[House Report 111-185]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-185
======================================================================
 
  PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2454) TO CREATE CLEAN 
    ENERGY JOBS, ACHIEVE ENERGY INDEPENDENCE, REDUCE GLOBAL WARMING 
           POLLUTION AND TRANSITION TO A CLEAN ENERGY ECONOMY

                                _______
                                

  June 26, 2009 (legislative day of June 25), 2009.--Referred to the 
                House Calendar and ordered to be printed

                                _______
                                

    Ms. Matsui, from the Committee on Rules, submitted the following

                              R E P O R T

                           [To accompany 587]

    The Committee on Rules, having had under consideration 
House Resolution 587, by a record vote of 7 to 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 consideration of H.R. 2454, the 
``American Clean Energy and Security Act of 2009,'' under a 
structured rule. The resolution provides three hours of debate 
with 2 and one half hours to be equally divided and controlled 
by the chair and ranking minority member of the Committee on 
Energy and Commerce and 30 minutes to be equally divided and 
controlled by the chair and ranking minority member of the 
Committee on Ways and Means. The resolution waives all points 
of order against consideration of the bill except for clauses 9 
and 10 of rule XXI.
    The resolution provides that, in lieu of the amendment 
recommended by the Committee on Energy and Commerce now printed 
in the bill, an amendment in the nature of a substitute 
consisting of the text of H.R. 2998, modified by the amendment 
printed in part A of this report, shall be considered as 
adopted. The resolution waives all points of order against the 
bill, as amended. This waiver does not affect the point of 
order available under clause 9 of rule XXI (regarding earmark 
disclosure). The resolution provides that the bill, as amended, 
shall be considered as read.
    The resolution makes in order the further amendment in the 
nature of a substitute printed in part B of the report of the 
Committee on Rules, if offered by Representative Forbes of 
Virginia or his designee, which shall be in order without 
intervention of any point of order except those arising under 
clause 9 or 10 of rule XXI, shall be considered as read, and 
shall be separately debatable for 30 minutes equally divided 
and controlled by the proponent and an opponent. The resolution 
provides one motion to recommit with or without instructions.

                         EXPLANATION OF WAIVERS

    Although the rule waives all points of order against 
consideration of the bill (except for clauses 9 and 10 of rule 
XXI) and all points of order against the bill, as amended, the 
Committee is not aware of any points of order. The waivers of 
all points of order are prophylactic.

                            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. 157

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment in the nature of a substitute by Rep. 
Boehner (OH), #40, which would strike all after the enacting 
clause and insert the text of H.R. 2846, the ``American Energy 
Act,'' as introduced in the 111th Congress.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 158

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion By: Mr. Dreier.
    Summary of motion: To make in order en bloc the following 
amendments by Rep. Barton (TX) to be separately debatable for 
10 minutes each: #212, which would strike the cap and trade 
title; allows for the construction of new coal and natural gas 
plants with certain regulatory standards, #213, which would 
direct the Administrator, in consultation with the Secretary of 
Energy, to annually prepare and certify a report to Congress on 
the average retail price of gasoline in the United States. If 
the Administrator determines that the average retail price of 
gasoline (all grades) sold to retail customers in the United 
States during the prior year exceeds $5 per gallon, including 
taxes (in 2009 dollars), as a result of implementation of this 
Act, the provisions of this Act shall cease to be effective, 
#214, which include nuclear energy as a qualifying RES source, 
and #215, which would include carbon-based fuel with carbon 
sequestration or conversion as a qualifying RES source.
    Results: Defeated 3-7.
    Vote by Member: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 159

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion By: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Kucinich (OH), #165, which 
would reduce emission allowances by a third each year.
    Results: Defeated 3-7.
    Vote by Member: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 160

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. DeFazio (OR), Rep. Kucinich 
(OH), and Rep. Stark (CA), #174, which would strike the EPA's 
authority to list a greenhouse gas as an air pollutant under 
section 108 of the Clean Air Act.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 161

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Maffei (NY), #139, which would 
provide that hydropower, other than that defined in the bill as 
qualified hydropower, shall receive a credit worth 50% towards 
the renewable electricity standard.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 162

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Richardson (CA), #70, which 
would establish a competitive grant program to fund clean and 
energy-efficient transportation vehicles and technology at 
seaports.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 163

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order en bloc the following 
amendments by Rep. Goodlatte (VA) to be separately debatable 
for 10 minutes each: #157, which would allow the President to 
suspend the Global Warming Pollution Reduction program in the 
event of any national emergency or national disaster; Rep. 
Goodlatte (VA), #158, which would allow a governor of any State 
or an electricity provider in any State to petition the 
Commission to waive, in whole or in part, the renewable 
electric standard if a State does not have the renewable energy 
resources to meet the mandate; and Rep. Goodlatte (VA), #177, 
which would state that the administrator may only approve 
higher ethanol blends, higher than 10%, in gasoline if the 
administrator can certify that higher ethanol additives will 
not contribute to failure of emission control devices in 80% of 
vehicles inventory.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 164

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Kline, John (MN), #20, which 
would expand eligibility under the Green Jobs Act to provide 
that jobseekers and job-training partners are not excluded for 
not being union affiliated.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 165

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Fallin (OK), #181, which would 
exclude all businesses with fewer than 100 employees from the 
restrictions in H.R. 2454.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 166

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Reps. Camp (MI)/Herger (CA)/
Johnson, Sam (TX)/Brady, Kevin (TX)/Linder (GA)/Tiberi (OH)/
Brown-Waite (FL)/Davis, Geoff (KY)/Boustany (LA)/Roskam (IL), 
#37, which would delay the implementation of the Safe Climate 
Act portion of the bill until the Comptroller General of the 
United States determines that the bill would not result in a 
net increase in costs for American families with household 
income less than $200,000 for single filers or $250,000 for 
joint filers. The Comptroller General must make a determination 
within 3 months of enactment
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 167

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Biggert (IL), #217, which 
would strike national building codes and national labels for 
buildings. It also would insert the text of H.R. 2336, the 
``Green Act of 2009,'' and H.R. 2246, the ``Community Building 
Code Administration Grant Act,'' into the bill.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 168

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Roe (TN), #106, which would 
require the United States to reach agreement on greenhouse gas 
reductions with China and India before implementing the 
legislation.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 169

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Souder (IN), #203, which would 
exclude small farmers with $100,000 in annual sales from any 
regulation or standard in the bill.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 170

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment in the nature of a substitute by Rep. 
Bishop, Rob (UT)/Price, Tom (GA), #18, which would strike all 
after the enacting clause and insert provisions regarding tax 
exempt financing for qualified renewable energy facilities, 
repeal of federal purchasing requirements, renewable 
technologies, innovation in technology, national grid 
efficiency, regulatory burdens, judicial review regarding 
energy projects, carbon capture and clean coal technology, 
natural gas, conservation, production, and job creation.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 171

    Date: June 26, 2009 (legislative day of June 25, 2009).
    Measure: H.R. 2454.
    Motion by: Mr. McGovern.
    Summary of motion: To report the rule.
    Results: Adopted 7-3.
    Vote by Members: McGovern--Yea; Cardoza--Yea; Arcuri--Yea; 
Perlmutter--Yea; Pingree--Yea; Polis--Yea; Dreier--Nay; Diaz-
Balart--Nay; Sessions--Nay; Slaughter--Yea.

       SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED

    1. Waxman (CA): The amendment would make changes to 
accommodate States that utilize a central purchasing model for 
its renewable electricity standard, and makes additional 
changes. It would provide FERC with siting authority for the 
construction of certain high-priority interstate transmission 
lines constructed in the Western Interconnection. It also would 
amend the National Interest Electric Transmission Corridors.
    It would require the Agriculture Secretary to establish a 
list of types of domestic agricultural and forestry practices 
that result in reductions or avoidance of greenhouse gas 
emissions. It exempts the agriculture and forestry sectors from 
the bill's emission caps. It redefines ``biomass.'' It 
grandfathers existing biodiesel plants to exempt them from 
lifecycle analysis under the RFS. It would permit states to 
convey allowances in a SEED account directly to renewable 
energy generators. It would require the Agriculture Secretary 
to establish a carbon incentives program to achieve 
supplemental greenhouse gas emissions reductions on private 
agricultural and forestland.
    It would establish a Renewable Electricity Standard (RES) 
for Federal agencies. It also would provide Federal agencies 
with the authority to enter into renewable energy power 
purchase agreements for up to 20 years. It would make natural 
gas fueled vehicles eligible for clean vehicle incentives, the 
vehicle integration program, and the manufacturing incentives 
for alternatively fueled vehicles. It would limit the cost of a 
permit for a license for the construction of a solar energy 
system. It would provide that noncompliance with permit cost 
requirements disqualifies the entity from Community Development 
Block Grants.
    It would authorize a national education and awareness 
program for the purpose of informing building, facility, and 
industrial plant owners and managers and decisionmakers, 
government leaders, and industry leaders about the large 
energy-saving potential of greater use of mechanical insulation 
and other benefits. It would amend the definition of a 
``cluster,'' as it applies to Energy Innovation Hubs. It would 
ensure that virtual connections qualify when defining a 
cluster.
    It would amend the Retrofit for Energy and Environmental 
Performance (REEP) program to provide that funds provided to 
disaster victims through the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act may qualify as the building 
owners' contribution toward the matching requirements of the 
REEP program. It requires the Federal agencies administering 
assistance to disaster victims through the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act shall provide 
information to disaster victims on the REEP program. It would 
provide 10 percent of funding under the REEP program for 
retrofits of public and assisted housing.
    It would create a Community Building Code Administration 
Grant program, providing $100 million over five years in 
competitive, matching grants for local building code 
enforcement. It would limit the Building Energy Performance 
Labeling Program in sec. 204 of the bill to new construction 
only. It would provide incentives to lenders and financial 
institutions to provide lower interest loans and other benefits 
to consumers who build, buy, or remodel homes and businesses to 
improve their energy efficiency. It would direct HUD to issue 
rules to prohibit private covenants that restrict or prohibit 
the installation of solar energy systems.
    It would authorize the Energy Secretary to develop a 
research program to study the factors affecting whether 
consumers adopt energy conservation practices or make energy 
efficiency improvements. It would require the Energy Secretary 
to report to Congress on a study on the use of thorium-fueled 
nuclear reactors for national energy needs, including a 
response to the IAEA study entitled ``Thorium fuel cycle--
Potential benefits and challenges.''
    It would establish a clean energy career training 
clearinghouse to aid institutions with Federal resources, 
expertise, information and points of contact in establishing 
and maintaining quality training programs. It would add a 
provision seeking to ensure that minority- owned and women-
owned businesses can benefit from grants aimed at stimulating 
business development. It would require the Labor Secretary to 
monitor the potential growth of impacted and displaced workers 
to ensure that the necessary funding continues to support the 
number of workers affected. It would express the sense of 
Congress that the United States should work with the 
International Civil Aviation Organization.

SUMMARY OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE IN PART B TO BE 
                             MADE IN ORDER

    1. Forbes (VA): Would strike everything and insert the text 
of H.R. 513, the ``New Manhattan Project for Energy 
Independence.'' (30 minutes)

       PART A--TEXT OF THE AMENDMENT TO BE CONSIDERED AS ADOPTED

  Page 14, strike lines 1 through 3 and insert:

          ``(7) Central procurement state.--The term `central 
        procurement State' means a State that, as of January 1, 
        2009, had adopted and implemented a legally enforceable 
        mandate that, in lieu of requiring utilities to submit 
        credits or certificates issued based on generation of 
        electricity from (or to purchase or generate 
        electricity from) resources defined by the State as 
        renewable, requires retail electric suppliers to 
        collect payments from electricity ratepayers within the 
        State that are used for central procurement, by a State 
        agency or a public benefit corporation established 
        pursuant to State law, of credits or certificates 
        issued based on generation of electricity from 
        resources defined by the State as renewable.

  Page 15, beginning line 8, strike paragraph (11), relating to 
the definition of high conservation priority land.

  Page 16, line 5, strike ``1992'' and insert ``1988''.

  Page 16, line 13, strike ``1992'' and insert ``1988''.

  Page 19, beginning line 13, strike paragraph (16), relating 
to the definition of renewable biomass, and insert the 
following new paragraph:

          ``(16) Renewable biomass.--The term `renewable 
        biomass' means any of the following:
                  ``(A) Materials, pre-commercial thinnings, or 
                removed invasive species from National Forest 
                System land and public lands (as defined in 
                section 103 of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1702)), 
                including those that are byproducts of 
                preventive treatments (such as trees, wood, 
                brush, thinnings, chips, and slash), that are 
                removed as part of a federally recognized 
                timber sale, or that are removed to reduce 
                hazardous fuels, to reduce or contain disease 
                or insect infestation, or to restore ecosystem 
                health, and that are--
                          ``(i) not from components of the 
                        National Wilderness Preservation 
                        System, Wilderness Study Areas, 
                        Inventoried Roadless Areas, old growth 
                        stands, late-successional stands 
                        (except for dead, severely damaged, or 
                        badly infested trees), components of 
                        the National Landscape Conservation 
                        System, National Monuments, National 
                        Conservation Areas, Designated 
                        Primitive Areas, or Wild and Scenic 
                        Rivers corridors;
                          ``(ii) harvested in environmentally 
                        sustainable quantities, as determined 
                        by the appropriate Federal land 
                        manager; and
                          ``(iii) harvested in accordance with 
                        Federal and State law, and applicable 
                        land management plans.
                  ``(B) Any organic matter that is available on 
                a renewable or recurring basis from non-Federal 
                land or land belonging to an Indian or Indian 
                tribe that is held in trust by the United 
                States or subject to a restriction against 
                alienation imposed by the United States, 
                including--
                          ``(i) renewable plant material, 
                        including--
                                  ``(I) feed grains;
                                  ``(II) other agricultural 
                                commodities;
                                  ``(III) other plants and 
                                trees; and
                                  ``(IV) algae; and
                          ``(ii) waste material, including--
                                  ``(I) crop residue;
                                  ``(II) other vegetative waste 
                                material (including wood waste 
                                and wood residues);
                                  ``(III) animal waste and 
                                byproducts (including fats, 
                                oils, greases, and manure);
                                  ``(IV) construction waste; 
                                and
                                  ``(V) food waste and yard 
                                waste.
                  ``(C) Residues and byproducts from wood, 
                pulp, or paper products facilities.''.

  Page 26, line 22, strike ``(g)'' and insert ``(h)''.

  Page 31, line 6, strike ``Where'' and insert ``(A) Except as 
provided in subparagraph (B), where''

  Page 32, after line 4, insert:

          ``(B) In the case of a central procurement State that 
        pursuant to subsection (g) has assumed responsibility 
        for compliance with the requirements of subsection (b), 
        the Commission shall issue directly to the State 
        Federal renewable electricity credits for any renewable 
        electricity for which the State, pursuant to a mandate 
        described in subsection (a)(7), has centrally procured 
        credits or certificates issued based on generation of 
        such renewable electricity.

  Page 32, line 6, strike ``When'' and insert ``Except as 
otherwise provided in paragraph (2), when''.

  Page 43, line 10, after ``supplier'' insert ``, or a central 
procurement State that, pursuant to subsection (g), has assumed 
responsibility for compliance with the requirements of 
subsection (b),''.

  Page 43, line 21, before the comma insert ``and paragraph 
(4)''.

  Page 44, line 5 strike ``(4)'' and insert ``(5) and with 
paragraph (4) where applicable''.

  Page 44, line 7, strike ``(4)'' and insert ``(5), or with 
paragraph (4), where applicable''.

  Page 44, after line 20, insert the following new paragraph 
and redesignate the succeeding paragraph accordingly:

          ``(4) Central procurement states.--
                  ``(A) In general.--A central procurement 
                State that, pursuant to subsection (g), has 
                assumed responsibility for compliance with the 
                requirements of subsection (b) shall deposit 
                any alternative compliance payments under this 
                subsection in a unique fund in the State 
                treasury created and used solely for this 
                purpose.
                  ``(B) Requirements.--As a precondition of 
                making alternative compliance payments under 
                this subsection, a central procurement State 
                shall certify to the Commission, in accordance 
                with such requirements as the Commission may 
                prescribe, that--
                          ``(i) making such payments is the 
                        lowest cost alternative to meet the 
                        requirements of subsection (b); and
                          ``(ii) moneys used by the State to 
                        make such payments are in addition to 
                        any spending that the State, and any 
                        separate entity charged with 
                        administering the State central 
                        procurement requirement identified 
                        under subsection (a)(7), otherwise 
                        collectively would direct to the 
                        purposes identified in paragraph (3).
                  ``(C) Uses.--A central procurement State that 
                makes alternative compliance payments under 
                this subsection shall certify to the Commission 
                that, in using such payments in accordance with 
                paragraph (3), it has, to the extent 
                practicable, maximized the level of deployment 
                of renewable electricity generation (measured 
                in megawatt hours) and electricity savings per 
                dollar that are achieved through such 
                expenditures.

  Page 45, line 5 before the period insert ``and demonstrating 
compliance with the requirements of this subsection''.

  Page 45, after line 5, insert the following new subsection 
and redesignate the succeeding subsections accordingly:

  ``(g) Central Procurement States.--
          ``(1) In general.--A central procurement State may, 
        upon submission of a written request by the Governor of 
        such State to the Commission, assume responsibility for 
        compliance with the requirements of subsection (b) on 
        behalf of retail electric suppliers located in such 
        State, exclusively with regard to the portion of such 
        retail electric suppliers' base amount that is sold 
        within the State.
          ``(2) Demonstration of electricity savings.--If a 
        central procurement State opts to meet any part of the 
        requirements of subsection (b) based on the achievement 
        of demonstrated total annual electricity savings, 
        regardless of whether such State has received delegated 
        authority pursuant to subsection (f)(5), such State 
        shall submit such demonstrated total annual electricity 
        savings to the Commission through an annual report in 
        accordance with requirements prescribed by the 
        Commission by regulation, which shall be of equivalent 
        stringency to those applicable to retail electric 
        suppliers under subsection (f).
          ``(3) Noncompliance.--If a central procurement State 
        that pursuant to this subsection has assumed 
        responsibility for compliance with the requirements of 
        subsection (b), fails to satisfy the requirements of 
        subsection (b) or (h) for any year, the State's 
        assumption of responsibility under this subsection 
        shall be discontinued immediately, and retail electric 
        suppliers located in such State henceforth shall be 
        directly subject to the requirements of this section.

  Page 45, line 16, after ``person'' insert ``, other than any 
central procurement State that pursuant to subsection (g) has 
assumed responsibility for compliance with the requirements of 
subsection (b),''.

  Page 45, line 17, and page 46, line 3, strike ``(g)'' and 
insert ``(h)''.

  Page 45, line 21, strike ``(g)(1)'' and insert ``(h)(1)''.

  Page 46, line 9, after ``person'' insert ``, other than any 
central procurement State that pursuant to subsection (g) has 
assumed responsibility for compliance with the requirements of 
subsection (b),''.

  Page 46, line 20, strike ``(i)'' and insert ``(j)''.

  Page 49, after line 4, insert the following new section and 
make the necessary conforming changes in the table of contents:

SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES.

  (a) Requirement.--For each of calendar years 2012 through 
2039, the President shall ensure that, of the total amount of 
electricity Federal agencies consume in the United States 
during each calendar year, the following percentage shall be 
renewable electricity:



             Calendar year                  Required annual percentage

2012...................................  6.0
2013...................................  6.0
2014...................................  9.5
2015...................................  9.5
2016...................................  13.0
2017...................................  13.0
2018...................................  16.5
2019...................................  16.5
2020...................................  20.0
2021 through 2039......................  20.0


  (b) Definitions.--For purposes of this section:
          (1) Renewable electricity.--The term ``renewable 
        electricity'' shall have the meaning given in section 
        610 of the Public Utility Regulatory Policies Act of 
        1978 (16 U.S.C. 2601 and following).
          (2) Renewable energy resource.--The term ``renewable 
        energy resource'' shall have the meaning given in 
        section 610 of the Public Utility Regulatory Policies 
        Act of 1978 (16 U.S.C. 2601 and following).
  (c) Modification of Requirement.--If the President determines 
that the Federal Government cannot feasibly meet the 
requirement established in subsection (a) in a specific 
calendar year, the President may, by written order, reduce such 
requirement for such calendar year to a percentage the 
President determines the Federal Government can feasibly meet.
  (d) Reports.--Not later than April 1, 2013, and each year 
thereafter, the Secretary of Energy shall provide a report to 
Congress on the percentage of each Federal agency's electricity 
consumption in the United States that was renewable electricity 
in the previous calendar year.
  (e) Contracts for Renewable Energy.--(1) Notwithstanding 
section 501(b)(1)(B) of title 40, United States Code, a 
contract for the acquisition of electricity generated from a 
renewable energy resource for the Federal Government may be 
made for a period of not more than 20 years.
  (2) Not later than 90 days after the date of enactment of 
this subsection, the Secretary of Energy, through the Federal 
Energy Management Program, shall publish a standardized 
renewable energy purchase agreement, setting forth commercial 
terms and conditions, that Federal agencies may use to acquire 
electricity generated from a renewable energy resource.
  (3) The Secretary of Energy shall provide technical 
assistance to assist Federal agencies in implementing this 
subsection.

