``(I) that constitutes the 
                                primary load; and
                                  ``(II) was manufactured 
                                before July 1, 2008.
                  ``(C) Marking.--Any class A external power 
                supply manufactured on or after the later of 
                July 1, 2008 or the date of enactment of this 
                paragraph shall be clearly and permanently 
                marked in accordance with the External Power 
                Supply International Efficiency Marking 
                Protocol, as referenced in the `Energy Star 
                Program Requirements for Single Voltage 
                External AC-DC and AC-AC Power Supplies, 
                version 1.1' published by the Environmental 
                Protection Agency.
                  ``(D) Amendment of standards.--
                          ``(i) Final rule by july 1, 2011.--
                                  ``(I) In general.--Not later 
                                than July 1, 2011, the 
                                Secretary shall publish a final 
                                rule to determine whether the 
                                standards established under 
                                subparagraph (A) should be 
                                amended.
                                  ``(II) Administration.--The 
                                final rule shall--
                                          ``(aa) contain any 
                                        amended standards; and
                                          ``(bb) apply to 
                                        products manufactured 
                                        on or after July 1, 
                                        2013.
                          ``(ii) Final rule by july 1, 2015.--
                                  ``(I) In general.--Not later 
                                than July 1, 2015 the Secretary 
                                shall publish a final rule to 
                                determine whether the standards 
                                then in effect should be 
                                amended.
                                  ``(II) Administration.--The 
                                final rule shall--
                                          ``(aa) contain any 
                                        amended standards; and
                                          ``(bb) apply to 
                                        products manufactured 
                                        on or after July 1, 
                                        2017.
          ``(7) End-use products.--An energy conservation 
        standard for external power supplies shall not 
        constitute an energy conservation standard for the 
        separate end-use product to which the external power 
        supplies is connected.''.

SEC. 302. UPDATING APPLIANCE TEST PROCEDURES.

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

SEC. 303. RESIDENTIAL BOILERS.

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


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

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

SEC. 304. FURNACE FAN STANDARD PROCESS.

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

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

  (a) Consumer Appliances.--Section 325 of the Energy Policy 
and Conservation Act (42 U.S.C. 6295) is amended by striking 
subsection (m) and inserting the following:
  ``(m) Amendment of Standards.--
          ``(1) In general.--Not later than 6 years after 
        issuance of any final rule establishing or amending a 
        standard, as required for a product under this part, 
        the Secretary shall publish--
                  ``(A) a notice of the determination of the 
                Secretary that standards for the product do not 
                need to be amended, based on the criteria 
                established under subsection (n)(2); or
                  ``(B) a notice of proposed rulemaking 
                including new proposed standards based on the 
                criteria established under subsection (o) and 
                the procedures established under subsection 
                (p).
          ``(2) Notice.--If the Secretary publishes a notice 
        under paragraph (1), the Secretary shall--
                  ``(A) publish a notice stating that the 
                analysis of the Department is publicly 
                available; and
                  ``(B) provide an opportunity for written 
                comment.
          ``(3) Amendment of standard; new determination.--
                  ``(A) Amendment of standard.--Not later than 
                2 years after a notice is issued under 
                paragraph (1)(B), the Secretary shall publish a 
                final rule amending the standard for the 
                product.
                  ``(B) New determination.--Not later than 3 
                years after a determination under paragraph 
                (1)(A), the Secretary shall make a new 
                determination and publication under 
                subparagraph (A) or (B) of paragraph (1).
          ``(4) Application to products.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), an amendment prescribed under 
                this subsection shall apply to--
                          ``(i) with respect to refrigerators, 
                        refrigerator-freezers, freezers, room 
                        air conditioners, dishwashers, clothes 
                        washers, clothes dryers, fluorescent 
                        lamp ballasts, and kitchen ranges and 
                        ovens, such a product that is 
                        manufactured after the date that is 3 
                        years after publication of the final 
                        rule establishing an applicable 
                        standard; and
                          ``(ii) with respect to central air 
                        conditioners, heat pumps, water 
                        heaters, pool heaters, direct heating 
                        equipment, and furnaces, such a product 
                        that is manufactured after the date 
                        that is 5 years after publication of 
                        the final rule establishing an 
                        applicable standard.
                  ``(B) Other new standards.--A manufacturer 
                shall not be required to apply new standards to 
                a product with respect to which other new 
                standards have been required during the prior 
                6-year period.
          ``(5) Reports.--The Secretary shall promptly submit 
        to the Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate--
                  ``(A) a progress report every 180 days on 
                compliance with this section, including a 
                specific plan to remedy any failures to comply 
                with deadlines for action established under 
                this section; and
                  ``(B) all required reports to the Court or to 
                any party to the Consent Decree in State of New 
                York v Bodman, Consolidated Civil Actions No.05 
                Civ. 7807 and No.05 Civ. 7808.''.
  (b) Industrial Equipment.--Section 342(a)(6) of the Energy 
Policy and Conservation Act (42 U.S.C. 6313(a)(6)) is amended--
          (1) by redesignating subparagraph (C) as subparagraph 
        (D); and
          (2) by striking ``(6)(A)(i)'' and all that follows 
        through the end of subparagraph (B) and inserting the 
        following:
          ``(6) Amended energy efficiency standards.--
                  ``(A) In general.--
                          ``(i) Analysis of potential energy 
                        savings.--If ASHRAE/IES Standard 90.1 
                        is amended with respect to any small 
                        commercial package air conditioning and 
                        heating equipment, large commercial 
                        package air conditioning and heating 
                        equipment, very large commercial 
                        package air conditioning and heating 
                        equipment, packaged terminal air 
                        conditioners, packaged terminal heat 
                        pumps, warm-air furnaces, packaged 
                        boilers, storage water heaters, 
                        instantaneous water heaters, or unfired 
                        hot water storage tanks, not later than 
                        180 days after the amendment of the 
                        standard, the Secretary shall publish 
                        in the Federal Register for public 
                        comment an analysis of the energy 
                        savings potential of amended energy 
                        efficiency standards.
                          ``(ii) Amended uniform national 
                        standard for products.--
                                  ``(I) In general.--Except as 
                                provided in subclause (II), not 
                                later than 18 months after the 
                                date of publication of the 
                                amendment to the ASHRAE/IES 
                                Standard 90.1 for a product 
                                described in clause (i), the 
                                Secretary shall establish an 
                                amended uniform national 
                                standard for the product at the 
                                minimum level specified in the 
                                amended ASHRAE/IES Standard 
                                90.1.
                                  ``(II) More stringent 
                                standard.--Subclause (I) shall 
                                not apply if the Secretary 
                                determines, by rule published 
                                in the Federal Register, and 
                                supported by clear and 
                                convincing evidence, that 
                                adoption of a uniform national 
                                standard more stringent than 
                                the amended ASHRAE/IES Standard 
                                90.1 for the product would 
                                result in significant 
                                additional conservation of 
                                energy and is technologically 
                                feasible and economically 
                                justified.
                  ``(B) Rule.--If the Secretary makes a 
                determination described in clause (ii)(II) for 
                a product described in clause (i), not later 
                than 30 months after the date of publication of 
                the amendment to the ASHRAE/IES Standard 90.1 
                for the product, the Secretary shall issue the 
                rule establishing the amended standard.
                  ``(C) Amendment of standard.--
                          ``(i) In general.--Not later than 6 
                        years after issuance of any final rule 
                        establishing or amending a standard, as 
                        required for a product under this part, 
                        the Secretary shall publish--
                                  ``(I) a notice of the 
                                determination of the Secretary 
                                that standards for the product 
                                do not need to be amended, 
                                based on the criteria 
                                established under subparagraph 
                                (A); or
                                  ``(II) a notice of proposed 
                                rulemaking including new 
                                proposed standards based on the 
                                criteria and procedures 
                                established under subparagraph 
                                (B).
                          ``(ii) Notice.--If the Secretary 
                        publishes a notice under clause (i), 
                        the Secretary shall--
                                  ``(I) publish a notice 
                                stating that the analysis of 
                                the Department is publicly 
                                available; and
                                  ``(II) provide an opportunity 
                                for written comment.
                          ``(iii) Amendment of standard; new 
                        determination.--
                                  ``(I) Amendment of 
                                standard.--Not later than 2 
                                years after a notice is issued 
                                under clause (i)(II), the 
                                Secretary shall publish a final 
                                rule amending the standard for 
                                the product.
                                  ``(II) New determination.--
                                Not later than 3 years after a 
                                determination under clause 
                                (i)(I), the Secretary shall 
                                make a new determination and 
                                publication under subclause (I) 
                                or (II) of clause (i).
                          ``(iv) Application to products.--An 
                        amendment prescribed under this 
                        subsection shall apply to products 
                        manufactured after a date that is the 
                        later of--
                                  ``(I) the date that is 3 
                                years after publication of the 
                                final rule establishing a new 
                                standard; or
                                  ``(II) the date that is 6 
                                years after the effective date 
                                of the current standard for a 
                                covered product.
                          ``(v) Reports.--The Secretary shall 
                        promptly submit to the Committee on 
                        Energy and Commerce of the House of 
                        Representatives and the Committee on 
                        Energy and Natural Resources of the 
                        Senate a progress report every 180 days 
                        on compliance with this subparagraph, 
                        including a specific plan to remedy any 
                        failures to comply with deadlines for 
                        action established under this 
                        subparagraph.''.

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

  (a) In General.--Section 325(o) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(o)) is amended by adding at 
the end the following:
          ``(6) Regional standards for furnaces, central air 
        conditioners, and heat pumps.--
                  ``(A) In general.--In any rulemaking to 
                establish a new or amended standard, the 
                Secretary may consider the establishment of 
                separate standards by geographic region for 
                furnaces (except boilers), central air 
                conditioners, and heat pumps.
                  ``(B) National and regional standards.--
                          ``(i) National standard.--If the 
                        Secretary establishes a regional 
                        standard for a product, the Secretary 
                        shall establish a base national 
                        standard for the product.
                          ``(ii) Regional standards.--If the 
                        Secretary establishes a regional 
                        standard for a product, the Secretary 
                        may establish more restrictive 
                        standards for the product by geographic 
                        region as follows:
                                  ``(I) For furnaces, the 
                                Secretary may establish 1 
                                additional standard that is 
                                applicable in a geographic 
                                region defined by the 
                                Secretary.
                                  ``(II) For any cooling 
                                product, the Secretary may 
                                establish 1 or 2 additional 
                                standards that are applicable 
                                in 1 or 2 geographic regions as 
                                may be defined by the 
                                Secretary.
                  ``(C) Boundaries of geographic regions.--
                          ``(i) In general.--Subject to clause 
                        (ii), the boundaries of additional 
                        geographic regions established by the 
                        Secretary under this paragraph shall 
                        include only contiguous States.
                          ``(ii) Alaska and hawaii.--The States 
                        of Alaska and Hawaii may be included 
                        under this paragraph in a geographic 
                        region that the States are not 
                        contiguous to.
                          ``(iii) Individual states.--
                        Individual States shall be placed only 
                        into a single region under this 
                        paragraph.
                  ``(D) Prerequisites.--In establishing 
                additional regional standards under this 
                paragraph, the Secretary shall--
                          ``(i) establish additional regional 
                        standards only if the Secretary 
                        determines that--
                                  ``(I) the establishment of 
                                additional regional standards 
                                will produce significant energy 
                                savings in comparison to 
                                establishing only a single 
                                national standard; and
                                  ``(II) the additional 
                                regional standards are 
                                economically justified under 
                                this paragraph; and
                          ``(ii) consider the impact of the 
                        additional regional standards on 
                        consumers, manufacturers, and other 
                        market participants, including product 
                        distributors, dealers, contractors, and 
                        installers.
                  ``(E) Application; effective date.--
                          ``(i) Base national standard.--Any 
                        base national standard established for 
                        a product under this paragraph shall--
                                  ``(I) be the minimum standard 
                                for the product; and
                                  ``(II) apply to all products 
                                manufactured or imported into 
                                the United States on and after 
                                the effective date for the 
                                standard.
                          ``(ii) Regional standards.--Any 
                        additional and more restrictive 
                        regional standard established for a 
                        product under this paragraph shall 
                        apply to any such product installed on 
                        or after the effective date of the 
                        standard in States in which the 
                        Secretary has designated the standard 
                        to apply.
                  ``(F) Continuation of regional standards.--
                          ``(i) In general.--In any subsequent 
                        rulemaking for any product for which a 
                        regional standard has been previously 
                        established, the Secretary shall 
                        determine whether to continue the 
                        establishment of separate regional 
                        standards for the product.
                          ``(ii) Regional standard no longer 
                        appropriate.--Except as provided in 
                        clause (iii), if the Secretary 
                        determines that regional standards are 
                        no longer appropriate for a product, 
                        beginning on the effective date of the 
                        amended standard for the product--
                                  ``(I) there shall be 1 base 
                                national standard for the 
                                product with Federal 
                                enforcement; and
                                  ``(II) State authority for 
                                enforcing a regional standard 
                                for the product shall 
                                terminate.
                          ``(iii) Regional standard appropriate 
                        but standard or region changed.--
                                  ``(I) State no longer 
                                contained in region.--Subject 
                                to subclause (III), if a State 
                                is no longer contained in a 
                                region in which a regional 
                                standard that is more stringent 
                                than the base national standard 
                                applies, the authority of the 
                                State to enforce the regional 
                                standard shall terminate.
                                  ``(II) Standard or region 
                                revised so that existing 
                                regional standard equals base 
                                national standard.--If the 
                                Secretary revises a base 
                                national standard for a product 
                                or the geographic definition of 
                                a region so that an existing 
                                regional standard for a State 
                                is equal to the revised base 
                                national standard--
                                          ``(aa) the authority 
                                        of the State to enforce 
                                        the regional standard 
                                        shall terminate on the 
                                        effective date of the 
                                        revised base national 
                                        standard; and
                                          ``(bb) the State 
                                        shall be subject to the 
                                        revised base national 
                                        standard.
                                  ``(III) Standard or region 
                                revised so that existing 
                                regional standard equals base 
                                national standard.--If the 
                                Secretary revises a base 
                                national standard for a product 
                                or the geographic definition of 
                                a region so that the standard 
                                for a State is lower than the 
                                previously approved regional 
                                standard, the State may 
                                continue to enforce the 
                                previously approved standard 
                                level.
                          ``(iv) Waiver of federal 
                        preemption.--Nothing in this paragraph 
                        diminishes the authority of a State to 
                        enforce a State regulation for which a 
                        waiver of Federal preemption has been 
                        granted under section 327(d).
                  ``(G) Enforcement.--
                          ``(i) Base national standard.--
                                  ``(I) In general.--The 
                                Secretary shall enforce any 
                                base national standard.
                                  ``(II) Trade association 
                                certification programs.--In 
                                enforcing the base national 
                                standard, the Secretary shall 
                                use, to the maximum extent 
                                practicable, national standard 
                                nationally recognized 
                                certification programs of trade 
                                associations.
                          ``(ii) Regional standards.--
                                  ``(I) Enforcement plan.--Not 
                                later than 90 days after the 
                                date of the issuance of a final 
                                rule that establishes a 
                                regional standard, the 
                                Secretary shall initiate a 
                                rulemaking to develop and 
                                implement an effective 
                                enforcement plan for regional 
                                standards for the products that 
                                are covered by the final rule.
                                  ``(II) Responsible 
                                entities.--Any rules regarding 
                                enforcement of a regional 
                                standard shall clearly specify 
                                which entities are legally 
                                responsible for compliance with 
                                the standards and for making 
                                any required information or 
                                labeling disclosures.
                                  ``(III) Final rule.--Not 
                                later than 15 months after the 
                                date of the issuance of a final 
                                rule that establishes a 
                                regional standard for a 
                                product, the Secretary shall 
                                promulgate a final rule 
                                covering enforcement of 
                                regional standards for the 
                                product.
                                  ``(IV) Incorporation by 
                                states and localities.--A State 
                                or locality may incorporate any 
                                Federal regional standard into 
                                State or local building codes 
                                or State appliance standards.
                                  ``(V) State enforcement.--A 
                                State agency may seek 
                                enforcement of a Federal 
                                regional standard in a Federal 
                                court of competent 
                                jurisdiction.
                  ``(H) Information disclosure.--
                          ``(i) In general.--Not later than 90 
                        days after the date of the publication 
                        of a final rule that establishes a 
                        regional standard for a product, the 
                        Federal Trade Commission shall 
                        undertake a rulemaking to determine the 
                        appropriate 1 or more methods for 
                        disclosing information so that 
                        consumers, distributors, contractors, 
                        and installers can easily determine 
                        whether a specific piece of equipment 
                        that is installed in a specific 
                        building is in conformance with the 
                        regional standard that applies to the 
                        building.
                          ``(ii) Methods.--A method of 
                        disclosing information under clause (i) 
                        may include--
                                  ``(I) modifications to the 
                                Energy Guide label; or
                                  ``(II) other methods that 
                                make it easy for consumers and 
                                installers to use and 
                                understand at the point of 
                                installation.
                          ``(iii) Completion of rulemaking.--
                        The rulemaking shall be completed not 
                        later 15 months after the date of the 
                        publication of a final rule that 
                        establishes a regional standard for a 
                        product.''.
  (b) Prohibited Acts.--Section 332(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6302(a)) is amended--
          (1) in paragraph (4), by striking ``or'' after the 
        semicolon at the end;
          (2) in paragraph (5), by striking ``part.'' and 
        inserting ``part, except to the extent that the new 
        covered product is covered by a regional standard that 
        is more stringent than the base national standard; 
        or''; and
          (3) by adding at the end the following:
          ``(6) for any manufacturer or private labeler to 
        knowingly sell a product to a distributor, contractor, 
        or dealer with knowledge that the entity routinely 
        violates any regional standard applicable to the 
        product.''.
  (c) Consideration of Prices and Operating Patterns.--Section 
342(a)(6)(B) of the Energy Policy and Conservation Act (42 
U.S.C. 6313(a)(6)(B)) is amended by adding at the end the 
following:
                          ``(iii) Consideration of prices and 
                        operating patterns.--If the Secretary 
                        is considering revised standards for 
                        air-cooled 3-phase central air 
                        conditioners and central air 
                        conditioning heat pumps with less 
                        65,000 Btu per hour (cooling capacity), 
                        the Secretary shall use commercial 
                        energy prices and operating patterns in 
                        all analyses conducted by the 
                        Secretary.''.

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

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

SEC. 308. EXPEDITED RULEMAKINGS.

  (a) Procedure for Prescribing New or Amended Standards.--
Section 325(p) of the Energy Policy and Conservation Act (42 
U.S.C. 6295(p)) (as amended by section 307) is amended by 
adding at the end the following:
          ``(4) Direct final rules.--
                  ``(A) In general.--On receipt of a statement 
                that is submitted jointly by interested persons 
                that are fairly representative of relevant 
                points of view (including representatives of 
                manufacturers of covered products, States, and 
                efficiency advocates), as determined by the 
                Secretary, and contains recommendations with 
                respect to an energy or water conservation 
                standard--
                          ``(i) if the Secretary determines 
                        that the recommended standard contained 
                        in the statement is in accordance with 
                        subsection (o) or section 342(a)(6)(B), 
                        as applicable, the Secretary may issue 
                        a final rule that establishes an energy 
                        or water conservation standard and is 
                        published simultaneously with a notice 
                        of proposed rulemaking that proposes a 
                        new or amended energy or water 
                        conservation standard that is identical 
                        to the standard established in the 
                        final rule to establish the recommended 
                        standard (referred to in this paragraph 
                        as a `direct final rule'); or
                          ``(ii) if the Secretary determines 
                        that a direct final rule cannot be 
                        issued based on the statement, the 
                        Secretary shall publish a notice of the 
                        determination, together with an 
                        explanation of the reasons for the 
                        determination.
                  ``(B) Public comment.--The Secretary shall 
                solicit public comment for a period of at least 
                110 days with respect to each direct final rule 
                issued by the Secretary under subparagraph 
                (A)(i).
                  ``(C) Withdrawal of direct final rules.--
                          ``(i) In general.--Not later than 120 
                        days after the date on which a direct 
                        final rule issued under subparagraph 
                        (A)(i) is published in the Federal 
                        Register, the Secretary shall withdraw 
                        the direct final rule if--
                                  ``(I) the Secretary receives 
                                1 or more adverse public 
                                comments relating to the direct 
                                final rule under subparagraph 
                                (B)(i) or any alternative joint 
                                recommendation; and
                                  ``(II) based on the 
                                rulemaking record relating to 
                                the direct final rule, the 
                                Secretary determines that such 
                                adverse public comments or 
                                alternative joint 
                                recommendation may provide a 
                                reasonable basis for 
                                withdrawing the direct final 
                                rule under subsection (o), 
                                section 342(a)(6)(B), or any 
                                other applicable law.
                          ``(ii) Action on withdrawal.--On 
                        withdrawal of a direct final rule under 
                        clause (i), the Secretary shall--
                                  ``(I) proceed with the notice 
                                of proposed rulemaking 
                                published simultaneously with 
                                the direct final rule as 
                                described in subparagraph 
                                (A)(i); and
                                  ``(II) publish in the Federal 
                                Register the reasons why the 
                                direct final rule was 
                                withdrawn.
                          ``(iii) Treatment of withdrawn direct 
                        final rules.--A direct final rule that 
                        is withdrawn under clause (i) shall not 
                        be considered to be a final rule for 
                        purposes of subsection (o).
                  ``(D) Effect of paragraph.--Nothing in this 
                paragraph authorizes the Secretary to issue a 
                direct final rule based solely on receipt of 
                more than 1 statement containing recommended 
                standards relating to the direct final rule.''.
  (b) Conforming Amendment.--Section 345(b)(1) of the Energy 
Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended 
in the first sentence by inserting ``section 325(p)(5),'' after 
``The provisions of''.

SEC. 309. BATTERY CHARGERS.

  Section 325(u)(1)(E) of the Energy Policy and Conservation 
Act (42 U.S.C. 6295(u)(1)(E)) is amended--
          (1) by striking ``(E)(i) Not'' and inserting the 
        following:
                  ``(E) External power supplies and battery 
                chargers.--
                          ``(i) Energy conservation 
                        standards.--
                                  ``(I) External power 
                                supplies.--Not'';
          (2) by striking ``3 years'' and inserting ``2 
        years'';
          (3) by striking ``battery chargers and'' each place 
        it appears; and
          (4) by adding at the end the following :
                                  ``(II) Battery chargers.--Not 
                                later than July 1, 2011, the 
                                Secretary shall issue a final 
                                rule that prescribes energy 
                                conservation standards for 
                                battery chargers or classes of 
                                battery chargers or determine 
                                that no energy conservation 
                                standard is technically 
                                feasible and economically 
                                justified.''.

SEC. 310. STANDBY MODE.

  Section 325 of the Energy Policy and Conservation Act (42 
U.S.C. 6295) is amended--
          (1) in subsection (u)--
                  (A) by striking paragraphs (2), (3), and (4); 
                and
                  (B) by redesignating paragraph (5) and (6) as 
                paragraphs (2) and (3), respectively;
          (2) by redesignating subsection (gg) as subsection 
        (hh);
          (3) by inserting after subsection (ff) the following:
  ``(gg) Standby Mode Energy Use.--
          ``(1) Definitions.--
                  ``(A) In general.--Unless the Secretary 
                determines otherwise pursuant to subparagraph 
                (B), in this subsection:
                          ``(i) Active mode.--The term `active 
                        mode' means the condition in which an 
                        energy-using product--
                                  ``(I) is connected to a main 
                                power source;
                                  ``(II) has been activated; 
                                and
                                  ``(III) provides 1 or more 
                                main functions.
                          ``(ii) Off mode.--The term `off mode' 
                        means the condition in which an energy-
                        using product--
                                  ``(I) is connected to a main 
                                power source; and
                                  ``(II) is not providing any 
                                standby or active mode 
                                function.
                          ``(iii) Standby mode.--The term 
                        `standby mode' means the condition in 
                        which an energy-using product--
                                  ``(I) is connected to a main 
                                power source; and
                                  ``(II) offers 1 or more of 
                                the following user-oriented or 
                                protective functions:
                                          ``(aa) To facilitate 
                                        the activation or 
                                        deactivation of other 
                                        functions (including 
                                        active mode) by remote 
                                        switch (including 
                                        remote control), 
                                        internal sensor, or 
                                        timer.
                                          ``(bb) Continuous 
                                        functions, including 
                                        information or status 
                                        displays (including 
                                        clocks) or sensor-based 
                                        functions.
                  ``(B) Amended definitions.--The Secretary 
                may, by rule, amend the definitions under 
                subparagraph (A), taking into consideration the 
                most current versions of Standards 62301 and 
                62087 of the International Electrotechnical 
                Commission.
          ``(2) Test procedures.--
                  ``(A) In general.--Test procedures for all 
                covered products shall be amended pursuant to 
                section 323 to include standby mode and off 
                mode energy consumption, taking into 
                consideration the most current versions of 
                Standards 62301 and 62087 of the International 
                Electrotechnical Commission, with such energy 
                consumption integrated into the overall energy 
                efficiency, energy consumption, or other energy 
                descriptor for each covered product, unless the 
                Secretary determines that--
                          ``(i) the current test procedures for 
                        a covered product already fully account 
                        for and incorporate the standby mode 
                        and off mode energy consumption of the 
                        covered product; or
                          ``(ii) such an integrated test 
                        procedure is technically infeasible for 
                        a particular covered product, in which 
                        case the Secretary shall prescribe a 
                        separate standby mode and off mode 
                        energy use test procedure for the 
                        covered product, if technically 
                        feasible.
                  ``(B) Deadlines.--The test procedure 
                amendments required by subparagraph (A) shall 
                be prescribed in a final rule no later than the 
                following dates:
                          ``(i) December 31, 2008, for battery 
                        chargers and external power supplies.
                          ``(ii) March 31, 2009, for clothes 
                        dryers, room air conditioners, and 
                        fluorescent lamp ballasts.
                          ``(iii) June 30, 2009, for 
                        residential clothes washers.
                          ``(iv) September 30, 2009, for 
                        residential furnaces and boilers.
                          ``(v) March 31, 2010, for residential 
                        water heaters, direct heating 
                        equipment, and pool heaters.
                          ``(vi) March 31, 2011, for 
                        residential dishwashers, ranges and 
                        ovens, microwave ovens, and 
                        dehumidifiers.
                  ``(C) Prior product standards.--The test 
                procedure amendments adopted pursuant to 
                subparagraph (B) shall not be used to determine 
                compliance with product standards established 
                prior to the adoption of the amended test 
                procedures.
          ``(3) Incorporation into standard.--
                  ``(A) In general.--Subject to subparagraph 
                (B), based on the test procedures required 
                under paragraph (2), any final rule 
                establishing or revising a standard for a 
                covered product, adopted after July 1, 2010, 
                shall incorporate standby mode and off mode 
                energy use into a single amended or new 
                standard, pursuant to subsection (o), if 
                feasible.
                  ``(B) Separate standards.--If not feasible, 
                the Secretary shall prescribe within the final 
                rule a separate standard for standby mode and 
                off mode energy consumption, if justified under 
                subsection (o).''; and
          (4) in paragraph (2) of subsection (hh) (as 
        redesignated by paragraph (2)) , by striking ``(ff)'' 
        each place it appears and inserting ``(gg)''.

SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES.

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





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

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

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

  (a) Definitions.--Section 340 of the Energy Policy and 
Conservation Act (42 U.S.C. 6311) is amended--
          (1) in paragraph (1)--
                  (A) by redesignating subparagraphs (G) 
                through (K) as subparagraphs (H) through (L), 
                respectively; and
                  (B) by inserting after subparagraph (F) the 
                following:
                  ``(G) Walk-in coolers and walk-in 
                freezers.'';
          (2) by redesignating paragraphs (20) and (21) as 
        paragraphs (21) and (22), respectively; and
          (3) by inserting after paragraph (19) the following:
          ``(20) Walk-in cooler; walk-in freezer.--
                  ``(A) In general.--The terms `walk-in cooler' 
                and `walk-in freezer' mean an enclosed storage 
                space refrigerated to temperatures, 
                respectively, above, and at or below 32 degrees 
                Fahrenheit that can be walked into, and has a 
                total chilled storage area of less than 3,000 
                square feet.
                  ``(B) Exclusion.--The terms `walk-in cooler' 
                and `walk-in freezer' do not include products 
                designed and marketed exclusively for medical, 
                scientific, or research purposes.''.
  (b) Standards.--Section 342 of the Energy Policy and 
Conservation Act (42 U.S.C. 6313) is amended by adding at the 
end the following:
  ``(f) Walk-in Coolers and Walk-in Freezers.--
          ``(1) In general.--Subject to paragraphs (2) through 
        (5), each walk-in cooler or walk-in freezer 
        manufactured on or after January 1, 2009, shall--
                  ``(A) have automatic door closers that firmly 
                close all walk-in doors that have been closed 
                to within 1 inch of full closure, except that 
                this subparagraph shall not apply to doors 
                wider than 3 feet 9 inches or taller than 7 
                feet;
                  ``(B) have strip doors, spring hinged doors, 
                or other method of minimizing infiltration when 
                doors are open;
                  ``(C) contain wall, ceiling, and door 
                insulation of at least R-25 for coolers and R-
                32 for freezers, except that this subparagraph 
                shall not apply to glazed portions of doors nor 
                to structural members;
                  ``(D) contain floor insulation of at least R-
                28 for freezers;
                  ``(E) for evaporator fan motors of under 1 
                horsepower and less than 460 volts, use--
                          ``(i) electronically commutated 
                        motors (brushless direct current 
                        motors); or
                          ``(ii) 3-phase motors;
                  ``(F) for condenser fan motors of under 1 
                horsepower, use--
                          ``(i) electronically commutated 
                        motors;
                          ``(ii) permanent split capacitor-type 
                        motors; or
                          ``(iii) 3-phase motors; and
                  ``(G) for all interior lights, use light 
                sources with an efficacy of 40 lumens per watt 
                or more, including ballast losses (if any), 
                except that light sources with an efficacy of 
                40 lumens per watt or less, including ballast 
                losses (if any), may be used in conjunction 
                with a timer or device that turns off the 
                lights within 15 minutes of when the walk-in 
                cooler or walk-in freezer is not occupied by 
                people.
          ``(2) Electronically commutated motors.--
                  ``(A) In general.--The requirements of 
                paragraph (1)(E)(i) for electronically 
                commutated motors shall take effect January 1, 
                2009, unless, prior to that date, the Secretary 
                determines that such motors are only available 
                from 1 manufacturer.
                  ``(B) Other types of motors.--In carrying out 
                paragraph (1)(E)(i) and subparagraph (A), the 
                Secretary may allow other types of motors if 
                the Secretary determines that, on average, 
                those other motors use no more energy in 
                evaporator fan applications than electronically 
                commutated motors.
                  ``(C) Maximum energy consumption level.--The 
                Secretary shall establish the maximum energy 
                consumption level under subparagraph (B) not 
                later than January 1, 2010.
          ``(3) Additional specifications.--Each walk-in cooler 
        or walk-in freezer with transparent reach-in doors 
        manufactured on or after January 1, 2009, shall also 
        meet the following specifications:
                  ``(A) Transparent reach-in doors for walk-in 
                freezers and windows in walk-in freezer doors 
                shall be of triple-pane glass with either heat-
                reflective treated glass or gas fill.
                  ``(B) Transparent reach-in doors for walk-in 
                coolers and windows in walk-in cooler doors 
                shall be--
                          ``(i) double-pane glass with heat-
                        reflective treated glass and gas fill; 
                        or
                          ``(ii) triple-pane glass with either 
                        heat-reflective treated glass or gas 
                        fill.
                  ``(C) If the appliance has an antisweat 
                heater without antisweat heat controls, the 
                appliance shall have a total door rail, glass, 
                and frame heater power draw of not more than 
                7.1 watts per square foot of door opening (for 
                freezers) and 3.0 watts per square foot of door 
                opening (for coolers).
                  ``(D) If the appliance has an antisweat 
                heater with antisweat heat controls, and the 
                total door rail, glass, and frame heater power 
                draw is more than 7.1 watts per square foot of 
                door opening (for freezers) and 3.0 watts per 
                square foot of door opening (for coolers), the 
                antisweat heat controls shall reduce the energy 
                use of the antisweat heater in a quantity 
                corresponding to the relative humidity in the 
                air outside the door or to the condensation on 
                the inner glass pane.
          ``(4) Performance-based standards.--
                  ``(A) In general.--Not later than January 1, 
                2012, the Secretary shall publish performance-
                based standards for walk-in coolers and walk-in 
                freezers that achieve the maximum improvement 
                in energy that the Secretary determines is 
                technologically feasible and economically 
                justified.
                  ``(B) Application.--
                          ``(i) In general.--Except as provided 
                        in clause (ii), the standards shall 
                        apply to products described in 
                        subparagraph (A) that are manufactured 
                        beginning on the date that is 3 years 
                        after the final rule is published.
                          ``(ii) Delayed effective date.--If 
                        the Secretary determines, by rule, that 
                        a 3-year period is inadequate, the 
                        Secretary may establish an effective 
                        date for products manufactured 
                        beginning on the date that is not more 
                        than 5 years after the date of 
                        publication of a final rule for the 
                        products.
          ``(5) Amendment of standards.--
                  ``(A) In general.--Not later than January 1, 
                2020, the Secretary shall publish a final rule 
                to determine if the standards established under 
                paragraph (4) should be amended.
                  ``(B) Application.--
                          ``(i) In general.--Except as provided 
                        in clause (ii), the rule shall provide 
                        that the standards shall apply to 
                        products manufactured beginning on the 
                        date that is 3 years after the final 
                        rule is published.
                          ``(ii) Delayed effective date.--If 
                        the Secretary determines, by rule, that 
                        a 3-year period is inadequate, the 
                        Secretary may establish an effective 
                        date for products manufactured 
                        beginning on the date that is not more 
                        than 5 years after the date of 
                        publication of a final rule for the 
                        products.''.
  (c) Test Procedures.--Section 343(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6314(a)) is amended by adding at 
the end the following:
          ``(9) Walk-in coolers and walk-in freezers.--
                  ``(A) In general.--For the purpose of test 
                procedures for walk-in coolers and walk-in 
                freezers:
                          ``(i) The R value shall be the 1/K 
                        factor multiplied by the thickness of 
                        the panel.
                          ``(ii) The K factor shall be based on 
                        ASTM test procedure C518-2004.
                          ``(iii) For calculating the R value 
                        for freezers, the K factor of the foam 
                        at 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.
                          ``(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.
  (b) Definition of Fluorescent Lamp.--Section 321(30)(B)(viii) 
of the Energy Policy and Conservation Act (42 U.S.C. 
6291(30)(B)(viii)) is amended by striking ``82'' and inserting 
``87''.
  (c) Mercury Vapor Lamp Ballasts.--
          (1) Definitions.--Section 321 of the Energy Policy 
        and Conservation Act (42 U.S.C. 6291) (as amended by 
        section 301(a)(2)) is amended--
                  (A) by striking paragraphs (46) through (48) 
                and inserting the following:
          ``(46) High intensity discharge lamp.--
                  ``(A) In general.--The term `high intensity 
                discharge lamp' means an electric-discharge 
                lamp in which--
                          ``(i) the light-producing arc is 
                        stabilized by the arc tube wall 
                        temperature; and
                          ``(ii) the arc tube wall loading is 
                        in excess of 3 Watts/cm\2\.
                  ``(B) Inclusions.--The term `high intensity 
                discharge lamp' includes mercury vapor, metal 
                halide, and high-pressure sodium lamps 
                described in subparagraph (A).
          ``(47) Mercury vapor lamp.--
                  ``(A) In general.--The term `mercury vapor 
                lamp' means a high intensity discharge lamp in 
                which the major portion of the light is 
                produced by radiation from mercury typically 
                operating at a partial vapor pressure in excess 
                of 100,000 Pa (approximately 1 atm).
                  ``(B) Inclusions.--The term `mercury vapor 
                lamp' includes clear, phosphor-coated, and 
                self-ballasted screw base lamps described in 
                subparagraph (A).
          ``(48) Mercury vapor lamp ballast.--The term `mercury 
        vapor lamp ballast' means a device that is designed and 
        marketed to start and operate mercury vapor lamps 
        intended for general illumination by providing the 
        necessary voltage and current.''; and
                  (B) by adding at the end the following:
          ``(53) Specialty application mercury vapor lamp 
        ballast.--The term `specialty application mercury vapor 
        lamp ballast' means a mercury vapor lamp ballast that--
                  ``(A) is designed and marketed for operation 
                of mercury vapor lamps used in quality 
                inspection, industrial processing, or 
                scientific use, including fluorescent 
                microscopy and ultraviolet curing; and
                  ``(B) in the case of a specialty application 
                mercury vapor lamp ballast, the label of 
                which--
                          ``(i) provides that the specialty 
                        application mercury vapor lamp ballast 
                        is `For specialty applications only, 
                        not for general illumination'; and
                          ``(ii) specifies the specific 
                        applications for which the ballast is 
                        designed.''.
          (2) Standard setting authority.--Section 325(ee) of 
        the Energy Policy and Conservation Act (42 U.S.C. 
        6295(ee)) is amended by inserting ``(other than 
        specialty application mercury vapor lamp ballasts)'' 
        after ``ballasts''.
  (d) Energy Conservation Standards.--Section 325 of the Energy 
Policy and Conservation Act (42 U.S.C. 6295) is amended--
          (1) in subsection (v)--
                  (A) in the subsection heading, by striking 
                ``Ceiling Fans and'';
                  (B) by striking paragraph (1); and
                  (C) by redesignating paragraphs (2) through 
                (4) as paragraphs (1) through (3), 
                respectively; and
          (2) in subsection (ff)--
                  (A) in paragraph (1)(A)--
                          (i) by striking clause (iii);
                          (ii) by redesignating clause (iv) as 
                        clause (iii); and
                          (iii) in clause (iii)(II) (as so 
                        redesignated), by inserting ``fans sold 
                        for'' before ``outdoor''; and
                  (B) in paragraph (4)(C)--
                          (i) in the matter preceding clause 
                        (i), by striking ``subparagraph (B)'' 
                        and inserting ``subparagraph (A)''; and
                          (ii) by striking clause (ii) and 
                        inserting the following:
          ``(ii) shall be packaged with lamps to fill all 
        sockets.'';
                  (C) in paragraph (6), by redesignating 
                subparagraphs (C) and (D) as clauses (i) and 
                (ii), respectively, of subparagraph (B); and
                  (D) in paragraph (7), by striking ``327'' the 
                second place it appears and inserting ``324''.

                 Subtitle B--Lighting Energy Efficiency


SEC. 321. EFFICIENT LIGHT BULBS.

  (a) Energy Efficiency Standards for General Service 
Incandescent Lamps.--
          (1) Definition of general service incandescent 
        lamp.--Section 321(30) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6291(30)) is amended--
                  (A) by striking subparagraph (D) and 
                inserting the following:
                  ``(D) General service incandescent lamp.--
                          ``(i) In general.--The term `general 
                        service incandescent lamp' means a 
                        standard incandescent or halogen type 
                        lamp that--
                                  ``(I) is intended for general 
                                service applications;
                                  ``(II) has a medium screw 
                                base;
                                  ``(III) has a lumen range of 
                                not less than 310 lumens and 
                                not more than 2,600 lumens; and
                                  ``(IV) is capable of being 
                                operated at a voltage range at 
                                least partially within 110 and 
                                130 volts.
                          ``(ii) Exclusions.--The term `general 
                        service incandescent lamp' does not 
                        include the following incandescent 
                        lamps:
                                  ``(I) An appliance lamp.
                                  ``(II) A black light lamp.
                                  ``(III) A bug lamp.
                                  ``(IV) A colored lamp.
                                  ``(V) An infrared lamp.
                                  ``(VI) A left-hand thread 
                                lamp.
                                  ``(VII) A marine lamp.
                                  ``(VIII) A marine signal 
                                service lamp.
                                  ``(IX) A mine service lamp.
                                  ``(X) A plant light lamp.
                                  ``(XI) A reflector lamp.
                                  ``(XII) A rough service lamp.
                                  ``(XIII) A shatter-resistant 
                                lamp (including a shatter-proof 
                                lamp and a shatter-protected 
                                lamp).
                                  ``(XIV) A sign service lamp.
                                  ``(XV) A silver bowl lamp.
                                  ``(XVI) A showcase lamp.
                                  ``(XVII) A 3-way incandescent 
                                lamp.
                                  ``(XVIII) A traffic signal 
                                lamp.
                                  ``(XIX) A vibration service 
                                lamp.
                                  ``(XX) A G shape lamp (as 
                                defined in ANSI C78.20 -2003 
                                andC79.1-2002with a diameter of 
                                5 inches or more.
                                  ``(XXI) A T shape lamp (as 
                                defined in ANSIC78.20-2003 and 
                                C79.1-2002) and that uses not 
                                more than 40 watts or has a 
                                length of more than 10 inches.
                                  ``(XXII) A B, BA, CA, F, G16-
                                1/2,G-25,G30, S, or M-14 lamp 
                                (as defined in ANSI C79.1-2002 
                                and ANSI C78.20-2003) of 40 
                                watts or less.''; and
                  (B) by adding at the end the following:
                  ``(T) Appliance lamp.--The term `appliance 
                lamp' means any lamp that--
                          ``(i) is specifically designed to 
                        operate in a household appliance, has a 
                        maximum wattage of 40 watts, and is 
                        sold at retail, including an oven lamp, 
                        refrigerator lamp, and vacuum cleaner 
                        lamp; and
                          ``(ii) is designated and marketed for 
                        the intended application, with--
                                  ``(I) the designation on the 
                                lamp packaging; and
                                  ``(II) marketing materials 
                                that identify the lamp as being 
                                for appliance use.
                  ``(U) Candelabra base incandescent lamp.--The 
                term `candelabra base incandescent lamp' means 
                a lamp that uses candelabra screw base as 
                described in ANSI C81.61-2006, Specifications 
                for Electric Bases, common designations E11 and 
                E12.
                  ``(V) Intermediate base incandescent lamp.--
                The term `intermediate base incandescent lamp' 
                means a lamp that uses an intermediate screw 
                base as described in ANSI C81.61-2006, 
                Specifications for Electric Bases, common 
                designation E17.
                  ``(W) Modified spectrum.--The term `modified 
                spectrum' means, with respect to an 
                incandescent lamp, an incandescent lamp that--
                          ``(i) is not a colored incandescent 
                        lamp; and
                          ``(ii) when operated at the rated 
                        voltage and wattage of the incandescent 
                        lamp--
                                  ``(I) has a color point with 
                                (x,y) chromaticity coordinates 
                                on the Commission 
                                Internationale de l'Eclairage 
                                (C.I.E.) 1931 chromaticity 
                                diagram that lies below the 
                                black-body locus; and
                                  ``(II) has a color point with 
                                (x,y) chromaticity coordinates 
                                on the C.I.E. 1931 chromaticity 
                                diagram that lies at least 4 
                                MacAdam steps (as referenced in 
                                IESNA LM16) distant from the 
                                color point of a clear lamp 
                                with the same filament and bulb 
                                shape, operated at the same 
                                rated voltage and wattage.
                  ``(X) Rough service lamp.--The term `rough 
                service lamp' means a lamp that--
                          ``(i) has a minimum of 5 supports 
                        with filament configurations that are 
                        C-7A, C-11, C-17, and C-22 as listed in 
                        Figure 6-12 of the 9th edition of the 
                        IESNA Lighting handbook, or similar 
                        configurations where lead wires are not 
                        counted as supports; and
                          ``(ii) is designated and marketed 
                        specifically for `rough service' 
                        applications, with--
                                  ``(I) the designation 
                                appearing on the lamp 
                                packaging; and
                                  ``(II) marketing materials 
                                that identify the lamp as being 
                                for rough service.
                  ``(Y) 3-way incandescent lamp.--The term `3-
                way incandescent lamp' includes an incandescent 
                lamp that--
                          ``(i) employs 2 filaments, operated 
                        separately and in combination, to 
                        provide 3 light levels; and
                          ``(ii) is designated on the lamp 
                        packaging and marketing materials as 
                        being a 3-way incandescent lamp.
                  ``(Z) Shatter-resistant lamp, shatter-proof 
                lamp, or shatter-protected lamp.--The terms 
                `shatter-resistant lamp', `shatter-proof lamp', 
                and `shatter-protected lamp' mean a lamp that--
                          ``(i) has a coating or equivalent 
                        technology that is compliant with NSF/
                        ANSI 51 and is designed to contain the 
                        glass if the glass envelope of the lamp 
                        is broken; and
                          ``(ii) is designated and marketed for 
                        the intended application, with--
                                  ``(I) the designation on the 
                                lamp packaging; and
                                  ``(II) marketing materials 
                                that identify the lamp as being 
                                shatter-resistant, shatter-
                                proof, or shatter-protected.
                  ``(AA) Vibration service lamp.--The term 
                `vibration service lamp' means a lamp that--
                          ``(i) has filament configurations 
                        that are C-5, C-7A, or C-9, as listed 
                        in Figure 6-12 of the 9th Edition of 
                        the IESNA Lighting Handbook or similar 
                        configurations;
                          ``(ii) has a maximum wattage of 60 
                        watts;
                          ``(iii) is sold at retail in packages 
                        of 2 lamps or less; and
                          ``(iv) is designated and marketed 
                        specifically for vibration service or 
                        vibration-resistant applications, 
                        with--
                                  ``(I) the designation 
                                appearing on the lamp 
                                packaging; and
                                  ``(II) marketing materials 
                                that identify the lamp as being 
                                vibration service only.
                  ``(BB) General service lamp.--
                          ``(i) In general.--The term `general 
                        service lamp' includes--
                                  ``(I) general service 
                                incandescent lamps;
                                  ``(II) compact fluorescent 
                                lamps;
                                  ``(III) general service 
                                light-emitting diode (LED or 
                                OLED) lamps; and
                                  ``(IV) any other lamps that 
                                the Secretary determines are 
                                used to satisfy lighting 
                                applications traditionally 
                                served by general service 
                                incandescent lamps.
                          ``(ii) Exclusions.--The term `general 
                        service lamp' does not include--
                                  ``(I) any lighting 
                                application or bulb shape 
                                described in any of subclauses 
                                (I) through (XXII) of 
                                subparagraph (D)(ii); or
                                  ``(II) any general service 
                                fluorescent lamp or 
                                incandescent reflector lamp.
                  ``(CC) Light-emitting diode; led.--
                          ``(i) In general.--The terms `light-
                        emitting diode' and `LED' means a p-n 
                        junction solid state device the 
                        radiated output of which is a function 
                        of the physical construction, material 
                        used, and exciting current of the 
                        device.
                          ``(ii) Output.--The output of a 
                        light-emitting diode may be in--
                                  ``(I) the infrared region;
                                  ``(II) the visible region; or
                                  ``(III) the ultraviolet 
                                region.
                  ``(DD) Organic light-emitting diode; oled.--
                The terms `organic light-emitting diode' and 
                `OLED' mean a thin-film light-emitting device 
                that typically consists of a series of organic 
                layers between 2 electrical contacts 
                (electrodes).
                  ``(EE) Colored incandescent lamp.--The term 
                `colored incandescent lamp' means an 
                incandescent lamp designated and marketed as a 
                colored lamp that has--
                          ``(i) a color rendering index of less 
                        than 50, as determined according to the 
                        test method given in C.I.E. publication 
                        13.3-1995; or
                          ``(ii) a correlated color temperature 
                        of less than 2,500K, or greater than 
                        4,600K, where correlated temperature is 
                        computed according to the Journal of 
                        Optical Society of America, Vol. 58, 
                        pages 1528-1595 (1986).''.
          (2) Coverage.--Section 322(a)(14) of the Energy 
        Policy and Conservation Act (42 U.S.C. 6292(a)(14)) is 
        amended by inserting ``, general service incandescent 
        lamps,'' after ``fluorescent lamps''.
          (3) Energy conservation standards.--Section 325 of 
        the Energy Policy and Conservation Act (42 U.S.C. 6295) 
        is amended--
                  (A) in subsection (i)--
                          (i) in the section heading, by 
                        inserting ``, General Service 
                        Incandescent Lamps, Intermediate Base 
                        Incandescent Lamps, Candelabra Base 
                        Incandescent Lamps,'' after 
                        ``Fluorescent Lamps'';
                          (ii) in paragraph (1)--
                                  (I) in subparagraph (A)--
                                          (aa) by inserting ``, 
                                        general service 
                                        incandescent lamps, 
                                        intermediate base 
                                        incandescent lamps, 
                                        candelabra base 
                                        incandescent lamps,'' 
                                        after ``fluorescent 
                                        lamps'';
                                          (bb) by inserting ``, 
                                        new maximum wattage,'' 
                                        after ``lamp 
                                        efficacy''; and
                                          (cc) by inserting 
                                        after the table 
                                        entitled ``incandescent 
                                        reflector lamps'' the 
                                        following:


                  ``GENERAL SERVICE INCANDESCENT LAMPS
------------------------------------------------------------------------
                                             Minimum Rate    Effective
 Rated Lumen Ranges   Maximum Rate 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
------------------------------------------------------------------------
                                             Minimum Rate    Effective
 Rated Lumen Ranges   Maximum Rate 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.
                  ``(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 
                        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 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 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.--
                          ``(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\o\ 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.
          (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 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;
                  (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.
                  ``(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.
          ``(10) Funding and implementation.--
                  ``(A) Authorization of appropriations.--There 
                are authorized to be appropriated such sums as 
                are necessary to carry out this subsection.
                  ``(B) Funding options.--
                          ``(i) In general.--To carry out this 
                        subsection, a Federal agency may use 
                        any combination of--
                                  ``(I) appropriated funds made 
                                available under subparagraph 
                                (A); and
                                  ``(II) private financing 
                                otherwise authorized under 
                                Federal law, including 
                                financing available through 
                                energy savings performance 
                                contracts or utility energy 
                                service contracts.
                          ``(ii) Combined funding for same 
                        measure.--A Federal agency may use any 
                        combination of appropriated funds and 
                        private financing described in clause 
                        (i) to carry out the same measure under 
                        this subsection.
                  ``(C) Implementation.--Each Federal agency 
                may implement the requirements under this 
                subsection itself or may contract out 
                performance of some or all of the requirements.
          ``(11) Rule of construction.--This subsection shall 
        not be construed to require or to obviate any 
        contractor savings guarantees.''.

SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.

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

``Fiscal Year                                      Percentage Reduction 
    2010......................................................       55 
    2015......................................................       65 
    2020......................................................       80 
    2025......................................................       90 
    2030......................................................       100
                  ``(II) Upon petition by an agency subject to 
                this subparagraph, the Secretary may adjust the 
                applicable numeric requirement under subclause 
                (I) downward with respect to a specific 
                building, if the head of the agency designing 
                the building certifies in writing that meeting 
                such requirement would be technically 
                impracticable in light of the agency's 
                specified functional needs for that building 
                and the Secretary concurs with the agency's 
                conclusion. This subclause shall not apply to 
                the General Services Administration.
                  ``(III) Sustainable design principles shall 
                be applied to the siting, design, and 
                construction of such buildings. Not later than 
                90 days after the date of enactment of the 
                Energy Independence and Security Act of 2007, 
                the Secretary, after reviewing the findings of 
                the Federal Director under section 436(h) of 
                that Act, in consultation with the 
                Administrator of General Services, and in 
                consultation with the Secretary of Defense for 
                considerations relating to those facilities 
                under the custody and control of the Department 
                of Defense, shall identify a certification 
                system and level for green buildings that the 
                Secretary determines to be the most likely to 
                encourage a comprehensive and environmentally-
                sound approach to certification of green 
                buildings. The identification of the 
                certification system and level shall be based 
                on a review of the Federal Director's findings 
                under section 436(h) of the Energy Independence 
                and Security Act of 2007 and the criteria 
                specified in clause (iii), shall identify the 
                highest level the Secretary determines is 
                appropriate above the minimum level required 
                for certification under the system selected, 
                and shall achieve results at least comparable 
                to the system used by and highest level 
                referenced by the General Services 
                Administration as of the date of enactment of 
                the Energy Independence and Security Act of 
                2007. Within 90 days of the completion of each 
                study required by clause (iv), the Secretary, 
                in consultation with the Administrator of 
                General Services, and in consultation with the 
                Secretary of Defense for considerations 
                relating to those facilities under the custody 
                and control of the Department of Defense, shall 
                review and update the certification system and 
                level, taking into account the conclusions of 
                such study.
          ``(ii) In establishing criteria for identifying major 
        renovations that are subject to the requirements of 
        this subparagraph, the Secretary shall take into 
        account the scope, degree, and types of renovations 
        that are likely to provide significant opportunities 
        for substantial improvements in energy efficiency.
          ``(iii) In identifying the green building 
        certification system and level, the Secretary shall 
        take into consideration--
                  ``(I) the ability and availability of 
                assessors and auditors to independently verify 
                the criteria and measurement of metrics at the 
                scale necessary to implement this subparagraph;
                  ``(II) the ability of the applicable 
                certification organization to collect and 
                reflect public comment;
                  ``(III) the ability of the standard to be 
                developed and revised through a consensus-based 
                process;
                  ``(IV) an evaluation of the robustness of the 
                criteria for a high-performance green building, 
                which shall give credit for promoting--
                          ``(aa) efficient and sustainable use 
                        of water, energy, and other natural 
                        resources;
                          ``(bb) use of renewable energy 
                        sources;
                          ``(cc) improved indoor environmental 
                        quality through enhanced indoor air 
                        quality, thermal comfort, acoustics, 
                        day lighting, pollutant source control, 
                        and use of low-emission materials and 
                        building system controls; and
                          ``(dd) such other criteria as the 
                        Secretary determines to be appropriate; 
                        and
                  ``(V) national recognition within the 
                building industry.
          ``(iv) At least once every five years, and in 
        accordance with section 436 of the Energy Independence 
        and Security Act of 2007, the Administrator of General 
        Services shall conduct a study to evaluate and compare 
        available third-party green building certification 
        systems and levels, taking into account the criteria 
        listed in clause (iii).
          ``(v) The Secretary may by rule allow Federal 
        agencies to develop internal certification processes, 
        using certified professionals, in lieu of certification 
        by the certification entity identified under clause 
        (i)(III). The Secretary shall include in any such rule 
        guidelines to ensure that the certification process 
        results in buildings meeting the applicable 
        certification system and level identified under clause 
        (i)(III). An agency employing an internal certification 
        process must continue to obtain external certification 
        by the certification entity identified under clause 
        (i)(III) for at least 5 percent of the total number of 
        buildings certified annually by the agency.
          ``(vi) With respect to privatized military housing, 
        the Secretary of Defense, after consultation with the 
        Secretary may, through rulemaking, develop alternative 
        criteria to those established by subclauses (I) and 
        (III) of clause (i) that achieve an equivalent result 
        in terms of energy savings, sustainable design, and 
        green building performance.
          ``(vii) In addition to any use of water conservation 
        technologies otherwise required by this section, water 
        conservation technologies shall be applied to the 
        extent that the technologies are life-cycle cost-
        effective.''.
  (b) Definitions.--Section 303(6) of the Energy Conservation 
and Production Act (42 U.S.C. 6832(6)) is amended by striking 
``which is not legally subject to State or local building codes 
or similar requirements.'' and inserting ``. Such term shall 
include buildings built for the purpose of being leased by a 
Federal agency, and privatized military housing.''.
  (c) Revision of Federal Acquisition Regulation.--Not later 
than 2 years after the date of the enactment of this Act, the 
Federal Acquisition Regulation shall be revised to require 
Federal officers and employees to comply with this section and 
the amendments made by this section in the acquisition, 
construction, or major renovation of any facility. The members 
of the Federal Acquisition Regulatory Council (established 
under section 25 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 421)) shall consult with the Federal Director 
and the Commercial Director before promulgating regulations to 
carry out this subsection.
  (d) Guidance.--Not later than 90 days after the date of 
promulgation of the revised regulations under subsection (c), 
the Administrator for Federal Procurement Policy shall issue 
guidance to all Federal procurement executives providing 
direction and instructions to renegotiate the design of 
proposed facilities and major renovations for existing 
facilities to incorporate improvements that are consistent with 
this section.

SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY .

  (a) Large Capital Energy Investments.--Section 543 of the 
National Energy Conservation Policy Act (42 U.S.C. 8253) is 
amended by adding at the end the following:
  ``(f) Large Capital Energy Investments.--
          ``(1) In general.--Each Federal agency shall ensure 
        that any large capital energy investment in an existing 
        building that is not a major renovation but involves 
        replacement of installed equipment (such as heating and 
        cooling systems), or involves renovation, 
        rehabilitation, expansion, or remodeling of existing 
        space, employs the most energy efficient designs, 
        systems, equipment, and controls that are life-cycle 
        cost effective.
          ``(2) Process for review of investment decisions.--
        Not later than 180 days after the date of enactment of 
        this subsection, each Federal agency shall--
                  ``(A) develop a process for reviewing each 
                decision made on a large capital energy 
                investment described in paragraph (1) to ensure 
                that the requirements of this subsection are 
                met; and
                  ``(B) report to the Director of the Office of 
                Management and Budget on the process 
                established.
          ``(3) Compliance report.--Not later than 1 year after 
        the date of enactment of this subsection, the Director 
        of the Office of Management and Budget shall evaluate 
        and report to Congress on the compliance of each agency 
        with this subsection.''.
  (b) Metering.--Section 543(e)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(e)(1)) is amended by 
inserting after the second sentence the following: ``Not later 
than October 1, 2016, each agency shall provide for equivalent 
metering of natural gas and steam, in accordance with 
guidelines established by the Secretary under paragraph (2).''.

SEC. 435. LEASING.

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

SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.

  (a) Establishment of Office.--Not later than 60 days after 
the date of enactment of this Act, the Administrator shall 
establish within the General Services Administration an Office 
of Federal High-Performance Green Buildings, and appoint an 
individual to serve as Federal Director in, a position in the 
career-reserved Senior Executive service, to--
          (1) establish and manage the Office of Federal High-
        Performance Green Buildings; and
          (2) carry out other duties as required under this 
        subtitle.
  (b) Compensation.--The compensation of the Federal Director 
shall not exceed the maximum rate of basic pay for the Senior 
Executive Service under section 5382 of title 5, United States 
Code, including any applicable locality-based comparability 
payment that may be authorized under section 5304(h)(2)(C) of 
that title.
  (c) Duties.--The Federal Director shall--
          (1) coordinate the activities of the Office of 
        Federal High-Performance Green Buildings with the 
        activities of the Office of Commercial High-Performance 
        Green Buildings, and the Secretary, in accordance with 
        section 305(a)(3)(D) of the Energy Conservation and 
        Production Act (42 U.S.C. 6834(a)(3)(D));
          (2) ensure full coordination of high-performance 
        green building information and activities within the 
        General Services Administration and all relevant 
        agencies, including, at a minimum--
                  (A) the Environmental Protection Agency;
                  (B) the Office of the Federal Environmental 
                Executive;
                  (C) the Office of Federal Procurement Policy;
                  (D) the Department of Energy;
                  (E) the Department of Health and Human 
                Services;
                  (F) the Department of Defense;
                  (G) the Department of Transportation;
                  (H) the National Institute of Standards and 
                Technology; and
                  (I) the Office of Science and Technology 
                Policy;
          (3) establish a senior-level Federal Green Building 
        Advisory Committee under section 474, which shall 
        provide advice and recommendations in accordance with 
        that section and subsection (d);
          (4) identify and every 5 years reassess improved or 
        higher rating standards recommended by the Advisory 
        Committee;
          (5) ensure full coordination, dissemination of 
        information regarding, and promotion of the results of 
        research and development information relating to 
        Federal high-performance green building initiatives;
          (6) identify and develop Federal high-performance 
        green building standards for all types of Federal 
        facilities, consistent with the requirements of this 
        subtitle and section 305(a)(3)(D) of the Energy 
        Conservation and Production Act (42 U.S.C. 
        6834(a)(3)(D));
          (7) establish green practices that can be used 
        throughout the life of a Federal facility;
          (8) review and analyze current Federal budget 
        practices and life-cycle costing issues, and make 
        recommendations to Congress, in accordance with 
        subsection (d); and
          (9) identify opportunities to demonstrate innovative 
        and emerging green building technologies and concepts.
  (d) Additional Duties.--The Federal Director, in consultation 
with the Commercial Director and the Advisory Committee, and 
consistent with the requirements of section 305(a)(3)(D) of the 
Energy Conservation and Production Act (42 U.S.C. 
6834(a)(3)(D)) shall--
          (1) identify, review, and analyze current budget and 
        contracting practices that affect achievement of high-
        performance green buildings, including the 
        identification of barriers to high-performance green 
        building life-cycle costing and budgetary issues;
          (2) develop guidance and conduct training sessions 
        with budget specialists and contracting personnel from 
        Federal agencies and budget examiners to apply life-
        cycle cost criteria to actual projects;
          (3) identify tools to aid life-cycle cost 
        decisionmaking; and
          (4) explore the feasibility of incorporating the 
        benefits of high-performance green buildings, such as 
        security benefits, into a cost-budget analysis to aid 
        in life-cycle costing for budget and decisionmaking 
        processes.
  (e) Incentives.--Within 90 days after the date of enactment 
of this Act, the Federal Director shall identify incentives to 
encourage the expedited use of high-performance green buildings 
and related technology in the operations of the Federal 
Government, in accordance with the requirements of section 
305(a)(3)(D) of the Energy Conservation and Production Act (42 
U.S.C. 6834(a)(3)(D)), including through--
          (1) the provision of recognition awards; and
          (2) the maximum feasible retention of financial 
        savings in the annual budgets of Federal agencies for 
        use in reinvesting in future high-performance green 
        building initiatives.
  (f) Report.--Not later than 2 years after the date of 
enactment of this Act, and biennially thereafter, the Federal 
Director, in consultation with the Secretary, shall submit to 
Congress a report that--
          (1) describes the status of compliance with this 
        subtitle, the requirements of section 305(a)(3)(D) of 
        the Energy Conservation and Production Act (42 U.S.C. 
        6834(a)(3)(D)), and other Federal high-performance 
        green building initiatives in effect as of the date of 
        the report, including--
                  (A) the extent to which the programs are 
                being carried out in accordance with this 
                subtitle and the requirements of section 
                305(a)(3)(D) of that Act; and
                  (B) the status of funding requests and 
                appropriations for those programs;
          (2) identifies within the planning, budgeting, and 
        construction process all types of Federal facility 
        procedures that may affect the certification of new and 
        existing Federal facilities as high-performance green 
        buildings under the provisions of section 305(a)(3)(D) 
        of that Act and the criteria established in subsection 
        (h);
          (3) identifies inconsistencies, as reported to the 
        Advisory Committee, in Federal law with respect to 
        product acquisition guidelines and high-performance 
        product guidelines;
          (4) recommends language for uniform standards for use 
        by Federal agencies in environmentally responsible 
        acquisition;
          (5) in coordination with the Office of Management and 
        Budget, reviews the budget process for capital programs 
        with respect to alternatives for--
                  (A) restructuring of budgets to require the 
                use of complete energy and environmental cost 
                accounting;
                  (B) using operations expenditures in budget-
                related decisions while simultaneously 
                incorporating productivity and health measures 
                (as those measures can be quantified by the 
                Office of Federal High-Performance Green 
                Buildings, with the assistance of universities 
                and national laboratories);
                  (C) streamlining measures for permitting 
                Federal agencies to retain all identified 
                savings accrued as a result of the use of life-
                cycle costing for future high-performance green 
                building initiatives; and
                  (D) identifying short-term and long-term cost 
                savings that accrue from high-performance green 
                buildings, including those relating to health 
                and productivity;
          (6) identifies green, self-sustaining technologies to 
        address the operational needs of Federal facilities in 
        times of national security emergencies, natural 
        disasters, or other dire emergencies;
          (7) summarizes and highlights development, at the 
        State and local level, of high-performance green 
        building initiatives, including executive orders, 
        policies, or laws adopted promoting high-performance 
        green building (including the status of implementation 
        of those initiatives); and
          (8) includes, for the 2-year period covered by the 
        report, recommendations to address each of the matters, 
        and a plan for implementation of each recommendation, 
        described in paragraphs (1) through (7).
  (g) Implementation.--The Office of Federal High-Performance 
Green Buildings shall carry out each plan for implementation of 
recommendations under subsection (f)(8).
  (h) Identification of Certification System.--
          (1) In general.--For the purpose of this section, not 
        later than 60 days after the date of enactment of this 
        Act, the Federal Director shall identify and shall 
        provide to the Secretary pursuant to section 
        305(a)(3)(D) of the Energy Conservation and Production 
        Act (42 U.S.C. 6834(a)(3)(D)), a certification system 
        that the Director determines to be the most likely to 
        encourage a comprehensive and environmentally-sound 
        approach to certification of green buildings.
          (2) Basis.--The system identified under paragraph (1) 
        shall be based on--
                  (A) a study completed every 5 years and 
                provided to the Secretary pursuant to section 
                305(a)(3)(D) of that Act, which shall be 
                carried out by the Federal Director to compare 
                and evaluate standards;
                  (B) the ability and availability of assessors 
                and auditors to independently verify the 
                criteria and measurement of metrics at the 
                scale necessary to implement this subtitle;
                  (C) the ability of the applicable standard-
                setting organization to collect and reflect 
                public comment;
                  (D) the ability of the standard to be 
                developed and revised through a consensus-based 
                process;
                  (E) an evaluation of the robustness of the 
                criteria for a high performance green building, 
                which shall give credit for promoting--
                          (i) efficient and sustainable use of 
                        water, energy, and other natural 
                        resources;
                          (ii) use of renewable energy sources;
                          (iii) improved indoor environmental 
                        quality through enhanced indoor air 
                        quality, thermal comfort, acoustics, 
                        day lighting, pollutant source control, 
                        and use of low-emission materials and 
                        building system controls;
                          (iv) reduced impacts from 
                        transportation through building 
                        location and site design that promote 
                        access by public transportation; and
                          (v) such other criteria as the 
                        Federal Director determines to be 
                        appropriate; and
                  (F) national recognition within the building 
                industry.

SEC. 437. FEDERAL GREEN BUILDING PERFORMANCE.

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

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

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

SEC. 439. COST-EFFECTIVE TECHNOLOGY ACCELERATION PROGRAM.