  Page 96, line 8, insert ``The limitation in the preceding 
sentence shall not apply to projects that meet the eligibility 
criteria in subsection (b)(1)(A)(iv)(I).'' after ``generating 
capacity.''.

  Page 110, strike lines 8 through 15 and insert ``subsection 
(a) for the reconstruction or retooling of facilities for the 
manufacture of plug-in electric drive vehicles or batteries for 
such vehicles that are developed and produced in the United 
States.''.

  Page 116, beginning line 1, strike section 126 and insert the 
following new section:

SEC. 126. DEFINITION OF RENEWABLE BIOMASS.

  Section 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 
7545(o)(1)(I)) is amended to read as follows:
                  ``(I) Renewable biomass.--The term `renewable 
                biomass' means any of the following:
                          ``(i) Materials, pre-commercial 
                        thinnings, or removed invasive species 
                        from National Forest System land and 
                        public lands (as defined in section 103 
                        of the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 
                        1702)), including those that are 
                        byproducts of preventive treatments 
                        (such as trees, wood, brush, thinnings, 
                        chips, and slash), that are removed as 
                        part of a federally recognized timber 
                        sale, or that are removed to reduce 
                        hazardous fuels, to reduce or contain 
                        disease or insect infestation, or to 
                        restore ecosystem health, and that 
                        are--
                                  ``(I) not from components of 
                                the National Wilderness 
                                Preservation System, Wilderness 
                                Study Areas, Inventoried 
                                Roadless Areas, old growth 
                                stands, late-successional 
                                stands (except for dead, 
                                severely damaged, or badly 
                                infested trees), components of 
                                the National Landscape 
                                Conservation System, National 
                                Monuments, National 
                                Conservation Areas, Designated 
                                Primitive Areas, or Wild and 
                                Scenic Rivers corridors;
                                  ``(II) harvested in 
                                environmentally sustainable 
                                quantities, as determined by 
                                the appropriate Federal land 
                                manager; and
                                  ``(III) harvested in 
                                accordance with Federal and 
                                State law, and applicable land 
                                management plans.
                          ``(ii) Any organic matter that is 
                        available on a renewable or recurring 
                        basis from non-Federal land or land 
                        belonging to an Indian or Indian tribe 
                        that is held in trust by the United 
                        States or subject to a restriction 
                        against alienation imposed by the 
                        United States, including--
                                  ``(I) renewable plant 
                                material, including--
                                          ``(aa) feed grains;
                                          ``(bb) other 
                                        agricultural 
                                        commodities;
                                          ``(cc) other plants 
                                        and trees; and
                                          ``(dd) algae; and
                                  ``(II) waste material, 
                                including--
                                          ``(aa) crop residue;
                                          ``(bb) other 
                                        vegetative waste 
                                        material (including 
                                        wood waste and wood 
                                        residues);
                                          ``(cc) animal waste 
                                        and byproducts 
                                        (including fats, oils, 
                                        greases, and manure);
                                          ``(dd) construction 
                                        waste;
                                          ``(ee) food waste and 
                                        yard waste; and
                                          ``(ff) the non-fossil 
                                        biogenic portion of 
                                        municipal solid waste 
                                        and construction, 
                                        demolition, and 
                                        disaster debris.
                          ``(iii) Residues and byproducts from 
                        wood, pulp, or paper products 
                        facilities.''.

  Page 120, after line 16, insert the following new subsection:

  (c) Reduction.--The last sentence of section 211(o)(7)(D) of 
the Clean Air Act (42 U.S.C. 7545(o)(7)(D)) is amended to read 
as follows: ``For any calendar year in which the Administrator 
makes such a reduction, the Administrator shall also reduce the 
applicable volume of renewable fuel and advanced biofuels 
requirement established under paragraph (2)(B) by the same 
volume.''.

  Page 128, line 4, strike ``; and'' and insert a semicolon.

  Page 128, line 17, strike the period at the end and insert 
``; and''.

  Page 128, after line 17, insert the following new paragraph:

          (4) in section 797, by striking ``2011'' and 
        inserting ``2016''.

  Page 129, after line 9, insert the following new sections and 
make the necessary conforming changes in the table of contents:

SEC. 130. FLEET VEHICLES.

  Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 
13258) is amended as follows:
          (1) By adding the following new paragraph at the end 
        of subsection (a):
          ``(6) Repowered or converted alternative fueled 
        vehicles.--As used in this paragraph, the term 
        `repowered or converted alternative fueled vehicle' 
        includes light-, medium- or heavy-duty motor vehicles 
        that have been modified with an EPA or CARB compliant 
        engine or vehicle or aftermarket system so that the 
        vehicle or engine is capable of operating on an 
        alternative fuel.''.
          (2) By adding the following new paragraph at the end 
        of subsection (b):
          ``(3) Repowered or converted vehicles. Not later than 
        January 1, 2010, the Secretary shall allocate credits 
        to fleets that repower or convert an existing vehicle 
        so that it is capable of operating on an alternative 
        fuel. In the case of any medium- or heavy-duty vehicle 
        that is repowered or converted so that it is capable of 
        operating on an alternative fuel, the Secretary shall 
        allocate additional credits for such vehicles if he 
        determines that such vehicles displace more petroleum 
        than light duty alternative fueled vehicles. Such rules 
        shall also include a requirement that such vehicles 
        remain in the fleet for a period of no less than 2 
        years in order to continue to qualify for credit. The 
        Secretary also shall extend the flexibility afforded in 
        this paragraph to Federal fleets subject to the 
        purchase provisions contained in section 303 of this 
        Act.''.

SEC. 130A. REPORT ON NATURAL GAS VEHICLE EMISSIONS REDUCTIONS.

  Within 360 days after the date of enactment of this Act, the 
Administrator, in consultation with the Secretaries of Energy 
and Transportation, and the Administrator of the General 
Services Administration, and after an examination of available 
scientific studies or analysis, shall submit to the Congress a 
report on--
          (1) the contribution that light and heavy duty 
        natural gas vehicles, by category and State, have made 
        during the last decade to the reduction of greenhouse 
        gases and criteria pollutants under the Clean Air Act, 
        and the reduced consumption of petroleum-based fuels;
          (2) the contribution that light and heavy duty 
        natural gas vehicles are expected to make from 2010 to 
        2020 in reducing greenhouse gas and criteria pollutants 
        under the Clean Air Act based, among other things, on 
        additional Federal incentives for the manufacture and 
        deployment of natural gas vehicles provided in this 
        Act, and other Federal legislation; and
          (3) additional Federal measures, including 
        legislation, that could, if implemented, maximize the 
        potential for natural gas used in both stationary and 
        mobile sources to contribute to the reduction of 
        greenhouse gases and criteria pollutants under the 
        Clean Air Act.

  Page 140, line 17, strike ``5 percent'' and insert ``5.5 
percent''.

  Page 141, line 13, insert ``direct provision of allowances,'' 
after ``forgivable loans,''.

  Page 164, strike line 10 and all that follows down through 
line 19 on page 170, insert the following and make the 
necessary conforming changes in the table of contents:

SEC. 151. TRANSMISSION PLANNING AND SITING.

  (a) In General.--Section 216 of the Federal Power Act (16 
U.S.C. 824p) is amended as follows:
          (1) In subsection (b), in paragraph (5), by striking 
        ``; and'' and inserting a semicolon, in paragraph (6) 
        by striking the period and inserting ``; and'' and by 
        adding the following at the end thereof:
          ``(7) the facility is interstate in nature or is an 
        intrastate segment integral to a proposed interstate 
        facility;''.
          (2) In subsection (k), by inserting at the end the 
        following: ``Subsections (a), (b), (c), and (h) of this 
        section shall not apply in the Western 
        interconnection.''.
          (3) In subsections (d) and (e), by striking 
        ``subsection (b)'' in each place and inserting 
        ``subsection (b) or section 216B'', and by striking 
        ``permit'' and inserting ``permit or certificate'' in 
        each place it appears.
  (b) New Sections.--The Federal Power Act (16 U.S.C. 824p) is 
amended by inserting the following new sections after section 
216:

``SEC. 216A TRANSMISSION PLANNING.

  ``(a) Federal Policy for Transmission Planning.--
          ``(1) Objectives.--It is the policy of the United 
        States that regional electric grid planning should 
        facilitate the deployment of renewable and other zero-
        carbon and low-carbon energy sources for generating 
        electricity to reduce greenhouse gas emissions while 
        ensuring reliability, reducing congestion, ensuring 
        cyber-security, minimizing environmental harm, and 
        providing for cost-effective electricity services 
        throughout the United States, in addition to serving 
        the objectives stated in section 217(b)(4).
          ``(2) Options.--In addition to the policy under 
        paragraph (1), it is the policy of the United States 
        that regional electric grid planning to meet these 
        objectives should result from an open, inclusive and 
        transparent process, taking into account all 
        significant demand-side and supply-side options, 
        including energy efficiency, distributed generation, 
        renewable energy and zero-carbon electricity generation 
        technologies, smart-grid technologies and practices, 
        demand response, electricity storage, voltage 
        regulation technologies, high capacity conductors with 
        at least 25 percent greater efficiency than traditional 
        ACSR (aluminum stranded conductors steel reinforced) 
        conductors, superconductor technologies, underground 
        transmission technologies, and new conventional 
        electric transmission capacity and corridors.
  ``(b) Planning.--
          ``(1) Planning principles.--Not later than 1 year 
        after the date of enactment of this section, the 
        Commission shall adopt, after notice and opportunity 
        for comment, national electricity grid planning 
        principles derived from the Federal policy established 
        under subsection (a) to be applied in ongoing and 
        future transmission planning that may implicate 
        interstate transmission of electricity.
          ``(2) Regional planning entities.--Not later than 3 
        months after the date of adoption by the Commission of 
        national electricity grid planning principles pursuant 
        to paragraph (1), entities that conduct or may conduct 
        transmission planning pursuant to State, tribal, or 
        Federal law or regulation, including States, Indian 
        tribes, entities designated by States and Indian 
        tribes, Federal Power Marketing Administrations, 
        transmission providers, operators and owners, regional 
        organizations, and electric utilities, and that are 
        willing to incorporate the national electricity grid 
        planning principles adopted by the Commission in their 
        electric grid planning, shall identify themselves and 
        the regions for which they propose to develop plans to 
        the Commission.
          ``(3) Coordination of regional planning entities.--
        The Commission shall encourage regional planning 
        entities described under paragraph (2) to cooperate and 
        coordinate across regions and to harmonize regional 
        electric grid planning with planning in adjacent or 
        overlapping jurisdictions to the maximum extent 
        feasible. The Commission shall work with States, Indian 
        tribes, Federal land management agencies, State energy, 
        environment, natural resources, and land management 
        agencies and commissions, Federal power marketing 
        administrations, electric utilities, transmission 
        providers, load-serving entities, transmission 
        operators, regional transmission organizations, 
        independent system operators, and other organizations 
        to resolve any conflict or competition among proposed 
        planning entities in order to build consensus and 
        promote the Federal policy established under subsection 
        (a). The Commission shall seek to ensure that planning 
        that is consistent with the national electricity grid 
        planning principles adopted pursuant to paragraph (1) 
        is conducted in all regions of the United States and 
        the territories, but in a manner that, to the extent 
        feasible, avoids uncoordinated planning by more than 
        one planning entity for the same area.
          ``(4) Relation to existing planning policy.--In 
        implementing the Federal policy established under 
        subsection (a), the Commission shall
                  ``(A) incorporate and coordinate with any 
                ongoing planning efforts undertaken pursuant to 
                section 217 and Commission Order No. 890;
                  ``(B) coordinate with the Secretary of Energy 
                in providing to the regional planning entities 
                an annual summary of national energy policy 
                priorities and goals;
                  ``(C) coordinate with corridor designation 
                and planning functions carried out pursuant to 
                section 216 by the Secretary of Energy, who 
                shall provide financial support from available 
                funds to support the purposes of this section; 
                and
                  ``(D) coordinate with the Secretaries of the 
                Interior and Agriculture and Indian tribes in 
                carrying out the Secretaries' or tribal 
                governments' existing responsibilities for the 
                planning or siting of transmission facilities 
                on Federal or tribal lands, consistent with 
                law, policy, and regulations relating to the 
                management of federal public lands .
          ``(5) Assistance.--
                  ``(A) In general.--The Commission shall 
                provide support to and may participate if 
                invited to do so in the regional grid planning 
                processes conducted by regional planning 
                entities. The Secretary of Energy and the 
                Commission may provide planning resources and 
                assistance as required or as requested by 
                regional planning entities, including system 
                data, cost information, system analysis, 
                technical expertise, modeling support, dispute 
                resolution services, and other assistance to 
                regional planning entities, as appropriate.
                  ``(B) Authorization.--There are authorized to 
                be appropriated such sums as may be necessary 
                to carry out this paragraph.
          ``(6) Conflict resolution.--In the event that 
        regional grid plans conflict, the Commission shall 
        assist the regional planning entities in resolving such 
        conflicts in order to achieve the objectives of the 
        Federal policy established under subsection (a).
          ``(7) Submission of plans.--The Commission shall 
        require regional planning entities to submit initial 
        regional electric grid plans to the Commission not 
        later than 18 months after the date the Commission 
        promulgates national electricity grid planning 
        principles pursuant to paragraph (1), with updates to 
        such plans not less than every 3 years thereafter. The 
        Commission shall review such plans for consistency with 
        the national grid planning principles and may return a 
        plan to one or more planning entities for further 
        consideration, along with the Commission's own 
        recommendations for resolution of any conflict or for 
        improvement.
          ``(8) Integration of plans.--Regional electric grid 
        plans should, in general, be developed from sub-
        regional requirements and plans, including planning 
        input reflecting individual utility service areas. 
        Regional plans may then in turn be combined into larger 
        regional plans, up to interconnection-wide and national 
        plans, as appropriate and necessary as determined by 
        the Commission. In no case shall a multi-regional plan 
        impose inclusion of a facility on a region that has 
        submitted a valid plan that, after efforts to resolve 
        the conflict, does not include such facility. To the 
        extent practicable, all plans submitted to the 
        Commission shall be public documents and available on 
        the Commission's Web site.
          ``(9) Multi-regional meetings.--As regional grid 
        plans are submitted to the Commission, the Commission 
        may convene multi-regional meetings to discuss regional 
        grid plan consistency and integration, including 
        requirements for multi-regional projects, and to 
        resolve any conflicts that emerge from such multi-
        regional projects. The Commission shall provide its 
        recommendations for eliminating any inter-regional 
        conflicts.
          ``(10) Report to congress.--Not later than 3 years 
        after the date of enactment of this section and each 3 
        years thereafter, the Commission shall provide a report 
        to Congress containing the results of the regional grid 
        planning process, including summaries of the adopted 
        regional plans and the extent to which the Federal 
        policy objectives in subsection (a) have been 
        successfully achieved. The Commission shall provide an 
        electronic version of its report on its website with 
        links to all regional and sub-regional plans taken into 
        account. The Commission shall note and provide its 
        recommended resolution for any conflicts not resolved 
        during the planning process. The Commission shall make 
        any recommendations to Congress on the appropriate 
        Federal role or support required to address the needs 
        of the electric grid, including recommendations for 
        addressing any needs that are beyond the reach of 
        existing State, tribal, and Federal authority.

``SEC. 216B. SITING AND CONSTRUCTION IN THE WESTERN INTERCONNECTION.

  ``(a) Applicability.--This section applies only to States 
located in the Western Interconnection and does not apply to 
States located in the Eastern Interconnection, to the States of 
Alaska or Hawaii, or to ERCOT.
  ``(b) Certificate of Public Convenience and Necessity.--The 
Commission may, after notice and opportunity for hearing, issue 
a certificate of public convenience and necessity for the 
construction or modification of a transmission facility if the 
Commission finds that--
          ``(1) the facility was identified and included in one 
        or more relevant and final regional or interconnection-
        wide electric grid plans submitted to the Commission 
        pursuant to subsection (b) of 216A;
          ``(2) any conflict among regional electric grid plans 
        concerning the need for the facility was resolved;
          ``(3) such relevant regional electric grid plans are 
        consistent with the national grid planning principles 
        adopted by the Commission pursuant to subsection (b);
          ``(4) the facility was identified as needed in 
        significant measure to meet demand for renewable energy 
        in such plans;
          ``(5) the facility is a multistate facility;
          ``(6) the developer of such facility filed a complete 
        application seeking approval for the siting of the 
        facility with a state commission or other entity that 
        has authority to approve the siting of the facility;
          ``(7) a State commission or other entity that has 
        authority to approve the siting of the facility--
                  ``(A) did not issue a decision on an 
                application seeking approval for the siting of 
                the facility within 1 year after the date the 
                applicant submitted a completed application to 
                the State;
                  ``(B) denied a complete application seeking 
                approval for the siting of the facility; or
                  ``(C) authorized the siting of the facility 
                subject to conditions that unreasonably 
                interfere with the development of the facility; 
                and
          ``(8) the siting of the facility can be accomplished 
        in a manner consistent with the Federal policy 
        established in subsection (a) of section 216A and the 
        national grid planning principles adopted by the 
        Commission pursuant to subsection (b) of section 216A.
  ``(c) State Recommendations on Resource Protection.--In 
issuing a final certificate of public convenience and necessity 
pursuant to subsection (b), the Commission shall--
          ``(1) consider any siting constraints and mitigation 
        measures based on habitat protection, health and safety 
        considerations, environmental considerations, or 
        cultural site protection identified by relevant State 
        or local authorities; and
          ``(2) incorporate those identified siting constraints 
        or mitigation measures, including recommendations 
        related to project routing, as conditions in the final 
        certificate of public convenience and necessity, or if 
        the Commission determines that a recommended siting 
        constraint or mitigation measure is infeasible, 
        excessively costly, or inconsistent with the Federal 
        policy established in subsection (a) of section 216A or 
        the national grid planning principles adopted by the 
        Commission pursuant to subsection (b) of section 216A--
                  ``(A) consult with State regulatory agencies 
                to seek to resolve the issue;
                  ``(B) incorporate as conditions on the 
                certificate such recommended siting constraints 
                or mitigation measures as are determined to be 
                appropriate by the Commission, based on 
                consultation by the Commission with State 
                regulatory agencies, the Federal policy 
                established in subsection (a) of section 216A 
                and the national grid planning principles 
                adopted by the Commission pursuant to 
                subsection (b)of section 216A, and the record 
                before the Commission; and
                  ``(C) if, after consultation, the Commission 
                does not adopt in whole or in part a 
                recommendation of an agency, publish a finding 
                that the adoption of the recommendation is 
                infeasible, not cost effective, or inconsistent 
                with this section or other applicable 
                provisions of law.
  ``(d) Certificate Applications.--(1) An application for a 
preliminary or final certificate of public convenience and 
necessity under this subsection shall be made in writing to the 
Commission.
  ``(2) The Commission shall issue rules specifying--
          ``(A) the form of the application;
          ``(B) the information to be contained in the 
        application; and
          ``(C) the manner of service of notice of the 
        application on interested persons.
  ``(e) Coordination of Federal Authorizations for Transmission 
Facilities.--
          ``(1) In this subsection, the term `Federal 
        authorization' shall have the same meaning and include 
        the same actions as in section 216(h).
          ``(2) The Federal Energy Regulatory Commission shall 
        act as the lead agency for purposes of coordinating all 
        applicable Federal authorizations and related 
        environmental reviews of the facility, provided, 
        however, that to the extent the facility is proposed to 
        be sited on Federal lands, the Department of the 
        Interior will assume such lead-agency duties as agreed 
        between the Commission and the Department of Interior.
          ``(3) To the maximum extent practicable under 
        applicable Federal law, the Commission, and to the 
        extent agreed, the Secretary of Interior, shall 
        coordinate the Federal authorization and review process 
        under this subsection with any Indian tribes, 
        multistate entities, and State agencies that are 
        responsible for conducting any separate permitting and 
        environmental reviews of the facility, to ensure timely 
        and efficient review and permit decisions.
          ``(4)(A) As head of the lead agency, the Chairman of 
        the Commission, in consultation with the Secretary of 
        Interior and with those entities referred to in 
        paragraph (3) that are willing to coordinate their own 
        separate permitting and environmental reviews with the 
        Federal authorization and environmental reviews, shall 
        establish prompt and binding intermediate milestones 
        and ultimate deadlines for the review of, and Federal 
        authorization decisions relating to, the proposed 
        facility.
          ``(B) The Chairman of the Commission, or the 
        Secretary of Interior, as agreed under paragraph (2), 
        shall ensure that, once an application has been 
        submitted with such data as the lead agency considers 
        necessary, all permit decisions and related 
        environmental reviews under all applicable Federal laws 
        shall be completed--
                  ``(i) within 1 year; or
                  ``(ii) if a requirement of another provision 
                of Federal law does not permit compliance with 
                clause (i), as soon thereafter as is 
                practicable.
          ``(C) The Commission shall provide an expeditious 
        pre-application mechanism for prospective applicants to 
        confer with the agencies involved to have each such 
        agency determine and communicate to the prospective 
        applicant not later than 60 days after the prospective 
        applicant submits a request for such information 
        concerning--
                  ``(i) the likelihood of approval for a 
                potential facility; and
                  ``(ii) key issues of concern to the agencies 
                and public.
          ``(5)(A) As lead agency head, the Chairman of the 
        Commission, in consultation with the affected agencies, 
        shall prepare a single environmental review document, 
        which shall be used as the basis for all decisions on 
        the proposed project under Federal law.
          ``(B) The Chairman of the Commission and the heads of 
        other agencies shall streamline the review and 
        permitting of transmission within corridors designated 
        under section 503 of the Federal Land Policy and 
        Management Act (43 U.S.C. 1763) by fully taking into 
        account prior analyses and decisions relating to the 
        corridors.
          ``(C) The document shall include consideration by the 
        relevant agencies of any applicable criteria or other 
        matters as required under applicable law.
          ``(6)(A) If any agency has denied a Federal 
        authorization required for a transmission facility, or 
        has failed to act by the deadline established by the 
        Commission pursuant to this section for deciding 
        whether to issue the authorization, the applicant or 
        any State in which the facility would be located may 
        file an appeal with the President, who shall, in 
        consultation with the affected agency, review the 
        denial or failure to take action on the pending 
        application.
          ``(B) Based on the overall record and in consultation 
        with the affected agency, the President may--
                  ``(i) issue the necessary authorization with 
                any appropriate conditions; or
                  ``(ii) deny the application.
          ``(C) The President shall issue a decision not later 
        than 90 days after the date of the filing of the 
        appeal.
          ``(D) In making a decision under this paragraph, the 
        President shall comply with applicable requirements of 
        Federal law, including any requirements of--
                  ``(i) the National Forest Management Act of 
                1976 (16 U.S.C. 472a et seq.);
                  ``(ii) the Endangered Species Act of 1973 (16 
                U.S.C. 1531 et seq.);
                  ``(iii) the Federal Water Pollution Control 
                Act (33 U.S.C. 1251 et seq.);
                  ``(iv) the National Environmental Policy Act 
                of 1969 (42 U.S.C. 4321 et seq.); and
                  ``(v) the Federal Land Policy and Management 
                Act of 1976 (43 U.S.C. 1701 et seq.).
          ``(7)(A) Not later than 18 months after August 8, 
        2005, the Commission or, as requested, the Secretary or 
        Interior, shall issue any regulations necessary to 
        implement this subsection.
          ``(B)(i) Not later than 1 year after August 8, 2005, 
        the Commission, the Secretary of Interior, and the 
        heads of all Federal agencies with authority to issue 
        Federal authorizations shall enter into a memorandum of 
        understanding to ensure the timely and coordinated 
        review and permitting of electricity transmission 
        facilities.
          ``(ii) Interested Indian tribes, multistate entities, 
        and State agencies may enter the memorandum of 
        understanding.
          ``(C) The head of each Federal agency with authority 
        to issue a Federal authorization shall designate a 
        senior official responsible for, and dedicate 
        sufficient other staff and resources to ensure, full 
        implementation of the regulations and memorandum 
        required under this paragraph.
          ``(8)(A) Each Federal land use authorization for an 
        electricity transmission facility shall be issued--
                  ``(i) for a duration, as determined by the 
                Secretary of Interior, commensurate with the 
                anticipated use of the facility; and
                  ``(ii) with appropriate authority to manage 
                the right-of-way for reliability and 
                environmental protection.
          ``(B) On the expiration of the authorization 
        (including an authorization issued before August 8, 
        2005), the authorization shall be reviewed for renewal 
        taking fully into account reliance on such electricity 
        infrastructure, recognizing the importance of the 
        authorization for public health, safety, and economic 
        welfare and as a legitimate use of Federal land.
          ``(9) In exercising the responsibilities under this 
        section, the Commission shall consult regularly with--
                  ``(A) electric reliability organizations 
                (including related regional entities) approved 
                by the Commission; and
                  ``(B) Transmission Organizations approved by 
                the Commission.''.

  Page 218, line 12, strike ``concentration of firms'' and 
insert ``network of entities''.

  Page 243, after line 2, insert the following new section:

SEC. 175. HIGH EFFICIENCY GAS TURBINE RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION.

  (a) In General.--The Secretary of Energy shall carry out a 
multiyear, multiphase program of research, development, and 
technology demonstration to improve the efficiency of gas 
turbines used in combined cycle power generation systems and to 
identify the technologies that ultimately will lead to gas 
turbine combined cycle efficiency of 65 percent.
  (b) Program Elements.--The program under this section shall--
          (1) support first-of-a-kind engineering and detailed 
        gas turbine design for utility-scale electric power 
        generation, including--
                  (A) high temperature materials, including 
                superalloys, coatings, and ceramics;
                  (B) improved heat transfer capability;
                  (C) manufacturing technology required to 
                construct complex three-dimensional geometry 
                parts with improved aerodynamic capability;
                  (D) combustion technology to produce higher 
                firing temperature while lowering nitrogen 
                oxide and carbon monoxide emissions per unit of 
                output;
                  (E) advanced controls and systems 
                integration;
                  (F) advanced high performance compressor 
                technology; and
                  (G) validation facilities for the testing of 
                components and subsystems;
          (2) include technology demonstration through 
        component testing, subscale testing, and full scale 
        testing in existing fleets;
          (3) include field demonstrations of the developed 
        technology elements so as to demonstrate technical and 
        economic feasibility; and
          (4) assess overall combined cycle system performance.
  (c) Program Goals.--The goals of the multiphase program 
established under subsection (a) shall be--
          (1) in phase I--
                  (A) to develop the conceptual design of 
                advanced high efficiency gas turbines that can 
                achieve at least 62 percent combined cycle 
                efficiency on a lower heating value basis; and
                  (B) to develop and demonstrate the technology 
                required for advanced high efficiency gas 
                turbines that can achieve at least 62 percent 
                combined cycle efficiency on a lower heating 
                value basis; and
          (2) in phase II, to develop the conceptual design for 
        advanced high efficiency gas turbines that can achieve 
        at least 65 percent combined cycle efficiency on a 
        lower heating value basis.
  (d) Proposals.--Within 180 days after the date of enactment 
of this section, the Secretary shall solicit proposals for 
conducting activities under this section. In selecting 
proposals, the Secretary shall emphasize--
          (1) the extent to which the proposal will stimulate 
        the creation or increased retention of jobs in the 
        United States; and
          (2) the extent to which the proposal will promote and 
        enhance United States technology leadership.
  (e) Cost Sharing.--Section 988 of the Energy Policy Act of 
2005 (42 U.S.C. 16352) shall apply to an award of financial 
assistance made under this section.
  (f) Limits on Participation.--The limits on participation 
applicable under section 999E of the Energy Policy Act of 2005 
(42 U.S.C. 16375) shall apply to financial assistance awarded 
under this section.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary for carrying out this section 
$65,000,000 for each of fiscal years 2011 through 2014.

  Page 256, line 2, strike ``and''.

  Page 256, after line 2, insert the following new paragraph:

          (11) sufficient availability of financial services 
        and support to small businesses developing and 
        deploying clean energy technologies through 
        partnerships with private entities that have relevant 
        credit expertise; and

  Page 256, line 3, redesignate paragraph (11) as paragraph 
(12).

  Page 285, lines 13 through 15, amend paragraph (4) to read as 
follows:

          ``(4) The Clean Energy Deployment Administration 
        established under section 186 of the American Clean 
        Energy and Security Act of 2009.''.

  Page 288, line 15, insert ``, including minority-owned and 
woman-owned,'' after ``to entrepreneurs''.

  Page 296, after line 6, insert the following new sections:

SEC. 199. DEVELOPMENT CORPORATION FOR RENEWABLE POWER BORROWING 
                    AUTHORITY.

  (a) Determination.--No later than 6 months after the date of 
enactment of this Act, the Secretary of Energy, in coordination 
with the Secretary of Commerce, shall--
          (1) determine any geographic area within the 
        contiguous United States that lacks a Federal power 
        marketing agency;
          (2) develop a plan or criteria for the geographic 
        areas identified in paragraph (1) regarding investment 
        in renewable energy and associated infrastructure 
        within an area identified in paragraph (1); and
          (3) identify any Federal agency within an area in 
        paragraph (1) that has, or could develop, the ability 
        to facilitate the investment in paragraph (2).
  (b) Report.--The Secretary of Energy, in coordination with 
the Secretary of Commerce, shall provide the determinations 
made under subsection (a) to the Committee on Energy and 
Commerce of the House of Representatives.
  (c) Establishment.--Based upon the determinations made 
pursuant to subsection (a), the Secretary of Energy, in 
coordination with the Secretary of Commerce, shall recommend to 
the Committee on Energy and Commerce of the House of 
Representatives the establishment of any new Federal lending 
authority, including authorization of additional lending 
authority for existing Federal agencies, not to exceed 
$3,500,000,000 per geographic area identified in subsection 
(a)(1).
  (d) Authorization.--$25,000,000 is authorized to be 
appropriated for fiscal year 2010 to carry out the provisions 
of this section.

SEC. 199A. STUDY.

  Not later than February 1, 2011, the Secretary of Energy 
shall transmit to the Congress a report showing the results of 
a study on the use of thorium-fueled nuclear reactors for 
national energy needs. Such report shall include a response to 
the International Atomic Energy Agency study entitled ``Thorium 
fuel cycle - Potential benefits and challenges'' (IAEA-TECDOC-
1450).

  Page 329, line 4, insert ``Owners of public housing or 
assisted housing receiving funding through the REEP program 
shall agree to continue to provide affordable housing 
consistent with the provisions of the authorizing legislation 
governing each program for an additional period commensurate 
with the funding received, as determined in accordance with 
guidelines established by the Secretary of Housing and Urban 
Development.'' after ``Federal assistance.''.

  Page 344, after line 10, insert the following new 
subparagraph:

                  (C) Disaster damaged buildings.--Any source 
                of funds, including Federal funds provided 
                through the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act, shall qualify as 
                the building owner's 50 percent contribution, 
                in order to match the contribution of REEP 
                funds, so long as the REEP funds are only used 
                to improve the energy efficiency of the 
                buildings being reconstructed. In addition, the 
                appropriate Federal agencies providing 
                assistance to building owners through the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act shall make information 
                available, following a disaster, to building 
                owners rebuilding disaster damaged buildings 
                with assistance from the Act, that REEP funds 
                may be used for energy efficiency improvements.

  Page 344, lines 11 and 18, redesignate subparagraphs (C) and 
(D) as subparagraphs (D) and (E), respectively.

  Page 335, line 19, strike ``and''.

  Page 335, line 25, strike the period and insert ``; and''.

  Page 335, after line 25, add the following new paragraph:

          (3) agree to make not less than 10 percent of 
        allowance value received pursuant to section 132(c)(2) 
        for dedicated funding of its REEP program available on 
        a preferential basis for retrofit projects proposed for 
        public housing and assisted housing, provided that--
                  (A) none of such funds shall be used for 
                demolition of such housing;
                  (B) such retrofits not shall not be used to 
                justify any increase in rents charged to 
                residents of such housing; and
                  (C) owners of such housing shall agree to 
                continue to provide affordable housing 
                consistent with the provisions of the 
                authorizing legislation governing each program 
                for an additional period commensurate with the 
                funding received.

  Page 345, lines 7 through 11, strike ``The Administrator,'' 
and all that follows through ``other residential buildings.''.

  Page 367, after line 7, insert the following new subsection:

  (m) New Construction.--This section shall apply only to 
construction beginning after the date of enactment of this Act.

  Page 382, after line 10, insert the following new sections:

SEC. 207. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.

  (a) Grant Program Authorized.--
          (1) Grant authorization.--The Secretary of Housing 
        and Urban Development shall to the extent amounts are 
        made available for grants under this section provide 
        grants to local building code enforcement departments.
          (2) Competitive awards.--The Secretary shall award 
        grants under paragraph (1) on a competitive basis 
        taking into consideration the following:
                  (A) The financial need of each building code 
                enforcement department.
                  (B) The benefit to the jurisdiction of having 
                an adequately funded building code enforcement 
                department.
                  (C) The demonstrated ability of each building 
                code enforcement department to work 
                cooperatively with other local code enforcement 
                offices, health departments, and local 
                prosecutorial agencies.
          (3) Maximum amount.--The maximum amount of any grant 
        awarded under this subsection shall not exceed 
        $1,000,000.
          (4) Coordination.--The Secretary of Housing and Urban 
        Development shall coordinate with the Secretary of 
        Energy to ensure that any unnecessarily duplicative 
        funding through grants under this section of activities 
        otherwise funded through the Department of Energy is 
        minimized or eliminated.
  (b) Required Elements in Grant Proposals.--In order to be 
eligible for a grant under subsection (a), a building code 
enforcement department of a jurisdiction shall submit to the 
Secretary the following:
          (1) A demonstration of the jurisdiction's needs in 
        executing building code enforcement administration.
          (2) A plan for the use of any funds received from a 
        grant under this section that addresses the needs 
        discussed in paragraph (1) and that is consistent with 
        the authorized uses established in subsection (c).
          (3) A plan for local governmental actions to be taken 
        to establish and sustain local building code 
        enforcement administration functions, without 
        continuing Federal support, at a level at least 
        equivalent to that proposed in the grant application.
          (4) A plan to create and maintain a program of public 
        outreach that includes a regularly updated and readily 
        accessible means of public communication, interaction, 
        and reporting regarding the services and work of the 
        building code enforcement department to be supported by 
        the grant.
          (5) A plan for ensuring the timely and effective 
        administrative enforcement of building safety and fire 
        prevention violations.
  (c) Use of Funds; Matching Funds.--
          (1) Authorized uses.--Amounts from grants awarded 
        under subsection (a) may be used by the grant recipient 
        to supplement existing State or local funding for 
        administration of building code enforcement, or to 
        supplement allowance value received pursuant to this 
        Act for implementation and enforcement of energy 
        efficiency building codes. Such amounts may be used to 
        increase staffing, provide staff training, increase 
        staff competence and professional qualifications, or 
        support individual certification or departmental 
        accreditation, or for capital expenditures specifically 
        dedicated to the administration of the building code 
        enforcement department.
          (2) Additional requirement.--Each building code 
        enforcement department receiving a grant under 
        subsection (a) shall empanel a code administration and 
        enforcement team consisting of at least 1 full-time 
        building code enforcement officer, a city planner, and 
        a health planner or similar officer.
          (3) Matching funds required.--
                  (A) In general.--To be eligible to receive a 
                grant under this section, a building code 
                enforcement department shall provide matching, 
                non-Federal funds in the following amount:
                          (i) In the case of a building code 
                        enforcement department serving an area 
                        with a population of more than 50,000, 
                        an amount equal to not less than 50 
                        percent of the total amount of any 
                        grant to be awarded under this section.
                          (ii) In the case of a building code 
                        enforcement department serving an area 
                        with a population of between 20,001 and 
                        50,000, an amount equal to not less 
                        than 25 percent of the total amount of 
                        any grant to be awarded under this 
                        section.
                          (iii) In the case of a building code 
                        enforcement department serving an area 
                        with a population of less than 20,000, 
                        an amount equal to not less than 12.5 
                        percent of the total amount of any 
                        grant to be awarded under this section.
                  (B) Economic distress.--
                          (i) In general.--The Secretary may 
                        waive the matching fund requirements 
                        under subparagraph (A), and institute, 
                        by regulation, new matching fund 
                        requirements based upon the level of 
                        economic distress of the jurisdiction 
                        in which the local building code 
                        enforcement department seeking such 
                        grant is located.
                          (ii) Content of regulations.--Any 
                        regulations instituted under clause (i) 
                        shall include--
                                  (I) a method that allows for 
                                a comparison of the degree of 
                                economic distress among the 
                                local jurisdictions of grant 
                                applicants, as measured by the 
                                differences in the extent of 
                                growth lag, the extent of 
                                poverty, and the adjusted age 
                                of housing in such 
                                jurisdiction; and
                                  (II) any other factor 
                                determined to be relevant by 
                                the Secretary in assessing the 
                                comparative degree of economic 
                                distress among such 
                                jurisdictions.
          (4) In-kind contributions.--In determining the non-
        Federal share required to be provided under paragraph 
        (3), the Secretary shall consider in-kind 
        contributions, not to exceed 50 percent of the amount 
        that the department contributes in non-Federal funds.
          (5) Waiver of matching requirement.--The Secretary 
        shall waive the matching fund requirements under 
        paragraph (3) for any recipient jurisdiction that has 
        dedicated all building code permitting fees to the 
        conduct of local building code enforcement.
  (d) Evaluation and Report.--
          (1) In general.--Grant recipients under this section 
        shall--
                  (A) be obligated to fully account and report 
                for the use of all grants funds; and
                  (B) provide a report to the Secretary on the 
                effectiveness of the program undertaken by the 
                grantee and any other criteria requested by the 
                Secretary for the purpose of indicating the 
                effectiveness of, and ideas for, refinement of 
                the grant program.
          (2) Report.--The report required under paragraph 
        (1)(B) shall include a discussion of--
                  (A) the specific capabilities and functions 
                in local building code enforcement 
                administration that were addressed using funds 
                received under this section;
                  (B) the lessons learned in carrying out the 
                plans supported by the grant; and
                  (C) the manner in which the programs 
                supported by the grant are to be maintained by 
                the grantee.
          (3) Content of reports.--The Secretary shall--
                  (A) require each recipient of a grant under 
                this section to file interim and final reports 
                under paragraph (2) to ensure that grant funds 
                are being used as intended and to measure the 
                effectiveness and benefits of the grant 
                program; and
                  (B) develop and maintain a means whereby the 
                public can access such reports, at no cost, via 
                the Internet.
  (e) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Building code enforcement.--The term ``building 
        code enforcement'' means the enforcement of any code, 
        adopted by a State or local government, that regulates 
        the construction of buildings and facilities to 
        mitigate hazards to life or property. Such term 
        includes building codes, electrical codes, energy 
        codes, fire codes, fuel gas codes, mechanical codes, 
        and plumbing codes.
          (2) Building code enforcement department.--The term 
        ``building code enforcement department'' means an 
        inspection or enforcement agency of a jurisdiction that 
        is responsible for conducting building code 
        enforcement.
          (3) Jurisdiction.--The term ``jurisdiction'' means a 
        city, county, parish, city and county authority, or 
        city and parish authority having local authority to 
        enforce building codes and regulations and to collect 
        fees for building permits.
          (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
  (f) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated $20,000,000 for each of fiscal years 2010 
        through 2014 to the Secretary of Housing and Urban 
        Development to carry out the provisions of this 
        section.
          (2) Reservation.--From the amount made available 
        under paragraph (1), the Secretary may reserve not more 
        than 5 percent for administrative costs.
          (3) Availability.--Any funds appropriated pursuant to 
        paragraph (1) shall remain available until expended.

SEC. 208. SOLAR ENERGY SYSTEMS BUILDING PERMIT REQUIREMENTS FOR RECEIPT 
                    OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.

  Section 104 of the Housing and Community Development Act of 
1974 (42 U.S.C. 5304) is amended by adding at the end the 
following new subsection:
  ``(n) Requirements for Building Permits Regarding Solar 
Energy Systems.--
          ``(1) In general.--A grant under section 106 for a 
        fiscal year may be made only if the grantee certifies 
        to the Secretary that--
                  ``(A) in the case of a grant under section 
                106(a) for any Indian tribe or insular area, 
                during such fiscal year the cost of any permit 
                or license, for construction or installation of 
                any solar energy system for any structure, that 
                is required by the tribe or insular area or by 
                any other unit of general local government or 
                other political subdivision of such tribe or 
                insular area, complies with paragraph (2);
                  ``(B) in the case of a grant under section 
                106(b) for any metropolitan city or urban 
                county, during such fiscal year the cost of any 
                permit or license, for construction or 
                installation of any solar energy system for any 
                structure, that is required by the metropolitan 
                city or urban county, or by any other political 
                subdivision of such city or county, complies 
                with paragraph (2); and
                  ``(C) in the case of a grant under section 
                106(d) for any State, during such fiscal year 
                the cost of any permit or license, for 
                construction or installation of any solar 
                energy system for any structure, that is 
                required by the State, or by any other unit of 
                general local government within any 
                nonentitlement area of such State, or other 
                political subdivision within any nonentitlement 
                area of such State or such a unit of general 
                local government, complies with paragraph (2).
          ``(2) Limitation on cost.--The cost of permit or 
        license for construction or installation of any solar 
        energy system complies with this paragraph only if such 
        cost does not exceed the following amount:
                  ``(A) Residential structures.--In the case of 
                a structure primarily for residential use, 
                $500.
                  ``(B) Nonresidential structures.--In the case 
                of a structure primarily for nonresidential 
                use, 1.0 percent of the total cost of the 
                installation or construction of the solar 
                energy system, but not in excess of $10,000.
          ``(3) Noncompliance.--If the Secretary determines 
        that a grantee of a grant made under section 106 is not 
        in compliance with a certification under paragraph 
        (1)--
                  ``(A) the Secretary shall notify the grantee 
                of such determination; and
                  ``(B) if the grantee has not corrected such 
                noncompliance before the expiration of the 6-
                month period beginning upon notification under 
                subparagraph (A), such grantee shall not be 
                eligible for 5 percent of any amounts awarded 
                under a grant under section 106 for the first 
                fiscal year that commences after the expiration 
                of such 6-month period.
          ``(4) Solar energy system.--For purposes of this 
        subsection, the term `solar energy system' means, with 
        respect to a structure, equipment that uses solar 
        energy to generate electricity for, or to heat or cool 
        (or provide hot water for use in), such structure.''.