  (a) Definition of Administrator.--In this section, the term 
``Administrator'' means the Administrator of General Services.
  (b) Establishment.--
          (1) In general.--The Administrator shall establish a 
        program to accelerate the use of more cost-effective 
        technologies and practices at GSA facilities.
          (2) Requirements.--The program established under this 
        subsection shall--
                  (A) ensure centralized responsibility for the 
                coordination of cost reduction-related 
                recommendations, practices, and activities of 
                all relevant Federal agencies;
                  (B) provide technical assistance and 
                operational guidance to applicable tenants to 
                achieve the goal identified in subsection 
                (c)(2)(B)(ii);
                  (C) establish methods to track the success of 
                Federal departments and agencies with respect 
                to that goal; and
                  (D) be fully coordinated with and no less 
                stringent nor less energy-conserving or water-
                conserving than required by other provisions of 
                this Act and other applicable law, including 
                sections 321 through 324, 431 through 438, 461, 
                511 through 518, and 523 through 525 and 
                amendments made by those sections.
  (c) Accelerated Use of Technologies.--
          (1) Review.--
                  (A) In general.--As part of the program under 
                this section, not later than 90 days after the 
                date of enactment of this Act, the 
                Administrator shall conduct a review of--
                          (i) current use of cost-effective 
                        lighting technologies and geothermal 
                        heat pumps in GSA facilities; and
                          (ii) the availability to managers of 
                        GSA facilities of cost-effective 
                        lighting technologies and geothermal 
                        heat pumps.
                  (B) Requirements.--The review under 
                subparagraph (A) shall--
                          (i) examine the use of cost-effective 
                        lighting technologies, geothermal heat 
                        pumps, and other cost-effective 
                        technologies and practices by Federal 
                        agencies in GSA facilities; and
                          (ii) as prepared in consultation with 
                        the Administrator of the Environmental 
                        Protection Agency, identify cost-
                        effective lighting technology and 
                        geothermal heat pump technology 
                        standards that could be used for all 
                        types of GSA facilities.
          (2) Replacement.--
                  (A) In general.--As part of the program under 
                this section, not later than 180 days after the 
                date of enactment of this Act, the 
                Administrator shall establish, using available 
                appropriations and programs implementing 
                sections 432 and 525 (and amendments made by 
                those sections), a cost-effective lighting 
                technology and geothermal heat pump technology 
                acceleration program to achieve maximum 
                feasible replacement of existing lighting, 
                heating, cooling technologies with cost-
                effective lighting technologies and geothermal 
                heat pump technologies in each GSA facility. 
                Such program shall fully comply with the 
                requirements of sections 321 through 324, 431 
                through 438, 461, 511 through 518, and 523 
                through 525 and amendments made by those 
                sections and any other provisions of law, which 
                shall be applicable to the extent that they are 
                more stringent or would achieve greater energy 
                savings than required by this section.
                  (B) Acceleration plan timetable.--
                          (i) In general.--To implement the 
                        program established under subparagraph 
                        (A), not later than 1 year after the 
                        date of enactment of this Act, the 
                        Administrator shall establish a 
                        timetable of actions to comply with the 
                        requirements of this section and 
                        sections 431 through 435, whichever 
                        achieves greater energy savings most 
                        expeditiously, including milestones for 
                        specific activities needed to replace 
                        existing lighting, heating, cooling 
                        technologies with cost-effective 
                        lighting technologies and geothermal 
                        heat pump technologies, to the maximum 
                        extent feasible (including at the 
                        maximum rate feasible), at each GSA 
                        facility.
                          (ii) Goal.--The goal of the timetable 
                        under clause (i) shall be to complete, 
                        using available appropriations and 
                        programs implementing sections 431 
                        through 435 (and amendments made by 
                        those sections), maximum feasible 
                        replacement of existing lighting, 
                        heating, and cooling technologies with 
                        cost-effective lighting technologies 
                        and geothermal heat pump technologies 
                        consistent with the requirements of 
                        this section and sections 431 through 
                        435, whichever achieves greater energy 
                        savings most expeditiously. 
                        Notwithstanding any provision of this 
                        section, such program shall fully 
                        comply with the requirements of the Act 
                        including sections 321 through 324, 431 
                        through 438, 461, 511 through 518, and 
                        523 through 525 and amendments made by 
                        those sections and other provisions of 
                        law, which shall be applicable to the 
                        extent that they are more stringent or 
                        would achieve greater energy or water 
                        savings than required by this section.
  (d) GSA Facility Technologies and Practices.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, and annually thereafter, 
        the Administrator shall--
                  (A) ensure that a manager responsible for 
                implementing section 432 and for accelerating 
                the use of cost-effective technologies and 
                practices is designated for each GSA facility; 
                and
                  (B) submit to Congress a plan to comply with 
                section 432, this section, and other applicable 
                provisions of this Act and applicable law with 
                respect to energy and water conservation at GSA 
                facilities.
          (2) Measures.--The plan shall implement measures 
        required by such other provisions of law in accordance 
        with those provisions, and shall implement the measures 
        required by this section to the maximum extent feasible 
        (including at the maximum rate feasible) using 
        available appropriations and programs implementing 
        sections 431 through 435 and 525 (and amendments made 
        by those sections), by not later than the date that is 
        5 years after the date of enactment of this Act.
          (3) Contents of plan.--The plan shall--
                  (A) with respect to cost-effective 
                technologies and practices--
                          (i) identify the specific activities 
                        needed to comply with sections 431 
                        through 435;
                          (ii) identify the specific activities 
                        needed to achieve at least a 20-percent 
                        reduction in operational costs through 
                        the application of cost-effective 
                        technologies and practices from 2003 
                        levels at GSA facilities by not later 
                        than 5 years after the date of 
                        enactment of this Act;
                          (iii) describe activities required 
                        and carried out to estimate the funds 
                        necessary to achieve the reduction 
                        described in clauses (i) and (ii);
                  (B) include an estimate of the funds 
                necessary to carry out this section;
                  (C) describe the status of the implementation 
                of cost-effective technologies and practices at 
                GSA facilities, including--
                          (i) the extent to which programs, 
                        including the program established under 
                        subsection (b), are being carried out 
                        in accordance with this subtitle; and
                          (ii) the status of funding requests 
                        and appropriations for those programs;
                  (D) identify within the planning, budgeting, 
                and construction processes, all types of GSA 
                facility-related procedures that inhibit new 
                and existing GSA facilities from implementing 
                cost-effective technologies;
                  (E) recommend language for uniform standards 
                for use by Federal agencies in implementing 
                cost-effective technologies and practices;
                  (F) in coordination with the Office of 
                Management and Budget, review the budget 
                process for capital programs with respect to 
                alternatives for--
                          (i) implementing measures that will 
                        assure that Federal agencies retain all 
                        identified savings accrued as a result 
                        of the use of cost-effective 
                        technologies, consistent with section 
                        543(a)(1) of the National Energy 
                        Conservation Policy Act (42 U.S.C. 
                        8253(a)(1), and other applicable law; 
                        and
                          (ii) identifying short- and long-term 
                        cost savings that accrue from the use 
                        of cost-effective technologies and 
                        practices;
                  (G) with respect to cost-effective 
                technologies and practices, achieve substantial 
                operational cost savings through the 
                application of the technologies; and
                  (H) include recommendations to address each 
                of the matters, and a plan for implementation 
                of each recommendation, described in 
                subparagraphs (A) through (G).
          (4) Administration.--Notwithstanding any provision of 
        this section, the program required under this section 
        shall fully comply with the requirements of sections 
        321 through 324, 431 through 438, 461, 511 through 518, 
        and 523 through 525 and amendments made by those 
        sections, which shall be applicable to the extent that 
        they are more stringent or would achieve greater energy 
        or water savings than required by this section.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section, to remain available until expended.

SEC. 440. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.

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

                Subtitle D--Industrial Energy Efficiency


SEC. 451. INDUSTRIAL ENERGY EFFICIENCY.

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

                 ``PART E--INDUSTRIAL ENERGY EFFICIENCY

``SEC. 371. DEFINITIONS.

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

``SEC. 372. SURVEY AND REGISTRY.

  ``(a) Recoverable Waste Energy Inventory Program.--
          ``(1) In general.--The Administrator, in cooperation 
        with the Secretary and State energy offices, shall 
        establish a recoverable waste energy inventory program.
          ``(2) Survey.--The program shall include--
                  ``(A) an ongoing survey of all major 
                industrial and large commercial combustion 
                sources in the United States (as defined by the 
                Administrator) and the sites at which the 
                sources are located; and
                  ``(B) a review of each source for the 
                quantity and quality of waste energy produced 
                at the source.
  ``(b) Criteria.--
          ``(1) In general.--Not later than 270 days after the 
        date of enactment of the Energy Independence and 
        Security Act of 2007, the Administrator shall publish a 
        rule for establishing criteria for including sites in 
        the Registry.
          ``(2) Inclusions.--The criteria shall include--
                  ``(A) a requirement that, to be included in 
                the Registry, a project at the site shall be 
                determined to be economically feasible by 
                virtue of offering a payback of invested costs 
                not later than 5 years after the date of first 
                full project operation (including incentives 
                offered under this part);
                  ``(B) standards to ensure that projects 
                proposed for inclusion in the Registry are not 
                developed or used for the primary purpose of 
                making sales of excess electric power under the 
                regulatory provisions of this part; and
                  ``(C) procedures for contesting the listing 
                of any source or site on the Registry by any 
                State, utility, or other interested person.
  ``(c) Technical Support.--On the request of the owner or 
operator of a source or site included in the Registry, the 
Secretary shall--
          ``(1) provide to owners or operators of combustion 
        sources technical support; and
          ``(2) offer partial funding (in an amount equal to 
        not more than \1/2\ of total costs) for feasibility 
        studies to confirm whether or not investment in 
        recovery of waste energy or combined heat and power at 
        a source would offer a payback period of 5 years or 
        less.
  ``(d) Registry.--
          ``(1) Establishment.--
                  ``(A) In general.--Not later than 1 year 
                after the date of enactment of the Energy 
                Independence and Security Act of 2007, the 
                Administrator shall establish a Registry of 
                Recoverable Waste Energy Sources, and sites on 
                which the sources are located, that meet the 
                criteria established under subsection (b).
                  ``(B) Updates; availability.--The 
                Administrator shall--
                          ``(i) update the Registry on a 
                        regular basis; and
                          ``(ii) make the Registry available to 
                        the public on the website of the 
                        Environmental Protection Agency.
                  ``(C) Contesting listing.--Any State, 
                electric utility, or other interested person 
                may contest the listing of any source or site 
                by submitting a petition to the Administrator.
          ``(2) Contents.--
                  ``(A) In general.--The Administrator shall 
                register and include on the Registry all sites 
                meeting the criteria established under 
                subsection (b).
                  ``(B) Quantity of recoverable waste energy.--
                The Administrator shall--
                          ``(i) calculate the total quantities 
                        of potentially recoverable waste energy 
                        from sources at the sites, nationally 
                        and by State; and
                          ``(ii) make public--
                                  ``(I) the total quantities 
                                described in clause (i); and
                                  ``(II) information on the 
                                criteria pollutant and 
                                greenhouse gas emissions 
                                savings that might be achieved 
                                with recovery of the waste 
                                energy from all sources and 
                                sites listed on the Registry.
          ``(3) Availability of information.--
                  ``(A) In general.--The Administrator shall 
                notify owners or operators of recoverable waste 
                energy sources and sites listed on the Registry 
                prior to publishing the listing.
                  ``(B) Detailed quantitative information.--
                          ``(i) In general.--Except as provided 
                        in clause (ii), the owner or operator 
                        of a source at a site may elect to have 
                        detailed quantitative information 
                        concerning the site not made public by 
                        notifying the Administrator of the 
                        election.
                          ``(ii) Limited availability.--The 
                        information shall be made available 
                        to--
                                  ``(I) the applicable State 
                                energy office; and
                                  ``(II) any utility requested 
                                to support recovery of waste 
                                energy from the source pursuant 
                                to the incentives provided 
                                under section 374.
                          ``(iii) State totals.--Information 
                        concerning the site shall be included 
                        in the total quantity of recoverable 
                        waste energy for a State unless there 
                        are fewer than 3 sites in the State.
          ``(4) Removal of projects from registry.--
                  ``(A) In general.--Subject to subparagraph 
                (B), as a project achieves successful recovery 
                of waste energy, the Administrator shall--
                          ``(i) remove the related sites or 
                        sources from the Registry; and
                          ``(ii) designate the removed projects 
                        as eligible for incentives under 
                        section 374.
                  ``(B) Limitation.--No project shall be 
                removed from the Registry without the consent 
                of the owner or operator of the project if--
                          ``(i) the owner or operator has 
                        submitted a petition under section 374; 
                        and
                          ``(ii) the petition has not been 
                        acted on or denied.
          ``(5) Ineligibility of certain sources.--The 
        Administrator shall not list any source constructed 
        after the date of the enactment of the Energy 
        Independence and Security Act of 2007 on the Registry 
        if the Administrator determines that the source--
                  ``(A) was developed for the primary purpose 
                of making sales of excess electric power under 
                the regulatory provisions of this part; or
                  ``(B) does not capture at least 60 percent of 
                the total energy value of the fuels used (on a 
                higher-heating-value basis) in the form of 
                useful thermal energy, electricity, mechanical 
                energy, chemical output, or any combination 
                thereof.
  ``(e) Self-Certification.--
          ``(1) In general.--Subject to any procedures that are 
        established by the Administrator, an owner, operator, 
        or third-party developer of a recoverable waste energy 
        project that qualifies under standards established by 
        the Administrator may self-certify the sites or sources 
        of the owner, operator, or developer to the 
        Administrator for inclusion in the Registry.
          ``(2) Review and approval.--To prevent a fraudulent 
        listing, a site or source shall be included on the 
        Registry only if the Administrator reviews and approves 
        the self-certification.
  ``(f) New Facilities.--As a new energy-consuming industrial 
facility is developed after the date of enactment of the Energy 
Independence and Security Act of 2007, to the extent the 
facility may constitute a site with recoverable waste energy 
that may qualify for inclusion on the Registry, the 
Administrator may elect to include the facility on the 
Registry, at the request of the owner, operator, or developer 
of the facility, on a conditional basis with the site to be 
removed from the Registry if the development ceases or the site 
fails to qualify for listing under this part.
  ``(g) Optimum Means of Recovery.--For each site listed in the 
Registry, at the request of the owner or operator of the site, 
the Administrator shall offer, in cooperation with Clean Energy 
Application Centers operated by the Secretary of Energy, 
suggestions for optimum means of recovery of value from waste 
energy stream in the form of electricity, useful thermal 
energy, or other energy-related products.
  ``(h) Revision.--Each annual report of a State under section 
548(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8258(a)) shall include the results of the survey for the 
State under this section.
  ``(i) Authorization of Appropriations.--There are authorized 
to be appropriated to--
          ``(1) the Administrator to create and maintain the 
        Registry and services authorized by this section, 
        $1,000,000 for each of fiscal years 2008 through 2012; 
        and
          ``(2) the Secretary--
                  ``(A) to assist site or source owners and 
                operators in determining the feasibility of 
                projects authorized by this section, $2,000,000 
                for each of fiscal years 2008 through 2012; and
                  ``(B) to provide funding for State energy 
                office functions under this section, 
                $5,000,000.

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

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

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

  ``(a) Consideration of Standard.--
          ``(1) In general.--Not later than 180 days after the 
        receipt by a State regulatory authority (with respect 
        to each electric utility for which the authority has 
        ratemaking authority), or nonregulated electric 
        utility, of a request from a project sponsor or owner 
        or operator, the State regulatory authority or 
        nonregulated electric utility shall--
                  ``(A) provide public notice and conduct a 
                hearing respecting the standard established by 
                subsection (b); and
                  ``(B) on the basis of the hearing, consider 
                and make a determination whether or not it is 
                appropriate to implement the standard to carry 
                out the purposes of this part.
          ``(2) Relationship to state law.--For purposes of any 
        determination under paragraph (1) and any review of the 
        determination in any court, the purposes of this 
        section supplement otherwise applicable State law.
          ``(3) Nonadoption of standard.--Nothing in this part 
        prohibits any State regulatory authority or 
        nonregulated electric utility from making any 
        determination that it is not appropriate to adopt any 
        standard described in paragraph (1), pursuant to 
        authority under otherwise applicable State law.
  ``(b) Standard for Sales of Excess Power.--For purposes of 
this section, the standard referred to in subsection (a) shall 
provide that an owner or operator of a waste energy recovery 
project identified on the Registry that generates net excess 
power shall be eligible to benefit from at least 1 of the 
options described in subsection (c) for disposal of the net 
excess power in accordance with the rate conditions and 
limitations described in subsection (d).
  ``(c) Options.--The options referred to in subsection (b) are 
as follows:
          ``(1) Sale of net excess power to utility.--The 
        electric utility shall purchase the net excess power 
        from the owner or operator of the eligible waste energy 
        recovery project during the operation of the project 
        under a contract entered into for that purpose.
          ``(2) Transport by utility for direct sale to third 
        party.--The electric utility shall transmit the net 
        excess power on behalf of the project owner or operator 
        to up to 3 separate locations on the system of the 
        utility for direct sale by the owner or operator to 
        third parties at those locations.
          ``(3) Transport over private transmission lines.--The 
        State and the electric utility shall permit, and shall 
        waive or modify such laws as would otherwise prohibit, 
        the construction and operation of private electric 
        wires constructed, owned, and operated by the project 
        owner or operator, to transport the power to up to 3 
        purchasers within a 3-mile radius of the project, 
        allowing the wires to use or cross public rights-of-
        way, without subjecting the project to regulation as a 
        public utility, and according the wires the same 
        treatment for safety, zoning, land use, and other legal 
        privileges as apply or would apply to the wires of the 
        utility, except that--
                  ``(A) there shall be no grant of any power of 
                eminent domain to take or cross private 
                property for the wires; and
                  ``(B) the wires shall be physically 
                segregated and not interconnected with any 
                portion of the system of the utility, except on 
                the customer side of the revenue meter of the 
                utility and in a manner that precludes any 
                possible export of the electricity onto the 
                utility system, or disruption of the system.
          ``(4) Agreed on alternatives.--The utility and the 
        owner or operator of the project may reach agreement on 
        any alternate arrangement and payments or rates 
        associated with the arrangement that is mutually 
        satisfactory and in accord with State law.
  ``(d) Rate Conditions and Criteria.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Per unit distribution costs.--The term 
                `per unit distribution costs' means (in 
                kilowatt hours) the quotient obtained by 
                dividing--
                          ``(i) the depreciated book-value 
                        distribution system costs of a utility; 
                        by
                          ``(ii) the volume of utility 
                        electricity sales or transmission 
                        during the previous year at the 
                        distribution level.
                  ``(B) Per unit distribution margin.--The term 
                `per unit distribution margin' means--
                          ``(i) in the case of a State-
                        regulated electric utility, a per-unit 
                        gross pretax profit equal to the 
                        product obtained by multiplying--
                                  ``(I) the State-approved 
                                percentage rate of return for 
                                the utility for distribution 
                                system assets; by
                                  ``(II) the per unit 
                                distribution costs; and
                          ``(ii) in the case of a nonregulated 
                        utility, a per unit contribution to net 
                        revenues determined multiplying--
                                  ``(I) the percentage (but not 
                                less than 10 percent) obtained 
                                by dividing--
                                          ``(aa) the amount of 
                                        any net revenue payment 
                                        or contribution to the 
                                        owners or subscribers 
                                        of the nonregulated 
                                        utility during the 
                                        prior year; by
                                          ``(bb) the gross 
                                        revenues of the utility 
                                        during the prior year 
                                        to obtain a percentage; 
                                        by
                                  ``(II) the per unit 
                                distribution costs.
                  ``(C) Per unit transmission costs.--The term 
                `per unit transmission costs' means the total 
                cost of those transmission services purchased 
                or provided by a utility on a per-kilowatt-hour 
                basis as included in the retail rate of the 
                utility.
          ``(2) Options.--The options described in paragraphs 
        (1) and (2) in subsection (c) shall be offered under 
        purchase and transport rate conditions that reflect the 
        rate components defined under paragraph (1) as 
        applicable under the circumstances described in 
        paragraph (3).
          ``(3) Applicable rates.--
                  ``(A) Rates applicable to sale of net excess 
                power.--
                          ``(i) In general.--Sales made by a 
                        project owner or operator of a facility 
                        under the option described in 
                        subsection (c)(1) shall be paid for on 
                        a per kilowatt hour basis that shall 
                        equal the full undiscounted retail rate 
                        paid to the utility for power purchased 
                        by the facility minus per unit 
                        distribution costs, that applies to the 
                        type of utility purchasing the power.
                          ``(ii) Voltages exceeding 25 
                        kilovolts.--If the net excess power is 
                        made available for purchase at voltages 
                        that must be transformed to or from 
                        voltages exceeding 25 kilovolts to be 
                        available for resale by the utility, 
                        the purchase price shall further be 
                        reduced by per unit transmission costs.
                  ``(B) Rates applicable to transport by 
                utility for direct sale to third parties.--
                          ``(i) In general.--Transportation by 
                        utilities of power on behalf of the 
                        owner or operator of a project under 
                        the option described in subsection 
                        (c)(2) shall incur a transportation 
                        rate that shall equal the per unit 
                        distribution costs and per unit 
                        distribution margin, that applies to 
                        the type of utility transporting the 
                        power.
                          ``(ii) Voltages exceeding 25 
                        kilovolts.--If the net excess power is 
                        made available for transportation at 
                        voltages that must be transformed to or 
                        from voltages exceeding 25 kilovolts to 
                        be transported to the designated third-
                        party purchasers, the transport rate 
                        shall further be increased by per unit 
                        transmission costs.
                          ``(iii) States with competitive 
                        retail markets for electricity.--In a 
                        State with a competitive retail market 
                        for electricity, the applicable 
                        transportation rate for similar 
                        transportation shall be applied in lieu 
                        of any rate calculated under this 
                        paragraph.
          ``(4) Limitations.--
                  ``(A) In general.--Any rate established for 
                sale or transportation under this section 
                shall--
                          ``(i) be modified over time with 
                        changes in the underlying costs or 
                        rates of the electric utility; and
                          ``(ii) reflect the same time-
                        sensitivity and billing periods as are 
                        established in the retail sales or 
                        transportation rates offered by the 
                        utility.
                  ``(B) Limitation.--No utility shall be 
                required to purchase or transport a quantity of 
                net excess power under this section that 
                exceeds the available capacity of the wires, 
                meter, or other equipment of the electric 
                utility serving the site unless the owner or 
                operator of the project agrees to pay necessary 
                and reasonable upgrade costs.
  ``(e) Procedural Requirements for Consideration and 
Determination.--
          ``(1) Public notice and hearing.--
                  ``(A) In general.--The consideration referred 
                to in subsection (a) shall be made after public 
                notice and hearing.
                  ``(B) Administration.--The determination 
                referred to in subsection (a) shall be--
                          ``(i) in writing;
                          ``(ii) based on findings included in 
                        the determination and on the evidence 
                        presented at the hearing; and
                          ``(iii) available to the public.
          ``(2) Intervention by administrator.--The 
        Administrator may intervene as a matter of right in a 
        proceeding conducted under this section--
                  ``(A) to calculate--
                          ``(i) the energy and emissions likely 
                        to be saved by electing to adopt 1 or 
                        more of the options; and
                          ``(ii) the costs and benefits to 
                        ratepayers and the utility; and
                  ``(B) to advocate for the waste-energy 
                recovery opportunity.
          ``(3) Procedures.--
                  ``(A) In general.--Except as otherwise 
                provided in paragraphs (1) and (2), the 
                procedures for the consideration and 
                determination referred to in subsection (a) 
                shall be the procedures established by the 
                State regulatory authority or the nonregulated 
                electric utility.
                  ``(B) Multiple projects.--If there is more 
                than 1 project seeking consideration 
                simultaneously in connection with the same 
                utility, the proceeding may encompass all such 
                projects, if full attention is paid to 
                individual circumstances and merits and an 
                individual judgment is reached with respect to 
                each project.
  ``(f) Implementation.--
          ``(1) In general.--The State regulatory authority 
        (with respect to each electric utility for which the 
        authority has ratemaking authority) or nonregulated 
        electric utility may, to the extent consistent with 
        otherwise applicable State law--
                  ``(A) implement the standard determined under 
                this section; or
                  ``(B) decline to implement any such standard.
          ``(2) Nonimplementation of standard.--
                  ``(A) In general.--If a State regulatory 
                authority (with respect to each electric 
                utility for which the authority has ratemaking 
                authority) or nonregulated electric utility 
                declines to implement any standard established 
                by this section, the authority or nonregulated 
                electric utility shall state in writing the 
                reasons for declining to implement the 
                standard.
                  ``(B) Availability to public.--The statement 
                of reasons shall be available to the public.
                  ``(C) Annual report.--The Administrator shall 
                include in an annual report submitted to 
                Congress a description of the lost 
                opportunities for waste-heat recovery from the 
                project described in subparagraph (A), 
                specifically identifying the utility and 
                stating the quantity of lost energy and 
                emissions savings calculated.
                  ``(D) New petition.--If a State regulatory 
                authority (with respect to each electric 
                utility for which the authority has ratemaking 
                authority) or nonregulated electric utility 
                declines to implement the standard established 
                by this section, the project sponsor may submit 
                a new petition under this section with respect 
                to the project at any time after the date that 
                is 2 years after the date on which the State 
                regulatory authority or nonregulated utility 
                declined to implement the standard.

``SEC. 375. CLEAN ENERGY APPLICATION CENTERS.

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

                 ``Part E--Industrial Energy Efficiency

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

SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM.

  (a) Definitions.--In this section:
          (1) Eligible entity.--The term ``eligible entity'' 
        means--
                  (A) an energy-intensive industry;
                  (B) a national trade association representing 
                an energy-intensive industry; or
                  (C) a person acting on behalf of 1 or more 
                energy-intensive industries or sectors, as 
                determined by the Secretary.
          (2) Energy-intensive industry.--The term ``energy-
        intensive industry'' means an industry that uses 
        significant quantities of energy as part of its primary 
        economic activities, including--
                  (A) information technology, including data 
                centers containing electrical equipment used in 
                processing, storing, and transmitting digital 
                information;
                  (B) consumer product manufacturing;
                  (C) food processing;
                  (D) materials manufacturers, including--
                          (i) aluminum;
                          (ii) chemicals;
                          (iii) forest and paper products;
                          (iv) metal casting;
                          (v) glass;
                          (vi) petroleum refining;
                          (vii) mining; and
                          (viii) steel;
                  (E) other energy-intensive industries, as 
                determined by the Secretary.
          (3) Feedstock.--The term ``feedstock'' means the raw 
        material supplied for use in manufacturing, chemical, 
        and biological processes.
          (4) Partnership.--The term ``partnership'' means an 
        energy efficiency partnership established under 
        subsection (c)(1)(A).
          (5) Program.--The term ``program'' means the energy-
        intensive industries program established under 
        subsection (b).
  (b) Establishment of Program.--The Secretary shall establish 
a program under which the Secretary, in cooperation with 
energy-intensive industries and national industry trade 
associations representing the energy-intensive industries, 
shall support, research, develop, and promote the use of new 
materials processes, technologies, and techniques to optimize 
energy efficiency and the economic competitiveness of the 
United States' industrial and commercial sectors.
  (c) Partnerships.--
          (1) In general.--As part of the program, the 
        Secretary shall establish energy efficiency 
        partnerships between the Secretary and eligible 
        entities to conduct research on, develop, and 
        demonstrate new processes, technologies, and operating 
        practices and techniques to significantly improve the 
        energy efficiency of equipment and processes used by 
        energy-intensive industries, including the conduct of 
        activities to--
                  (A) increase the energy efficiency of 
                industrial processes and facilities;
                  (B) research, develop, and demonstrate 
                advanced technologies capable of energy 
                intensity reductions and increased 
                environmental performance; and
                  (C) promote the use of the processes, 
                technologies, and techniques described in 
                subparagraphs (A) and (B).
          (2) Eligible activities.--Partnership activities 
        eligible for funding under this subsection include--
                  (A) feedstock and recycling research, 
                development, and demonstration activities to 
                identify and promote--
                          (i) opportunities for meeting 
                        industry feedstock requirements with 
                        more energy efficient and flexible 
                        sources of feedstock or energy supply;
                          (ii) strategies to develop and deploy 
                        technologies that improve the quality 
                        and quantity of feedstocks recovered 
                        from process and waste streams; and
                          (iii) other methods using recycling, 
                        reuse, and improved industrial 
                        materials;
                  (B) research to develop and demonstrate 
                technologies and processes that utilize 
                alternative energy sources to supply heat, 
                power, and new feedstocks for energy-intensive 
                industries;
                  (C) research to achieve energy efficiency in 
                steam, power, control system, and process heat 
                technologies, and in other manufacturing 
                processes; and
                  (D) industrial and commercial energy 
                efficiency and sustainability assessments to--
                          (i) assist individual industrial and 
                        commercial sectors in developing tools, 
                        techniques, and methodologies to 
                        assess--
                                  (I) the unique processes and 
                                facilities of the sectors;
                                  (II) the energy utilization 
                                requirements of the sectors; 
                                and
                                  (III) the application of new, 
                                more energy efficient 
                                technologies; and
                          (ii) conduct energy savings 
                        assessments;
                  (E) the incorporation of technologies and 
                innovations that would significantly improve 
                the energy efficiency and utilization of 
                energy-intensive commercial applications; and
                  (F) any other activities that the Secretary 
                determines to be appropriate.
          (3) Proposals.--
                  (A) In general.--To be eligible for funding 
                under this subsection, a partnership shall 
                submit to the Secretary a proposal that 
                describes the proposed research, development, 
                or demonstration activity to be conducted by 
                the partnership.
                  (B) Review.--After reviewing the scientific, 
                technical, and commercial merit of a proposals 
                submitted under subparagraph (A), the Secretary 
                shall approve or disapprove the proposal.
                  (C) Competitive awards.--The provision of 
                funding under this subsection shall be on a 
                competitive basis.
          (4) Cost-sharing requirement.--In carrying out this 
        section, the Secretary shall require cost sharing in 
        accordance with section 988 of the Energy Policy Act of 
        2005 (42 U.S.C. 16352).
  (d) Grants.--The Secretary may award competitive grants for 
innovative technology research, development and demonstrations 
to universities, individual inventors, and small companies, 
based on energy savings potential, commercial viability, and 
technical merit.
  (e) Institution of Higher Education-Based Industrial Research 
and Assessment Centers.--The Secretary shall provide funding to 
institution of higher education-based industrial research and 
assessment centers, whose purpose shall be--
          (1) to identify opportunities for optimizing energy 
        efficiency and environmental performance;
          (2) to promote applications of emerging concepts and 
        technologies in small and medium-sized manufacturers;
          (3) to promote research and development for the use 
        of alternative energy sources to supply heat, power, 
        and new feedstocks for energy-intensive industries;
          (4) to coordinate with appropriate Federal and State 
        research offices, and provide a clearinghouse for 
        industrial process and energy efficiency technical 
        assistance resources; and
          (5) to coordinate with State-accredited technical 
        training centers and community colleges, while ensuring 
        appropriate services to all regions of the United 
        States.
  (f) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated to the Secretary to carry out this 
        section--
                  (A) $184,000,000 for fiscal year 2008;
                  (B) $190,000,000 for fiscal year 2009;
                  (C) $196,000,000 for fiscal year 2010;
                  (D) $202,000,000 for fiscal year 2011;
                  (E) $208,000,000 for fiscal year 2012; and
                  (F) such sums as are necessary for fiscal 
                year 2013 and each fiscal year thereafter.
          (2) Partnership activities.--Of the amounts made 
        available under paragraph (1), not less than 50 percent 
        shall be used to pay the Federal share of partnership 
        activities under subsection (c).
          (3) Coordination and nonduplication.--The Secretary 
        shall coordinate efforts under this section with other 
        programs of the Department and other Federal agencies 
        to avoid duplication of effort.

SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

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

              Subtitle E--Healthy High-Performance Schools


SEC. 461. HEALTHY HIGH-PERFORMANCE SCHOOLS.

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

              ``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS


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

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

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

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

``SEC. 503. PUBLIC OUTREACH.

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

``SEC. 504. ENVIRONMENTAL HEALTH PROGRAM.

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

``SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

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

               ``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

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

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

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

                   Subtitle F--Institutional Entities


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

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

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

  ``(a) Definitions.--In this section:
          ``(1) Combined heat and power.--The term `combined 
        heat and power' means the generation of electric energy 
        and heat in a single, integrated system, with an 
        overall thermal efficiency of 60 percent or greater on 
        a higher-heating-value basis.
          ``(2) District energy systems.--The term `district 
        energy systems' means systems providing thermal energy 
        from a renewable energy source, thermal energy source, 
        or highly efficient technology to more than 1 building 
        or fixed energy-consuming use from 1 or more thermal-
        energy production facilities through pipes or other 
        means to provide space heating, space conditioning, hot 
        water, steam, compression, process energy, or other end 
        uses for that energy.
          ``(3) Energy sustainability.--The term `energy 
        sustainability' includes using a renewable energy 
        source, thermal energy source, or a highly efficient 
        technology for transportation, electricity generation, 
        heating, cooling, lighting, or other energy services in 
        fixed installations.
          ``(4) Institution of higher education.--The term 
        `institution of higher education' has the meaning given 
        the term in section 2 of the Energy Policy Act of 2005 
        (42 U.S.C. 15801).
          ``(5) Institutional entity.--The term `institutional 
        entity' means an institution of higher education, a 
        public school district, a local government, a municipal 
        utility, or a designee of 1 of those entities.
          ``(6) Renewable energy source.--The term `renewable 
        energy source' has the meaning given the term in 
        section 609 of the Public Utility Regulatory Policies 
        Act of 1978 (7 U.S.C. 918c).
          ``(7) Sustainable energy infrastructure.--The term 
        `sustainable energy infrastructure' means--
                  ``(A) facilities for production of energy 
                from renewable energy sources, thermal energy 
                sources, or highly efficient technologies, 
                including combined heat and power or other 
                waste heat use; and
                  ``(B) district energy systems.
          ``(8) Thermal energy source.--The term `thermal 
        energy source' means--
                  ``(A) a natural source of cooling or heating 
                from lake or ocean water; and
                  ``(B) recovery of useful energy that would 
                otherwise be wasted from ongoing energy uses.
  ``(b) Technical Assistance Grants.--
          ``(1) In general.--Subject to the availability of 
        appropriated funds, the Secretary shall implement a 
        program of information dissemination and technical 
        assistance to institutional entities to assist the 
        institutional entities in identifying, evaluating, 
        designing, and implementing sustainable energy 
        infrastructure projects in energy sustainability.
          ``(2) Assistance.--The Secretary shall support 
        institutional entities in--
                  ``(A) identification of opportunities for 
                sustainable energy infrastructure;
                  ``(B) understanding the technical and 
                economic characteristics of sustainable energy 
                infrastructure;
                  ``(C) utility interconnection and negotiation 
                of power and fuel contracts;
                  ``(D) understanding financing alternatives;
                  ``(E) permitting and siting issues;
                  ``(F) obtaining case studies of similar and 
                successful sustainable energy infrastructure 
                systems; and
                  ``(G) reviewing and obtaining computer 
                software for assessment, design, and operation 
                and maintenance of sustainable energy 
                infrastructure systems.
          ``(3) Eligible costs for technical assistance 
        grants.--On receipt of an application of an 
        institutional entity, the Secretary may make grants to 
        the institutional entity to fund a portion of the cost 
        of--
                  ``(A) feasibility studies to assess the 
                potential for implementation or improvement of 
                sustainable energy infrastructure;
                  ``(B) analysis and implementation of 
                strategies to overcome barriers to project 
                implementation, including financial, 
                contracting, siting, and permitting barriers; 
                and
                  ``(C) detailed engineering of sustainable 
                energy infrastructure.
  ``(c) Grants for Energy Efficiency Improvement and Energy 
Sustainability.--
          ``(1) Grants.--
                  ``(A) In general.--The Secretary shall award 
                grants to institutional entities to carry out 
                projects to improve energy efficiency on the 
                grounds and facilities of the institutional 
                entity.
                  ``(B) Requirement.--To the extent that 
                applications have been submitted, grants under 
                subparagraph (A) shall include not less than 1 
                grant each year to an institution of higher 
                education in each State.
                  ``(C) Minimum funding.--Not less than 50 
                percent of the total funding for all grants 
                under this subsection shall be awarded in 
                grants to institutions of higher education.
          ``(2) Criteria.--Evaluation of projects for grant 
        funding shall be based on criteria established by the 
        Secretary, including criteria relating to--
                  ``(A) improvement in energy efficiency;
                  ``(B) reduction in greenhouse gas emissions 
                and other air emissions, including criteria air 
                pollutants and ozone-depleting refrigerants;
                  ``(C) increased use of renewable energy 
                sources or thermal energy sources;
                  ``(D) reduction in consumption of fossil 
                fuels;
                  ``(E) active student participation; and
                  ``(F) need for funding assistance.
          ``(3) Condition.--As a condition of receiving a grant 
        under this subsection, an institutional entity shall 
        agree--
                  ``(A) to implement a public awareness 
                campaign concerning the project in the 
                community in which the institutional entity is 
                located; and
                  ``(B) to submit to the Secretary, and make 
                available to the public, reports on any 
                efficiency improvements, energy cost savings, 
                and environmental benefits achieved as part of 
                a project carried out under paragraph (1), 
                including quantification of the results 
                relative to the criteria described under 
                paragraph (2).
  ``(d) Grants for Innovation in Energy Sustainability.--
          ``(1) Grants.--
                  ``(A) In general.--The Secretary shall award 
                grants to institutional entities to engage in 
                innovative energy sustainability projects.
                  ``(B) Requirement.--To the extent that 
                applications have been submitted, grants under 
                subparagraph (A) shall include not less than 2 
                grants each year to institutions of higher 
                education in each State.
                  ``(C) Minimum funding.--Not less than 50 
                percent of the total funding for all grants 
                under this subsection shall be awarded in 
                grants to institutions of higher education.
          ``(2) Innovation projects.--An innovation project 
        carried out with a grant under this subsection shall--
                  ``(A) involve--
                          ``(i) an innovative technology that 
                        is not yet commercially available; or
                          ``(ii) available technology in an 
                        innovative application that maximizes 
                        energy efficiency and sustainability;
                  ``(B) have the greatest potential for testing 
                or demonstrating new technologies or processes; 
                and
                  ``(C) to the extent undertaken by an 
                institution of higher education, ensure active 
                student participation in the project, including 
                the planning, implementation, evaluation, and 
                other phases of projects.
          ``(3) Condition.--As a condition of receiving a grant 
        under this subsection, an institutional entity shall 
        agree to submit to the Secretary, and make available to 
        the public, reports that describe the results of the 
        projects carried out using grant funds.
  ``(e) Allocation to Institutions of Higher Education With 
Small Endowments.--
          ``(1) In general.--Of the total amount of grants 
        provided to institutions of higher education for a 
        fiscal year under this section, the Secretary shall 
        provide not less than 50 percent of the amount to 
        institutions of higher education that have an endowment 
        of not more than $100,000,000.
          ``(2) Requirement.--To the extent that applications 
        have been submitted, at least 50 percent of the amount 
        described in paragraph (1) shall be provided to 
        institutions of higher education that have an endowment 
        of not more than $50,000,000.
  ``(f) Grant Amounts.--
          ``(1) In general.--If the Secretary determines that 
        cost sharing is appropriate, the amounts of grants 
        provided under this section shall be limited as 
        provided in this subsection.
          ``(2) Technical assistance grants.--In the case of 
        grants for technical assistance under subsection (b), 
        grant funds shall be available for not more than--
                  ``(A) an amount equal to the lesser of--
                          ``(i) $50,000; or
                          ``(ii) 75 percent of the cost of 
                        feasibility studies to assess the 
                        potential for implementation or 
                        improvement of sustainable energy 
                        infrastructure;
                  ``(B) an amount equal to the lesser of--
                          ``(i) $90,000; or
                          ``(ii) 60 percent of the cost of 
                        guidance on overcoming barriers to 
                        project implementation, including 
                        financial, contracting, siting, and 
                        permitting barriers; and
                  ``(C) an amount equal to the lesser of--
                          ``(i) $250,000; or
                          ``(ii) 40 percent of the cost of 
                        detailed engineering and design of 
                        sustainable energy infrastructure.
          ``(3) Grants for efficiency improvement and energy 
        sustainability.--In the case of grants for efficiency 
        improvement and energy sustainability under subsection 
        (c), grant funds shall be available for not more than 
        an amount equal to the lesser of--
                  ``(A) $1,000,000; or
                  ``(B) 60 percent of the total cost.
          ``(4) Grants for innovation in energy 
        sustainability.--In the case of grants for innovation 
        in energy sustainability under subsection (d), grant 
        funds shall be available for not more than an amount 
        equal to the lesser of--
                  ``(A) $500,000; or
                  ``(B) 75 percent of the total cost.
  ``(g) Loans for Energy Efficiency Improvement and Energy 
Sustainability.--
          ``(1) In general.--Subject to the availability of 
        appropriated funds, the Secretary shall provide loans 
        to institutional entities for the purpose of 
        implementing energy efficiency improvements and 
        sustainable energy infrastructure.
          ``(2) Terms and conditions.--
                  ``(A) In general.--Except as otherwise 
                provided in this paragraph, loans made under 
                this subsection shall be on such terms and 
                conditions as the Secretary may prescribe.
                  ``(B) Maturity.--The final maturity of loans 
                made within a period shall be the lesser of, as 
                determined by the Secretary--
                          ``(i) 20 years; or
                          ``(ii) 90 percent of the useful life 
                        of the principal physical asset to be 
                        financed by the loan.
                  ``(C) Default.--No loan made under this 
                subsection may be subordinated to another debt 
                contracted by the institutional entity or to 
                any other claims against the institutional 
                entity in the case of default.
                  ``(D) Benchmark interest rate.--
                          ``(i) In general.--Loans under this 
                        subsection shall be at an interest rate 
                        that is set by reference to a benchmark 
                        interest rate (yield) on marketable 
                        Treasury securities with a similar 
                        maturity to the direct loans being 
                        made.
                          ``(ii) Minimum.--The minimum interest 
                        rate of loans under this subsection 
                        shall be at the interest rate of the 
                        benchmark financial instrument.
                          ``(iii) New loans.--The minimum 
                        interest rate of new loans shall be 
                        adjusted each quarter to take account 
                        of changes in the interest rate of the 
                        benchmark financial instrument.
                  ``(E) Credit risk.--The Secretary shall--
                          ``(i) prescribe explicit standards 
                        for use in periodically assessing the 
                        credit risk of making direct loans 
                        under this subsection; and
                          ``(ii) find that there is a 
                        reasonable assurance of repayment 
                        before making a loan.
                  ``(F) Advance budget authority required.--New 
                direct loans may not be obligated under this 
                subsection except to the extent that 
                appropriations of budget authority to cover the 
                costs of the new direct loans are made in 
                advance, as required by section 504 of the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 
                661c).
          ``(3) Criteria.--Evaluation of projects for potential 
        loan funding shall be based on criteria established by 
        the Secretary, including criteria relating to--
                  ``(A) improvement in energy efficiency;
                  ``(B) reduction in greenhouse gas emissions 
                and other air emissions, including criteria air 
                pollutants and ozone-depleting refrigerants;
                  ``(C) increased use of renewable electric 
                energy sources or renewable thermal energy 
                sources;
                  ``(D) reduction in consumption of fossil 
                fuels; and
                  ``(E) need for funding assistance, including 
                consideration of the size of endowment or other 
                financial resources available to the 
                institutional entity.
          ``(4) Labor standards.--
                  ``(A) In general.--All laborers and mechanics 
                employed by contractors or subcontractors in 
                the performance of construction, repair, or 
                alteration work funded in whole or in part 
                under this section shall be paid wages at rates 
                not less than those prevailing on projects of a 
                character similar in the locality as determined 
                by the Secretary of Labor in accordance with 
                sections 3141 through 3144, 3146, and 3147 of 
                title 40, United States Code. The Secretary 
                shall not approve any such funding without 
                first obtaining adequate assurance that 
                required labor standards will be maintained 
                upon the construction work.
                  ``(B) Authority and functions.--The Secretary 
                of Labor shall have, with respect to the labor 
                standards specified in paragraph (1), the 
                authority and functions set forth in 
                Reorganization Plan Number 14 of 1950 (15 Fed. 
                Reg. 3176; 64 Stat. 1267) and section 3145 of 
                title 40, United States Code.
  ``(h) Program Procedures.--Not later than 180 days after the 
date of enactment of this section, the Secretary shall 
establish procedures for the solicitation and evaluation of 
potential projects for grant and loan funding and 
administration of the grant and loan programs.
  ``(i) Authorization.--
          ``(1) Grants.--There is authorized to be appropriated 
        for the cost of grants authorized in subsections (b), 
        (c), and (d) $250,000,000 for each of fiscal years 2009 
        through 2013, of which not more than 5 percent may be 
        used for administrative expenses.
          ``(2) Loans.--There is authorized to be appropriated 
        for the initial cost of direct loans authorized in 
        subsection (g) $500,000,000 for each of fiscal years 
        2009 through 2013, of which not more than 5 percent may 
        be used for administrative expenses.''.

                Subtitle G--Public and Assisted Housing


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

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

                     Subtitle H--General Provisions


SEC. 491. DEMONSTRATION PROJECT.

  (a) In General.--The Federal Director and the Commercial 
Director shall establish guidelines to implement a 
demonstration project to contribute to the research goals of 
the Office of Commercial High-Performance Green Buildings and 
the Office of Federal High-Performance Green Buildings.
  (b) Projects.--In accordance with guidelines established by 
the Federal Director and the Commercial Director under 
subsection (a) and the duties of the Federal Director and the 
Commercial Director described in this title, the Federal 
Director or the Commercial Director shall carry out--
          (1) for each of fiscal years 2009 through 2014, 1 
        demonstration project per year of green features in a 
        Federal building selected by the Federal Director in 
        accordance with relevant agencies and described in 
        subsection (c)(1), that--
                  (A) provides for instrumentation, monitoring, 
                and data collection related to the green 
                features, for study of the impact of the 
                features on overall enrgy use and operational 
                costs, and for the evaluation of the 
                information obtained through the conduct of 
                projects and activities under this title; and
                  (B) achieves the highest rating offered by 
                the high performance green building system 
                identified pursuant to section 436(h);
          (2) no fewer than 4 demonstration projects at 4 
        universities, that, as competitively selected by the 
        Commercial Director in accordance with subsection 
        (c)(2), have--
                  (A) appropriate research resources and 
                relevant projects to meet the goals of the 
                demonstration project established by the Office 
                of Commercial High-Performance Green Buildings; 
                and
                  (B) the ability--
                          (i) to serve as a model for high-
                        performance green building initiatives, 
                        including research and education by 
                        achieving the highest rating offered by 
                        the high performance green building 
                        system identified pursuant to section 
                        436(h);
                          (ii) to identify the most effective 
                        ways o use high-performance green 
                        building and landscape technologies to 
                        engage and educate undergraduate and 
                        graduate students;
                          (iii) to effectively implement a 
                        high-performance green building 
                        education program for students and 
                        occupants;
                          (iv) to demonstrate the effectiveness 
                        of various high-performance 
                        technologies, including their impacts 
                        on energy use and operational costs, in 
                        each of the 4 climatic regions of the 
                        United States described in subsection 
                        (c)(2)(B); and
                          (v) to explore quantifiable and 
                        nonquantifiable beneficial impacts on 
                        public health and employee and student 
                        performance;
          (3) demonstration projects to evaluate replicable 
        approaches of achieving high performance in actual 
        building operation in various types of commercial 
        buildings in various climates; and
          (4) deployment activities to disseminate information 
        on and encourage widespread adoption of technologies, 
        practices, and policies to achieve zero-net-energy 
        commercial buildings or low energy use and effective 
        monitoring of energy use in commercial buildings.
  (c) Criteria.--
          (1) Federal facilities.--With respect to the existing 
        or proposed Federal facility at which a demonstration 
        project under this section is conducted, the Federal 
        facility shall--
                  (A) be an appropriate model for a project 
                relating to--
                          (i) the effectiveness of high-
                        performance technologies;
                          (ii) analysis of materials, 
                        components, systems, and emergency 
                        operations in the building, and the 
                        impact of those materials, components, 
                        and systems, including the impact on 
                        the health of building occupants;
                          (iii) life-cycle costing and life-
                        cycle assessment of building materials 
                        and systems; and
                          (iv) location and design that promote 
                        access to the Federal facility through 
                        walking, biking, and mass transit; and
                  (B) possess sufficient technological and 
                organizational adaptability.
          (2) Universities.--With respect to the 4 universities 
        at which a demonstration project under this section is 
        conducted--
                  (A) the universities should be selected, 
                after careful review of all applications 
                received containing the required information, 
                as determined by the Commercial Director, based 
                on--
                          (i) successful and established 
                        public-private research and development 
                        partnerships;
                          (ii) demonstrated capabilities to 
                        construct or renovate buildings that 
                        meet high indoor environmental quality 
                        standards;
                          (iii) organizational flexibility;
                          (iv) technological adaptability;
                          (v) the demonstrated capacity of at 
                        least 1 university to replicate lessons 
                        learned among nearby or sister 
                        universities, preferably by 
                        participation in groups or consortia 
                        that promote sustainability;
                          (vi) the demonstrated capacity of at 
                        least 1 university to have officially-
                        adopted, institution-wide ``high-
                        performance green building'' guidelines 
                        for all campus building projects; and
                          (vii) the demonstrated capacity of at 
                        least 1 university to have been 
                        recognized by similar institutions as a 
                        national leader in sustainability 
                        education and curriculum for students 
                        of the university; and
                  (B) each university shall be located in a 
                different climatic region of the United States, 
                each of which regions shall have, as determined 
                by the Office of Commercial High-Performance 
                Green Buildings--
                          (i) a hot, dry climate;
                          (ii) a hot, humid climate;
                          (iii) a cold climate; or
                          (iv) a temperate climate (including a 
                        climate with cold winters and humid 
                        summers).
  (d) Applications.--To receive a grant under subsection (b), 
an eligible applicant shall submit to the Federal Director or 
the Commercial Director an application at such time, in such 
manner, and containing such information as the Director may 
require, including a written assurance that all laborers and 
mechanics employed by contractors or subcontractors during 
construction, alteration, or repair that is financed, in whole 
or in part, by a grant under this section shall be paid wages 
at rates not less than those prevailing on similar construction 
in the locality, as determined by the Secretary of Labor in 
accordance with sections 3141 through 3144, 3146, and 3147 of 
title 40, United States Code. The Secretary of Labor shall, 
with respect to the labor standards described in this 
subsection, have the authority and functions set forth in 
Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and 
section 3145 of title 40, United States Code.
  (e) Report.--Not later than 1 year after the date of 
enactment of this Act, and annually thereafter through 
September 30, 2014--
          (1) the Federal Director and the Commercial Director 
        shall submit to the Secretary a report that describes 
        the status of the demonstration projects; and
          (2) each University at which a demonstration project 
        under this section is conducted shall submit to the 
        Secretary a report that describes the status of the 
        demonstration projects under this section.
  (f) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out the demonstration project 
described in section (b)(1) $10,000,000 for the period of 
fiscal years 2008 through 2012, and to carry out the 
demonstration project described in section (b)(2), $10,000,000 
for the period of fiscal years 2008 through 2012, to remain 
available until expended.

SEC. 492. RESEARCH AND DEVELOPMENT.

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

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

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

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

  ``(a) Grant Program.--
          ``(1) In general.--The Administrator shall establish 
        a demonstration program under which the Administrator 
        shall provide competitive grants to assist local 
        governments (such as municipalities and counties), with 
        respect to local government buildings--
                  ``(A) to deploy cost-effective technologies 
                and practices; and
                  ``(B) to achieve operational cost savings, 
                through the application of cost-effective 
                technologies and practices, as verified by the 
                Administrator.
          ``(2) Cost sharing.--
                  ``(A) In general.--The Federal share of the 
                cost of an activity carried out using a grant 
                provided under this section shall be 40 
                percent.
                  ``(B) Waiver of non-federal share.--The 
                Administrator may waive up to 100 percent of 
                the local share of the cost of any grant under 
                this section should the Administrator determine 
                that the community is economically distressed, 
                pursuant to objective economic criteria 
                established by the Administrator in published 
                guidelines.
          ``(3) Maximum amount.--The amount of a grant provided 
        under this subsection shall not exceed $1,000,000.
  ``(b) Guidelines.--
          ``(1) In general.--Not later than 1 year after the 
        date of enactment of this section, the Administrator 
        shall issue guidelines to implement the grant program 
        established under subsection (a).
          ``(2) Requirements.--The guidelines under paragraph 
        (1) shall establish--
                  ``(A) standards for monitoring and 
                verification of operational cost savings 
                through the application of cost-effective 
                technologies and practices reported by grantees 
                under this section;
                  ``(B) standards for grantees to implement 
                training programs, and to provide technical 
                assistance and education, relating to the 
                retrofit of buildings using cost-effective 
                technologies and practices; and
                  ``(C) a requirement that each local 
                government that receives a grant under this 
                section shall achieve facility-wide cost 
                savings, through renovation of existing local 
                government buildings using cost-effective 
                technologies and practices, of at least 40 
                percent as compared to the baseline operational 
                costs of the buildings before the renovation 
                (as calculated assuming a 3-year, weather-
                normalized average).
  ``(c) Compliance With State and Local Law.--Nothing in this 
section or any program carried out using a grant provided under 
this section supersedes or otherwise affects any State or local 
law, to the extent that the State or local law contains a 
requirement that is more stringent than the relevant 
requirement of this section.
  ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $20,000,000 for 
each of fiscal years 2007 through 2012.
  ``(e) Reports.--
          ``(1) In general.--The Administrator shall provide 
        annual reports to Congress on cost savings achieved and 
        actions taken and recommendations made under this 
        section, and any recommendations for further action.
          ``(2) Final report.--The Administrator shall issue a 
        final report at the conclusion of the program, 
        including findings, a summary of total cost savings 
        achieved, and recommendations for further action.
  ``(f) Termination.--The program under this section shall 
terminate on September 30, 2012.
  ``(g) Definitions.--In this section, the terms `cost 
effective technologies and practices' and `operating cost 
savings' shall have the meanings defined in section 401 of the 
Energy Independence and Security Act of 2007.''.

SEC. 494. GREEN BUILDING ADVISORY COMMITTEE.

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

SEC. 495. ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCE.

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

     TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS


               Subtitle A--United States Capitol Complex


SEC. 501. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY STUDIES.

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

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

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

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

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

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

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

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

  The first section of the Act of March 4, 1911 (2 U.S.C. 2162; 
36 Stat. 1414, chapter 285) is amended in the seventh 
undesignated paragraph (relating to the Capitol power plant) 
under the heading ``Public Buildings'', under the heading 
``Under the Department of Interior''--
          (1) by striking ``ninety thousand dollars:'' and 
        inserting $90,000.''; and
          (2) by striking ``Provided, That hereafter the'' and 
        all that follows through the end of the proviso and 
        inserting the following:
  ``(a) Designation.--The heating, lighting, and power plant 
constructed under the terms of the Act approved April 28, 1904 
(33 Stat. 479, chapter 1762) shall be known as the `Capitol 
Power Plant'.
  ``(b) Definition.--In this section, the term `carbon dioxide 
energy efficiency' means the quantity of electricity used to 
power equipment for carbon dioxide capture and storage or use.
  ``(c) Feasibility Study.--The Architect of the Capitol shall 
conduct a feasibility study evaluating the available methods to 
capture, store, and use carbon dioxide emitted from the Capitol 
Power Plant as a result of burning fossil fuels. In carrying 
out the feasibility study, the Architect of the Capitol is 
encouraged to consult with individuals with expertise in carbon 
capture and storage or use, including experts with the 
Environmental Protection Agency, Department of Energy, academic 
institutions, non-profit organizations, and industry, as 
appropriate. The study shall consider--
          ``(1) the availability of technologies to capture and 
        store or use Capitol Power Plant carbon dioxide 
        emissions;
          ``(2) strategies to conserve energy and reduce carbon 
        dioxide emissions at the Capitol Power Plant; and
          ``(3) other factors as determined by the Architect of 
        the Capitol.
  ``(d) Demonstration Projects.--
          ``(1) In general.--If the feasibility study 
        determines that a demonstration project to capture and 
        store or use Capitol Power Plant carbon dioxide 
        emissions is technologically feasible and economically 
        justified (including direct and indirect economic and 
        environmental benefits), the Architect of the Capitol 
        may conduct one or more demonstration projects to 
        capture and store or use carbon dioxide emitted from 
        the Capitol Power Plant as a result of burning fossil 
        fuels.
          ``(2) Factors for consideration.--In carrying out 
        such demonstration projects, the Architect of the 
        Capitol shall consider--
                  ``(A) the amount of Capitol Power Plant 
                carbon dioxide emissions to be captured and 
                stored or used;
                  ``(B) whether the proposed project is able to 
                reduce air pollutants other than carbon 
                dioxide;
                  ``(C) the carbon dioxide energy efficiency of 
                the proposed project;
                  ``(D) whether the proposed project is able to 
                use carbon dioxide emissions;
                  ``(E) whether the proposed project could be 
                expanded to significantly increase the amount 
                of Capitol Power Plant carbon dioxide emissions 
                to be captured and stored or used;
                  ``(F) the potential environmental, energy, 
                and educational benefits of demonstrating the 
                capture and storage or use of carbon dioxide at 
                the U.S. Capitol; and
                  ``(G) other factors as determined by the 
                Architect of the Capitol.
          ``(3) Terms and conditions.--A demonstration project 
        funded under this section shall be subject to such 
        terms and conditions as the Architect of the Capitol 
        may prescribe.
  ``(e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out the feasibility study and 
demonstration project $3,000,000. Such sums shall remain 
available until expended.''.

           Subtitle B--Energy Savings Performance Contracting


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

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

SEC. 512. FINANCING FLEXIBILITY.

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

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

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

SEC. 514. PERMANENT REAUTHORIZATION.

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

SEC. 515. DEFINITION OF ENERGY SAVINGS.

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

SEC. 516. RETENTION OF SAVINGS.

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

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

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

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

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

           Subtitle C--Energy Efficiency in Federal Agencies


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

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

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

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

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

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

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

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

SEC. 525. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

SEC. 526. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

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

SEC. 527. GOVERNMENT EFFICIENCY STATUS REPORTS.

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

SEC. 528. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.

  (a) Reports.--Not later than April 1 of each year, the 
Director of the Office of Management and Budget shall submit an 
annual Government efficiency report to the Committee on 
Oversight and Government Reform of the House of Representatives 
and the Committee on Governmental Affairs of the Senate, which 
shall contain--
          (1) a summary of the information reported by agencies 
        under section 527;
          (2) an evaluation of the overall progress of the 
        Federal Government toward achieving the goals of this 
        title and the amendments made by this title; and
          (3) recommendations for additional actions necessary 
        to meet the goals of this title and the amendments made 
        by this title.
  (b) Scorecards.--The Director of the Office of Management and 
Budget shall include in any annual energy scorecard the 
Director is otherwise required to submit a description of the 
compliance of each agency with the requirements of this title 
and the amendments made by this title.

SEC. 529. ELECTRICITY SECTOR DEMAND RESPONSE.

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

                    ``PART 5--PEAK DEMAND REDUCTION

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

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

                     ``Part 5--Peak Demand Reduction

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

          Subtitle D--Energy Efficiency of Public Institutions


SEC. 531. REAUTHORIZATION OF STATE ENERGY PROGRAMS.

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

SEC. 532. UTILITY ENERGY EFFICIENCY PROGRAMS.

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

      Subtitle E--Energy Efficiency and Conservation Block Grants


SEC. 541. DEFINITIONS.

  In this subtitle:
          (1) Eligible entity.--The term ``eligible entity'' 
        means--
                  (A) a State;
                  (B) an eligible unit of local government; and
                  (C) an Indian tribe.
          (2) Eligible unit of local government.--The term 
        ``eligible unit of local government'' means--
                  (A) an eligible unit of local government-
                alternative 1; and
                  (B) an eligible unit of local government-
                alternative 2.
          (3)(A) Eligible unit of local government-alternative 
        1.--The term ``eligible unit of local government-
        alternative 1'' means--
                  (i) a city with a population--
                          (I) of at least 35,000; or
                          (II) that causes the city to be 1 of 
                        the 10 highest-populated cities of the 
                        State in which the city is located; and
                  (ii) a county with a population--
                          (I) of at least 200,000; or
                          (II) that causes the county to be 1 
                        of the 10 highest-populated counties of 
                        the State in which the county is 
                        located.
          (B) Eligible unit of local government-alternative 
        2.--The term ``eligible unit of local government-
        alternative 2'' means--
                  (i) a city with a population of at least 
                50,000; or
                  (ii) a county with a population of at least 
                200,000.
          (4) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self- 
        Determination and Education Assistance Act (25 U.S.C. 
        450b).
          (5) Program.--The term ``program'' means the Energy 
        Efficiency and Conservation Block Grant Program 
        established under section 542(a).
          (6) State.--The term ``State'' means--
                  (A) a State;
                  (B) the District of Columbia;
                  (C) the Commonwealth of Puerto Rico; and
                  (D) any other territory or possession of the 
                United States.

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

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

SEC. 543. ALLOCATION OF FUNDS.

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

SEC. 544. USE OF FUNDS.

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

SEC. 545. REQUIREMENTS FOR ELIGIBLE ENTITIES.

  (a) Construction Requirement.--
          (1) In general.--To be eligible to receive a grant 
        under the program, each eligible applicant shall submit 
        to the Secretary a written assurance that all laborers 
        and mechanics employed by any contractor or 
        subcontractor of the eligible entity during any 
        construction, alteration, or repair activity funded, in 
        whole or in part, by the grant shall be paid wages at 
        rates not less than the prevailing wages for similar 
        construction activities in the locality, as determined 
        by the Secretary of Labor, in accordance with sections 
        3141 through 3144, 3146, and 3147 of title 40, United 
        States Code.
          (2) Secretary of labor.--With respect to the labor 
        standards referred to in paragraph (1), the Secretary 
        of Labor shall have the authority and functions 
        described in--
                  (A) Reorganization Plan Numbered 14 of 1950 
                (5 U.S.C. 903 note); and
                  (B) section 3145 of title 40, United States 
                Code.
  (b) Eligible Units of Local Government and Indian Tribes.--
          (1) Proposed strategy.--
                  (A) In general.--Not later than 1 year after 
                the date on which an eligible unit of local 
                government or Indian tribe receives a grant 
                under this subtitle, the eligible unit of local 
                government or Indian tribe shall submit to the 
                Secretary a proposed energy efficiency and 
                conservation strategy in accordance with this 
                paragraph.
                  (B) Inclusions.--The proposed strategy under 
                subparagraph (A) shall include--
                          (i) a description of the goals of the 
                        eligible unit of local government or 
                        Indian tribe, in accordance with the 
                        purposes of this subtitle, for 
                        increased energy efficiency and 
                        conservation in the jurisdiction of the 
                        eligible unit of local government or 
                        Indian tribe; and
                          (ii) a plan for the use of the grant 
                        to assist the eligible unit of local 
                        government or Indian tribe in achieving 
                        those goals, in accordance with section 
                        544.
                  (C) Requirements for eligible units of local 
                government.--In developing the strategy under 
                subparagraph (A), an eligible unit of local 
                government shall--
                          (i) take into account any plans for 
                        the use of funds by adjacent eligible 
                        units of local governments that receive 
                        grants under the program; and
                          (ii) coordinate and share information 
                        with the State in which the eligible 
                        unit of local government is located 
                        regarding activities carried out using 
                        the grant to maximize the energy 
                        efficiency and conservation benefits 
                        under this subtitle.
          (2) Approval by secretary.--
                  (A) In general.--The Secretary shall approve 
                or disapprove a proposed strategy under 
                paragraph (1) by not later than 120 days after 
                the date of submission of the proposed 
                strategy.
                  (B) Disapproval.--If the Secretary 
                disapproves a proposed strategy under 
                subparagraph (A)--
                          (i) the Secretary shall provide to 
                        the eligible unit of local government 
                        or Indian tribe the reasons for the 
                        disapproval; and
                          (ii) the eligible unit of local 
                        government or Indian tribe may revise 
                        and resubmit the proposed strategy as 
                        many times as necessary until the 
                        Secretary approves a proposed strategy.
                  (C) Requirement.--The Secretary shall not 
                provide to an eligible unit of local government 
                or Indian tribe any grant under the program 
                until a proposed strategy of the eligible unit 
                of local government or Indian tribe is approved 
                by the Secretary under this paragraph.
          (3) Limitations on use of funds.--Of amounts provided 
        to an eligible unit of local government or Indian tribe 
        under the program, an eligible unit of local government 
        or Indian tribe may use--
                  (A) for administrative expenses, excluding 
                the cost of meeting the reporting requirements 
                of this subtitle, an amount equal to the 
                greater of--
                          (i) 10 percent; and
                          (ii) $75,000;
                  (B) for the establishment of revolving loan 
                funds, an amount equal to the greater of--
                          (i) 20 percent; and
                          (ii) $250,000; and
                  (C) for the provision of subgrants to 
                nongovernmental organizations for the purpose 
                of assisting in the implementation of the 
                energy efficiency and conservation strategy of 
                the eligible unit of local government or Indian 
                tribe, an amount equal to the greater of--
                          (i) 20 percent; and
                          (ii) $250,000.
          (4) Annual report.--Not later than 2 years after the 
        date on which funds are initially provided to an 
        eligible unit of local government or Indian tribe under 
        the program, and annually thereafter, the eligible unit 
        of local government or Indian tribe shall submit to the 
        Secretary a report describing--
                  (A) the status of development and 
                implementation of the energy efficiency and 
                conservation strategy of the eligible unit of 
                local government or Indian tribe; and
                  (B) as practicable, an assessment of energy 
                efficiency gains within the jurisdiction of the 
                eligible unit of local government or Indian 
                tribe.
  (c) States.--
          (1) Distribution of funds.--
                  (A) In general.--A State that receives a 
                grant under the program shall use not less than 
                60 percent of the amount received to provide 
                subgrants to units of local government in the 
                State that are not eligible units of local 
                government.
                  (B) Deadline.--The State shall provide the 
                subgrants required under subparagraph (A) by 
                not later than 180 days after the date on which 
                the Secretary approves a proposed energy 
                efficiency and conservation strategy of the 
                State under paragraph (3).
          (2) Revision of conservation plan; proposed 
        strategy.--Not later than 120 days after the date of 
        enactment of this Act, each State shall--
                  (A) modify the State energy conservation plan 
                of the State under section 362 of the Energy 
                Policy and Conservation Act (42 U.S.C. 6322) to 
                establish additional goals for increased energy 
                efficiency and conservation in the State; and
                  (B) submit to the Secretary a proposed energy 
                efficiency and conservation strategy that--
                          (i) establishes a process for 
                        providing subgrants as required under 
                        paragraph (1); and
                          (ii) includes a plan of the State for 
                        the use of funds received under a the 
                        program to assist the State in 
                        achieving the goals established under 
                        subparagraph (A), in accordance with 
                        sections 542(b) and 544.
          (3) Approval by secretary.--
                  (A) In general.--The Secretary shall approve 
                or disapprove a proposed strategy under 
                paragraph (2)(B) by not later than 120 days 
                after the date of submission of the proposed 
                strategy.
                  (B) Disapproval.--If the Secretary 
                disapproves a proposed strategy under 
                subparagraph (A)--
                          (i) the Secretary shall provide to 
                        the State the reasons for the 
                        disapproval; and
                          (ii) the State may revise and 
                        resubmit the proposed strategy as many 
                        times as necessary until the Secretary 
                        approves a proposed strategy.
                  (C) Requirement.--The Secretary shall not 
                provide to a State any grant under the program 
                until a proposed strategy of the State is 
                approved the Secretary under this paragraph.
          (4) Limitations on use of funds.--A State may use not 
        more than 10 percent of amounts provided under the 
        program for administrative expenses.
          (5) Annual reports.--Each State that receives a grant 
        under the program shall submit to the Secretary an 
        annual report that describes--
                  (A) the status of development and 
                implementation of the energy efficiency and 
                conservation strategy of the State during the 
                preceding calendar year;
                  (B) the status of the subgrant program of the 
                State under paragraph (1);
                  (C) the energy efficiency gains achieved 
                through the energy efficiency and conservation 
                strategy of the State during the preceding 
                calendar year; and
                  (D) specific energy efficiency and 
                conservation goals of the State for subsequent 
                calendar years.

SEC. 546. COMPETITIVE GRANTS.

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

SEC. 547. REVIEW AND EVALUATION.

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

SEC. 548. FUNDING.

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

             TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT


                        Subtitle A--Solar Energy


SEC. 601. SHORT TITLE.

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

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

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

SEC. 603. CONCENTRATING SOLAR POWER COMMERCIAL APPLICATION STUDIES.

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

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

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

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

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

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

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

SEC. 607. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

  (a) In General.--The Secretary shall establish a program of 
grants to States to demonstrate advanced photovoltaic 
technology.
  (b) Requirements.--
          (1) Ability to meet requirements.--To receive funding 
        under the program under this section, a State must 
        submit a proposal that demonstrates, to the 
        satisfaction of the Secretary, that the State will meet 
        the requirements of subsection (f).
          (2) Compliance with requirements.--If a State has 
        received funding under this section for the preceding 
        year, the State must demonstrate, to the satisfaction 
        of the Secretary, that it complied with the 
        requirements of subsection (f) in carrying out the 
        program during that preceding year, and that it will do 
        so in the future, before it can receive further funding 
        under this section.
  (c) Competition.--The Secretary shall award grants on a 
competitive basis to the States with the proposals the 
Secretary considers most likely to encourage the widespread 
adoption of photovoltaic technologies. The Secretary shall take 
into consideration the geographic distribution of awards.
  (d) Proposals.--Not later than 6 months after the date of 
enactment of this Act, and in each subsequent fiscal year for 
the life of the program, the Secretary shall solicit proposals 
from the States to participate in the program under this 
section.
  (e) Competitive Criteria.--In awarding funds in a competitive 
allocation under subsection (c), the Secretary shall consider--
          (1) the likelihood of a proposal to encourage the 
        demonstration of, or lower the costs of, advanced 
        photovoltaic technologies; and
          (2) the extent to which a proposal is likely to--
                  (A) maximize the amount of photovoltaics 
                demonstrated;
                  (B) maximize the proportion of non-Federal 
                cost share; and
                  (C) limit State administrative costs.
  (f) State Program.--A program operated by a State with 
funding under this section shall provide competitive awards for 
the demonstration of advanced photo-voltaic technologies. Each 
State program shall--
          (1) require a contribution of at least 60 percent per 
        award from non-Federal sources, which may include any 
        combination of State, local, and private funds, except 
        that at least 10 percent of the funding must be 
        supplied by the State;
          (2) endeavor to fund recipients in the commercial, 
        industrial, institutional, governmental, and 
        residential sectors;
          (3) limit State administrative costs to no more than 
        10 percent of the grant;
          (4) report annually to the Secretary on--
                  (A) the amount of funds disbursed;
                  (B) the amount of photovoltaics purchased; 
                and
                  (C) the results of the monitoring under 
                paragraph (5);
          (5) provide for measurement and verification of the 
        output of a representative sample of the photovoltaics 
        systems demonstrated throughout the average working 
        life of the systems, or at least 20 years; and
          (6) require that applicant buildings must have 
        received an independent energy efficiency audit during 
        the 6-month period preceding the filing of the 
        application.
  (g) Unexpended Funds.--If a State fails to expend any funds 
received under this section within 3 years of receipt, such 
remaining funds shall be returned to the Treasury.
  (h) Reports.--The Secretary shall report to Congress 5 years 
after funds are first distributed to the States under this 
section--
          (1) the amount of photovoltaics demonstrated;
          (2) the number of projects undertaken;
          (3) the administrative costs of the program;
          (4) the results of the monitoring under subsection 
        (f)(5); and
          (5) the total amount of funds distributed, including 
        a breakdown by State.
  (i) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary for the purposes of carrying 
out this section--
          (1) $15,000,000 for fiscal year 2008;
          (2) $30,000,000 for fiscal year 2009;
          (3) $45,000,000 for fiscal year 2010;
          (4) $60,000,000 for fiscal year 2011; and
          (5) $70,000,000 for fiscal year 2012.

                     Subtitle B--Geothermal Energy


SEC. 611. SHORT TITLE.

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

SEC. 612. DEFINITIONS.

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

SEC. 613. HYDROTHERMAL RESEARCH AND DEVELOPMENT.

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

SEC. 614. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

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

SEC. 615. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

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

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

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

SEC. 617. COST SHARING AND PROPOSAL EVALUATION.

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

SEC. 618. CENTER FOR GEOTHERMAL TECHNOLOGY TRANSFER.

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

SEC. 619. GEOPOWERING AMERICA.

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

SEC. 620. EDUCATIONAL PILOT PROGRAM.

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

SEC. 621. REPORTS.

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

SEC. 622. APPLICABILITY OF OTHER LAWS.

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

SEC. 623. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Secretary to 
carry out this subtitle $90,000,000 for each of the fiscal 
years 2008 through 2012, of which $10,000,000 for each fiscal 
year shall be for carrying out section 616. There are also 
authorized to be appropriated to the Secretary for the 
Intermountain West Geothermal Consortium $5,000,000 for each of 
the fiscal years 2008 through 2012.

SEC. 624. INTERNATIONAL GEOTHERMAL ENERGY DEVELOPMENT.

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

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

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

   Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies


SEC. 631. SHORT TITLE.

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

SEC. 632. DEFINITION.

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

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

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

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

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

SEC. 635. APPLICABILITY OF OTHER LAWS.

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

SEC. 636. AUTHORIZATION OF APPROPRIATIONS.

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

    Subtitle D--Energy Storage for Transportation and Electric Power


SEC. 641. ENERGY STORAGE COMPETITIVENESS.

  (a) Short Title.--This section may be cited as the ``United 
States Energy Storage Competitiveness Act of 2007''.
  (b) Definitions.--In this section:
          (1) Council.--The term ``Council'' means the Energy 
        Storage Advisory Council established under subsection 
        (e).
          (2) Compressed air energy storage.--The term 
        ``compressed air energy storage'' means, in the case of 
        an electricity grid application, the storage of energy 
        through the compression of air.
          (3) Electric drive vehicle.--The term ``electric 
        drive vehicle'' means--
                  (A) a vehicle that uses an electric motor for 
                all or part of the motive power of the vehicle, 
                including battery electric, hybrid electric, 
                plug-in hybrid electric, fuel cell, and plug-in 
                fuel cell vehicles and rail transportation 
                vehicles; or
                  (B) mobile equipment that uses an electric 
                motor to replace an internal combustion engine 
                for all or part of the work of the equipment.
          (4) Islanding.--The term ``islanding'' means a 
        distributed generator or energy storage device 
        continuing to power a location in the absence of 
        electric power from the primary source.
          (5) Flywheel.--The term ``flywheel'' means, in the 
        case of an electricity grid application, a device used 
        to store rotational kinetic energy.
          (6) Microgrid.--The term ``microgrid'' means an 
        integrated energy system consisting of interconnected 
        loads and distributed energy resources (including 
        generators and energy storage devices), which as an 
        integrated system can operate in parallel with the 
        utility grid or in an intentional islanding mode.
          (7) Self-healing grid.--The term ``self-healing 
        grid'' means a grid that is capable of automatically 
        anticipating and responding to power system 
        disturbances (including the isolation of failed 
        sections and components), while optimizing the 
        performance and service of the grid to customers.
          (8) Spinning reserve services.--The term ``spinning 
        reserve services'' means a quantity of electric 
        generating capacity in excess of the quantity needed to 
        meet peak electric demand.
          (9) Ultracapacitor.--The term ``ultracapacitor'' 
        means an energy storage device that has a power density 
        comparable to a conventional capacitor but is capable 
        of exceeding the energy density of a conventional 
        capacitor by several orders of magnitude.
  (c) Program.--The Secretary shall carry out a research, 
development, and demonstration program to support the ability 
of the United States to remain globally competitive in energy 
storage systems for electric drive vehicles, stationary 
applications, and electricity transmission and distribution.
  (d) Coordination.--In carrying out the activities of this 
section, the Secretary shall coordinate relevant efforts with 
appropriate Federal agencies, including the Department of 
Transportation.
  (e) Energy Storage Advisory Council.--
          (1) Establishment.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        establish an Energy Storage Advisory Council.
          (2) Composition.--
                  (A) In general.--Subject to subparagraph (B), 
                the Council shall consist of not less than 15 
                individuals appointed by the Secretary, based 
                on recommendations of the National Academy of 
                Sciences.
                  (B) Energy storage industry.--The Council 
                shall consist primarily of representatives of 
                the energy storage industry of the United 
                States.
                  (C) Chairperson.--The Secretary shall select 
                a Chairperson for the Council from among the 
                members appointed under subparagraph (A).
          (3) Meetings.--
                  (A) In general.--The Council shall meet not 
                less than once a year.
                  (B) Federal advisory committee act.--The 
                Federal Advisory Committee Act (5 U.S.C. App.) 
                shall apply to a meeting of the Council.
          (4) Plans.--No later than 1 year after the date of 
        enactment of this Act and every 5 years thereafter, the 
        Council, in conjunction with the Secretary, shall 
        develop a 5-year plan for integrating basic and applied 
        research so that the United States retains a globally 
        competitive domestic energy storage industry for 
        electric drive vehicles, stationary applications, and 
        electricity transmission and distribution.
          (5) Review.--The Council shall--
                  (A) assess, every 2 years, the performance of 
                the Department in meeting the goals of the 
                plans developed under paragraph (4); and
                  (B) make specific recommendations to the 
                Secretary on programs or activities that should 
                be established or terminated to meet those 
                goals.
  (f) Basic Research Program.--
          (1) Basic research.--The Secretary shall conduct a 
        basic research program on energy storage systems to 
        support electric drive vehicles, stationary 
        applications, and electricity transmission and 
        distribution, including--
                  (A) materials design;
                  (B) materials synthesis and characterization;
                  (C) electrode-active materials, including 
                electrolytes and bioelectrolytes;
                  (D) surface and interface dynamics;
                  (E) modeling and simulation; and
                  (F) thermal behavior and life degradation 
                mechanisms.
          (2) Nanoscience centers.--The Secretary, in 
        cooperation with the Council, shall coordinate the 
        activities of the nanoscience centers of the Department 
        to help the energy storage research centers of the 
        Department maintain a globally competitive posture in 
        energy storage systems for electric drive vehicles, 
        stationary applications, and electricity transmission 
        and distribution.
          (3) Funding.--For activities carried out under this 
        subsection, in addition to funding activities at 
        National Laboratories, the Secretary shall award funds 
        to, and coordinate activities with, a range of 
        stakeholders including the public, private, and 
        academic sectors.
  (g) Applied Research Program.--
          (1) In general.--The Secretary shall conduct an 
        applied research program on energy storage systems to 
        support electric drive vehicles, stationary 
        applications, and electricity transmission and 
        distribution technologies, including--
                  (A) ultracapacitors;
                  (B) flywheels;
                  (C) batteries and battery systems (including 
                flow batteries);
                  (D) compressed air energy systems;
                  (E) power conditioning electronics;
                  (F) manufacturing technologies for energy 
                storage systems;
                  (G) thermal management systems; and
                  (H) hydrogen as an energy storage medium.
          (2) Funding.--For activities carried out under this 
        subsection, in addition to funding activities at 
        National Laboratories, the Secretary shall provide 
        funds to, and coordinate activities with, a range of 
        stakeholders, including the public, private, and 
        academic sectors.
  (h) Energy Storage Research Centers.--
          (1) In general.--The Secretary shall establish, 
        through competitive bids, not more than 4 energy 
        storage research centers to translate basic research 
        into applied technologies to advance the capability of 
        the United States to maintain a globally competitive 
        posture in energy storage systems for electric drive 
        vehicles, stationary applications, and electricity 
        transmission and distribution.
          (2) Program management.--The centers shall be managed 
        by the Under Secretary for Science of the Department.
          (3) Participation agreements.--As a condition of 
        participating in a center, a participant shall enter 
        into a participation agreement with the center that 
        requires that activities conducted by the participant 
        for the center promote the goal of enabling the United 
        States to compete successfully in global energy storage 
        markets.
          (4) Plans.--A center shall conduct activities that 
        promote the achievement of the goals of the plans of 
        the Council under subsection (e)(4).
          (5) National laboratories.--A national laboratory (as 
        defined in section 2 of the Energy Policy Act of 2005 
        (42 U.S.C. 15801)) may participate in a center 
        established under this subsection, including a 
        cooperative research and development agreement (as 
        defined in section 12(d) of the Stevenson-Wydler 
        Technology Innovation Act of 1980 (15 U.S.C. 
        3710a(d))).
          (6) Disclosure.--Section 623 of the Energy Policy Act 
        of 1992 (42 U.S.C. 13293) may apply to any project 
        carried out through a grant, contract, or cooperative 
        agreement under this subsection.
          (7) Intellectual property.--In accordance with 
        section 202(a)(ii) of title 35, United States Code, 
        section 152 of the Atomic Energy Act of 1954 (42 U.S.C. 
        2182), and section 9 of the Federal Nonnuclear Energy 
        Research and Development Act of 1974 (42 U.S.C. 5908), 
        the Secretary may require, for any new invention 
        developed under this subsection, that--
                  (A) if an industrial participant is active in 
                a energy storage research center established 
                under this subsection relating to the 
                advancement of energy storage technologies 
                carried out, in whole or in part, with Federal 
                funding, the industrial participant be granted 
                the first option to negotiate with the 
                invention owner, at least in the field of 
                energy storage technologies, nonexclusive 
                licenses, and royalties on terms that are 
                reasonable, as determined by the Secretary;
                  (B) if 1 or more industry participants are 
                active in a center, during a 2-year period 
                beginning on the date on which an invention is 
                made--
                          (i) the patent holder shall not 
                        negotiate any license or royalty 
                        agreement with any entity that is not 
                        an industrial participant under this 
                        subsection; and
                          (ii) the patent holder shall 
                        negotiate nonexclusive licenses and 
                        royalties in good faith with any 
                        interested industrial participant under 
                        this subsection; and
                  (C) the new invention be developed under such 
                other terms as the Secretary determines to be 
                necessary to promote the accelerated 
                commercialization of inventions made under this 
                subsection to advance the capability of the 
                United States to successfully compete in global 
                energy storage markets.
  (i) Energy Storage Systems Demonstrations.--
          (1) In general.--The Secretary shall carry out a 
        program of new demonstrations of advanced energy 
        storage systems.
          (2) Scope.--The demonstrations shall--
                  (A) be regionally diversified; and
                  (B) expand on the existing technology 
                demonstration program of the Department.
          (3) Stakeholders.--In carrying out the 
        demonstrations, the Secretary shall, to the maximum 
        extent practicable, include the participation of a 
        range of stakeholders, including--
                  (A) rural electric cooperatives;
                  (B) investor owned utilities;
                  (C) municipally owned electric utilities;
                  (D) energy storage systems manufacturers;
                  (E) electric drive vehicle manufacturers;
                  (F) the renewable energy production industry;
                  (G) State or local energy offices;
                  (H) the fuel cell industry; and
                  (I) institutions of higher education.
          (4) Objectives.--Each of the demonstrations shall 
        include 1 or more of the following:
                  (A) Energy storage to improve the feasibility 
                of microgrids or islanding, or transmission and 
                distribution capability, to improve reliability 
                in rural areas.
                  (B) Integration of an energy storage system 
                with a self-healing grid.
                  (C) Use of energy storage to improve security 
                to emergency response infrastructure and ensure 
                availability of emergency backup power for 
                consumers.
                  (D) Integration with a renewable energy 
                production source, at the source or away from 
                the source.
                  (E) Use of energy storage to provide 
                ancillary services, such as spinning reserve 
                services, for grid management.
                  (F) Advancement of power conversion systems 
                to make the systems smarter, more efficient, 
                able to communicate with other inverters, and 
                able to control voltage.
                  (G) Use of energy storage to optimize 
                transmission and distribution operation and 
                power quality, which could address overloaded 
                lines and maintenance of transformers and 
                substations.
                  (H) Use of advanced energy storage for peak 
                load management of homes, businesses, and the 
                grid.
                  (I) Use of energy storage devices to store 
                energy during nonpeak generation periods to 
                make better use of existing grid assets.
  (j) Vehicle Energy Storage Demonstration.--
          (1) In general.--The Secretary shall carry out a 
        program of electric drive vehicle energy storage 
        technology demonstrations.
          (2) Consortia.--The technology demonstrations shall 
        be conducted through consortia, which may include--
                  (A) energy storage systems manufacturers and 
                suppliers of the manufacturers;
                  (B) electric drive vehicle manufacturers;
                  (C) rural electric cooperatives;
                  (D) investor owned utilities;
                  (E) municipal and rural electric utilities;
                  (F) State and local governments;
                  (G) metropolitan transportation authorities; 
                and
                  (H) institutions of higher education.
          (3) Objectives.--The program shall demonstrate 1 or 
        more of the following:
                  (A) Novel, high capacity, high efficiency 
                energy storage, charging, and control systems, 
                along with the collection of data on 
                performance characteristics, such as battery 
                life, energy storage capacity, and power 
                delivery capacity.
                  (B) Advanced onboard energy management 
                systems and highly efficient battery cooling 
                systems.
                  (C) Integration of those systems on a 
                prototype vehicular platform, including with 
                drivetrain systems for passenger, commercial, 
                and nonroad electric drive vehicles.
                  (D) New technologies and processes that 
                reduce manufacturing costs.
                  (E) Integration of advanced vehicle 
                technologies with electricity distribution 
                system and smart metering technology.
                  (F) Control systems that minimize emissions 
                profiles in cases in which clean diesel engines 
                are part of a plug-in hybrid drive system.
  (k) Secondary Applications and Disposal of Electric Drive 
Vehicle Batteries.--The Secretary shall carry out a program of 
research, development, and demonstration of--
          (1) secondary applications of energy storage devices 
        following service in electric drive vehicles; and
          (2) technologies and processes for final recycling 
        and disposal of the devices.
  (l) Cost Sharing.--The Secretary shall carry out the programs 
established under this section in accordance with section 988 
of the Energy Policy Act of 2005 (42 U.S.C. 16352).
  (m) Merit Review of Proposals.--The Secretary shall carry out 
the programs established under subsections (i), (j), and (k) in 
accordance with section 989 of the Energy Policy Act of 2005 
(42 U.S.C. 16353).
  (n) Coordination and Nonduplication.--To the maximum extent 
practicable, the Secretary shall coordinate activities under 
this section with other programs and laboratories of the 
Department and other Federal research programs.
  (o) Review by National Academy of Sciences.--On the business 
day that is 5 years after the date of enactment of this Act, 
the Secretary shall offer to enter into an arrangement with the 
National Academy of Sciences to assess the performance of the 
Department in carrying out this section.
  (p) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out--
          (1) the basic research program under subsection (f) 
        $50,000,000 for each of fiscal years 2009 through 2018;
          (2) the applied research program under subsection (g) 
        $80,000,000 for each of fiscal years 2009 through 2018; 
        and;
          (3) the energy storage research center program under 
        subsection (h) $100,000,000 for each of fiscal years 
        2009 through 2018;
          (4) the energy storage systems demonstration program 
        under subsection (i) $30,000,000 for each of fiscal 
        years 2009 through 2018;
          (5) the vehicle energy storage demonstration program 
        under subsection (j) $30,000,000 for each of fiscal 
        years 2009 through 2018; and
          (6) the secondary applications and disposal of 
        electric drive vehicle batteries program under 
        subsection (k) $5,000,000 for each of fiscal years 2009 
        through 2018.

                  Subtitle E--Miscellaneous Provisions


SEC. 651. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

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

SEC. 652. COMMERCIAL INSULATION DEMONSTRATION PROGRAM.

  (a) Definitions.--In this section:
          (1) Advanced insulation.--The term ``advanced 
        insulation'' means insulation that has an R value of 
        not less than R35 per inch.
          (2) Covered refrigeration unit.--The term ``covered 
        refrigeration unit'' means any--
                  (A) commercial refrigerated truck;
                  (B) commercial refrigerated trailer; or
                  (C) commercial refrigerator, freezer, or 
                refrigerator-freezer described in section 
                342(c) of the Energy Policy and Conservation 
                Act (42 U.S.C. 6313(c)).
  (b) Report.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that includes an evaluation of--
          (1) the state of technological advancement of 
        advanced insulation; and
          (2) the projected amount of cost savings that would 
        be generated by implementing advanced insulation into 
        covered refrigeration units.
  (c) Demonstration Program.--
          (1) Establishment.--If the Secretary determines in 
        the report described in subsection (b) that the 
        implementation of advanced insulation into covered 
        refrigeration units would generate an economically 
        justifiable amount of cost savings, the Secretary, in 
        cooperation with manufacturers of covered refrigeration 
        units, shall establish a demonstration program under 
        which the Secretary shall demonstrate the cost-
        effectiveness of advanced insulation.
          (2) Disclosure.--The Secretary may, for a period of 
        up to five years after an award is granted under the 
        demonstration program, exempt from mandatory disclosure 
        under section 552 of title 5, United States Code 
        (popularly known as the Freedom of Information Act) 
        information that the Secretary determines would be a 
        privileged or confidential trade secret or commercial 
        or financial information under subsection (b)(4) of 
        such section if the information had been obtained from 
        a non-Government party.
          (3) Cost-sharing.--Section 988 of the Energy Policy 
        Act of 2005 (42 U.S.C. 16352) shall apply to any 
        project carried out under this subsection.
  (d) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $8,000,000 for the 
period of fiscal years 2009 through 2014.

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

  Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005 (42 
U.S.C. 15962(b)(1)(B)(ii)) is amended by striking subclause (I) 
and inserting the following:
                                  ``(I)(aa) to remove at least 
                                99 percent of sulfur dioxide; 
                                or
                                  ``(bb) to emit not more than 
                                0.04 pound SO2 per 
                                million Btu, based on a 30-day 
                                average;''.

SEC. 654. H-PRIZE.

  Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 
16396) is amended by adding at the end the following new 
subsection:
  ``(f) H-Prize.--
          ``(1) Prize authority.--
                  ``(A) In general.--As part of the program 
                under this section, the Secretary shall carry 
                out a program to competitively award cash 
                prizes in conformity with this subsection to 
                advance the research, development, 
                demonstration, and commercial application of 
                hydrogen energy technologies.
                  ``(B) Advertising and solicitation of 
                competitors.--
                          ``(i) Advertising.--The Secretary 
                        shall widely advertise prize 
                        competitions under this subsection to 
                        encourage broad participation, 
                        including by individuals, universities 
                        (including historically Black colleges 
                        and universities and other minority 
                        serving institutions), and large and 
                        small businesses (including businesses 
                        owned or controlled by socially and 
                        economically disadvantaged persons).
                          ``(ii) Announcement through federal 
                        register notice.--The Secretary shall 
                        announce each prize competition under 
                        this subsection by publishing a notice 
                        in the Federal Register. This notice 
                        shall include essential elements of the 
                        competition such as the subject of the 
                        competition, the duration of the 
                        competition, the eligibility 
                        requirements for participation in the 
                        competition, the process for 
                        participants to register for the 
                        competition, the amount of the prize, 
                        and the criteria for awarding the 
                        prize.
                  ``(C) Administering the competitions.--The 
                Secretary shall enter into an agreement with a 
                private, nonprofit entity to administer the 
                prize competitions under this subsection, 
                subject to the provisions of this subsection 
                (in this subsection referred to as the 
                `administering entity'). The duties of the 
                administering entity under the agreement shall 
                include--
                          ``(i) advertising prize competitions 
                        under this subsection and their 
                        results;
                          ``(ii) raising funds from private 
                        entities and individuals to pay for 
                        administrative costs and to contribute 
                        to cash prizes, including funds 
                        provided in exchange for the right to 
                        name a prize awarded under this 
                        subsection;
                          ``(iii) developing, in consultation 
                        with and subject to the final approval 
                        of the Secretary, the criteria for 
                        selecting winners in prize competitions 
                        under this subsection, based on goals 
                        provided by the Secretary;
                          ``(iv) determining, in consultation 
                        with the Secretary, the appropriate 
                        amount and funding sources for each 
                        prize to be awarded under this 
                        subsection, subject to the final 
                        approval of the Secretary with respect 
                        to Federal funding;
                          ``(v) providing advice and 
                        consultation to the Secretary on the 
                        selection of judges in accordance with 
                        paragraph (2)(D), using criteria 
                        developed in consultation with and 
                        subject to the final approval of the 
                        Secretary; and
                          ``(vi) protecting against the 
                        administering entity's unauthorized use 
                        or disclosure of a registered 
                        participant's trade secrets and 
                        confidential business information. Any 
                        information properly identified as 
                        trade secrets or confidential business 
                        information that is submitted by a 
                        participant as part of a competitive 
                        program under this subsection may be 
                        withheld from public disclosure.
                  ``(D) Funding sources.--Prizes under this 
                subsection shall consist of Federal 
                appropriated funds and any funds provided by 
                the administering entity (including funds 
                raised pursuant to subparagraph (C)(ii)) for 
                such cash prize programs. The Secretary may 
                accept funds from other Federal agencies for 
                such cash prizes and, notwithstanding section 
                3302(b) of title 31, United States Code, may 
                use such funds for the cash prize program under 
                this subsection. Other than publication of the 
                names of prize sponsors, the Secretary may not 
                give any special consideration to any private 
                sector entity or individual in return for a 
                donation to the Secretary or administering 
                entity.
                  ``(E) Announcement of prizes.--The Secretary 
                may not issue a notice required by subparagraph 
                (B)(ii) until all the funds needed to pay out 
                the announced amount of the prize have been 
                appropriated or committed in writing by the 
                administering entity. The Secretary may 
                increase the amount of a prize after an initial 
                announcement is made under subparagraph (B)(ii) 
                if--
                          ``(i) notice of the increase is 
                        provided in the same manner as the 
                        initial notice of the prize; and
                          ``(ii) the funds needed to pay out 
                        the announced amount of the increase 
                        have been appropriated or committed in 
                        writing by the administering entity.
                  ``(F) Sunset.--The authority to announce 
                prize competitions under this subsection shall 
                terminate on September 30, 2018.
          ``(2) Prize categories.--
                  ``(A) Categories.--The Secretary shall 
                establish prizes under this subsection for--
                          ``(i) advancements in technologies, 
                        components, or systems related to--
                                  ``(I) hydrogen production;
                                  ``(II) hydrogen storage;
                                  ``(III) hydrogen 
                                distribution; and
                                  ``(IV) hydrogen utilization;
                          ``(ii) prototypes of hydrogen-powered 
                        vehicles or other hydrogen-based 
                        products that best meet or exceed 
                        objective performance criteria, such as 
                        completion of a race over a certain 
                        distance or terrain or generation of 
                        energy at certain levels of efficiency; 
                        and
                          ``(iii) transformational changes in 
                        technologies for the distribution or 
                        production of hydrogen that meet or 
                        exceed far-reaching objective criteria, 
                        which shall include minimal carbon 
                        emissions and which may include cost 
                        criteria designed to facilitate the 
                        eventual market success of a winning 
                        technology.
                  ``(B) Awards.--
                          ``(i) Advancements.--To the extent 
                        permitted under paragraph (1)(E), the 
                        prizes authorized under subparagraph 
                        (A)(i) shall be awarded biennially to 
                        the most significant advance made in 
                        each of the four subcategories 
                        described in subclauses (I) through 
                        (IV) of subparagraph (A)(i) since the 
                        submission deadline of the previous 
                        prize competition in the same category 
                        under subparagraph (A)(i) or the date 
                        of enactment of this subsection, 
                        whichever is later, unless no such 
                        advance is significant enough to merit 
                        an award. No one such prize may exceed 
                        $1,000,000. If less than $4,000,000 is 
                        available for a prize competition under 
                        subparagraph (A)(i), the Secretary may 
                        omit one or more subcategories, reduce 
                        the amount of the prizes, or not hold a 
                        prize competition.
                          ``(ii) Prototypes.--To the extent 
                        permitted under paragraph (1)(E), 
                        prizes authorized under subparagraph 
                        (A)(ii) shall be awarded biennially in 
                        alternate years from the prizes 
                        authorized under subparagraph (A)(i). 
                        The Secretary is authorized to award up 
                        to one prize in this category in each 
                        2-year period. No such prize may exceed 
                        $4,000,000. If no registered 
                        participants meet the objective 
                        performance criteria established 
                        pursuant to subparagraph (C) for a 
                        competition under this clause, the 
                        Secretary shall not award a prize.
                          ``(iii) Transformational 
                        technologies.--To the extent permitted 
                        under paragraph (1)(E), the Secretary 
                        shall announce one prize competition 
                        authorized under subparagraph (A)(iii) 
                        as soon after the date of enactment of 
                        this subsection as is practicable. A 
                        prize offered under this clause shall 
                        be not less than $10,000,000, paid to 
                        the winner in a lump sum, and an 
                        additional amount paid to the winner as 
                        a match for each dollar of private 
                        funding raised by the winner for the 
                        hydrogen technology beginning on the 
                        date the winner was named. The match 
                        shall be provided for 3 years after the 
                        date the prize winner is named or until 
                        the full amount of the prize has been 
                        paid out, whichever occurs first. A 
                        prize winner may elect to have the 
                        match amount paid to another entity 
                        that is continuing the development of 
                        the winning technology. The Secretary 
                        shall announce the rules for receiving 
                        the match in the notice required by 
                        paragraph (1)(B)(ii). The Secretary 
                        shall award a prize under this clause 
                        only when a registered participant has 
                        met the objective criteria established 
                        for the prize pursuant to subparagraph 
                        (C) and announced pursuant to paragraph 
                        (1)(B)(ii). Not more than $10,000,000 
                        in Federal funds may be used for the 
                        prize award under this clause. The 
                        administering entity shall seek to 
                        raise $40,000,000 toward the matching 
                        award under this clause.
                  ``(C) Criteria.--In establishing the criteria 
                required by this subsection, the Secretary--
                          ``(i) shall consult with the 
                        Department's Hydrogen Technical and 
                        Fuel Cell Advisory Committee;
                          ``(ii) shall consult with other 
                        Federal agencies, including the 
                        National Science Foundation; and
                          ``(iii) may consult with other 
                        experts such as private organizations, 
                        including professional societies, 
                        industry associations, and the National 
                        Academy of Sciences and the National 
                        Academy of Engineering.
                  ``(D) Judges.--For each prize competition 
                under this subsection, the Secretary in 
                consultation with the administering entity 
                shall assemble a panel of qualified judges to 
                select the winner or winners on the basis of 
                the criteria established under subparagraph 
                (C). Judges for each prize competition shall 
                include individuals from outside the 
                Department, including from the private sector. 
                A judge, spouse, minor children, and members of 
                the judge's household may not--
                          ``(i) have personal or financial 
                        interests in, or be an employee, 
                        officer, director, or agent of, any 
                        entity that is a registered participant 
                        in the prize competition for which he 
                        or she will serve as a judge; or
                          ``(ii) have a familial or financial 
                        relationship with an individual who is 
                        a registered participant in the prize 
                        competition for which he or she will 
                        serve as a judge.
          ``(3) Eligibility.--To be eligible to win a prize 
        under this subsection, an individual or entity--
                  ``(A) shall have complied with all the 
                requirements in accordance with the Federal 
                Register notice required under paragraph 
                (1)(B)(ii);
                  ``(B) in the case of a private entity, shall 
                be incorporated in and maintain a primary place 
                of business in the United States, and in the 
                case of an individual, whether participating 
                singly or in a group, shall be a citizen of, or 
                an alien lawfully admitted for permanent 
                residence in, the United States; and
                  ``(C) shall not be a Federal entity, a 
                Federal employee acting within the scope of his 
                employment, or an employee of a national 
                laboratory acting within the scope of his 
                employment.
          ``(4) Intellectual property.--The Federal Government 
        shall not, by virtue of offering or awarding a prize 
        under this subsection, be entitled to any intellectual 
        property rights derived as a consequence of, or direct 
        relation to, the participation by a registered 
        participant in a competition authorized by this 
        subsection. This paragraph shall not be construed to 
        prevent the Federal Government from negotiating a 
        license for the use of intellectual property developed 
        for a prize competition under this subsection.
          ``(5) Liability.--
                  ``(A) Waiver of liability.--The Secretary may 
                require registered participants to waive claims 
                against the Federal Government and the 
                administering entity (except claims for willful 
                misconduct) for any injury, death, damage, or 
                loss of property, revenue, or profits arising 
                from the registered participants' participation 
                in a competition under this subsection. The 
                Secretary shall give notice of any waiver 
                required under this subparagraph in the notice 
                required by paragraph (1)(B)(ii). The Secretary 
                may not require a registered participant to 
                waive claims against the administering entity 
                arising out of the unauthorized use or 
                disclosure by the administering entity of the 
                registered participant's trade secrets or 
                confidential business information.
                  ``(B) Liability insurance.--
                          ``(i) Requirements.--Registered 
                        participants in a prize competition 
                        under this subsection shall be required 
                        to obtain liability insurance or 
                        demonstrate financial responsibility, 
                        in amounts determined by the Secretary, 
                        for claims by--
                                  ``(I) a third party for 
                                death, bodily injury, or 
                                property damage or loss 
                                resulting from an activity 
                                carried out in connection with 
                                participation in a competition 
                                under this subsection; and
                                  ``(II) the Federal Government 
                                for damage or loss to 
                                Government property resulting 
                                from such an activity.
                          ``(ii) Federal government insured.--
                        The Federal Government shall be named 
                        as an additional insured under a 
                        registered participant's insurance 
                        policy required under clause (i)(I), 
                        and registered participants shall be 
                        required to agree to indemnify the 
                        Federal Government against third party 
                        claims for damages arising from or 
                        related to competition activities under 
                        this subsection.
          ``(6) Report to congress.--Not later than 60 days 
        after the awarding of the first prize under this 
        subsection, and annually thereafter, the Secretary 
        shall transmit to the Congress a report that--
                  ``(A) identifies each award recipient;
                  ``(B) describes the technologies developed by 
                each award recipient; and
                  ``(C) specifies actions being taken toward 
                commercial application of all technologies with 
                respect to which a prize has been awarded under 
                this subsection.
          ``(7) Authorization of appropriations.--
                  ``(A) In general.--
                          ``(i) Awards.--There are authorized 
                        to be appropriated to the Secretary for 
                        the period encompassing fiscal years 
                        2008 through 2017 for carrying out this 
                        subsection--
                                  ``(I) $20,000,000 for awards 
                                described in paragraph 
                                (2)(A)(i);
                                  ``(II) $20,000,000 for awards 
                                described in paragraph 
                                (2)(A)(ii); and
                                  ``(III) $10,000,000 for the 
                                award described in paragraph 
                                (2)(A)(iii).
                          ``(ii) Administration.--In addition 
                        to the amounts authorized in clause 
                        (i), there are authorized to be 
                        appropriated to the Secretary for each 
                        of fiscal years 2008 and 2009 
                        $2,000,000 for the administrative costs 
                        of carrying out this subsection.
                  ``(B) Carryover of funds.--Funds appropriated 
                for prize awards under this subsection shall 
                remain available until expended, and may be 
                transferred, reprogrammed, or expended for 
                other purposes only after the expiration of 10 
                fiscal years after the fiscal year for which 
                the funds were originally appropriated. No 
                provision in this subsection permits obligation 
                or payment of funds in violation of section 
                1341 of title 31 of the United States Code 
                (commonly referred to as the Anti-Deficiency 
                Act).
          ``(8) Nonsubstitution.--The programs created under 
        this subsection shall not be considered a substitute 
        for Federal research and development programs.''.

SEC. 655. BRIGHT TOMORROW LIGHTING PRIZES.

  (a) Establishment.--Not later than 1 year after the date of 
enactment of this Act, as part of the program carried out under 
section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 
16396), the Secretary shall establish and award Bright Tomorrow 
Lighting Prizes for solid state lighting in accordance with 
this section.
  (b) Prize Specifications.--
          (1) 60-watt incandescent replacement lamp prize.--The 
        Secretary shall award a 60-Watt Incandescent 
        Replacement Lamp Prize to an entrant that produces a 
        solid-state light package simultaneously capable of--
                  (A) producing a luminous flux greater than 
                900 lumens;
                  (B) consuming less than or equal to 10 watts;
                  (C) having an efficiency greater than 90 
                lumens per watt;
                  (D) having a color rendering index greater 
                than 90;
                  (E) having a correlated color temperature of 
                not less than 2,750, and not more than 3,000, 
                degrees Kelvin;
                  (F) having 70 percent of the lumen value 
                under subparagraph (A) exceeding 25,000 hours 
                under typical conditions expected in 
                residential use;
                  (G) having a light distribution pattern 
                similar to a soft 60-watt incandescent A19 
                bulb;
                  (H) having a size and shape that fits within 
                the maximum dimensions of an A19 bulb in 
                accordance with American National Standards 
                Institute standard C78.20-2003, figure C78.20-
                211;
                  (I) using a single contact medium screw 
                socket; and
                  (J) mass production for a competitive sales 
                commercial market satisfied by producing 
                commercially accepted quality control lots of 
                such units equal to or exceeding the criteria 
                described in subparagraphs (A) through (I).
          (2) PAR type 38 halogen replacement lamp prize.--The 
        Secretary shall award a Parabolic Aluminized Reflector 
        Type 38 Halogen Replacement Lamp Prize (referred to in 
        this section as the ``PAR Type 38 Halogen Replacement 
        Lamp Prize'') to an entrant that produces a solid-
        state-light package simultaneously capable of--
                  (A) producing a luminous flux greater than or 
                equal to 1,350 lumens;
                  (B) consuming less than or equal to 11 watts;
                  (C) having an efficiency greater than 123 
                lumens per watt;
                  (D) having a color rendering index greater 
                than or equal to 90;
                  (E) having a correlated color coordinate 
                temperature of not less than 2,750, and not 
                more than 3,000, degrees Kelvin;
                  (F) having 70 percent of the lumen value 
                under subparagraph (A) exceeding 25,000 hours 
                under typical conditions expected in 
                residential use;
                  (G) having a light distribution pattern 
                similar to a PAR 38 halogen lamp;
                  (H) having a size and shape that fits within 
                the maximum dimensions of a PAR 38 halogen lamp 
                in accordance with American National Standards 
                Institute standard C78-21-2003, figure C78.21-
                238;
                  (I) using a single contact medium screw 
                socket; and
                  (J) mass production for a competitive sales 
                commercial market satisfied by producing 
                commercially accepted quality control lots of 
                such units equal to or exceeding the criteria 
                described in subparagraphs (A) through (I).
          (3) Twenty-first century lamp prize.--The Secretary 
        shall award a Twenty-First Century Lamp Prize to an 
        entrant that produces a solid-state-light-light capable 
        of--
                  (A) producing a light output greater than 
                1,200 lumens;
                  (B) having an efficiency greater than 150 
                lumens per watt;
                  (C) having a color rendering index greater 
                than 90;
                  (D) having a color coordinate temperature 
                between 2,800 and 3,000 degrees Kelvin; and
                  (E) having a lifetime exceeding 25,000 hours.
  (c) Private Funds.--
          (1) In general.--Subject to paragraph (2), and 
        notwithstanding section 3302 of title 31, United States 
        Code, the Secretary may accept, retain, and use funds 
        contributed by any person, government entity, or 
        organization for purposes of carrying out this 
        subsection--
                  (A) without further appropriation; and
                  (B) without fiscal year limitation.
          (2) Prize competition.--A private source of funding 
        may not participate in the competition for prizes 
        awarded under this section.
  (d) Technical Review.--The Secretary shall establish a 
technical review committee composed of non-Federal officers to 
review entrant data submitted under this section to determine 
whether the data meets the prize specifications described in 
subsection (b).
  (e) Third Party Administration.--The Secretary may 
competitively select a third party to administer awards under 
this section.
  (f) Eligibility for Prizes.--To be eligible to be awarded a 
prize under this section--
          (1) in the case of a private entity, the entity shall 
        be incorporated in and maintain a primary place of 
        business in the United States; and
          (2) in the case of an individual (whether 
        participating as a single individual or in a group), 
        the individual shall be a citizen or lawful permanent 
        resident of the United States.
  (g) Award Amounts.--Subject to the availability of funds to 
carry out this section, the amount of--
          (1) the 60-Watt Incandescent Replacement Lamp Prize 
        described in subsection (b)(1) shall be $10,000,000;
          (2) the PAR Type 38 Halogen Replacement Lamp Prize 
        described in subsection (b)(2) shall be $5,000,000; and
          (3) the Twenty-First Century Lamp Prize described in 
        subsection (b)(3) shall be $5,000,000.
  (h) Federal Procurement of Solid-State-Lights.--
          (1) 60-watt incandescent replacement.--Subject to 
        paragraph (3), as soon as practicable after the 
        successful award of the 60-Watt Incandescent 
        Replacement Lamp Prize under subsection (b)(1), the 
        Secretary (in consultation with the Administrator of 
        General Services) shall develop governmentwide Federal 
        purchase guidelines with a goal of replacing the use of 
        60-watt incandescent lamps in Federal Government 
        buildings with a solid-state-light package described in 
        subsection (b)(1) by not later than the date that is 5 
        years after the date the award is made.
          (2) PAR 38 halogen replacement lamp replacement.--
        Subject to paragraph (3), as soon as practicable after 
        the successful award of the PAR Type 38 Halogen 
        Replacement Lamp Prize under subsection (b)(2), the 
        Secretary (in consultation with the Administrator of 
        General Services) shall develop governmentwide Federal 
        purchase guidelines with the goal of replacing the use 
        of PAR 38 halogen lamps in Federal Government buildings 
        with a solid-state-light package described in 
        subsection (b)(2) by not later than the date that is 5 
        years after the date the award is made.
          (3) Waivers.--
                  (A) In general.--The Secretary or the 
                Administrator of General Services may waive the 
                application of paragraph (1) or (2) if the 
                Secretary or Administrator determines that the 
                return on investment from the purchase of a 
                solid-state-light package described in 
                paragraph (1) or (2) of subsection (b), 
                respectively, is cost prohibitive.
                  (B) Report of waiver.--If the Secretary or 
                Administrator waives the application of 
                paragraph (1) or (2), the Secretary or 
                Administrator, respectively, shall submit to 
                Congress an annual report that describes the 
                waiver and provides a detailed justification 
                for the waiver.
  (i) Report.--Not later than 2 years after the date of 
enactment of this Act, and annually thereafter, the 
Administrator of General Services shall submit to the Energy 
Information Agency a report describing the quantity, type, and 
cost of each lighting product purchased by the Federal 
Government.
  (j) Bright Tomorrow Lighting Award Fund.--
          (1) Establishment.--There is established in the 
        United States Treasury a Bright Tomorrow Lighting 
        permanent fund without fiscal year limitation to award 
        prizes under paragraphs (1), (2), and (3) of subsection 
        (b).
          (2) Sources of funding.--The fund established under 
        paragraph (1) shall accept--
                  (A) fiscal year appropriations; and
                  (B) private contributions authorized under 
                subsection (c).
  (k) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section.

SEC. 656. RENEWABLE ENERGY INNOVATION MANUFACTURING PARTNERSHIP.

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

              TITLE VII--CARBON CAPTURE AND SEQUESTRATION


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


SEC. 701. SHORT TITLE.

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

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

  (a) Amendment.--Section 963 of the Energy Policy Act of 2005 
(42 U.S.C. 16293) is amended--
          (1) in the section heading, by striking ``RESEARCH 
        AND DEVELOPMENT'' and inserting ``AND SEQUESTRATION 
        RESEARCH, DEVELOPMENT, AND DEMONSTRATION'';
          (2) in subsection (a)--
                  (A) by striking ``research and development'' 
                and inserting ``and sequestration research, 
                development, and demonstration''; and
                  (B) by striking ``capture technologies on 
                combustion-based systems'' and inserting 
                ``capture and sequestration technologies 
                related to industrial sources of carbon 
                dioxide'';
          (3) in subsection (b)--
                  (A) in paragraph (3), by striking ``and'' at 
                the end;
                  (B) in paragraph (4), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(5) to expedite and carry out large-scale testing 
        of carbon sequestration systems in a range of geologic 
        formations that will provide information on the cost 
        and feasibility of deployment of sequestration 
        technologies.''; and
          (4) by striking subsection (c) and inserting the 
        following:
  ``(c) Programmatic Activities.--
          ``(1) Fundamental science and engineering research 
        and development and demonstration supporting carbon 
        capture and sequestration technologies and carbon use 
        activities.--
                  ``(A) In general.--The Secretary shall carry 
                out fundamental science and engineering 
                research (including laboratory-scale 
                experiments, numeric modeling, and simulations) 
                to develop and document the performance of new 
                approaches to capture and sequester, or use 
                carbon dioxide to lead to an overall reduction 
                of carbon dioxide emissions.
                  ``(B) Program integration.--The Secretary 
                shall ensure that fundamental research carried 
                out under this paragraph is appropriately 
                applied to energy technology development 
                activities, the field testing of carbon 
                sequestration, and carbon use activities, 
                including--
                          ``(i) development of new or advanced 
                        technologies for the capture and 
                        sequestration of carbon dioxide;
                          ``(ii) development of new or advanced 
                        technologies that reduce the cost and 
                        increase the efficacy of advanced 
                        compression of carbon dioxide required 
                        for the sequestration of carbon 
                        dioxide;
                          ``(iii) modeling and simulation of 
                        geologic sequestration field 
                        demonstrations;
                          ``(iv) quantitative assessment of 
                        risks relating to specific field sites 
                        for testing of sequestration 
                        technologies;
                          ``(v) research and development of new 
                        and advanced technologies for carbon 
                        use, including recycling and reuse of 
                        carbon dioxide; and
                          ``(vi) research and development of 
                        new and advanced technologies for the 
                        separation of oxygen from air.
          ``(2) Field validation testing activities.--
                  ``(A) In general.--The Secretary shall 
                promote, to the maximum extent practicable, 
                regional carbon sequestration partnerships to 
                conduct geologic sequestration tests involving 
                carbon dioxide injection and monitoring, 
                mitigation, and verification operations in a 
                variety of candidate geologic settings, 
                including--
                          ``(i) operating oil and gas fields;
                          ``(ii) depleted oil and gas fields;
                          ``(iii) unmineable coal seams;
                          ``(iv) deep saline formations;
                          ``(v) deep geologic systems that may 
                        be used as engineered reservoirs to 
                        extract economical quantities of heat 
                        from geothermal resources of low 
                        permeability or porosity; and
                          ``(vi) deep geologic systems 
                        containing basalt formations.
                  ``(B) Objectives.--The objectives of tests 
                conducted under this paragraph shall be--
                          ``(i) to develop and validate 
                        geophysical tools, analysis, and 
                        modeling to monitor, predict, and 
                        verify carbon dioxide containment;
                          ``(ii) to validate modeling of 
                        geologic formations;
                          ``(iii) to refine sequestration 
                        capacity estimated for particular 
                        geologic formations;
                          ``(iv) to determine the fate of 
                        carbon dioxide concurrent with and 
                        following injection into geologic 
                        formations;
                          ``(v) to develop and implement best 
                        practices for operations relating to, 
                        and monitoring of, carbon dioxide 
                        injection and sequestration in geologic 
                        formations;
                          ``(vi) to assess and ensure the 
                        safety of operations related to 
                        geologic sequestration of carbon 
                        dioxide;
                          ``(vii) to allow the Secretary to 
                        promulgate policies, procedures, 
                        requirements, and guidance to ensure 
                        that the objectives of this 
                        subparagraph are met in large-scale 
                        testing and deployment activities for 
                        carbon capture and sequestration that 
                        are funded by the Department of Energy; 
                        and
                          ``(viii) to provide information to 
                        States, the Environmental Protection 
                        Agency, and other appropriate entities 
                        to support development of a regulatory 
                        framework for commercial-scale 
                        sequestration operations that ensure 
                        the protection of human health and the 
                        environment.
          ``(3) Large-scale carbon dioxide sequestration 
        testing.--
                  ``(A) In general.--The Secretary shall 
                conduct not less than 7 initial large-scale 
                sequestration tests, not including the 
                FutureGen project, for geologic containment of 
                carbon dioxide to collect and validate 
                information on the cost and feasibility of 
                commercial deployment of technologies for 
                geologic containment of carbon dioxide. These 7 
                tests may include any Regional Partnership 
                projects awarded as of the date of enactment of 
                the Department of Energy Carbon Capture and 
                Sequestration Research, Development, and 
                Demonstration Act of 2007.
                  ``(B) Diversity of formations to be 
                studied.--In selecting formations for study 
                under this paragraph, the Secretary shall 
                consider a variety of geologic formations 
                across the United States, and require 
                characterization and modeling of candidate 
                formations, as determined by the Secretary.
                  ``(C) Source of carbon dioxide for large-
                scale sequestration tests.--In the process of 
                any acquisition of carbon dioxide for 
                sequestration tests under subparagraph (A), the 
                Secretary shall give preference to sources of 
                carbon dioxide from industrial sources. To the 
                extent feasible, the Secretary shall prefer 
                tests that would facilitate the creation of an 
                integrated system of capture, transportation 
                and sequestration of carbon dioxide. The 
                preference provided for under this subparagraph 
                shall not delay the implementation of the 
                large-scale sequestration tests under this 
                paragraph.
                  ``(D) Definition.--For purposes of this 
                paragraph, the term `large-scale' means the 
                injection of more than 1,000,000 tons of carbon 
                dioxide from industrial sources annually or a 
                scale that demonstrates the ability to inject 
                and sequester several million metric tons of 
                industrial source carbon dioxide for a large 
                number of years.
          ``(4) Preference in project selection from 
        meritorious proposals.--In making competitive awards 
        under this subsection, subject to the requirements of 
        section 989, the Secretary shall--
                  ``(A) give preference to proposals from 
                partnerships among industrial, academic, and 
                government entities; and
                  ``(B) require recipients to provide 
                assurances that all laborers and mechanics 
                employed by contractors and subcontractors in 
                the construction, repair, or alteration of new 
                or existing facilities performed in order to 
                carry out a demonstration or commercial 
                application activity authorized under this 
                subsection shall be paid wages at rates not 
                less than those prevailing on similar 
                construction in the locality, as determined by 
                the Secretary of Labor in accordance with 
                subchapter IV of chapter 31 of title 40, United 
                States Code, and the Secretary of Labor shall, 
                with respect to the labor standards in this 
                paragraph, have the authority and functions set 
                forth in Reorganization Plan Numbered 14 of 
                1950 (15 Fed. Reg. 3176; 5 U.S.C. Appendix) and 
                section 3145 of title 40, United States Code.
          ``(5) Cost sharing.--Activities under this subsection 
        shall be considered research and development activities 
        that are subject to the cost sharing requirements of 
        section 988(b).
          ``(6) Program review and report.--During fiscal year 
        2011, the Secretary shall--
                  ``(A) conduct a review of programmatic 
                activities carried out under this subsection; 
                and
                  ``(B) make recommendations with respect to 
                continuation of the activities.
  ``(d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
          ``(1) $240,000,000 for fiscal year 2008;
          ``(2) $240,000,000 for fiscal year 2009;
          ``(3) $240,000,000 for fiscal year 2010;
          ``(4) $240,000,000 for fiscal year 2011; and
          ``(5) $240,000,000 for fiscal year 2012.''.
  (b) Table of Contents Amendment.--The item relating to 
section 963 in the table of contents for the Energy Policy Act 
of 2005 is amended to read as follows:

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

SEC. 703. CARBON CAPTURE.

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

SEC. 704. REVIEW OF LARGE-SCALE PROGRAMS.

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

SEC. 705. GEOLOGIC SEQUESTRATION TRAINING AND RESEARCH.

  (a) Study.--
          (1) In general.--The Secretary shall enter into an 
        arrangement with the National Academy of Sciences to 
        undertake a study that--
                  (A) defines an interdisciplinary program in 
                geology, engineering, hydrology, environmental 
                science, and related disciplines that will 
                support the Nation's capability to capture and 
                sequester carbon dioxide from anthropogenic 
                sources;
                  (B) addresses undergraduate and graduate 
                education, especially to help develop graduate 
                level programs of research and instruction that 
                lead to advanced degrees with emphasis on 
                geologic sequestration science;
                  (C) develops guidelines for proposals from 
                colleges and universities with substantial 
                capabilities in the required disciplines that 
                seek to implement geologic sequestration 
                science programs that advance the Nation's 
                capacity to address carbon management through 
                geologic sequestration science; and
                  (D) outlines a budget and recommendations for 
                how much funding will be necessary to establish 
                and carry out the grant program under 
                subsection (b).
          (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall transmit to 
        the Congress a copy of the results of the study 
        provided by the National Academy of Sciences under 
        paragraph (1).
          (3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary for 
        carrying out this subsection $1,000,000 for fiscal year 
        2008.
  (b) Grant Program.--
          (1) Establishment.--The Secretary shall establish a 
        competitive grant program through which colleges and 
        universities may apply for and receive 4-year grants 
        for--
                  (A) salary and startup costs for newly 
                designated faculty positions in an integrated 
                geologic carbon sequestration science program; 
                and
                  (B) internships for graduate students in 
                geologic sequestration science.
          (2) Renewal.--Grants under this subsection shall be 
        renewable for up to 2 additional 3-year terms, based on 
        performance criteria, established by the National 
        Academy of Sciences study conducted under subsection 
        (a), that include the number of graduates of such 
        programs.
          (3) Interface with regional geologic carbon 
        sequestration partnerships.--To the greatest extent 
        possible, geologic carbon sequestration science 
        programs supported under this subsection shall 
        interface with the research of the Regional Carbon 
        Sequestration Partnerships operated by the Department 
        to provide internships and practical training in carbon 
        capture and geologic sequestration.
          (4) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary for 
        carrying out this subsection such sums as may be 
        necessary.

SEC. 706. RELATION TO SAFE DRINKING WATER ACT.

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

SEC. 707. SAFETY RESEARCH.

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

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

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

 Subtitle B--Carbon Capture and Sequestration Assessment and Framework


SEC. 711. CARBON DIOXIDE SEQUESTRATION CAPACITY ASSESSMENT.

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

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

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

SEC. 713. CARBON DIOXIDE SEQUESTRATION INVENTORY.

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

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

  (a) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of the Interior shall 
submit to the Committee on Natural Resources of the House of 
Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on a recommended framework for 
managing geological carbon sequestration activities on public 
land.
  (b) Contents.--The report required by subsection (a) shall 
include the following:
          (1) Recommended criteria for identifying candidate 
        geological sequestration sites in each of the following 
        types of geological settings:
                  (A) Operating oil and gas fields.
                  (B) Depleted oil and gas fields.
                  (C) Unmineable coal seams.
                  (D) Deep saline formations.
                  (E) Deep geological systems that may be used 
                as engineered reservoirs to extract economical 
                quantities of heat from geothermal resources of 
                low permeability or porosity.
                  (F) Deep geological systems containing basalt 
                formations.
                  (G) Coalbeds being used for methane recovery.
          (2) A proposed regulatory framework for the leasing 
        of public land or an interest in public land for the 
        long-term geological sequestration of carbon dioxide, 
        which includes an assessment of options to ensure that 
        the United States receives fair market value for the 
        use of public land or an interest in public land for 
        geological sequestration.
          (3) A proposed procedure for ensuring that any 
        geological carbon sequestration activities on public 
        land--
                  (A) provide for public review and comment 
                from all interested persons; and
                  (B) protect the quality of natural and 
                cultural resources of the public land 
                overlaying a geological sequestration site.
          (4) A description of the status of Federal leasehold 
        or Federal mineral estate liability issues related to 
        the geological subsurface trespass of or caused by 
        carbon dioxide stored in public land, including any 
        relevant experience from enhanced oil recovery using 
        carbon dioxide on public land.
          (5) Recommendations for additional legislation that 
        may be required to ensure that public land management 
        and leasing laws are adequate to accommodate the long-
        term geological sequestration of carbon dioxide.
          (6) An identification of the legal and regulatory 
        issues specific to carbon dioxide sequestration on land 
        in cases in which title to mineral resources is held by 
        the United States but title to the surface estate is 
        not held by the United States.
          (7)(A) An identification of the issues specific to 
        the issuance of pipeline rights-of-way on public land 
        under the Mineral Leasing Act (30 U.S.C. 181 et seq.) 
        or the Federal Land Policy and Management Act of 1976 
        (43 U.S.C. 1701 et seq.) for natural or anthropogenic 
        carbon dioxide.
          (B) Recommendations for additional legislation that 
        may be required to clarify the appropriate framework 
        for issuing rights-of-way for carbon dioxide pipelines 
        on public land.
  (c) Consultation With Other Agencies.--In preparing the 
report under this section, the Secretary of the Interior shall 
coordinate with--
          (1) the Administrator of the Environmental Protection 
        Agency;
          (2) the Secretary of Energy; and
          (3) the heads of other appropriate agencies.
  (d) Compliance With Safe Drinking Water Act.--The Secretary 
shall ensure that all recommendations developed under this 
section are in compliance with all Federal environmental laws, 
including the Safe Drinking Water Act (42 U.S.C. 300f et seq.) 
and regulations under that Act.

            TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY


                  Subtitle A--Management Improvements


SEC. 801. NATIONAL MEDIA CAMPAIGN.

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

SEC. 802. ALASKA NATURAL GAS PIPELINE ADMINISTRATION.

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

SEC. 803. RENEWABLE ENERGY DEPLOYMENT.

  (a) Definitions.--In this section:
          (1) Alaska small hydroelectric power.--The term 
        ``Alaska small hydroelectric power'' means power that--
                  (A) is generated--
                          (i) in the State of Alaska;
                          (ii) without the use of a dam or 
                        impoundment of water; and
                          (iii) through the use of--
                                  (I) a lake tap (but not a 
                                perched alpine lake); or
                                  (II) a run-of-river screened 
                                at the point of diversion; and
                  (B) has a nameplate capacity rating of a 
                wattage that is not more than 15 megawatts.
          (2) Eligible applicant.--The term ``eligible 
        applicant'' means any--
                  (A) governmental entity;
                  (B) private utility;
                  (C) public utility;
                  (D) municipal utility;
                  (E) cooperative utility;
                  (F) Indian tribes; and
                  (G) Regional Corporation (as defined in 
                section 3 of the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1602)).
          (3) Ocean energy.--
                  (A) Inclusions.--The term ``ocean energy'' 
                includes current, wave, and tidal energy.
                  (B) Exclusion.--The term ``ocean energy'' 
                excludes thermal energy.
          (4) Renewable energy project.--The term ``renewable 
        energy project'' means a project--
                  (A) for the commercial generation of 
                electricity; and
                  (B) that generates electricity from--
                          (i) solar, wind, or geothermal energy 
                        or ocean energy;
                          (ii) biomass (as defined in section 
                        203(b) of the Energy Policy Act of 2005 
                        (42 U.S.C. 15852(b)));
                          (iii) landfill gas; or
                          (iv) Alaska small hydroelectric 
                        power.
  (b) Renewable Energy Construction Grants.--
          (1) In general.--The Secretary shall use amounts 
        appropriated under this section to make grants for use 
        in carrying out renewable energy projects.
          (2) Criteria.--Not later than 180 days after the date 
        of enactment of this Act, the Secretary shall set forth 
        criteria for use in awarding grants under this section.
          (3) Application.--To receive a grant from the 
        Secretary under paragraph (1), an eligible applicant 
        shall submit to the Secretary an application at such 
        time, in such manner, and containing such information 
        as the Secretary may require, including a written 
        assurance that--
                  (A) all laborers and mechanics employed by 
                contractors or subcontractors during 
                construction, alteration, or repair that is 
                financed, in whole or in part, by a grant under 
                this section shall be paid wages at rates not 
                less than those prevailing on similar 
                construction in the locality, as determined by 
                the Secretary of Labor in accordance with 
                sections 3141-3144, 3146, and 3147 of title 40, 
                United States Code; and
                  (B) the Secretary of Labor shall, with 
                respect to the labor standards described in 
                this paragraph, have the authority and 
                functions set forth in Reorganization Plan 
                Numbered 14 of 1950 (5 U.S.C. App.) and section 
                3145 of title 40, United States Code.
          (4) Non-federal share.--Each eligible applicant that 
        receives a grant under this subsection shall contribute 
        to the total cost of the renewable energy project 
        constructed by the eligible applicant an amount not 
        less than 50 percent of the total cost of the project.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to the Fund such sums as are necessary to carry 
out this section.

SEC. 804. COORDINATION OF PLANNED REFINERY OUTAGES.

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

SEC. 805. ASSESSMENT OF RESOURCES.

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

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

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

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

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

 Subtitle B--Prohibitions on Market Manipulation and False Information


SEC. 811. PROHIBITION ON MARKET MANIPULATION.

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

SEC. 812. PROHIBITION ON FALSE INFORMATION.

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

SEC. 813. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

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

SEC. 814. PENALTIES.

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

SEC. 815. EFFECT ON OTHER LAWS.

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

                TITLE IX--INTERNATIONAL ENERGY PROGRAMS


SEC. 901. DEFINITIONS.

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

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


SEC. 911. UNITED STATES ASSISTANCE FOR DEVELOPING COUNTRIES.

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

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

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

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

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

SEC. 914. ACTIONS BY OVERSEAS PRIVATE INVESTMENT CORPORATION.

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

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

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

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

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

SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION.

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

           Subtitle B--International Clean Energy Foundation


SEC. 921. DEFINITIONS.

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

SEC. 922. ESTABLISHMENT AND MANAGEMENT OF FOUNDATION.

  (a) Establishment.--
          (1) In general.--There is established in the 
        executive branch a foundation to be known as the 
        ``International Clean Energy Foundation'' that shall be 
        responsible for carrying out the provisions of this 
        subtitle. The Foundation shall be a government 
        corporation, as defined in section 103 of title 5, 
        United States Code.
          (2) Board of directors.--The Foundation shall be 
        governed by a Board of Directors in accordance with 
        subsection (c).
          (3) Intent of congress.--It is the intent of 
        Congress, in establishing the structure of the 
        Foundation set forth in this subsection, to create an 
        entity that serves the long-term foreign policy and 
        energy security goals of reducing global greenhouse gas 
        emissions.
  (b) Chief Executive Officer.--
          (1) In general.--There shall be in the Foundation a 
        Chief Executive Officer who shall be responsible for 
        the management of the Foundation.
          (2) Appointment.--The Chief Executive Officer shall 
        be appointed by the Board, with the advice and consent 
        of the Senate, and shall be a recognized leader in 
        clean and efficient energy technologies and climate 
        change and shall have experience in energy security, 
        business, or foreign policy, chosen on the basis of a 
        rigorous search.
          (3) Relationship to board.--The Chief Executive 
        Officer shall report to, and be under the direct 
        authority of, the Board.
          (4) Compensation and rank.--
                  (A) In general.--The Chief Executive Officer 
                shall be compensated at the rate provided for 
                level III of the Executive Schedule under 
                section 5314 of title 5, United States Code.
                  (B) Amendment.--Section 5314 of title 5, 
                United States Code, is amended by adding at the 
                end the following:
        ``Chief Executive Officer, International Clean Energy 
        Foundation.''.
                  (C) Authorities and duties.--The Chief 
                Executive Officer shall be responsible for the 
                management of the Foundation and shall exercise 
                the powers and discharge the duties of the 
                Foundation.
                  (D) Authority to appoint officers.--In 
                consultation and with approval of the Board, 
                the Chief Executive Officer shall appoint all 
                officers of the Foundation.
  (c) Board of Directors.--
          (1) Establishment.--There shall be in the Foundation 
        a Board of Directors.
          (2) Duties.--The Board shall perform the functions 
        specified to be carried out by the Board in this 
        subtitle and may prescribe, amend, and repeal bylaws, 
        rules, regulations, and procedures governing the manner 
        in which the business of the Foundation may be 
        conducted and in which the powers granted to it by law 
        may be exercised.
          (3) Membership.--The Board shall consist of--
                  (A) the Secretary of State (or the 
                Secretary's designee), the Secretary of Energy 
                (or the Secretary's designee), and the 
                Administrator of the United States Agency for 
                International Development (or the 
                Administrator's designee); and
                  (B) four other individuals with relevant 
                experience in matters relating to energy 
                security (such as individuals who represent 
                institutions of energy policy, business 
                organizations, foreign policy organizations, or 
                other relevant organizations) who shall be 
                appointed by the President, by and with the 
                advice and consent of the Senate, of whom--
                          (i) one individual shall be appointed 
                        from among a list of individuals 
                        submitted by the majority leader of the 
                        House of Representatives;
                          (ii) one individual shall be 
                        appointed from among a list of 
                        individuals submitted by the minority 
                        leader of the House of Representatives;
                          (iii) one individual shall be 
                        appointed from among a list of 
                        individuals submitted by the majority 
                        leader of the Senate; and
                          (iv) one individual shall be 
                        appointed from among a list of 
                        individuals submitted by the minority 
                        leader of the Senate.
          (4) Chief executive officer.--The Chief Executive 
        Officer of the Foundation shall serve as a nonvoting, 
        ex officio member of the Board.
          (5) Terms.--
                  (A) Officers of the federal government.--Each 
                member of the Board described in paragraph 
                (3)(A) shall serve for a term that is 
                concurrent with the term of service of the 
                individual's position as an officer within the 
                other Federal department or agency.
                  (B) Other members.--Each member of the Board 
                described in paragraph (3)(B) shall be 
                appointed for a term of 3 years and may be 
                reappointed for a term of an additional 3 
                years.
                  (C) Vacancies.--A vacancy in the Board shall 
                be filled in the manner in which the original 
                appointment was made.
                  (D) Acting members.--A vacancy in the Board 
                may be filled with an appointment of an acting 
                member by the Chairperson of the Board for up 
                to 1 year while a nominee is named and awaits 
                confirmation in accordance with paragraph 
                (3)(B).
          (6) Chairperson.--There shall be a Chairperson of the 
        Board. The Secretary of State (or the Secretary's 
        designee) shall serve as the Chairperson.
          (7) Quorum.--A majority of the members of the Board 
        described in paragraph (3) shall constitute a quorum, 
        which, except with respect to a meeting of the Board 
        during the 135-day period beginning on the date of the 
        enactment of this Act, shall include at least 1 member 
        of the Board described in paragraph (3)(B).
          (8) Meetings.--The Board shall meet at the call of 
        the Chairperson, who shall call a meeting no less than 
        once a year.
          (9) Compensation.--
                  (A) Officers of the federal government.--
                          (i) In general.--A member of the 
                        Board described in paragraph (3)(A) may 
                        not receive additional pay, allowances, 
                        or benefits by reason of the member's 
                        service on the Board.
                          (ii) Travel expenses.--Each such 
                        member of the Board shall receive 
                        travel expenses, including per diem in 
                        lieu of subsistence, in accordance with 
                        applicable provisions under subchapter 
                        I of chapter 57 of title 5, United 
                        States Code.
                  (B) Other members.--
                          (i) In general.--Except as provided 
                        in clause (ii), a member of the Board 
                        described in paragraph (3)(B)--
                                  (I) shall be paid 
                                compensation out of funds made 
                                available for the purposes of 
                                this subtitle at the daily 
                                equivalent of the highest rate 
                                payable under section 5332 of 
                                title 5, United States Code, 
                                for each day (including travel 
                                time) during which the member 
                                is engaged in the actual 
                                performance of duties as a 
                                member of the Board; and
                                  (II) while away from the 
                                member's home or regular place 
                                of business on necessary travel 
                                in the actual performance of 
                                duties as a member of the 
                                Board, shall be paid per diem, 
                                travel, and transportation 
                                expenses in the same manner as 
                                is provided under subchapter I 
                                of chapter 57 of title 5, 
                                United States Code.
                          (ii) Limitation.--A member of the 
                        Board may not be paid compensation 
                        under clause (i)(II) for more than 90 
                        days in any calendar year.

SEC. 923. DUTIES OF FOUNDATION.

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

SEC. 924. ANNUAL REPORT.

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

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

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

SEC. 926. GENERAL PERSONNEL AUTHORITIES.

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

SEC. 927. AUTHORIZATION OF APPROPRIATIONS.

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

                  Subtitle C--Miscellaneous Provisions


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

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

SEC. 932. NATIONAL SECURITY COUNCIL REORGANIZATION.

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

SEC. 933. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT.