SEC. 209. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL INSTALLATION OF 
                    SOLAR ENERGY SYSTEM.

  (a) Regulations.--Within 180 days after the enactment of this 
Act, the Secretary of Housing and Urban Development, in 
consultation with the Secretary of Energy, shall issue 
regulations--
          (1) to prohibit any private covenant, contract 
        provision, lease provision, homeowners' association 
        rule or bylaw, or similar restriction, that impairs the 
        ability of the owner or lessee of any residential 
        structure designed for occupancy by 1 family to 
        install, construct, maintain, or use a solar energy 
        system on such residential property; and
          (2) to require that whenever any such covenant, 
        provision, rule or bylaw, or restriction requires 
        approval for the installation or use of a solar energy 
        system, the application for approval shall be processed 
        and approved by the appropriate approving entity in the 
        same manner as an application for approval of an 
        architectural modification to the property, and shall 
        not be willfully avoided or delayed.
  (b) Contents.--The regulations required under subsection (a) 
shall provide that--
          (1) such a covenant, provision, rule or bylaw, or 
        restriction impairs the installation, construction, 
        maintenance, or use of a solar energy system if it--
                  (A) unreasonably delays or prevents 
                installation, maintenance, or use;
                  (B) unreasonably increases the cost of 
                installation, maintenance, or use; or
                  (C) precludes use of such a system; and
          (2) any fee or cost imposed on the owner or lessee of 
        such a residential structure by such a covenant, 
        provision, rule or bylaw, or restriction shall be 
        considered unreasonable if--
                  (A) such fee or cost is not reasonable in 
                comparison to the cost of the solar energy 
                system or the value of its use; or
                  (B) treatment of solar energy systems by the 
                covenant, provision, rule or bylaw, or 
                restriction is not reasonable in comparison 
                with treatment of comparable systems by the 
                same covenant, provision, rule or bylaw, or 
                restriction.
  (c) Solar Energy System.--For purposes of this section, the 
term ``solar energy system'' means, with respect to a 
structure, equipment that uses solar energy to generate 
electricity for, or to heat or cool (or provide hot water for 
use in), such structure.

  Page 387, line 8, strike ``2011'' and insert ``2016''.

  Page 387, line 15, strike ``2013'' and insert ``2018''.

  Page 387, line 21, through page 388, line 4, strike paragraph 
(3).

  Page 388, lines 5 and 13, redesignate paragraphs (4) and (5) 
as paragraphs (3) and (4), respectively.

  Page 388, line 7, strike ``2011'' and insert ``2016''.

  Page 388, line 12, insert ``Outdoor luminaires used for 
roadway lighting applications shall be exempt the 2 light level 
requirement.'' after ``luminaire under test.''.

  Page 388, line 13, strike ``2017'' and insert ``2022''.

  Page 388, lines 15 and 16, strike ``paragraphs (3) and (4)'' 
and insert ``paragraph (3)''.

  Page 389, line 1, strike ``(3)'' and insert ``(2)''.

  Page 389, line 7, strike ``2020'' and insert ``2025''.

  Page 389, line 12, strike ``2012'' and insert ``2017''.

  Page 455, line 19, through page 459, line 13, amend section 
217 to read as follows:

SEC. 217. EARLY ADOPTER WATER EFFICIENT PRODUCT INCENTIVE PROGRAMS.

  (a) Definitions.--In this section:
          (1) Eligible entity.--The term ``eligible entity'' 
        means a State government, local or county government, 
        tribal government, wastewater or sewerage utility, 
        municipal water authority, energy utility, water 
        utility, or nonprofit organization that meets the 
        requirements of subsection (b).
          (2) Incentive program.--The term ``incentive 
        program'' means a program for administering financial 
        incentives for consumer purchase and installation of 
        residential water efficient products and services as 
        described in subsection (b)(1).
          (3) Residential water efficient product or service.--
        The term ``residential water efficient product or 
        service'' means a product or service for a single-
        family or multifamily residence or its landscape that 
        is rated for water efficiency and performance--
                  (A) by the WaterSense program; or
                  (B) where a WaterSense specification does not 
                exist, by an incentive program.
        Categories of water efficient products and services may 
        include faucets, irrigation technologies and services, 
        point-of-use water treatment devices, reuse and 
        recycling technologies, toilets, and showerheads.
          (4) Watersense program.--The term ``WaterSense 
        program'' means the program established by section 215 
        of this Act.
  (b) Eligible Entities.--An entity shall be eligible to 
receive an allocation under subsection (c) if the entity--
          (1) establishes (or has established) an incentive 
        program to provide rebates, vouchers, other financial 
        incentives, or direct installs to consumers for the 
        purchase of residential water efficient products or 
        services;
          (2) submits an application for the allocation at such 
        time, in such form, and containing such information as 
        the Administrator may require; and
          (3) provides assurances satisfactory to the 
        Administrator that the entity will use the allocation 
        to supplement, but not supplant, funds made available 
        to carry out the incentive program.
  (c) Amount of Allocations.--For each fiscal year, the 
Administrator shall determine the amount to allocate to each 
eligible entity to carry out subsection (d) taking into 
consideration--
          (1) the population served by the eligible entity in 
        the most recent calendar year for which data are 
        available;
          (2) the targeted population of the eligible entity's 
        incentive program, such as general households, low-
        income households, or first-time homeowners, and the 
        probable effectiveness of the incentive program for 
        that population;
          (3) for existing programs, the effectiveness of the 
        incentive program in encouraging the adoption of water 
        efficient products and services; and
          (4) any prior year's allocation to the eligible 
        entity that remains unused.
  (d) Use of Allocated Funds.--Funds allocated to an entity 
under subsection (c) may be used to pay up to 50 percent of the 
cost of establishing and carrying out an incentive program.
  (e) Fixture Recycling.--Entities are encouraged to promote or 
implement fixture recycling programs to manage the disposal of 
older fixtures replaced due to the incentive program under this 
section.
  (f) Issuance of Incentives.--Financial incentives may be 
provided to consumers that meet the requirements of the 
incentive program. The entity may issue all financial 
incentives directly to consumers or, with approval of the 
Administrator, delegate some or all financial incentives 
administration to other organizations including, but not 
limited to, local governments, municipal water authorities, and 
water utilities. The amount of a financial incentives shall be 
determined by the entity, taking into consideration--
          (1) the amount of the allocation to the entity under 
        subsection (c);
          (2) the amount of any Federal, State, or other 
        organization's tax or financial incentive available for 
        the purchase of the residential water efficient product 
        or service;
          (3) the amount necessary to change consumer behavior 
        to purchase water efficient products and services; and
          (4) the consumer expenditures for onsite preparation, 
        assembly, and original installation of the product.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to the Administrator to carry out this section 
$50,000,000 for fiscal year 2010, $100,000,000 for fiscal year 
2011, $150,000,000 for fiscal year 2012, $100,000,000 for 
fiscal year 2013, and $50,000,000 for fiscal year 2014.

  Page 465, line 22, insert ``, including cost effectiveness 
from the consumer's perspective, and relative length of time 
for consumers to recover costs attributable to the energy 
efficient features,'' after ``relative energy efficiency''.

  Page 496, before line 13, insert the following new sections:

SEC. 246. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND PROGRAM.

  The National Institute of Standards and Technology Act (15 
U.S.C. 271 et seq.) is amended by inserting after section 26 
the following:

``SEC. 27. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND PROGRAM.

  ``(a) Purposes.--The purposes of this section are as follows:
          ``(1) To develop the long-term manufacturing capacity 
        of the United States.
          ``(2) To create jobs through the retooling and 
        expansion of manufacturing facilities to produce clean 
        energy technology products and energy efficient 
        products.
          ``(3) To improve the long-term competitiveness of 
        domestic manufacturing by increasing the energy 
        efficiency of manufacturing facilities.
          ``(4) To assist small and medium-sized manufacturers 
        diversify operations to respond to emerging clean 
        energy technology product markets.
  ``(b) Definitions.--In this section:
          ``(1) Clean energy technology product.--The term 
        `clean energy technology product' means technology 
        products relating to the following:
                  ``(A) Wind turbines.
                  ``(B) Solar energy.
                  ``(C) Fuel cells.
                  ``(D) Advanced batteries, battery systems, or 
                storage devices.
                  ``(E) Biomass equipment.
                  ``(F) Geothermal equipment.
                  ``(G) Advanced biofuels.
                  ``(H) Ocean energy equipment.
                  ``(I) Carbon capture and storage.
                  ``(J) Such other products as the Secretary 
                determines--
                          ``(i) relate to the production, use, 
                        transmission, storage, control, or 
                        conservation of energy;
                          ``(ii) reduce greenhouse gas 
                        concentrations;
                          ``(iii) achieve the earliest and 
                        maximum emission reductions within a 
                        reasonable period per dollar invested;
                          ``(iv) result in the fewest non-
                        greenhouse gas environmental impacts; 
                        and
                          ``(v) either--
                                  ``(I) reduce the need for 
                                additional energy supplies by--
                                          ``(aa) using existing 
                                        energy supplies with 
                                        greater efficiency; or
                                          ``(bb) by 
                                        transmitting, 
                                        distributing, or 
                                        transporting energy 
                                        with greater 
                                        effectiveness through 
                                        the infrastructure of 
                                        the United States; or
                                  ``(II) diversity the sources 
                                of energy supply of the United 
                                States--
                                          ``(aa) to strengthen 
                                        energy security; and
                                          ``(bb) to increase 
                                        supplies with a 
                                        favorable balance of 
                                        environmental effects 
                                        if the entire 
                                        technology system is 
                                        considered.
          ``(2) Energy efficient product.--The term `energy 
        efficient product' means a product that, as determined 
        by the Secretary in consultation with the Secretary of 
        Energy--
                  ``(A) consumes significantly less energy than 
                the average amount that all similar products 
                consumed on the day before the date of the 
                enactment of this Act; or
                  ``(B) is a component, system, or group of 
                subsystems that is designed, developed, and 
                validated to optimize the energy efficiency of 
                a product.
          ``(3) Hollings manufacturing extension center.--The 
        term `Hollings Manufacturing Extension Center' means a 
        center established under section 25.
          ``(4) Hollings manufacturing partnership program.--
        The term `Hollings Manufacturing Partnership Program' 
        means the program established under sections 25 and 26.
          ``(5) Program.--The term `Program' means the grant 
        program established pursuant to subsection (c)(1).
          ``(6) Revolving loan fund.--The term `revolving loan 
        fund' means a revolving loan fund described in 
        subsection (d).
          ``(7) Secretary.--Except as otherwise provided, the 
        term `Secretary' means the Secretary of Commerce.
          ``(8) Small or medium-sized manufacturer.--The term 
        `small or medium-sized manufacturer' means a 
        manufacturer that employs fewer than 500 full-time 
        equivalent employees at a manufacturing facility that 
        is not owned or controlled by an automobile 
        manufacturer.
  ``(c) Grant Program.--
          ``(1) Establishment.--Not later than 120 days after 
        the date of the enactment of this section, the 
        Secretary shall establish a program under which the 
        Secretary shall award grants to States to establish 
        revolving loan funds to provide loans to small and 
        medium-sized manufacturers to finance the cost of----
                  ``(A) reequipping, expanding, or establishing 
                (including applicable engineering costs) a 
                manufacturing facility in the United States to 
                produce--
                          ``(i) clean energy technology 
                        products;
                          ``(ii) energy efficient products; or
                          ``(iii) integral component parts of 
                        clean energy technology products or 
                        energy efficient products; or
                  ``(B) reducing the energy intensity or 
                greenhouse gas production of a manufacturing 
                facility in the United States, including using 
                energy intensive feedstocks.
          ``(2) Maximum amount.--The Secretary may not award a 
        grant under the Program in an amount that exceeds 
        $500,000,000 in any fiscal year.
  ``(d) Criteria for Awarding Grants.--
          ``(1) Matching funds.--The Secretary may make a grant 
        to a State under the Program only if the State agrees 
        to ensure that for each loan provided by the State 
        under the Program, not less than 20 percent of the 
        amount of each loan will come from a non-Federal 
        source.
          ``(2) Administrative costs.--A State receiving a 
        grant under the Program may only use such amount of the 
        grant for the costs of administering the revolving loan 
        fund as the Secretary shall provide in regulations.
          ``(3) Application.--Each State seeking a grant under 
        the Program shall submit to the Secretary an 
        application therefor in such form and in such manner as 
        the Secretary considers appropriate.
          ``(4) Evaluation.--The Secretary shall evaluate and 
        prioritize an application submitted by a State for a 
        grant under the Program on the basis of--
                  ``(A) the description of the revolving loan 
                fund to be established with the grant and how 
                such revolving loan fund will achieve the 
                purposes described in subsection (a);
                  ``(B) whether the State will be able to 
                provide loans from the revolving loan fund to 
                small or medium-sized manufacturers before the 
                date that is 120 days after the date on which 
                the State receives the grant;
                  ``(C) a description of how the State will 
                administer the revolving loan fund in 
                coordination with other State and Federal 
                programs, including programs administered by 
                the Assistant Secretary for Economic 
                Development;
                  ``(D) a description of the actual or 
                potential clean energy manufacturing supply 
                chains, including significant component parts, 
                in the region served by the revolving loan 
                fund;
                  ``(E) how the State will target the provision 
                of loans under the Program to manufacturers 
                located in regions characterized by high 
                unemployment and sudden and severe economic 
                dislocation, in particular where mass layoffs 
                have resulted in a precipitous increase in 
                unemployment;
                  ``(F) the availability of a skilled 
                manufacturing workforce in the region served by 
                the revolving loan fund and the capacity of the 
                region's workforce and education systems to 
                provide pathways for unemployed or low-income 
                workers into skilled manufacturing employment;
                  ``(G) a description of how the State will 
                target loans to small or medium-sized 
                manufacturers who are--
                          ``(i) manufacturers of automobile 
                        components; and
                          ``(ii) either--
                                  ``(I) increasing the energy 
                                efficiency of their 
                                manufacturing facilities; or
                                  ``(II) retooling to 
                                manufacture clean energy 
                                products or energy efficient 
                                products, including 
                                manufacturing components to 
                                improve the compliance of an 
                                automobile with fuel economy 
                                standards prescribed under 
                                section 32902 of title 49, 
                                United States Code;
                  ``(H) a description of how the State will use 
                the loan fund to achieve the earliest and 
                maximum greenhouse gas emission reductions 
                within a reasonable period of time per dollar 
                invested and with the fewest non-greenhouse gas 
                environmental impacts; and
                  ``(I) such other factors as the Secretary 
                considers appropriate to ensure that grants 
                awarded under the Program effectively and 
                efficiently achieve the purposes described in 
                subsection (a).
  ``(e) Revolving Loan Funds.--
          ``(1) In general.--A State receiving a grant under 
        the Program shall establish, maintain, and administer a 
        revolving loan fund in accordance with this subsection.
          ``(2) Deposits.--A revolving loan fund shall consist 
        of the following:
                  ``(A) Amounts from grants awarded under this 
                section.
                  ``(B) All amounts held or received by the 
                State incident to the provision of loans 
                described in subsection (f), including all 
                collections of principal and interest.
          ``(3) Expenditures.--Amounts in the revolving loan 
        fund shall be available for the provision and 
        administration of loans in accordance with subsection 
        (f).
          ``(4) Limitation.--No funds provided pursuant to this 
        section may be leveraged through use of tax-exempt 
        bonding authority by a State or a political subdivision 
        of a State.
  ``(f) Loans.--
          ``(1) In general.--A State receiving a grant under 
        this section shall use the amount in the revolving loan 
        fund to provide loans to small and medium-sized 
        manufacturers as described in subsection (c)(1).
          ``(2) Loan terms and conditions.--The following shall 
        apply with respect to loans provided under paragraph 
        (1):
                  ``(A) Terms.--Loans shall have a term 
                determined by the State receiving the grant as 
                follows:
                          ``(i) For fixed assets, the term of 
                        the loan shall not exceed the useful 
                        life of the asset and shall be less 
                        than 15 years.
                          ``(ii) For working capital, the term 
                        of the loan shall not exceed 36 months.
                  ``(B) Interest rates.--Loans shall bear an 
                interest rate determined by the State receiving 
                the grant as follows:
                          ``(i) The interest rate shall enable 
                        the loan recipient to accomplish the 
                        activities described in subparagraphs 
                        (A) and (B) of subsection (c)(1).
                          ``(ii) The interest rate may be set 
                        below-market interest rates.
                          ``(iii) The interest rate may not be 
                        less than zero percent.
                          ``(iv) The interest rate may not 
                        exceed the current prime rate plus 500 
                        basis points.
                  ``(C) Description and budget for use of loan 
                funds.--Each recipient of a loan from a State 
                under the Program shall develop and submit to 
                the State and the Secretary a description and 
                budget for the use of loan amounts, including a 
                description of the following:
                          ``(i) Any new business expected to be 
                        developed with the loan.
                          ``(ii) Any improvements to 
                        manufacturing operations to be 
                        developed with the loan.
                          ``(iii) Any technology expected to be 
                        commercialized with the loan.
                  ``(D) Priority in review and preference in 
                selection for certain loan applicants.--
                          ``(i) Review.--In reviewing 
                        applications submitted by small or 
                        medium-sized manufacturers for a loan, 
                        a recipient of a grant under the 
                        Program shall give priority to small or 
                        medium-sized manufacturers described in 
                        clause (iii).
                          ``(ii) Selection.--In selecting small 
                        or medium-sized manufacturers to 
                        receive a loan, a recipient of a grant 
                        under the Program shall give preference 
                        to small or medium-sized manufacturers 
                        described in clause (iii).
                          ``(iii) Priority and preferred small 
                        or medium-sized manufacturers.--A small 
                        or medium-sized manufacturer described 
                        in this clause is a manufacturer that--
                                  ``(I) is certified by a 
                                Hollings Manufacturing 
                                Extension Center or a 
                                manufacturing-related local 
                                intermediary designated by the 
                                Secretary for purposes of 
                                providing such certification; 
                                or
                                  ``(II) provides individuals 
                                employed at the manufacturing 
                                facilities of the 
                                manufacturer--
                                          ``(aa) pay in amounts 
                                        that are, on average, 
                                        equal to or more than 
                                        the average wage of an 
                                        individual working in a 
                                        manufacturing facility 
                                        in the State; and
                                          ``(bb) health 
                                        benefits.
                          ``(iv) Certification by hollings 
                        manufacturing extension center.--A 
                        Hollings Manufacturing Extension Center 
                        or other entity designated by the 
                        Secretary for purposes of providing 
                        certification under clause (iii)(I) 
                        shall only certify applications for a 
                        loan after carrying out a qualitative 
                        and quantitative review of the 
                        applicant's business strategy, 
                        manufacturing operations, and 
                        technological ability to contribute to 
                        the purposes described in subsection 
                        (a).
                  ``(E) Repayment upon relocation outside 
                united states.--
                          ``(i) In general.--If a person 
                        receives a loan under paragraph (1) to 
                        finance the cost of reequipping, 
                        expanding, or establishing a 
                        manufacturing facility as described in 
                        subsection (c)(1)(A) or to reduce the 
                        energy intensity of a manufacturing 
                        facility and such person relocates the 
                        production activities of such 
                        manufacturing facility outside the 
                        United States during the term of the 
                        loan, the recipient shall repay such 
                        loan in full with interest as described 
                        in clause (ii) and for a duration 
                        described in clause (iii).
                          ``(ii) Payment of interest.--Any 
                        amount owed by the recipient of a loan 
                        under paragraph (1) who is required to 
                        repay the loan under clause (i) shall 
                        bear interest at a penalty rate 
                        determined by the Secretary to deter 
                        recipients of loans under paragraph (1) 
                        from relocating production activities 
                        as described in clause (i).
                          ``(iii) Period of repayment.--
                        Repayment of a loan under clause (i) 
                        shall be for a duration determined by 
                        the Secretary.
                  ``(F) Compliance with wage rate 
                requirements.--Each recipient of a loan shall 
                undertake and agree to incorporate or cause to 
                be incorporated into all contracts for 
                construction, alteration or repair, which are 
                paid for in whole or in part with funds 
                obtained pursuant to such loan, a requirement 
                that all laborers and mechanics employed by 
                contractors and subcontractors performing 
                construction, alteration or repair shall be 
                paid wages at rates not less than those 
                determined by the Secretary of Labor, in 
                accordance with subchapter IV of chapter 31 of 
                title 40, United States Code (known as the 
                `Davis-Bacon Act'), to be prevailing for the 
                corresponding classes of laborers and mechanics 
                employed on projects of a character similar to 
                the contract work in the same locality in which 
                the work is to be performed. The Secretary of 
                Labor shall have, with respect to the labor 
                standards specified in this subparagraph, the 
                authority and functions set forth in 
                Reorganization Plan Numbered 14 of 1950 (15 
                F.R. 3176; 64 Stat. 1267) and section 3145 of 
                title 40, United States Code.
                  ``(G) Annual reports by loan recipients.--
                Each recipient of a loan issued by a State 
                under paragraph (1) shall, not less frequently 
                than once each year during the term of the 
                loan, submit to such State a report containing 
                such information as the Secretary may specify 
                for purposes of the Program, including 
                information that the Secretary can use to 
                determine whether a recipient of a loan is 
                required to repay the loan under subparagraph 
                (E).
          ``(3) Annual reports by grant recipients.--Each 
        recipient of a grant under the Program shall, not less 
        frequently than once each year, submit to the Secretary 
        a report on the impact of each loan issued by the State 
        under the Program and the aggregate impact of all loans 
        so issued, including the following:
                  ``(A) The sales increased or retained.
                  ``(B) Cost savings or costs avoided.
                  ``(C) Additional investment encouraged.
                  ``(D) Jobs created or retained.
  ``(g) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $15,000,000,000 
for each of fiscal years 2010 and 2011.''.