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

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

  (a) Findings and Purpose.--
          (1) Findings.--Congress finds that--
                  (A) section 170 of the Atomic Energy Act of 
                1954 (42 U.S.C. 2210) (commonly known as the 
                ``Price-Anderson Act'')--
                          (i) provides a predictable legal 
                        framework necessary for nuclear 
                        projects; and
                          (ii) ensures prompt and equitable 
                        compensation in the event of a nuclear 
                        incident in the United States;
                  (B) the Price-Anderson Act, in effect, 
                provides operators of nuclear powerplants with 
                insurance for damage arising out of a nuclear 
                incident and funds the insurance primarily 
                through the assessment of a retrospective 
                premium from each operator after the occurrence 
                of a nuclear incident;
                  (C) the Convention on Supplementary 
                Compensation for Nuclear Damage, done at Vienna 
                on September 12, 1997, will establish a global 
                system--
                          (i) to provide a predictable legal 
                        framework necessary for nuclear energy 
                        projects; and
                          (ii) to ensure prompt and equitable 
                        compensation in the event of a nuclear 
                        incident;
                  (D) the Convention benefits United States 
                nuclear suppliers that face potentially 
                unlimited liability for nuclear incidents that 
                are not covered by the Price-Anderson Act by 
                replacing a potentially open-ended liability 
                with a predictable liability regime that, in 
                effect, provides nuclear suppliers with 
                insurance for damage arising out of such an 
                incident;
                  (E) the Convention also benefits United 
                States nuclear facility operators that may be 
                publicly liable for a Price-Anderson incident 
                by providing an additional early source of 
                funds to compensate damage arising out of the 
                Price-Anderson incident;
                  (F) the combined operation of the Convention, 
                the Price-Anderson Act, and this section will 
                augment the quantity of assured funds available 
                for victims in a wider variety of nuclear 
                incidents while reducing the potential 
                liability of United States suppliers without 
                increasing potential costs to United States 
                operators;
                  (G) the cost of those benefits is the 
                obligation of the United States to contribute 
                to the supplementary compensation fund 
                established by the Convention;
                  (H) any such contribution should be funded in 
                a manner that does not--
                          (i) upset settled expectations based 
                        on the liability regime established 
                        under the Price-Anderson Act; or
                          (ii) shift to Federal taxpayers 
                        liability risks for nuclear incidents 
                        at foreign installations;
                  (I) with respect to a Price-Anderson 
                incident, funds already available under the 
                Price-Anderson Act should be used; and
                  (J) with respect to a nuclear incident 
                outside the United States not covered by the 
                Price-Anderson Act, a retrospective premium 
                should be prorated among nuclear suppliers 
                relieved from potential liability for which 
                insurance is not available.
          (2) Purpose.--The purpose of this section is to 
        allocate the contingent costs associated with 
        participation by the United States in the international 
        nuclear liability compensation system established by 
        the Convention on Supplementary Compensation for 
        Nuclear Damage, done at Vienna on September 12, 1997--
                  (A) with respect to a Price-Anderson 
                incident, by using funds made available under 
                section 170 of the Atomic Energy Act of 1954 
                (42 U.S.C. 2210) to cover the contingent costs 
                in a manner that neither increases the burdens 
                nor decreases the benefits under section 170 of 
                that Act; and
                  (B) with respect to a covered incident 
                outside the United States that is not a Price-
                Anderson incident, by allocating the contingent 
                costs equitably, on the basis of risk, among 
                the class of nuclear suppliers relieved by the 
                Convention from the risk of potential liability 
                resulting from any covered incident outside the 
                United States.
  (b) Definitions.--In this section:
          (1) Commission.--The term ``Commission'' means the 
        Nuclear Regulatory Commission.
          (2) Contingent cost.--The term ``contingent cost'' 
        means the cost to the United States in the event of a 
        covered incident the amount of which is equal to the 
        amount of funds the United States is obligated to make 
        available under paragraph 1(b) of Article III of the 
        Convention.
          (3) Convention.--The term ``Convention'' means the 
        Convention on Supplementary Compensation for Nuclear 
        Damage, done at Vienna on September 12, 1997.
          (4) Covered incident.--The term ``covered incident'' 
        means a nuclear incident the occurrence of which 
        results in a request for funds pursuant to Article VII 
        of the Convention.
          (5) Covered installation.--The term ``covered 
        installation'' means a nuclear installation at which 
        the occurrence of a nuclear incident could result in a 
        request for funds under Article VII of the Convention.
          (6) Covered person.--
                  (A) In general.--The term ``covered person'' 
                means--
                          (i) a United States person; and
                          (ii) an individual or entity 
                        (including an agency or instrumentality 
                        of a foreign country) that--
                                  (I) is located in the United 
                                States; or
                                  (II) carries out an activity 
                                in the United States.
                  (B) Exclusions.--The term ``covered person'' 
                does not include--
                          (i) the United States; or
                          (ii) any agency or instrumentality of 
                        the United States.
          (7) Nuclear supplier.--The term ``nuclear supplier'' 
        means a covered person (or a successor in interest of a 
        covered person) that--
                  (A) supplies facilities, equipment, fuel, 
                services, or technology pertaining to the 
                design, construction, operation, or 
                decommissioning of a covered installation; or
                  (B) transports nuclear materials that could 
                result in a covered incident.
          (8) Price-anderson incident.--The term ``Price-
        Anderson incident'' means a covered incident for which 
        section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 
        2210) would make funds available to compensate for 
        public liability (as defined in section 11 of that Act 
        (42 U.S.C. 2014)).
          (9) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
          (10) United states.--
                  (A) In general.--The term ``United States'' 
                has the meaning given the term in section 11 of 
                the Atomic Energy Act of 1954 (42 U.S.C. 2014).
                  (B) Inclusions.--The term ``United States'' 
                includes--
                          (i) the Commonwealth of Puerto Rico;
                          (ii) any other territory or 
                        possession of the United States;
                          (iii) the Canal Zone; and
                          (iv) the waters of the United States 
                        territorial sea under Presidential 
                        Proclamation Number 5928, dated 
                        December 27, 1988 (43 U.S.C. 1331 
                        note).
          (11) United states person.--The term ``United States 
        person'' means--
                  (A) any individual who is a resident, 
                national, or citizen of the United States 
                (other than an individual residing outside of 
                the United States and employed by a person who 
                is not a United States person); and
                  (B) any corporation, partnership, 
                association, joint stock company, business 
                trust, unincorporated organization, or sole 
                proprietorship that is organized under the laws 
                of the United States.
  (c) Use of Price-Anderson Funds.--
          (1) In general.--Funds made available under section 
        170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) 
        shall be used to cover the contingent cost resulting 
        from any Price-Anderson incident.
          (2) Effect.--The use of funds pursuant to paragraph 
        (1) shall not reduce the limitation on public liability 
        established under section 170 e. of the Atomic Energy 
        Act of 1954 (42 U.S.C. 2210(e)).
  (d) Effect on Amount of Public Liability.--
          (1) In general.--Funds made available to the United 
        States under Article VII of the Convention with respect 
        to a Price-Anderson incident shall be used to satisfy 
        public liability resulting from the Price-Anderson 
        incident.
          (2) Amount.--The amount of public liability allowable 
        under section 170 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2210) relating to a Price-Anderson incident 
        under paragraph (1) shall be increased by an amount 
        equal to the difference between--
                  (A) the amount of funds made available for 
                the Price-Anderson incident under Article VII 
                of the Convention; and
                  (B) the amount of funds used under subsection 
                (c) to cover the contingent cost resulting from 
                the Price-Anderson incident.
  (e) Retrospective Risk Pooling Program.--
          (1) In general.--Except as provided under paragraph 
        (2), each nuclear supplier shall participate in a 
        retrospective risk pooling program in accordance with 
        this section to cover the contingent cost resulting 
        from a covered incident outside the United States that 
        is not a Price-Anderson incident.
          (2) Deferred payment.--
                  (A) In general.--The obligation of a nuclear 
                supplier to participate in the retrospective 
                risk pooling program shall be deferred until 
                the United States is called on to provide funds 
                pursuant to Article VII of the Convention with 
                respect to a covered incident that is not a 
                Price-Anderson incident.
                  (B) Amount of deferred payment.--The amount 
                of a deferred payment of a nuclear supplier 
                under subparagraph (A) shall be based on the 
                risk-informed assessment formula determined 
                under subparagraph (C).
                  (C) Risk-informed assessment formula.--
                          (i) In general.--Not later than 3 
                        years after the date of the enactment 
                        of this Act, and every 5 years 
                        thereafter, the Secretary shall, by 
                        regulation, determine the risk-informed 
                        assessment formula for the allocation 
                        among nuclear suppliers of the 
                        contingent cost resulting from a 
                        covered incident that is not a Price-
                        Anderson incident, taking into account 
                        risk factors such as--
                                  (I) the nature and intended 
                                purpose of the goods and 
                                services supplied by each 
                                nuclear supplier to each 
                                covered installation outside 
                                the United States;
                                  (II) the quantity of the 
                                goods and services supplied by 
                                each nuclear supplier to each 
                                covered installation outside 
                                the United States;
                                  (III) the hazards associated 
                                with the supplied goods and 
                                services if the goods and 
                                services fail to achieve the 
                                intended purposes;
                                  (IV) the hazards associated 
                                with the covered installation 
                                outside the United States to 
                                which the goods and services 
                                are supplied;
                                  (V) the legal, regulatory, 
                                and financial infrastructure 
                                associated with the covered 
                                installation outside the United 
                                States to which the goods and 
                                services are supplied; and
                                  (VI) the hazards associated 
                                with particular forms of 
                                transportation.
                          (ii) Factors for consideration.--In 
                        determining the formula, the Secretary 
                        may--
                                  (I) exclude--
                                          (aa) goods and 
                                        services with 
                                        negligible risk;
                                          (bb) classes of goods 
                                        and services not 
                                        intended specifically 
                                        for use in a nuclear 
                                        installation;
                                          (cc) a nuclear 
                                        supplier with a de 
                                        minimis share of the 
                                        contingent cost; and
                                          (dd) a nuclear 
                                        supplier no longer in 
                                        existence for which 
                                        there is no 
                                        identifiable successor; 
                                        and
                                  (II) establish the period on 
                                which the risk assessment is 
                                based.
                          (iii) Application.--In applying the 
                        formula, the Secretary shall not 
                        consider any covered installation or 
                        transportation for which funds would be 
                        available under section 170 of the 
                        Atomic Energy Act of 1954 (42 U.S.C. 
                        2210).
                          (iv) Report.--Not later than 5 years 
                        after the date of the enactment of this 
                        Act, and every 5 years thereafter, the 
                        Secretary shall submit to the Committee 
                        on Environment and Public Works of the 
                        Senate and the Committee on Energy and 
                        Commerce of the House of 
                        Representatives a report on whether 
                        there is a need for continuation or 
                        amendment of this section, taking into 
                        account the effects of the 
                        implementation of the Convention on the 
                        United States nuclear industry and 
                        suppliers.
  (f) Reporting.--
          (1) Collection of information.--
                  (A) In general.--The Secretary may collect 
                information necessary for developing and 
                implementing the formula for calculating the 
                deferred payment of a nuclear supplier under 
                subsection (e)(2).
                  (B) Provision of information.--Each nuclear 
                supplier and other appropriate persons shall 
                make available to the Secretary such 
                information, reports, records, documents, and 
                other data as the Secretary determines, by 
                regulation, to be necessary or appropriate to 
                develop and implement the formula under 
                subsection (e)(2)(C).
          (2) Private insurance.--The Secretary shall make 
        available to nuclear suppliers, and insurers of nuclear 
        suppliers, information to support the voluntary 
        establishment and maintenance of private insurance 
        against any risk for which nuclear suppliers may be 
        required to pay deferred payments under this section.
  (g) Effect on Liability.--Nothing in any other law (including 
regulations) limits liability for a covered incident to an 
amount equal to less than the amount prescribed in paragraph 
1(a) of Article IV of the Convention, unless the law--
          (1) specifically refers to this section; and
          (2) explicitly repeals, alters, amends, modifies, 
        impairs, displaces, or supersedes the effect of this 
        subsection.
  (h) Payments to and by the United States.--
          (1) Action by nuclear suppliers.--
                  (A) Notification.--In the case of a request 
                for funds under Article VII of the Convention 
                resulting from a covered incident that is not a 
                Price-Anderson incident, the Secretary shall 
                notify each nuclear supplier of the amount of 
                the deferred payment required to be made by the 
                nuclear supplier.
                  (B) Payments.--
                          (i) In general.--Except as provided 
                        under clause (ii), not later than 60 
                        days after receipt of a notification 
                        under subparagraph (A), a nuclear 
                        supplier shall pay to the general fund 
                        of the Treasury the deferred payment of 
                        the nuclear supplier required under 
                        subparagraph (A).
                          (ii) Annual payments.--A nuclear 
                        supplier may elect to prorate payment 
                        of the deferred payment required under 
                        subparagraph (A) in 5 equal annual 
                        payments (including interest on the 
                        unpaid balance at the prime rate 
                        prevailing at the time the first 
                        payment is due).
                  (C) Vouchers.--A nuclear supplier shall 
                submit payment certification vouchers to the 
                Secretary of the Treasury in accordance with 
                section 3325 of title 31, United States Code.
          (2) Use of funds.--
                  (A) In general.--Amounts paid into the 
                Treasury under paragraph (1) shall be available 
                to the Secretary of the Treasury, without 
                further appropriation and without fiscal year 
                limitation, for the purpose of making the 
                contributions of public funds required to be 
                made by the United States under the Convention.
                  (B) Action by secretary of treasury.--The 
                Secretary of the Treasury shall pay the 
                contribution required under the Convention to 
                the court of competent jurisdiction under 
                Article XIII of the Convention with respect to 
                the applicable covered incident.
          (3) Failure to pay.--If a nuclear supplier fails to 
        make a payment required under this subsection, the 
        Secretary may take appropriate action to recover from 
        the nuclear supplier--
                  (A) the amount of the payment due from the 
                nuclear supplier;
                  (B) any applicable interest on the payment; 
                and
                  (C) a penalty of not more than twice the 
                amount of the deferred payment due from the 
                nuclear supplier.
  (i) Limitation on Judicial Review; Cause of Action.--
          (1) Limitation on judicial review.--
                  (A) In general.--In any civil action arising 
                under the Convention over which Article XIII of 
                the Convention grants jurisdiction to the 
                courts of the United States, any appeal or 
                review by writ of mandamus or otherwise with 
                respect to a nuclear incident that is not a 
                Price-Anderson incident shall be in accordance 
                with chapter 83 of title 28, United States 
                Code, except that the appeal or review shall 
                occur in the United States Court of Appeals for 
                the District of Columbia Circuit.
                  (B) Supreme court jurisdiction.--Nothing in 
                this paragraph affects the jurisdiction of the 
                Supreme Court of the United States under 
                chapter 81 of title 28, United States Code.
          (2) Cause of action.--
                  (A) In general.--Subject to subparagraph (B), 
                in any civil action arising under the 
                Convention over which Article XIII of the 
                Convention grants jurisdiction to the courts of 
                the United States, in addition to any other 
                cause of action that may exist, an individual 
                or entity shall have a cause of action against 
                the operator to recover for nuclear damage 
                suffered by the individual or entity.
                  (B) Requirement.--Subparagraph (A) shall 
                apply only if the individual or entity seeks a 
                remedy for nuclear damage (as defined in 
                Article I of the Convention) that was caused by 
                a nuclear incident (as defined in Article I of 
                the Convention) that is not a Price-Anderson 
                incident.
                  (C) Savings provision.--Nothing in this 
                paragraph may be construed to limit, modify, 
                extinguish, or otherwise affect any cause of 
                action that would have existed in the absence 
                of enactment of this paragraph.
  (j) Right of Recourse.--This section does not provide to an 
operator of a covered installation any right of recourse under 
the Convention.
  (k) Protection of Sensitive United States Information.--
Nothing in the Convention or this section requires the 
disclosure of--
          (1) any data that, at any time, was Restricted Data 
        (as defined in section 11 of the Atomic Energy Act of 
        1954 (42 U.S.C. 2014));
          (2) information relating to intelligence sources or 
        methods protected by section 102A(i) of the National 
        Security Act of 1947 (50 U.S.C. 403-1(i)); or
          (3) national security information classified under 
        Executive Order 12958 (50 U.S.C. 435 note; relating to 
        classified national security information) (or a 
        successor Executive Order or regulation).
  (l) Regulations.--
          (1) In general.--The Secretary or the Commission, as 
        appropriate, may prescribe regulations to carry out 
        section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 
        2210) and this section.
          (2) Requirement.--Rules prescribed under this 
        subsection shall ensure, to the maximum extent 
        practicable, that--
                  (A) the implementation of section 170 of the 
                Atomic Energy Act of 1954 (42 U.S.C. 2210) and 
                this section is consistent and equitable; and
                  (B) the financial and operational burden on a 
                Commission licensee in complying with section 
                170 of that Act is not greater as a result of 
                the enactment of this section.
          (3) Applicability of provision.--Section 553 of title 
        5, United States Code, shall apply with respect to the 
        promulgation of regulations under this subsection.
          (4) Effect of subsection.--The authority provided 
        under this subsection is in addition to, and does not 
        impair or otherwise affect, any other authority of the 
        Secretary or the Commission to prescribe regulations.
  (m) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 935. TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE PAYMENTS.

  (a) Purpose.--The purpose of this section is to--
          (1) ensure greater United States energy security by 
        combating corruption in the governments of foreign 
        countries that receive revenues from the sale of their 
        natural resources; and
          (2) enhance the development of democracy and increase 
        political and economic stability in such resource rich 
        foreign countries.
  (b) Statement of Policy.--It is the policy of the United 
States--
          (1) to increase energy security by promoting anti-
        corruption initiatives in oil and natural gas rich 
        countries; and
          (2) to promote global energy security through 
        promotion of programs such as the Extractive Industries 
        Transparency Initiative (EITI) that seek to instill 
        transparency and accountability into extractive 
        industries resource payments.
  (c) Sense of Congress.--It is the sense of Congress that the 
United States should further global energy security and promote 
democratic development in resource-rich foreign countries by--
          (1) encouraging further participation in the EITI by 
        eligible countries and companies; and
          (2) promoting the efficacy of the EITI program by 
        ensuring a robust and candid review mechanism.
  (d) Report.--
          (1) Report required.--Not later than 180 days after 
        the date of the enactment of this Act, and annually 
        thereafter, the Secretary of State, in consultation 
        with the Secretary of Energy, shall submit to the 
        appropriate congressional committees a report on 
        progress made in promoting transparency in extractive 
        industries resource payments.
          (2) Matters to be included.--The report required by 
        paragraph (1) shall include a detailed description of 
        United States participation in the EITI, bilateral and 
        multilateral diplomatic efforts to further 
        participation in the EITI, and other United States 
        initiatives to strengthen energy security, deter energy 
        kleptocracy, and promote transparency in the extractive 
        industries.
  (e) Authorization of Appropriations.--There is authorized to 
be appropriated $3,000,000 for the purposes of United States 
contributions to the Multi-Donor Trust Fund of the EITI.

                          TITLE X--GREEN JOBS


SEC. 1001. SHORT TITLE.

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

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

  Section 171 of the Workforce Investment Act of 1998 (29 
U.S.C. 2916) is amended by adding at the end the following:
  ``(e) Energy Efficiency and Renewable Energy Worker Training 
Program.--
          ``(1) Grant program.--
                  ``(A) In general.--Not later than 6 months 
                after the date of enactment of the Green Jobs 
                Act of 2007, the Secretary, in consultation 
                with the Secretary of Energy, shall establish 
                an energy efficiency and renewable energy 
                worker training program under which the 
                Secretary shall carry out the activities 
                described in paragraph (2) to achieve the 
                purposes of this subsection.
                  ``(B) Eligibility.--For purposes of providing 
                assistance and services under the program 
                established under this subsection--
                          ``(i) target populations of eligible 
                        individuals to be given priority for 
                        training and other services shall 
                        include--
                                  ``(I) workers impacted by 
                                national energy and 
                                environmental policy;
                                  ``(II) individuals in need of 
                                updated training related to the 
                                energy efficiency and renewable 
                                energy industries;
                                  ``(III) veterans, or past and 
                                present members of reserve 
                                components of the Armed Forces;
                                  ``(IV) unemployed 
                                individuals;
                                  ``(V) individuals, including 
                                at-risk youth, seeking 
                                employment pathways out of 
                                poverty and into economic self-
                                sufficiency; and
                                  ``(VI) formerly incarcerated, 
                                adjudicated, nonviolent 
                                offenders; and
                          ``(ii) energy efficiency and 
                        renewable energy industries eligible to 
                        participate in a program under this 
                        subsection include--
                                  ``(I) the energy-efficient 
                                building, construction, and 
                                retrofits industries;
                                  ``(II) the renewable electric 
                                power industry;
                                  ``(III) the energy efficient 
                                and advanced drive train 
                                vehicle industry;
                                  ``(IV) the biofuels industry;
                                  ``(V) the deconstruction and 
                                materials use industries;
                                  ``(VI) the energy efficiency 
                                assessment industry serving the 
                                residential, commercial, or 
                                industrial sectors; and
                                  ``(VII) manufacturers that 
                                produce sustainable products 
                                using environmentally 
                                sustainable processes and 
                                materials.
          ``(2) Activities.--
                  ``(A) National research program.--Under the 
                program established under paragraph (1), the 
                Secretary, acting through the Bureau of Labor 
                Statistics, where appropriate, shall collect 
                and analyze labor market data to track 
                workforce trends resulting from energy-related 
                initiatives carried out under this subsection. 
                Activities carried out under this paragraph 
                shall include--
                          ``(i) tracking and documentation of 
                        academic and occupational competencies 
                        as well as future skill needs with 
                        respect to renewable energy and energy 
                        efficiency technology;
                          ``(ii) tracking and documentation of 
                        occupational information and workforce 
                        training data with respect to renewable 
                        energy and energy efficiency 
                        technology;
                          ``(iii) collaborating with State 
                        agencies, workforce investments boards, 
                        industry, organized labor, and 
                        community and nonprofit organizations 
                        to disseminate information on 
                        successful innovations for labor market 
                        services and worker training with 
                        respect to renewable energy and energy 
                        efficiency technology;
                          ``(iv) serving as a clearinghouse for 
                        best practices in workforce 
                        development, job placement, and 
                        collaborative training partnerships;
                          ``(v) encouraging the establishment 
                        of workforce training initiatives with 
                        respect to renewable energy and energy 
                        efficiency technologies;
                          ``(vi) linking research and 
                        development in renewable energy and 
                        energy efficiency technology with the 
                        development of standards and curricula 
                        for current and future jobs;
                          ``(vii) assessing new employment and 
                        work practices including career ladder 
                        and upgrade training as well as high 
                        performance work systems; and
                          ``(viii) providing technical 
                        assistance and capacity building to 
                        national and State energy partnerships, 
                        including industry and labor 
                        representatives.
                  ``(B) National energy training partnership 
                grants.--
                          ``(i) In general.--Under the program 
                        established under paragraph (1), the 
                        Secretary shall award National Energy 
                        Training Partnerships Grants on a 
                        competitive basis to eligible entities 
                        to enable such entities to carry out 
                        training that leads to economic self-
                        sufficiency and to develop an energy 
                        efficiency and renewable energy 
                        industries workforce. Grants shall be 
                        awarded under this subparagraph so as 
                        to ensure geographic diversity with at 
                        least 2 grants awarded to entities 
                        located in each of the 4 Petroleum 
                        Administration for Defense Districts 
                        with no subdistricts, and at least 1 
                        grant awarded to an entity located in 
                        each of the subdistricts of the 
                        Petroleum Administration for Defense 
                        District with subdistricts.
                          ``(ii) Eligibility.--To be eligible 
                        to receive a grant under clause (i), an 
                        entity shall be a nonprofit partnership 
                        that--
                                  ``(I) includes the equal 
                                participation of industry, 
                                including public or private 
                                employers, and labor 
                                organizations, including joint 
                                labor-management training 
                                programs, and may include 
                                workforce investment boards, 
                                community-based organizations, 
                                qualified service and 
                                conservation corps, educational 
                                institutions, small businesses, 
                                cooperatives, State and local 
                                veterans agencies, and veterans 
                                service organizations; and
                                  ``(II) demonstrates--
                                          ``(aa) experience in 
                                        implementing and 
                                        operating worker skills 
                                        training and education 
                                        programs;
                                          ``(bb) the ability to 
                                        identify and involve in 
                                        training programs 
                                        carried out under this 
                                        grant, target 
                                        populations of 
                                        individuals who would 
                                        benefit from training 
                                        and be actively 
                                        involved in activities 
                                        related to energy 
                                        efficiency and 
                                        renewable energy 
                                        industries; and
                                          ``(cc) the ability to 
                                        help individuals 
                                        achieve economic self-
                                        sufficiency.
                          ``(iii) Priority.--Priority shall be 
                        given to partnerships which leverage 
                        additional public and private resources 
                        to fund training programs, including 
                        cash or in-kind matches from 
                        participating employers.
                  ``(C) State labor market research, 
                information, and labor exchange research 
                program.--
                          ``(i) In general.--Under the program 
                        established under paragraph (1), the 
                        Secretary shall award competitive 
                        grants to States to enable such States 
                        to administer labor market and labor 
                        exchange information programs that 
                        include the implementation of the 
                        activities described in clause (ii), in 
                        coordination with the one-stop delivery 
                        system.
                          ``(ii) Activities.--A State shall use 
                        amounts awarded under a grant under 
                        this subparagraph to provide funding to 
                        the State agency that administers the 
                        Wagner-Peyser Act and State 
                        unemployment compensation programs to 
                        carry out the following activities 
                        using State agency merit staff:
                                  ``(I) The identification of 
                                job openings in the renewable 
                                energy and energy efficiency 
                                sector.
                                  ``(II) The administration of 
                                skill and aptitude testing and 
                                assessment for workers.
                                  ``(III) The counseling, case 
                                management, and referral of 
                                qualified job seekers to 
                                openings and training programs, 
                                including energy efficiency and 
                                renewable energy training 
                                programs.
                  ``(D) State energy training partnership 
                program.--
                          ``(i) In general.--Under the program 
                        established under paragraph (1), the 
                        Secretary shall award competitive 
                        grants to States to enable such States 
                        to administer renewable energy and 
                        energy efficiency workforce development 
                        programs that include the 
                        implementation of the activities 
                        described in clause (ii).
                          ``(ii) Partnerships.--A State shall 
                        use amounts awarded under a grant under 
                        this subparagraph to award competitive 
                        grants to eligible State Energy Sector 
                        Partnerships to enable such 
                        Partnerships to coordinate with 
                        existing apprenticeship and labor 
                        management training programs and 
                        implement training programs that lead 
                        to the economic self-sufficiency of 
                        trainees.
                          ``(iii) Eligibility.--To be eligible 
                        to receive a grant under this 
                        subparagraph, a State Energy Sector 
                        Partnership shall--
                                  ``(I) consist of nonprofit 
                                organizations that include 
                                equal participation from 
                                industry, including public or 
                                private nonprofit employers, 
                                and labor organizations, 
                                including joint labor-
                                management training programs, 
                                and may include representatives 
                                from local governments, the 
                                workforce investment system, 
                                including one-stop career 
                                centers, community based 
                                organizations, qualified 
                                service and conservation corps, 
                                community colleges, and other 
                                post-secondary institutions, 
                                small businesses, cooperatives, 
                                State and local veterans 
                                agencies, and veterans service 
                                organizations;
                                  ``(II) demonstrate experience 
                                in implementing and operating 
                                worker skills training and 
                                education programs; and
                                  ``(III) demonstrate the 
                                ability to identify and involve 
                                in training programs, target 
                                populations of workers who 
                                would benefit from training and 
                                be actively involved in 
                                activities related to energy 
                                efficiency and renewable energy 
                                industries.
                          ``(iv) Priority.--In awarding grants 
                        under this subparagraph, the Secretary 
                        shall give priority to States that 
                        demonstrate that activities under the 
                        grant--
                                  ``(I) meet national energy 
                                policies associated with energy 
                                efficiency, renewable energy, 
                                and the reduction of emissions 
                                of greenhouse gases;
                                  ``(II) meet State energy 
                                policies associated with energy 
                                efficiency, renewable energy, 
                                and the reduction of emissions 
                                of greenhouse gases; and
                                  ``(III) leverage additional 
                                public and private resources to 
                                fund training programs, 
                                including cash or in-kind 
                                matches from participating 
                                employers.
                          ``(v) Coordination.--A grantee under 
                        this subparagraph shall coordinate 
                        activities carried out under the grant 
                        with existing other appropriate 
                        training programs, including 
                        apprenticeship and labor management 
                        training programs, including such 
                        activities referenced in paragraph 
                        (3)(A), and implement training programs 
                        that lead to the economic self-
                        sufficiency of trainees.
                  ``(E) Pathways out of poverty demonstration 
                program.--
                          ``(i) In general.--Under the program 
                        established under paragraph (1), the 
                        Secretary shall award competitive 
                        grants of sufficient size to eligible 
                        entities to enable such entities to 
                        carry out training that leads to 
                        economic self-sufficiency. The 
                        Secretary shall give priority to 
                        entities that serve individuals in 
                        families with income of less than 200 
                        percent of the sufficiency standard for 
                        the local areas where the training is 
                        conducted that specifies, as defined by 
                        the State, or where such standard is 
                        not established, the income needs of 
                        families, by family size, the number 
                        and ages of children in the family, and 
                        sub-State geographical considerations. 
                        Grants shall be awards to ensure 
                        geographic diversity.
                          ``(ii) Eligible entities.--To be 
                        eligible to receive a grant an entity 
                        shall be a partnership that--
                                  ``(I) includes community-
                                based nonprofit organizations, 
                                educational institutions with 
                                expertise in serving low-income 
                                adults or youth, public or 
                                private employers from the 
                                industry sectors described in 
                                paragraph (1)(B)(ii), and labor 
                                organizations representing 
                                workers in such industry 
                                sectors;
                                  ``(II) demonstrates a record 
                                of successful experience in 
                                implementing and operating 
                                worker skills training and 
                                education programs;
                                  ``(III) coordinates 
                                activities, where appropriate, 
                                with the workforce investment 
                                system; and
                                  ``(IV) demonstrates the 
                                ability to recruit individuals 
                                for training and to support 
                                such individuals to successful 
                                completion in training programs 
                                carried out under this grant, 
                                targeting populations of 
                                workers who are or will be 
                                engaged in activities related 
                                to energy efficiency and 
                                renewable energy industries.
                          ``(iii) Priorities.--In awarding 
                        grants under this paragraph, the 
                        Secretary shall give priority to 
                        applicants that--
                                  ``(I) target programs to 
                                benefit low-income workers, 
                                unemployed youth and adults, 
                                high school dropouts, or other 
                                underserved sectors of the 
                                workforce within areas of high 
                                poverty;
                                  ``(II) ensure that supportive 
                                services are integrated with 
                                education and training, and 
                                delivered by organizations with 
                                direct access to and experience 
                                with targeted populations;
                                  ``(III) leverage additional 
                                public and private resources to 
                                fund training programs, 
                                including cash or in-kind 
                                matches from participating 
                                employers;
                                  ``(IV) involve employers and 
                                labor organizations in the 
                                determination of relevant 
                                skills and competencies and 
                                ensure that the certificates or 
                                credentials that result from 
                                the training are employer-
                                recognized;
                                  ``(V) deliver courses at 
                                alternative times (such as 
                                evening and weekend programs) 
                                and locations most convenient 
                                and accessible to participants 
                                and link adult remedial 
                                education with occupational 
                                skills training; and
                                  ``(VI) demonstrate 
                                substantial experience in 
                                administering local, municipal, 
                                State, Federal, foundation, or 
                                private entity grants.
                          ``(iv) Data collection.--Grantees 
                        shall collect and report the following 
                        information:
                                  ``(I) The number of 
                                participants.
                                  ``(II) The demographic 
                                characteristics of 
                                participants, including race, 
                                gender, age, parenting status, 
                                participation in other Federal 
                                programs, education and 
                                literacy level at entry, 
                                significant barriers to 
                                employment (such as limited 
                                English proficiency, criminal 
                                record, addiction or mental 
                                health problem requiring 
                                treatment, or mental 
                                disability).
                                  ``(III) The services received 
                                by participants, including 
                                training, education, and 
                                supportive services.
                                  ``(IV) The amount of program 
                                spending per participant.
                                  ``(V) Program completion 
                                rates.
                                  ``(VI) Factors determined as 
                                significantly interfering with 
                                program participation or 
                                completion.
                                  ``(VII) The rate of Job 
                                placement and the rate of 
                                employment retention after 1 
                                year.
                                  ``(VIII) The average wage at 
                                placement, including any 
                                benefits, and the rate of 
                                average wage increase after 1 
                                year.
                                  ``(IX) Any post-employment 
                                supportive services provided.
                        The Secretary shall assist grantees in 
                        the collection of data under this 
                        clause by making available, where 
                        practicable, low-cost means of tracking 
                        the labor market outcomes of 
                        participants, and by providing 
                        standardized reporting forms, where 
                        appropriate.
          ``(3) Activities.--
                  ``(A) In general.--Activities to be carried 
                out under a program authorized by subparagraph 
                (B), (D), or (E) of paragraph (2) shall be 
                coordinated with existing systems or providers, 
                as appropriate. Such activities may include--
                          ``(i) occupational skills training, 
                        including curriculum development, on-
                        the-job training, and classroom 
                        training;
                          ``(ii) safety and health training;
                          ``(iii) the provision of basic 
                        skills, literacy, GED, English as a 
                        second language, and job readiness 
                        training;
                          ``(iv) individual referral and 
                        tuition assistance for a community 
                        college training program, or any 
                        training program leading to an 
                        industry-recognized certificate;
                          ``(v) internship programs in fields 
                        related to energy efficiency and 
                        renewable energy;
                          ``(vi) customized training in 
                        conjunction with an existing registered 
                        apprenticeship program or labor-
                        management partnership;
                          ``(vii) incumbent worker and career 
                        ladder training and skill upgrading and 
                        retraining;
                          ``(viii) the implementation of 
                        transitional jobs strategies; and
                          ``(ix) the provision of supportive 
                        services.
                  ``(B) Outreach activities.--In addition to 
                the activities authorized under subparagraph 
                (A), activities authorized for programs under 
                subparagraph (E) of paragraph (2) may include 
                the provision of outreach, recruitment, career 
                guidance, and case management services.
          ``(4) Worker protections and nondiscrimination 
        requirements.--
                  ``(A) Application of wia.--The provisions of 
                sections 181 and 188 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2931 and 
                2938) shall apply to all programs carried out 
                with assistance under this subsection.
                  ``(B) Consultation with labor 
                organizations.--If a labor organization 
                represents a substantial number of workers who 
                are engaged in similar work or training in an 
                area that is the same as the area that is 
                proposed to be funded under this Act, the labor 
                organization shall be provided an opportunity 
                to be consulted and to submit comments in 
                regard to such a proposal.
          ``(5) Performance measures.--
                  ``(A) In general.--The Secretary shall 
                negotiate and reach agreement with the eligible 
                entities that receive grants and assistance 
                under this section on performance measures for 
                the indicators of performance referred to in 
                subparagraphs (A) and (B) of section 136(b)(2) 
                that will be used to evaluate the performance 
                of the eligible entity in carrying out the 
                activities described in subsection (e)(2). Each 
                performance measure shall consist of such an 
                indicator of performance, and a performance 
                level referred to in subparagraph (B).
                  ``(B) Performance levels.--The Secretary 
                shall negotiate and reach agreement with the 
                eligible entity regarding the levels of 
                performance expected to be achieved by the 
                eligible entity on the indicators of 
                performance.
          ``(6) Report.--
                  ``(A) Status report.--Not later than 18 
                months after the date of enactment of the Green 
                Jobs Act of 2007, the Secretary shall transmit 
                a report to the Senate Committee on Energy and 
                Natural Resources, the Senate Committee on 
                Health, Education, Labor, and Pensions, the 
                House Committee on Education and Labor, and the 
                House Committee on Energy and Commerce on the 
                training program established by this 
                subsection. The report shall include a 
                description of the entities receiving funding 
                and the activities carried out by such 
                entities.
                  ``(B) Evaluation.--Not later than 3 years 
                after the date of enactment of such Act, the 
                Secretary shall transmit to the Senate 
                Committee on Energy and Natural Resources, the 
                Senate Committee on Health, Education, Labor, 
                and Pensions, the House Committee on Education 
                and Labor, and the House Committee on Energy 
                and Commerce an assessment of such program and 
                an evaluation of the activities carried out by 
                entities receiving funding from such program.
          ``(7) Definition.--As used in this subsection, the 
        term `renewable energy' has the meaning given such term 
        in section 203(b)(2) of the Energy Policy Act of 2005 
        (Public Law 109-58).
          ``(8) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection, $125,000,000 for each fiscal years, of 
        which--
                  ``(A) not to exceed 20 percent of the amount 
                appropriated in each such fiscal year shall be 
                made available for, and shall be equally 
                divided between, national labor market research 
                and information under paragraph (2)(A) and 
                State labor market information and labor 
                exchange research under paragraph (2)(C), and 
                not more than 2 percent of such amount shall be 
                for the evaluation and report required under 
                paragraph (4);
                  ``(B) 20 percent shall be dedicated to 
                Pathways Out of Poverty Demonstration Programs 
                under paragraph (2)(E); and
                  ``(C) the remainder shall be divided equally 
                between National Energy Partnership Training 
                Grants under paragraph (2)(B) and State energy 
                training partnership grants under paragraph 
                (2)(D).''.

           TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE


                Subtitle A--Department of Transportation


SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRONMENT.

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

                         Subtitle B--Railroads


SEC. 1111. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT PILOT PROGRAM.

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

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

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

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

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

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

  ``(a) Establishment of Program.--
          ``(1) Establishment.--The Secretary of Transportation 
        shall establish a program for making capital grants to 
        class II and class III railroads. Such grants shall be 
        for projects in the public interest that--
                  ``(A)(i) rehabilitate, preserve, or improve 
                railroad track (including roadbed, bridges, and 
                related track structures) used primarily for 
                freight transportation;
                  ``(ii) facilitate the continued or greater 
                use of railroad transportation for freight 
                shipments; and
                  ``(iii) reduce the use of less fuel efficient 
                modes of transportation in the transportation 
                of such shipments; and
                  ``(B) demonstrate innovative technologies and 
                advanced research and development that increase 
                fuel economy, reduce greenhouse gas emissions, 
                and lower the costs of operation.
          ``(2) Provision of grants.--Grants may be provided 
        under this chapter--
                  ``(A) directly to the class II or class III 
                railroad; or
                  ``(B) with the concurrence of the class II or 
                class III railroad, to a State or local 
                government.
          ``(3) State cooperation.--Class II and class III 
        railroad applicants for a grant under this chapter are 
        encouraged to utilize the expertise and assistance of 
        State transportation agencies in applying for and 
        administering such grants. State transportation 
        agencies are encouraged to provide such expertise and 
        assistance to such railroads.
          ``(4) Regulations.--Not later than October 1, 2008, 
        the Secretary shall issue final regulations to 
        implement the program under this section.
  ``(b) Maximum Federal Share.--The maximum Federal share for 
carrying out a project under this section shall be 80 percent 
of the project cost. The non-Federal share may be provided by 
any non-Federal source in cash, equipment, or supplies. Other 
in-kind contributions may be approved by the Secretary on a 
case-by-case basis consistent with this chapter.
  ``(c) Use of Funds.--Grants provided under this section shall 
be used to implement track capital projects as soon as 
possible. In no event shall grant funds be contractually 
obligated for a project later than the end of the third Federal 
fiscal year following the year in which the grant was awarded. 
Any funds not so obligated by the end of such fiscal year shall 
be returned to the Secretary for reallocation.
  ``(d) Employee Protection.--The Secretary shall require as a 
condition of any grant made under this section that the 
recipient railroad provide a fair arrangement at least as 
protective of the interests of employees who are affected by 
the project to be funded with the grant as the terms imposed 
under section 11326(a), as in effect on the date of the 
enactment of this chapter.
  ``(e) Labor Standards.--
          ``(1) Prevailing wages.--The Secretary shall ensure 
        that laborers and mechanics employed by contractors and 
        subcontractors in construction work financed by a grant 
        made under this section will be paid wages not less 
        than those prevailing on similar construction in the 
        locality, as determined by the Secretary of Labor under 
        subchapter IV of chapter 31 of title 40 (commonly known 
        as the `Davis-Bacon Act'). The Secretary shall make a 
        grant under this section only after being assured that 
        required labor standards will be maintained on the 
        construction work.
          ``(2) Wage rates.--Wage rates in a collective 
        bargaining agreement negotiated under the Railway Labor 
        Act (45 U.S.C. 151 et seq.) are deemed for purposes of 
        this subsection to comply with the subchapter IV of 
        chapter 31 of title 40.
  ``(f) Study.--The Secretary shall conduct a study of the 
projects carried out with grant assistance under this section 
to determine the extent to which the program helps promote a 
reduction in fuel use associated with the transportation of 
freight and demonstrates innovative technologies that increase 
fuel economy, reduce greenhouse gas emissions, and lower the 
costs of operation. Not later than March 31, 2009, the 
Secretary shall submit a report to the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate on the study, including any 
recommendations the Secretary considers appropriate regarding 
the program.
  ``(g) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary $50,000,000 for each of 
fiscal years 2008 through 2011 for carrying out this 
section.''.
  (b) Clerical Amendment.--The item relating to chapter 223 in 
the table of chapters of subtitle V of title 49, United States 
Code, is amended to read as follows:

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

                   Subtitle C--Marine Transportation


SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE.

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

                ``CHAPTER 556--SHORT SEA TRANSPORTATION

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

``Sec. 55601. Short sea transportation program

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

``Sec. 55602. Cargo and shippers

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

``Sec. 55603. Interagency coordination

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

``Sec. 55604. Research on short sea transportation

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

``Sec. 55605. Short sea transportation defined

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

``556. Short Sea Transportation.................................55601''.
  (c) Regulations.--
          (1) Interim regulations.--Not later than 90 days 
        after the date of enactment of this Act, the Secretary 
        of Transportation shall issue temporary regulations to 
        implement the program under this section. Subchapter II 
        of chapter 5 of title 5, United States Code, does not 
        apply to a temporary regulation issued under this 
        paragraph or to an amendment to such a temporary 
        regulation.
          (2) Final regulations.--Not later than October 1, 
        2008, the Secretary of Transportation shall issue final 
        regulations to implement the program under this 
        section.

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

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

SEC. 1123. SHORT SEA TRANSPORTATION REPORT.

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

                          Subtitle D--Highways


SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.

  Section 120(c) of title 23, United States Code, is amended--
          (1) in the subsection heading by striking ``for 
        Certain Safety Projects'';
          (2) by striking ``The Federal share'' and inserting 
        the following:
          ``(1) Certain safety projects.--The Federal share''; 
        and
          (3) by adding at the end the following:
          ``(2) CMAQ projects.--The Federal share payable on 
        account of a project or program carried out under 
        section 149 with funds obligated in fiscal year 2008 or 
        2009, or both, shall be not less than 80 percent and, 
        at the discretion of the State, may be up to 100 
        percent of the cost thereof.''.

SEC. 1132. DISTRIBUTION OF RESCISSIONS.

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

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

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

               TITLE XII--SMALL BUSINESS ENERGY PROGRAMS


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

  Section 7(a)(31) of the Small Business Act (15 U.S.C. 
636(a)(31)) is amended by adding at the end the following:
                  ``(F) Express loans for renewable energy and 
                energy efficiency.--
                          ``(i) Definitions.--In this 
                        subparagraph--
                                  ``(I) the term `biomass'--
                                          ``(aa) means any 
                                        organic material that 
                                        is available on a 
                                        renewable or recurring 
                                        basis, including--
                                                  ``(AA) 
                                                agricultural 
                                                crops;
                                                  ``(BB) trees 
                                                grown for 
                                                energy 
                                                production;
                                                  ``(CC) wood 
                                                waste and wood 
                                                residues;
                                                  ``(DD) plants 
                                                (including 
                                                aquatic plants 
                                                and grasses);
                                                  ``(EE) 
                                                residues;
                                                  ``(FF) 
                                                fibers;
                                                  ``(GG) animal 
                                                wastes and 
                                                other waste 
                                                materials; and
                                                  ``(HH) fats, 
                                                oils, and 
                                                greases 
                                                (including 
                                                recycled fats, 
                                                oils, and 
                                                greases); and
                                          ``(bb) does not 
                                        include--
                                                  ``(AA) paper 
                                                that is 
                                                commonly 
                                                recycled; or
                                                  ``(BB) 
                                                unsegregated 
                                                solid waste;
                                  ``(II) the term `energy 
                                efficiency project' means the 
                                installation or upgrading of 
                                equipment that results in a 
                                significant reduction in energy 
                                usage; and
                                  ``(III) the term `renewable 
                                energy system' means a system 
                                of energy derived from--
                                          ``(aa) a wind, solar, 
                                        biomass (including 
                                        biodiesel), or 
                                        geothermal source; or
                                          ``(bb) hydrogen 
                                        derived from biomass or 
                                        water using an energy 
                                        source described in 
                                        item (aa).
                          ``(ii) Loans.--The Administrator may 
                        make a loan under the Express Loan 
                        Program for the purpose of--
                                  ``(I) purchasing a renewable 
                                energy system; or
                                  ``(II) carrying out an energy 
                                efficiency project for a small 
                                business concern.''.

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

  Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following:
          ``(32) Loans for energy efficient technologies.--
                  ``(A) Definitions.--In this paragraph--
                          ``(i) the term `cost' has the meaning 
                        given that term in section 502 of the 
                        Federal Credit Reform Act of 1990 (2 
                        U.S.C. 661a);
                          ``(ii) the term `covered energy 
                        efficiency loan' means a loan--
                                  ``(I) made under this 
                                subsection; and
                                  ``(II) the proceeds of which 
                                are used to purchase energy 
                                efficient designs, equipment, 
                                or fixtures, or to reduce the 
                                energy consumption of the 
                                borrower by 10 percent or more; 
                                and
                          ``(iii) the term `pilot program' 
                        means the pilot program established 
                        under subparagraph (B)
                  ``(B) Establishment.--The Administrator shall 
                establish and carry out a pilot program under 
                which the Administrator shall reduce the fees 
                for covered energy efficiency loans.
                  ``(C) Duration.--The pilot program shall 
                terminate at the end of the second full fiscal 
                year after the date that the Administrator 
                establishes the pilot program.
                  ``(D) Maximum participation.--A covered 
                energy efficiency loan shall include the 
                maximum participation levels by the 
                Administrator permitted for loans made under 
                this subsection.
                  ``(E) Fees.--
                          ``(i) In general.--The fee on a 
                        covered energy efficiency loan shall be 
                        equal to 50 percent of the fee 
                        otherwise applicable to that loan under 
                        paragraph (18).
                          ``(ii) Waiver.--The Administrator may 
                        waive clause (i) for a fiscal year if--
                                  ``(I) for the fiscal year 
                                before that fiscal year, the 
                                annual rate of default of 
                                covered energy efficiency loans 
                                exceeds that of loans made 
                                under this subsection that are 
                                not covered energy efficiency 
                                loans;
                                  ``(II) the cost to the 
                                Administration of making loans 
                                under this subsection is 
                                greater than zero and such cost 
                                is directly attributable to the 
                                cost of making covered energy 
                                efficiency loans; and
                                  ``(III) no additional sources 
                                of revenue authority are 
                                available to reduce the cost of 
                                making loans under this 
                                subsection to zero.
                          ``(iii) Effect of waiver.--If the 
                        Administrator waives the reduction of 
                        fees under clause (ii), the 
                        Administrator--
                                  ``(I) shall not assess or 
                                collect fees in an amount 
                                greater than necessary to 
                                ensure that the cost of the 
                                program under this subsection 
                                is not greater than zero; and
                                  ``(II) shall reinstate the 
                                fee reductions under clause (i) 
                                when the conditions in clause 
                                (ii) no longer apply.
                          ``(iv) No increase of fees.--The 
                        Administrator shall not increase the 
                        fees under paragraph (18) on loans made 
                        under this subsection that are not 
                        covered energy efficiency loans as a 
                        direct result of the pilot program.
                  ``(F) GAO report.--
                          ``(i) In general.--Not later than 1 
                        year after the date that the pilot 
                        program terminates, the Comptroller 
                        General of the United States shall 
                        submit to the Committee on Small 
                        Business of the House of 
                        Representatives and the Committee on 
                        Small Business and Entrepreneurship of 
                        the Senate a report on the pilot 
                        program.
                          ``(ii) Contents.--The report 
                        submitted under clause (i) shall 
                        include--
                                  ``(I) the number of covered 
                                energy efficiency loans for 
                                which fees were reduced under 
                                the pilot program;
                                  ``(II) a description of the 
                                energy efficiency savings with 
                                the pilot program;
                                  ``(III) a description of the 
                                impact of the pilot program on 
                                the program under this 
                                subsection;
                                  ``(IV) an evaluation of the 
                                efficacy and potential fraud 
                                and abuse of the pilot program; 
                                and
                                  ``(V) recommendations for 
                                improving the pilot program.''.

SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY.

  (a) Definitions.--In this section--
          (1) the terms ``Administration'' and 
        ``Administrator'' mean the Small Business 
        Administration and the Administrator thereof, 
        respectively;
          (2) the term ``association'' means the association of 
        small business development centers established under 
        section 21(a)(3)(A) of the Small Business Act (15 
        U.S.C. 648(a)(3)(A));
          (3) the term ``disability'' has the meaning given 
        that term in section 3 of the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12102);
          (4) the term ``Efficiency Program'' means the Small 
        Business Energy Efficiency Program established under 
        subsection (c)(1);
          (5) the term ``electric utility'' has the meaning 
        given that term in section 3 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602);
          (6) the term ``high performance green building'' has 
        the meaning given that term in section 401;
          (7) the term ``on-bill financing'' means a low 
        interest or no interest financing agreement between a 
        small business concern and an electric utility for the 
        purchase or installation of equipment, under which the 
        regularly scheduled payment of that small business 
        concern to that electric utility is not reduced by the 
        amount of the reduction in cost attributable to the new 
        equipment and that amount is credited to the electric 
        utility, until the cost of the purchase or installation 
        is repaid;
          (8) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 
        U.S.C. 632);
          (9) the term ``small business development center'' 
        means a small business development center described in 
        section 21 of the Small Business Act (15 U.S.C. 648);
          (10) the term ``telecommuting'' means the use of 
        telecommunications to perform work functions under 
        circumstances which reduce or eliminate the need to 
        commute;
          (11) the term ``Telecommuting Pilot Program'' means 
        the pilot program established under subsection 
        (d)(1)(A); and
          (12) the term ``veteran'' has the meaning given that 
        term in section 101 of title 38, United States Code.
  (b) Implementation of Small Business Energy Efficiency 
Program.--
          (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator shall 
        promulgate final rules establishing the Government-wide 
        program authorized under subsection (d) of section 337 
        of the Energy Policy and Conservation Act (42 U.S.C. 
        6307) that ensure compliance with that subsection by 
        not later than 6 months after such date of enactment.
          (2) Program required.--The Administrator shall 
        develop and coordinate a Government-wide program, 
        building on the Energy Star for Small Business program, 
        to assist small business concerns in--
                  (A) becoming more energy efficient;
                  (B) understanding the cost savings from 
                improved energy efficiency; and
                  (C) identifying financing options for energy 
                efficiency upgrades.
          (3) Consultation and cooperation.--The program 
        required by paragraph (2) shall be developed and 
        coordinated--
                  (A) in consultation with the Secretary of 
                Energy and the Administrator of the 
                Environmental Protection Agency; and
                  (B) in cooperation with any entities the 
                Administrator considers appropriate, such as 
                industry trade associations, industry members, 
                and energy efficiency organizations.
          (4) Availability of information.--The Administrator 
        shall make available the information and materials 
        developed under the program required by paragraph (2) 
        to--
                  (A) small business concerns, including 
                smaller design, engineering, and construction 
                firms; and
                  (B) other Federal programs for energy 
                efficiency, such as the Energy Star for Small 
                Business program.
          (5) Strategy and report.--
                  (A) Strategy required.--The Administrator 
                shall develop a strategy to educate, encourage, 
                and assist small business concerns in adopting 
                energy efficient building fixtures and 
                equipment.
                  (B) Report.--Not later than December 31, 
                2008, the Administrator shall submit to 
                Congress a report containing a plan to 
                implement the strategy developed under 
                subparagraph (A).
  (c) Small Business Sustainability Initiative.--
          (1) Authority.--The Administrator shall establish a 
        Small Business Energy Efficiency Program to provide 
        energy efficiency assistance to small business concerns 
        through small business development centers.
          (2) Small business development centers.--
                  (A) In general.--In carrying out the 
                Efficiency Program, the Administrator shall 
                enter into agreements with small business 
                development centers under which such centers 
                shall--
                          (i) provide access to information and 
                        resources on energy efficiency 
                        practices, including on-bill financing 
                        options;
                          (ii) conduct training and educational 
                        activities;
                          (iii) offer confidential, free, one-
                        on-one, in-depth energy audits to the 
                        owners and operators of small business 
                        concerns regarding energy efficiency 
                        practices;
                          (iv) give referrals to certified 
                        professionals and other providers of 
                        energy efficiency assistance who meet 
                        such standards for educational, 
                        technical, and professional competency 
                        as the Administrator shall establish;
                          (v) to the extent not inconsistent 
                        with controlling State public utility 
                        regulations, act as a facilitator 
                        between small business concerns, 
                        electric utilities, lenders, and the 
                        Administration to facilitate on-bill 
                        financing arrangements;
                          (vi) provide necessary support to 
                        small business concerns to--
                                  (I) evaluate energy 
                                efficiency opportunities and 
                                opportunities to design or 
                                construct high performance 
                                green buildings;
                                  (II) evaluate renewable 
                                energy sources, such as the use 
                                of solar and small wind to 
                                supplement power consumption;
                                  (III) secure financing to 
                                achieve energy efficiency or to 
                                design or construct high 
                                performance green buildings; 
                                and
                                  (IV) implement energy 
                                efficiency projects;
                          (vii) assist owners of small business 
                        concerns with the development and 
                        commercialization of clean technology 
                        products, goods, services, and 
                        processes that use renewable energy 
                        sources, dramatically reduce the use of 
                        natural resources, and cut or eliminate 
                        greenhouse gas emissions through--
                                  (I) technology assessment;
                                  (II) intellectual property;
                                  (III) Small Business 
                                Innovation Research submissions 
                                under section 9 of the Small 
                                Business Act (15 U.S.C. 638);
                                  (IV) strategic alliances;
                                  (V) business model 
                                development; and
                                  (VI) preparation for 
                                investors; and
                          (viii) help small business concerns 
                        improve environmental performance by 
                        shifting to less hazardous materials 
                        and reducing waste and emissions, 
                        including by providing assistance for 
                        small business concerns to adapt the 
                        materials they use, the processes they 
                        operate, and the products and services 
                        they produce.
                  (B) Reports.--Each small business development 
                center participating in the Efficiency Program 
                shall submit to the Administrator and the 
                Administrator of the Environmental Protection 
                Agency an annual report that includes--
                          (i) a summary of the energy 
                        efficiency assistance provided by that 
                        center under the Efficiency Program;
                          (ii) the number of small business 
                        concerns assisted by that center under 
                        the Efficiency Program;
                          (iii) statistics on the total amount 
                        of energy saved as a result of 
                        assistance provided by that center 
                        under the Efficiency Program; and
                          (iv) any additional information 
                        determined necessary by the 
                        Administrator, in consultation with the 
                        association.
                  (C) Reports to congress.--Not later than 60 
                days after the date on which all reports under 
                subparagraph (B) relating to a year are 
                submitted, the Administrator shall submit to 
                the Committee on Small Business and 
                Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives a report summarizing the 
                information regarding the Efficiency Program 
                submitted by small business development centers 
                participating in that program.
          (3) Eligibility.--A small business development center 
        shall be eligible to participate in the Efficiency 
        Program only if that center is certified under section 
        21(k)(2) of the Small Business Act (15 U.S.C. 
        648(k)(2)).
          (4) Selection of participating state programs.--From 
        among small business development centers submitting 
        applications to participate in the Efficiency Program, 
        the Administrator--
                  (A) shall, to the maximum extent practicable, 
                select small business development centers in 
                such a manner so as to promote a nationwide 
                distribution of centers participating in the 
                Efficiency Program; and
                  (B) may not select more than 1 small business 
                development center in a State to participate in 
                the Efficiency Program.
          (5) Matching requirement.--Subparagraphs (A) and (B) 
        of section 21(a)(4) of the Small Business Act (15 
        U.S.C. 648(a)(4)) shall apply to assistance made 
        available under the Efficiency Program.
          (6) Grant amounts.--Each small business development 
        center selected to participate in the Efficiency 
        Program under paragraph (4) shall be eligible to 
        receive a grant in an amount equal to--
                  (A) not less than $100,000 in each fiscal 
                year; and
                  (B) not more than $300,000 in each fiscal 
                year.
          (7) Evaluation and report.--The Comptroller General 
        of the United States shall--
                  (A) not later than 30 months after the date 
                of disbursement of the first grant under the 
                Efficiency Program, initiate an evaluation of 
                that program; and
                  (B) not later than 6 months after the date of 
                the initiation of the evaluation under 
                subparagraph (A), submit to the Administrator, 
                the Committee on Small Business and 
                Entrepreneurship of the Senate, and the 
                Committee on Small Business of the House of 
                Representatives, a report containing--
                          (i) the results of the evaluation; 
                        and
                          (ii) any recommendations regarding 
                        whether the Efficiency Program, with or 
                        without modification, should be 
                        extended to include the participation 
                        of all small business development 
                        centers.
          (8) Guarantee.--To the extent not inconsistent with 
        State law, the Administrator may guarantee the timely 
        payment of a loan made to a small business concern 
        through an on-bill financing agreement on such terms 
        and conditions as the Administrator shall establish 
        through a formal rule making, after providing notice 
        and an opportunity for comment.
          (9) Implementation.--Subject to amounts approved in 
        advance in appropriations Acts and separate from 
        amounts approved to carry out section 21(a)(1) of the 
        Small Business Act (15 U.S.C. 648(a)(1)), the 
        Administrator may make grants or enter into cooperative 
        agreements to carry out this subsection.
          (10) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to make grants and enter into cooperative 
        agreements to carry out this subsection.
          (11) Termination.--The authority under this 
        subsection shall terminate 4 years after the date of 
        disbursement of the first grant under the Efficiency 
        Program.
  (d) Small Business Telecommuting.--
          (1) Pilot program.--
                  (A) In general.--The Administrator shall 
                conduct, in not more than 5 of the regions of 
                the Administration, a pilot program to provide 
                information regarding telecommuting to 
                employers that are small business concerns and 
                to encourage such employers to offer 
                telecommuting options to employees.
                  (B) Special outreach to individuals with 
                disabilities.--In carrying out the 
                Telecommuting Pilot Program, the Administrator 
                shall make a concerted effort to provide 
                information to--
                          (i) small business concerns owned by 
                        or employing individuals with 
                        disabilities, particularly veterans who 
                        are individuals with disabilities;
                          (ii) Federal, State, and local 
                        agencies having knowledge and expertise 
                        in assisting individuals with 
                        disabilities, including veterans who 
                        are individuals with disabilities; and
                          (iii) any group or organization, the 
                        primary purpose of which is to aid 
                        individuals with disabilities or 
                        veterans who are individuals with 
                        disabilities.
                  (C) Permissible activities.--In carrying out 
                the Telecommuting Pilot Program, the 
                Administrator may--
                          (i) produce educational materials and 
                        conduct presentations designed to raise 
                        awareness in the small business 
                        community of the benefits and the ease 
                        of telecommuting;
                          (ii) conduct outreach--
                                  (I) to small business 
                                concerns that are considering 
                                offering telecommuting options; 
                                and
                                  (II) as provided in 
                                subparagraph (B); and
                          (iii) acquire telecommuting 
                        technologies and equipment to be used 
                        for demonstration purposes.
                  (D) Selection of regions.--In determining 
                which regions will participate in the 
                Telecommuting Pilot Program, the Administrator 
                shall give priority consideration to regions in 
                which Federal agencies and private-sector 
                employers have demonstrated a strong regional 
                commitment to telecommuting.
          (2) Report to congress.--Not later than 2 years after 
        the date on which funds are first appropriated to carry 
        out this subsection, the Administrator shall transmit 
        to the Committee on Small Business and Entrepreneurship 
        of the Senate and the Committee on Small Business of 
        the House of Representatives a report containing the 
        results of an evaluation of the Telecommuting Pilot 
        Program and any recommendations regarding whether the 
        pilot program, with or without modification, should be 
        extended to include the participation of all regions of 
        the Administration.
          (3) Termination.--The Telecommuting Pilot Program 
        shall terminate 4 years after the date on which funds 
        are first appropriated to carry out this subsection.
          (4) Authorization of appropriations.--There is 
        authorized to be appropriated to the Administration 
        $5,000,000 to carry out this subsection.
  (e) Encouraging Innovation in Energy Efficiency.--Section 9 
of the Small Business Act (15 U.S.C. 638) is amended by adding 
at the end the following:
  ``(z) Encouraging Innovation in Energy Efficiency.--
          ``(1) Federal agency energy-related priority.--In 
        carrying out its duties under this section relating to 
        SBIR and STTR solicitations by Federal departments and 
        agencies, the Administrator shall--
                  ``(A) ensure that such departments and 
                agencies give high priority to small business 
                concerns that participate in or conduct energy 
                efficiency or renewable energy system research 
                and development projects; and
                  ``(B) include in the annual report to 
                Congress under subsection (b)(7) a 
                determination of whether the priority described 
                in subparagraph (A) is being carried out.
          ``(2) Consultation required.--The Administrator shall 
        consult with the heads of other Federal departments and 
        agencies in determining whether priority has been given 
        to small business concerns that participate in or 
        conduct energy efficiency or renewable energy system 
        research and development projects, as required by this 
        subsection.
          ``(3) Guidelines.--The Administrator shall, as soon 
        as is practicable after the date of enactment of this 
        subsection, issue guidelines and directives to assist 
        Federal agencies in meeting the requirements of this 
        subsection.
          ``(4) Definitions.--In this subsection--
                  ``(A) the term `biomass'--
                          ``(i) means any organic material that 
                        is available on a renewable or 
                        recurring basis, including--
                                  ``(I) agricultural crops;
                                  ``(II) trees grown for energy 
                                production;
                                  ``(III) wood waste and wood 
                                residues;
                                  ``(IV) plants (including 
                                aquatic plants and grasses);
                                  ``(V) residues;
                                  ``(VI) fibers;
                                  ``(VII) animal wastes and 
                                other waste materials; and
                                  ``(VIII) fats, oils, and 
                                greases (including recycled 
                                fats, oils, and greases); and
                          ``(ii) does not include--
                                  ``(I) paper that is commonly 
                                recycled; or
                                  ``(II) unsegregated solid 
                                waste;
                  ``(B) the term `energy efficiency project' 
                means the installation or upgrading of 
                equipment that results in a significant 
                reduction in energy usage; and
                  ``(C) the term `renewable energy system' 
                means a system of energy derived from--
                          ``(i) a wind, solar, biomass 
                        (including biodiesel), or geothermal 
                        source; or
                          ``(ii) hydrogen derived from biomass 
                        or water using an energy source 
                        described in clause (i).''.

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

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

SEC. 1205. ENERGY SAVING DEBENTURES.

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

SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.

  (a) Maximum Leverage.--Section 303(b)(2) of the Small 
Business Investment Act of 1958 (15 U.S.C. 303(b)(2)) is 
amended by adding at the end the following:
                  ``(D) Investments in energy saving small 
                businesses.--
                          ``(i) In general.--Subject to clause 
                        (ii), in calculating the outstanding 
                        leverage of a company for purposes of 
                        subparagraph (A), the Administrator 
                        shall exclude the amount of the cost 
                        basis of any Energy Saving qualified 
                        investment in a smaller enterprise made 
                        in the first fiscal year after the date 
                        of enactment of this subparagraph or 
                        any fiscal year thereafter by a company 
                        licensed in the applicable fiscal year.
                          ``(ii) Limitations.--
                                  ``(I) Amount of exclusion.--
                                The amount excluded under 
                                clause (i) for a company shall 
                                not exceed 33 percent of the 
                                private capital of that 
                                company.
                                  ``(II) Maximum investment.--A 
                                company shall not make an 
                                Energy Saving qualified 
                                investment in any one entity in 
                                an amount equal to more than 20 
                                percent of the private capital 
                                of that company.
                                  ``(III) Other terms.--The 
                                exclusion of amounts under 
                                clause (i) shall be subject to 
                                such terms as the Administrator 
                                may impose to ensure that there 
                                is no cost (as that term is 
                                defined in section 502 of the 
                                Federal Credit Reform Act of 
                                1990 (2 U.S.C. 661a)) with 
                                respect to purchasing or 
                                guaranteeing any debenture 
                                involved.''.
  (b) Maximum Aggregate Amount of Leverage.--Section 303(b)(4) 
of the Small Business Investment Act of 1958 (15 U.S.C. 
303(b)(4)) is amended by adding at the end the following:
                  ``(E) Investments in energy saving small 
                businesses.--
                          ``(i) In general.--Subject to clause 
                        (ii), in calculating the aggregate 
                        outstanding leverage of a company for 
                        purposes of subparagraph (A), the 
                        Administrator shall exclude the amount 
                        of the cost basis of any Energy Saving 
                        qualified investment in a smaller 
                        enterprise made in the first fiscal 
                        year after the date of enactment of 
                        this subparagraph or any fiscal year 
                        thereafter by a company licensed in the 
                        applicable fiscal year.
                          ``(ii) Limitations.--
                                  ``(I) Amount of exclusion.--
                                The amount excluded under 
                                clause (i) for a company shall 
                                not exceed 33 percent of the 
                                private capital of that 
                                company.
                                  ``(II) Maximum investment.--A 
                                company shall not make an 
                                Energy Saving qualified 
                                investment in any one entity in 
                                an amount equal to more than 20 
                                percent of the private capital 
                                of that company.
                                  ``(III) Other terms.--The 
                                exclusion of amounts under 
                                clause (i) shall be subject to 
                                such terms as the Administrator 
                                may impose to ensure that there 
                                is no cost (as that term is 
                                defined in section 502 of the 
                                Federal Credit Reform Act of 
                                1990 (2 U.S.C. 661a)) with 
                                respect to purchasing or 
                                guaranteeing any debenture 
                                involved.''.

SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.

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

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

``SEC. 381. DEFINITIONS.

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

``SEC. 382. PURPOSES.

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

``SEC. 383. ESTABLISHMENT.

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

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

  ``(a) Eligibility.--A company is eligible to apply to be 
designated as a Renewable Fuel Capital Investment company if 
the company--
          ``(1) is a newly formed for-profit entity or a newly 
        formed for-profit subsidiary of an existing entity;
          ``(2) has a management team with experience in 
        alternative energy financing or relevant venture 
        capital financing; and
          ``(3) has a primary objective of investment in 
        smaller enterprises that research, manufacture, 
        develop, produce, or bring to market goods, products, 
        or services that generate or support the production of 
        renewable energy.
  ``(b) Application.--A company desiring to be designated as a 
Renewable Fuel Capital Investment company shall submit an 
application to the Administrator that includes--
          ``(1) a business plan describing how the company 
        intends to make successful venture capital investments 
        in smaller enterprises primarily engaged in the 
        research, manufacture, development, production, or 
        bringing to market of goods, products, or services that 
        generate or support the production of renewable energy;
          ``(2) information regarding the relevant venture 
        capital qualifications and general reputation of the 
        management of the company;
          ``(3) a description of how the company intends to 
        seek to address the unmet capital needs of the smaller 
        enterprises served;
          ``(4) a proposal describing how the company intends 
        to use the grant funds provided under this part to 
        provide operational assistance to smaller enterprises 
        financed by the company, including information 
        regarding whether the company has employees with 
        appropriate professional licenses or will contract with 
        another entity when the services of such an individual 
        are necessary;
          ``(5) with respect to binding commitments to be made 
        to the company under this part, an estimate of the 
        ratio of cash to in-kind contributions;
          ``(6) a description of whether and to what extent the 
        company meets the criteria under subsection (c)(2) and 
        the objectives of the program established under this 
        part;
          ``(7) information regarding the management and 
        financial strength of any parent firm, affiliated firm, 
        or any other firm essential to the success of the 
        business plan of the company; and
          ``(8) such other information as the Administrator may 
        require.
  ``(c) Conditional Approval.--
          ``(1) In general.--From among companies submitting 
        applications under subsection (b), the Administrator 
        shall conditionally approve companies to operate as 
        Renewable Fuel Capital Investment companies.
          ``(2) Selection criteria.--In conditionally approving 
        companies under paragraph (1), the Administrator shall 
        consider--
                  ``(A) the likelihood that the company will 
                meet the goal of its business plan;
                  ``(B) the experience and background of the 
                management team of the company;
                  ``(C) the need for venture capital 
                investments in the geographic areas in which 
                the company intends to invest;
                  ``(D) the extent to which the company will 
                concentrate its activities on serving the 
                geographic areas in which it intends to invest;
                  ``(E) the likelihood that the company will be 
                able to satisfy the conditions under subsection 
                (d);
                  ``(F) the extent to which the activities 
                proposed by the company will expand economic 
                opportunities in the geographic areas in which 
                the company intends to invest;
                  ``(G) the strength of the proposal by the 
                company to provide operational assistance under 
                this part as the proposal relates to the 
                ability of the company to meet applicable cash 
                requirements and properly use in-kind 
                contributions, including the use of resources 
                for the services of licensed professionals, 
                when necessary, whether provided by employees 
                or contractors; and
                  ``(H) any other factor determined appropriate 
                by the Administrator.
          ``(3) Nationwide distribution.--From among companies 
        submitting applications under subsection (b), the 
        Administrator shall consider the selection criteria 
        under paragraph (2) and shall, to the maximum extent 
        practicable, approve at least one company from each 
        geographic region of the Administration.
  ``(d) Requirements To Be Met for Final Approval.--
          ``(1) In general.--The Administrator shall grant each 
        conditionally approved company 2 years to satisfy the 
        requirements of this subsection.
          ``(2) Capital requirement.--Each conditionally 
        approved company shall raise not less than $3,000,000 
        of private capital or binding capital commitments from 
        1 or more investors (which shall not be departments or 
        agencies of the Federal Government) who meet criteria 
        established by the Administrator.
          ``(3) Nonadministration resources for operational 
        assistance.--
                  ``(A) In general.--In order to provide 
                operational assistance to smaller enterprises 
                expected to be financed by the company, each 
                conditionally approved company shall have 
                binding commitments (for contribution in cash 
                or in-kind)--
                          ``(i) from sources other than the 
                        Administration that meet criteria 
                        established by the Administrator; and
                          ``(ii) payable or available over a 
                        multiyear period determined appropriate 
                        by the Administrator (not to exceed 10 
                        years).
                  ``(B) Exception.--The Administrator may, in 
                the discretion of the Administrator and based 
                upon a showing of special circumstances and 
                good cause, consider an applicant to have 
                satisfied the requirements of subparagraph (A) 
                if the applicant has--
                          ``(i) a viable plan that reasonably 
                        projects the capacity of the applicant 
                        to raise the amount (in cash or in-
                        kind) required under subparagraph (A); 
                        and
                          ``(ii) binding commitments in an 
                        amount equal to not less than 20 
                        percent of the total amount required 
                        under paragraph (A).
                  ``(C) Limitation.--The total amount of a in-
                kind contributions by a company shall be not 
                more than 50 percent of the total contributions 
                by a company.
  ``(e) Final Approval; Designation.--The Administrator shall, 
with respect to each applicant conditionally approved under 
subsection (c)--
          ``(1) grant final approval to the applicant to 
        operate as a Renewable Fuel Capital Investment company 
        under this part and designate the applicant as such a 
        company, if the applicant--
                  ``(A) satisfies the requirements of 
                subsection (d) on or before the expiration of 
                the time period described in that subsection; 
                and
                  ``(B) enters into a participation agreement 
                with the Administrator; or
          ``(2) if the applicant fails to satisfy the 
        requirements of subsection (d) on or before the 
        expiration of the time period described in paragraph 
        (1) of that subsection, revoke the conditional approval 
        granted under that subsection.

``SEC. 385. DEBENTURES.

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

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

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

``SEC. 387. FEES.

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

``SEC. 388. FEE CONTRIBUTION.

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

``SEC. 389. OPERATIONAL ASSISTANCE GRANTS.

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

``SEC. 390. BANK PARTICIPATION.

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

``SEC. 391. FEDERAL FINANCING BANK.

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

``SEC. 392. REPORTING REQUIREMENT.

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

``SEC. 393. EXAMINATIONS.

  ``(a) In General.--Each Renewable Fuel Capital Investment 
company that participates in the program established under this 
part shall be subject to examinations made at the direction of 
the Investment Division of the Administration in accordance 
with this section.
  ``(b) Assistance of Private Sector Entities.--Examinations 
under this section may be conducted with the assistance of a 
private sector entity that has both the qualifications and the 
expertise necessary to conduct such examinations.
  ``(c) Costs.--
          ``(1) Assessment.--
                  ``(A) In general.--The Administrator may 
                assess the cost of examinations under this 
                section, including compensation of the 
                examiners, against the company examined.
                  ``(B) Payment.--Any company against which the 
                Administrator assesses costs under this 
                paragraph shall pay such costs.
          ``(2) Deposit of funds.--Funds collected under this 
        section shall be deposited in the account for salaries 
        and expenses of the Administration.

``SEC. 394. MISCELLANEOUS.

  ``To the extent such procedures are not inconsistent with the 
requirements of this part, the Administrator may take such 
action as set forth in sections 309, 311, 312, and 314 and an 
officer, director, employee, agent, or other participant in the 
management or conduct of the affairs of a Renewable Fuel 
Capital Investment company shall be subject to the requirements 
of such sections.

``SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

  ``Using the procedures for removing or suspending a director 
or an officer of a licensee set forth in section 313 (to the 
extent such procedures are not inconsistent with the 
requirements of this part), the Administrator may remove or 
suspend any director or officer of any Renewable Fuel Capital 
Investment company.

``SEC. 396. REGULATIONS.

  ``The Administrator may issue such regulations as the 
Administrator determines necessary to carry out the provisions 
of this part in accordance with its purposes.

``SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS.

  ``(a) In General.--Subject to the availability of 
appropriations, the Administrator is authorized to make 
$15,000,000 in operational assistance grants under section 389 
for each of fiscal years 2008 and 2009.
  ``(b) Funds Collected for Examinations.--Funds deposited 
under section 393(c)(2) are authorized to be appropriated only 
for the costs of examinations under section 393 and for the 
costs of other oversight activities with respect to the program 
established under this part.

``SEC. 398. TERMINATION.

  ``The program under this part shall terminate at the end of 
the second full fiscal year after the date that the 
Administrator establishes the program under this part.''.

SEC. 1208. STUDY AND REPORT.

  The Administrator of the Small Business Administration shall 
conduct a study of the Renewable Fuel Capital Investment 
Program under part C of title III of the Small Business 
Investment Act of 1958, as added by this Act. Not later than 3 
years after the date of enactment of this Act, the 
Administrator shall complete the study under this section and 
submit to Congress a report regarding the results of the study.

                         TITLE XIII--SMART GRID


SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF ELECTRICITY GRID.

  It is the policy of the United States to support the 
modernization of the Nation's electricity transmission and 
distribution system to maintain a reliable and secure 
electricity infrastructure that can meet future demand growth 
and to achieve each of the following, which together 
characterize a Smart Grid:
          (1) Increased use of digital information and controls 
        technology to improve reliability, security, and 
        efficiency of the electric grid.
          (2) Dynamic optimization of grid operations and 
        resources, with full cyber-security.
          (3) Deployment and integration of distributed 
        resources and generation, including renewable 
        resources.
          (4) Development and incorporation of demand response, 
        demand-side resources, and energy-efficiency resources.
          (5) Deployment of ``smart'' technologies (real-time, 
        automated, interactive technologies that optimize the 
        physical operation of appliances and consumer devices) 
        for metering, communications concerning grid operations 
        and status, and distribution automation.
          (6) Integration of ``smart'' appliances and consumer 
        devices.
          (7) Deployment and integration of advanced 
        electricity storage and peak-shaving technologies, 
        including plug-in electric and hybrid electric 
        vehicles, and thermal-storage air conditioning.
          (8) Provision to consumers of timely information and 
        control options.
          (9) Development of standards for communication and 
        interoperability of appliances and equipment connected 
        to the electric grid, including the infrastructure 
        serving the grid.
          (10) Identification and lowering of unreasonable or 
        unnecessary barriers to adoption of smart grid 
        technologies, practices, and services.

SEC. 1302. SMART GRID SYSTEM REPORT.

  The Secretary, acting through the Assistant Secretary of the 
Office of Electricity Delivery and Energy Reliability (referred 
to in this section as the ``OEDER'') and through the Smart Grid 
Task Force established in section 1303, shall, after consulting 
with any interested individual or entity as appropriate, no 
later than one year after enactment, and every two years 
thereafter, report to Congress concerning the status of smart 
grid deployments nationwide and any regulatory or government 
barriers to continued deployment. The report shall provide the 
current status and prospects of smart grid development, 
including information on technology penetration, communications 
network capabilities, costs, and obstacles. It may include 
recommendations for State and Federal policies or actions 
helpful to facilitate the transition to a smart grid. To the 
extent appropriate, it should take a regional perspective. In 
preparing this report, the Secretary shall solicit advice and 
contributions from the Smart Grid Advisory Committee created in 
section 1303; from other involved Federal agencies including 
but not limited to the Federal Energy Regulatory Commission 
(``Commission''), the National Institute of Standards and 
Technology (``Institute''), and the Department of Homeland 
Security; and from other stakeholder groups not already 
represented on the Smart Grid Advisory Committee.

SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK FORCE.

  (a) Smart Grid Advisory Committee.--
          (1) Establishment.--The Secretary shall establish, 
        within 90 days of enactment of this Part, a Smart Grid 
        Advisory Committee (either as an independent entity or 
        as a designated sub-part of a larger advisory committee 
        on electricity matters). The Smart Grid Advisory 
        Committee shall include eight or more members appointed 
        by the Secretary who have sufficient experience and 
        expertise to represent the full range of smart grid 
        technologies and services, to represent both private 
        and non-Federal public sector stakeholders. One member 
        shall be appointed by the Secretary to Chair the Smart 
        Grid Advisory Committee.
          (2) Mission.--The mission of the Smart Grid Advisory 
        Committee shall be to advise the Secretary, the 
        Assistant Secretary, and other relevant Federal 
        officials concerning the development of smart grid 
        technologies, the progress of a national transition to 
        the use of smart-grid technologies and services, the 
        evolution of widely-accepted technical and practical 
        standards and protocols to allow interoperability and 
        inter-communication among smart-grid capable devices, 
        and the optimum means of using Federal incentive 
        authority to encourage such progress.
          (3) Applicability of federal advisory committee 
        act.--The Federal Advisory Committee Act (5 U.S.C. 
        App.) shall apply to the Smart Grid Advisory Committee.
  (b) Smart Grid Task Force.--
          (1) Establishment.--The Assistant Secretary of the 
        Office of Electricity Delivery and Energy Reliability 
        shall establish, within 90 days of enactment of this 
        Part, a Smart Grid Task Force composed of designated 
        employees from the various divisions of that office who 
        have responsibilities related to the transition to 
        smart-grid technologies and practices. The Assistant 
        Secretary or his designee shall be identified as the 
        Director of the Smart Grid Task Force. The Chairman of 
        the Federal Energy Regulatory Commission and the 
        Director of the National Institute of Standards and 
        Technology shall each designate at least one employee 
        to participate on the Smart Grid Task Force. Other 
        members may come from other agencies at the invitation 
        of the Assistant Secretary or the nomination of the 
        head of such other agency. The Smart Grid Task Force 
        shall, without disrupting the work of the Divisions or 
        Offices from which its members are drawn, provide an 
        identifiable Federal entity to embody the Federal role 
        in the national transition toward development and use 
        of smart grid technologies.
          (2) Mission.--The mission of the Smart Grid Task 
        Force shall be to insure awareness, coordination and 
        integration of the diverse activities of the Office and 
        elsewhere in the Federal government related to smart-
        grid technologies and practices, including but not 
        limited to: smart grid research and development; 
        development of widely accepted smart-grid standards and 
        protocols; the relationship of smart-grid technologies 
        and practices to electric utility regulation; the 
        relationship of smart-grid technologies and practices 
        to infrastructure development, system reliability and 
        security; and the relationship of smart-grid 
        technologies and practices to other facets of 
        electricity supply, demand, transmission, distribution, 
        and policy. The Smart Grid Task Force shall collaborate 
        with the Smart Grid Advisory Committee and other 
        Federal agencies and offices. The Smart Grid Task Force 
        shall meet at the call of its Director as necessary to 
        accomplish its mission.
  (c) Authorization.--There are authorized to be appropriated 
for the purposes of this section such sums as are necessary to 
the Secretary to support the operations of the Smart Grid 
Advisory Committee and Smart Grid Task Force for each of fiscal 
years 2008 through 2020.

SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION.

  (a) Power Grid Digital Information Technology.--The 
Secretary, in consultation with the Federal Energy Regulatory 
Commission and other appropriate agencies, electric utilities, 
the States, and other stakeholders, shall carry out a program--
          (1) to develop advanced techniques for measuring peak 
        load reductions and energy-efficiency savings from 
        smart metering, demand response, distributed 
        generation, and electricity storage systems;
          (2) to investigate means for demand response, 
        distributed generation, and storage to provide 
        ancillary services;
          (3) to conduct research to advance the use of wide-
        area measurement and control networks, including data 
        mining, visualization, advanced computing, and secure 
        and dependable communications in a highly-distributed 
        environment;
          (4) to test new reliability technologies, including 
        those concerning communications network capabilities, 
        in a grid control room environment against a 
        representative set of local outage and wide area 
        blackout scenarios;
          (5) to identify communications network capacity 
        needed to implement advanced technologies.
          (6) to investigate the feasibility of a transition to 
        time-of-use and real-time electricity pricing;
          (7) to develop algorithms for use in electric 
        transmission system software applications;
          (8) to promote the use of underutilized electricity 
        generation capacity in any substitution of electricity 
        for liquid fuels in the transportation system of the 
        United States; and
          (9) in consultation with the Federal Energy 
        Regulatory Commission, to propose interconnection 
        protocols to enable electric utilities to access 
        electricity stored in vehicles to help meet peak demand 
        loads.
  (b) Smart Grid Regional Demonstration Initiative.--
          (1) In general.--The Secretary shall establish a 
        smart grid regional demonstration initiative (referred 
        to in this subsection as the ``Initiative'') composed 
        of demonstration projects specifically focused on 
        advanced technologies for use in power grid sensing, 
        communications, analysis, and power flow control. The 
        Secretary shall seek to leverage existing smart grid 
        deployments.
          (2) Goals.--The goals of the Initiative shall be--
                  (A) to demonstrate the potential benefits of 
                concentrated investments in advanced grid 
                technologies on a regional grid;
                  (B) to facilitate the commercial transition 
                from the current power transmission and 
                distribution system technologies to advanced 
                technologies;
                  (C) to facilitate the integration of advanced 
                technologies in existing electric networks to 
                improve system performance, power flow control, 
                and reliability;
                  (D) to demonstrate protocols and standards 
                that allow for the measurement and validation 
                of the energy savings and fossil fuel emission 
                reductions associated with the installation and 
                use of energy efficiency and demand response 
                technologies and practices; and
                  (E) to investigate differences in each region 
                and regulatory environment regarding best 
                practices in implementing smart grid 
                technologies.
          (3) Demonstration projects.--
                  (A) In general.--In carrying out the 
                initiative, the Secretary shall carry out smart 
                grid demonstration projects in up to 5 
                electricity control areas, including rural 
                areas and at least 1 area in which the majority 
                of generation and transmission assets are 
                controlled by a tax-exempt entity.
                  (B) Cooperation.--A demonstration project 
                under subparagraph (A) shall be carried out in 
                cooperation with the electric utility that owns 
                the grid facilities in the electricity control 
                area in which the demonstration project is 
                carried out.
                  (C) Federal share of cost of technology 
                investments.--The Secretary shall provide to an 
                electric utility described in subparagraph (B) 
                financial assistance for use in paying an 
                amount equal to not more than 50 percent of the 
                cost of qualifying advanced grid technology 
                investments made by the electric utility to 
                carry out a demonstration project.
                  (D) Ineligibility for grants.--No person or 
                entity participating in any demonstration 
                project conducted under this subsection shall 
                be eligible for grants under section 1306 for 
                otherwise qualifying investments made as part 
                of that demonstration project.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated--
          (1) to carry out subsection (a), such sums as are 
        necessary for each of fiscal years 2008 through 2012; 
        and
          (2) to carry out subsection (b), $100,000,000 for 
        each of fiscal years 2008 through 2012.

SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK.

  (a) Interoperability Framework.--The Director of the National 
Institute of Standards and Technology shall have primary 
responsibility to coordinate the development of a framework 
that includes protocols and model standards for information 
management to achieve interoperability of smart grid devices 
and systems. Such protocols and standards shall further align 
policy, business, and technology approaches in a manner that 
would enable all electric resources, including demand-side 
resources, to contribute to an efficient, reliable electricity 
network. In developing such protocols and standards--
          (1) the Director shall seek input and cooperation 
        from the Commission, OEDER and its Smart Grid Task 
        Force, the Smart Grid Advisory Committee, other 
        relevant Federal and State agencies; and
          (2) the Director shall also solicit input and 
        cooperation from private entities interested in such 
        protocols and standards, including but not limited to 
        the Gridwise Architecture Council, the International 
        Electrical and Electronics Engineers, the National 
        Electric Reliability Organization recognized by the 
        Federal Energy Regulatory Commission, and National 
        Electrical Manufacturer's Association.
  (b) Scope of Framework.--The framework developed under 
subsection (a) shall be flexible, uniform and technology 
neutral, including but not limited to technologies for managing 
smart grid information, and designed--
          (1) to accommodate traditional, centralized 
        generation and transmission resources and consumer 
        distributed resources, including distributed 
        generation, renewable generation, energy storage, 
        energy efficiency, and demand response and enabling 
        devices and systems;
          (2) to be flexible to incorporate--
                  (A) regional and organizational differences; 
                and
                  (B) technological innovations;
          (3) to consider the use of voluntary uniform 
        standards for certain classes of mass-produced electric 
        appliances and equipment for homes and businesses that 
        enable customers, at their election and consistent with 
        applicable State and Federal laws, and are manufactured 
        with the ability to respond to electric grid 
        emergencies and demand response signals by curtailing 
        all, or a portion of, the electrical power consumed by 
        the appliances or equipment in response to an emergency 
        or demand response signal, including through--
                  (A) load reduction to reduce total electrical 
                demand;
                  (B) adjustment of load to provide grid 
                ancillary services; and
                  (C) in the event of a reliability crisis that 
                threatens an outage, short-term load shedding 
                to help preserve the stability of the grid; and
          (4) such voluntary standards should incorporate 
        appropriate manufacturer lead time.
  (c) Timing of Framework Development.--The Institute shall 
begin work pursuant to this section within 60 days of 
enactment. The Institute shall provide and publish an initial 
report on progress toward recommended or consensus standards 
and protocols within one year after enactment, further reports 
at such times as developments warrant in the judgment of the 
Institute, and a final report when the Institute determines 
that the work is completed or that a Federal role is no longer 
necessary.
  (d) Standards for Interoperability in Federal Jurisdiction.--
At any time after the Institute's work has led to sufficient 
consensus in the Commission's judgment, the Commission shall 
institute a rulemaking proceeding to adopt such standards and 
protocols as may be necessary to insure smart-grid 
functionality and interoperability in interstate transmission 
of electric power, and regional and wholesale electricity 
markets.
  (e) Authorization.--There are authorized to be appropriated 
for the purposes of this section $5,000,000 to the Institute to 
support the activities required by this subsection for each of 
fiscal years 2008 through 2012.

SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT COSTS.

  (a) Matching Fund.--The Secretary shall establish a Smart 
Grid Investment Matching Grant Program to provide reimbursement 
of one-fifth (20 percent) of qualifying Smart Grid investments.
  (b) Qualifying Investments.--Qualifying Smart Grid 
investments may include any of the following made on or after 
the date of enactment of this Act:
          (1) In the case of appliances covered for purposes of 
        establishing energy conservation standards under part B 
        of title III of the Energy Policy and Conservation Act 
        of 1975 (42 U.S.C. 6291 et seq.), the documented 
        expenditures incurred by a manufacturer of such 
        appliances associated with purchasing or designing, 
        creating the ability to manufacture, and manufacturing 
        and installing for one calendar year, internal devices 
        that allow the appliance to engage in Smart Grid 
        functions.
          (2) In the case of specialized electricity-using 
        equipment, including motors and drivers, installed in 
        industrial or commercial applications, the documented 
        expenditures incurred by its owner or its manufacturer 
        of installing devices or modifying that equipment to 
        engage in Smart Grid functions.
          (3) In the case of transmission and distribution 
        equipment fitted with monitoring and communications 
        devices to enable smart grid functions, the documented 
        expenditures incurred by the electric utility to 
        purchase and install such monitoring and communications 
        devices.
          (4) In the case of metering devices, sensors, control 
        devices, and other devices integrated with and attached 
        to an electric utility system or retail distributor or 
        marketer of electricity that are capable of engaging in 
        Smart Grid functions, the documented expenditures 
        incurred by the electric utility, distributor, or 
        marketer and its customers to purchase and install such 
        devices.
          (5) In the case of software that enables devices or 
        computers to engage in Smart Grid functions, the 
        documented purchase costs of the software.
          (6) In the case of entities that operate or 
        coordinate operations of regional electric grids, the 
        documented expenditures for purchasing and installing 
        such equipment that allows Smart Grid functions to 
        operate and be combined or coordinated among multiple 
        electric utilities and between that region and other 
        regions.
          (7) In the case of persons or entities other than 
        electric utilities owning and operating a distributed 
        electricity generator, the documented expenditures of 
        enabling that generator to be monitored, controlled, or 
        otherwise integrated into grid operations and 
        electricity flows on the grid utilizing Smart Grid 
        functions.
          (8) In the case of electric or hybrid-electric 
        vehicles, the documented expenses for devices that 
        allow the vehicle to engage in Smart Grid functions 
        (but not the costs of electricity storage for the 
        vehicle).
          (9) The documented expenditures related to purchasing 
        and implementing Smart Grid functions in such other 
        cases as the Secretary shall identify. In making such 
        grants, the Secretary shall seek to reward innovation 
        and early adaptation, even if success is not complete, 
        rather than deployment of proven and commercially 
        viable technologies.
  (c) Investments Not Included.--Qualifying Smart Grid 
investments do not include any of the following:
          (1) Investments or expenditures for Smart Grid 
        technologies, devices, or equipment that are eligible 
        for specific tax credits or deductions under the 
        Internal Revenue Code, as amended.
          (2) Expenditures for electricity generation, 
        transmission, or distribution infrastructure or 
        equipment not directly related to enabling Smart Grid 
        functions.
          (3) After the final date for State consideration of 
        the Smart Grid Information Standard under section 1307 
        (paragraph (17) of section 111(d) of the Public Utility 
        Regulatory Policies Act of 1978), an investment that is 
        not in compliance with such standard.
          (4) After the development and publication by the 
        Institute of protocols and model standards for 
        interoperability of smart grid devices and 
        technologies, an investment that fails to incorporate 
        any of such protocols or model standards.
          (5) Expenditures for physical interconnection of 
        generators or other devices to the grid except those 
        that are directly related to enabling Smart Grid 
        functions.
          (6) Expenditures for ongoing salaries, benefits, or 
        personnel costs not incurred in the initial 
        installation, training, or start up of smart grid 
        functions.
          (7) Expenditures for travel, lodging, meals or other 
        personal costs.
          (8) Ongoing or routine operation, billing, customer 
        relations, security, and maintenance expenditures.
          (9) Such other expenditures that the Secretary 
        determines not to be Qualifying Smart Grid Investments 
        by reason of the lack of the ability to perform Smart 
        Grid functions or lack of direct relationship to Smart 
        Grid functions.
  (d) Smart Grid Functions.--The term ``smart grid functions'' 
means any of the following:
          (1) The ability to develop, store, send and receive 
        digital information concerning electricity use, costs, 
        prices, time of use, nature of use, storage, or other 
        information relevant to device, grid, or utility 
        operations, to or from or by means of the electric 
        utility system, through one or a combination of devices 
        and technologies.
          (2) The ability to develop, store, send and receive 
        digital information concerning electricity use, costs, 
        prices, time of use, nature of use, storage, or other 
        information relevant to device, grid, or utility 
        operations to or from a computer or other control 
        device.
          (3) The ability to measure or monitor electricity use 
        as a function of time of day, power quality 
        characteristics such as voltage level, current, cycles 
        per second, or source or type of generation and to 
        store, synthesize or report that information by digital 
        means.
          (4) The ability to sense and localize disruptions or 
        changes in power flows on the grid and communicate such 
        information instantaneously and automatically for 
        purposes of enabling automatic protective responses to 
        sustain reliability and security of grid operations.
          (5) The ability to detect, prevent, communicate with 
        regard to, respond to, or recover from system security 
        threats, including cyber-security threats and 
        terrorism, using digital information, media, and 
        devices.
          (6) The ability of any appliance or machine to 
        respond to such signals, measurements, or 
        communications automatically or in a manner programmed 
        by its owner or operator without independent human 
        intervention.
          (7) The ability to use digital information to operate 
        functionalities on the electric utility grid that were 
        previously electro-mechanical or manual.
          (8) The ability to use digital controls to manage and 
        modify electricity demand, enable congestion 
        management, assist in voltage control, provide 
        operating reserves, and provide frequency regulation.
          (9) Such other functions as the Secretary may 
        identify as being necessary or useful to the operation 
        of a Smart Grid.
  (e) The Secretary shall--
          (1) establish and publish in the Federal Register, 
        within one year after the enactment of this Act 
        procedures by which applicants who have made qualifying 
        Smart Grid investments can seek and obtain 
        reimbursement of one-fifth of their documented 
        expenditures;
          (2) establish procedures to ensure that there is no 
        duplication or multiple reimbursement for the same 
        investment or costs, that the reimbursement goes to the 
        party making the actual expenditures for Qualifying 
        Smart Grid Investments, and that the grants made have 
        significant effect in encouraging and facilitating the 
        development of a smart grid;
          (3) maintain public records of reimbursements made, 
        recipients, and qualifying Smart Grid investments which 
        have received reimbursements;
          (4) establish procedures to provide, in cases deemed 
        by the Secretary to be warranted, advance payment of 
        moneys up to the full amount of the projected eventual 
        reimbursement, to creditworthy applicants whose ability 
        to make Qualifying Smart Grid Investments may be 
        hindered by lack of initial capital, in lieu of any 
        later reimbursement for which that applicant qualifies, 
        and subject to full return of the advance payment in 
        the event that the Qualifying Smart Grid investment is 
        not made; and
          (5) have and exercise the discretion to deny grants 
        for investments that do not qualify in the reasonable 
        judgment of the Secretary.
  (f) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary such sums as are necessary for 
the administration of this section and the grants to be made 
pursuant to this section for fiscal years 2008 through 2012.

SEC. 1307. STATE CONSIDERATION OF SMART GRID.

  (a) Section 111(d) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end 
the following:
          ``(16) Consideration of smart grid investments.--
                  ``(A) In general.--Each State shall consider 
                requiring that, prior to undertaking 
                investments in nonadvanced grid technologies, 
                an electric utility of the State demonstrate to 
                the State that the electric utility considered 
                an investment in a qualified smart grid system 
                based on appropriate factors, including--
                          ``(i) total costs;
                          ``(ii) cost-effectiveness;
                          ``(iii) improved reliability;
                          ``(iv) security;
                          ``(v) system performance; and
                          ``(vi) societal benefit.
                  ``(B) Rate recovery.--Each State shall 
                consider authorizing each electric utility of 
                the State to recover from ratepayers any 
                capital, operating expenditure, or other costs 
                of the electric utility relating to the 
                deployment of a qualified smart grid system, 
                including a reasonable rate of return on the 
                capital expenditures of the electric utility 
                for the deployment of the qualified smart grid 
                system.
                  ``(C) Obsolete equipment.--Each State shall 
                consider authorizing any electric utility or 
                other party of the State to deploy a qualified 
                smart grid system to recover in a timely manner 
                the remaining book-value costs of any equipment 
                rendered obsolete by the deployment of the 
                qualified smart grid system, based on the 
                remaining depreciable life of the obsolete 
                equipment.
          ``(17) Smart grid information.--
                  ``(A) Standard.--All electricity purchasers 
                shall be provided direct access, in written or 
                electronic machine-readable form as 
                appropriate, to information from their 
                electricity provider as provided in 
                subparagraph (B).
                  ``(B) Information.--Information provided 
                under this section, to the extent practicable, 
                shall include:
                          ``(i) Prices.--Purchasers and other 
                        interested persons shall be provided 
                        with information on--
                                  ``(I) time-based electricity 
                                prices in the wholesale 
                                electricity market; and
                                  ``(II) time-based electricity 
                                retail prices or rates that are 
                                available to the purchasers.
                          ``(ii) Usage.--Purchasers shall be 
                        provided with the number of electricity 
                        units, expressed in kwh, purchased by 
                        them.
                          ``(iii) Intervals and projections.--
                        Updates of information on prices and 
                        usage shall be offered on not less than 
                        a daily basis, shall include hourly 
                        price and use information, where 
                        available, and shall include a day-
                        ahead projection of such price 
                        information to the extent available.
                          ``(iv) Sources.--Purchasers and other 
                        interested persons shall be provided 
                        annually with written information on 
                        the sources of the power provided by 
                        the utility, to the extent it can be 
                        determined, by type of generation, 
                        including greenhouse gas emissions 
                        associated with each type of 
                        generation, for intervals during which 
                        such information is available on a 
                        cost-effective basis.
                  ``(C) Access.--Purchasers shall be able to 
                access their own information at any time 
                through the internet and on other means of 
                communication elected by that utility for Smart 
                Grid applications. Other interested persons 
                shall be able to access information not 
                specific to any purchaser through the Internet. 
                Information specific to any purchaser shall be 
                provided solely to that purchaser.''.
  (b) Compliance.--
          (1) Time limitations.--Section 112(b) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 
        2622(b)) is amended by adding the following at the end 
        thereof:
          ``(6)(A) Not later than 1 year after the enactment of 
        this paragraph, each State regulatory authority (with 
        respect to each electric utility for which it has 
        ratemaking authority) and each nonregulated utility 
        shall commence the consideration referred to in section 
        111, or set a hearing date for consideration, with 
        respect to the standards established by paragraphs (17) 
        through (18) of section 111(d).
          ``(B) Not later than 2 years after the date of the 
        enactment of the this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority), and each 
        nonregulated electric utility, shall complete the 
        consideration, and shall make the determination, 
        referred to in section 111 with respect to each 
        standard established by paragraphs (17) through (18) of 
        section 111(d).''.
          (2) Failure to comply.--Section 112(c) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 
        2622(c)) is amended by adding the following at the end:
  ``In the case of the standards established by paragraphs (16) 
through (19) of section 111(d), the reference contained in this 
subsection to the date of enactment of this Act shall be deemed 
to be a reference to the date of enactment of such 
paragraphs.''.
          (3) Prior state actions.--Section 112(d) of the 
        Public Utility Regulatory Policies Act of 1978 (16 
        U.S.C. 2622(d)) is amended by inserting ``and 
        paragraphs (17) through (18)'' before ``of section 
        111(d)''.

SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE DEVELOPMENT 
                    OF COMBINED HEAT AND POWER FACILITIES.

  (a) Study.--
          (1) In general.--The Secretary, in consultation with 
        the States and other appropriate entities, shall 
        conduct a study of the laws (including regulations) 
        affecting the siting of privately owned electric 
        distribution wires on and across public rights-of-way.
          (2) Requirements.--The study under paragraph (1) 
        shall include--
                  (A) an evaluation of--
                          (i) the purposes of the laws; and
                          (ii) the effect the laws have on the 
                        development of combined heat and power 
                        facilities;
                  (B) a determination of whether a change in 
                the laws would have any operating, reliability, 
                cost, or other impacts on electric utilities 
                and the customers of the electric utilities; 
                and
                  (C) an assessment of--
                          (i) whether privately owned electric 
                        distribution wires would result in 
                        duplicative facilities; and
                          (ii) whether duplicative facilities 
                        are necessary or desirable.
  (b) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that describes the results of the study conducted under 
subsection (a).

SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID SYSTEMS.

  (a) DOE Study.--The Secretary shall, within 18 months after 
the date of enactment of this Act, submit a report to Congress 
that provides a quantitative assessment and determination of 
the existing and potential impacts of the deployment of Smart 
Grid systems on improving the security of the Nation's 
electricity infrastructure and operating capability. The report 
shall include but not be limited to specific recommendations on 
each of the following:
          (1) How smart grid systems can help in making the 
        Nation's electricity system less vulnerable to 
        disruptions due to intentional acts against the system.
          (2) How smart grid systems can help in restoring the 
        integrity of the Nation's electricity system subsequent 
        to disruptions.
          (3) How smart grid systems can facilitate nationwide, 
        interoperable emergency communications and control of 
        the Nation's electricity system during times of 
        localized, regional, or nationwide emergency.
          (4) What risks must be taken into account that smart 
        grid systems may, if not carefully created and managed, 
        create vulnerability to security threats of any sort, 
        and how such risks may be mitigated.
  (b) Consultation.--The Secretary shall consult with other 
Federal agencies in the development of the report under this 
section, including but not limited to the Secretary of Homeland 
Security, the Federal Energy Regulatory Commission, and the 
Electric Reliability Organization certified by the Commission 
under section 215(c) of the Federal Power Act (16 U.S.C. 824o) 
as added by section 1211 of the Energy Policy Act of 2005 
(Public Law 109-58; 119 Stat. 941).

               TITLE XIV--RENEWABLE ELECTRICITY STANDARD


SEC. 1401. RENEWABLE ELECTRICITY STANDARD.

  (a) In General.--Title VI of the Public Utility Regulatory 
Policies Act of 1978 is amended by adding at the end the 
following:

``SEC. 610. RENEWABLE ELECTRICITY STANDARD.

  ``(a) Definitions.--For purposes of this section:
          ``(1) Biomass.--
                  ``(A) In general.--The term `biomass' means 
                each of the following:
                          ``(i) Cellulosic (plant fiber) 
                        organic materials from a plant that is 
                        planted for the purpose of being used 
                        to produce energy.
                          ``(ii) Nonhazardous, plant or algal 
                        matter that is derived from any of the 
                        following:
                                  ``(I) An agricultural crop, 
                                crop byproduct or residue 
                                resource.
                                  ``(II) Waste such as 
                                landscape or right-of-way 
                                trimmings (but not including 
                                municipal solid waste, 
                                recyclable postconsumer waste 
                                paper, painted, treated, or 
                                pressurized wood, wood 
                                contaminated with plastic or 
                                metals).
                          ``(iii) Animal waste or animal 
                        byproducts.
                          ``(iv) Landfill methane.
                  ``(B) National forest lands and certain other 
                public lands.--With respect to organic material 
                removed from National Forest System lands or 
                from public lands administered by the Secretary 
                of the Interior, the term `biomass' covers only 
                organic material from (i) ecological forest 
                restoration; (ii) pre-commercial thinnings; 
                (iii) brush; (iv) mill residues; and (v) slash.
                  ``(C) Exclusion of certain federal lands.--
                Notwithstanding subparagraph (B), material or 
                matter that would otherwise qualify as biomass 
                are not included in the term biomass if they 
                are located on the following Federal lands:
                          ``(i) Federal land containing old 
                        growth forest or late successional 
                        forest unless the Secretary of the 
                        Interior or the Secretary of 
                        Agriculture determines that the removal 
                        of organic material from such land is 
                        appropriate for the applicable forest 
                        type and maximizes the retention of 
                        late-successional and large and old 
                        growth trees, late-successional and old 
                        growth forest structure, and late-
                        successional and old growth forest 
                        composition.
                          ``(ii) Federal land on which the 
                        removal of vegetation is prohibited, 
                        including components of the National 
                        Wilderness Preservation System.
                          ``(iii) Wilderness Study Areas.
                          ``(iv) Inventoried roadless areas.
                          ``(v) Components of the National 
                        Landscape Conservation System.
                          ``(vi) National Monuments.
          ``(2) Eligible facility.--The term `eligible 
        facility' means--
                  ``(A) a facility for the generation of 
                electric energy from a renewable energy 
                resource that is placed in service on or after 
                January 1, 2001; or
                  ``(B) a repowering or cofiring increment.
          ``(3) Existing facility.--The term `existing 
        facility' means a facility for the generation of 
        electric energy from a renewable energy resource that 
        is not an eligible facility.
          ``(4) Incremental hydropower.--The term `incremental 
        hydropower' means additional generation that is 
        achieved from increased efficiency or additions of 
        capacity made on or after January 1, 2001, or the 
        effective date of an existing applicable State 
        renewable portfolio standard program at a hydroelectric 
        facility that was placed in service before that date.
          ``(5) Indian land.--The term `Indian land' means--
                  ``(A) any land within the limits of any 
                Indian reservation, pueblo, or rancheria;
                  ``(B) any land not within the limits of any 
                Indian reservation, pueblo, or rancheria title 
                to which was on the date of enactment of this 
                paragraph either held by the United States for 
                the benefit of any Indian tribe or individual 
                or held by any Indian tribe or individual 
                subject to restriction by the United States 
                against alienation;
                  ``(C) any dependent Indian community; or
                  ``(D) any land conveyed to any Alaska Native 
                corporation under the Alaska Native Claims 
                Settlement Act.
          ``(6) Indian tribe.--The term `Indian tribe' means 
        any Indian tribe, band, nation, or other organized 
        group or community, including any Alaskan Native 
        village or regional or village corporation as defined 
        in or established pursuant to the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.), which is 
        recognized as eligible for the special programs and 
        services provided by the United States to Indians 
        because of their status as Indians.
          ``(7) Renewable energy.--The term `renewable energy' 
        means electric energy generated by a renewable energy 
        resource.
          ``(8) Renewable energy resource.--The term `renewable 
        energy resource' means solar, wind, ocean, tidal, 
        geothermal energy, biomass, landfill gas, incremental 
        hydropower, or hydrokinetic energy.
          ``(9) Repowering or cofiring increment.--The term 
        `repowering or cofiring increment' means--
                  ``(A) the additional generation from a 
                modification that is placed in service on or 
                after January 1, 2001, to expand electricity 
                production at a facility used to generate 
                electric energy from a renewable energy 
                resource;
                  ``(B) the additional generation above the 
                average generation in the 3 years preceding the 
                date of enactment of this section at a facility 
                used to generate electric energy from a 
                renewable energy resource or to cofire biomass 
                that was placed in service before the date of 
                enactment of this section: or
                  ``(C) the portion of the electric generation 
                from a facility placed in service on or after 
                January 1, 2001, or a modification to a 
                facility placed in service before the date of 
                enactment of this section made on or after 
                January 1, 2001, associated with cofiring 
                biomass.
          ``(10) Retail electric supplier.--(A) The term 
        `retail electric supplier' means a person that sells 
        electric energy to electric consumers (other than 
        consumers in Hawaii) that sold not less than 1,000,000 
        megawatt-hours of electric energy to electric consumers 
        for purposes other than resale during the preceding 
        calendar year. For purposes of this section, a person 
        that sells electric energy to electric consumers that, 
        in combination with the sales of any affiliate 
        organized after the date of enactment of this section, 
        sells not less that 1,000,000 megawatt hours of 
        electric energy to consumers for purposes other than 
        resale shall qualify as a retail electric supplier. For 
        purposes of this paragraph, sales by any person to a 
        parent company or to other affiliates of such person 
        shall not be treated as sales to electric consumers.
          ``(B) Such term does not include the United States, a 
        State or any political subdivision of a State, or any 
        agency, authority, or instrumentality of any one or 
        more of the foregoing, or a rural electric cooperative, 
        except that a political subdivision of   a State, or an 
        agency, authority or instrumentality of the United 
        States, a State or a political subdivision of a State, 
        or a rural electric cooperative that sells electric 
        energy to electric consumers or any other entity that 
        sells electric energy to electric consumers that would 
        not otherwise qualify as a retail electric supplier 
        shall be deemed a retail electric supplier if such 
        entity notifies the Secretary that it voluntarily 
        agrees to participate in the Federal renewable 
        electricity standard program.
          ``(11) Retail electric supplier's base amount.--The 
        term `retail electric supplier's base amount' means the 
        total amount of electric energy sold by the retail 
        electric supplier, expressed in terms of kilowatt 
        hours, to electric customers for purposes other than 
        resale during the most recent calendar year for which 
        information is available, excluding--
                  ``(A) electric energy that is not incremental 
                hydropower generated by a hydroelectric 
                facility; and
                  ``(B) electricity generated through the 
                incineration of municipal solid waste.
  ``(b) Compliance.--For each calendar year beginning in 
calendar year 2010, each retail electric supplier shall meet 
the requirements of subsection (c) by submitting to the 
Secretary, not later than April 1 of the following calendar 
year, one or more of the following:
          ``(1) Federal renewable energy credits issued under 
        subsection (e).
          ``(2) Federal energy efficiency credits issued under 
        subsection (i), except that Federal energy efficiency 
        credits may not be used to meet more than 27 percent of 
        the requirements of subsection (c) in any calendar 
        year. Energy efficiency credits may only be used for 
        compliance in a State where the Governor has petitioned 
        the Secretary pursuant to subjection (i)(2).
          ``(3) Certification of the renewable energy generated 
        and electricity savings pursuant to the funds 
        associated with State compliance payments as specified 
        in subsection (e)(3)(G).
          ``(4) Alternative compliance payments pursuant to 
        subsection (j).
  ``(c) Required Annual Percentage.--For calendar years 2010 
through 2039, the required annual percentage of the retail 
electric supplier's base amount that shall be generated from 
renewable energy resources, or otherwise credited towards such 
percentage requirement pursuant to subsection (d), shall be the 
percentage specified in the following table:

                                                         Required annual
``Calendar Years                                              percentage
        2010..................................................      2.75
        2011..................................................      2.75
        2012..................................................      3.75
        2013..................................................       4.5
        2014..................................................       5.5
        2015..................................................       6.5
        2016..................................................       7.5
        2017..................................................      8.25
        2018..................................................     10.25
        2019..................................................     12.25
        2020 and thereafter through 2039......................        15

  ``(d) Renewable Energy and Energy Efficiency Credits.--(1) A 
retail electric supplier may satisfy the requirements of 
subsection (b)(1) through the submission of Federal renewable 
energy credits--
          ``(A) issued to the retail electric supplier under 
        subsection (e);
          ``(B) obtained by purchase or exchange under 
        subsection (f) or (g); or
          ``(C) borrowed under subsection (h).
  ``(2) A retail electric supplier may satisfy the requirements 
of subsection (b)(2) through the submission of Federal energy 
efficiency credits issued to the retail electric supplier 
obtained by purchase or exchange pursuant to subsection (i).
  ``(3) A Federal renewable energy credit may be counted toward 
compliance with subsection (b)(1) only once. A Federal energy 
efficiency credit may be counted toward compliance with 
subsection (b)(2) only once.
  ``(e) Issuance of Federal Renewable Energy Credits.--(1) The 
Secretary shall establish by rule, not later than 1 year after 
the date of enactment of this section, a program to verify and 
issue Federal renewable energy credits to generators of 
renewable energy, track their sale, exchange and retirement and 
to enforce the requirements of this section. To the extent 
possible, in establishing such program, the Secretary shall 
rely upon existing and emerging State or regional tracking 
systems that issue and track non-Federal renewable energy 
credits.
  ``(2) An entity that generates electric energy through the 
use of a renewable energy resource may apply to the Secretary 
for the issuance of renewable energy credits. The applicant 
must demonstrate that the electric energy will be transmitted 
onto the grid or, in the case of a generation offset, that the 
electric energy offset would have otherwise been consumed on 
site. The application shall indicate--
          ``(A) the type of renewable energy resource used to 
        produce the electricity;
          ``(B) the location where the electric energy was 
        produced; and
          ``(C) any other information the Secretary determines 
        appropriate.
  ``(3)(A) Except as provided in subparagraphs (B), (C), and 
(D), the Secretary shall issue to a generator of electric 
energy one Federal renewable energy credit for each kilowatt 
hour of electric energy generated by the use of a renewable 
energy resource at an eligible facility.
  ``(B) For purpose of compliance with this section, Federal 
renewable energy credits for incremental hydropower shall be 
based, on the increase in average annual generation resulting 
from the efficiency improvements or capacity additions. The 
incremental generation shall be calculated using the same water 
flow information used to determine a historic average annual 
generation baseline for the hydroelectric facility and 
certified by the Secretary or the Federal Energy Regulatory 
Commission. The calculation of the Federal renewable energy 
credits for incremental hydropower shall not be based on any 
operational changes at the hydroelectric facility not directly 
associated with the efficiency improvements or capacity 
additions.
  ``(C) The Secretary shall issue 2 renewable energy credits 
for each kilowatt hour of electric energy generated and 
supplied to the grid in that calendar year through the use of a 
renewable energy resource at an eligible facility located on 
Indian land. For purposes of this paragraph, renewable energy 
generated by biomass cofired with other fuels is eligible for 
two credits only if the biomass was grown on such land.
  ``(D) For electric energy generated by a renewable energy 
resource at an on-site eligible facility no larger than one 
megawatt in capacity and used to offset part or all of the 
customer's requirements for electric energy, the Secretary 
shall issue 3 renewable energy credits to such customer for 
each kilowatt hour generated.
  ``(E) In the case of an on-site eligible facility on Indian 
land no more than 3 credits per kilowatt hour may be issued.
  ``(F) If both a renewable energy resource and a non-renewable 
energy resource are used to generate the electric energy, the 
Secretary shall issue the Federal renewable energy credits 
based on the proportion of the renewable energy resources used.
  ``(G) When a generator has sold electric energy generated 
through the use of a renewable energy resource to a retail 
electric supplier under a contract for power from an existing 
facility, and the contract has not determined ownership of the 
Federal renewable energy credits associated with such 
generation, the Secretary shall issue such Federal renewable 
energy credits to the retail electric supplier for the duration 
of the contract.
  ``(H) Payments made by a retail electricity supplier, 
directly or indirectly, to a State for compliance with a State 
renewable portfolio standard program, or for an alternative 
compliance mechanism, shall be valued at one credit per 
kilowatt hour for the purpose of subsection (b)(2) based on the 
amount of electric energy generation from renewable resources 
and electricity savings up to 27 percent of the utility's 
requirement that results from those payments.
  ``(f) Existing Facilities.--The Secretary shall ensure that a 
retail electric supplier that acquires Federal renewable energy 
credits associated with the generation of renewable energy from 
an existing facility may use such credits for purpose of its 
compliance with subsection (b)(1). Such credits may not be 
sold, exchanged, or transferred for the purpose of compliance 
by another retail electric supplier.
  ``(g) Renewable Energy Credit Trading.--(1) A Federal 
renewable energy credit, may be sold, transferred or exchanged 
by the entity to whom issued or by any other entity who 
acquires the Federal renewable energy credit, except for those 
renewable energy credits from existing facilities. A Federal 
renewable energy credit for any year that is not submitted to 
satisfy the minimum renewable generation requirement of 
subsection (c) for that year may be carried forward for use 
pursuant to subsection (b)(1) within the next 3 years.
  ``(2) A Federally owned or cooperatively owned utility, or a 
State or subdivision thereof, that is not a retail electric 
supplier that generates electric energy by the use of a 
renewable energy resource at an eligible facility may only 
sell, transfer or exchange a Federal renewable energy credit to 
a cooperatively owned utility or an agency, authority or 
instrumentality of a State or political subdivision of a State 
that is a retail electric supplier that has acquired the 
electric energy associated with the credit.
  ``(3) The Secretary may delegate to an appropriate market-
making entity the administration of a national tradeable 
renewable energy credit market and a nation energy efficiency 
credit market for purposes of creating a transparent national 
market for the sale or trade of renewable energy credits and a 
transparent national market for the sale or trade of Federal 
energy efficiency credits.
  ``(h) Renewable Energy Credit Borrowing.--At any time before 
the end of calendar year 2012, a retail electric supplier that 
has reason to believe it will not be able to fully comply with 
subsection (b) may--
          ``(1) submit a plan to the Secretary demonstrating 
        that the retail electric supplier will earn sufficient 
        Federal renewable energy credits and Federal energy 
        efficiency credits within the next 3 calendar years 
        which, when taken into account, will enable the retail 
        electric supplier to meet the requirements of 
        subsection (b) for calendar year 2012 and the 
        subsequent calendar years involved; and
          ``(2) upon the approval of the plan by the Secretary, 
        apply Federal renewable energy credits and Federal 
        energy efficiency credits that the plan demonstrates 
        will be earned within the next 3 calendar years to meet 
        the requirements of subsection (b) for each calendar 
        year involved.
The retail electric supplier must repay all of the borrowed 
Federal renewable energy credits and Federal energy efficiency 
credits by submitting an equivalent number of Federal renewable 
energy credits and Federal energy efficiency credits, in 
addition to those otherwise required under subsection (b), by 
calendar year 2020 or any earlier deadlines specified in the 
approved plan. Failure to repay the borrowed Federal renewable 
energy credits and Federal energy efficiency credits shall 
subject the retail electric supplier to civil penalties under 
subsection (i) for violation of the requirements of subsection 
(b) for each calendar year involved.
  ``(i) Energy Efficiency Credits.--
          ``(1) Definitions.--In this subsection--
                  ``(A) Customer facility savings.--The term 
                `customer facility savings' means a reduction 
                in end-use electricity at a facility of an end-
                use consumer of electricity served by a retail 
                electric supplier, as compared to--
                          ``(i) consumption at the facility 
                        during a base year;
                          ``(ii) in the case of new equipment 
                        (regardless of whether the new 
                        equipment replaces existing equipment 
                        at the end of the useful life of the 
                        existing equipment), consumption by the 
                        new equipment of average efficiency; or
                          ``(iii) in the case of a new 
                        facility, consumption at a reference 
                        facility.
                  ``(B) Electricity savings.--The term 
                `electricity savings' means--
                          ``(i) customer facility savings of 
                        electricity consumption adjusted to 
                        reflect any associated increase in fuel 
                        consumption at the facility;
                          ``(ii) reductions in distribution 
                        system losses of electricity achieved 
                        by a retail electricity distributor, as 
                        compared to losses during the base 
                        years;
                          ``(iii) the output of new combined 
                        heat and power systems, to the extent 
                        provided under paragraph (5); and
                          ``(iv) recycled energy savings.
                  ``(C) Qualifying electricity savings.--The 
                term `qualifying electricity savings' means 
                electricity saving that meet the measurement 
                and verification requirements of paragraph (4).
                  ``(D) Recycled energy savings.--The term 
                `recycled energy savings' means a reduction in 
                electricity consumption that is attributable to 
                electrical or mechanical power, or both, 
                produced by modifying an industrial or 
                commercial system that was in operation before 
                July 1, 2007, in order to recapture energy that 
                would otherwise be wasted.
          ``(2) Petition.--The Governor of a State may petition 
        the Secretary to allow up to 27 percent of the 
        requirements of a retail electric supplier under 
        subsection (c) in the State to be met by submitting 
        Federal energy efficiency credits issued pursuant to 
        this subsection.
          ``(3) Issuance of credits.--(A) Upon petition by the 
        Governor, the Secretary shall issue energy efficiency 
        credits for electricity savings described in 
        subparagraph (B) achieved in States described in 
        paragraph (2) in accordance with this subsection.
          ``(B) In accordance with regulations promulgated by 
        the Secretary, the Secretary shall issue credits for--
                  ``(i) qualified electricity savings achieved 
                by a retail electric supplier in a calendar 
                year; and
                  ``(ii) qualified electricity savings achieved 
                by other entities if--
                          ``(I) the measures used to achieve 
                        the qualifying electricity savings were 
                        installed or place in operation by the 
                        entity seeking the credit or the 
                        designated agent of the entity; and
                          ``(II) no retail electric supplier 
                        paid a substantial portion of the cost 
                        of achieving the qualified electricity 
                        savings (unless the retail electric 
                        supplier has waived any entitlement to 
                        the credit).
          ``(4) Measurement and verification of electricity 
        savings.--Not later than June 30, 2009, the Secretary 
        shall promulgate regulations regarding the measurement 
        and verification of electricity savings under this 
        subsection, including regulations covering--
                  ``(A) procedures and standards for defining 
                and measuring electricity savings that will be 
                eligible to receive credits under paragraph 
                (3), which shall--
                          ``(i) specify the types of energy 
                        efficiency and energy conservation that 
                        will be eligible for the credits;
                          ``(ii) require that energy 
                        consumption for customer facilities or 
                        portions of facilities in the 
                        applicable base and current years be 
                        adjusted, as appropriate, to account 
                        for changes in weather, level of 
                        production, and building area;
                          ``(iii) account for the useful life 
                        of electricity savings measures;
                          ``(iv) include specified electricity 
                        savings values for specific, commonly-
                        used efficiency measures;
                          ``(v) specify the extent to which 
                        electricity savings attributable to 
                        measures carried out before the date of 
                        enactment of this section are eligible 
                        to receive credits under this 
                        subsection; and
                          ``(vi) exclude electricity savings 
                        that (I) are not properly attributable 
                        to measures carried out by the entity 
                        seeking the credit; or (II) have 
                        already been credited under this 
                        section to another entity;
                  ``(B) procedures and standards for third-
                party verification of reported electricity 
                savings; and
                  ``(C) such requirements for information, 
                reports, and access to facilities as may be 
                necessary to carry out this subsection.
          ``(5) Combined heat and power.--Under regulations 
        promulgated by the Secretary, the increment of 
        electricity output of a new combined heat and power 
        system that is attributable to the higher efficiency of 
        the combined system (as compared to the efficiency of 
        separate production of the electric and thermal 
        outputs), shall be considered electricity savings under 
        this subsection.
  ``(j) Enforcement.--A retail electric supplier that does not 
comply with subsection (b) shall be liable for the payment of a 
civil penalty. That penalty shall be calculated on the basis of 
the number of kilowatt-hours represented by the retail electric 
supplier's failure to comply with subsection (b), multiplied by 
the lesser of 4.5 cents (adjusted for inflation for such 
calendar year, based on the Gross Domestic Product Implicit 
Price Deflator) or 300 percent of the average market value of 
Federal renewable energy credits and energy efficiency credits 
for the compliance period. Any such penalty shall be due and 
payable without demand to the Secretary as provided in the 
regulations issued under subsection (e).
  ``(k) Alternative Compliance Payments.--The Secretary shall 
accept payment equal to the lesser of:
          ``(1) 200 percent of the average market value of 
        Federal renewable energy credits and Federal energy 
        efficiency credits for the applicable compliance 
        period; or
          ``(2) 2.5 cents per kilowatt hour adjusted on January 
        1 of each year following calendar year 2006 based on 
        the Gross Domestic Product Implicit Price Deflator,
as a means of compliance under subsection (b)(4)
  ``(l) Information Collection.--The Secretary may collect the 
information necessary to verify and audit--
          ``(1) the annual renewable energy generation of any 
        retail electric supplier, Federal renewable energy 
        credits submitted by a retail electric supplier 
        pursuant to subsection (b)(1) and Federal energy 
        efficiency credits submitted by a retail electric 
        supplier pursuant to subsection (b)(2);
          ``(2) annual electricity savings achieved pursuant to 
        subsection (i);
          ``(3) the validity of Federal renewable energy 
        credits submitted for compliance by a retail electric 
        supplier to the Secretary; and
          ``(4) the quantity of electricity sales of all retail 
        electric suppliers.
  ``(m) Environmental Savings Clause.--Incremental hydropower 
shall be subject to all applicable environmental laws and 
licensing and regulatory requirements.
  ``(n) State Programs.--(1) Nothing in this section diminishes 
any authority of a State or political subdivision of a State 
to--
                          ``(A) adopt or enforce any law or 
                        regulation respecting renewable energy 
                        or energy efficiency, including but not 
                        limited to programs that exceed the 
                        required amount of renewable energy or 
                        energy efficiency under this section, 
                        or
                          ``(B) regulate the acquisition and 
                        disposition of Federal renewable energy 
                        credits and Federal energy efficiency 
                        credits by retail electric suppliers.
        No law or regulation referred to in subparagraph (A) 
        shall relieve any person of any requirement otherwise 
        applicable under this section. The Secretary, in 
        consultation with States having renewable energy 
        programs and energy efficiency programs, shall preserve 
        the integrity of such State programs, including 
        programs that exceed the required amount of renewable 
        energy and energy efficiency under this section, and 
        shall facilitate coordination between the Federal 
        program and State programs.
  ``(2) In the rule establishing the program under this 
section, the Secretary shall incorporate common elements of 
existing renewable energy and energy efficiency programs, 
including State programs, to ensure administrative ease, market 
transparency and effective enforcement. The Secretary shall 
work with the States to minimize administrative burdens and 
costs to retail electric suppliers.
  ``(o) Recovery of Costs.--An electric utility whose sales of 
electric energy are subject to rate regulation, including any 
utility whose rates are regulated by the Commission and any 
State regulated electric utility, shall not be denied the 
opportunity to recover the full amount of the prudently 
incurred incremental cost of renewable energy and energy 
efficiency obtained to comply with the requirements of 
subsection (b). For purposes of this subsection, the 
definitions in section 3 of this Act shall apply to the terms 
electric utility, State regulated electric utility, State 
agency, Commission, and State regulatory authority.
  ``(p) Program Review.--The Secretary shall enter into a 
contract with the National Academy of Sciences to conduct a 
comprehensive evaluation of all aspects of the program 
established under this section, within 8 years of enactment of 
this section. The study shall include an evaluation of--
          ``(1) the effectiveness of the program in increasing 
        the market penetration and lowering the cost of the 
        eligible renewable energy and energy efficiency 
        technologies;
          ``(2) the opportunities for any additional 
        technologies and sources of renewable energy and energy 
        efficiency emerging since enactment of this section;
          ``(3) the impact on the regional diversity and 
        reliability of supply sources, including the power 
        quality benefits of distributed generation;
          ``(4) the regional resource development relative to 
        renewable potential and reasons for any under 
        investment in renewable resources; and
          ``(5) the net cost/benefit of the renewable 
        electricity standard to the national and State 
        economies, including retail power costs, economic 
        development benefits of investment, avoided costs 
        related to environmental and congestion mitigation 
        investments that would otherwise have been required, 
        impact on natural gas demand and price, effectiveness 
        of green marketing programs at reducing the cost of 
        renewable resources.
The Secretary shall transmit the results of the evaluation and 
any recommendations for modifications and improvements to the 
program to Congress not later than January 1, 2016.
  ``(q) State Renewable Energy and Energy Efficiency Account 
Program.--(1) There is established in the Treasury a State 
renewable energy and energy efficiency account program.
  ``(2) All money collected by the Secretary from the 
alternative compliance payments under subsection (k) shall be 
deposited into the State renewable energy and energy efficiency 
account established pursuant to this subsection.
  ``(3) Proceeds deposited in the State renewable energy and 
energy efficiency account shall be used by the Secretary, 
subject to annual appropriations, for a program to provide 
grants to the State agency responsible for administering a fund 
to promote renewable energy generation and energy efficiency 
for customers of the State, or an alternative agency designated 
by the State, or if no such agency exists, to the State agency 
developing State energy conservation plans under section 363 of 
the Energy Policy and Conservation Act (42 U.S.C. 6322) for the 
purposes of promoting renewable energy production and providing 
energy assistance and weatherization services to low-income 
consumers.
  ``(4) The Secretary may issue guidelines and criteria for 
grants awarded under this subsection. At least 75 percent of 
the funds provided to each State shall be used for promoting 
renewable energy production and energy efficiency through 
grants, production incentives or other state-approved funding 
mechanisms. The funds shall be allocated to the States on the 
basis of retail electric sales subject to the Renewable 
electricity Standard under this section or through voluntary 
participation. State agencies receiving grants under this 
section shall maintain such records and evidence of compliance 
as the Secretary may require.''.
  (b) Table of Contents.--The table of contents for such title 
is amended by adding the following new item at the end:

``Sec. 610. Federal renewable electricity standard''.

  (c) Sunset.--Section 610 of such title and the item relating 
to such section 610 in the table of contents for such title are 
each repealed as of December 31, 2039.

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


SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 CODE.

  (a) Short Title.--This title may be cited as the ``Clean 
Renewable Energy and Conservation Tax Act of 2007''.
  (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue 
Code of 1986.

        Subtitle A--Clean Renewable Energy Production Incentives


            PART I--PROVISIONS RELATING TO RENEWABLE ENERGY

SEC. 1501. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY CREDIT.

  (a) Extension of Credit.--Each of the following provisions of 
section 45(d) (relating to qualified facilities) is amended by 
striking ``January 1, 2009'' and inserting ``January 1, 2013'':
          (1) Paragraph (1).
          (2) Clauses (i) and (ii) of paragraph (2)(A).
          (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
          (4) Paragraph (4).
          (5) Paragraph (5).
          (6) Paragraph (6).
          (7) Paragraph (7).
          (8) Subparagraphs (A) and (B) of paragraph (9).
  (b) Modification of Credit Phaseout.--
          (1) Repeal of phaseout.--Subsection (b) of section 45 
        is amended--
                  (A) by striking paragraph (1), and
                  (B) by striking ``the 8 cent amount in 
                paragraph (1),'' in paragraph (2) thereof.
          (2) Limitation based on investment in facility.--
        Subsection (b) of section 45 is amended by inserting 
        before paragraph (2) the following new paragraph:
          ``(1) Limitation based on investment in facility.--
                  ``(A) In general.--In the case of any 
                qualified facility originally placed in service 
                after December 31, 2008, the amount of the 
                credit determined under subsection (a) for any 
                taxable year with respect to electricity 
                produced at such facility shall not exceed the 
                product of--
                          ``(i) the applicable percentage with 
                        respect to such facility, multiplied by
                          ``(ii) the eligible basis of such 
                        facility.
                  ``(B) Carryforward of unused limitation and 
                excess credit.--
                          ``(i) Unused limitation.--If the 
                        limitation imposed under subparagraph 
                        (A) with respect to any facility for 
                        any taxable year exceeds the 
                        prelimitation credit for such facility 
                        for such taxable year, the limitation 
                        imposed under subparagraph (A) with 
                        respect to such facility for the 
                        succeeding taxable year shall be 
                        increased by the amount of such excess.
                          ``(ii) Excess credit.--If the 
                        prelimitation credit with respect to 
                        any facility for any taxable year 
                        exceeds the limitation imposed under 
                        subparagraph (A) with respect to such 
                        facility for such taxable year, the 
                        credit determined under subsection (a) 
                        with respect to such facility for the 
                        succeeding taxable year (determined 
                        before the application of subparagraph 
                        (A) for such succeeding taxable year) 
                        shall be increased by the amount of 
                        such excess. With respect to any 
                        facility, no amount may carried forward 
                        under this clause to any taxable year 
                        beginning after the 10-year period 
                        described in subsection (a)(2)(A)(ii) 
                        with respect to such facility.
                          ``(iii) Prelimitation credit.--The 
                        term `prelimitation credit' with 
                        respect to any facility for a taxable 
                        year means the credit determined under 
                        subsection (a) with respect to such 
                        facility for such taxable year, 
                        determined without regard to 
                        subparagraph (A) and after taking into 
                        account any increase for such taxable 
                        year under clause (ii).
                  ``(C) Applicable percentage.--For purposes of 
                this paragraph--
                          ``(i) In general.--The term 
                        `applicable percentage' means, with 
                        respect to any facility, the 
                        appropriate percentage prescribed by 
                        the Secretary for the month in which 
                        such facility is originally placed in 
                        service.
                          ``(ii) Method of prescribing 
                        applicable percentages.--The applicable 
                        percentages prescribed by the Secretary 
                        for any month under clause (i) shall be 
                        percentages which yield over a 10-year 
                        period amounts of limitation under 
                        subparagraph (A) which have a present 
                        value equal to 35 percent of the 
                        eligible basis of the facility.
                          ``(iii) Method of discounting.--The 
                        present value under clause (ii) shall 
                        be determined--
                                  ``(I) as of the last day of 
                                the 1st year of the 10-year 
                                period referred to in clause 
                                (ii),
                                  ``(II) by using a discount 
                                rate equal to the greater of 
                                110 percent of the Federal 
                                long-term rate as in effect 
                                under section 1274(d) for the 
                                month preceding the month for 
                                which the applicable percentage 
                                is being prescribed, or 4.5 
                                percent, and
                                  ``(III) by taking into 
                                account the limitation under 
                                subparagraph (A) for any year 
                                on the last day of such year.
                  ``(D) Eligible basis.--For purposes of this 
                paragraph--
                          ``(i) In general.--The term `eligible 
                        basis' means, with respect to any 
                        facility, the sum of--
                                  ``(I) the basis of such 
                                facility determined as of the 
                                time that such facility is 
                                originally placed in service, 
                                and
                                  ``(II) the portion of the 
                                basis of any shared qualified 
                                property which is properly 
                                allocable to such facility 
                                under clause (ii).
                          ``(ii) Rules for allocation.--For 
                        purposes of subclause (II) of clause 
                        (i), the basis of shared qualified 
                        property shall be allocated among all 
                        qualified facilities which are 
                        projected to be placed in service and 
                        which require utilization of such 
                        property in proportion to projected 
                        generation from such facilities.
                          ``(iii) Shared qualified property.--
                        For purposes of this paragraph, the 
                        term `shared qualified property' means, 
                        with respect to any facility, any 
                        property described in section 
                        168(e)(3)(B)(vi)--
                                  ``(I) which a qualified 
                                facility will require for 
                                utilization of such facility, 
                                and
                                  ``(II) which is not a 
                                qualified facility.
                          ``(iv) Special rule relating to 
                        geothermal facilities.--In the case of 
                        any qualified facility using geothermal 
                        energy to produce electricity, the 
                        basis of such facility for purposes of 
                        this paragraph shall be determined as 
                        though intangible drilling and 
                        development costs described in section 
                        263(c) were capitalized rather than 
                        expensed.
                  ``(E) Special rule for first and last year of 
                credit period.--In the case of any taxable year 
                any portion of which is not within the 10-year 
                period described in subsection (a)(2)(A)(ii) 
                with respect to any facility, the amount of the 
                limitation under subparagraph (A) with respect 
                to such facility shall be reduced by an amount 
                which bears the same ratio to the amount of 
                such limitation (determined without regard to 
                this subparagraph) as such portion of the 
                taxable year which is not within such period 
                bears to the entire taxable year.
                  ``(F) Election to treat all facilities placed 
                in service in a year as 1 facility.--At the 
                election of the taxpayer, all qualified 
                facilities which are part of the same project 
                and which are placed in service during the same 
                calendar year shall be treated for purposes of 
                this section as 1 facility which is placed in 
                service at the mid-point of such year or the 
                first day of the following calendar year.''.
  (c) Effective Date.--
          (1) In general.--Except as provided in paragraph (2), 
        the amendments made by this section shall apply to 
        property originally placed in service after December 
        31, 2008.
          (2) Repeal of credit phaseout.--The amendments made 
        by subsection (b)(1) shall apply to taxable years 
        ending after December 31, 2008.

SEC. 1502. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE 
                    RENEWABLES.