SEC. 247. CLEAN ENERGY AND EFFICIENCY MANUFACTURING PARTNERSHIPS.

  (a) Hollings Manufacturing Partnership Program.--Section 
25(b) of the National Institute of Standards and Technology Act 
(15 U.S.C. 278k(b)) 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) the establishment of a clean energy 
        manufacturing supply chain initiative--
                  ``(A) to support manufacturers in their 
                identification of and diversification to new 
                markets, including support for manufacturers 
                transitioning to the use of clean energy supply 
                chains;
                  ``(B) to assist manufacturers improve their 
                competitiveness by reducing energy intensity 
                and greenhouse gas production, including the 
                use of energy intensive feedstocks;
                  ``(C) to increase adoption and implementation 
                of innovative manufacturing technologies;
                  ``(D) to coordinate and leverage the 
                expertise of the National Laboratories and 
                Technology Centers and the Industrial 
                Assessment Centers of the Department of Energy 
                to meet the needs of manufacturers; and
                  ``(E) to identify, assist, and certify 
                manufacturers seeking loans under section 
                27(e)(1).''.
  (b) Reduction in Cost Share Requirements.--Section 25(c) of 
such Act (15 U.S.C. 278k(c)) is amended--
          (1) in paragraph (1), by inserting ``or as provided 
        in paragraph (5)'' after ``not to exceed six years'';
          (2) in paragraph (3)(B), by striking ``not less than 
        50 percent of the costs incurred for the first 3 years 
        and an increasing share for each of the last 3 years'' 
        and inserting ``50 percent of the costs incurred or 
        such lesser percentage of the costs incurred as 
        determined appropriate by the Secretary by rule''; and
          (3) in paragraph (5)--
                  (A) by striking ``at declining levels'';
                  (B) by striking ``one third'' and inserting 
                ``50 percent''; and
                  (C) by inserting ``, or such lesser 
                percentage as determined appropriate by the 
                Secretary by rule,'' after ``maintenance 
                costs''.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Commerce for the Hollings 
Manufacturing Partnership Program authorized under sections 25 
of the National Institute of Standards and Technology Act (15 
U.S.C. 278k) and for the provision of assistance under section 
26 of such Act (15 U.S.C. 278l)--
          (1) $200,000,000 for fiscal year 2010;
          (2) $250,000,000 for fiscal year 2011;
          (3) $300,000,000 for fiscal year 2012;
          (4) $350,000,000 for fiscal year 2013; and
          (5) $400,000,000 for fiscal year 2014.

SEC. 248. TECHNICAL AMENDMENTS.

  (a) Amendment to National Institute of Standards and 
Technology Act.--Section 25 of the National Institute of 
Standards and Technology Act (15 U.S.C. 278k(b)) is amended--
          (1) in subsection (a), by striking ``(hereafter in 
        this Act referred to as the `Centers')''; and
          (2) by adding at the end the following:
  ``(g) Designation.--
          ``(1) Hollings manufacturing partnership program.--
        The program under this section shall be known as the 
        `Hollings Manufacturing Partnership Program'.
          ``(2) Hollings manufacturing extension centers.--The 
        Regional Centers for the Transfer of Manufacturing 
        Technology created and supported under subsection (a) 
        shall be known as the `Hollings Manufacturing Extension 
        Centers' (in this Act referred to as the `Centers').''.
  (b) Amendment to Consolidated Appropriations Act, 2005.--
Division B of title II of the Consolidated Appropriations Act, 
2005 (Public Law 108-447; 118 Stat. 2879; 15 U.S.C. 278k note) 
is amended under the heading ``industrial technology services'' 
by striking ``2007: Provided further, That'' and all that 
follows through ``Extension Centers.'' and inserting ``2007.''.

  Page 504, after line 8, insert the following new section:

SEC. 265. CONSUMER BEHAVIOR RESEARCH.

  (a) In General.--The Secretary of Energy is authorized to 
establish a research program to identify the factors affecting 
consumer actions to conserve energy and make improvements in 
energy efficiency. Through the program the Secretary will make 
grants to public and private institutions of higher education 
to study the effects of consumer behavior on total energy use; 
potential energy savings from changes in consumption habits; 
the ability to reduce greenhouse gas emissions through changes 
in energy consumption habits; increase public awareness of 
Federal climate adaptation and mitigation programs; and the 
potential for alterations in consumer behavior to further 
American energy independence. Grants may also fund projects 
that evaluate or inform public knowledge of the effects of 
energy consumption habits on these topics.
  (b) Grants.--The purpose of the program is to provide grants 
to public and private institutions of higher education to carry 
out projects which will improve understanding of the effects of 
consumer behavior on energy consumption and conservation. The 
Secretary shall make grants on a competitive basis for--
          (1) studies of the effects of consumer habits on 
        energy consumption and conservation;
          (2) development of strategies that communicate the 
        importance of energy efficiency and conservation to 
        consumers;
          (3) identification of best practices to improve 
        consumer energy use habits;
          (4) education programs that inform consumers about 
        the implications of consumption habits on energy use 
        and climate change;
          (5) evaluation of the effectiveness of programs 
        designed to promote public awareness of Federal 
        Government climate adaptation and mitigation 
        activities; and
          (6) other projects that advance the mission of the 
        program.
  (c) Report.--The Secretary of Energy shall provide Congress 
with a report on progress towards establishing the program 
within 120 days after the date of enactment of this Act.
  (d) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section.

  Page 521, after line 3, insert the following:

SEC. 275. INDUSTRIAL ENERGY EFFICIENCY EDUCATION AND TRAINING 
                    INITIATIVE.

  (a) In General.--The Secretary of Energy shall carry out a 
national education and awareness program for the purpose of 
informing building, facility, and industrial plant owners and 
managers and decisionmakers, government leaders, and industry 
leaders about the large energy-saving potential of greater use 
of mechanical insulation, and other benefits.
  (b) Purpose and Goals.--
          (1) Purpose.--The purpose of the initiative shall be 
        to increase the energy efficiency of the commercial and 
        industrial sectors through an ongoing program that will 
        include--
                  (A) education and training sessions;
                  (B) Web-based information; and
                  (C) advertising.
          (2) Goals.--The goals of the initiative shall be to--
                  (A) educate and motivate commercial building 
                owners and industrial facility managers to 
                utilize mechanical insulation in new and 
                existing facilities;
                  (B) preserve and create jobs while reducing 
                energy and greenhouse gas emissions;
                  (C) create a safer working environment and 
                make businesses more competitive in a global 
                economy; and
                  (D) motivate and empower the industry to make 
                better use of mechanical insulation through 
                awareness, education, and training.
  (c) Report.--Not later than July 1, 2013, the Secretary shall 
submit to Congress a report describing the extent by which the 
initiative has been enacted and the actual and projected 
effectiveness of the program under this section, including the 
energy efficiency, greenhouse gas emissions reductions, cost 
savings, and safety benefits at manufacturing facilities, power 
plants, refineries, hospitals, universities, government 
buildings, and other commercial and industrial locations.
  (d) Authorization of Appropriations.--There are authorized to 
be appropriated $3,500,000 for each of fiscal years 2010 
through 2014 to carry out this section.   The Secretary may 
enter into a cooperative agreement, including grant funding, 
with an industry association and union working collaboratively 
and having expertise on the installation, maintenance, measure 
of efficiencies and standards, and certification of mechanical 
insulation in buildings and facilities.
  (e) Termination of Authority.--The program carried out under 
this section shall terminate on December 31, 2014.

SEC. 276. SENSE OF CONGRESS.

  It is the sense of Congress that the United States should--
          (1) continue to actively promote, within the 
        International Civil Aviation Organization, the 
        development of a global framework for the regulation of 
        greenhouse gas emissions from civil aircraft that 
        recognizes the uniquely international nature of the 
        industry and treats commercial aviation industries in 
        all countries fairly; and
          (2) work with foreign governments towards a global 
        agreement that reconciles foreign carbon emissions 
        reduction programs to minimize duplicative requirements 
        and avoids unnecessary complication for the aviation 
        industry, while still achieving the environmental 
        goals.

     Subtitle H--Green Resources for Energy Efficient Neighborhoods

SEC. 281. SHORT TITLE.

  This subtitle may be cited as the ``Green Resources for 
Energy Efficient Neighborhoods Act of 2009'' or the ``GREEN Act 
of 2009''.

SEC. 282. DEFINITIONS.

  For purposes of this subtitle, the following definitions 
shall apply:
          (1) Green building standards.--The term ``green 
        building standards'' means standards to require use of 
        sustainable design principles to reduce the use of 
        nonrenewable resources, encourage energy-efficient 
        construction and rehabilitation and the use of 
        renewable energy resources, minimize the impact of 
        development on the environment, and improve indoor air 
        quality.
          (2) HUD.--The term ``HUD'' means the Department of 
        Housing and Urban Development.
          (3) HUD assistance.--The term ``HUD assistance'' 
        means financial assistance that is awarded, 
        competitively or noncompetitively, allocated by 
        formula, or provided by HUD through loan insurance or 
        guarantee.
          (4) Nonresidential structure.--The term 
        ``nonresidential structures'' means only nonresidential 
        structures that are appurtenant to single-family or 
        multifamily housing residential structures, or those 
        that are funded by the Secretary of Housing and Urban 
        Development through the HUD Community Development Block 
        Grant program.
          (5) Secretary.--The term ``Secretary'', unless 
        otherwise specified, means the Secretary of Housing and 
        Urban Development.

SEC. 283. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION INCENTIVES 
                    FOR HUD PROGRAMS.

  (a) In General.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall issue such 
regulations as may be necessary to establish annual energy 
efficiency participation incentives to encourage participants 
in programs administered by the Secretary, including recipients 
under programs for which HUD assistance is provided, to achieve 
substantial improvements in energy efficiency.
  (b) Requirement for Appropriation of Funds.--The requirement 
under subsection (a) for the Secretary to provide annual energy 
efficiency participation incentives pursuant to the provisions 
of this subtitle shall be subject to the annual appropriation 
of necessary funds.

SEC. 284. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS FOR 
                    ADDITIONAL CREDIT.

  (a) Basic HUD Standard.--
          (1) Residential structures.--A residential single-
        family or multifamily structure shall be considered to 
        comply with the energy efficiency standards under this 
        subsection if--
                  (A) the structure complies with an energy 
                efficiency building code that has been 
                certified as in compliance with section 304 of 
                the Energy Conservation and Production Act (42 
                U.S.C. 6833) as amended by section 201 of this 
                Act, or a national energy efficiency building 
                code adopted pursuant to that section;
                  (B) the structure complies with the 
                applicable provisions of the American Society 
                of Heating, Refrigerating, and Air-Conditioning 
                Engineers Standard 90.1-2007, as such standard 
                or successor standard is in effect for purposes 
                of this section pursuant subsection (c);
                  (C) the structure complies with the 
                applicable provisions of the 2009 International 
                Energy Conservation Code, as such standard or 
                successor standard is in effect for purposes of 
                this section pursuant subsection (c);
                  (D) in the case only of an existing 
                structure, where determined cost effective, the 
                structure has undergone rehabilitation or 
                improvements, completed after the date of the 
                enactment of this Act, and the energy 
                consumption for the structure has been reduced 
                by at least 20 percent from the previous level 
                of consumption, as determined in accordance 
                with energy audits performed both before and 
                after any rehabilitation or improvements 
                undertaken to reduce such consumption; or
                  (E) the structure complies with the 
                applicable provisions of such other energy 
                efficiency requirements, standards, checklists, 
                or ratings systems as the Secretary may adopt 
                and apply by regulation, as may be necessary, 
                for purposes of this section for specific types 
                of residential single-family or multifamily 
                structures or otherwise, except that the 
                Secretary shall make a determination regarding 
                whether to adopt and apply any such 
                requirements, standards, checklists, or rating 
                system for purposes of this section not later 
                than the expiration of the 180-day period 
                beginning upon the date of receipt of any 
                written request, made in such form as the 
                Secretary shall provide, for such adoption and 
                application.
        In addition to compliance with any of subparagraphs (A) 
        through (E), the Secretary shall by regulation require, 
        for any newly constructed residential single-family or 
        multifamily structure to be considered to comply with 
        the energy efficiency standards under this subsection, 
        that the structure have appropriate electrical outlets 
        with the facility and capacity to recharge a standard 
        electric passenger vehicle, including an electric 
        hybrid vehicle, where such vehicle would normally be 
        parked.
          (2) Nonresidential structures.--For purposes of this 
        section, the Secretary shall identify and adopt by 
        regulation, as may be necessary, energy efficiency 
        requirements, standards, checklists, or rating systems 
        applicable to nonresidential structures that are 
        constructed or rehabilitated with HUD assistance. A 
        nonresidential structure shall be considered to comply 
        with the energy efficiency standards under this 
        subsection if the structure complies with the 
        applicable provisions of any such energy efficiency 
        requirements, standards, checklist, or rating systems 
        identified and adopted by the Secretary pursuant to 
        this paragraph, as such standards are in effect for 
        purposes of this section pursuant to subsection (c).
          (3) Effect.--Nothing in this subsection may be 
        construed to require any structure to comply with any 
        standard established or adopted pursuant to this 
        subsection, or identified in this subsection, or to 
        provide any benefit or credit under any Federal program 
        for any structure that complies with any such standard, 
        except to the extent that--
                  (A) any provision of law other than this 
                subsection provides a benefit or credit under a 
                Federal program for compliance with a standard 
                established or adopted pursuant to this 
                subsection, or identified in this subsection; 
                or
                  (B) the Secretary specifically provides 
                pursuant to subsection (c) for the 
                applicability of such standard.
  (b) Enhanced Energy Efficiency Standards for Purposes of 
Providing Additional Credit Under Certain Federally Assisted 
Housing Programs.--
          (1) Purpose and effect.--
                  (A) Purpose.--The purpose of this subsection 
                is to establish energy efficiency and 
                conservation standards and green building 
                standards that--
                          (i) provide for greater energy 
                        efficiency and conservation in 
                        structures than is required for 
                        compliance with the energy efficiency 
                        standards under subsection (a) and then 
                        in effect;
                          (ii) provide for green and 
                        sustainable building standards not 
                        required by such standards; and
                          (iii) can be used in connection with 
                        Federal housing, housing finance, and 
                        development programs to provide 
                        incentives for greater energy 
                        efficiency and conservation and for 
                        green and sustainable building methods, 
                        elements, practices, and materials.
                  (B) Effect.--Nothing in this subsection may 
                be construed to require any structure to comply 
                with any standard established pursuant to this 
                subsection or to provide any benefit or credit 
                under any Federal program for any structure, 
                except to the extent that any provision of law 
                other than this subsection provides a benefit 
                or credit under a Federal program for 
                compliance with a standard established pursuant 
                to this subsection.
          (2) Compliance.--A residential or nonresidential 
        structure shall be considered to comply with the 
        enhanced energy efficiency and conservation standards 
        or the green building standards under this subsection, 
        to the extent that such structure complies with the 
        applicable provisions of the standards under paragraph 
        (3) or (4), respectively (as such standards are in 
        effect for purposes of this section, pursuant to 
        paragraph (7)), in a manner that is not required for 
        compliance with the energy efficiency standards under 
        subsection (a) then in effect and subject to the 
        Secretary's determination of which standards are 
        applicable to which structures.
          (3) Energy efficiency and conservation standards.--
        The energy efficiency and conservation standards under 
        this paragraph are as follows:
                  (A) Residential structures.--With respect to 
                residential structures:
                          (i) New construction.--For new 
                        construction, the Energy Star standards 
                        established by the Environmental 
                        Protection Agency, as such standards 
                        are in effect for purposes of this 
                        subsection pursuant to paragraph (7);
                          (ii) Existing structures.--For 
                        existing structures, a reduction in 
                        energy consumption from the previous 
                        level of consumption for the structure, 
                        as determined in accordance with energy 
                        audits performed both before and after 
                        any rehabilitation or improvements 
                        undertaken to reduce such consumption, 
                        that exceeds the reduction necessary 
                        for compliance with the energy 
                        efficiency standards under subsection 
                        (a) then in effect and applicable to 
                        existing structures.
                  (B) Nonresidential structures.--With respect 
                to nonresidential structures, such energy 
                efficiency and conservation requirements, 
                standards, checklists, or rating systems for 
                nonresidential structures as the Secretary 
                shall identify and adopt by regulation, as may 
                be necessary, for purposes of this paragraph.
          (4) Green building standards.--The green building 
        standards under this paragraph are as follows:
                  (A) The national Green Communities criteria 
                checklist for residential construction that 
                provides criteria for the design, development, 
                and operation of affordable housing, as such 
                checklist or successor checklist is in effect 
                for purposes of this section pursuant to 
                paragraph (7).
                  (B) The gold certification level for the LEED 
                for New Construction rating system, the LEED 
                for Homes rating system, the LEED for Core and 
                Shell rating system, as applicable, as such 
                systems or successor systems are in effect for 
                purposes of this section pursuant to paragraph 
                (7).
                  (C) The Green Globes assessment and rating 
                system of the Green Buildings Initiative.
                  (D) For manufactured housing, energy star 
                rating with respect to fixtures, appliances, 
                and equipment in such housing, as such standard 
                or successor standard is in effect for purposes 
                of this section pursuant to paragraph (7).
                  (E) The National Green Building Standard.
                  (F) Any other requirements, standards, 
                checklists, or rating systems for green 
                building or sustainability as the Secretary may 
                identify and adopt by regulation, as may be 
                necessary for purposes of this paragraph, 
                except that the Secretary shall make a 
                determination regarding whether to adopt and 
                apply any such requirements, standards, 
                checklist, or rating system for purposes of 
                this section not later than the expiration of 
                the 180-day period beginning upon date of 
                receipt of any written request, made in such 
                form as the Secretary shall provide, for such 
                adoption and application.
          (5) Green building.--For purposes of this subsection, 
        the term ``green building'' means, with respect to 
        standards for structures, standards to require use of 
        sustainable design principles to reduce the use of 
        nonrenewable resources, minimize the impact of 
        development on the environment, and to improve indoor 
        air quality.
          (6) Energy audits.--The Secretary shall establish 
        standards and requirements for energy audits for 
        purposes of paragraph (3)(A)(ii) and, in establishing 
        such standards, may consult with any advisory 
        committees established pursuant to section 285(c)(2) of 
        this subtitle.
          (7) Applicability and updating of standards.--
                  (A) Applicability.--Except as provided in 
                subparagraph (B), the requirements, standards, 
                checklists, and rating systems referred to in 
                this subsection that are in effect for purposes 
                of this subsection are such requirements, 
                standards, checklists, and systems are as in 
                existence upon the date of the enactment of 
                this Act.
                  (B) Updating.--For purposes of this section, 
                the Secretary may adopt and apply by 
                regulation, as may be necessary, future 
                amendments and supplements to, and editions of, 
                the requirements, standards, checklists, and 
                rating systems referred to in this subsection, 
                including applicable energy efficiency building 
                codes that are certified as in compliance with 
                section 304 of the Energy Conservation and 
                Production Act (42 U.S.C. 6833) as amended by 
                section 201 of this Act, or national energy 
                efficiency building codes adopted pursuant to 
                that section.
  (c) Authority of Secretary To Apply Standards to Federally 
Assisted Housing and Programs.--
          (1) HUD housing and programs.--The Secretary of 
        Housing and Urban Development may, by regulation, 
        provide for the applicability of the energy efficiency 
        standards under subsection (a) or the enhanced energy 
        efficiency and conservation standards and green 
        building standards under subsection (b), or both, with 
        respect to any covered federally assisted housing 
        described in paragraph (3)(A) or any HUD assistance, 
        subject to minimum Federal codes or standards then in 
        effect.
          (2) Rural housing.--The Secretary of Agriculture may, 
        by regulation, provide for the applicability of the 
        energy efficiency standards under subsection (a) or the 
        enhanced energy efficiency and conservation standards 
        and green building standards under subsection (b), or 
        both, with respect to any covered federally assisted 
        housing described in paragraph (3)(B) or any assistance 
        provided with respect to rural housing by the Rural 
        Housing Service of the Department of Agriculture, 
        subject to minimum Federal codes or standards then in 
        effect.
          (3) Covered federally assisted housing.--For purposes 
        of this subsection, the term ``covered federally 
        assisted housing'' means--
                  (A) any residential or nonresidential 
                structure for which any HUD assistance is 
                provided; and
                  (B) any new construction of single-family 
                housing (other than manufactured homes) subject 
                to mortgages 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.).