  (a) In General.--Paragraph (1) of section 45(c) (relating to 
resources) is amended by striking ``and'' at the end of 
subparagraph (G), by striking the period at the end of 
subparagraph (H) and inserting ``, and'', and by adding at the 
end the following new subparagraph:
                  ``(I) marine and hydrokinetic renewable 
                energy.''.
  (b) Marine Renewables.--Subsection (c) of section 45 is 
amended by adding at the end the following new paragraph:
          ``(10) Marine and hydrokinetic renewable energy.--
                  ``(A) In general.--The term `marine and 
                hydrokinetic renewable energy' means energy 
                derived from--
                          ``(i) waves, tides, and currents in 
                        oceans, estuaries, and tidal areas,
                          ``(ii) free flowing water in rivers, 
                        lakes, and streams,
                          ``(iii) free flowing water in an 
                        irrigation system, canal, or other man-
                        made channel, including projects that 
                        utilize nonmechanical structures to 
                        accelerate the flow of water for 
                        electric power production purposes, or
                          ``(iv) differentials in ocean 
                        temperature (ocean thermal energy 
                        conversion).
                  ``(B) Exceptions.--Such term shall not 
                include any energy which is derived from any 
                source which utilizes a dam, diversionary 
                structure (except as provided in subparagraph 
                (A)(iii)), or impoundment for electric power 
                production purposes.''.
  (c) Definition of Facility.--Subsection (d) of section 45 is 
amended by adding at the end the following new paragraph:
          ``(11) Marine and hydrokinetic renewable energy 
        facilities.--In the case of a facility producing 
        electricity from marine and hydrokinetic renewable 
        energy, the term `qualified facility' means any 
        facility owned by the taxpayer--
                  ``(A) which has a nameplate capacity rating 
                of at least 150 kilowatts, and
                  ``(B) which is originally placed in service 
                on or after the date of the enactment of this 
                paragraph and before January 1, 2013.''.
  (d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is 
amended by striking ``or (9)'' and inserting ``(9), or (11)''.
  (e) Coordination With Small Irrigation Power.--Paragraph (5) 
of section 45(d), as amended by this Act, is amended by 
striking ``January 1, 2013'' and inserting ``the date of the 
enactment of paragraph (11)''.
  (f) Effective Date.--The amendments made by this section 
shall apply to electricity produced and sold after the date of 
the enactment of this Act, in taxable years ending after such 
date.

SEC. 1503. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

  (a) Extension of Credit.--
          (1) Solar energy property.--Paragraphs (2)(A)(i)(II) 
        and (3)(A)(ii) of section 48(a) (relating to energy 
        credit) are each amended by striking ``January 1, 
        2009'' and inserting ``January 1, 2017''.
          (2) Fuel cell property.--Subparagraph (E) of section 
        48(c)(1) (relating to qualified fuel cell property) is 
        amended by striking ``December 31, 2008'' and inserting 
        ``December 31, 2016''.
          (3) Microturbine property.--Subparagraph (E) of 
        section 48(c)(2) (relating to qualified microturbine 
        property) is amended by striking ``December 31, 2008'' 
        and inserting ``December 31, 2016''.
  (b) Allowance of Energy Credit Against Alternative Minimum 
Tax.--Subparagraph (B) of section 38(c)(4) (relating to 
specified credits) is amended by striking ``and'' at the end of 
clause (iii), by striking the period at the end of clause (iv) 
and inserting ``, and'', and by adding at the end the following 
new clause:
                          ``(v) the credit determined under 
                        section 46 to the extent that such 
                        credit is attributable to the energy 
                        credit determined under section 48.''.
  (c) Energy Credit for Combined Heat and Power System 
Property.--
          (1) In general.--Section 48(a)(3)(A) (defining energy 
        property) is amended by striking ``or'' at the end of 
        clause (iii), by inserting ``or'' at the end of clause 
        (iv), and by adding at the end the following new 
        clause:
                          ``(v) combined heat and power system 
                        property,''.
          (2) Combined heat and power system property.--Section 
        48 (relating to energy credit; reforestation credit) is 
        amended by adding at the end the following new 
        subsection:
  ``(d) Combined Heat and Power System Property.--For purposes 
of subsection (a)(3)(A)(v)--
          ``(1) Combined heat and power system property.--The 
        term `combined heat and power system property' means 
        property comprising a system--
                  ``(A) which uses the same energy source for 
                the simultaneous or sequential generation of 
                electrical power, mechanical shaft power, or 
                both, in combination with the generation of 
                steam or other forms of useful thermal energy 
                (including heating and cooling applications),
                  ``(B) which produces--
                          ``(i) at least 20 percent of its 
                        total useful energy in the form of 
                        thermal energy which is not used to 
                        produce electrical or mechanical power 
                        (or combination thereof), and
                          ``(ii) at least 20 percent of its 
                        total useful energy in the form of 
                        electrical or mechanical power (or 
                        combination thereof),
                  ``(C) the energy efficiency percentage of 
                which exceeds 60 percent, and
                  ``(D) which is placed in service before 
                January 1, 2017.
          ``(2) Limitation.--
                  ``(A) In general.--In the case of combined 
                heat and power system property with an 
                electrical capacity in excess of the applicable 
                capacity placed in service during the taxable 
                year, the credit under subsection (a)(1) 
                (determined without regard to this paragraph) 
                for such year shall be equal to the amount 
                which bears the same ratio to such credit as 
                the applicable capacity bears to the capacity 
                of such property.
                  ``(B) Applicable capacity.--For purposes of 
                subparagraph (A), the term `applicable 
                capacity' means 15 megawatts or a mechanical 
                energy capacity of more than 20,000 horsepower 
                or an equivalent combination of electrical and 
                mechanical energy capacities.
                  ``(C) Maximum capacity.--The term `combined 
                heat and power system property' shall not 
                include any property comprising a system if 
                such system has a capacity in excess of 50 
                megawatts or a mechanical energy capacity in 
                excess of 67,000 horsepower or an equivalent 
                combination of electrical and mechanical energy 
                capacities.
          ``(3) Special rules.--
                  ``(A) Energy efficiency percentage.--For 
                purposes of this subsection, the energy 
                efficiency percentage of a system is the 
                fraction--
                          ``(i) the numerator of which is the 
                        total useful electrical, thermal, and 
                        mechanical power produced by the system 
                        at normal operating rates, and expected 
                        to be consumed in its normal 
                        application, and
                          ``(ii) the denominator of which is 
                        the lower heating value of the fuel 
                        sources for the system.
                  ``(B) Determinations made on btu basis.--The 
                energy efficiency percentage and the 
                percentages under paragraph (1)(B) shall be 
                determined on a Btu basis.
                  ``(C) Input and output property not 
                included.--The term `combined heat and power 
                system property' does not include property used 
                to transport the energy source to the facility 
                or to distribute energy produced by the 
                facility.
          ``(4) Systems using biomass.--If a system is designed 
        to use biomass (within the meaning of paragraphs (2) 
        and (3) of section 45(c) without regard to the last 
        sentence of paragraph (3)(A)) for at least 90 percent 
        of the energy source--
                  ``(A) paragraph (1)(C) shall not apply, but
                  ``(B) the amount of credit determined under 
                subsection (a) with respect to such system 
                shall not exceed the amount which bears the 
                same ratio to such amount of credit (determined 
                without regard to this paragraph) as the energy 
                efficiency percentage of such system bears to 
                60 percent.''.
  (d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking 
``$500'' and inserting ``$1,500''.
  (e) Public Electric Utility Property Taken Into Account.--
          (1) In general.--Paragraph (3) of section 48(a) is 
        amended by striking the second sentence thereof.
          (2) Conforming amendments.--
                  (A) Paragraph (1) of section 48(c) is amended 
                by striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
                  (B) Paragraph (2) of section 48(c) is amended 
                by striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
  (f) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of 
section 48(c) are each amended by striking ``paragraph (1)'' 
and inserting ``subsection (a)''.
  (g) Effective Date.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall 
        take effect on the date of the enactment of this Act.
          (2) Allowance against alternative minimum tax.--The 
        amendments made by subsection (b) shall apply to 
        credits determined under section 46 of the Internal 
        Revenue Code of 1986 in taxable years beginning after 
        the date of the enactment of this Act and to carrybacks 
        of such credits.
          (3) Combined heat and power and fuel cell property.--
        The amendments made by subsections (c) and (d) shall 
        apply to periods after the date of the enactment of 
        this Act, in taxable years ending after such date, 
        under rules similar to the rules of section 48(m) of 
        the Internal Revenue Code of 1986 (as in effect on the 
        day before the date of the enactment of the Revenue 
        Reconciliation Act of 1990).
          (4)  Public electric utility property.--The 
        amendments made by subsection (e) shall apply to 
        periods after June 20, 2007, in taxable years ending 
        after such date, under rules similar to the rules of 
        section 48(m) of the Internal Revenue Code of 1986 (as 
        in effect on the day before the date of the enactment 
        of the Revenue Reconciliation Act of 1990).

SEC. 1504. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY 
                    EFFICIENT PROPERTY.

  (a) Extension.--Section 25D(g) (relating to termination) is 
amended by striking ``December 31, 2008'' and inserting 
``December 31, 2014''.
  (b) Maximum Credit for Solar Electric Property.--
          (1) In general.--Section 25D(b)(1)(A) (relating to 
        maximum credit) is amended by striking ``$2,000'' and 
        inserting ``$4,000''.
          (2) Conforming amendment.--Section 25D(e)(4)(A)(i) is 
        amended by striking ``$6,667'' and inserting 
        ``$13,334''.
  (c) Credit for Residential Wind Property.--
          (1) In general.--Section 25D(a) (relating to 
        allowance of credit) is amended by striking ``and'' at 
        the end of paragraph (2), by striking the period at the 
        end of paragraph (3) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
          ``(4) 30 percent of the qualified small wind energy 
        property expenditures made by the taxpayer during such 
        year.''.
          (2) Limitation.--Section 25D(b)(1) (relating to 
        maximum credit) is amended by striking ``and'' at the 
        end of subparagraph (B), by striking the period at the 
        end of subparagraph (C) and inserting ``, and'', and by 
        adding at the end the following new subparagraph:
                  ``(D) $500 with respect to each half kilowatt 
                of capacity (not to exceed $4,000) of wind 
                turbines for which qualified small wind energy 
                property expenditures are made.''.
          (3) Qualified small wind energy property 
        expenditures.--
                  (A) In general.--Section 25D(d) (relating to 
                definitions) is amended by adding at the end 
                the following new paragraph:
          ``(4) Qualified small wind energy property 
        expenditure.--The term `qualified small wind energy 
        property expenditure' means an expenditure for property 
        which uses a wind turbine to generate electricity for 
        use in connection with a dwelling unit located in the 
        United States and used as a residence by the 
        taxpayer.''.
                  (B) No double benefit.--Section 45(d)(1) 
                (relating to wind facility) is amended by 
                adding at the end the following new sentence: 
                ``Such term shall not include any facility with 
                respect to which any qualified small wind 
                energy property expenditure (as defined in 
                subsection (d)(4) of section 25D) is taken into 
                account in determining the credit under such 
                section.''.
          (4) Maximum expenditures in case of joint 
        occupancy.--Section 25D(e)(4)(A) (relating to maximum 
        expenditures) is amended by striking ``and'' at the end 
        of clause (ii), by striking the period at the end of 
        clause (iii) and inserting ``, and'', and by adding at 
        the end the following new clause:
                          ``(iv) $1,667 in the case of each 
                        half kilowatt of capacity of wind 
                        turbines for which qualified small wind 
                        energy property expenditures are 
                        made.''.
  (d) Credit Allowed Against Alternative Minimum Tax.--
          (1) In general.--Subsection (c) of section 25D is 
        amended to read as follows:
  ``(c) Limitation Based on Amount of Tax; Carryforward of 
Unused Credit.--
          ``(1) Limitation based on amount of tax.--In the case 
        of a taxable year to which section 26(a)(2) does not 
        apply, the credit allowed under subsection (a) for the 
        taxable year shall not exceed the excess of--
                  ``(A) the sum of the regular tax liability 
                (as defined in section 26(b)) plus the tax 
                imposed by section 55, over
                  ``(B) the sum of the credits allowable under 
                this subpart (other than this section) and 
                section 27 for the taxable year.
          ``(2) Carryforward of unused credit.--
                  ``(A) Rule for years in which all personal 
                credits allowed against regular and alternative 
                minimum tax.--In the case of a taxable year to 
                which section 26(a)(2) applies, if the credit 
                allowable under subsection (a) exceeds the 
                limitation imposed by section 26(a)(2) for such 
                taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this 
                section), such excess shall be carried to the 
                succeeding taxable year and added to the credit 
                allowable under subsection (a) for such 
                succeeding taxable year.
                  ``(B) Rule for other years.--In the case of a 
                taxable year to which section 26(a)(2) does not 
                apply, if the credit allowable under subsection 
                (a) exceeds the limitation imposed by paragraph 
                (1) for such taxable year, such excess shall be 
                carried to the succeeding taxable year and 
                added to the credit allowable under subsection 
                (a) for such succeeding taxable year.''.
          (2) Conforming amendments.--
                  (A) Section 23(b)(4)(B) is amended by 
                inserting ``and section 25D'' after ``this 
                section''.
                  (B) Section 24(b)(3)(B) is amended by 
                striking ``and 25B'' and inserting ``, 25B, and 
                25D''.
                  (C) Section 25B(g)(2) is amended by striking 
                ``section 23'' and inserting ``sections 23 and 
                25D''.
                  (D) Section 26(a)(1) is amended by striking 
                ``and 25B'' and inserting ``25B, and 25D''.
  (e) Effective Dates.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall 
        apply to expenditures after December 31, 2007.
          (2) Allowance against alternative minimum tax.--
                  (A) In general.--The amendments made by 
                subsection (d) shall apply to taxable years 
                beginning after the date of the enactment of 
                this Act.
                  (B) Application of egtrra sunset.--The 
                amendments made by subparagraphs (A) and (B) of 
                subsection (d)(2) shall be subject to title IX 
                of the Economic Growth and Tax Relief 
                Reconciliation Act of 2001 in the same manner 
                as the provisions of such Act to which such 
                amendments relate.

SEC. 1505. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT FERC 
                    AND STATE ELECTRIC RESTRUCTURING POLICY.

  (a) Extension for Qualified Electric Utilities.--
          (1) In general.--Paragraph (3) of section 451(i) 
        (relating to special rule for sales or dispositions to 
        implement Federal Energy Regulatory Commission or State 
        electric restructuring policy) is amended by inserting 
        ``(before January 1, 2010, in the case of a qualified 
        electric utility)'' after ``January 1, 2008''.
          (2) Qualified electric utility.--Subsection (i) of 
        section 451 is amended by redesignating paragraphs (6) 
        through (10) as paragraphs (7) through (11), 
        respectively, and by inserting after paragraph (5) the 
        following new paragraph:
          ``(6) Qualified electric utility.--For purposes of 
        this subsection, the term `qualified electric utility' 
        means a person that, as of the date of the qualifying 
        electric transmission transaction, is vertically 
        integrated, in that it is both--
                  ``(A) a transmitting utility (as defined in 
                section 3(23) of the Federal Power Act (16 
                U.S.C. 796(23)) with respect to the 
                transmission facilities to which the election 
                under this subsection applies, and
                  ``(B) an electric utility (as defined in 
                section 3(22) of the Federal Power Act (16 
                U.S.C. 796(22)).''.
  (b) Extension of Period for Transfer of Operational Control 
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is 
amended by striking ``December 31, 2007'' and inserting ``the 
date which is 4 years after the close of the taxable year in 
which the transaction occurs''.
  (c) Property Located Outside the United States Not Treated as 
Exempt Utility Property.--Paragraph (5) of section 451(i) is 
amended by adding at the end the following new subparagraph:
                  ``(C) Exception for property located outside 
                the united states.--The term `exempt utility 
                property' shall not include any property which 
                is located outside the United States.''.
  (d) Effective Dates.--
          (1) Extension.--The amendments made by subsection (a) 
        shall apply to transactions after December 31, 2007.
          (2) Transfers of operational control.--The amendment 
        made by subsection (b) shall take effect as if included 
        in section 909 of the American Jobs Creation Act of 
        2004.
          (3) Exception for property located outside the united 
        states.--The amendment made by subsection (c) shall 
        apply to transactions after the date of the enactment 
        of this Act.

SEC. 1506. NEW CLEAN RENEWABLE ENERGY BONDS.

  (a) In General.--Part IV of subchapter A of chapter 1 
(relating to credits against tax) is amended by adding at the 
end the following new subpart:

                ``Subpart I--Qualified Tax Credit Bonds

``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.

``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

  ``(a) Allowance of Credit.--If a taxpayer holds a qualified 
tax credit bond on one or more credit allowance dates of the 
bond during any taxable year, there shall be allowed as a 
credit against the tax imposed by this chapter for the taxable 
year an amount equal to the sum of the credits determined under 
subsection (b) with respect to such dates.
  ``(b) Amount of Credit.--
          ``(1) In general.--The amount of the credit 
        determined under this subsection with respect to any 
        credit allowance date for a qualified tax credit bond 
        is 25 percent of the annual credit determined with 
        respect to such bond.
          ``(2) Annual credit.--The annual credit determined 
        with respect to any qualified tax credit bond is the 
        product of--
                  ``(A) the applicable credit rate, multiplied 
                by
                  ``(B) the outstanding face amount of the 
                bond.
          ``(3) Applicable credit rate.--For purposes of 
        paragraph (2), the applicable credit rate is 70 percent 
        of the rate which the Secretary estimates will permit 
        the issuance of qualified tax credit bonds with a 
        specified maturity or redemption date without discount 
        and without interest cost to the qualified issuer. The 
        applicable credit rate with respect to any qualified 
        tax credit bond shall be determined as of the first day 
        on which there is a binding, written contract for the 
        sale or exchange of the bond.
          ``(4) Special rule for issuance and redemption.--In 
        the case of a bond which is issued during the 3-month 
        period ending on a credit allowance date, the amount of 
        the credit determined under this subsection with 
        respect to such credit allowance date shall be a 
        ratable portion of the credit otherwise determined 
        based on the portion of the 3-month period during which 
        the bond is outstanding. A similar rule shall apply 
        when the bond is redeemed or matures.
  ``(c) Limitation Based on Amount of Tax.--
          ``(1) In general.--The credit allowed under 
        subsection (a) for any taxable year shall not exceed 
        the excess of--
                  ``(A) the sum of the regular tax liability 
                (as defined in section 26(b)) plus the tax 
                imposed by section 55, over
                  ``(B) the sum of the credits allowable under 
                this part (other than subpart C and this 
                subpart).
          ``(2) Carryover of unused credit.--If the credit 
        allowable under subsection (a) exceeds the limitation 
        imposed by paragraph (1) for such taxable year, such 
        excess shall be carried to the succeeding taxable year 
        and added to the credit allowable under subsection (a) 
        for such taxable year (determined before the 
        application of paragraph (1) for such succeeding 
        taxable year).
  ``(d) Qualified Tax Credit Bond.--For purposes of this 
section--
          ``(1) Qualified tax credit bond.--The term `qualified 
        tax credit bond' means a new clean renewable energy 
        bond which is part of an issue that meets the 
        requirements of paragraphs (2), (3), (4), (5), and (6).
          ``(2) Special rules relating to expenditures.--
                  ``(A) In general.--An issue shall be treated 
                as meeting the requirements of this paragraph 
                if, as of the date of issuance, the issuer 
                reasonably expects--
                          ``(i) 100 percent or more of the 
                        available project proceeds to be spent 
                        for 1 or more qualified purposes within 
                        the 3-year period beginning on such 
                        date of issuance, and
                          ``(ii) a binding commitment with a 
                        third party to spend at least 10 
                        percent of such available project 
                        proceeds will be incurred within the 6-
                        month period beginning on such date of 
                        issuance.
                  ``(B) Failure to spend required amount of 
                bond proceeds within 3 years.--
                          ``(i) In general.--To the extent that 
                        less than 100 percent of the available 
                        project proceeds of the issue are 
                        expended by the close of the 
                        expenditure period for 1 or more 
                        qualified purposes, the issuer shall 
                        redeem all of the nonqualified bonds 
                        within 90 days after the end of such 
                        period. For purposes of this paragraph, 
                        the amount of the nonqualified bonds 
                        required to be redeemed shall be 
                        determined in the same manner as under 
                        section 142.
                          ``(ii) Expenditure period.--For 
                        purposes of this subpart, the term 
                        `expenditure period' means, with 
                        respect to any issue, the 3-year period 
                        beginning on the date of issuance. Such 
                        term shall include any extension of 
                        such period under clause (iii).
                          ``(iii) Extension of period.--Upon 
                        submission of a request prior to the 
                        expiration of the expenditure period 
                        (determined without regard to any 
                        extension under this clause), the 
                        Secretary may extend such period if the 
                        issuer establishes that the failure to 
                        expend the proceeds within the original 
                        expenditure period is due to reasonable 
                        cause and the expenditures for 
                        qualified purposes will continue to 
                        proceed with due diligence.
                  ``(C) Qualified purpose.--For purposes of 
                this paragraph, the term `qualified purpose' 
                means a purpose specified in section 54B(a)(1).
                  ``(D) Reimbursement.--For purposes of this 
                subtitle, available project proceeds of an 
                issue shall be treated as spent for a qualified 
                purpose if such proceeds are used to reimburse 
                the issuer for amounts paid for a qualified 
                purpose after the date that the Secretary makes 
                an allocation of bond limitation with respect 
                to such issue, but only if--
                          ``(i) prior to the payment of the 
                        original expenditure, the issuer 
                        declared its intent to reimburse such 
                        expenditure with the proceeds of a 
                        qualified tax credit bond,
                          ``(ii) not later than 60 days after 
                        payment of the original expenditure, 
                        the issuer adopts an official intent to 
                        reimburse the original expenditure with 
                        such proceeds, and
                          ``(iii) the reimbursement is made not 
                        later than 18 months after the date the 
                        original expenditure is paid.
          ``(3) Reporting.--An issue shall be treated as 
        meeting the requirements of this paragraph if the 
        issuer of qualified tax credit bonds submits reports 
        similar to the reports required under section 149(e).
          ``(4) Special rules relating to arbitrage.--
                  ``(A) In general.--An issue shall be treated 
                as meeting the requirements of this paragraph 
                if the issuer satisfies the requirements of 
                section 148 with respect to the proceeds of the 
                issue.
                  ``(B) Special rule for investments during 
                expenditure period.--An issue shall not be 
                treated as failing to meet the requirements of 
                subparagraph (A) by reason of any investment of 
                available project proceeds during the 
                expenditure period.
                  ``(C) Special rule for reserve funds.--An 
                issue shall not be treated as failing to meet 
                the requirements of subparagraph (A) by reason 
                of any fund which is expected to be used to 
                repay such issue if--
                          ``(i) such fund is funded at a rate 
                        not more rapid than equal annual 
                        installments,
                          ``(ii) such fund is funded in a 
                        manner reasonably expected to result in 
                        an amount not greater than an amount 
                        necessary to repay the issue, and
                          ``(iii) the yield on such fund is not 
                        greater than the discount rate 
                        determined under paragraph (5)(B) with 
                        respect to the issue.
          ``(5) Maturity limitation.--
                  ``(A) In general.--An issue shall be treated 
                as meeting the requirements of this paragraph 
                if the maturity of any bond which is part of 
                such issue does not exceed the maximum term 
                determined by the Secretary under subparagraph 
                (B).
                  ``(B) Maximum term.--During each calendar 
                month, the Secretary shall determine the 
                maximum term permitted under this paragraph for 
                bonds issued during the following calendar 
                month. Such maximum term shall be the term 
                which the Secretary estimates will result in 
                the present value of the obligation to repay 
                the principal on the bond being equal to 50 
                percent of the face amount of such bond. Such 
                present value shall be determined using as a 
                discount rate the average annual interest rate 
                of tax-exempt obligations having a term of 10 
                years or more which are issued during the 
                month. If the term as so determined is not a 
                multiple of a whole year, such term shall be 
                rounded to the next highest whole year.
          ``(6) Prohibition on financial conflicts of 
        interest.--An issue shall be treated as meeting the 
        requirements of this paragraph if the issuer certifies 
        that--
                  ``(A) applicable State and local law 
                requirements governing conflicts of interest 
                are satisfied with respect to such issue, and
                  ``(B) if the Secretary prescribes additional 
                conflicts of interest rules governing the 
                appropriate Members of Congress, Federal, 
                State, and local officials, and their spouses, 
                such additional rules are satisfied with 
                respect to such issue.
  ``(e) Other Definitions.--For purposes of this subchapter--
          ``(1) Credit allowance date.--The term `credit 
        allowance date' means--
                  ``(A) March 15,
                  ``(B) June 15,
                  ``(C) September 15, and
                  ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
          ``(2) Bond.--The term `bond' includes any obligation.
          ``(3) State.--The term `State' includes the District 
        of Columbia and any possession of the United States.
          ``(4) Available project proceeds.--The term 
        `available project proceeds' means--
                  ``(A) the excess of--
                          ``(i) the proceeds from the sale of 
                        an issue, over
                          ``(ii) the issuance costs financed by 
                        the issue (to the extent that such 
                        costs do not exceed 2 percent of such 
                        proceeds), and
                  ``(B) the proceeds from any investment of the 
                excess described in subparagraph (A).
  ``(f) Credit Treated as Interest.--For purposes of this 
subtitle, the credit determined under subsection (a) shall be 
treated as interest which is includible in gross income.
  ``(g) S Corporations and Partnerships.--In the case of a tax 
credit bond held by an S corporation or partnership, the 
allocation of the credit allowed by this section to the 
shareholders of such corporation or partners of such 
partnership shall be treated as a distribution.
  ``(h) Bonds Held by Regulated Investment Companies and Real 
Estate Investment Trusts.--If any qualified tax credit bond is 
held by a regulated investment company or a real estate 
investment trust, the credit determined under subsection (a) 
shall be allowed to shareholders of such company or 
beneficiaries of such trust (and any gross income included 
under subsection (f) with respect to such credit shall be 
treated as distributed to such shareholders or beneficiaries) 
under procedures prescribed by the Secretary.
  ``(i) Credits May Be Stripped.--Under regulations prescribed 
by the Secretary--
          ``(1) In general.--There may be a separation 
        (including at issuance) of the ownership of a qualified 
        tax credit bond and the entitlement to the credit under 
        this section with respect to such bond. In case of any 
        such separation, the credit under this section shall be 
        allowed to the person who on the credit allowance date 
        holds the instrument evidencing the entitlement to the 
        credit and not to the holder of the bond.
          ``(2) Certain rules to apply.--In the case of a 
        separation described in paragraph (1), the rules of 
        section 1286 shall apply to the qualified tax credit 
        bond as if it were a stripped bond and to the credit 
        under this section as if it were a stripped coupon.

``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.

  ``(a) New Clean Renewable Energy Bond.--For purposes of this 
subpart, the term `new clean renewable energy bond' means any 
bond issued as part of an issue if--
          ``(1) 100 percent of the available project proceeds 
        of such issue are to be used for capital expenditures 
        incurred by public power providers, governmental 
        bodies, or cooperative electric companies for one or 
        more qualified renewable energy facilities,
          ``(2) the bond is issued by a qualified issuer, and
          ``(3) the issuer designates such bond for purposes of 
        this section.
  ``(b) Limitation on Amount of Bonds Designated.--
          ``(1) In general.--The maximum aggregate face amount 
        of bonds which may be designated under subsection (a) 
        by any issuer shall not exceed the limitation amount 
        allocated under this subsection to such issuer.
          ``(2) National limitation on amount of bonds 
        designated.--There is a national new clean renewable 
        energy bond limitation of $2,000,000,000 which shall be 
        allocated by the Secretary as provided in paragraph 
        (3), except that--
                  ``(A) not more than 33 \1/3\ percent thereof 
                may be allocated to qualified projects of 
                public power providers,
                  ``(B) not more than 33 \1/3\ percent thereof 
                may be allocated to qualified projects of 
                governmental bodies, and
                  ``(C) not more than 33 \1/3\ percent thereof 
                may be allocated to qualified projects of 
                cooperative electric companies.
          ``(3) Method of allocation.--
                  ``(A) Allocation among public power 
                providers.--After the Secretary determines the 
                qualified projects of public power providers 
                which are appropriate for receiving an 
                allocation of the national new clean renewable 
                energy bond limitation, the Secretary shall, to 
                the maximum extent practicable, make 
                allocations among such projects in such manner 
                that the amount allocated to each such project 
                bears the same ratio to the cost of such 
                project as the limitation under paragraph 
                (2)(A) bears to the cost of all such projects.
                  ``(B) Allocation among governmental bodies 
                and cooperative electric companies.--The 
                Secretary shall make allocations of the amount 
                of the national new clean renewable energy bond 
                limitation described in paragraphs (2)(B) and 
                (2)(C) among qualified projects of governmental 
                bodies and cooperative electric companies, 
                respectively, in such manner as the Secretary 
                determines appropriate.
  ``(c) Definitions.--For purposes of this section--
          ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means a qualified 
        facility (as determined under section 45(d) without 
        regard to paragraphs (8) and (10) thereof and to any 
        placed in service date) owned by a public power 
        provider, a governmental body, or a cooperative 
        electric company.
          ``(2) Public power provider.--The term `public power 
        provider' means a State utility with a service 
        obligation, as such terms are defined in section 217 of 
        the Federal Power Act (as in effect on the date of the 
        enactment of this paragraph).
          ``(3) Governmental body.--The term `governmental 
        body' means any State or Indian tribal government, or 
        any political subdivision thereof.
          ``(4) Cooperative electric company.--The term 
        `cooperative electric company' means a mutual or 
        cooperative electric company described in section 
        501(c)(12) or section 1381(a)(2)(C).
          ``(5) Clean renewable energy bond lender.--The term 
        `clean renewable energy bond lender' means a lender 
        which is a cooperative which is owned by, or has 
        outstanding loans to, 100 or more cooperative electric 
        companies and is in existence on February 1, 2002, and 
        shall include any affiliated entity which is controlled 
        by such lender.
          ``(6) Qualified issuer.--The term `qualified issuer' 
        means a public power provider, a governmental body, a 
        cooperative electric company, a clean renewable energy 
        bond lender, or a not-for-profit electric utility which 
        has received a loan or loan guarantee under the Rural 
        Electrification Act.''.
  (b) Reporting.--Subsection (d) of section 6049 (relating to 
returns regarding payments of interest) is amended by adding at 
the end the following new paragraph:
          ``(9) Reporting of credit on qualified tax credit 
        bonds.--
                  ``(A) In general.--For purposes of subsection 
                (a), the term `interest' includes amounts 
                includible in gross income under section 54A 
                and such amounts shall be treated as paid on 
                the credit allowance date (as defined in 
                section 54A(e)(1)).
                  ``(B) Reporting to corporations, etc.--Except 
                as otherwise provided in regulations, in the 
                case of any interest described in subparagraph 
                (A) of this paragraph, subsection (b)(4) of 
                this section shall be applied without regard to 
                subparagraphs (A), (H), (I), (J), (K), and 
                (L)(i).
                  ``(C) Regulatory authority.--The Secretary 
                may prescribe such regulations as are necessary 
                or appropriate to carry out the purposes of 
                this paragraph, including regulations which 
                require more frequent or more detailed 
                reporting.''.
  (c) Conforming Amendments.--
          (1) Sections 54(c)(2) and 1400N(l)(3)(B) are each 
        amended by striking ``subpart C'' and inserting 
        ``subparts C and I''.
          (2) Section 1397E(c)(2) is amended by striking 
        ``subpart H'' and inserting ``subparts H and I''.
          (3) Section 6401(b)(1) is amended by striking ``and 
        H'' and inserting ``H, and I''.
          (4) The heading of subpart H of part IV of subchapter 
        A of chapter 1 is amended by striking ``Certain Bonds'' 
        and inserting ``Clean Renewable Energy Bonds''.
          (5) The table of subparts for part IV of subchapter A 
        of chapter 1 is amended by striking the item relating 
        to subpart H and inserting the following new items:

 ``subpart h. nonrefundable credit to holders of clean renewable energy 
                                 bonds.

               ``subpart i. qualified tax credit bonds.''.

  (d) Application of Certain Labor Standards on Projects 
Financed Under Tax Credit Bonds.--Subchapter IV of chapter 31 
of title 40, United States Code, shall apply to projects 
financed with the proceeds of any tax credit bond (as defined 
in section 54A of the Internal Revenue Code of 1986).
  (e) Effective Dates.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

       PART II--PROVISIONS RELATING TO CARBON MITIGATION AND COAL

SEC. 1507. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT 
                    INVESTMENT CREDIT.

  (a) Modification of Credit Amount.--Section 48A(a) (relating 
to qualifying advanced coal project credit) is amended by 
striking ``and'' at the end of paragraph (1), by striking the 
period at the end of paragraph (2) and inserting ``, and'', and 
by adding at the end the following the paragraph:
          ``(3) 30 percent of the qualified investment for such 
        taxable year in the case of projects described in 
        clauses (iii) or (iv) of subsection (d)(3)(B).''.
  (b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) 
(relating to aggregate credits) is amended by striking 
``$1,300,000,000'' and inserting ``$2,800,000,000''.
  (c) Authorization of Additional Projects.--
          (1) In general.--Subparagraph (B) of section 
        48A(d)(3) (relating to aggregate credits) is amended to 
        read as follows:
                  ``(B) Particular projects.--Of the dollar 
                amount in subparagraph (A), the Secretary is 
                authorized to certify--
                          ``(i) $800,000,000 for integrated 
                        gasification combined cycle projects 
                        the application for which is submitted 
                        during the period described in 
                        paragraph (2)(A)(i),
                          ``(ii) $500,000,000 for projects 
                        which use other advanced coal-based 
                        generation technologies the application 
                        for which is submitted during the 
                        period described in paragraph 
                        (2)(A)(i),
                          ``(iii) $1,000,000,000 for integrated 
                        gasification combined cycle projects 
                        the application for which is submitted 
                        during the period described in 
                        paragraph (2)(A)(ii), and
                          ``(iv) $500,000,000 for other 
                        advanced coal-based generation 
                        technology projects the application for 
                        which is submitted during the period 
                        described in paragraph (2)(A)(ii).''.
          (2) Application period for additional projects.--
        Subparagraph (A) of section 48A(d)(2) (relating to 
        certification) is amended to read as follows:
                  ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit 
                an application meeting the requirements of 
                subparagraph (B). An applicant may only submit 
                an application--
                          ``(i) for an allocation from the 
                        dollar amount specified in clause (i) 
                        or (ii) of paragraph (3)(A) during the 
                        3-year period beginning on the date the 
                        Secretary establishes the program under 
                        paragraph (1), and
                          ``(ii) for an allocation from the 
                        dollar amount specified in clause (iii) 
                        or (iv) of paragraph (3)(A) during the 
                        3-year period beginning at the earlier 
                        of the termination of the period 
                        described in clause (i) or the date 
                        prescribed by the Secretary.''.
          (3) Capture and sequestration of carbon dioxide 
        emissions requirement.--
                  (A) In general.--Section 48A(e)(1) (relating 
                to requirements) is amended by striking ``and'' 
                at the end of subparagraph (E), by striking the 
                period at the end of subparagraph (F) and 
                inserting ``; and'', and by adding at the end 
                the following new subparagraph:
                  ``(G) in the case of any project the 
                application for which is submitted during the 
                period described in subsection (d)(2)(A)(ii), 
                the project includes equipment which separates 
                and sequesters at least 65 percent (70 percent 
                in the case of an application for reallocated 
                credits under subsection (d)(4)) of such 
                project's total carbon dioxide emissions.''.
                  (B) Highest priority for projects which 
                sequester carbon dioxide emissions.--Section 
                48A(e)(3) is amended by striking ``and'' at the 
                end of subparagraph (A)(iii), by striking the 
                period at the end of subparagraph (B)(3) and 
                inserting ``, and'', and by adding at the end 
                the following new subparagraph:
                  ``(C) give highest priority to projects with 
                the greatest separation and sequestration 
                percentage of total carbon dioxide 
                emissions.''.
                  (C) Recapture of credit for failure to 
                sequester.--Section 48A (relating to qualifying 
                advanced coal project credit) is amended by 
                adding at the end the following new subsection:
  ``(h) Recapture of Credit for Failure to Sequester.--The 
Secretary shall provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to any 
project which fails to attain or maintain the separation and 
sequestration requirements of subsection (e)(1)(G).''.
          (4) Additional priority for research partnerships.--
        Section 48A(e)(3)(B), as amended by paragraph (3)(B), 
        is amended--
                  (A) by striking ``and'' at the end of clause 
                (ii),
                  (B) by redesignating clause (iii) as clause 
                (iv), and
                  (C) by inserting after clause (ii) the 
                following new clause:
                          ``(iii) applicant participants who 
                        have a research partnership with an 
                        eligible educational institution (as 
                        defined in section 529(e)(5)), and''.
          (5) Clerical amendment.--Section 48A(e)(3) is amended 
        by striking ``integrated gasification combined cycle'' 
        in the heading and inserting ``certain''.
  (d) Competitive Certification Awards Modification 
Authority.--Section 48A (relating to qualifying advanced coal 
project credit), as amended by subsection (c)(3), is amended by 
adding at the end the following new subsection:
  ``(i) Competitive Certification Awards Modification 
Authority.--In implementing this section or section 48B, the 
Secretary is directed to modify the terms of any competitive 
certification award and any associated closing agreement where 
such modification--
          ``(1) is consistent with the objectives of such 
        section,
          ``(2) is requested by the recipient of the 
        competitive certification award, and
          ``(3) involves moving the project site to improve the 
        potential to capture and sequester carbon dioxide 
        emissions, reduce costs of transporting feedstock, and 
        serve a broader customer base,
unless the Secretary determines that the dollar amount of tax 
credits available to the taxpayer under such section would 
increase as a result of the modification or such modification 
would result in such project not being originally certified. In 
considering any such modification, the Secretary shall consult 
with other relevant Federal agencies, including the Department 
of Energy.''.
  (e) Effective Dates.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall 
        apply to credits the application for which is submitted 
        during the period described in section 48A(d)(2)(A)(ii) 
        of the Internal Revenue Code of 1986 and which are 
        allocated or reallocated after the date of the 
        enactment of this Act.
          (2) Competitive certification awards modification 
        authority.--The amendment made by subsection (d) shall 
        take effect on the date of the enactment of this Act 
        and is applicable to all competitive certification 
        awards entered into under section 48A or 48B of the 
        Internal Revenue Code of 1986, whether such awards were 
        issued before, on, or after such date of enactment.
          (3) Technical amendment.--The amendment made by 
        subsection (c)(5) shall take effect as if included in 
        the amendment made by section 1307(b) of the Energy Tax 
        Incentives Act of 2005.

SEC. 1508. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT 
                    CREDIT.

  (a) Credit Rate.--Section 48B(a) (relating to qualifying 
gasification project credit) is amended by inserting ``(30 
percent in the case of credits allocated under subsection 
(d)(1)(B))'' after ``20 percent''.
  (b) Expansion of Aggregate Credits.--Section 48B(d)(1) 
(relating to qualifying gasification project program) is 
amended by striking ``shall not exceed $350,000,000'' and all 
that follows and inserting ``shall not exceed--
                  ``(A) $350,000,000, plus
                  ``(B) $500,000,000 for qualifying 
                gasification projects that include equipment 
                which separates and sequesters at least 75 
                percent of such a project's total carbon 
                dioxide emissions,
        under rules similar to the rules of section 
        48A(d)(4).''.
  (c) Recapture of Credit for Failure to Sequester.--Section 
48B (relating to qualifying gasification project credit) is 
amended by adding at the end the following new subsection:
  ``(f) Recapture of Credit for Failure to Sequester.--The 
Secretary shall provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to any 
project which fails to attain or maintain the separation and 
sequestration requirements for such project under subsection 
(d)(1).''.
  (d) Selection Priorities.--Section 48B(d) (relating to 
qualifying gasification project program) is amended by adding 
at the end the following new paragraph:
          ``(4) Selection priorities.--In determining which 
        qualifying gasification projects to certify under this 
        section, the Secretary shall--
                  ``(A) give highest priority to projects with 
                the greatest separation and sequestration 
                percentage of total carbon dioxide emissions, 
                and
                  ``(B) give high priority to applicant 
                participants who have a research partnership 
                with an eligible educational institution (as 
                defined in section 529(e)(5)).''.
  (e) Effective Date.--The amendments made by this section 
shall apply to credits described in section 48B(d)(1)(B) of the 
Internal Revenue Code of 1986 which are allocated or 
reallocated after the date of the enactment of this Act.

SEC. 1509. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
                    QUALIFIED CARBON DIOXIDE PIPELINE PROPERTY.

  (a) In General.--Section 168(e)(3)(C) (defining 7-year 
property) is amended by striking ``and'' at the end of clause 
(iv), by redesignating clause (v) as clause (vi), and by 
inserting after clause (iv) the following new clause:
                          ``(v) any qualified carbon dioxide 
                        pipeline property--
                                  ``(I) the original use of 
                                which commences with the 
                                taxpayer after the date of the 
                                enactment of this clause,
                                  ``(II) the original purpose 
                                of which is to transport carbon 
                                dioxide, and
                                  ``(III) which is placed in 
                                service before January 1, 2011, 
                                and''.
  (b) Definition of Qualified Carbon Dioxide Pipeline 
Property.--Section 168(e) (relating to classification of 
property) is amended by inserting at the end the following new 
paragraph:
          ``(8) Qualified carbon dioxide pipeline property.--
                  ``(A) In general.--The term `qualified carbon 
                dioxide pipeline property' means property which 
                is used in the United States solely to transmit 
                qualified carbon dioxide from the point of 
                capture to a secure geological storage or the 
                point at which such qualified carbon dioxide is 
                used as a tertiary injectant.
                  ``(B) Definitions and special rules.--For 
                purposes of this paragraph--
                          ``(i) Qualified carbon dioxide.--The 
                        term `qualified carbon dioxide' means 
                        carbon dioxide captured from an 
                        industrial source which--
                                  ``(I) would otherwise be 
                                released into the atmosphere as 
                                industrial emission of 
                                greenhouse gas, and
                                  ``(II) is measured at the 
                                source of capture and verified 
                                at the point of disposal or 
                                injection.
                          ``(ii) Secure geological storage.--
                        The Secretary, in consultation with the 
                        Administrator of the Environmental 
                        Protection Agency, shall establish 
                        regulations for determining adequate 
                        security measures for the geological 
                        storage of carbon dioxide under 
                        subparagraph (A) such that the carbon 
                        dioxide does not escape into the 
                        atmosphere. Such term shall include 
                        storage at deep saline formations and 
                        unminable coal seems under such 
                        conditions as the Secretary may 
                        determine under such regulations.
                          ``(iii) Tertiary injectant.--The term 
                        `tertiary injectant' has the same 
                        meaning as when used within section 
                        193(b)(1).''.
  (c) Effective Date.--The amendments made by this section 
shall apply to property placed in service after the date of the 
enactment of this Act.

SEC. 1510. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN 
                    COAL PRODUCERS AND EXPORTERS.

  (a) Refund.--
          (1) Coal producers.--
                  (A) In general.--Notwithstanding subsections 
                (a)(1) and (c) of section 6416 and section 6511 
                of the Internal Revenue Code of 1986, if--
                          (i) a coal producer establishes that 
                        such coal producer, or a party related 
                        to such coal producer, exported coal 
                        produced by such coal producer to a 
                        foreign country or shipped coal 
                        produced by such coal producer to a 
                        possession of the United States, the 
                        export or shipment of which was other 
                        than through an exporter who has filed 
                        a claim for a refund under paragraph 
                        (2),
                          (ii) such coal producer filed a 
                        return on or after October 1, 1990, and 
                        on or before the date of the enactment 
                        of this Act, and
                          (iii) such coal producer files a 
                        claim for refund not later than the 
                        close of the 30-day period beginning on 
                        the date of the enactment of this Act,
                then the Secretary of the Treasury shall pay to 
                such coal producer an amount equal to the tax 
                paid under section 4121 of such Code on such 
                coal exported by the coal producer or a party 
                related to such coal producer.
                  (B) Special rules for certain taxpayers.--For 
                purposes of this section--
                          (i) Establishment of export.--If a 
                        coal producer or a party related to a 
                        coal producer has received a judgment 
                        described in clause (iii), such coal 
                        producer shall be deemed to have 
                        established the export of coal to a 
                        foreign country or shipment of coal to 
                        a possession of the United States under 
                        subparagraph (A)(i).
                          (ii) Amount of payment.--If a 
                        taxpayer described in clause (i) is 
                        entitled to a payment under 
                        subparagraph (A), the amount of such 
                        payment shall be reduced by any amount 
                        awarded under the judgment described in 
                        clause (iii).
                          (iii) Judgment described.--A judgment 
                        is described in this subparagraph if 
                        such judgment--
                                  (I) is made by a court of 
                                competent jurisdiction within 
                                the United States,
                                  (II) relates to the 
                                constitutionality of any tax 
                                paid on exported coal under 
                                section 4121 of the Internal 
                                Revenue Code of 1986, and
                                  (III) is in favor of the coal 
                                producer or the party related 
                                to the coal producer.
                          (iv) Recapture.--In the case any 
                        judgment described in clause (iii) is 
                        overturned, the coal producer shall pay 
                        to the Secretary the amount of any 
                        payment received under subparagraph (A) 
                        unless the coal producer establishes 
                        the export of the coal to a foreign 
                        country or shipment of coal to a 
                        possession of the United States.
          (2) Exporters.--Notwithstanding subsections (a)(1) 
        and (c) of section 6416 and section 6511 of the 
        Internal Revenue Code of 1986, and a judgment described 
        in paragraph (1)(B)(iii) of this subsection, if--
                  (A) an exporter establishes that such 
                exporter exported coal to a foreign country or 
                shipped coal to a possession of the United 
                States, or caused such coal to be so exported 
                or shipped,
                  (B) such exporter filed a return on or after 
                October 1, 1990, and on or before the date of 
                the enactment of this Act, and
                  (C) such exporter files a claim for refund 
                not later than the close of the 30-day period 
                beginning on the date of the enactment of this 
                Act,
        then the Secretary of the Treasury shall pay to such 
        exporter an amount equal to $0.825 per ton of such coal 
        exported by the exporter or caused to be exported by 
        the exporter.
  (b) Limitations.--Subsection (a) shall not apply with respect 
to exported coal if a credit or refund of tax imposed by 
section 4121 of such Code on such coal has been allowed or made 
to, or if a settlement with the Federal Government has been 
made with and accepted by, the coal producer, a party related 
to such coal producer, or the exporter, of such coal, as of the 
date that the claim is filed under this section with respect to 
such exported coal. For purposes of this subsection, the term 
``settlement with the Federal Government'' shall not include 
any settlement or stipulation entered into as of the date of 
the enactment of this Act, the terms of which contemplate a 
judgment concerning which any party has reserved the right to 
file an appeal, or has filed an appeal.
  (c) Subsequent Refund Prohibited.--No refund shall be made 
under this section to the extent that a credit or refund of 
such tax on such exported coal has been paid to any person.
  (d) Definitions.--For purposes of this section--
          (1) Coal producer.--The term ``coal producer'' means 
        the person in whom is vested ownership of the coal 
        immediately after the coal is severed from the ground, 
        without regard to the existence of any contractual 
        arrangement for the sale or other disposition of the 
        coal or the payment of any royalties between the 
        producer and third parties. The term includes any 
        person who extracts coal from coal waste refuse piles 
        or from the silt waste product which results from the 
        wet washing (or similar processing) of coal.
          (2) Exporter.--The term ``exporter'' means a person, 
        other than a coal producer, who does not have a 
        contract, fee arrangement, or any other agreement with 
        a producer or seller of such coal to sell or export 
        such coal to a third party on behalf of the producer or 
        seller of such coal and--
                  (A) is indicated in the shipper's export 
                declaration or other documentation as the 
                exporter of record, or
                  (B) actually exported such coal to a foreign 
                country or shipped such coal to a possession of 
                the United States, or caused such coal to be so 
                exported or shipped.
          (3) Related party.--The term ``a party related to 
        such coal producer'' means a person who--
                  (A) is related to such coal producer through 
                any degree of common management, stock 
                ownership, or voting control,
                  (B) is related (within the meaning of section 
                144(a)(3) of such Code) to such coal producer, 
                or
                  (C) has a contract, fee arrangement, or any 
                other agreement with such coal producer to sell 
                such coal to a third party on behalf of such 
                coal producer.
  (e) Timing of Refund.--With respect to any claim for refund 
filed pursuant to this section, the Secretary of the Treasury 
shall determine whether the requirements of this section are 
met not later than 180 days after such claim is filed. If the 
Secretary determines that the requirements of this section are 
met, the claim for refund shall be paid not later than 180 days 
after the Secretary makes such determination.
  (f) Interest.--Any refund paid pursuant to this section shall 
be paid by the Secretary of the Treasury with interest from the 
date of overpayment determined by using the overpayment rate 
and method under section 6621 of such Code.
  (g) Denial of Double Benefit.--The payment under subsection 
(a) with respect to any coal shall not exceed--
          (1) in the case of a payment to a coal producer, the 
        amount of tax paid under section 4121 of the Internal 
        Revenue Code of 1986 with respect to such coal by such 
        coal producer or a party related to such coal producer, 
        and
          (2) in the case of a payment to an exporter, an 
        amount equal to $0.825 per ton with respect to such 
        coal exported by the exporter or caused to be exported 
        by the exporter.
  (h) Application of Section.--This section applies only to 
claims on coal exported on or after October 1, 1990, through 
the date of the enactment of this Act.
  (i) Standing Not Conferred.--
          (1) Exporters.--With respect to exporters, this 
        section shall not confer standing upon an exporter to 
        commence, or intervene in, any judicial or 
        administrative proceeding concerning a claim for refund 
        by a coal producer of any Federal or State tax, fee, or 
        royalty paid by the coal producer.
          (2) Coal producers.--With respect to coal producers, 
        this section shall not confer standing upon a coal 
        producer to commence, or intervene in, any judicial or 
        administrative proceeding concerning a claim for refund 
        by an exporter of any Federal or State tax, fee, or 
        royalty paid by the producer and alleged to have been 
        passed on to an exporter.

SEC. 1511. EXTENSION OF TEMPORARY INCREASE IN COAL EXCISE TAX.

  Paragraph (2) of section 4121(e) (relating to temporary 
increase termination date) is amended--
          (1) by striking ``January 1, 2014'' in clause (i) and 
        inserting ``December 31, 2017'', and
          (2) by striking ``January 1 after 1981'' in clause 
        (ii) and inserting ``December 31 after 2007''.

SEC. 1512. CARBON AUDIT OF THE TAX CODE.

  (a) Study.--The Secretary of the Treasury shall enter into an 
agreement with the National Academy of Sciences to undertake a 
comprehensive review of the Internal Revenue Code of 1986 to 
identify the types of and specific tax provisions that have the 
largest effects on carbon and other greenhouse gas emissions 
and to estimate the magnitude of those effects.
  (b) Report.--Not later than 2 years after the date of 
enactment of this Act, the National Academy of Sciences shall 
submit to Congress a report containing the results of study 
authorized under this section.
  (c) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $1,500,000 for the 
period of fiscal years 2008 and 2009.

         Subtitle B--Transportation and Domestic Fuel Security


                            PART I--BIOFUELS

SEC. 1521. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS ALCOHOL.

  (a) In General.--Subsection (a) of section 40 (relating to 
alcohol used as fuel) is amended by striking ``plus'' at the 
end of paragraph (2), by striking the period at the end of 
paragraph (3) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
          ``(4) the cellulosic alcohol producer credit.''.
  (b) Cellulosic Alcohol Producer Credit.--
          (1) In general.--Subsection (b) of section 40 is 
        amended by redesignating paragraph (5) as paragraph (6) 
        and by inserting after paragraph (4) the following new 
        paragraph:
          ``(5) Cellulosic alcohol producer credit.--
                  ``(A) In general.--The cellulosic alcohol 
                producer credit for the taxable year is an 
                amount equal to the applicable amount for each 
                gallon of qualified cellulosic alcohol 
                production.
                  ``(B) Applicable amount.--For purposes of 
                subparagraph (A), the applicable amount means 
                the excess of--
                          ``(i) $1.01, over
                          ``(ii) the amount of the credit in 
                        effect for alcohol which is ethanol 
                        under subsection (b)(1) (without regard 
                        to subsection (b)(3)) at the time of 
                        the qualified cellulosic alcohol 
                        production.
                  ``(C) Limitation.--
                          ``(i) In general.--No credit shall be 
                        allowed to any taxpayer under 
                        subparagraph (A) with respect to any 
                        qualified cellulosic alcohol production 
                        during the taxable year in excess of 
                        60,000,000 gallons.
                          ``(ii) Aggregation rule.--For 
                        purposes of clause (i), all members of 
                        the same controlled group of 
                        corporations (within the meaning of 
                        section 267(f)) and all persons under 
                        common control (within the meaning of 
                        section 52(b) but determined by 
                        treating an interest of more than 50 
                        percent as a controlling interest) 
                        shall be treated as 1 person.
                          ``(iii) Partnership, s corporations, 
                        and other pass-thru entities.--In the 
                        case of a partnership, trust, S 
                        corporation, or other pass-thru entity, 
                        the limitation contained in clause (i) 
                        shall be applied at the entity level 
                        and at the partner or similar level.
                  ``(D) Qualified cellulosic alcohol 
                production.--For purposes of this section, the 
                term `qualified cellulosic alcohol production' 
                means any cellulosic biomass alcohol which is 
                produced by the taxpayer and which during the 
                taxable year--
                          ``(i) is sold by the taxpayer to 
                        another person--
                                  ``(I) for use by such other 
                                person in the production of a 
                                qualified alcohol mixture in 
                                such other person's trade or 
                                business (other than casual 
                                off-farm production),
                                  ``(II) for use by such other 
                                person as a fuel in a trade or 
                                business, or
                                  ``(III) who sells such 
                                cellulosic biomass alcohol at 
                                retail to another person and 
                                places such cellulosic biomass 
                                alcohol in the fuel tank of 
                                such other person, or
                          ``(ii) is used or sold by the 
                        taxpayer for any purpose described in 
                        clause (i).
                The qualified cellulosic alcohol production of 
                any taxpayer for any taxable year shall not 
                include any alcohol which is purchased by the 
                taxpayer and with respect to which such 
                producer increases the proof of the alcohol by 
                additional distillation.
                  ``(E) Cellulosic biomass alcohol.--
                          ``(i) In general.--The term 
                        `cellulosic biomass alcohol' has the 
                        meaning given such term under section 
                        168(l)(3), but does not include any 
                        alcohol with a proof of less than 150.
                          ``(ii) Determination of proof.--The 
                        determination of the proof of any 
                        alcohol shall be made without regard to 
                        any added denaturants.
                  ``(F) Coordination with small ethanol 
                producer credit.--No small ethanol producer 
                credit shall be allowed with respect to any 
                qualified cellulosic alcohol production if 
                credit is determined with respect to such 
                production under this paragraph.
                  ``(G) Allocation of cellulosic producer 
                credit to patrons of cooperative.--Rules 
                similar to the rules under subsection (g)(6) 
                shall apply for purposes of this paragraph.
                  ``(H) Application of paragraph.--This 
                paragraph shall apply with respect to qualified 
                cellulosic alcohol production after December 
                31, 2007, and before January 1, 2014.''.
          (2) Termination date not to apply.--Subsection (e) of 
        section 40 (relating to termination) is amended--
                  (A) by inserting ``or subsection (b)(5)(H)'' 
                after ``by reason of paragraph (1)'' in 
                paragraph (2), and
                  (B) by adding at the end the following new 
                paragraph:
          ``(3) Exception for cellulosic alcohol producer 
        credit.--Paragraph (1) shall not apply to the portion 
        of the credit allowed under this section by reason of 
        subsection (a)(4).''.
  (c) Alcohol Not Used as a Fuel, etc.--
          (1) In general.--Paragraph (3) of section 40(d) is 
        amended by redesignating subparagraph (D) as 
        subparagraph (E) and by inserting after subparagraph 
        (C) the following new subparagraph:
                  ``(D) Cellulosic alcohol producer credit.--
                If--
                          ``(i) any credit is determined under 
                        subsection (a)(4), and
                          ``(ii) any person does not use such 
                        fuel for a purpose described in 
                        subsection (b)(5)(D),
                then there is hereby imposed on such person a 
                tax equal to the applicable amount for each 
                gallon of such cellulosic biomass alcohol.''.
          (2) Conforming amendments.--
                  (A) Subparagraph (C) of section 40(d)(3) is 
                amended by striking ``producer'' in the heading 
                and inserting ``small ethanol producer''.
                  (B) Subparagraph (E) of section 40(d)(3), as 
                redesignated by paragraph (1), is amended by 
                striking ``or (C)'' and inserting ``(C), or 
                (D)''.
  (d) Limitation to Cellulosic Alcohol With Connection to the 
United States.--Subsection (d) of section 40, as amended by 
this Act, is amended by adding at the end the following new 
paragraph:
          ``(7) Limitation to cellulosic alcohol with 
        connection to the united states.--No cellulosic alcohol 
        producer credit shall be determined under subsection 
        (a) with respect to any alcohol unless such alcohol is 
        produced in the United States.''.
  (e) Effective Date.--The amendments made by this section 
shall apply to fuel produced after December 31, 2007.

SEC. 1522. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOMASS ALCOHOL 
                    FUEL PLANT PROPERTY.

  (a) In General.--Paragraph (3) of section 168(l) (relating to 
special allowance for cellulosic biomass ethanol plant 
property) is amended to read as follows:
          ``(3) Cellulosic biomass alcohol.--For purposes of 
        this subsection, the term `cellulosic biomass alcohol' 
        means any alcohol produced from any lignocellulosic or 
        hemicellulosic matter that is available on a renewable 
        or recurring basis.''.
  (b) Conforming Amendments.--
          (1) Subsection (l) of section 168 is amended by 
        striking ``cellulosic biomass ethanol'' each place it 
        appears and inserting ``cellulosic biomass alcohol''.
          (2) The heading of section 168(l) is amended by 
        striking ``Cellulosic Biomass Ethanol'' and inserting 
        ``Cellulosic Biomass Alcohol''.
          (3) The heading of paragraph (2) of section 168(l) is 
        amended by striking ``cellulosic biomass ethanol'' and 
        inserting ``cellulosic biomass alcohol''.
  (c) Effective Date.--The amendments made by this section 
shall apply to property placed in service after the date of the 
enactment of this Act, in taxable years ending after such date.

SEC. 1523. MODIFICATION OF ALCOHOL CREDIT.

  (a) Income Tax Credit.--Subsection (h) of section 40 
(relating to reduced credit for ethanol blenders) is amended by 
adding at the end the following new paragraph:
          ``(3) Reduced amount after sale of 7,500,000,000 
        gallons.--
                  ``(A) In general.--In the case of any 
                calendar year beginning after the calendar year 
                described in subparagraph (B), the last row in 
                the table in paragraph (2) shall be applied by 
                substituting `46 cents' for `51 cents'.
                  ``(B) Calendar year described.--The calendar 
                year described in this subparagraph is the 
                first calendar year beginning after 2007 during 
                which 7,500,000,000 gallons of ethanol 
                (including cellulosic ethanol) have been 
                produced in or imported into the United States, 
                as certified by the Secretary, in consultation 
                with the Administrator of the Environmental 
                Protection Agency.''.
  (b) Excise Tax Credit.--
          (1) In general.--Paragraph (2) of section 6426(b) 
        (relating to alcohol fuel mixture credit) is amended by 
        adding at the end the following new subparagraph:
                  ``(C) Reduced amount after sale of 
                7,500,000,000 gallons.--In the case of any 
                alcohol fuel mixture produced in a calendar 
                year beginning after the calendar year 
                described in section 40(h)(3)(B), subparagraph 
                (A) shall be applied by substituting `46 cents' 
                for `51 cents'.''.
          (2) Conforming amendment.--Subparagraph (A) of 
        section 6426(b)(2) is amended by striking 
        ``subparagraph (B)'' and inserting ``subparagraphs (B) 
        and (C)''.
  (c) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act.

SEC. 1524. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND 
                    RENEWABLE DIESEL.

  (a) In General.--Sections 40A(g), 6426(c)(6), and 
6427(e)(5)(B) are each amended by striking ``December 31, 
2008'' and inserting ``December 31, 2010''.
  (b) Uniform Treatment of Diesel Produced From Biomass.--
Paragraph (3) of section 40A(f) is amended--
          (1) by striking ``using a thermal depolymerization 
        process'', and
          (2) by striking ``or D396'' in subparagraph (B) and 
        inserting ``or other equivalent standard approved by 
        the Secretary for fuels to be used in diesel-powered 
        highway vehicles''.
  (c) Eligibility of Certain Aviation Fuel.--Paragraph (3) of 
section 40A(f) (defining renewable diesel) is amended by adding 
at the end the following new flush sentence:
        ``The term `renewable diesel' also means fuel derived 
        from biomass which meets the requirements of a 
        Department of Defense specification for military jet 
        fuel or an American Society of Testing and Materials 
        specification for aviation turbine fuel.''.
  (d) Effective Date.--
          (1) In general.--Except as provided in paragraph (2), 
        the amendments made by this section shall apply to fuel 
        produced, and sold or used, after the date of the 
        enactment of this Act.
          (2) Uniform treatment of diesel produced from 
        biomass.--The amendments made by subsection (b) shall 
        apply to fuel produced, and sold or used, after the 
        date which is 30 days after the date of the enactment 
        of this Act.

SEC. 1525. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL CREDIT.

  (a) Coproduction With Petroleum Feedstock.--
          (1) In general.--Paragraph (3) of section 40A(f) 
        (defining renewable diesel), as amended by this Act, is 
        amended by adding at the end the following sentence: 
        ``Such term does not include any fuel derived from 
        coprocessing biomass with a feedstock which is not 
        biomass. For purposes of this paragraph, the term 
        `biomass' has the meaning given such term by section 
        45K(c)(3).''
          (2) Conforming amendment.--Paragraph (3) of section 
        40A(f) is amended by striking ``(as defined in section 
        45K(c)(3))''.
  (b) Clarification of Eligibility for Alternative Fuel 
Credit.--
          (1) In general.--Subparagraph (F) of section 
        6426(d)(2) is amended by striking ``hydrocarbons'' and 
        inserting ``fuel''.
          (2) Conforming amendment.--Section 6426 is amended by 
        adding at the end the following new subsection:
  ``(h) Denial of Double Benefit.--No credit shall be 
determined under subsection (d) or (e) with respect to any fuel 
with respect to which credit may be determined under subsection 
(b) or (c) or under section 40 or 40A.''.
  (c) Effective Date.--
          (1) In general.--Except as provided in paragraph (2), 
        the amendments made by this section shall apply to fuel 
        produced, and sold or used, after December 31, 2007.
          (2) Clarification of eligibility for alternative fuel 
        credit.--The amendment made by subsection (b) shall 
        take effect as if included in section 11113 of the 
        Safe, Accountable, Flexible, Efficient Transportation 
        Equity Act: A Legacy for Users.

SEC. 1526. PROVISIONS CLARIFYING TREATMENT OF FUELS WITH NO NEXUS TO 
                    THE UNITED STATES.

  (a) Alcohol Fuels Credit.--Subsection (d) of section 40 is 
amended by adding at the end the following new paragraph:
          ``(6) Limitation to alcohol with connection to the 
        united states.--No credit shall be determined under 
        this section with respect to any alcohol which is 
        produced outside the United States for use as a fuel 
        outside the United States. For purposes of this 
        paragraph, the term `United States' includes any 
        possession of the United States.''.
  (b) Biodiesel Fuels Credit.--Subsection (d) of section 40A is 
amended by adding at the end the following new paragraph:
          ``(5) Limitation to biodiesel with connection to the 
        united states.--No credit shall be determined under 
        this section with respect to any biodiesel which is 
        produced outside the United States for use as a fuel 
        outside the United States. For purposes of this 
        paragraph, the term `United States' includes any 
        possession of the United States.''.
  (c) Excise Tax Credit.--
          (1) In general.--Section 6426, as amended by this 
        Act, is amended by adding at the end the following new 
        subsection:
  ``(i) Limitation to Fuels With Connection to the United 
States.--
          ``(1) Alcohol.--No credit shall be determined under 
        this section with respect to any alcohol which is 
        produced outside the United States for use as a fuel 
        outside the United States.
          ``(2) Biodiesel and alternative fuels.--No credit 
        shall be determined under this section with respect to 
        any biodiesel or alternative fuel which is produced 
        outside the United States for use as a fuel outside the 
        United States.
For purposes of this subsection, the term `United States' 
includes any possession of the United States.''.
          (2) Conforming amendment.--Subsection (e) of section 
        6427 is amended by redesignating paragraph (5) as 
        paragraph (6) and by inserting after paragraph (4) the 
        following new paragraph:
          ``(5) Limitation to fuels with connection to the 
        united states.--No amount shall be payable under 
        paragraph (1) or (2) with respect to any mixture or 
        alternative fuel if credit is not allowed with respect 
        to such mixture or alternative fuel by reason of 
        section 6426(i).''.
  (d) Effective Date.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall 
        take effect as if included in section 301 of the 
        American Jobs Creation Act of 2004.
          (2) Alternative fuel credits.--So much of the 
        amendments made by this section as relate to the 
        alternative fuel credit or the alternative fuel mixture 
        credit shall take effect as if included in section 
        11113 of the Safe, Accountable, Flexible, Efficient 
        Transportation Equity Act: A Legacy for Users.
          (3) Renewable diesel.--So much of the amendments made 
        by this section as relate to renewable diesel shall 
        take effect as if included in section 1346 of the 
        Energy Policy Act of 2005.

SEC. 1527. COMPREHENSIVE STUDY OF BIOFUELS.

  (a) Study.--The Secretary of the Treasury, in consultation 
with the Secretary of Agriculture, the Secretary of Energy, and 
the Administrator of the Environmental Protection Agency, shall 
enter into an agreement with the National Academy of Sciences 
to produce an analysis of current scientific findings to 
determine--
          (1) current biofuels production, as well as 
        projections for future production,
          (2) the maximum amount of biofuels production capable 
        on United States farmland,
          (3) the domestic effects of a dramatic increase in 
        biofuels production on, for example--
                  (A) the price of fuel,
                  (B) the price of land in rural and suburban 
                communities,
                  (C) crop acreage and other land use,
                  (D) the environment, due to changes in crop 
                acreage, fertilizer use, runoff, water use, 
                emissions from vehicles utilizing biofuels, and 
                other factors,
                  (E) the price of feed,
                  (F) the selling price of grain crops,
                  (G) exports and imports of grains,
                  (H) taxpayers, through cost or savings to 
                commodity crop payments, and
                  (I) the expansion of refinery capacity,
          (4) the ability to convert corn ethanol plants for 
        other uses, such as cellulosic ethanol or biodiesel,
          (5) a comparative analysis of corn ethanol versus 
        other biofuels and renewable energy sources, 
        considering cost, energy output, and ease of 
        implementation, and
          (6) the need for additional scientific inquiry, and 
        specific areas of interest for future research.
  (b) Report.--The National Academy of Sciences shall submit an 
initial report of the findings of the report required under 
subsection (a) to the Congress not later than 3 months after 
the date of the enactment of this Act, and a final report not 
later than 6 months after such date of enactment.

              PART II--ADVANCED TECHNOLOGY MOTOR VEHICLES

SEC. 1528. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
                    VEHICLES.

  (a) In General.--Subpart B of part IV of subchapter A of 
chapter 1 (relating to other credits) is amended by adding at 
the end the following new section:

``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

  ``(a) Allowance of Credit.--There shall be allowed as a 
credit against the tax imposed by this chapter for the taxable 
year an amount equal to the sum of the credit amounts 
determined under subsection (b) with respect to each new 
qualified plug-in electric drive motor vehicle placed in 
service by the taxpayer during the taxable year.
  ``(b) Per Vehicle Dollar Limitation.--
          ``(1) In general.--The amount determined under this 
        subsection with respect to any new qualified plug-in 
        electric drive motor vehicle is the sum of the amounts 
        determined under paragraphs (2) and (3) with respect to 
        such vehicle.
          ``(2) Base amount.--The amount determined under this 
        paragraph is $3,000.
          ``(3) Battery capacity.--In the case of a vehicle 
        which draws propulsion energy from a battery with not 
        less than 5 kilowatt hours of capacity, the amount 
        determined under this paragraph is $200, plus $200 for 
        each kilowatt hour of capacity in excess of 5 kilowatt 
        hours. The amount determined under this paragraph shall 
        not exceed $2,000.
  ``(c) Application With Other Credits.--
          ``(1) Business credit treated as part of general 
        business credit.--So much of the credit which would be 
        allowed under subsection (a) for any taxable year 
        (determined without regard to this subsection) that is 
        attributable to property of a character subject to an 
        allowance for depreciation shall be treated as a credit 
        listed in section 38(b) for such taxable year (and not 
        allowed under subsection (a)).
          ``(2) Personal credit.--
                  ``(A) In general.--For purposes of this 
                title, the credit allowed under subsection (a) 
                for any taxable year (determined after 
                application of paragraph (1)) shall be treated 
                as a credit allowable under subpart A for such 
                taxable year.
                  ``(B) Limitation based on amount of tax.--In 
                the case of a taxable year to which section 
                26(a)(2) does not apply, the credit allowed 
                under subsection (a) for any taxable year 
                (determined after application of paragraph (1)) 
                shall not exceed the excess of--
                          ``(i) the sum of the regular tax 
                        liability (as defined in section 26(b)) 
                        plus the tax imposed by section 55, 
                        over
                          ``(ii) the sum of the credits 
                        allowable under subpart A (other than 
                        this section and sections 23 and 25D) 
                        and section 27 for the taxable year.
  ``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--
For purposes of this section--
          ``(1) In general.--The term `new qualified plug-in 
        electric drive motor vehicle' means a motor vehicle (as 
        defined in section 30(c)(2))--
                  ``(A) the original use of which commences 
                with the taxpayer,
                  ``(B) which is acquired for use or lease by 
                the taxpayer and not for resale,
                  ``(C) which is made by a manufacturer,
                  ``(D) which has a gross vehicle weight rating 
                of less than 14,000 pounds,
                  ``(E) which has received a certificate of 
                conformity under the Clean Air Act and meets or 
                exceeds the Bin 5 Tier II emission standard 
                established in regulations prescribed by the 
                Administrator of the Environmental Protection 
                Agency under section 202(i) of the Clean Air 
                Act for that make and model year vehicle, and
                  ``(F) which is propelled to a significant 
                extent by an electric motor which draws 
                electricity from a battery which--
                          ``(i) has a capacity of not less than 
                        4 kilowatt hours, and
                          ``(ii) is capable of being recharged 
                        from an external source of electricity.
          ``(2) Exception.--The term `new qualified plug-in 
        electric drive motor vehicle' shall not include any 
        vehicle which is not a passenger automobile or light 
        truck if such vehicle has a gross vehicle weight rating 
        of less than 8,500 pounds.
          ``(3) Other terms.--The terms `passenger automobile', 
        `light truck', and `manufacturer' have the meanings 
        given such terms in regulations prescribed by the 
        Administrator of the Environmental Protection Agency 
        for purposes of the administration of title II of the 
        Clean Air Act (42 U.S.C. 7521 et seq.).
          ``(4) Battery capacity.--The term `capacity' means, 
        with respect to any battery, the quantity of 
        electricity which the battery is capable of storing, 
        expressed in kilowatt hours, as measured from a 100 
        percent state of charge to a 0 percent state of charge.
  ``(e) Limitation on Number of New Qualified Plug-in Electric 
Drive Motor Vehicles Eligible for Credit.--
          ``(1) In general.--In the case of a new qualified 
        plug-in electric drive motor vehicle sold during the 
        phaseout period, only the applicable percentage of the 
        credit otherwise allowable under subsection (a) shall 
        be allowed.
          ``(2) Phaseout period.--For purposes of this 
        subsection, the phaseout period is the period beginning 
        with the second calendar quarter following the calendar 
        quarter which includes the first date on which the 
        number of new qualified plug-in electric drive motor 
        vehicles manufactured by the manufacturer of the 
        vehicle referred to in paragraph (1) sold for use in 
        the United States after the date of the enactment of 
        this section, is at least 60,000.
          ``(3) Applicable percentage.--For purposes of 
        paragraph (1), the applicable percentage is--
                  ``(A) 50 percent for the first 2 calendar 
                quarters of the phaseout period,
                  ``(B) 25 percent for the 3d and 4th calendar 
                quarters of the phaseout period, and
                  ``(C) 0 percent for each calendar quarter 
                thereafter.
          ``(4) Controlled groups.--Rules similar to the rules 
        of section 30B(f)(4) shall apply for purposes of this 
        subsection.
  ``(f) Special Rules.--
          ``(1) Basis reduction.--The basis of any property for 
        which a credit is allowable under subsection (a) shall 
        be reduced by the amount of such credit (determined 
        without regard to subsection (c)).
          ``(2) Recapture.--The Secretary shall, by 
        regulations, provide for recapturing the benefit of any 
        credit allowable under subsection (a) with respect to 
        any property which ceases to be property eligible for 
        such credit.
          ``(3) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection 
        (a) with respect to any property referred to in section 
        50(b)(1) or with respect to the portion of the cost of 
        any property taken into account under section 179.
          ``(4) Election not to take credit.--No credit shall 
        be allowed under subsection (a) for any vehicle if the 
        taxpayer elects to not have this section apply to such 
        vehicle.
          ``(5) Property used by tax-exempt entity; interaction 
        with air quality and motor vehicle safety standards.--
        Rules similar to the rules of paragraphs (6) and (10) 
        of section 30B(h) shall apply for purposes of this 
        section.''.
  (b) Coordination With Alternative Motor Vehicle Credit.--
Section 30B(d)(3) is amended by adding at the end the following 
new subparagraph:
                  ``(D) Exclusion of plug-in vehicles.--Any 
                vehicle with respect to which a credit is 
                allowable under section 30D (determined without 
                regard to subsection (c) thereof) shall not be 
                taken into account under this section.''.
  (c) Credit Made Part of General Business Credit.--Section 
38(b), as amended by this Act, is amended--
          (1) by striking ``and'' each place it appears at the 
        end of any paragraph,
          (2) by striking ``plus'' each place it appears at the 
        end of any paragraph,
          (3) by striking the period at the end of paragraph 
        (31) and inserting ``, plus'', and
          (4) by adding at the end the following new paragraph:
          ``(32) the portion of the new qualified plug-in 
        electric drive motor vehicle credit to which section 
        30D(c)(1) applies.''.
  (d) Conforming Amendments.--
          (1)(A) Section 24(b)(3)(B), as amended by this Act, 
        is amended by striking ``and 25D'' and inserting ``25D, 
        and 30D''.
          (B) Section 25(e)(1)(C)(ii) is amended by inserting 
        ``30D,'' after ``25D,''.
          (C) Section 25B(g)(2), as amended by this Act, is 
        amended by striking ``and 25D'' and inserting ``, 25D, 
        and 30D''.
          (D) Section 26(a)(1), as amended by this Act, is 
        amended by striking ``and 25D'' and inserting ``25D, 
        and 30D''.
          (E) Section 1400C(d)(2) is amended by striking ``and 
        25D'' and inserting ``25D, and 30D''.
          (2) Section 1016(a) is amended by striking ``and'' at 
        the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and 
        by adding at the end the following new paragraph:
          ``(38) to the extent provided in section 
        30D(f)(1).''.
          (3) Section 6501(m) is amended by inserting 
        ``30D(f)(4),'' after ``30C(e)(5),''.
          (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by adding at the 
        end the following new item:

``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.

  (e) Treatment of Alternative Motor Vehicle Credit as a 
Personal Credit.--
          (1) In general.--Paragraph (2) of section 30B(g) is 
        amended to read as follows:
          ``(2) Personal credit.--The credit allowed under 
        subsection (a) for any taxable year (after application 
        of paragraph (1)) shall be treated as a credit 
        allowable under subpart A for such taxable year.''.
          (2) Conforming amendments.--
                  (A) Subparagraph (A) of section 30C(d)(2) is 
                amended by striking ``sections 27, 30, and 
                30B'' and inserting ``sections 27 and 30''.
                  (B) Paragraph (3) of section 55(c) is amended 
                by striking ``30B(g)(2),''.
  (f) Effective Date.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall 
        apply to taxable years beginning after December 31, 
        2007.
          (2) Treatment of alternative motor vehicle credit as 
        personal credit.--The amendments made by subsection (e) 
        shall apply to taxable years beginning after December 
        31, 2006.
  (g) Application of EGTRRA Sunset.--The amendment made by 
subsection (d)(1)(A) shall be subject to title IX of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 in 
the same manner as the provision of such Act to which such 
amendment relates.

SEC. 1529. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS 
                    AND ADVANCED INSULATION.

  (a) In General.--Section 4053 (relating to exemptions) is 
amended by adding at the end the following new paragraphs:
          ``(9) Idling reduction device.--Any device or system 
        of devices which--
                  ``(A) is designed to provide to a vehicle 
                those services (such as heat, air conditioning, 
                or electricity) that would otherwise require 
                the operation of the main drive engine while 
                the vehicle is temporarily parked or remains 
                stationary using either--
                          ``(i) an all electric unit, such as a 
                        battery powered unit or from grid-
                        supplied electricity, or
                          ``(ii) a dual fuel unit powered by 
                        diesel or other fuels, and capable of 
                        providing such services from grid-
                        supplied electricity or on-truck 
                        batteries alone, and
                  ``(B) is certified by the Secretary of 
                Energy, in consultation with the Administrator 
                of the Environmental Protection Agency and the 
                Secretary of Transportation, to reduce long-
                duration idling of such vehicle at a motor 
                vehicle rest stop or other location where such 
                vehicles are temporarily parked or remain 
                stationary.
        For purposes of subparagraph (B), the term `long-
        duration idling' means the operation of a main drive 
        engine, for a period greater than 15 consecutive 
        minutes, where the main drive engine is not engaged in 
        gear. Such term does not apply to routine stoppages 
        associated with traffic movement or congestion.
          ``(10) Advanced insulation.--Any insulation that has 
        an R value of not less than R35 per inch.''.
  (b) Effective Date.--The amendment made by this section shall 
apply to sales or installations after December 31, 2007.

               PART III--OTHER TRANSPORTATION PROVISIONS

SEC. 1530. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.

  (a) In General.--Part I of subchapter Y of chapter 1 is 
amended by redesignating section 1400L as section 1400K and by 
adding at the end the following new section:

``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.

  ``(a) In General.--In the case of a New York Liberty Zone 
governmental unit, there shall be allowed as a credit against 
any taxes imposed for any payroll period by section 3402 for 
which such governmental unit is liable under section 3403 an 
amount equal to so much of the portion of the qualifying 
project expenditure amount allocated under subsection (b)(3) to 
such governmental unit for the calendar year as is allocated by 
such governmental unit to such period under subsection (b)(4).
  ``(b) Qualifying Project Expenditure Amount.--For purposes of 
this section--
          ``(1) In general.--The term `qualifying project 
        expenditure amount' means, with respect to any calendar 
        year, the sum of--
                  ``(A) the total expenditures paid or incurred 
                during such calendar year by all New York 
                Liberty Zone governmental units and the Port 
                Authority of New York and New Jersey for any 
                portion of qualifying projects located wholly 
                within the City of New York, New York, and
                  ``(B) any such expenditures--
                          ``(i) paid or incurred in any 
                        preceding calendar year which begins 
                        after the date of enactment of this 
                        section, and
                          ``(ii) not previously allocated under 
                        paragraph (3).
          ``(2) Qualifying project.--The term `qualifying 
        project' means any transportation infrastructure 
        project, including highways, mass transit systems, 
        railroads, airports, ports, and waterways, in or 
        connecting with the New York Liberty Zone (as defined 
        in section 1400K(h)), which is designated as a 
        qualifying project under this section jointly by the 
        Governor of the State of New York and the Mayor of the 
        City of New York, New York.
          ``(3) General allocation.--
                  ``(A) In general.--The Governor of the State 
                of New York and the Mayor of the City of New 
                York, New York, shall jointly allocate to each 
                New York Liberty Zone governmental unit the 
                portion of the qualifying project expenditure 
                amount which may be taken into account by such 
                governmental unit under subsection (a) for any 
                calendar year in the credit period.
                  ``(B) Aggregate limit.--The aggregate amount 
                which may be allocated under subparagraph (A) 
                for all calendar years in the credit period 
                shall not exceed $2,000,000,000.
                  ``(C) Annual limit.--The aggregate amount 
                which may be allocated under subparagraph (A) 
                for any calendar year in the credit period 
                shall not exceed the sum of--
                          ``(i) $115,000,000 ($425,000,000 in 
                        the case of the last 2 years in the 
                        credit period), plus
                          ``(ii) the aggregate amount 
                        authorized to be allocated under this 
                        paragraph for all preceding calendar 
                        years in the credit period which was 
                        not so allocated.
                  ``(D) Unallocated amounts at end of credit 
                period.--If, as of the close of the credit 
                period, the amount under subparagraph (B) 
                exceeds the aggregate amount allocated under 
                subparagraph (A) for all calendar years in the 
                credit period, the Governor of the State of New 
                York and the Mayor of the City of New York, New 
                York, may jointly allocate to New York Liberty 
                Zone governmental units for any calendar year 
                in the 5-year period following the credit 
                period an amount equal to--
                          ``(i) the lesser of--
                                  ``(I) such excess, or
                                  ``(II) the qualifying project 
                                expenditure amount for such 
                                calendar year, reduced by
                          ``(ii) the aggregate amount allocated 
                        under this subparagraph for all 
                        preceding calendar years.
          ``(4) Allocation to payroll periods.--Each New York 
        Liberty Zone governmental unit which has been allocated 
        a portion of the qualifying project expenditure amount 
        under paragraph (3) for a calendar year may allocate 
        such portion to payroll periods beginning in such 
        calendar year as such governmental unit determines 
        appropriate.
  ``(c) Carryover of Unused Allocations.--
          ``(1) In general.--Except as provided in paragraph 
        (2), if the amount allocated under subsection (b)(3) to 
        a New York Liberty Zone governmental unit for any 
        calendar year exceeds the aggregate taxes imposed by 
        section 3402 for which such governmental unit is liable 
        under section 3403 for periods beginning in such year, 
        such excess shall be carried to the succeeding calendar 
        year and added to the allocation of such governmental 
        unit for such succeeding calendar year.
          ``(2) Reallocation.--If a New York Liberty Zone 
        governmental unit does not use an amount allocated to 
        it under subsection (b)(3) within the time prescribed 
        by the Governor of the State of New York and the Mayor 
        of the City of New York, New York, then such amount 
        shall after such time be treated for purposes of 
        subsection (b)(3) in the same manner as if it had never 
        been allocated.
  ``(d) Definitions and Special Rules.--For purposes of this 
section--
          ``(1) Credit period.--The term `credit period' means 
        the 12-year period beginning on January 1, 2008.
          ``(2) New york liberty zone governmental unit.--The 
        term `New York Liberty Zone governmental unit' means--
                  ``(A) the State of New York,
                  ``(B) the City of New York, New York, and
                  ``(C) any agency or instrumentality of such 
                State or City.
          ``(3) Treatment of funds.--Any expenditure for a 
        qualifying project taken into account for purposes of 
        the credit under this section shall be considered State 
        and local funds for the purpose of any Federal program.
          ``(4) Treatment of credit amounts for purposes of 
        withholding taxes.--For purposes of this title, a New 
        York Liberty Zone governmental unit shall be treated as 
        having paid to the Secretary, on the day on which wages 
        are paid to employees, an amount equal to the amount of 
        the credit allowed to such entity under subsection (a) 
        with respect to such wages, but only if such 
        governmental unit deducts and withholds wages for such 
        payroll period under section 3401 (relating to wage 
        withholding).
  ``(e) Reporting.--The Governor of the State of New York and 
the Mayor of the City of New York, New York, shall jointly 
submit to the Secretary an annual report--
          ``(1) which certifies--
                  ``(A) the qualifying project expenditure 
                amount for the calendar year, and
                  ``(B) the amount allocated to each New York 
                Liberty Zone governmental unit under subsection 
                (b)(3) for the calendar year, and
          ``(2) includes such other information as the 
        Secretary may require to carry out this section.
  ``(f) Guidance.--The Secretary may prescribe such guidance as 
may be necessary or appropriate to ensure compliance with the 
purposes of this section.''.
  (b) Termination of Special Allowance and Expensing.--
Subparagraph (A) of section 1400K(b)(2), as redesignated by 
subsection (a), is amended by striking the parenthetical 
therein and inserting ``(in the case of nonresidential real 
property and residential rental property, the date of the 
enactment of the Clean Renewable Energy and Conservation Tax 
Act of 2007 or, if acquired pursuant to a binding contract in 
effect on such enactment date, December 31, 2009)''.
  (c) Conforming Amendments.--
          (1) Section 38(c)(3)(B) is amended by striking 
        ``section 1400L(a)'' and inserting ``section 
        1400K(a)''.
          (2) Section 168(k)(2)(D)(ii) is amended by striking 
        ``section 1400L(c)(2)'' and inserting ``section 
        1400K(c)(2)''.
          (3) The table of sections for part I of subchapter Y 
        of chapter 1 is amended by redesignating the item 
        relating to section 1400L as an item relating to 
        section 1400K and by inserting after such item the 
        following new item:

``Sec. 1400L. New York Liberty Zone tax credits.''.

  (d) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act.

SEC. 1531. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE 
                    COMMUTERS.

  (a) In General.--Paragraph (1) of section 132(f) of the 
Internal Revenue Code of 1986 (relating to general rule for 
qualified transportation fringe) is amended by adding at the 
end the following:
                  ``(D) Any qualified bicycle commuting 
                reimbursement.''.
  (b) Limitation on Exclusion.--Paragraph (2) of section 132(f) 
of such Code is amended by striking ``and'' at the end of 
subparagraph (A), by striking the period at the end of 
subparagraph (B) and inserting ``, and'', and by adding at the 
end the following new subparagraph:
                  ``(C) the applicable annual limitation in the 
                case of any qualified bicycle commuting 
                reimbursement.''.
  (c) Definitions.--Paragraph (5) of section 132(f) of such 
Code (relating to definitions) is amended by adding at the end 
the following:
                  ``(F) Definitions related to bicycle 
                commuting reimbursement.--
                          ``(i) Qualified bicycle commuting 
                        reimbursement.--The term `qualified 
                        bicycle commuting reimbursement' means, 
                        with respect to any calendar year, any 
                        employer reimbursement during the 15-
                        month period beginning with the first 
                        day of such calendar year for 
                        reasonable expenses incurred by the 
                        employee during such calendar year for 
                        the purchase of a bicycle and bicycle 
                        improvements, repair, and storage, if 
                        such bicycle is regularly used for 
                        travel between the employee's residence 
                        and place of employment.
                          ``(ii) Applicable annual 
                        limitation.--The term `applicable 
                        annual limitation' means, with respect 
                        to any employee for any calendar year, 
                        the product of $20 multiplied by the 
                        number of qualified bicycle commuting 
                        months during such year.
                          ``(iii) Qualified bicycle commuting 
                        month.--The term `qualified bicycle 
                        commuting month' means, with respect to 
                        any employee, any month during which 
                        such employee--
                                  ``(I) regularly uses the 
                                bicycle for a substantial 
                                portion of the travel between 
                                the employee's residence and 
                                place of employment, and
                                  ``(II) does not receive any 
                                benefit described in 
                                subparagraph (A), (B), or (C) 
                                of paragraph (1).''.
  (d) Constructive Receipt of Benefit.--Paragraph (4) of 
section 132(f) is amended by inserting ``(other than a 
qualified bicycle commuting reimbursement)'' after ``qualified 
transportation fringe''.
  (e) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2007.

             Subtitle C--Energy Conservation and Efficiency


                 PART I--CONSERVATION TAX CREDIT BONDS

SEC. 1541. QUALIFIED ENERGY CONSERVATION BONDS.

  (a) In General.--Subpart I of part IV of subchapter A of 
chapter 1, as added by this title, is amended by adding at the 
end the following new section:

``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.

  ``(a) Qualified Energy Conservation Bond.--For purposes of 
this subchapter, the term `qualified energy conservation bond' 
means any bond issued as part of an issue if--
          ``(1) 100 percent of the available project proceeds 
        of such issue are to be used for one or more qualified 
        conservation purposes,
          ``(2) the bond is issued by a State or local 
        government, and
          ``(3) the issuer designates such bond for purposes of 
        this section.
  ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under 
subsection (a) by any issuer shall not exceed the limitation 
amount allocated to such issuer under subsection (d).
  ``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond 
limitation of $3,000,000,000.
  ``(d) Allocations.--
          ``(1) In general.--The limitation applicable under 
        subsection (c) shall be allocated by the Secretary 
        among the States in proportion to the population of the 
        States.
          ``(2) Allocations to largest local governments.--
                  ``(A) In general.--In the case of any State 
                in which there is a large local government, 
                each such local government shall be allocated a 
                portion of such State's allocation which bears 
                the same ratio to the State's allocation 
                (determined without regard to this 
                subparagraph) as the population of such large 
                local government bears to the population of 
                such State.
                  ``(B) Allocation of unused limitation to 
                state.--The amount allocated under this 
                subsection to a large local government may be 
                reallocated by such local government to the 
                State in which such local government is 
                located.
                  ``(C) Large local government.--For purposes 
                of this section, the term `large local 
                government' means any municipality or county if 
                such municipality or county has a population of 
                100,000 or more.
          ``(3) Allocation to issuers; restriction on private 
        activity bonds.--Any allocation under this subsection 
        to a State or large local government shall be allocated 
        by such State or large local government to issuers 
        within the State in a manner that results in not less 
        than 70 percent of the allocation to such State or 
        large local government being used to designate bonds 
        which are not private activity bonds.
  ``(e) Qualified Conservation Purpose.--For purposes of this 
section--
          ``(1) In general.--The term `qualified conservation 
        purpose' means any of the following:
                  ``(A) Capital expenditures incurred for 
                purposes of--
                          ``(i) reducing energy consumption in 
                        publicly-owned buildings by at least 20 
                        percent,
                          ``(ii) implementing green community 
                        programs, or
                          ``(iii) rural development involving 
                        the production of electricity from 
                        renewable energy resources.
                  ``(B) Expenditures with respect to research 
                facilities, and research grants, to support 
                research in--
                          ``(i) development of cellulosic 
                        ethanol or other nonfossil fuels,
                          ``(ii) technologies for the capture 
                        and sequestration of carbon dioxide 
                        produced through the use of fossil 
                        fuels,
                          ``(iii) increasing the efficiency of 
                        existing technologies for producing 
                        nonfossil fuels,
                          ``(iv) automobile battery 
                        technologies and other technologies to 
                        reduce fossil fuel consumption in 
                        transportation, or
                          ``(v) technologies to reduce energy 
                        use in buildings.
                  ``(C) Mass commuting facilities and related 
                facilities that reduce the consumption of 
                energy, including expenditures to reduce 
                pollution from vehicles used for mass 
                commuting.
                  ``(D) Demonstration projects designed to 
                promote the commercialization of--
                          ``(i) green building technology,
                          ``(ii) conversion of agricultural 
                        waste for use in the production of fuel 
                        or otherwise,
                          ``(iii) advanced battery 
                        manufacturing technologies,
                          ``(iv) technologies to reduce peak 
                        use of electricity, or
                          ``(v) technologies for the capture 
                        and sequestration of carbon dioxide 
                        emitted from combusting fossil fuels in 
                        order to produce electricity.
                  ``(E) Public education campaigns to promote 
                energy efficiency.
          ``(2) Special rules for private activity bonds.--For 
        purposes of this section, in the case of any private 
        activity bond, the term `qualified conservation 
        purposes' shall not include any expenditure which is 
        not a capital expenditure.
  ``(f) Population.--
          ``(1) In general.--The population of any State or 
        local government shall be determined for purposes of 
        this section as provided in section 146(j) for the 
        calendar year which includes the date of the enactment 
        of this section.
          ``(2) Special rule for counties.--In determining the 
        population of any county for purposes of this section, 
        any population of such county which is taken into 
        account in determining the population of any 
        municipality which is a large local government shall 
        not be taken into account in determining the population 
        of such county.
  ``(g) Application to Indian Tribal Governments.--An Indian 
tribal government shall be treated for purposes of this section 
in the same manner as a large local government, except that--
          ``(1) an Indian tribal government shall be treated 
        for purposes of subsection (d) as located within a 
        State to the extent of so much of the population of 
        such government as resides within such State, and
          ``(2) any bond issued by an Indian tribal government 
        shall be treated as a qualified energy conservation 
        bond only if issued as part of an issue the available 
        project proceeds of which are used for purposes for 
        which such Indian tribal government could issue bonds 
        to which section 103(a) applies.''.
  (b) Conforming Amendments.--
          (1) Paragraph (1) of section 54A(d), as added by this 
        title, is amended to read as follows:
          ``(1) Qualified tax credit bond.--The term `qualified 
        tax credit bond' means--
                  ``(A) a new clean renewable energy bond, or
                  ``(B) a qualified energy conservation bond,
        which is part of an issue that meets requirements of 
        paragraphs (2), (3), (4), and (5).''.
          (2) Subparagraph (C) of section 54A(d)(2), as added 
        by this title, is amended to read as follows:
                  ``(C) Qualified purpose.--For purposes of 
                this paragraph, the term `qualified purpose' 
                means--
                          ``(i) in the case of a new clean 
                        renewable energy bond, a purpose 
                        specified in section 54B(a)(1), and
                          ``(ii) in the case of a qualified 
                        energy conservation bond, a purpose 
                        specified in section 54C(a)(1).''.
          (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1, as amended by this title, is 
        amended by adding at the end the following new item:

``Sec. 54C. Qualified energy conservation bonds.''.

  (c) Effective Date.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

SEC. 1542. QUALIFIED FORESTRY CONSERVATION BONDS.

  (a) In General.--Subpart I of part IV of subchapter A of 
chapter 1, as added by this title, is amended by adding at the 
end the following new section:

``SEC. 54D. QUALIFIED FORESTRY CONSERVATION BONDS.

  ``(a) Qualified Forestry Conservation Bond.--For purposes of 
this subchapter, the term `qualified forestry conservation 
bond' means any bond issued as part of an issue if--
          ``(1) 100 percent of the available proceeds of such 
        issue are to be used for one or more qualified forestry 
        conservation projects,
          ``(2) the bond is issued by a qualified issuer, and
          ``(3) the issuer designates such bond for purposes of 
        this section.
  ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under 
subsection (a) by any issuer shall not exceed the limitation 
amount allocated to such issuer under subsection (d).
  ``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified forestry conservation bond 
limitation of $500,000,000.
  ``(d) Allocations.--
          ``(1) In general.--The Secretary shall make 
        allocations of the amount of the national qualified 
        forestry conservation bond limitation described in 
        subsection (c) among qualified forestry conservation 
        projects in such manner as the Secretary determines 
        appropriate so as to ensure that all of such limitation 
        is allocated before the date which is 24 months after 
        the date of the enactment of this section.
          ``(2) Solicitation of applications.--The Secretary 
        shall solicit applications for allocations of the 
        national qualified forestry conservation bond 
        limitation described in subsection (c) not later than 
        90 days after the date of the enactment of this 
        section.
  ``(e) Qualified Forestry Conservation Project.--For purposes 
of this section, the term `qualified forestry conservation 
project' means the acquisition by a State or 501(c)(3) 
organization (as defined in section 150(a)(4)) from an 
unrelated person of forest and forest land that meets the 
following qualifications:
          ``(1) Some portion of the land acquired must be 
        adjacent to United States Forest Service Land.
          ``(2) At least half of the land acquired must be 
        transferred to the United States Forest Service at no 
        net cost to the United States and not more than half of 
        the land acquired may either remain with or be donated 
        to a State.
          ``(3) All of the land must be subject to a native 
        fish habitat conservation plan approved by the United 
        States Fish and Wildlife Service.
          ``(4) The amount of acreage acquired must be at least 
        40,000 acres.
  ``(f) Qualified Issuer.--For purposes of this section, the 
term `qualified issuer' means a State or 501(c)(3) organization 
(as defined in section 150(a)(4)).
  ``(g) Special Arbitrage Rule.--In the case of any qualified 
forestry conservation bond issued as part of an issue, section 
54A(d)(4)(C) shall be applied to such issue without regard to 
clause (i).''.
  (b) Conforming Amendments.--
          (1) Paragraph (1) of section 54A(d), as added by this 
        title, is amended to read as follows:
          ``(1) Qualified tax credit bond.--The term `qualified 
        tax credit bond' means--
                  ``(A) a new clean renewable energy bond,
                  ``(B) a qualified energy conservation bond, 
                or
                  ``(C) a qualified forestry conservation bond,
        which is part of an issue that meets requirements of 
        paragraphs (2), (3), (4), and (5).''.
          (2) Subparagraph (C) of section 54A(d)(2), as added 
        by this title, is amended to read as follows:
                  ``(C) Qualified purpose.--For purposes of 
                this paragraph, the term `qualified purpose' 
                means--
                          ``(i) in the case of a new clean 
                        renewable energy bond, a purpose 
                        specified in section 54B(a)(1),
                          ``(ii) in the case of a qualified 
                        energy conservation bond, a purpose 
                        specified in section 54C(a)(1), and
                          ``(iii) in the case of a qualified 
                        forestry conservation bond, a purpose 
                        specified in section 54D(a)(1).''.
          (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1, as amended by this title, is 
        amended by adding at the end the following new item:

``Sec. 54C. Qualified forestry conservation bonds.''.

  (c) Effective Date.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

                          PART II--EFFICIENCY

SEC. 1543. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT EXISTING 
                    HOMES CREDIT.

  (a) Extension of Credit.--Section 25C(g) (relating to 
termination) is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
  (b) Qualified Biomass Fuel Property.--
          (1) In general.--Section 25C(d)(3) is amended--
                  (A) by striking ``and'' at the end of 
                subparagraph (D),
                  (B) by striking the period at the end of 
                subparagraph (E) and inserting ``, and'', and
                  (C) by adding at the end the following new 
                subparagraph:
                  ``(F) a stove which uses the burning of 
                biomass fuel to heat a dwelling unit located in 
                the United States and used as a residence by 
                the taxpayer, or to heat water for use in such 
                a dwelling unit, and which has a thermal 
                efficiency rating of at least 75 percent.''.
          (2) Biomass fuel.--Section 25C(d) (relating to 
        residential energy property expenditures) is amended by 
        adding at the end the following new paragraph:
          ``(6) Biomass fuel.--The term `biomass fuel' means 
        any plant-derived fuel available on a renewable or 
        recurring basis, including agricultural crops and 
        trees, wood and wood waste and residues (including wood 
        pellets), plants (including aquatic plants), grasses, 
        residues, and fibers.''.
  (c) Effective Date.--The amendments made this section shall 
apply to expenditures made after December 31, 2007.

SEC. 1544. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
                    BUILDINGS DEDUCTION.

  Subsection (h) of section 179D (relating to termination) is 
amended by striking ``December 31, 2008'' and inserting 
``December 31, 2013''.

SEC. 1545. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR 
                    APPLIANCES PRODUCED AFTER 2007.

  (a) In General.--Subsection (b) of section 45M (relating to 
applicable amount) is amended to read as follows:
  ``(b) Applicable Amount.--For purposes of subsection (a)--
          ``(1) Dishwashers.--The applicable amount is--
                  ``(A) $45 in the case of a dishwasher which 
                is manufactured in calendar year 2008 or 2009 
                and which uses no more than 324 kilowatt hours 
                per year and 5.8 gallons per cycle, and
                  ``(B) $75 in the case of a dishwasher which 
                is manufactured in calendar year 2008, 2009, or 
                2010 and which uses no more than 307 kilowatt 
                hours per year and 5.0 gallons per cycle (5.5 
                gallons per cycle for dishwashers designed for 
                greater than 12 place settings).
          ``(2) Clothes washers.--The applicable amount is--
                  ``(A) $75 in the case of a residential top-
                loading clothes washer manufactured in calendar 
                year 2008 which meets or exceeds a 1.72 
                modified energy factor and does not exceed a 
                8.0 water consumption factor,
                  ``(B) $125 in the case of a residential top-
                loading clothes washer manufactured in calendar 
                year 2008 or 2009 which meets or exceeds a 1.8 
                modified energy factor and does not exceed a 
                7.5 water consumption factor,
                  ``(C) $150 in the case of a residential or 
                commercial clothes washer manufactured in 
                calendar year 2008, 2009 or 2010 which meets or 
                exceeds 2.0 modified energy factor and does not 
                exceed a 6.0 water consumption factor, and
                  ``(D) $250 in the case of a residential or 
                commercial clothes washer manufactured in 
                calendar year 2008, 2009, or 2010 which meets 
                or exceeds 2.2 modified energy factor and does 
                not exceed a 4.5 water consumption factor.
          ``(3) Refrigerators.--The applicable amount is--
                  ``(A) $50 in the case of a refrigerator which 
                is manufactured in calendar year 2008, and 
                consumes at least 20 percent but not more than 
                22.9 percent less kilowatt hours per year than 
                the 2001 energy conservation standards,
                  ``(B) $75 in the case of a refrigerator which 
                is manufactured in calendar year 2008 or 2009, 
                and consumes at least 23 percent but no more 
                than 24.9 percent less kilowatt hours per year 
                than the 2001 energy conservation standards,
                  ``(C) $100 in the case of a refrigerator 
                which is manufactured in calendar year 2008, 
                2009, or 2010, and consumes at least 25 percent 
                but not more than 29.9 percent less kilowatt 
                hours per year than the 2001 energy 
                conservation standards, and
                  ``(D) $200 in the case of a refrigerator 
                manufactured in calendar year 2008, 2009, or 
                2010 and which consumes at least 30 percent 
                less energy than the 2001 energy conservation 
                standards.''.
  (b) Eligible Production.--
          (1) Similar treatment for all appliances.--Subsection 
        (c) of section 45M (relating to eligible production) is 
        amended--
                  (A) by striking paragraph (2),
                  (B) by striking ``(1) In general'' and all 
                that follows through ``the eligible'' and 
                inserting ``The eligible'', and
                  (C) by moving the text of such subsection in 
                line with the subsection heading and 
                redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively.
          (2) Modification of base period.--Paragraph (2) of 
        section 45M(c), as amended by paragraph (1) of this 
        section, is amended by striking ``3-calendar year'' and 
        inserting ``2-calendar year''.
  (c) Types of Energy Efficient Appliances.--Subsection (d) of 
section 45M (defining types of energy efficient appliances) is 
amended to read as follows:
  ``(d) Types of Energy Efficient Appliance.--For purposes of 
this section, the types of energy efficient appliances are--
          ``(1) dishwashers described in subsection (b)(1),
          ``(2) clothes washers described in subsection (b)(2), 
        and
          ``(3) refrigerators described in subsection (b)(3).''
  (d) Aggregate Credit Amount Allowed.--
          (1) Increase in limit.--Paragraph (1) of section 
        45M(e) (relating to aggregate credit amount allowed) is 
        amended to read as follows:
          ``(1) Aggregate credit amount allowed.--The aggregate 
        amount of credit allowed under subsection (a) with 
        respect to a taxpayer for any taxable year shall not 
        exceed $75,000,000 reduced by the amount of the credit 
        allowed under subsection (a) to the taxpayer (or any 
        predecessor) for all prior taxable years beginning 
        after December 31, 2007.''.
          (2) Exception for certain refrigerator and clothes 
        washers.--Paragraph (2) of section 45M(e) is amended to 
        read as follows:
          ``(2) Amount allowed for certain refrigerators and 
        clothes washers.--Refrigerators described in subsection 
        (b)(3)(D) and clothes washers described in subsection 
        (b)(2)(D) shall not be taken into account under 
        paragraph (1).''.
  (e) Qualified Energy Efficient Appliances.--
          (1) In general.--Paragraph (1) of section 45M(f) 
        (defining qualified energy efficient appliance) is 
        amended to read as follows:
          ``(1) Qualified energy efficient appliance.--The term 
        `qualified energy efficient appliance' means--
                  ``(A) any dishwasher described in subsection 
                (b)(1),
                  ``(B) any clothes washer described in 
                subsection (b)(2), and
                  ``(C) any refrigerator described in 
                subsection (b)(3).''.
          (2) Clothes washer.--Section 45M(f)(3) (defining 
        clothes washer) is amended by inserting ``commercial'' 
        before ``residential'' the second place it appears.
          (3) Top-loading clothes washer.--Subsection (f) of 
        section 45M (relating to definitions) is amended by 
        redesignating paragraphs (4), (5), (6), and (7) as 
        paragraphs (5), (6), (7), and (8), respectively, and by 
        inserting after paragraph (3) the following new 
        paragraph:
          ``(4) Top-loading clothes washer.--The term `top-
        loading clothes washer' means a clothes washer which 
        has the clothes container compartment access located on 
        the top of the machine and which operates on a vertical 
        axis.''.
          (4) Replacement of energy factor.--Section 45M(f)(7), 
        as redesignated by paragraph (3), is amended to read as 
        follows:
          ``(7) Modified energy factor.--The term `modified 
        energy factor' means the modified energy factor 
        established by the Department of Energy for compliance 
        with the Federal energy conservation standard.''.
          (5) Gallons per cycle; water consumption factor.--
        Section 45M(f) (relating to definitions) is amended by 
        adding at the end the following:
          ``(9) Gallons per cycle.--The term `gallons per 
        cycle' means, with respect to a dishwasher, the amount 
        of water, expressed in gallons, required to complete a 
        normal cycle of a dishwasher.
          ``(10) Water consumption factor.--The term `water 
        consumption factor' means, with respect to a clothes 
        washer, the quotient of the total weighted per-cycle 
        water consumption divided by the cubic foot (or liter) 
        capacity of the clothes washer.''.
  (f) Effective Date.--The amendments made by this section 
shall apply to appliances produced after December 31, 2007.

SEC. 1546. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
                    QUALIFIED ENERGY MANAGEMENT DEVICES.

  (a) In General.--Section 168(e)(3)(C) (relating to 7-year 
property), as amended by this Act, is amended by striking 
``and'' at the end of clause (v), by redesignating clause (vi) 
as clause (vii), and by inserting after clause (v) the 
following new clause:
                          ``(vi) any qualified energy 
                        management device, and''.
  (b) Definition of Qualified Energy Management Device.--
Section 168(i) (relating to definitions and special rules) is 
amended by inserting at the end the following new paragraph:
          ``(18) Qualified energy management device.--
                  ``(A) In general.--The term `qualified energy 
                management device' means any energy management 
                device which is installed on real property of a 
                customer of the taxpayer and is placed in 
                service by a taxpayer who--
                          ``(i) is a supplier of electric 
                        energy or a provider of electric energy 
                        services, and
                          ``(ii) provides all commercial and 
                        residential customers of such supplier 
                        or provider with net metering upon the 
                        request of such customer.
                  ``(B) Energy management device.--For purposes 
                of subparagraph (A), the term `energy 
                management device' means any time-based meter 
                and related communication equipment which is 
                capable of being used by the taxpayer as part 
                of a system that--
                          ``(i) measures and records 
                        electricity usage data on a time-
                        differentiated basis in at least 24 
                        separate time segments per day,
                          ``(ii) provides for the exchange of 
                        information between supplier or 
                        provider and the customer's energy 
                        management device in support of time-
                        based rates or other forms of demand 
                        response, and
                          ``(iii) provides data to such 
                        supplier or provider so that the 
                        supplier or provider can provide energy 
                        usage information to customers 
                        electronically.
                  ``(C) Net metering.--For purposes of 
                subparagraph (A), the term `net metering' means 
                allowing customers a credit for providing 
                electricity to the supplier or provider.''.
  (c) Effective Date.--The amendments made by this section 
shall apply to property placed in service after December 31, 
2007.

                      Subtitle D--Other Provisions


                      PART I--FORESTRY PROVISIONS

SEC. 1551. DEDUCTION FOR QUALIFIED TIMBER GAIN.

  (a) In General.--Part I of subchapter P of chapter 1 is 
amended by adding at the end the following new section:

``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.

  ``(a) In General.--In the case of a taxpayer which elects the 
application of this section for a taxable year, there shall be 
allowed a deduction against gross income in an amount equal to 
60 percent of the lesser of--
          ``(1) the taxpayer's qualified timber gain for such 
        year, or
          ``(2) the taxpayer's net capital gain for such year.
  ``(b) Qualified Timber Gain.--For purposes of this section, 
the term `qualified timber gain' means, with respect to any 
taxpayer for any taxable year, the excess (if any) of--
          ``(1) the sum of the taxpayer's gains described in 
        subsections (a) and (b) of section 631 for such year, 
        over
          ``(2) the sum of the taxpayer's losses described in 
        such subsections for such year.
  ``(c) Special Rules for Pass-Thru Entities.--
          ``(1) In the case of any qualified timber gain of a 
        pass-thru entity (as defined in section 1(h)(10)) other 
        than a real estate investment trust, the election under 
        this section shall be made separately by each taxpayer 
        subject to tax on such gain.
          ``(2) In the case of any qualified timber gain of a 
        real estate investment trust, the election under this 
        section shall be made by the real estate investment 
        trust.
  ``(d) Election.--An election under this section may be made 
only with respect to the first taxable year beginning after the 
date of the enactment of this section.''.
  (b) Coordination With Maximum Capital Gains Rates.--
          (1) Taxpayers other than corporations.--Paragraph (2) 
        of section 1(h) is amended to read as follows:
          ``(2) Reduction of net capital gain.--For purposes of 
        this subsection, the net capital gain for any taxable 
        year shall be reduced (but not below zero) by the sum 
        of--
                  ``(A) the amount which the taxpayer takes 
                into account as investment income under section 
                163(d)(4)(B)(iii), and
                  ``(B) in the case of a taxable year with 
                respect to which an election is in effect under 
                section 1203, the taxpayer's qualified timber 
                gain (as defined in section 1203(b)).''.
          (2) Corporations.--Section 1201 is amended by 
        redesignating subsection (b) as subsection (c) and 
        inserting after subsection (a) the following new 
        subsection:
  ``(b) Qualified Timber Gain Not Taken Into Account.--For 
purposes of this section, in the case of a corporation with 
respect to which an election is in effect under section 1203, 
the net capital gain for any taxable year shall be reduced (but 
not below zero) by the corporation's qualified timber gain (as 
defined in section 1203(b)).''.
  (c) Deduction Allowed Whether or Not Individual Itemizes 
Other Deductions.--Subsection (a) of section 62 is amended by 
inserting before the last sentence the following new paragraph:
          ``(22) Qualified timber gains.--The deduction allowed 
        by section 1203.''.
  (d) Deduction Allowed in Computing Adjusted Current 
Earnings.--Subparagraph (C) of section 56(g)(4) is amended by 
adding at the end the following new clause:
                          ``(vii) Deduction for qualified 
                        timber gain.--Clause (i) shall not 
                        apply to any deduction allowed under 
                        section 1203.''.
  (e) Deduction Allowed in Computing Taxable Income of Electing 
Small Business Trusts.--Subparagraph (C) of section 641(c)(2) 
is amended by inserting after clause (iv) the following new 
clause:
                          ``(v) The deduction allowed under 
                        section 1203.''.
  (f) Treatment of Qualified Timber Gain of Real Estate 
Investment Trusts.--Paragraph (3) of section 857(b) is amended 
by inserting after subparagraph (F) the following new 
subparagraph:
                  ``(G) Treatment of qualified timber gain.--
                For purposes of this part, in the case of a 
                real estate investment trust with respect to 
                which an election is in effect under section 
                1203--
                          ``(i) Reduction of net capital 
                        gain.--The net capital gain of the real 
                        estate investment trust for any taxable 
                        year shall be reduced (but not below 
                        zero) by the real estate investment 
                        trust's qualified timber gain (as 
                        defined in section 1203(b)).
                          ``(ii) Adjustment to shareholder's 
                        basis attributable to deduction for 
                        qualified timber gains.--
                                  ``(I) In general.--The 
                                adjusted basis of shares in the 
                                hands of the shareholder shall 
                                be increased by the amount of 
                                the deduction allowable under 
                                section 1203(a) as provided in 
                                subclauses (II) and (III).
                                  ``(II) Allocation of basis 
                                increase for distributions made 
                                during taxable year.--For any 
                                taxable year of a real estate 
                                investment trust for which an 
                                election is in effect under 
                                section 1203, in the case of a 
                                distribution made with respect 
                                to shares during such taxable 
                                year of amounts attributable to 
                                the deduction allowable under 
                                section 1203(a), the adjusted 
                                basis of such shares shall be 
                                increased by the amount of such 
                                distributions.
                                  ``(III) Allocation of 
                                excess.--If the deduction 
                                allowable under section 1203(a) 
                                for a taxable year exceeds the 
                                amount of distributions 
                                described in subclause (II), 
                                the excess shall be allocated 
                                to every shareholder of the 
                                real estate investment trust at 
                                the close of the trust's 
                                taxable year in the same manner 
                                as if a distribution of such 
                                excess were made with respect 
                                to such shares.
                                  ``(IV) Designations.--To the 
                                extent provided in regulations, 
                                a real estate investment trust 
                                shall designate the amounts 
                                described in subclauses (II) 
                                and (III) in a manner similar 
                                to the designations provided 
                                with respect to capital gains 
                                described in subparagraphs (C) 
                                and (D).
                                  ``(V) Definitions.--As used 
                                in this subparagraph, the terms 
                                `share' and `shareholder' shall 
                                include beneficial interests 
                                and holders of beneficial 
                                interests, respectively.
                          ``(iii) Earnings and profits 
                        deduction for qualified timber gains.--
                        The deduction allowable under section 
                        1203(a) for a taxable year shall be 
                        allowed as a deduction in computing the 
                        earnings and profits of the real estate 
                        investment trust for such taxable year. 
                        The earnings and profits of any such 
                        shareholder which is a corporation 
                        shall be appropriately adjusted in 
                        accordance with regulations prescribed 
                        by the Secretary.''.
  (g) Loss Attributable to Basis Adjustment for Deduction for 
Qualified Timber Gain of Real Estate Investment Trusts.--
          (1) Section 857(b)(8) is amended by redesignating 
        subparagraphs (B) and (C) as subparagraphs (C) and (D), 
        respectively, and by inserting after subparagraph (A) 
        the following new subparagraph:
                  ``(B) Loss attributable to basis adjustment 
                for deduction for qualified timber gain.--If--
                          ``(i) a shareholder of a real estate 
                        investment trust receives a basis 
                        adjustment provided under subsection 
                        (b)(3)(G)(ii), and
                          ``(ii) the taxpayer has held such 
                        share or interest for 6 months or less,
                then any loss on the sale or exchange of such 
                share or interest shall, to the extent of the 
                amount described in clause (i), be 
                disallowed.''.
          (2) Subparagraph (D) of section 857(b)(8), as 
        redesignated by paragraph (1), is amended by striking 
        ``subparagraph (A)'' and inserting ``subparagraphs (A) 
        and (B)''.
  (h) Conforming Amendments.--
          (1) Subparagraph (B) of section 172(d)(2) is amended 
        to read as follows:
                  ``(B) the exclusion under section 1202, and 
                the deduction under section 1203, shall not be 
                allowed.''.
          (2) Paragraph (4) of section 642(c) is amended by 
        striking the first sentence and inserting ``To the 
        extent that the amount otherwise allowable as a 
        deduction under this subsection consists of gain 
        described in section 1202(a) or qualified timber gain 
        (as defined in section 1203(b)), proper adjustment 
        shall be made for any exclusion allowable to the estate 
        or trust under section 1202 and for any deduction 
        allowable to the estate or trust under section 1203.''
          (3) Paragraph (3) of section 643(a) is amended by 
        striking the last sentence and inserting ``The 
        exclusion under section 1202 and the deduction under 
        section 1203 shall not be taken into account.''.
          (4) Subparagraph (C) of section 643(a)(6) is amended 
        to read as follows:
                  ``(C) Paragraph (3) shall not apply to a 
                foreign trust. In the case of such a trust--
                          ``(i) there shall be included gains 
                        from the sale or exchange of capital 
                        assets, reduced by losses from such 
                        sales or exchanges to the extent such 
                        losses do not exceed gains from such 
                        sales or exchanges, and
                          ``(ii) the deduction under section 
                        1203 shall not be taken into 
                        account.''.
          (5) Paragraph (4) of section 691(c) is amended by 
        inserting ``1203,'' after ``1202,''.
          (6) Paragraph (2) of section 871(a) is amended by 
        inserting ``or 1203,'' after ``1202,''.
          (7) The table of sections for part I of subchapter P 
        of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 1203. Deduction for qualified timber gain.''.

  (i) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 1552. EXCISE TAX NOT APPLICABLE TO SECTION 1203 DEDUCTION OF REAL 
                    ESTATE INVESTMENT TRUSTS.

  (a) In General.--
          (1) Ordinary income.--Subparagraph (B) of section 
        4981(e)(1) is amended to read as follows:
                  ``(B) by not taking into account--
                          ``(i) any gain or loss from the sale 
                        or exchange of capital assets 
                        (determined without regard to any 
                        reduction that would be applied for 
                        purposes of section 857(b)(3)(G)(i)), 
                        and
                          ``(ii) any deduction allowable under 
                        section 1203, and''.
          (2) Capital gain net income.--Section 4981(e)(2) is 
        amended by adding at the end the following new 
        subparagraph:
                  ``(D) Qualified timber gain.--The amount 
                determined under subparagraph (A) shall be 
                determined without regard to any reduction that 
                would be applied for purposes of section 
                857(b)(3)(G)(i) but shall be reduced for any 
                deduction allowable under section 1203 for such 
                calendar year.''.
  (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 1553. TIMBER REIT MODERNIZATION.

  (a) In General.--Section 856(c)(5) is amended by adding after 
subparagraph (G) the following new subparagraph:
                  ``(H) Treatment of timber gains.--
                          ``(i) In general.--Gain from the sale 
                        of real property described in paragraph 
                        (2)(D) and (3)(C) shall include gain 
                        which is--
                                  ``(I) recognized by an 
                                election under section 631(a) 
                                from timber owned by the real 
                                estate investment trust, the 
                                cutting of which is provided by 
                                a taxable REIT subsidiary of 
                                the real estate investment 
                                trust;
                                  ``(II) recognized under 
                                section 631(b); or
                                  ``(III) income which would 
                                constitute gain under subclause 
                                (I) or (II) but for the failure 
                                to meet the 1-year holding 
                                period requirement.
                          ``(ii) Special rules.--
                                  ``(I) For purposes of this 
                                subtitle, cut timber, the gain 
                                of which is recognized by a 
                                real estate investment trust 
                                pursuant to an election under 
                                section 631(a) described in 
                                clause (i)(I) or so much of 
                                clause (i)(III) as relates to 
                                clause (i)(I), shall be deemed 
                                to be sold to the taxable REIT 
                                subsidiary of the real estate 
                                investment trust on the first 
                                day of the taxable year.
                                  ``(II) For purposes of this 
                                subtitle, income described in 
                                this subparagraph shall not be 
                                treated as gain from the sale 
                                of property described in 
                                section 1221(a)(1).
                          ``(iii) Termination.--This 
                        subparagraph shall not apply to 
                        dispositions after the termination 
                        date.''.
  (b) Termination Date.--Subsection (c) of section 856 is 
amended by adding at the end the following new paragraph:
          ``(8) Termination date.--For purposes of this 
        subsection, the term `termination date' means the last 
        day of the first taxable year beginning after the date 
        of the enactment of this paragraph.''.
  (c) Effective Date.--The amendments made by subsection (a) 
shall apply to dispositions in taxable years beginning after 
the date of the enactment of this Act.

SEC. 1554. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.

  (a) In General.--Section 856(c)(2) is amended by striking 
``and'' at the end of subparagraph (G), by inserting ``and'' at 
the end of subparagraph (H), and by adding after subparagraph 
(H) the following new subparagraph:
                  ``(I) mineral royalty income earned in the 
                first taxable year beginning after the date of 
                the enactment of this subparagraph from real 
                property owned by a timber real estate 
                investment trust held, or once held, in 
                connection with the trade or business of 
                producing timber by such real estate investment 
                trust;''.
  (b) Timber Real Estate Investment Trust.--Section 856(c)(5), 
as amended by this Act, is amended by adding after subparagraph 
(H) the following new subparagraph:
                  ``(I) Timber real estate investment trust.--
                The term `timber real estate investment trust' 
                means a real estate investment trust in which 
                more than 50 percent in value of its total 
                assets consists of real property held in 
                connection with the trade or business of 
                producing timber.''.
  (c) Effective Date.--The amendments by this section shall 
apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 1555. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST FOR 
                    TIMBER REITS.

  (a) In General.--Section 856(c)(4)(B)(ii) is amended by 
inserting ``(in the case of a quarter which closes on or before 
the termination date, 25 percent in the case of a timber real 
estate investment trust)'' after ``not more than 20 percent of 
the value of its total assets is represented by securities of 
one or more taxable REIT subsidiaries''.
  (b) Effective Date.--The amendment made by this section shall 
apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 1556. SAFE HARBOR FOR TIMBER PROPERTY.

  (a) In General.--Section 857(b)(6) (relating to income from 
prohibited transactions) is amended by adding at the end the 
following new subparagraph:
                  ``(G) Special rules for sales to qualified 
                organizations.--
                          ``(i) In general.--In the case of 
                        sale of a real estate asset (as defined 
                        in section 856(c)(5)(B)) to a qualified 
                        organization (as defined in section 
                        170(h)(3)) exclusively for conservation 
                        purposes (within the meaning of section 
                        170(h)(1)(C)), subparagraph (D) shall 
                        be applied--
                                  ``(I) by substituting `2 
                                years' for `4 years' in clause 
                                (i), and
                                  ``(II) by substituting `2-
                                year period' for `4-year 
                                period' in clauses (ii) and 
                                (iii).
                          ``(ii) Termination.--This 
                        subparagraph shall not apply to sales 
                        after the termination date.''.
  (b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is 
amended by inserting ``or, in the case of a sale on or before 
the termination date, a taxable REIT subsidiary'' after 
``independent contractor (as defined in section 856(d)(3)) from 
whom the trust itself does not derive or receive any income''.
  (c) Sales That Are Not Prohibited Transactions.--Section 
857(b)(6), as amended by subsection (a), is amended by adding 
at the end the following new subparagraph:
                  ``(H) Sales of property that are not a 
                prohibited transaction.--In the case of a sale 
                on or before the termination date, the sale of 
                property which is not a prohibited transaction 
                through application of subparagraph (D) shall 
                be considered property held for investment or 
                for use in a trade or business and not property 
                described in section 1221(a)(1) for all 
                purposes of this subtitle.''.
  (d) Termination Date.--Section 857(b)(6), as amended by 
subsections (a) and (c), is amended by adding at the end the 
following new subparagraph:
                  ``(I) Termination date.--For purposes of this 
                paragraph, the term `termination date' means 
                the last day of the first taxable year 
                beginning after the date of the enactment of 
                this subparagraph.''.
  (e) Effective Date.--The amendments made by this section 
shall apply to dispositions in taxable years beginning after 
the date of the enactment of this Act.

                         PART II--EXXON VALDEZ

SEC. 1557. INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION WITH THE 
                    EXXON VALDEZ LITIGATION.

  (a) Income Averaging of Amounts Received From the Exxon 
Valdez Litigation.--For purposes of section 1301 of the 
Internal Revenue Code of 1986--
          (1) any qualified taxpayer who receives any qualified 
        settlement income in any taxable year shall be treated 
        as engaged in a fishing business (determined without 
        regard to the commercial nature of the business), and
          (2) such qualified settlement income shall be treated 
        as income attributable to such a fishing business for 
        such taxable year.
  (b) Contributions of Amounts Received to Retirement 
Accounts.--
          (1) In general.--Any qualified taxpayer who receives 
        qualified settlement income during the taxable year 
        may, at any time before the end of the taxable year in 
        which such income was received, make one or more 
        contributions to an eligible retirement plan of which 
        such qualified taxpayer is a beneficiary in an 
        aggregate amount not to exceed the lesser of--
                  (A) $100,000 (reduced by the amount of 
                qualified settlement income contributed to an 
                eligible retirement plan in prior taxable years 
                pursuant to this subsection), or
                  (B) the amount of qualified settlement income 
                received by the individual during the taxable 
                year.
          (2) Time when contributions deemed made.--For 
        purposes of paragraph (1), a qualified taxpayer shall 
        be deemed to have made a contribution to an eligible 
        retirement plan on the last day of the taxable year in 
        which such income is received if the contribution is 
        made on account of such taxable year and is made not 
        later than the time prescribed by law for filing the 
        return for such taxable year (not including extensions 
        thereof).
          (3) Treatment of contributions to eligible retirement 
        plans.--For purposes of the Internal Revenue Code of 
        1986, if a contribution is made pursuant to paragraph 
        (1) with respect to qualified settlement income, then--
                  (A) except as provided in paragraph (4)--
                          (i) to the extent of such 
                        contribution, the qualified settlement 
                        income shall not be included in taxable 
                        income, and
                          (ii) for purposes of section 72 of 
                        such Code, such contribution shall not 
                        be considered to be investment in the 
                        contract,
                  (B) the qualified taxpayer shall, to the 
                extent of the amount of the contribution, be 
                treated--
                          (i) as having received the qualified 
                        settlement income--
                                  (I) in the case of a 
                                contribution to an individual 
                                retirement plan (as defined 
                                under section 7701(a)(37) of 
                                such Code), in a distribution 
                                described in section 408(d)(3) 
                                of such Code, and
                                  (II) in the case of any other 
                                eligible retirement plan, in an 
                                eligible rollover distribution 
                                (as defined under section 
                                402(f)(2) of such Code), and
                          (ii) as having transferred the amount 
                        to the eligible retirement plan in a 
                        direct trustee to trustee transfer 
                        within 60 days of the distribution,
                  (C) section 408(d)(3)(B) of the Internal 
                Revenue Code of 1986 shall not apply with 
                respect to amounts treated as a rollover under 
                this paragraph, and
                  (D) section 408A(c)(3)(B) of the Internal 
                Revenue Code of 1986 shall not apply with 
                respect to amounts contributed to a Roth IRA 
                (as defined under section 408A(b) of such Code) 
                or a designated Roth contribution to an 
                applicable retirement plan (within the meaning 
                of section 402A of such Code) under this 
                paragraph.
          (4) Special rule for roth iras and roth 401(k)s.--For 
        purposes of the Internal Revenue Code of 1986, if a 
        contribution is made pursuant to paragraph (1) with 
        respect to qualified settlement income to a Roth IRA 
        (as defined under section 408A(b) of such Code) or as a 
        designated Roth contribution to an applicable 
        retirement plan (within the meaning of section 402A of 
        such Code), then--
                  (A) the qualified settlement income shall be 
                includible in taxable income, and
                  (B) for purposes of section 72 of such Code, 
                such contribution shall be considered to be 
                investment in the contract.
          (5) Eligible retirement plan.--For purpose of this 
        subsection, the term ``eligible retirement plan'' has 
        the meaning given such term under section 402(c)(8)(B) 
        of the Internal Revenue Code of 1986.
  (c) Treatment of Qualified Settlement Income Under Employment 
Taxes.--
          (1) SECA.--For purposes of chapter 2 of the Internal 
        Revenue Code of 1986 and section 211 of the Social 
        Security Act, no portion of qualified settlement income 
        received by a qualified taxpayer shall be treated as 
        self-employment income.
          (2) FICA.--For purposes of chapter 21 of the Internal 
        Revenue Code of 1986 and section 209 of the Social 
        Security Act, no portion of qualified settlement income 
        received by a qualified taxpayer shall be treated as 
        wages.
  (d) Qualified Taxpayer.--For purposes of this section, the 
term ``qualified taxpayer'' means--
          (1) any individual who is a plaintiff in the civil 
        action In re Exxon Valdez, No. 89-095-CV (HRH) 
        (Consolidated) (D. Alaska); or
          (2) any individual who is a beneficiary of the estate 
        of such a plaintiff who--
                  (A) acquired the right to receive qualified 
                settlement income from that plaintiff; and
                  (B) was the spouse or an immediate relative 
                of that plaintiff.
  (e) Qualified Settlement Income.--For purposes of this 
section, the term ``qualified settlement income'' means any 
interest and punitive damage awards which are--
          (1) otherwise includible in taxable income, and
          (2) received (whether as lump sums or periodic 
        payments) in connection with the civil action In re 
        Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D. 
        Alaska) (whether pre- or post-judgment and whether 
        related to a settlement or judgment).

                     Subtitle E--Revenue Provisions


SEC. 1561. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC 
                    PRODUCTION OF OIL, GAS, OR A PRIMARY PRODUCTS 
                    THEREOF.

  (a) Denial of Deduction for Major Integrated Oil Companies 
for Income Attributable to Domestic Production of Oil, Gas, or 
Primary Products Thereof.--
          (1) In general.--Subparagraph (B) of section 
        199(c)(4) (relating to exceptions) is amended by 
        striking ``or'' at the end of clause (ii), by striking 
        the period at the end of clause (iii) and inserting ``, 
        or'', and by inserting after clause (iii) the following 
        new clause:
                          ``(iv) in the case of any major 
                        integrated oil company (as defined in 
                        section 167(h)(5)(B)), the production, 
                        refining, processing, transportation, 
                        or distribution of oil, gas, or any 
                        primary product thereof during any 
                        taxable year described in section 
                        167(h)(5)(B).''.
          (2) Primary product.--Section 199(c)(4)(B) is amended 
        by adding at the end the following flush sentence:
                ``For purposes of clause (iv), the term 
                `primary product' has the same meaning as when 
                used in section 927(a)(2)(C), as in effect 
                before its repeal.''.
  (b) Limitation on Oil Related Qualified Production Activities 
Income for Taxpayers Other Than Major Integrated Oil 
Companies.--
          (1) In general.--Section 199(d) is amended by 
        redesignating paragraph (9) as paragraph (10) and by 
        inserting after paragraph (8) the following new 
        paragraph:
          ``(9) Special rule for taxpayers with oil related 
        qualified production activities income.--
                  ``(A) In general.--If a taxpayer (other than 
                a major integrated oil company (as defined in 
                section 167(h)(5)(B))) has oil related 
                qualified production activities income for any 
                taxable year beginning after 2009, the amount 
                of the deduction under subsection (a) shall be 
                reduced by 3 percent of the least of--
                          ``(i) the oil related qualified 
                        production activities income of the 
                        taxpayer for the taxable year,
                          ``(ii) the qualified production 
                        activities income of the taxpayer for 
                        the taxable year, or
                          ``(iii) taxable income (determined 
                        without regard to this section).
                  ``(B) Oil related qualified production 
                activities income.--The term `oil related 
                qualified production activities income' means 
                for any taxable year the qualified production 
                activities income which is attributable to the 
                production, refining, processing, 
                transportation, or distribution of oil, gas, or 
                any primary product thereof during such taxable 
                year.''.
          (2) Conforming amendment.--Section 199(d)(2) 
        (relating to application to individuals) is amended by 
        striking ``subsection (a)(1)(B)'' and inserting 
        ``subsections (a)(1)(B) and (d)(9)(A)(iii)''.
  (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2007.

SEC. 1562. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN OIL AND 
                    GAS EXTRACTION INCOME AND FOREIGN OIL RELATED 
                    INCOME FOR PURPOSES OF THE FOREIGN TAX CREDIT.

  (a) In General.--Subsections (a) and (b) of section 907 
(relating to special rules in case of foreign oil and gas 
income) are amended to read as follows:
  ``(a) Reduction in Amount Allowed as Foreign Tax Under 
Section 901.--In applying section 901, the amount of any 
foreign oil and gas taxes paid or accrued (or deemed to have 
been paid) during the taxable year which would (but for this 
subsection) be taken into account for purposes of section 901 
shall be reduced by the amount (if any) by which the amount of 
such taxes exceeds the product of--
          ``(1) the amount of the combined foreign oil and gas 
        income for the taxable year,
          ``(2) multiplied by--
                  ``(A) in the case of a corporation, the 
                percentage which is equal to the highest rate 
                of tax specified under section 11(b), or
                  ``(B) in the case of an individual, a 
                fraction the numerator of which is the tax 
                against which the credit under section 901(a) 
                is taken and the denominator of which is the 
                taxpayer's entire taxable income.
  ``(b) Combined Foreign Oil and Gas Income; Foreign Oil and 
Gas Taxes.--For purposes of this section--
          ``(1) Combined foreign oil and gas income.--The term 
        `combined foreign oil and gas income' means, with 
        respect to any taxable year, the sum of--
                  ``(A) foreign oil and gas extraction income, 
                and
                  ``(B) foreign oil related income.
          ``(2) Foreign oil and gas taxes.--The term `foreign 
        oil and gas taxes' means, with respect to any taxable 
        year, the sum of--
                  ``(A) oil and gas extraction taxes, and
                  ``(B) any income, war profits, and excess 
                profits taxes paid or accrued (or deemed to 
                have been paid or accrued under section 902 or 
                960) during the taxable year with respect to 
                foreign oil related income (determined without 
                regard to subsection (c)(4)) or loss which 
                would be taken into account for purposes of 
                section 901 without regard to this section.''.
  (b) Recapture of Foreign Oil and Gas Losses.--Paragraph (4) 
of section 907(c) (relating to recapture of foreign oil and gas 
extraction losses by recharacterizing later extraction income) 
is amended to read as follows:
          ``(4) Recapture of foreign oil and gas losses by 
        recharacterizing later combined foreign oil and gas 
        income.--
                  ``(A) In general.--The combined foreign oil 
                and gas income of a taxpayer for a taxable year 
                (determined without regard to this paragraph) 
                shall be reduced--
                          ``(i) first by the amount determined 
                        under subparagraph (B), and
                          ``(ii) then by the amount determined 
                        under subparagraph (C).
                The aggregate amount of such reductions shall 
                be treated as income (from sources without the 
                United States) which is not combined foreign 
                oil and gas income.
                  ``(B) Reduction for pre-2008 foreign oil 
                extraction losses.--The reduction under this 
                paragraph shall be equal to the lesser of--
                          ``(i) the foreign oil and gas 
                        extraction income of the taxpayer for 
                        the taxable year (determined without 
                        regard to this paragraph), or
                          ``(ii) the excess of--
                                  ``(I) the aggregate amount of 
                                foreign oil extraction losses 
                                for preceding taxable years 
                                beginning after December 31, 
                                1982, and before January 1, 
                                2008, over
                                  ``(II) so much of such 
                                aggregate amount as was 
                                recharacterized under this 
                                paragraph (as in effect before 
                                and after the date of the 
                                enactment of the Clean 
                                Renewable Energy and 
                                Conservation Tax Act of 2007) 
                                for preceding taxable years 
                                beginning after December 31, 
                                1982.
                  ``(C) Reduction for post-2007 foreign oil and 
                gas losses.--The reduction under this paragraph 
                shall be equal to the lesser of--
                          ``(i) the combined foreign oil and 
                        gas income of the taxpayer for the 
                        taxable year (determined without regard 
                        to this paragraph), reduced by an 
                        amount equal to the reduction under 
                        subparagraph (A) for the taxable year, 
                        or
                          ``(ii) the excess of--
                                  ``(I) the aggregate amount of 
                                foreign oil and gas losses for 
                                preceding taxable years 
                                beginning after December 31, 
                                2007, over
                                  ``(II) so much of such 
                                aggregate amount as was 
                                recharacterized under this 
                                paragraph for preceding taxable 
                                years beginning after December 
                                31, 2007.
                  ``(D) Foreign oil and gas loss defined.--
                          ``(i) In general.--For purposes of 
                        this paragraph, the term `foreign oil 
                        and gas loss' means the amount by 
                        which--
                                  ``(I) the gross income for 
                                the taxable year from sources 
                                without the United States and 
                                its possessions (whether or not 
                                the taxpayer chooses the 
                                benefits of this subpart for 
                                such taxable year) taken into 
                                account in determining the 
                                combined foreign oil and gas 
                                income for such year, is 
                                exceeded by
                                  ``(II) the sum of the 
                                deductions properly apportioned 
                                or allocated thereto.
                          ``(ii) Net operating loss deduction 
                        not taken into account.--For purposes 
                        of clause (i), the net operating loss 
                        deduction allowable for the taxable 
                        year under section 172(a) shall not be 
                        taken into account.
                          ``(iii) Expropriation and casualty 
                        losses not taken into account.--For 
                        purposes of clause (i), there shall not 
                        be taken into account--
                                  ``(I) any foreign 
                                expropriation loss (as defined 
                                in section 172(h) (as in effect 
                                on the day before the date of 
                                the enactment of the Revenue 
                                Reconciliation Act of 1990)) 
                                for the taxable year, or
                                  ``(II) any loss for the 
                                taxable year which arises from 
                                fire, storm, shipwreck, or 
                                other casualty, or from theft,
                        to the extent such loss is not 
                        compensated for by insurance or 
                        otherwise.
                          ``(iv) Foreign oil extraction loss.--
                        For purposes of subparagraph 
                        (B)(ii)(I), foreign oil extraction 
                        losses shall be determined under this 
                        paragraph as in effect on the day 
                        before the date of the enactment of the 
                        Clean Renewable Energy and Conservation 
                        Tax Act of 2007.''.
  (c) Carryback and Carryover of Disallowed Credits.--Section 
907(f) (relating to carryback and carryover of disallowed 
credits) is amended--
          (1) by striking ``oil and gas extraction taxes'' each 
        place it appears and inserting ``foreign oil and gas 
        taxes'', and
          (2) by adding at the end the following new paragraph:
          ``(4) Transition rules for pre-2008 and 2008 
        disallowed credits.--
                  ``(A) Pre-2008 credits.--In the case of any 
                unused credit year beginning before January 1, 
                2008, this subsection shall be applied to any 
                unused oil and gas extraction taxes carried 
                from such unused credit year to a year 
                beginning after December 31, 2007--
                          ``(i) by substituting `oil and gas 
                        extraction taxes' for `foreign oil and 
                        gas taxes' each place it appears in 
                        paragraphs (1), (2), and (3), and
                          ``(ii) by computing, for purposes of 
                        paragraph (2)(A), the limitation under 
                        subparagraph (A) for the year to which 
                        such taxes are carried by substituting 
                        `foreign oil and gas extraction income' 
                        for `foreign oil and gas income' in 
                        subsection (a).
                  ``(B) 2008 credits.--In the case of any 
                unused credit year beginning in 2008, the 
                amendments made to this subsection by the Clean 
                Renewable Energy and Conservation Tax Act of 
                2007 shall be treated as being in effect for 
                any preceding year beginning before January 1, 
                2008, solely for purposes of determining how 
                much of the unused foreign oil and gas taxes 
                for such unused credit year may be deemed paid 
                or accrued in such preceding year.''.
  (d) Conforming Amendment.--Section 6501(i) is amended by 
striking ``oil and gas extraction taxes'' and inserting 
``foreign oil and gas taxes''.
  (e) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2007.