SEC. 285. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAM FOR 
                    MULTIFAMILY HOUSING PROJECTS ASSISTED WITH PROJECT-
                    BASED RENTAL ASSISTANCE.

  (a) Authority.--For multifamily housing projects for which 
project-based rental assistance is provided under a covered 
multifamily assistance program, the Secretary shall, subject to 
the availability of amounts provided in advance in 
appropriation Acts, carry out a program to demonstrate the 
effectiveness of funding a portion of the costs of meeting the 
enhanced energy efficiency standards under section 284(b). At 
the discretion of the Secretary, the demonstration program may 
include incentives for housing that is assisted with Indian 
housing block grants provided pursuant to the Native American 
Housing Assistance and Self-Determination Act of 1996, but only 
to the extent that such inclusion does not violate such Act, 
its regulations, and the goal of such Act of tribal self-
determination.
  (b) Goals.--The demonstration program under this section 
shall be carried out in a manner that--
          (1) protects the financial interests of the Federal 
        Government;
          (2) reduces the proportion of funds provided by the 
        Federal Government and by owners and residents of 
        multifamily housing projects that are used for costs of 
        utilities for the projects;
          (3) encourages energy efficiency and conservation by 
        owners and residents of multifamily housing projects 
        and installation of renewable energy improvements, such 
        as improvements providing for use of solar, wind, 
        geothermal, or biomass energy sources;
          (4) creates incentives for project owners to carry 
        out such energy efficiency renovations and improvements 
        by allowing a portion of the savings in operating costs 
        resulting from such renovations and improvements to be 
        retained by the project owner, notwithstanding 
        otherwise applicable limitations on dividends;
          (5) promotes the installation, in existing 
        residential buildings, of energy-efficient and cost-
        effective improvements and renewable energy 
        improvements, such as improvements providing for use of 
        solar, wind, geothermal, or biomass energy sources;
          (6) tests the efficacy of a variety of energy 
        efficiency measures for multifamily housing projects of 
        various sizes and in various geographic locations;
          (7) tests methods for addressing the various, and 
        often competing, incentives that impede owners and 
        residents of multifamily housing projects from working 
        together to achieve energy efficiency or conservation; 
        and
          (8) creates a database of energy efficiency and 
        conservation, and renewable energy, techniques, energy-
        savings management practices, and energy efficiency and 
        conservation financing vehicles.
  (c) Approaches.--In carrying out the demonstration program 
under this section, the Secretary may--
          (1) enter into agreements with the Building America 
        Program of the Department of Energy and other consensus 
        committees under which such programs, partnerships, or 
        committees assume some or all of the functions, 
        obligations, and benefits of the Secretary with respect 
        to energy savings;
          (2) establish advisory committees to advise the 
        Secretary and any such third-party partners on 
        technological and other developments in the area of 
        energy efficiency and the creation of an energy 
        efficiency and conservation credit facility and other 
        financing opportunities, which committees shall include 
        representatives of homebuilders, realtors, architects, 
        nonprofit housing organizations, environmental 
        protection organizations, renewable energy 
        organizations, and advocacy organizations for the 
        elderly and persons with disabilities; any advisory 
        committees established pursuant to this paragraph shall 
        not be subject to the Federal Advisory Committee Act (5 
        U.S.C. App.);
          (3) approve, for a period not to exceed 10 years, 
        additional adjustments in the maximum monthly rents or 
        additional project rental assistance, or additional 
        Indian housing block grant funds under the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996, as applicable, for dwelling units in 
        multifamily housing projects that are provided project-
        based rental assistance under a covered multifamily 
        assistance program, in such amounts as may be necessary 
        to amortize a portion of the cost of energy efficiency 
        and conservation measures for such projects;
          (4) develop a competitive process for the award of 
        such additional assistance for multifamily housing 
        projects seeking to implement energy efficiency, 
        renewable energy sources, or conservation measures; and
          (5) waive or modify any existing statutory or 
        regulatory provision that would otherwise impair the 
        implementation or effectiveness of the demonstration 
        program under this section, including provisions 
        relating to methods for rent adjustments, comparability 
        standards, maximum rent schedules, and utility 
        allowances; notwithstanding the preceding provisions of 
        this paragraph, the Secretary may not waive any 
        statutory requirement relating to fair housing, 
        nondiscrimination, labor standards, or the environment, 
        except pursuant to existing authority to waive 
        nonstatutory environmental and other applicable 
        requirements.
  (d) Requirement.--During the 4-year period beginning 12 
months after the date of the enactment of this Act, the 
Secretary shall carry out demonstration programs under this 
section with respect to not fewer than 50,000 dwelling units.
  (e) Selection.--
          (1) Scope.--In order to provide a broad and 
        representative profile for use in designing a program 
        which can become operational and effective nationwide, 
        the Secretary shall carry out the demonstration program 
        under this section with respect to dwelling units 
        located in a wide variety of geographic areas and 
        project types assisted by the various covered 
        multifamily assistance programs and using a variety of 
        energy efficiency and conservation and funding 
        techniques to reflect differences in climate, types of 
        dwelling units and technical and scientific 
        methodologies, and financing options. The Secretary 
        shall ensure that the geographic areas included in the 
        demonstration program include dwelling units on Indian 
        lands (as such term is defined in section 2601 of the 
        Energy Policy Act of 1992 (25 U.S.C. 3501), to the 
        extent that dwelling units on Indian land have the type 
        of residential structures that are the focus of the 
        demonstration program.
          (2) Priority.--The Secretary shall provide priority 
        for selection for participation in the program under 
        this section based on the extent to which, as a result 
        of assistance provided, the project will comply with 
        the energy efficiency standards under subsection (a), 
        (b), or (c) of section 284 of this subtitle.
  (f) Use of Existing Partnerships.--To the extent feasible, 
the Secretary shall--
          (1) utilize the Partnership for Advancing Technology 
        in Housing of the Department of Housing and Urban 
        Development to assist in carrying out the requirements 
        of this section and to provide education and outreach 
        regarding the demonstration program authorized under 
        this section; and
          (2) consult with the Secretary of Energy, the 
        Administrator of the Environmental Protection Agency, 
        and the Secretary of the Army regarding utilizing the 
        Building America Program of the Department of Energy, 
        the Energy Star Program, and the Army Corps of 
        Engineers, respectively, to determine the manner in 
        which they might assist in carrying out the goals of 
        this section and providing education and outreach 
        regarding the demonstration program authorized under 
        this section.
  (g) Limitation.--No amounts made available under the American 
Recovery and Reinvestment Act of 2009 (Public Law 111-5) may be 
used to carry out the demonstration program under this section.
  (h) Reports.--
          (1) Annual.--Not later than the expiration of the 2-
        year beginning upon the date of the enactment of this 
        Act, and for each year thereafter during the term of 
        the demonstration program, the Secretary shall submit a 
        report to the Congress annually that describes and 
        assesses the demonstration program under this section.
          (2) Final.--Not later than 6 months after the 
        expiration of the 4-year period described in subsection 
        (d), the Secretary shall submit a final report to the 
        Congress assessing the demonstration program, which--
                  (A) shall assess the potential for expanding 
                the demonstration program on a nationwide 
                basis; and
                  (B) shall include descriptions of--
                          (i) the size of each multifamily 
                        housing project for which assistance 
                        was provided under the program;
                          (ii) the geographic location of each 
                        project assisted, by State and region;
                          (iii) the criteria used to select the 
                        projects for which assistance is 
                        provided under the program;
                          (iv) the energy efficiency and 
                        conservation measures and financing 
                        sources used for each project that is 
                        assisted under the program;
                          (v) the difference, before and during 
                        participation in the demonstration 
                        program, in the amount of the monthly 
                        assistance payments under the covered 
                        multifamily assistance program for each 
                        project assisted under the program;
                          (vi) the average length of the term 
                        of the such assistance provided under 
                        the program for a project;
                          (vii) the aggregate amount of savings 
                        generated by the demonstration program 
                        and the amount of savings expected to 
                        be generated by the program over time 
                        on a per-unit and aggregate program 
                        basis;
                          (viii) the functions performed in 
                        connection with the implementation of 
                        the demonstration program that were 
                        transferred or contracted out to any 
                        third parties;
                          (ix) an evaluation of the overall 
                        successes and failures of the 
                        demonstration program; and
                          (x) recommendations for any actions 
                        to be taken as a result of the such 
                        successes and failures.
          (3) Contents.--Each annual report pursuant to 
        paragraph (1) and the final report pursuant to 
        paragraph (2) shall include--
                  (A) a description of the status of each 
                multifamily housing project selected for 
                participation in the demonstration program 
                under this section; and
                  (B) findings from the program and 
                recommendations for any legislative actions.
  (i) Covered Multifamily Assistance Program.--For purposes of 
this section, the term ``covered multifamily assistance 
program'' means--
          (1) the program under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f) for project-based 
        rental assistance;
          (2) the program under section 202 of the Housing Act 
        of 1959 (12 U.S.C. 1701q) for assistance for supportive 
        housing for the elderly;
          (3) the program under section 811 of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 
        8013) for supportive housing for persons with 
        disabilities;
          (4) the program under section 236 of the National 
        Housing Act (12 U.S.C. 1715z-1 for assistance for 
        rental housing projects;
          (5) the program under section 515 of the Housing Act 
        of 1949 (42 U.S.C. 1485) for rural rental housing; and
          (6) the program for assistance under the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4111).
  (j) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section, including providing 
rent adjustments, additional project rental assistance, and 
incentives, $50,000,000 for each fiscal year in which the 
demonstration program under this section is carried out.
  (k) Regulations.--Not later than the expiration of the 180-
day period beginning on the date of the enactment of this Act, 
the Secretary shall issue any regulations necessary to carry 
out this section.

SEC. 286. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC HOUSING 
                    GOALS FOR ENERGY-EFFICIENT AND LOCATION-EFFICIENT 
                    MORTGAGES.

  Section 1336(a) of the Housing and Community Development Act 
of 1992 (12 U.S.C. 4566(a)), as amended by the Federal Housing 
Finance Regulatory Reform Act of 2008 (Public Law 110-289; 122 
Stat. 2654), is amended--
          (1) in paragraph (2), by striking ``paragraph (5)'' 
        and inserting ``paragraphs (5) and (6)''; and
          (2) by adding at the end the following new paragraph:
          ``(6) Additional credit.--
                  ``(A) In general.--In assigning credit toward 
                achievement under this section of the housing 
                goals for mortgage purchase activities of the 
                enterprises, the Director shall assign--
                          ``(i) more than 125 percent credit, 
                        for any such purchase that both--
                                  ``(I) complies with the 
                                requirements of such goals; and
                                  ``(II)(aa) supports housing 
                                that meets the energy 
                                efficiency standards under 
                                section 284(a) of the Green 
                                Resources for Energy Efficient 
                                Neighborhoods Act of 2009; or
                                  ``(bb) is a location-
                                efficient mortgage, as such 
                                term is defined in section 
                                1335(e); and
                          ``(ii) credit in addition to credit 
                        under clause (i), for any such purchase 
                        that both--
                                  ``(I) complies with the 
                                requirements of such goals, and
                                  ``(II) supports housing that 
                                complies with the enhanced 
                                energy efficiency and 
                                conservation standards, or the 
                                green building standards, under 
                                section 284(b) of such Act, or 
                                both,
                        and such additional credit shall be 
                        given based on the extent to which the 
                        housing supported with such purchases 
                        complies with such standards.
                  ``(B) Treatment of additional credit.--The 
                availability of additional credit under this 
                paragraph shall not be used to increase any 
                housing goal, subgoal, or target established 
                under this subpart.''.

SEC. 287. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY-EFFICIENT AND 
                    LOCATION-EFFICIENT MORTGAGES.

  Section 1335 of Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4565), as amended by the 
Federal Housing Finance Regulatory Reform Act of 2008 (Public 
Law 110-289; 122 Stat. 2654), is amended--
          (1) in subsection (a)(1), by adding at the end the 
        following new subparagraph:
                  ``(D) Markets for energy-efficient and 
                location-efficient mortgages.--
                          ``(i) Duty.--Subject to clause (ii), 
                        the enterprise shall develop loan 
                        products and flexible underwriting 
                        guidelines to facilitate a secondary 
                        market for energy-efficient and 
                        location-efficient mortgages on housing 
                        for very low-, low-, and moderate-
                        income families, and for second and 
                        junior mortgages made for purposes of 
                        energy efficiency or renewable energy 
                        improvements, or both.
                          ``(ii) Authority to suspend.--
                        Notwithstanding any other provision of 
                        this section, the Director may suspend 
                        the applicability of the requirement 
                        under clause (i) with respect to an 
                        enterprise, for such period as is 
                        necessary, if the Director determines 
                        that exigent circumstances exist and 
                        such suspension is appropriate to 
                        ensure the safety and soundness of the 
                        portfolio holdings of the 
                        enterprise.'';
          (2) by adding at the end the following new 
        subsection:
  ``(e) Definitions.--For purposes of this section, the 
following definitions shall apply:
          ``(1) Energy-efficient mortgage.--The term `energy-
        efficient mortgage' means a mortgage loan under which 
        the income of the borrower, for purposes of 
        qualification for such loan, is considered to be 
        increased by not less than $1 for each $1 of savings 
        projected to be realized by the borrower as a result of 
        cost-effective energy-saving design, construction or 
        improvements (including use of renewable energy 
        sources, such as solar, geothermal, biomass, and wind, 
        super-insulation, energy-saving windows, insulating 
        glass and film, and radiant barrier) for the home for 
        which the loan is made.
          ``(2) Location-efficient mortgage.--The term 
        `location-efficient mortgage' means a mortgage loan 
        under which--
                  ``(A) the income of the borrower, for 
                purposes of qualification for such loan, is 
                considered to be increased by not less than $1 
                for each $1 of savings projected to be realized 
                by the borrower because the location of the 
                home for which loan is made will result in 
                decreased transportation costs for the 
                household of the borrower; or
                  ``(B) the sum of the principal, interest, 
                taxes, and insurance due under the mortgage 
                loan is decreased by not less than $1 for each 
                $1 of savings projected to be realized by the 
                borrower because the location of the home for 
                which loan is made will result in decreased 
                transportation costs for the household of the 
                borrower.''.

SEC. 288. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA MORTGAGE 
                    INSURANCE PROGRAMS AND NATIVE AMERICAN AND NATIVE 
                    HAWAIIAN LOAN GUARANTEE PROGRAMS.

  (a) FHA Mortgage Insurance.--
          (1) Requirement.--Title V of the National Housing Act 
        is amended by adding after section 542 (12 U.S.C. 
        1735f-20) the following new section:

``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.

  ``(a) Underwriting Standards.--The Secretary shall establish 
a method to consider, in its underwriting standards for 
mortgages on single-family housing meeting the energy 
efficiency standards under section 284(a) of the Green 
Resources for Energy Efficient Neighborhoods Act of 2009 that 
are insured under this Act, the impact that savings on utility 
costs has on the income of the mortgagor.
  ``(b) Goal.--It is the sense of the Congress that, in 
carrying out this Act, the Secretary should endeavor to insure 
mortgages on single-family housing meeting the energy 
efficiency standards under section 284(a) of the Green 
Resources for Energy Efficient Neighborhoods Act of 2009 such 
that at least 50,000 such mortgages are insured during the 
period beginning upon the date of the enactment of such Act and 
ending on December 31, 2012.''.
          (2) Reporting on defaults.--Section 540(b) of the 
        National Housing Act (12 U.S.C. 1735f-18(b)) is amended 
        by adding at the end the following new paragraph:
          ``(3) With respect to each collection period that 
        commences after December 31, 2011, the total number of 
        mortgages on single-family housing meeting the energy 
        efficiency standards under section 284(a) of the Green 
        Resources for Energy Efficient Neighborhoods Act of 
        2009 that are insured by the Secretary during the 
        applicable collection period, the number of defaults 
        and foreclosures occurring on such mortgages during 
        such period, the percentage of the total of such 
        mortgages insured during such period on which defaults 
        and foreclosure occurred, and the rate for such period 
        of defaults and foreclosures on such mortgages compared 
        to the overall rate for such period of defaults and 
        foreclosures on mortgages for single-family housing 
        insured under this Act by the Secretary.''.
  (b) Indian Housing Loan Guarantees.--
          (1) Requirement.--Section 184 of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13a) 
        is amended--
                  (A) by redesignating subsection (l) as 
                subsection (m); and
                  (B) by inserting after subsection (k) the 
                following new subsection:
  ``(l) Consideration of Energy Efficiency.--The Secretary 
shall establish a method to consider, in its underwriting 
standards for loans for single-family housing meeting the 
energy efficiency standards under section 284(a) of the Green 
Resources for Energy Efficient Neighborhoods Act of 2009 that 
are guaranteed under this section, the impact that savings on 
utility costs has on the income of the borrower.''.
          (2) Reporting on defaults.--Section 540(b) of the 
        National Housing Act (12 U.S.C. 1735f-18(b)), as 
        amended by subsection (a)(2) of this section, is 
        further amended by adding at the end the following new 
        paragraph:
          ``(4) With respect to each collection period that 
        commences after December 31, 2011, the total number of 
        loans guaranteed under section 184 of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13a) 
        on single-family housing meeting the energy efficiency 
        standards under section 284(a) of the Green Resources 
        for Energy Efficient Neighborhoods Act of 2009 that are 
        guaranteed by the Secretary during the applicable 
        collection period, the number of defaults and 
        foreclosures occurring on such loans during such 
        period, the percentage of the total of such loans 
        guaranteed during such period on which defaults and 
        foreclosure occurred, and the rate for such period of 
        defaults and foreclosures on such loans compared to the 
        overall rate for such period of defaults and 
        foreclosures on loans for single-family housing 
        guaranteed under such section 184 by the Secretary.''.
  (c) Native Hawaiian Housing Loan Guarantees.--
          (1) Requirement.--Section 184A of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13b) 
        is amended by inserting after subsection (l) the 
        following new subsection:
  ``(m) Energy-Efficient Housing Requirement.--The Secretary 
shall establish a method to consider, in its underwriting 
standards for loans for single-family housing meeting the 
energy efficiency standards under section 284(a) of the Green 
Resources for Energy Efficient Neighborhoods Act of 2009 that 
are guaranteed under this section, the impact that savings on 
utility costs has on the income of the borrower.''.
          (2) Reporting on defaults.--Section 540(b) of the 
        National Housing Act (12 U.S.C. 1735f-18(b)), as 
        amended by the preceding provisions of this section, is 
        further amended by adding at the end the following new 
        paragraph:
          ``(5) With respect to each collection period that 
        commences after December 31, 2011, the total number of 
        loans guaranteed under section 184A of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13b) 
        on single-family housing meeting the energy efficiency 
        standards under section 284(a) of the Green Resources 
        for Energy Efficient Neighborhoods Act of 2009 that are 
        guaranteed by the Secretary during the applicable 
        collection period, the number of defaults and 
        foreclosures occurring on such loans during such 
        period, the percentage of the total of such loans 
        guaranteed during such period on which defaults and 
        foreclosure occurred, and the rate for such period of 
        defaults and foreclosures on such loans compared to the 
        overall rate for such period of defaults and 
        foreclosures on loans for single-family housing 
        guaranteed under such section 184A by the Secretary.''.

SEC. 289. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EFFICIENT MORTGAGES 
                    EDUCATION AND OUTREACH CAMPAIGN.

  Section 106 of the Energy Policy Act of 1992 (12 U.S.C. 
1701z-16) is amended by adding at the end the following new 
subsection:
  ``(g) Education and Outreach Campaign.--
          ``(1) Development of energy- and location-efficient 
        mortgages outreach program.--
                  ``(A) Commission.--The Secretary, in 
                consultation and coordination with the 
                Secretary of Energy, the Secretary of 
                Education, the Secretary of Agriculture, and 
                the Administrator of the Environmental 
                Protection Agency, shall establish a commission 
                to develop and recommend model mortgage 
                products and underwriting guidelines that 
                provide market-based incentives to prospective 
                home buyers, lenders, and sellers to 
                incorporate energy efficiency upgrades and 
                location efficiencies in new mortgage loan 
                transactions.
                  ``(B) Report.--Not later than 24 months after 
                the date of the enactment of this Act, the 
                Secretary shall provide a written report to the 
                Congress on the results of work of the 
                commission established pursuant to subparagraph 
                (A) and that identifies model mortgage products 
                and underwriting guidelines that may encourage 
                energy and location efficiency.
          ``(2) Implementation.--After submission of the report 
        under paragraph (1)(B), the Secretary, in consultation 
        and coordination with the Secretary of Energy, the 
        Secretary of Education, and the Administrator of the 
        Environmental Protection Agency, shall carry out a 
        public awareness, education, and outreach campaign 
        based on the findings of the commission established 
        pursuant to paragraph (1) to inform and educate 
        residential lenders and prospective borrowers regarding 
        the availability, benefits, advantages, and terms of 
        energy-efficient mortgages and location-efficient 
        mortgages made available pursuant to this section, 
        energy-efficient and location-efficient mortgages that 
        meet the requirements of section 1335 of the Housing 
        and Community Development Act of 1992 (42 U.S.C. 4565), 
        and other mortgages, including mortgages for 
        multifamily housing, that have energy improvement 
        features or location efficiency features and to 
        publicize such availability, benefits, advantages, and 
        terms. Such actions may include entering into a 
        contract with an appropriate entity to publicize and 
        market such mortgages through appropriate media.
          ``(3) Renewable energy home product expos.--The 
        Congress hereby encourages the Secretary of Housing and 
        Urban Development to work with appropriate entities to 
        organize and hold renewable energy expositions that 
        provide an opportunity for the public to view and learn 
        about renewable energy products for the home that are 
        currently on the market.
          ``(4) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary to carry 
        out this subsection $5,000,000 for each of fiscal years 
        2010 through 2014.''.