SEC. 1563. SEVEN-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
                    EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL 
                    COMPANIES.

  (a) In General.--Subparagraph (A) of section 167(h)(5) 
(relating to special rule for major integrated oil companies) 
is amended by striking ``5-year'' and inserting ``7-year''.
  (b) Effective Date.--The amendment made by this section shall 
apply to amounts paid or incurred after the date of the 
enactment of this Act.

SEC. 1564. BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES 
                    TRANSACTIONS.

  (a) In General.--
          (1) Broker reporting for securities transactions.--
        Section 6045 (relating to returns of brokers) is 
        amended by adding at the end the following new 
        subsection:
  ``(g) Additional Information Required in the Case of 
Securities Transactions.--
          ``(1) In general.--If a broker is otherwise required 
        to make a return under subsection (a) with respect to 
        the gross proceeds of the sale of a covered security, 
        the broker shall include in such return the information 
        described in paragraph (2).
          ``(2) Additional information required.--
                  ``(A) In general.--The information required 
                under paragraph (1) to be shown on a return 
                with respect to a covered security of a 
                customer shall include the customer's adjusted 
                basis in such security and whether any gain or 
                loss with respect to such security is long-term 
                or short-term (within the meaning of section 
                1222).
                  ``(B) Determination of adjusted basis.--For 
                purposes of subparagraph (A)--
                          ``(i) In general.--The customer's 
                        adjusted basis shall be determined--
                                  ``(I) in the case of any 
                                stock (other than any stock in 
                                an open-end fund), in 
                                accordance with the first-in 
                                first-out method unless the 
                                customer notifies the broker by 
                                means of making an adequate 
                                identification of the stock 
                                sold or transferred,
                                  ``(II) in the case of any 
                                stock in an open-end fund 
                                acquired before January 1, 
                                2011, in accordance with any 
                                acceptable method under section 
                                1012 with respect to the 
                                account in which such interest 
                                is held,
                                  ``(III) in the case of any 
                                stock in an open-end fund 
                                acquired after December 31, 
                                2010, in accordance with the 
                                broker's default method unless 
                                the customer notifies the 
                                broker that he elects another 
                                acceptable method under section 
                                1012 with respect to the 
                                account in which such interest 
                                is held, and
                                  ``(IV) in any other case, 
                                under the method for making 
                                such determination under 
                                section 1012.
                          ``(ii) Exception for wash sales.--
                        Except as otherwise provided by the 
                        Secretary, the customer's adjusted 
                        basis shall be determined without 
                        regard to section 1091 (relating to 
                        loss from wash sales of stock or 
                        securities) unless the transactions 
                        occur in the same account with respect 
                        to identical securities.
          ``(3) Covered security.--For purposes of this 
        subsection--
                  ``(A) In general.--The term `covered 
                security' means any specified security acquired 
                on or after the applicable date if such 
                security--
                          ``(i) was acquired through a 
                        transaction in the account in which 
                        such security is held, or
                          ``(ii) was transferred to such 
                        account from an account in which such 
                        security was a covered security, but 
                        only if the broker received a statement 
                        under section 6045A with respect to the 
                        transfer.
                  ``(B) Specified security.--The term 
                `specified security' means--
                          ``(i) any share of stock in a 
                        corporation,
                          ``(ii) any note, bond, debenture, or 
                        other evidence of indebtedness,
                          ``(iii) any commodity, or contract or 
                        derivative with respect to such 
                        commodity, if the Secretary determines 
                        that adjusted basis reporting is 
                        appropriate for purposes of this 
                        subsection, and
                          ``(iv) any other financial instrument 
                        with respect to which the Secretary 
                        determines that adjusted basis 
                        reporting is appropriate for purposes 
                        of this subsection.
                  ``(C) Applicable date.--The term `applicable 
                date' means--
                          ``(i) January 1, 2009, in the case of 
                        any specified security which is stock 
                        in a corporation, and
                          ``(ii) January 1, 2011, or such later 
                        date determined by the Secretary in the 
                        case of any other specified security.
          ``(4) Open-end fund.--For purposes of this 
        subsection, the term `open-end fund' means a regulated 
        investment company (as defined in section 851) which is 
        offering for sale or has outstanding any redeemable 
        security of which it is the issuer and the shares of 
        which are not traded on an established securities 
        exchange.
          ``(5) Treatment of s corporations.--In the case of 
        the sale of a covered security acquired by an S 
        corporation (other than a financial institution) after 
        December 31, 2010, such S corporation shall be treated 
        in the same manner as a partnership for purposes of 
        this section.
          ``(6) Special rules for short sales.--
                  ``(A) In general.--Notwithstanding subsection 
                (a), in the case of a short sale under section 
                1233, reporting under this section shall be 
                made for the year in which such sale is closed.
                  ``(B) Exception for constructive sales.--
                Subparagraph (A) shall not apply to any short 
                sale which results in a constructive sale under 
                section 1259 with respect to property held in 
                the account in which the short sale is entered 
                into.''.
          (2) Broker information required with respect to 
        options.--Section 6045, as amended by subsection (a), 
        is amended by adding at the end the following new 
        subsection:
  ``(h) Application to Options on Securities.--
          ``(1) Exercise of option.--For purposes of this 
        section, in the case of any exercise of an option on a 
        covered security where the option was granted or 
        acquired in the same account as the covered security, 
        the amount received or paid with respect to such 
        exercise shall be treated as an adjustment to gross 
        proceeds or as an adjustment to basis, as the case may 
        be.
          ``(2) Lapse or closing transaction.--For purposes of 
        this section, in the case of the lapse (or closing 
        transaction (as defined in section 1234(b)(2)(A))) of 
        an option on a specified security where the taxpayer is 
        the grantor of the option, this section shall apply as 
        if the premium received for such option were gross 
        proceeds received on the date of the lapse or closing 
        transaction, and the cost (if any) of the closing 
        transaction shall be taken into account as adjusted 
        basis. In the case of an option on a specified security 
        where the taxpayer is the grantee of such option, this 
        section shall apply as if the grantee received gross 
        proceeds of zero on the date of the lapse.
          ``(3) Prospective application.--Paragraphs (1) and 
        (2) shall not apply to any option which is granted or 
        acquired before January 1, 2011.
          ``(4) Definitions.--For purposes of this subsection, 
        the terms `covered security' and `specified security' 
        shall have the meanings given such terms in subsection 
        (g)(3).''.
          (3) Extension of period for statements sent to 
        customers.--
                  (A) In general.--Subsection (b) of section 
                6045 is amended by striking ``January 31'' and 
                inserting ``February 15 (January 31 in the case 
                of returns for calendar years before 2010)''.
                  (B) Statements related to substitute 
                payments.--Subsection (d) of section 6045 is 
                amended--
                          (i) by striking ``at such time and'', 
                        and
                          (ii) by inserting after ``other 
                        item.'' the following new sentence: 
                        ``In the case of a payment made during 
                        any calendar year after 2009, the 
                        written statement required under the 
                        preceding sentence shall be furnished 
                        on or before February 15 of the year 
                        following the calendar year in which 
                        the payment was made.''.
                  (C) Other statements.--Subsection (b) of 
                section 6045 is amended by adding at the end 
                the following: ``In the case of a consolidated 
                reporting statement (as defined in regulations) 
                with respect to any account which includes the 
                statement required by this subsection, any 
                statement which would otherwise be required to 
                be furnished on or before January 31 of a 
                calendar year after 2010 under section 6042(c), 
                6049(c)(2)(A), or 6050N(b) with respect to any 
                item in such account shall instead be required 
                to be furnished on or before February 15 of 
                such calendar year if furnished as part of such 
                consolidated reporting statement.''.
  (b) Determination of Basis of Certain Securities on Account 
by Account Method.--Section 1012 (relating to basis of 
property-cost) is amended--
          (1) by striking ``The basis of property'' and 
        inserting the following:
  ``(a) In General.--The basis of property'',
          (2) by striking ``The cost of real property'' and 
        inserting the following:
  ``(b) Special Rule for Apportioned Real Estate Taxes.--The 
cost of real property'', and
          (3) by adding at the end the following new 
        subsection:
  ``(c) Determinations by Account.--
          ``(1) In general.--In the case of the sale, exchange, 
        or other disposition of a specified security on or 
        after the applicable date, the conventions prescribed 
        by regulations under this section shall be applied on 
        an account by account basis.
          ``(2) Application to open-end funds.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), any stock in an open-end fund 
                acquired before January 1, 2009, shall be 
                treated as a separate account from any such 
                stock acquired on or after such date.
                  ``(B) Election by open-end fund for treatment 
                as single account.--If an open-end fund elects 
                (at such time and in such form and manner as 
                the Secretary may prescribe) to have this 
                subparagraph apply with respect to one or more 
                of its stockholders--
                          ``(i) subparagraph (A) shall not 
                        apply with respect to any stock in such 
                        fund held by such stockholders, and
                          ``(ii) all stock in such fund which 
                        is held by such stockholders shall be 
                        treated as covered securities described 
                        in section 6045(g)(3) without regard to 
                        the date of the acquisition of such 
                        stock.
                A rule similar to the rule of the preceding 
                sentence shall apply with respect to a broker 
                holding stock in an open-end fund as a nominee.
          ``(3) Definitions.--For purposes of this section, the 
        terms `specified security', `applicable date', and 
        `open-end fund' shall have the meaning given such terms 
        in section 6045(g).''.
  (c) Information by Transferors To Aid Brokers.--
          (1) In general.--Subpart B of part III of subchapter 
        A of chapter 61 is amended by inserting after section 
        6045 the following new section:

``SEC. 6045A. INFORMATION REQUIRED IN CONNECTION WITH TRANSFERS OF 
                    COVERED SECURITIES TO BROKERS.

  ``(a) Furnishing of Information.--Every applicable person 
which transfers to a broker (as defined in section 6045(c)(1)) 
a security which is a covered security (as defined in section 
6045(g)(3)) in the hands of such applicable person shall 
furnish to such broker a written statement in such manner and 
setting forth such information as the Secretary may by 
regulations prescribe for purposes of enabling such broker to 
meet the requirements of section 6045(g).
  ``(b) Applicable Person.--For purposes of subsection (a), the 
term `applicable person' means--
          ``(1) any broker (as defined in section 6045(c)(1)), 
        and
          ``(2) any other person as provided by the Secretary 
        in regulations.
  ``(c) Time for Furnishing Statement.--Any statement required 
by subsection (a) shall be furnished not later than the earlier 
of--
          ``(1) 45 days after the date of the transfer 
        described in subsection (a), or
          ``(2) January 15 of the year following the calendar 
        year during which such transfer occurred.''.
          (2) Assessable penalties.--Paragraph (2) of section 
        6724(d) (defining payee statement) is amended by 
        redesignating subparagraphs (I) through (CC) as 
        subparagraphs (J) through (DD), respectively, and by 
        inserting after subparagraph (H) the following new 
        subparagraph:
                  ``(I) section 6045A (relating to information 
                required in connection with transfers of 
                covered securities to brokers).''.
          (3) Clerical amendment.--The table of sections for 
        subpart B of part III of subchapter A of chapter 61 is 
        amended by inserting after the item relating to section 
        6045 the following new item:

``Sec. 6045A. Information required in connection with transfers of 
          covered securities to brokers.''.

  (d) Additional Issuer Information to Aid Brokers.--
          (1) In general.--Subpart B of part III of subchapter 
        A of chapter 61 of the Internal Revenue Code of 1986, 
        as amended by subsection (b), is amended by inserting 
        after section 6045A the following new section:

``SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING BASIS OF SPECIFIED 
                    SECURITIES.

  ``(a) In General.--According to the forms or regulations 
prescribed by the Secretary, any issuer of a specified security 
shall make a return setting forth--
          ``(1) a description of any organizational action 
        which affects the basis of such specified security of 
        such issuer,
          ``(2) the quantitative effect on the basis of such 
        specified security resulting from such action, and
          ``(3) such other information as the Secretary may 
        prescribe.
  ``(b) Time for Filing Return.--Any return required by 
subsection (a) shall be filed not later than the earlier of--
          ``(1) 45 days after the date of the action described 
        in subsection (a), or
          ``(2) January 15 of the year following the calendar 
        year during which such action occurred.
  ``(c) Statements To Be Furnished to Holders of Specified 
Securities or Their Nominees.--According to the forms or 
regulations prescribed by the Secretary, every person required 
to make a return under subsection (a) with respect to a 
specified security shall furnish to the nominee with respect to 
the specified security (or certificate holder if there is no 
nominee) a written statement showing--
          ``(1) the name, address, and phone number of the 
        information contact of the person required to make such 
        return,
          ``(2) the information required to be shown on such 
        return with respect to such security, and
          ``(3) such other information as the Secretary may 
        prescribe.
The written statement required under the preceding sentence 
shall be furnished to the holder on or before January 15 of the 
year following the calendar year during which the action 
described in subsection (a) occurred.
  ``(d) Specified Security.--For purposes of this section, the 
term `specified security' has the meaning given such term by 
section 6045(g)(3)(B). No return shall be required under this 
section with respect to actions described in subsection (a) 
with respect to a specified security which occur before the 
applicable date (as defined in section 6045(g)(3)(C)) with 
respect to such security.
  ``(e) Public Reporting in Lieu of Return.--The Secretary may 
waive the requirements under subsections (a) and (c) with 
respect to a specified security, if the person required to make 
the return under subsection (a) makes publicly available, in 
such form and manner as the Secretary determines necessary to 
carry out the purposes of this section--
          ``(1) the name, address, phone number, and email 
        address of the information contact of such person, and
          ``(2) the information described in paragraphs (1), 
        (2), and (3) of subsection (a).''.
          (2) Assessable penalties.--
                  (A) Subparagraph (B) of section 6724(d)(1) of 
                such Code (defining information return) is 
                amended by redesignating clauses (iv) through 
                (xix) as clauses (v) through (xx), 
                respectively, and by inserting after clause 
                (iii) the following new clause:
                          ``(iv) section 6045B(a) (relating to 
                        returns relating to actions affecting 
                        basis of specified securities),''.
                  (B) Paragraph (2) of section 6724(d) of such 
                Code (defining payee statement), as amended by 
                subsection (c)(2), is amended by redesignating 
                subparagraphs (J) through (DD) as subparagraphs 
                (K) through (EE), respectively, and by 
                inserting after subparagraph (I) the following 
                new subparagraph:
                  ``(J) subsections (c) and (e) of section 
                6045B (relating to returns relating to actions 
                affecting basis of specified securities).''.
          (3) Clerical amendment.--The table of sections for 
        subpart B of part III of subchapter A of chapter 61 of 
        such Code, as amended by subsection (b)(3), is amended 
        by inserting after the item relating to section 6045A 
        the following new item:

``Sec. 6045B. Returns relating to actions affecting basis of specified 
          securities.''.

  (e) Effective Date.--The amendments made by this section 
shall take effect on January 1, 2009.
  (f) Study Regarding Information Returns.--
          (1) In general.--The Secretary of the Treasury shall 
        study the effect and feasibility of delaying the date 
        for furnishing statements under sections 6042(c), 6045, 
        6049(c)(2)(A), and 6050N(b) of the Internal Revenue 
        Code of 1986 until February 15 following the year to 
        which such statements relate.
          (2) Report.--Not later than 6 months after the date 
        of the enactment of this Act, the Secretary of the 
        Treasury shall report to Congress on the results of the 
        study conducted under paragraph (1). Such report shall 
        include the Secretary's findings regarding--
                  (A) the effect on tax administration of such 
                delay, and
                  (B) other administrative or legislative 
                options to improve compliance and ease burdens 
                on taxpayers and brokers with respect to such 
                statements.

SEC. 1565. EXTENSION OF ADDITIONAL 0.2 PERCENT FUTA SURTAX.

  (a) In General.--Section 3301 (relating to rate of tax) is 
amended--
          (1) by striking ``2007'' in paragraph (1) and 
        inserting ``2008'', and
          (2) by striking ``2008'' in paragraph (2) and 
        inserting ``2009''.
  (b) Effective Date.--The amendments made by this section 
shall apply to wages paid after December 31, 2007.

SEC. 1566. TERMINATION OF TREATMENT OF NATURAL GAS DISTRIBUTION LINES 
                    AS 15-YEAR PROPERTY.

  (a) In General.--Section 168(e)(3)(E)(viii) of the Internal 
Revenue Code of 1986 is amended by striking ``January 1, 2011'' 
and inserting ``December 4, 2007''.
  (b) Effective Date.--
          (1) In general.--The amendments made by this section 
        shall apply to property placed in service after 
        December 3, 2007.
          (2) Exception.--The amendments made by this section 
        shall not apply to any property with respect to which 
        the taxpayer or a related party has entered into a 
        binding contract for the construction thereof on or 
        before December 3, 2007, or, in the case of self-
        constructed property, has started construction on or 
        before such date.

SEC. 1567. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

  The percentage under subparagraph (B) of section 401(1) of 
the Tax Increase Prevention and Reconciliation Act of 2005 in 
effect on the date of the enactment of this Act is increased by 
6.25 percentage points.

SEC. 1568. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP 
                    RETURNS.

  (a) Extension of Time Limitation.--Section 6698(a) (relating 
to failure to file partnership returns) is amended by striking 
``5 months'' and inserting ``12 months''.
  (b) Increase in Penalty Amount.--Paragraph (1) of section 
6698(b) is amended by striking ``$50'' and inserting ``$80''.
  (c) Effective Date.--The amendments made by this section 
shall apply to returns required to be filed after the date of 
the enactment of this Act.

                    Subtitle F--Secure Rural Schools


SEC. 1571. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION 
                    PROGRAM.

  (a) Reauthorization of the Secure Rural Schools and Community 
Self-Determination Act of 2000.--The Secure Rural Schools and 
Community Self-Determination Act of 2000 (16 U.S.C. 500 note; 
Public Law 106-393) is amended by striking sections 1 through 
403 and inserting the following:

``SECTION 1. SHORT TITLE.

  ``This Act may be cited as the `Secure Rural Schools and 
Community Self-Determination Act of 2000'.

``SEC. 2. PURPOSES.

  ``The purposes of this Act are--
          ``(1) to stabilize and transition payments to 
        counties to provide funding for schools and roads that 
        supplements other available funds;
          ``(2) to make additional investments in, and create 
        additional employment opportunities through, projects 
        that--
                  ``(A)(i) improve the maintenance of existing 
                infrastructure;
                  ``(ii) implement stewardship objectives that 
                enhance forest ecosystems; and
                  ``(iii) restore and improve land health and 
                water quality;
                  ``(B) enjoy broad-based support; and
                  ``(C) have objectives that may include--
                          ``(i) road, trail, and infrastructure 
                        maintenance or obliteration;
                          ``(ii) soil productivity improvement;
                          ``(iii) improvements in forest 
                        ecosystem health;
                          ``(iv) watershed restoration and 
                        maintenance;
                          ``(v) the restoration, maintenance, 
                        and improvement of wildlife and fish 
                        habitat;
                          ``(vi) the control of noxious and 
                        exotic weeds; and
                          ``(vii) the reestablishment of native 
                        species; and
          ``(3) to improve cooperative relationships among--
                  ``(A) the people that use and care for 
                Federal land; and
                  ``(B) the agencies that manage the Federal 
                land.

``SEC. 3. DEFINITIONS.

  ``In this Act:
          ``(1) Adjusted share.--The term `adjusted share' 
        means the number equal to the quotient obtained by 
        dividing--
                  ``(A) the number equal to the quotient 
                obtained by dividing--
                          ``(i) the base share for the eligible 
                        county; by
                          ``(ii) the income adjustment for the 
                        eligible county; by
                  ``(B) the number equal to the sum of the 
                quotients obtained under subparagraph (A) and 
                paragraph (8)(A) for all eligible counties.
          ``(2) Base share.--The term `base share' means the 
        number equal to the average of--
                  ``(A) the quotient obtained by dividing--
                          ``(i) the number of acres of Federal 
                        land described in paragraph (7)(A) in 
                        each eligible county; by
                          ``(ii) the total number acres of 
                        Federal land in all eligible counties 
                        in all eligible States; and
                  ``(B) the quotient obtained by dividing--
                          ``(i) the amount equal to the average 
                        of the 3 highest 25-percent payments 
                        and safety net payments made to each 
                        eligible State for each eligible county 
                        during the eligibility period; by
                          ``(ii) the amount equal to the sum of 
                        the amounts calculated under clause (i) 
                        and paragraph (9)(B)(i) for all 
                        eligible counties in all eligible 
                        States during the eligibility period.
          ``(3) County payment.--The term `county payment' 
        means the payment for an eligible county calculated 
        under section 101(b).
          ``(4) Eligible county.--The term `eligible county' 
        means any county that--
                  ``(A) contains Federal land (as defined in 
                paragraph (7)); and
                  ``(B) elects to receive a share of the State 
                payment or the county payment under section 
                102(b).
          ``(5) Eligibility period.--The term `eligibility 
        period' means fiscal year 1986 through fiscal year 
        1999.
          ``(6) Eligible state.--The term `eligible State' 
        means a State or territory of the United States that 
        received a 25-percent payment for 1 or more fiscal 
        years of the eligibility period.
          ``(7) Federal land.--The term `Federal land' means--
                  ``(A) land within the National Forest System, 
                as defined in section 11(a) of the Forest and 
                Rangeland Renewable Resources Planning Act of 
                1974 (16 U.S.C. 1609(a)) exclusive of the 
                National Grasslands and land utilization 
                projects designated as National Grasslands 
                administered pursuant to the Act of July 22, 
                1937 (7 U.S.C. 1010-1012); and
                  ``(B) such portions of the revested Oregon 
                and California Railroad and reconveyed Coos Bay 
                Wagon Road grant land as are or may hereafter 
                come under the jurisdiction of the Department 
                of the Interior, which have heretofore or may 
                hereafter be classified as timberlands, and 
                power-site land valuable for timber, that shall 
                be managed, except as provided in the former 
                section 3 of the Act of August 28, 1937 (50 
                Stat. 875; 43 U.S.C. 1181c), for permanent 
                forest production.
          ``(8) 50-Percent adjusted share.--The term `50-
        percent adjusted share' means the number equal to the 
        quotient obtained by dividing--
                  ``(A) the number equal to the quotient 
                obtained by dividing--
                          ``(i) the 50-percent base share for 
                        the eligible county; by
                          ``(ii) the income adjustment for the 
                        eligible county; by
                  ``(B) the number equal to the sum of the 
                quotients obtained under subparagraph (A) and 
                paragraph (1)(A) for all eligible counties.
          ``(9) 50-Percent base share.--The term `50-percent 
        base share' means the number equal to the average of--
                  ``(A) the quotient obtained by dividing--
                          ``(i) the number of acres of Federal 
                        land described in paragraph (7)(B) in 
                        each eligible county; by
                          ``(ii) the total number acres of 
                        Federal land in all eligible counties 
                        in all eligible States; and
                  ``(B) the quotient obtained by dividing--
                          ``(i) the amount equal to the average 
                        of the 3 highest 50-percent payments 
                        made to each eligible county during the 
                        eligibility period; by
                          ``(ii) the amount equal to the sum of 
                        the amounts calculated under clause (i) 
                        and paragraph (2)(B)(i) for all 
                        eligible counties in all eligible 
                        States during the eligibility period.
          ``(10) 50-percent payment.--The term `50-percent 
        payment' means the payment that is the sum of the 50-
        percent share otherwise paid to a county pursuant to 
        title II of the Act of August 28, 1937 (chapter 876; 50 
        Stat. 875; 43 U.S.C. 1181f), and the payment made to a 
        county pursuant to the Act of May 24, 1939 (chapter 
        144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
          ``(11) Full funding amount.--The term `full funding 
        amount' means--
                  ``(A) $500,000,000 for fiscal year 2008; and
                  ``(B) for fiscal year 2009 and each fiscal 
                year thereafter, the amount that is equal to 85 
                percent of the full funding amount for the 
                preceding fiscal year.
          ``(12) Income adjustment.--The term `income 
        adjustment' means the square of the quotient obtained 
        by dividing--
                  ``(A) the per capita personal income for each 
                eligible county; by
                  ``(B) the median per capita personal income 
                of all eligible counties.
          ``(13) Per capita personal income.--The term `per 
        capita personal income' means the most recent per 
        capita personal income data, as determined by the 
        Bureau of Economic Analysis.
          ``(14) Safety net payments.--The term `safety net 
        payments' means the special payment amounts paid to 
        States and counties required by section 13982 or 13983 
        of the Omnibus Budget Reconciliation Act of 1993 
        (Public Law 103-66; 16 U.S.C. 500 note; 43 U.S.C. 1181f 
        note).
          ``(15) Secretary concerned.--The term `Secretary 
        concerned' means--
                  ``(A) the Secretary of Agriculture or the 
                designee of the Secretary of Agriculture with 
                respect to the Federal land described in 
                paragraph (7)(A); and
                  ``(B) the Secretary of the Interior or the 
                designee of the Secretary of the Interior with 
                respect to the Federal land described in 
                paragraph (7)(B).
          ``(16) State payment.--The term `State payment' means 
        the payment for an eligible State calculated under 
        section 101(a).
          ``(17) 25-Percent payment.--The term `25-percent 
        payment' means the payment to States required by the 
        sixth paragraph under the heading of `FOREST SERVICE' 
        in the Act of May 23, 1908 (35 Stat. 260; 16 U.S.C. 
        500), and section 13 of the Act of March 1, 1911 (36 
        Stat. 963; 16 U.S.C. 500).

 ``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                  LAND


``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL LAND.

  ``(a) State Payment.--For each of fiscal years 2008 through 
2011, the Secretary of Agriculture shall calculate for each 
eligible State an amount equal to the sum of the products 
obtained by multiplying--
          ``(1) the adjusted share for each eligible county 
        within the eligible State; by
          ``(2) the full funding amount for the fiscal year.
  ``(b) County Payment.--For each of fiscal years 2008 through 
2011, the Secretary of the Interior shall calculate for each 
eligible county that received a 50-percent payment during the 
eligibility period an amount equal to the product obtained by 
multiplying--
          ``(1) the 50-percent adjusted share for the eligible 
        county; by
          ``(2) the full funding amount for the fiscal year.

``SEC. 102. PAYMENTS TO STATES AND COUNTIES.

  ``(a) Payment Amounts.--Except as provided in section 103, 
the Secretary of the Treasury shall pay to--
          ``(1) a State or territory of the United States an 
        amount equal to the sum of the amounts elected under 
        subsection (b) by each county within the State or 
        territory for--
                  ``(A) if the county is eligible for the 25-
                percent payment, the share of the 25-percent 
                payment; or
                  ``(B) the share of the State payment of the 
                eligible county; and
          ``(2) a county an amount equal to the amount elected 
        under subsection (b) by each county for--
                  ``(A) if the county is eligible for the 50-
                percent payment, the 50-percent payment; or
                  ``(B) the county payment for the eligible 
                county.
  ``(b) Election To Receive Payment Amount.--
          ``(1) Election; submission of results.--
                  ``(A) In general.--The election to receive a 
                share of the State payment, the county payment, 
                a share of the State payment and the county 
                payment, a share of the 25-percent payment, the 
                50-percent payment, or a share of the 25-
                percent payment and the 50-percent payment, as 
                applicable, shall be made at the discretion of 
                each affected county by August 1, 2008, and 
                August 1 of each second fiscal year thereafter, 
                in accordance with paragraph (2), and 
                transmitted to the Secretary concerned by the 
                Governor of each eligible State.
                  ``(B) Failure to transmit.--If an election 
                for an affected county is not transmitted to 
                the Secretary concerned by the date specified 
                under subparagraph (A), the affected county 
                shall be considered to have elected to receive 
                a share of the State payment, the county 
                payment, or a share of the State payment and 
                the county payment, as applicable.
          ``(2) Duration of election.--
                  ``(A) In general.--A county election to 
                receive a share of the 25-percent payment or 
                50-percent payment, as applicable, shall be 
                effective for 2 fiscal years.
                  ``(B) Full funding amount.--If a county 
                elects to receive a share of the State payment 
                or the county payment, the election shall be 
                effective for all subsequent fiscal years 
                through fiscal year 2011.
          ``(3) Source of payment amounts.--The payment to an 
        eligible State or eligible county under this section 
        for a fiscal year shall be derived from--
                  ``(A) any revenues, fees, penalties, or 
                miscellaneous receipts, exclusive of deposits 
                to any relevant trust fund, special account, or 
                permanent operating funds, received by the 
                Federal Government from activities by the 
                Bureau of Land Management or the Forest Service 
                on the applicable Federal land; and
                  ``(B) to the extent of any shortfall, out of 
                any amounts in the Treasury of the United 
                States not otherwise appropriated.
  ``(c) Distribution and Expenditure of Payments.--
          ``(1) Distribution method.--A State that receives a 
        payment under subsection (a) for Federal land described 
        in section 3(7)(A) shall distribute the appropriate 
        payment amount among the appropriate counties in the 
        State in accordance with--
                  ``(A) the Act of May 23, 1908 (16 U.S.C. 
                500); and
                  ``(B) section 13 of the Act of March 1, 1911 
                (36 Stat. 963; 16 U.S.C. 500).
          ``(2) Expenditure purposes.--Subject to subsection 
        (d), payments received by a State under subsection (a) 
        and distributed to counties in accordance with 
        paragraph (1) shall be expended as required by the laws 
        referred to in paragraph (1).
  ``(d) Expenditure Rules for Eligible Counties.--
          ``(1) Allocations.--
                  ``(A) Use of portion in same manner as 25-
                percent payment or 50-percent payment, as 
                applicable.--Except as provided in paragraph 
                (3)(B), if an eligible county elects to receive 
                its share of the State payment or the county 
                payment, not less than 80 percent, but not more 
                than 85 percent, of the funds shall be expended 
                in the same manner in which the 25-percent 
                payments or 50-percent payment, as applicable, 
                are required to be expended.
                  ``(B) Election as to use of balance.--Except 
                as provided in subparagraph (C), an eligible 
                county shall elect to do 1 or more of the 
                following with the balance of any funds not 
                expended pursuant to subparagraph (A):
                          ``(i) Reserve any portion of the 
                        balance for projects in accordance with 
                        title II.
                          ``(ii) Reserve not more than 7 
                        percent of the total share for the 
                        eligible county of the State payment or 
                        the county payment for projects in 
                        accordance with title III.
                          ``(iii) Return the portion of the 
                        balance not reserved under clauses (i) 
                        and (ii) to the Treasury of the United 
                        States.
                  ``(C) Counties with modest distributions.--In 
                the case of each eligible county to which more 
                than $100,000, but less than $350,000, is 
                distributed for any fiscal year pursuant to 
                either or both of paragraphs (1)(B) and (2)(B) 
                of subsection (a), the eligible county, with 
                respect to the balance of any funds not 
                expended pursuant to subparagraph (A) for that 
                fiscal year, shall--
                          ``(i) reserve any portion of the 
                        balance for--
                                  ``(I) carrying out projects 
                                under title II;
                                  ``(II) carrying out projects 
                                under title III; or
                                  ``(III) a combination of the 
                                purposes described in 
                                subclauses (I) and (II); or
                          ``(ii) return the portion of the 
                        balance not reserved under clause (i) 
                        to the Treasury of the United States.
          ``(2) Distribution of funds.--
                  ``(A) In general.--Funds reserved by an 
                eligible county under subparagraph (B)(i) or 
                (C)(i) of paragraph (1) for carrying out 
                projects under title II shall be deposited in a 
                special account in the Treasury of the United 
                States.
                  ``(B) Availability.--Amounts deposited under 
                subparagraph (A) shall--
                          ``(i) be available for expenditure by 
                        the Secretary concerned, without 
                        further appropriation; and
                          ``(ii) remain available until 
                        expended in accordance with title II.
          ``(3) Election.--
                  ``(A) Notification.--
                          ``(i) In general.--An eligible county 
                        shall notify the Secretary concerned of 
                        an election by the eligible county 
                        under this subsection not later than 
                        September 30 of each fiscal year.
                          ``(ii) Failure to elect.--Except as 
                        provided in subparagraph (B), if the 
                        eligible county fails to make an 
                        election by the date specified in 
                        clause (i), the eligible county shall--
                                  ``(I) be considered to have 
                                elected to expend 85 percent of 
                                the funds in accordance with 
                                paragraph (1)(A); and
                                  ``(II) return the balance to 
                                the Treasury of the United 
                                States.
                  ``(B) Counties with minor distributions.--In 
                the case of each eligible county to which less 
                than $100,000 is distributed for any fiscal 
                year pursuant to either or both of paragraphs 
                (1)(B) and (2)(B) of subsection (a), the 
                eligible county may elect to expend all the 
                funds in the same manner in which the 25-
                percent payments or 50-percent payments, as 
                applicable, are required to be expended.
  ``(e) Time for Payment.--The payments required under this 
section for a fiscal year shall be made as soon as practicable 
after the end of that fiscal year.

``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA, OREGON, 
                    AND WASHINGTON.

  ``(a) Definitions.--In this section:
          ``(1) Adjusted amount.--The term `adjusted amount' 
        means, with respect to a covered State--
                  ``(A) for fiscal year 2008, 90 percent of--
                          ``(i) the sum of the amounts paid for 
                        fiscal year 2006 under section 
                        102(a)(2) (as in effect on September 
                        29, 2006) for the eligible counties in 
                        the covered State that have elected 
                        under section 102(b) to receive a share 
                        of the State payment for fiscal year 
                        2008; and
                          ``(ii) the sum of the amounts paid 
                        for fiscal year 2006 under section 
                        103(a)(2) (as in effect on September 
                        29, 2006) for the eligible counties in 
                        the State of Oregon that have elected 
                        under section 102(b) to receive the 
                        county payment for fiscal year 2008;
                  ``(B) for fiscal year 2009, 76 percent of--
                          ``(i) the sum of the amounts paid for 
                        fiscal year 2006 under section 
                        102(a)(2) (as in effect on September 
                        29, 2006) for the eligible counties in 
                        the covered State that have elected 
                        under section 102(b) to receive a share 
                        of the State payment for fiscal year 
                        2009; and
                          ``(ii) the sum of the amounts paid 
                        for fiscal year 2006 under section 
                        103(a)(2) (as in effect on September 
                        29, 2006) for the eligible counties in 
                        the State of Oregon that have elected 
                        under section 102(b) to receive the 
                        county payment for fiscal year 2009; 
                        and
                  ``(C) for fiscal year 2010, 65 percent of--
                          ``(i) the sum of the amounts paid for 
                        fiscal year 2006 under section 
                        102(a)(2) (as in effect on September 
                        29, 2006) for the eligible counties in 
                        the covered State that have elected 
                        under section 102(b) to receive a share 
                        of the State payment for fiscal year 
                        2010; and
                          ``(ii) the sum of the amounts paid 
                        for fiscal year 2006 under section 
                        103(a)(2) (as in effect on September 
                        29, 2006) for the eligible counties in 
                        the State of Oregon that have elected 
                        under section 102(b) to receive the 
                        county payment for fiscal year 2010.
          ``(2) Covered state.--The term `covered State' means 
        each of the States of California, Oregon, and 
        Washington.
  ``(b) Transition Payments.--For each of fiscal years 2008 
through 2010, in lieu of the payment amounts that otherwise 
would have been made under paragraphs (1)(B) and (2)(B) of 
section 102(a), the Secretary of the Treasury shall pay the 
adjusted amount to each covered State and the eligible counties 
within the covered State, as applicable.
  ``(c) Distribution of Adjusted Amount in Oregon and 
Washington.--It is the intent of Congress that the method of 
distributing the payments under subsection (b) among the 
counties in the States of Oregon and Washington for each of 
fiscal years 2008 through 2010 be in the same proportion that 
the payments were distributed to the eligible counties in 
fiscal year 2006.
  ``(d) Distribution of Payments in California.--The following 
payments shall be distributed among the eligible counties in 
the State of California in the same proportion that payments 
under section 102(a)(2) (as in effect on September 29, 2006) 
were distributed to the eligible counties for fiscal year 2006:
          ``(1) Payments to the State of California under 
        subsection (b).
          ``(2) The shares of the eligible counties of the 
        State payment for California under section 102 for 
        fiscal year 2011.
  ``(e) Treatment of Payments.--For purposes of this Act, any 
payment made under subsection (b) shall be considered to be a 
payment made under section 102(a).

              ``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND


``SEC. 201. DEFINITIONS.

  ``In this title:
          ``(1) Participating county.--The term `participating 
        county' means an eligible county that elects under 
        section 102(d) to expend a portion of the Federal funds 
        received under section 102 in accordance with this 
        title.
          ``(2) Project funds.--The term `project funds' means 
        all funds an eligible county elects under section 
        102(d) to reserve for expenditure in accordance with 
        this title.
          ``(3) Resource advisory committee.--The term 
        `resource advisory committee' means--
                  ``(A) an advisory committee established by 
                the Secretary concerned under section 205; or
                  ``(B) an advisory committee determined by the 
                Secretary concerned to meet the requirements of 
                section 205.
          ``(4) Resource management plan.--The term `resource 
        management plan' means--
                  ``(A) a land use plan prepared by the Bureau 
                of Land Management for units of the Federal 
                land described in section 3(7)(B) pursuant to 
                section 202 of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1712); or
                  ``(B) a land and resource management plan 
                prepared by the Forest Service for units of the 
                National Forest System pursuant to section 6 of 
                the Forest and Rangeland Renewable Resources 
                Planning Act of 1974l (16 U.S.C. 1604).

``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.

  ``(a) Limitation.--Project funds shall be expended solely on 
projects that meet the requirements of this title.
  ``(b) Authorized Uses.--Project funds may be used by the 
Secretary concerned for the purpose of entering into and 
implementing cooperative agreements with willing Federal 
agencies, State and local governments, private and nonprofit 
entities, and landowners for protection, restoration, and 
enhancement of fish and wildlife habitat, and other resource 
objectives consistent with the purposes of this Act on Federal 
land and on non-Federal land where projects would benefit the 
resources on Federal land.

``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

  ``(a) Submission of Project Proposals to Secretary 
Concerned.--
          ``(1) Projects funded using project funds.--Not later 
        than September 30 for fiscal year 2008, and each 
        September 30 thereafter for each succeeding fiscal year 
        through fiscal year 2011, each resource advisory 
        committee shall submit to the Secretary concerned a 
        description of any projects that the resource advisory 
        committee proposes the Secretary undertake using any 
        project funds reserved by eligible counties in the area 
        in which the resource advisory committee has geographic 
        jurisdiction.
          ``(2) Projects funded using other funds.--A resource 
        advisory committee may submit to the Secretary 
        concerned a description of any projects that the 
        committee proposes the Secretary undertake using funds 
        from State or local governments, or from the private 
        sector, other than project funds and funds appropriated 
        and otherwise available to do similar work.
          ``(3) Joint projects.--Participating counties or 
        other persons may propose to pool project funds or 
        other funds, described in paragraph (2), and jointly 
        propose a project or group of projects to a resource 
        advisory committee established under section 205.
  ``(b) Required Description of Projects.--In submitting 
proposed projects to the Secretary concerned under subsection 
(a), a resource advisory committee shall include in the 
description of each proposed project the following information:
          ``(1) The purpose of the project and a description of 
        how the project will meet the purposes of this title.
          ``(2) The anticipated duration of the project.
          ``(3) The anticipated cost of the project.
          ``(4) The proposed source of funding for the project, 
        whether project funds or other funds.
          ``(5)(A) Expected outcomes, including how the project 
        will meet or exceed desired ecological conditions, 
        maintenance objectives, or stewardship objectives.
          ``(B) An estimate of the amount of any timber, 
        forage, and other commodities and other economic 
        activity, including jobs generated, if any, anticipated 
        as part of the project.
          ``(6) A detailed monitoring plan, including funding 
        needs and sources, that--
                  ``(A) tracks and identifies the positive or 
                negative impacts of the project, 
                implementation, and provides for validation 
                monitoring; and
                  ``(B) includes an assessment of the 
                following:
                          ``(i) Whether or not the project met 
                        or exceeded desired ecological 
                        conditions; created local employment or 
                        training opportunities, including 
                        summer youth jobs programs such as the 
                        Youth Conservation Corps where 
                        appropriate.
                          ``(ii) Whether the project improved 
                        the use of, or added value to, any 
                        products removed from land consistent 
                        with the purposes of this title.
          ``(7) An assessment that the project is to be in the 
        public interest.
  ``(c) Authorized Projects.--Projects proposed under 
subsection (a) shall be consistent with section 2.

``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.

  ``(a) Conditions for Approval of Proposed Project.--The 
Secretary concerned may make a decision to approve a project 
submitted by a resource advisory committee under section 203 
only if the proposed project satisfies each of the following 
conditions:
          ``(1) The project complies with all applicable 
        Federal laws (including regulations).
          ``(2) The project is consistent with the applicable 
        resource management plan and with any watershed or 
        subsequent plan developed pursuant to the resource 
        management plan and approved by the Secretary 
        concerned.
          ``(3) The project has been approved by the resource 
        advisory committee in accordance with section 205, 
        including the procedures issued under subsection (e) of 
        that section.
          ``(4) A project description has been submitted by the 
        resource advisory committee to the Secretary concerned 
        in accordance with section 203.
          ``(5) The project will improve the maintenance of 
        existing infrastructure, implement stewardship 
        objectives that enhance forest ecosystems, and restore 
        and improve land health and water quality.
  ``(b) Environmental Reviews.--
          ``(1) Request for payment by county.--The Secretary 
        concerned may request the resource advisory committee 
        submitting a proposed project to agree to the use of 
        project funds to pay for any environmental review, 
        consultation, or compliance with applicable 
        environmental laws required in connection with the 
        project.
          ``(2) Conduct of environmental review.--If a payment 
        is requested under paragraph (1) and the resource 
        advisory committee agrees to the expenditure of funds 
        for this purpose, the Secretary concerned shall conduct 
        environmental review, consultation, or other compliance 
        responsibilities in accordance with Federal laws 
        (including regulations).
          ``(3) Effect of refusal to pay.--
                  ``(A) In general.--If a resource advisory 
                committee does not agree to the expenditure of 
                funds under paragraph (1), the project shall be 
                deemed withdrawn from further consideration by 
                the Secretary concerned pursuant to this title.
                  ``(B) Effect of withdrawal.--A withdrawal 
                under subparagraph (A) shall be deemed to be a 
                rejection of the project for purposes of 
                section 207(c).
  ``(c) Decisions of Secretary Concerned.--
          ``(1) Rejection of projects.--
                  ``(A) In general.--A decision by the 
                Secretary concerned to reject a proposed 
                project shall be at the sole discretion of the 
                Secretary concerned.
                  ``(B) No administrative appeal or judicial 
                review.--Notwithstanding any other provision of 
                law, a decision by the Secretary concerned to 
                reject a proposed project shall not be subject 
                to administrative appeal or judicial review.
                  ``(C) Notice of rejection.--Not later than 30 
                days after the date on which the Secretary 
                concerned makes the rejection decision, the 
                Secretary concerned shall notify in writing the 
                resource advisory committee that submitted the 
                proposed project of the rejection and the 
                reasons for rejection.
          ``(2) Notice of project approval.--The Secretary 
        concerned shall publish in the Federal Register notice 
        of each project approved under subsection (a) if the 
        notice would be required had the project originated 
        with the Secretary.
  ``(d) Source and Conduct of Project.--Once the Secretary 
concerned accepts a project for review under section 203, the 
acceptance shall be deemed a Federal action for all purposes.
  ``(e) Implementation of Approved Projects.--
          ``(1) Cooperation.--Notwithstanding chapter 63 of 
        title 31, United States Code, using project funds the 
        Secretary concerned may enter into contracts, grants, 
        and cooperative agreements with States and local 
        governments, private and nonprofit entities, and 
        landowners and other persons to assist the Secretary in 
        carrying out an approved project.
          ``(2) Best value contracting.--
                  ``(A) In general.--For any project involving 
                a contract authorized by paragraph (1) the 
                Secretary concerned may elect a source for 
                performance of the contract on a best value 
                basis.
                  ``(B) Factors.--The Secretary concerned shall 
                determine best value based on such factors as--
                          ``(i) the technical demands and 
                        complexity of the work to be done;
                          ``(ii)(I) the ecological objectives 
                        of the project; and
                          ``(II) the sensitivity of the 
                        resources being treated;
                          ``(iii) the past experience by the 
                        contractor with the type of work being 
                        done, using the type of equipment 
                        proposed for the project, and meeting 
                        or exceeding desired ecological 
                        conditions; and
                          ``(iv) the commitment of the 
                        contractor to hiring highly qualified 
                        workers and local residents.
          ``(3) Merchantable timber contracting pilot 
        program.--
                  ``(A) Establishment.--The Secretary concerned 
                shall establish a pilot program to implement a 
                certain percentage of approved projects 
                involving the sale of merchantable timber using 
                separate contracts for--
                          ``(i) the harvesting or collection of 
                        merchantable timber; and
                          ``(ii) the sale of the timber.
                  ``(B) Annual percentages.--Under the pilot 
                program, the Secretary concerned shall ensure 
                that, on a nationwide basis, not less than the 
                following percentage of all approved projects 
                involving the sale of merchantable timber are 
                implemented using separate contracts:
                          ``(i) For fiscal year 2008, 35 
                        percent.
                          ``(ii) For fiscal year 2009, 45 
                        percent.
                          ``(iii) For each of fiscal years 2010 
                        and 2011, 50 percent.
                  ``(C) Inclusion in pilot program.--The 
                decision whether to use separate contracts to 
                implement a project involving the sale of 
                merchantable timber shall be made by the 
                Secretary concerned after the approval of the 
                project under this title.
                  ``(D) Assistance.--
                          ``(i) In general.--The Secretary 
                        concerned may use funds from any 
                        appropriated account available to the 
                        Secretary for the Federal land to 
                        assist in the administration of 
                        projects conducted under the pilot 
                        program.
                          ``(ii) Maximum amount of 
                        assistance.--The total amount obligated 
                        under this subparagraph may not exceed 
                        $1,000,000 for any fiscal year during 
                        which the pilot program is in effect.
                  ``(E) Review and report.--
                          ``(i) Initial report.--Not later than 
                        September 30, 2010, the Comptroller 
                        General shall submit to the Committees 
                        on Agriculture, Nutrition, and Forestry 
                        and Energy and Natural Resources of the 
                        Senate and the Committees on 
                        Agriculture and Natural Resources of 
                        the House of Representatives a report 
                        assessing the pilot program.
                          ``(ii) Annual report.--The Secretary 
                        concerned shall submit to the 
                        Committees on Agriculture, Nutrition, 
                        and Forestry and Energy and Natural 
                        Resources of the Senate and the 
                        Committees on Agriculture and Natural 
                        Resources of the House of 
                        Representatives an annual report 
                        describing the results of the pilot 
                        program.
  ``(f) Requirements for Project Funds.--The Secretary shall 
ensure that at least 50 percent of all project funds be used 
for projects that are primarily dedicated--
          ``(1) to road maintenance, decommissioning, or 
        obliteration; or
          ``(2) to restoration of streams and watersheds.

``SEC. 205. RESOURCE ADVISORY COMMITTEES.

  ``(a) Establishment and Purpose of Resource Advisory 
Committees.--
          ``(1) Establishment.--The Secretary concerned shall 
        establish and maintain resource advisory committees to 
        perform the duties in subsection (b), except as 
        provided in paragraph (4).
          ``(2) Purpose.--The purpose of a resource advisory 
        committee shall be--
                  ``(A) to improve collaborative relationships; 
                and
                  ``(B) to provide advice and recommendations 
                to the land management agencies consistent with 
                the purposes of this title.
          ``(3) Access to resource advisory committees.--To 
        ensure that each unit of Federal land has access to a 
        resource advisory committee, and that there is 
        sufficient interest in participation on a committee to 
        ensure that membership can be balanced in terms of the 
        points of view represented and the functions to be 
        performed, the Secretary concerned may, establish 
        resource advisory committees for part of, or 1 or more, 
        units of Federal land.
          ``(4) Existing advisory committees.--
                  ``(A) In general.--An advisory committee that 
                meets the requirements of this section, a 
                resource advisory committee established before 
                September 29, 2006, or an advisory committee 
                determined by the Secretary concerned before 
                September 29, 2006, to meet the requirements of 
                this section may be deemed by the Secretary 
                concerned to be a resource advisory committee 
                for the purposes of this title.
                  ``(B) Charter.--A charter for a committee 
                described in subparagraph (A) that was filed on 
                or before September 29, 2006, shall be 
                considered to be filed for purposes of this 
                Act.
                  ``(C) Bureau of land management advisory 
                committees.--The Secretary of the Interior may 
                deem a resource advisory committee meeting the 
                requirements of subpart 1784 of part 1780 of 
                title 43, Code of Federal Regulations, as a 
                resource advisory committee for the purposes of 
                this title.
  ``(b) Duties.--A resource advisory committee shall--
          ``(1) review projects proposed under this title by 
        participating counties and other persons;
          ``(2) propose projects and funding to the Secretary 
        concerned under section 203;
          ``(3) provide early and continuous coordination with 
        appropriate land management agency officials in 
        recommending projects consistent with purposes of this 
        Act under this title;
          ``(4) provide frequent opportunities for citizens, 
        organizations, tribes, land management agencies, and 
        other interested parties to participate openly and 
        meaningfully, beginning at the early stages of the 
        project development process under this title;
          ``(5)(A) monitor projects that have been approved 
        under section 204; and
          ``(B) advise the designated Federal official on the 
        progress of the monitoring efforts under subparagraph 
        (A); and
          ``(6) make recommendations to the Secretary concerned 
        for any appropriate changes or adjustments to the 
        projects being monitored by the resource advisory 
        committee.
  ``(c) Appointment by the Secretary.--
          ``(1) Appointment and term.--
                  ``(A) In general.--The Secretary concerned, 
                shall appoint the members of resource advisory 
                committees for a term of 4 years beginning on 
                the date of appointment.
                  ``(B) Reappointment.--The Secretary concerned 
                may reappoint members to subsequent 4-year 
                terms.
          ``(2) Basic requirements.--The Secretary concerned 
        shall ensure that each resource advisory committee 
        established meets the requirements of subsection (d).
          ``(3) Initial appointment.--Not later than 180 days 
        after the date of the enactment of this Act, the 
        Secretary concerned shall make initial appointments to 
        the resource advisory committees.
          ``(4) Vacancies.--The Secretary concerned shall make 
        appointments to fill vacancies on any resource advisory 
        committee as soon as practicable after the vacancy has 
        occurred.
          ``(5) Compensation.--Members of the resource advisory 
        committees shall not receive any compensation.
  ``(d) Composition of Advisory Committee.--
          ``(1) Number.--Each resource advisory committee shall 
        be comprised of 15 members.
          ``(2) Community interests represented.--Committee 
        members shall be representative of the interests of the 
        following 3 categories:
                  ``(A) 5 persons that--
                          ``(i) represent organized labor or 
                        non-timber forest product harvester 
                        groups;
                          ``(ii) represent developed outdoor 
                        recreation, off highway vehicle users, 
                        or commercial recreation activities;
                          ``(iii) represent--
                                  ``(I) energy and mineral 
                                development interests; or
                                  ``(II) commercial or 
                                recreational fishing interests;
                          ``(iv) represent the commercial 
                        timber industry; or
                          ``(v) hold Federal grazing or other 
                        land use permits, or represent 
                        nonindustrial private forest land 
                        owners, within the area for which the 
                        committee is organized.
                  ``(B) 5 persons that represent--
                          ``(i) nationally recognized 
                        environmental organizations;
                          ``(ii) regionally or locally 
                        recognized environmental organizations;
                          ``(iii) dispersed recreational 
                        activities;
                          ``(iv) archaeological and historical 
                        interests; or
                          ``(v) nationally or regionally 
                        recognized wild horse and burro 
                        interest groups, wildlife or hunting 
                        organizations, or watershed 
                        associations.
                  ``(C) 5 persons that--
                          ``(i) hold State elected office (or a 
                        designee);
                          ``(ii) hold county or local elected 
                        office;
                          ``(iii) represent American Indian 
                        tribes within or adjacent to the area 
                        for which the committee is organized;
                          ``(iv) are school officials or 
                        teachers; or
                          ``(v) represent the affected public 
                        at large.
          ``(3) Balanced representation.--In appointing 
        committee members from the 3 categories in paragraph 
        (2), the Secretary concerned shall provide for balanced 
        and broad representation from within each category.
          ``(4) Geographic distribution.--The members of a 
        resource advisory committee shall reside within the 
        State in which the committee has jurisdiction and, to 
        extent practicable, the Secretary concerned shall 
        ensure local representation in each category in 
        paragraph (2).
          ``(5) Chairperson.--A majority on each resource 
        advisory committee shall select the chairperson of the 
        committee.
  ``(e) Approval Procedures.--
          ``(1) In general.--Subject to paragraph (3), each 
        resource advisory committee shall establish procedures 
        for proposing projects to the Secretary concerned under 
        this title.
          ``(2) Quorum.--A quorum must be present to constitute 
        an official meeting of the committee.
          ``(3) Approval by majority of members.--A project may 
        be proposed by a resource advisory committee to the 
        Secretary concerned under section 203(a), if the 
        project has been approved by a majority of members of 
        the committee from each of the 3 categories in 
        subsection (d)(2).
  ``(f) Other Committee Authorities and Requirements.--
          ``(1) Staff assistance.--A resource advisory 
        committee may submit to the Secretary concerned a 
        request for periodic staff assistance from Federal 
        employees under the jurisdiction of the Secretary.
          ``(2) Meetings.--All meetings of a resource advisory 
        committee shall be announced at least 1 week in advance 
        in a local newspaper of record and shall be open to the 
        public.
          ``(3) Records.--A resource advisory committee shall 
        maintain records of the meetings of the committee and 
        make the records available for public inspection.

``SEC. 206. USE OF PROJECT FUNDS.

  ``(a) Agreement Regarding Schedule and Cost of Project.--
          ``(1) Agreement between parties.--The Secretary 
        concerned may carry out a project submitted by a 
        resource advisory committee under section 203(a) using 
        project funds or other funds described in section 
        203(a)(2), if, as soon as practicable after the 
        issuance of a decision document for the project and the 
        exhaustion of all administrative appeals and judicial 
        review of the project decision, the Secretary concerned 
        and the resource advisory committee enter into an 
        agreement addressing, at a minimum, the following:
                  ``(A) The schedule for completing the 
                project.
                  ``(B) The total cost of the project, 
                including the level of agency overhead to be 
                assessed against the project.
                  ``(C) For a multiyear project, the estimated 
                cost of the project for each of the fiscal 
                years in which it will be carried out.
                  ``(D) The remedies for failure of the 
                Secretary concerned to comply with the terms of 
                the agreement consistent with current Federal 
                law.
          ``(2) Limited use of federal funds.--The Secretary 
        concerned may decide, at the sole discretion of the 
        Secretary concerned, to cover the costs of a portion of 
        an approved project using Federal funds appropriated or 
        otherwise available to the Secretary for the same 
        purposes as the project.
  ``(b) Transfer of Project Funds.--
          ``(1) Initial transfer required.--As soon as 
        practicable after the agreement is reached under 
        subsection (a) with regard to a project to be funded in 
        whole or in part using project funds, or other funds 
        described in section 203(a)(2), the Secretary concerned 
        shall transfer to the applicable unit of National 
        Forest System land or Bureau of Land Management 
        District an amount of project funds equal to--
                  ``(A) in the case of a project to be 
                completed in a single fiscal year, the total 
                amount specified in the agreement to be paid 
                using project funds, or other funds described 
                in section 203(a)(2); or
                  ``(B) in the case of a multiyear project, the 
                amount specified in the agreement to be paid 
                using project funds, or other funds described 
                in section 203(a)(2) for the first fiscal year.
          ``(2) Condition on project commencement.--The unit of 
        National Forest System land or Bureau of Land 
        Management District concerned, shall not commence a 
        project until the project funds, or other funds 
        described in section 203(a)(2) required to be 
        transferred under paragraph (1) for the project, have 
        been made available by the Secretary concerned.
          ``(3) Subsequent transfers for multiyear projects.--
                  ``(A) In general.--For the second and 
                subsequent fiscal years of a multiyear project 
                to be funded in whole or in part using project 
                funds, the unit of National Forest System land 
                or Bureau of Land Management District concerned 
                shall use the amount of project funds required 
                to continue the project in that fiscal year 
                according to the agreement entered into under 
                subsection (a).
                  ``(B) Suspension of work.--The Secretary 
                concerned shall suspend work on the project if 
                the project funds required by the agreement in 
                the second and subsequent fiscal years are not 
                available.

``SEC. 207. AVAILABILITY OF PROJECT FUNDS.

  ``(a) Submission of Proposed Projects to Obligate Funds.--By 
September 30 of each fiscal year through fiscal year 2011, a 
resource advisory committee shall submit to the Secretary 
concerned pursuant to section 203(a)(1) a sufficient number of 
project proposals that, if approved, would result in the 
obligation of at least the full amount of the project funds 
reserved by the participating county in the preceding fiscal 
year.
  ``(b) Use or Transfer of Unobligated Funds.--Subject to 
section 208, if a resource advisory committee fails to comply 
with subsection (a) for a fiscal year, any project funds 
reserved by the participating county in the preceding fiscal 
year and remaining unobligated shall be available for use as 
part of the project submissions in the next fiscal year.
  ``(c) Effect of Rejection of Projects.--Subject to section 
208, any project funds reserved by a participating county in 
the preceding fiscal year that are unobligated at the end of a 
fiscal year because the Secretary concerned has rejected one or 
more proposed projects shall be available for use as part of 
the project submissions in the next fiscal year.
  ``(d) Effect of Court Orders.--
          ``(1) In general.--If an approved project under this 
        Act is enjoined or prohibited by a Federal court, the 
        Secretary concerned shall return the unobligated 
        project funds related to the project to the 
        participating county or counties that reserved the 
        funds.
          ``(2) Expenditure of funds.--The returned funds shall 
        be available for the county to expend in the same 
        manner as the funds reserved by the county under 
        subparagraph (B) or (C)(i) of section 102(d)(1).

``SEC. 208. TERMINATION OF AUTHORITY.

  ``(a) In General.--The authority to initiate projects under 
this title shall terminate on September 30, 2011.
  ``(b) Deposits in Treasury.--Any project funds not obligated 
by September 30, 2012, shall be deposited in the Treasury of 
the United States.

                       ``TITLE III--COUNTY FUNDS


``SEC. 301. DEFINITIONS.

  ``In this title:
          ``(1) County funds.--The term `county funds' means 
        all funds an eligible county elects under section 
        102(d) to reserve for expenditure in accordance with 
        this title.
          ``(2) Participating county.--The term `participating 
        county' means an eligible county that elects under 
        section 102(d) to expend a portion of the Federal funds 
        received under section 102 in accordance with this 
        title.

``SEC. 302. USE.

  ``(a) Authorized Uses.--A participating county, including any 
applicable agencies of the participating county, shall use 
county funds, in accordance with this title, only--
          ``(1) to carry out activities under the Firewise 
        Communities program to provide to homeowners in fire-
        sensitive ecosystems education on, and assistance with 
        implementing, techniques in home siting, home 
        construction, and home landscaping that can increase 
        the protection of people and property from wildfires;
          ``(2) to reimburse the participating county for 
        search and rescue and other emergency services, 
        including firefighting, that are--
                  ``(A) performed on Federal land after the 
                date on which the use was approved under 
                subsection (b);
                  ``(B) paid for by the participating county; 
                and
          ``(3) to develop community wildfire protection plans 
        in coordination with the appropriate Secretary 
        concerned.
  ``(b) Proposals.--A participating county shall use county 
funds for a use described in subsection (a) only after a 45-day 
public comment period, at the beginning of which the 
participating county shall--
          ``(1) publish in any publications of local record a 
        proposal that describes the proposed use of the county 
        funds; and
          ``(2) submit the proposal to any resource advisory 
        committee established under section 205 for the 
        participating county.

``SEC. 303. CERTIFICATION.

  ``(a) In General.--Not later than February 1 of the year 
after the year in which any county funds were expended by a 
participating county, the appropriate official of the 
participating county shall submit to the Secretary concerned a 
certification that the county funds expended in the applicable 
year have been used for the uses authorized under section 
302(a), including a description of the amounts expended and the 
uses for which the amounts were expended.
  ``(b) Review.--The Secretary concerned shall review the 
certifications submitted under subsection (a) as the Secretary 
concerned determines to be appropriate.

``SEC. 304. TERMINATION OF AUTHORITY.

  ``(a) In General.--The authority to initiate projects under 
this title terminates on September 30, 2011.
  ``(b) Availability.--Any county funds not obligated by 
September 30, 2012, shall be returned to the Treasury of the 
United States.

                  ``TITLE IV--MISCELLANEOUS PROVISIONS


``SEC. 401. REGULATIONS.

  ``The Secretary of Agriculture and the Secretary of the 
Interior shall issue regulations to carry out the purposes of 
this Act.

``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated such sums as are 
necessary to carry out this Act for each of fiscal years 2008 
through 2011.

``SEC. 403. TREATMENT OF FUNDS AND REVENUES.

  ``(a) Relation to Other Appropriations.--Funds made available 
under section 402 and funds made available to a Secretary 
concerned under section 206 shall be in addition to any other 
annual appropriations for the Forest Service and the Bureau of 
Land Management.
  ``(b) Deposit of Revenues and Other Funds.--All revenues 
generated from projects pursuant to title II, including any 
interest accrued from the revenues, shall be deposited in the 
Treasury of the United States.''.
  (b) Forest Receipt Payments to Eligible States and 
Counties.--
          (1) Act of may 23, 1908.--The sixth paragraph under 
        the heading ``FOREST SERVICE'' in the Act of May 23, 
        1908 (16 U.S.C. 500) is amended in the first sentence 
        by striking ``twenty-five percentum'' and all that 
        follows through ``shall be paid'' and inserting the 
        following: ``an amount equal to the annual average of 
        25 percent of all amounts received for the applicable 
        fiscal year and each of the preceding 6 fiscal years 
        from each national forest shall be paid''.
          (2) Weeks law.--Section 13 of the Act of March 1, 
        1911 (commonly known as the ``Weeks Law'') (16 U.S.C. 
        500) is amended in the first sentence by striking 
        ``twenty-five percentum'' and all that follows through 
        ``shall be paid'' and inserting the following: ``an 
        amount equal to the annual average of 25 percent of all 
        amounts received for the applicable fiscal year and 
        each of the preceding 6 fiscal years from each national 
        forest shall be paid''.
  (c) Payments in Lieu of Taxes.--
          (1) In general.--Section 6906 of title 31, United 
        States Code, is amended to read as follows:

``Sec. 6906. Funding

  ``For fiscal year 2009--
          ``(1) each county or other eligible unit of local 
        government shall be entitled to payment under this 
        chapter; and
          ``(2) sums shall be made available to the Secretary 
        of the Interior for obligation or expenditure in 
        accordance with this chapter.''.
          (2) Conforming amendment.--The table of sections for 
        chapter 69 of title 31, United States Code, is amended 
        by striking the item relating to section 6906 and 
        inserting the following:

``6906. Funding.''.

          (3) Budget scorekeeping.--
                  (A) In general.--Notwithstanding the Budget 
                Scorekeeping Guidelines and the accompanying 
                list of programs and accounts set forth in the 
                joint explanatory statement of the committee of 
                conference accompanying Conference Report 105-
                217, the amendment made by paragraph (1) shall 
                be treated in the baseline for purposes of 
                section 257 of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 (2 U.S.C. 
                907) (as in effect before September 30, 2002), 
                by the Chairpersons of the Committee on the 
                Budget of the House of Representatives and the 
                Committee on the Budget of the Senate, as 
                appropriate, for purposes of budget enforcement 
                in the House of Representatives and the Senate, 
                and under the Congressional Budget Act of 1974 
                (2 U.S.C. 601 et seq.) as if Payment in Lieu of 
                Taxes (14-1114-0-1-806) were an account 
                designated as Appropriated Entitlements and 
                Mandatories for Fiscal Year 1997 in the joint 
                explanatory statement of the committee of 
                conference accompanying Conference Report 105-
                217.
                  (B) Effective date.--This paragraph shall--
                          (i) be effective beginning on the 
                        date of enactment of this Act; and
                          (ii) remain in effect for any fiscal 
                        year for which the entitlement in 
                        section 6906 of title 31, United States 
                        Code (as amended by paragraph (1)), 
                        applies.

    In lieu of the matter proposed to be inserted for the title 
of the bill, H.R. 6, insert the following: ``An Act to move the 
United States toward greater energy independence and security, 
to increase the production of clean renewable fuels, to protect 
consumers, to increase the efficiency of products, buildings, 
and vehicles, to promote research on and deploy greenhouse gas 
capture and storage options, and to improve the energy 
performance of the Federal Government, and for other 
purposes.''.

                                  
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