SEC. 290. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND LOCATION-
                    EFFICIENT MORTGAGES THROUGH HOME MORTGAGE 
                    DISCLOSURE ACT.

  (a) In General.--Section 304(b) of the Home Mortgage 
Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended--
          (1) in paragraph (3), 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 new 
        paragraphs:
          ``(5) the number and dollar amount of mortgage loans 
        for single-family housing and for multifamily housing 
        that are energy-efficient mortgages (as such term is 
        defined in section 1335 of Housing and Community 
        Development Act of 1992); and
          ``(6) the number and dollar amount of mortgage loans 
        for single-family housing and for multifamily housing 
        that are location-efficient mortgages (as such term is 
        defined in section 1335 of Housing and Community 
        Development Act of 1992).''.
  (b) Applicability.--The amendment made by subsection (a) 
shall apply with respect to the first calendar year that begins 
after the expiration of the 30-day period beginning on the date 
of the enactment of this Act.

SEC. 291. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR HOMES NOT 
                    CONNECTED TO ELECTRICITY GRID.

  (a) Congressional Intent.--The Congress intends that--
          (1) consumers shall not be denied homeowners 
        insurance for a dwelling (as such term is defined in 
        subsection (c)) based solely on the fact that the 
        dwelling is not connected to or able to receive 
        electricity service from any wholesale or retail 
        electric power provider;
          (2) States should ensure that consumers are able to 
        obtain homeowners insurance for such dwellings;
          (3) States should support insurers that develop 
        voluntary incentives to provide such insurance; and
          (4) States may not prohibit insurers from offering a 
        homeowners insurance product specifically designed for 
        such dwellings.
  (b) Insuring Homes and Related Property in Indian Areas.--
Notwithstanding any other provision of law, dwellings located 
in Indian areas (as such term is defined in section 4 of the 
Native American Housing Assistance and Self-Determination Act 
of 1996 (25 U.S.C. 4103)) and constructed or maintained using 
assistance, loan guarantees, or other authority under the 
Native American Housing Assistance and Self-Determination Act 
of 1996 may be insured by any tribally owned self-insurance 
risk pool approved by the Secretary of Housing and Urban 
Development.
  (c) Dwelling.--For purposes of this section, the term 
``dwelling'' means a residential structure that--
          (1) consists of one to four dwelling units;
          (2) is provided electricity from renewable energy 
        sources; and
          (3) is not connected to any wholesale or retail 
        electrical power grid.

SEC. 292. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT MULTIFAMILY HOUSING.

  (a) In General.--The Secretary of Housing and Urban 
Development shall establish incentives for increasing the 
energy efficiency of multifamily housing that is subject to a 
mortgage to be insured under title II of the National Housing 
Act (12 U.S.C. 1707 et seq.) so that the housing meets the 
energy efficiency standards under section 284(a) of this 
subtitle and incentives to encourage compliance of such housing 
with the energy efficiency and conservation standards, and the 
green building standards, under section 284(b) of this 
subtitle, to the extent that such incentives are based on the 
impact that savings on utility costs has on the operating costs 
of the housing, as determined by the Secretary.
  (b) Incentives.--Such incentives may include, for any such 
multifamily housing that complies with the energy efficiency 
standards under section 284(a)--
          (1) providing a discount on the chargeable premiums 
        for the mortgage insurance for such housing from the 
        amount otherwise chargeable for such mortgage 
        insurance;
          (2) allowing mortgages to exceed the dollar amount 
        limits otherwise applicable under law to the extent 
        such additional amounts are used to finance 
        improvements or measures designed to meet the standards 
        referred to in subsection (a); and
          (3) reducing the amount that the owner of such 
        multifamily housing meeting the standards referred to 
        in subsection (a) is required to contribute.

SEC. 293. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED HOUSING WITH 
                    MORTGAGES.

  Section 526 of the National Housing Act (12 U.S.C. 1735f-
4(a)) is amended--
          (1) in subsection (a)--
                  (A) by striking ``, other than manufactured 
                homes,'' each place such term appears;
                  (B) by inserting after the period at the end 
                the following: ``The energy performance 
                requirements developed and established by the 
                Secretary under this section for manufactured 
                homes shall require energy star rating for wall 
                fixtures, appliances, and equipment in such 
                housing.'';
                  (C) by inserting ``(1)'' after ``(a)''; and
                  (D) by adding at the end the following new 
                paragraphs:
  ``(2) The Secretary shall require, with respect to any 
single- or multi-family residential housing subject to a 
mortgage insured under this Act, that any approval or 
certification of the housing for meeting any energy efficiency 
or conservation criteria, standards, or requirements pursuant 
to this title and any approval or certification required 
pursuant to this title with respect to energy-conserving 
improvements or any renewable energy sources, such as wind, 
solar energy geothermal, or biomass, shall be conducted only by 
an individual certified by a home energy rating system provider 
who has been accredited to conduct such ratings by the Home 
Energy Ratings System Council, the Residential Energy Services 
Network, or such other appropriate national organization, as 
the Secretary may provide, or by licensed professional 
architect or engineer. If any organization makes a request to 
the Secretary for approval to accredit individuals to conduct 
energy efficiency or conservation ratings, the Secretary shall 
review and approve or disapprove such request not later than 
the expiration of the 6-month period beginning upon receipt of 
such request.
  ``(3) The Secretary shall periodically examine the method 
used to conduct inspections for compliance with the 
requirements under this section, analyze various other 
approaches for conducting such inspections, and review the 
costs and benefits of the current method compared with other 
methods.''; and
          (2) in subsection (b), by striking ``, other than a 
        manufactured home,''.

SEC. 294. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.

  (a) Authority.--Not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act, the 
Secretary shall develop and implement a pilot program under 
this section to facilitate the financing of cost-effective 
capital improvements for covered assisted housing projects to 
improve the energy efficiency and conservation of such 
projects.
  (b) Loans.--The pilot program under this section shall 
involve not less than three and not more than five lenders, and 
shall provide for a privately financed loan to be made for a 
covered assisted housing project, which shall--
          (1) finance capital improvements for the project that 
        meet such requirements as the Secretary shall 
        establish, and may involve contracts with third parties 
        to perform such capital improvements, including the 
        design of such improvements by licensed professional 
        architects or engineers;
          (2) have a term to maturity of not more than 20 
        years, which shall be based upon the duration necessary 
        to realize cost savings sufficient to repay the loan;
          (3) be secured by a mortgage subordinate to the 
        mortgage for the project that is insured under the 
        National Housing Act; and
          (4) provide for a reduction in the remaining 
        principal obligation under the loan based on the actual 
        resulting cost savings realized from the capital 
        improvements financed with the loan.
  (c) Underwriting Standards.--The Secretary shall establish 
underwriting requirements for loans made under the pilot 
program under this section, which shall--
          (1) require the cost savings projected to be realized 
        from the capital improvements financed with the loan, 
        during the term of the loan, to exceed the costs of 
        repaying the loan;
          (2) allow the designer or contractor involved in 
        designing capital improvements to be financed with a 
        loan under the program to carry out such capital 
        improvements; and
          (3) include such energy, audit, property, financial, 
        ownership, and approval requirements as the Secretary 
        considers appropriate.
  (d) Treatment of Savings.--The pilot program under this 
section shall provide that the project owner shall receive the 
full financial benefit from any reduction in the cost of 
utilities resulting from capital improvements financed with a 
loan made under the program.
  (e) Covered Assisted Housing Projects.--For purposes of this 
section, the term ``covered assisted housing project'' means a 
housing project that--
          (1) is financed by a loan or mortgage that is--
                  (A) insured by the Secretary under--
                          (i) subsection (d)(3) of section 221 
                        of the National Housing Act (12 U.S.C. 
                        1715l), and bears interest at a rate 
                        determined under the proviso of section 
                        221(d)(5) of such Act; or
                          (ii) subsection (d)(4) of such 
                        section 221.
                  (B) insured or assisted under section 236 of 
                the National Housing Act (12 U.S.C. 1715z-1);
          (2) at the time a loan under this section is made, is 
        provided project-based rental assistance under section 
        8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f) for 50 percent or more of the dwelling units in 
        the project; and
          (3) is not a housing project owned or held by the 
        Secretary, or subject to a mortgage held by the 
        Secretary.

SEC. 295. MAKING IT GREEN.

  (a) Partnerships With Tree-Planting Organizations.--The 
Secretary shall establish and provide incentives for developers 
of housing for which any HUD financial assistance, as 
determined by the Secretary, is provided for development, 
maintenance, operation, or other costs, to enter into 
agreements and partnerships with tree-planting organizations, 
nurseries, and landscapers to certify that trees, shrubs, 
grasses, and other plants are planted in the proper manner, are 
provided adequate maintenance, and survive for at least 3 years 
after planting or are replaced. The financial assistance 
determined by the Secretary as eligible under this section 
shall take into consideration such factors as cost 
effectiveness and affordability.
  (b) Making It Green Plan.--In the case of any new or 
substantially rehabilitated housing for which HUD financial 
assistance, as determined in accordance with subsection (a), is 
provided by the Secretary for the development, construction, 
maintenance, rehabilitation, improvement, operation, or costs 
of the housing, including financial assistance provided through 
the Community Development Block Grant program under title I of 
the Housing and Community Development Act of 1974 (42 U.S.C. 
5301 et seq.), the Secretary shall require the development of a 
plan that provides for--
          (1) in the case of new construction and improvements, 
        siting of such housing and improvements in a manner 
        that provides for energy efficiency and conservation to 
        the extent feasible, taking into consideration location 
        and project type;
          (2) minimization of the effects of construction, 
        rehabilitation, or other development on the condition 
        of existing trees;
          (3) selection and installation of indigenous trees, 
        shrubs, grasses, and other plants based upon applicable 
        design guidelines and standards of the International 
        Society for Arboriculture;
          (4) post-planting care and maintenance of the 
        landscaping relating to or affected by the housing in 
        accordance with best management practices; and
          (5) establishment of a goal for minimum greenspace or 
        tree canopy cover for the housing site for which such 
        financial assistance is provided, including guidelines 
        and timetables within which to achieve compliance with 
        such minimum requirements.
  (c) Partnerships.--In carrying out this section, the 
Secretary is encouraged to consult, as appropriate, with 
national organizations dedicated to providing housing 
assistance and related services to low-income families, such as 
the Alliance for Community Trees and its affiliates, the 
American Nursery and Landscape Association, the American 
Society of Landscape Architects, and the National Arbor Day 
Foundation.

SEC. 296. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

  Title I of the Housing and Community Development Act of 1974 
(42 U.S.C. 5301 et seq.) is amended by adding at the end the 
following new section:

``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

  ``(a) In General.--To the extent amounts are made available 
for grants under this section, the Secretary shall make grants 
under this section to States, metropolitan cities and urban 
counties, Indian tribes, and insular areas to carry out energy 
efficiency improvements in new and existing single-family and 
multifamily housing.
  ``(b) Allocations.--
          ``(1) In general.--Of the total amount made available 
        for each fiscal year for grants under this section that 
        remains after reserving amounts pursuant to paragraph 
        (2), the Secretary shall allocate for insular areas, 
        for metropolitan cities and urban counties, and for 
        States, an amount that bears the same ratio to such 
        total amount as the amount allocated for such fiscal 
        year under section 106 for Indian tribes, for insular 
        areas, for metropolitan cities and urban counties, and 
        for States, respectively, bears to the total amount 
        made available for such fiscal year for grants under 
        section 106.
          ``(2) Set aside for indian tribes.--Of the total 
        amount made available for each fiscal year for grants 
        under this section, the Secretary shall allocate not 
        less than 1 percent to Indian tribes.
  ``(c) Grant Amounts.--
          ``(1) Entitlement communities.--From the amounts 
        allocated pursuant to subsection (b) for metropolitan 
        cities and urban counties for each fiscal year, the 
        Secretary shall make a grant for such fiscal year to 
        each metropolitan city and urban county that complies 
        with the requirement under subsection (d), in the 
        amount that bears the same ratio such total amount so 
        allocated as the amount of the grant for such fiscal 
        year under section 106 for such metropolitan city or 
        urban county bears to the aggregate amount of all 
        grants for such fiscal year under section 106 for all 
        metropolitan cities and urban counties.
          ``(2) States.--From the amounts allocated pursuant to 
        subsection (b) for States for each fiscal year, the 
        Secretary shall make a grant for such fiscal year to 
        each State that complies with the requirement under 
        subsection (d), in the amount that bears the same ratio 
        such total amount so allocated as the amount of the 
        grant for such fiscal year under section 106 for such 
        State bears to the aggregate amount of all grants for 
        such fiscal year under section 106 for all States. 
        Grant amounts received by a State shall be used only 
        for eligible activities under subsection (e) carried 
        out in nonentitlement areas of the State.
          ``(3) Indian tribes.--From the amounts allocated 
        pursuant to subsection (b) for Indian tribes, the 
        Secretary shall make grants to Indian tribes that 
        comply with the requirement under subsection (d) on the 
        basis of a competition conducted pursuant to specific 
        criteria, as the Secretary shall establish by 
        regulation, for the selection of Indian tribes to 
        receive such amount.
          ``(4) Insular areas.--From the amounts allocated 
        pursuant to subsection (b) for insular areas, the 
        Secretary shall make a grant to each insular area that 
        complies with the requirement under subsection (d) on 
        the basis of the ratio of the population of the insular 
        area to the aggregate population of all insular areas. 
        In determining the distribution of amounts to insular 
        areas, the Secretary may also include other statistical 
        criteria as data become available from the Bureau of 
        Census of the Department of Labor, but only if such 
        criteria are set forth by regulation issued after 
        notice and an opportunity for comment.
  ``(d) Statement of Activities.--
          ``(1) Requirement.--Before receipt the receipt in any 
        fiscal year of a grant under subsection (c) by any 
        grantee, the grantee shall have prepared a final 
        statement of housing energy efficiency objectives and 
        projected use of funds as the Secretary shall require 
        and shall have provided the Secretary with such 
        certifications regarding such objectives and use as the 
        Secretary may require. In the case of metropolitan 
        cities, urban counties, units of general local 
        government, and insular areas receiving grants, the 
        statement of projected use of funds shall consist of 
        proposed housing energy efficiency activities. In the 
        case of States receiving grants, the statement of 
        projected use of funds shall consist of the method by 
        which the States will distribute funds to units of 
        general local government.
          ``(2) Public participation.--The Secretary may 
        establish requirements to ensure the public 
        availability of information regarding projected use of 
        grant amounts and public participation in determining 
        such projected use.
  ``(e) Eligible Activities.--
          ``(1) Requirement.--Amounts from a grant under this 
        section may be used only to carry out activities for 
        single-family or multifamily housing that are designed 
        to improve the energy efficiency of the housing so that 
        the housing complies with the energy efficiency 
        standards under section 284(a) of the Green Resources 
        for Energy Efficient Neighborhoods Act of 2009, 
        including such activities to provide energy for such 
        housing from renewable sources, such as wind, waves, 
        solar, biomass, and geothermal sources.
          ``(2) Preference for compliance beyond basic 
        requirements.--In selecting activities to be funded 
        with amounts from a grant under this section, a grantee 
        shall give more preference to activities based on the 
        extent to which the activities will result in 
        compliance by the housing with the enhanced energy 
        efficiency and conservation standards, and the green 
        building standards, under section 284(b) of such Act.
  ``(f) Reports.--Each grantee of a grant under this section 
for a fiscal year shall submit to the Secretary, at a time 
determined by the Secretary, a performance and evaluation 
report concerning the use of grant amounts, which shall contain 
an assessment by the grantee of the relationship of such use to 
the objectives identified in the grantees statement under 
subsection (d).
  ``(g) Applicability of CDBG Provisions.--Sections 109, 110, 
and 111 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5309, 5310, 5311) shall apply to assistance received 
under this section to the same extent and in the same manner 
that such sections apply to assistance received under title I 
of such Act.
  ``(h) Authorization of Appropriations.--There is authorized 
to be appropriated for grants under this section $2,500,000,000 
for fiscal year 2010 and such sums as may be necessary for each 
fiscal year thereafter.''.

SEC. 297. INCLUDING SUSTAINABLE DEVELOPMENT AND TRANSPORTATION 
                    STRATEGIES IN COMPREHENSIVE HOUSING AFFORDABILITY 
                    STRATEGIES.

  Section 105(b) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12705(b)) is amended--
          (1) by striking ``and'' at the end of paragraph (19);
          (2) by striking the period at the end of paragraph 
        (20) and inserting ``; and'';
          (3) and by inserting after paragraph (20) the 
        following new paragraphs:
          ``(21) describe the jurisdiction's strategies to 
        encourage sustainable development for affordable 
        housing, including single-family and multifamily 
        housing, as measured by--
                  ``(A) greater energy efficiency and use of 
                renewable energy sources, including any 
                strategies regarding compliance with the energy 
                efficiency standards under section 284(a) of 
                the Green Resources for Energy Efficient 
                Neighborhoods Act of 2009 and with the enhanced 
                energy efficiency and conservation standards, 
                and the green building standards, under section 
                284(b) of such Act;
                  ``(B) increased conservation, recycling, and 
                reuse of resources;
                  ``(C) more effective use of existing 
                infrastructure;
                  ``(D) use of building materials and methods 
                that are healthier for residents of the 
                housing, including use of building materials 
                that are free of added known carcinogens that 
                are classified as Group 1 Known Carcinogens by 
                the International Agency for Research on 
                Cancer; and
                  ``(E) such other criteria as the Secretary 
                determines, in consultation with the Secretary 
                of Energy, the Secretary of Agriculture, and 
                the Administrator of the Environmental 
                Protection Agency, are in accordance with the 
                purposes of this paragraph; and
          ``(22) describe the jurisdiction's efforts to 
        coordinate its housing strategy with its transportation 
        planning strategies to ensure to the extent practicable 
        that residents of affordable housing have access to 
        public transportation.''.

SEC. 298. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME COMMUNITY 
                    DEVELOPMENT CAPACITY.

  (a) In General.--The Secretary may make grants to nonprofit 
organizations to use for any of the following purposes:
          (1) Training, educating, supporting, or advising an 
        eligible community development organization or 
        qualified youth service and conservation corps in 
        improving energy efficiency, resource conservation and 
        reuse, design strategies to maximize energy efficiency, 
        installing or constructing renewable energy 
        improvements (such as wind, wave, solar, biomass, and 
        geothermal energy sources), and effective use of 
        existing infrastructure in affordable housing and 
        economic development activities in low-income 
        communities, taking into consideration energy 
        efficiency standards under section 284(a) of this 
        subtitle and with the enhanced energy efficiency and 
        conservation standards, and the green building 
        standards, under section 284(b) of this subtitle.
          (2) Providing loans, grants, or predevelopment 
        assistance to eligible community development 
        organizations or qualified youth service and 
        conservation corps to carry out energy efficiency 
        improvements that comply with the energy efficiency 
        standards under section 284(a) of this subtitle, 
        resource conservation and reuse, and effective use of 
        existing infrastructure in affordable housing and 
        economic development activities in low-income 
        communities. In providing assistance under this 
        paragraph, the Secretary shall give more preference to 
        activities based on the extent to which the activities 
        will result in compliance with the enhanced energy 
        efficiency and conservation standards, and the green 
        building standards, under section 284(b) of this 
        subtitle.
          (3) Such other purposes as the Secretary determines 
        are in accordance with the purposes of this subsection.
  (b) Application Requirement.--To be eligible for a grant 
under this section, a nonprofit organization shall prepare and 
submit to the Secretary an application at such time, in such 
manner, and containing such information as the Secretary may 
require.
  (c) Award of Contracts.--Contracts for architectural or 
engineering services funded with amounts from grants made under 
this section shall be awarded in accordance with chapter 11 of 
title 40, United States Code (relating to selection of 
architects and engineers).
  (d) Matching Requirement.--A grant made under this section 
may not exceed the amount that the nonprofit organization 
receiving the grant certifies, to the Secretary, will be 
provided (in cash or in-kind) from nongovernmental sources to 
carry out the purposes for which the grant is made.
  (e) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) The term ``nonprofit organization'' has the 
        meaning given such term in section 104 of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 
        12704).
          (2) The term ``eligible community development 
        organization'' means--
                  (A) a unit of general local government (as 
                defined in section 104 of the Cranston-Gonzalez 
                National Affordable Housing Act (42 U.S.C. 
                12704));
                  (B) a community housing development 
                organization (as defined in section 104 of the 
                Cranston-Gonzalez National Affordable Housing 
                Act (42 U.S.C. 12704));
                  (C) an Indian tribe or tribally designated 
                housing entity (as such terms are defined in 
                section 4 of the Native American Housing 
                Assistance and Self-Determination Act of 1996 
                (25 U.S.C. 4103)); or
                  (D) a public housing agency, as such term is 
                defined in section 3(b) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437(b)).
          (3) The term ``low-income community'' means a census 
        tract in which 50 percent or more of the households 
        have an income which is less than 80 percent of the 
        greater of--
                  (A) the median gross income for such year for 
                the area in which such census tract is located; 
                or
                  (B) the median gross income for such year for 
                the State in which such census tract is 
                located.
  (f) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary to carry out this section 
$10,000,000 for each of fiscal years 2010 through 2014.

SEC. 299. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.

  (a) Mandatory Component.--Section 24(e) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by adding 
at the end the following new paragraph:
          ``(4) Green developments requirement.--
                  ``(A) Requirement.--The Secretary may not 
                make a grant under this section to an applicant 
                unless the proposed revitalization plan of the 
                applicant to be carried out with such grant 
                amounts meets the following requirements:
                          ``(i) Green communities criteria 
                        checklist.--All residential 
                        construction under the proposed plan 
                        complies with the national Green 
                        Communities criteria checklist for 
                        residential construction that provides 
                        criteria for the design, development, 
                        and operation of affordable housing, as 
                        such checklist is in effect for 
                        purposes of this paragraph pursuant to 
                        subparagraph (D) at the date of the 
                        application for the grant, or any 
                        substantially equivalent standard or 
                        standards as determined by the 
                        Secretary, as follows:
                                  ``(I) The proposed plan shall 
                                comply with all items of the 
                                national Green Communities 
                                criteria checklist for 
                                residential construction that 
                                are identified as mandatory.
                                  ``(II) The proposed plan 
                                shall comply with such other 
                                nonmandatory items of such 
                                national Green Communities 
                                criteria checklist so as to 
                                result in a cumulative number 
                                of points attributable to such 
                                nonmandatory items under such 
                                checklist of not less than--
                                          ``(aa) 25 points, in 
                                        the case of any 
                                        proposed plan (or 
                                        portion thereof) 
                                        consisting of new 
                                        construction; and
                                          ``(bb) 20 points, in 
                                        the case of any 
                                        proposed plan (or 
                                        portion thereof) 
                                        consisting of 
                                        rehabilitation.
                          ``(ii) Green buildings certification 
                        system.--All nonresidential 
                        construction under the proposed plan 
                        complies with all minimum required 
                        levels of the green building rating 
                        systems and levels identified by the 
                        Secretary pursuant to subparagraph (C), 
                        as such systems and levels are in 
                        effect for purposes of this paragraph 
                        pursuant to subparagraph (D) at the 
                        time of the application for the grant.
                  ``(B) Verification.--
                          ``(i) In general.--The Secretary 
                        shall verify, or provide for 
                        verification, sufficient to ensure that 
                        each proposed revitalization plan 
                        carried out with amounts from a grant 
                        under this section complies with the 
                        requirements under subparagraph (A) and 
                        that the revitalization plan is carried 
                        out in accordance with such 
                        requirements and plan.
                          ``(ii) Timing.--In providing for such 
                        verification, the Secretary shall 
                        establish procedures to ensure such 
                        compliance with respect to each 
                        grantee, and shall report to the 
                        Congress with respect to the compliance 
                        of each grantee, at each of the 
                        following times:
                                  ``(I) Not later than 6 months 
                                after execution of the grant 
                                agreement under this section 
                                for the grantee.
                                  ``(II) Upon completion of the 
                                revitalization plan of the 
                                grantee.
                  ``(C) Identification of green buildings 
                rating systems and levels.--
                          ``(i) In general.--For purposes of 
                        this paragraph, the Secretary shall 
                        identify rating systems and levels for 
                        green buildings that the Secretary 
                        determines to be the most likely to 
                        encourage a comprehensive and 
                        environmentally sound approach to 
                        ratings and standards for green 
                        buildings. The identification of the 
                        ratings systems and levels shall be 
                        based on the criteria specified in 
                        clause (ii), shall identify the highest 
                        levels the Secretary determines are 
                        appropriate above the minimum levels 
                        required under the systems selected. 
                        Within 90 days of the completion of 
                        each study required by clause (iii), 
                        the Secretary shall review and update 
                        the rating systems and levels, or 
                        identify alternative systems and levels 
                        for purposes of this paragraph, taking 
                        into account the conclusions of such 
                        study.
                          ``(ii) Criteria.--In identifying the 
                        green rating systems and levels, 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 paragraph;
                                  ``(II) the ability of the 
                                applicable ratings system 
                                organizations to collect and 
                                reflect public comment;
                                  ``(III) the ability of the 
                                standards 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 and outdoor 
                                        environmental quality 
                                        through enhanced indoor 
                                        and outdoor air 
                                        quality, thermal 
                                        comfort, acoustics, 
                                        outdoor noise 
                                        pollution, day 
                                        lighting, pollutant 
                                        source control, 
                                        sustainable 
                                        landscaping, and use of 
                                        building system 
                                        controls and low- or 
                                        no-emission materials, 
                                        including preference 
                                        for materials with no 
                                        added carcinogens that 
                                        are classified as Group 
                                        1 Known Carcinogens by 
                                        the International 
                                        Agency for Research on 
                                        Cancer; and
                                          ``(dd) such other 
                                        criteria as the 
                                        Secretary determines to 
                                        be appropriate; and
                                  ``(V) national recognition 
                                within the building industry.
                          ``(iii) 5-year evaluation.--At least 
                        once every 5 years, the Secretary shall 
                        conduct a study to evaluate and compare 
                        available third-party green building 
                        rating systems and levels, taking into 
                        account the criteria listed in clause 
                        (ii).
                  ``(D) Applicability and updating of 
                standards.--
                          ``(i) Applicability.--Except as 
                        provided in clause (ii) of this 
                        subparagraph, the national Green 
                        Communities criteria checklist and 
                        green building rating systems and 
                        levels referred to in clauses (i) and 
                        (ii) of subparagraph (A) that are in 
                        effect for purposes of this paragraph 
                        are such checklist systems, and levels 
                        as in existence upon the date of the 
                        enactment of the Green Resources for 
                        Energy Efficient Neighborhoods Act of 
                        2009.
                          ``(ii) Updating.--The Secretary may, 
                        by regulation, adopt and apply, for 
                        purposes of this paragraph, future 
                        amendments and supplements to, and 
                        editions of, the national Green 
                        Communities criteria checklist, any 
                        standard or standards that the 
                        Secretary has determined to be 
                        substantially equivalent to such 
                        checklist, and the green building 
                        ratings systems and levels identified 
                        by the Secretary pursuant to 
                        subparagraph (C).''.
  (b) Selection Criteria; Graded Component.--Section 24(e)(2) 
of the United States Housing Act of 1937 (42 U.S.C. 
1437v(e)(2)) is amended--
          (1) in subparagraph (K), by striking ``and'' at the 
        end;
          (2) by redesignating subparagraph (L) as subparagraph 
        (M); and
          (3) by inserting after subparagraph (K) the following 
        new subparagraph:
                  ``(L) the extent to which the proposed 
                revitalization plan--
                          ``(i) in the case of residential 
                        construction, complies with the 
                        nonmandatory items of the national 
                        Green Communities criteria checklist 
                        identified in paragraph (4)(A)(i), or 
                        any substantially equivalent standard 
                        or standards as determined by the 
                        Secretary, but only to the extent such 
                        compliance exceeds the compliance 
                        necessary to accumulate the number of 
                        points required under such paragraph; 
                        and
                          ``(ii) in the case of nonresidential 
                        construction, complies with the 
                        components of the green building rating 
                        systems and levels identified by the 
                        Secretary pursuant to paragraph (4)(C), 
                        but only to the extent such compliance 
                        exceeds the minimum level required 
                        under such systems and levels; and''.

SEC. 299A. CONSIDERATION OF ENERGY EFFICIENCY IMPROVEMENTS IN 
                    APPRAISALS.

  (a) Appraisals in Connection With Federally Related 
Transactions.--
          (1) Requirement.--Section 1110 of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 
        1989 (12 U.S.C. 3339) is amended--
                  (A) in paragraph (1), by striking ``and'' at 
                the end;
                  (B) by redesignating paragraph (2) as 
                paragraph (3); and
                  (C) by inserting after paragraph (1) the 
                following new paragraph:
          ``(2) that such appraisals be performed in accordance 
        with appraisal standards that require, in determining 
        the value of a property, consideration of any renewable 
        energy sources for, or energy efficiency or energy-
        conserving improvements or features of, the property; 
        and''.
          (2) Revision of appraisal standards.--Each Federal 
        financial institutions regulatory agency shall, not 
        later than 6 months after the date of the enactment of 
        this Act, revise its standards for the performance of 
        real estate appraisals in connection with federally 
        related transactions under the jurisdiction of the 
        agency to comply with the requirement under the 
        amendments made by paragraph (1) of this subsection.
  (b) Appraiser Certification and Licensing Requirements.--
Section 1116 of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 3345) is amended--
          (1) in subsection (a), by inserting before the period 
        at the end the following: ``, and meets the 
        requirements established pursuant to subsection (f) for 
        qualifications regarding consideration of any renewable 
        energy sources for, or energy efficiency or energy-
        conserving improvements or features of, the property'';
          (2) in subsection (c), by inserting before the period 
        at the end the following: ``, which shall include 
        compliance with the requirements established pursuant 
        to subsection (f) regarding consideration of any 
        renewable energy sources for, or energy efficiency or 
        energy-conserving improvements or features of, the 
        property'';
          (3) in subsection (e), by striking ``The'' and 
        inserting ``Except as provided in subsection (f), 
        the''; and
          (4) by adding at the end the following new 
        subsection:
  ``(f) Requirements for Appraisers Regarding Energy Efficiency 
Features.--The Appraisal Subcommittee shall establish 
requirements for State certification of State certified real 
estate appraisers and for State licensing of State licensed 
appraisers, to ensure that appraisers consider and are 
qualified to consider, in determining the value of a property, 
any renewable energy sources for, or energy efficiency or 
energy-conserving improvements or features of, the property.''.
  (c) Guidelines for Appraising Photovoltaic Measures and 
Training of Appraisers.--Section 1122 of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3351) is amended by adding at the end the following new 
subsection:
  ``(g) Guidelines for Appraising Photovoltaic Measures and 
Training of Appraisers.--The Appraisal Subcommittee shall, in 
consultation with the Secretary of Housing and Urban 
Development, the Federal National Mortgage Association, and the 
Federal Home Loan Mortgage Corporation, establish specific 
guidelines for--
          ``(1) appraising off- and on-grid photovoltaic 
        measures for compliance with the appraisal standards 
        prescribed pursuant to section 1110(2);
          ``(2) requirements under section 1116(f) for 
        certification of State certified real estate appraisers 
        and for State licensing of State licensed appraisers, 
        to ensure that appraisers consider, and are qualified 
        to consider, such photovoltaic measures in determining 
        the value of a property; and
          ``(3) training of appraisers to meet the requirements 
        established pursuant to paragraph (2) of this 
        subsection.''.

SEC. 299B. HOUSING ASSISTANCE COUNCIL.

  The Secretary shall require the Housing Assistance Council--
          (1) to encourage each organization that receives 
        assistance from the Council with any amounts made 
        available from the Secretary to provide that any 
        structures and buildings developed or assisted under 
        projects, programs, and activities funded with such 
        amounts complies with the energy efficiency standards 
        under section 284(a) of this subtitle; and
          (2) to establish incentives to encourage each such 
        organization to provide that any such structures and 
        buildings comply with the energy efficiency and 
        conservation standards, and the green building 
        standards, under section 284(b) of such Act.

SEC. 299C. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.

  The Secretary shall--
          (1) require each tribe, agency, organization, 
        corporation, and other entity that receives any 
        assistance from the Office of Rural Housing and 
        Economic Development of the Department of Housing and 
        Urban Development to provide that any structures and 
        buildings developed or assisted under activities funded 
        with such amounts complies with the energy efficiency 
        standards under section 284(a) of this subtitle; and
          (2) establish incentives to encourage each such 
        tribe, agency, organization, corporation, and other 
        entity to provide that any such structures and 
        buildings comply with the enhanced energy efficiency 
        and conservation standards, and the green building 
        standards, under section 284(b) of such Act.

SEC. 299D. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT RENEWABLE 
                    ENERGY SOURCES ACTIVITIES.

  (a) Establishment of Fund.--There is established in the 
Treasury of the United States a fund, to be known as the 
``Alternative Energy Sources State Loan Fund''.
  (b) Expenditures.--
          (1) In general.--Subject to paragraph (2), on request 
        by the Secretary, the Secretary of the Treasury shall 
        transfer from the Fund to the Secretary such amounts as 
        the Secretary determines are necessary to provide loans 
        under subsection (c)(1).
          (2) Administrative expenses.--Of the amounts in the 
        Fund, not more than 5 percent shall be available for 
        each fiscal year to pay the administrative expenses of 
        the Department of Housing and Urban Development to 
        carry out this section.
  (c) Loans to States and Indian Tribes.--
          (1) In general.--The Secretary shall use amounts in 
        the Fund to provide loans to States and Indian tribes 
        to provide incentives to owners of single-family and 
        multifamily housing, commercial properties, and public 
        buildings to provide--
                  (A) renewable energy sources for such 
                structures, such as wind, wave, solar, biomass, 
                or geothermal energy sources, including 
                incentives to companies and business to change 
                their source of energy to such renewable energy 
                sources and for changing the sources of energy 
                for public buildings to such renewable energy 
                sources;
                  (B) energy efficiency and energy conserving 
                improvements and features for such structures; 
                or
                  (C) infrastructure related to the delivery of 
                electricity and hot water for structures 
                lacking such amenities.
          (2) Eligibility.--To be eligible to receive a loan 
        under this subsection, a State or Indian tribe, 
        directly or through an appropriate State or tribal 
        agency, shall submit to the Secretary an application at 
        such time, in such manner, and containing such 
        information as the Secretary may require.
          (3) Criteria for approval.--The Secretary may approve 
        an application of a State or Indian tribe under 
        paragraph (2) only if the Secretary determines that the 
        State or tribe will use the funds from the loan under 
        this subsection to carry out a program to provide 
        incentives described in paragraph (1) that--
                  (A) requires that any such renewable energy 
                sources, and energy efficiency and energy 
                conserving improvements and features, developed 
                pursuant to assistance under the program result 
                in compliance of the structure so improved with 
                energy efficiency requirements determined by 
                the Secretary; and
                  (B) includes such compliance and audit 
                requirements as the Secretary determines are 
                necessary to ensure that the program is 
                operated in a sound and effective manner.
          (4) Preference.--In making loans during each fiscal 
        year, the Secretary shall give preference to States and 
        Indian tribes that have not previously received a loan 
        under this subsection.
          (5) Maximum amount.--The aggregate outstanding 
        principal amount from loans under this subsection to 
        any single State or Indian tribe may not exceed 
        $500,000,000.
          (6) Loan terms.--Each loan under this subsection 
        shall have a term to maturity of not more than 10 years 
        and shall bear interest at annual rate, determined by 
        the Secretary, that shall not exceed interest rate 
        charged by the Federal Reserve Bank of New York to 
        commercial banks and other depository institutions for 
        very short-term loans under the primary credit program, 
        as most recently published in the Federal Reserve 
        Statistical Release on selected interest rates (daily 
        or weekly), and commonly referred to as the H.15 
        release, preceding the date of a determination for 
        purposes of applying this paragraph.
          (7) Loan repayment.--The Secretary shall require full 
        repayment of each loan made under this section.
  (d) Investment of Amounts.--
          (1) In general.--The Secretary of the Treasury shall 
        invest such amounts in the Fund that are not, in the 
        judgment of the Secretary of the Treasury, required to 
        meet needs for current withdrawals.
          (2) Obligations of united states.--Investments may be 
        made only in interest-bearing obligations of the United 
        States.
  (e) Reports.--
          (1) Reports to secretary.--For each year during the 
        term of a loan made under subsection (c), the State or 
        Indian tribe that received the loan shall submit to the 
        Secretary a report describing the State or tribal 
        alternative energy sources program for which the loan 
        was made and the activities conducted under the program 
        using the loan funds during that year.
          (2) Report to congress.--Not later than September 30 
        of each year that loans made under subsection (c) are 
        outstanding, the Secretary shall submit a report to the 
        Congress describing the total amount of such loans 
        provided under subsection (c) to each eligible State 
        and Indian tribe during the fiscal year ending on such 
        date, and an evaluation on effectiveness of the Fund.
  (f) Authorization of Appropriations.--There is authorized to 
be appropriated to the Fund $5,000,000,000.
  (g) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given such term in section 4 of the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4103).
          (2) State.--The term ``State'' means each of the 
        several States, the Commonwealth of Puerto Rico, the 
        District of Columbia, the Commonwealth of the Northern 
        Mariana Islands, Guam, the Virgin Islands, American 
        Samoa, the Trust Territories of the Pacific, or any 
        other possession of the United States.

SEC. 299E. GREEN BANKING CENTERS.

  (a) Insured Depository Institutions.--Section 8 of the 
Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by 
adding at the end the following new subsection:
  ``(x) `Green Banking' Centers.--
          ``(1) In general.--The Federal banking agencies shall 
        prescribe guidelines encouraging the establishment and 
        maintenance of `green banking' centers by insured 
        depository institutions to provide any consumer who 
        seeks information on obtaining a mortgage, home 
        improvement loan, home equity loan, or renewable energy 
        lease with additional information on--
                  ``(A) obtaining an home energy rating or 
                audit for the residence for which such mortgage 
                or loan is sought;
                  ``(B) obtaining financing for cost-effective 
                energy-saving improvements to such property; 
                and
                  ``(C) obtaining beneficial terms for any 
                mortgage or loan, or qualifying for a larger 
                mortgage or loan, secured by a residence which 
                meets or will meet energy efficiency standards.
          ``(2) Information and referrals.--The information 
        made available to consumers under paragraph (1) may 
        include--
                  ``(A) information on obtaining a home energy 
                rating and contact information on qualified 
                energy raters in the area of the residence;
                  ``(B) information on the secondary market 
                guidelines that permit lenders to provide more 
                favorable terms by allowing lenders to increase 
                the ratio on debt-to-income requirements or to 
                use the projected utility savings as a 
                compensating factor;
                  ``(C) information including eligibility 
                information about, and contact information for, 
                any conservation or renewable energy programs, 
                grants, or loans offered by the Secretary of 
                Housing and Urban Development, including the 
                Energy Efficient Mortgage Program;
                  ``(D) information including eligibility 
                information about, and contact information for, 
                any conservation or renewable energy programs, 
                grants, or loans offered for qualified military 
                personal, reservists, and veterans by the 
                Secretary of Veterans Affairs;
                  ``(E) information about, and contact 
                information for, the Office of Efficiency and 
                Renewable Energy at the Department of Energy, 
                including the weatherization assistance 
                program;
                  ``(F) information about, and contact 
                information for, the Energy Star Program of the 
                Environmental Protection Agency;
                  ``(G) information from, and contact 
                information for, the Federal Citizen 
                Information Center of the General Services 
                Administration on energy-efficient mortgages 
                and loans, home energy rating systems, and the 
                availability of energy-efficient mortgage 
                information from a variety of Federal agencies; 
                and
                  ``(H) such other information as the agencies 
                or the insured depository institution may 
                determine to be appropriate or useful.''.
  (b) Insured Credit Unions.--Section 206 of the Federal Credit 
Union Act (12 U.S.C. 1786) is amended by adding at the end the 
following new subsection:
  ``(x) `Green Banking' Centers.--
          ``(1) In general.--The Board shall prescribe 
        guidelines encouraging the establishment and 
        maintenance of `green banking' centers by insured 
        credit unions to provide any member who seeks 
        information on obtaining a mortgage, home improvement 
        loan, home equity loan, or renewable energy lease with 
        additional information on--
                  ``(A) obtaining an home energy rating or 
                audit for the residence for which such mortgage 
                or loan is sought;
                  ``(B) obtaining financing for cost-effective 
                energy-saving improvements to such property; 
                and
                  ``(C) obtaining beneficial terms for any 
                mortgage or loan, or qualifying for a larger 
                mortgage or loan, secured by a residence which 
                meets or will meet energy efficiency standards.
          ``(2) Information and referrals.--The information 
        made available to members under paragraph (1) may 
        include--
                  ``(A) information on obtaining a home energy 
                rating and contact information on qualified 
                energy raters in the area of the residence;
                  ``(B) information on the secondary market 
                guidelines that permit lenders to provide more 
                favorable terms by allowing lenders to increase 
                the ratio on debt-to-income requirements or to 
                use the projected utility savings as a 
                compensating factor;
                  ``(C) information including eligibility 
                information about, and contact information for, 
                any conservation or renewable energy programs, 
                grants, or loans offered by the Secretary of 
                Housing and Urban Development, including the 
                Energy Efficient Mortgage Program;
                  ``(D) information including eligibility 
                information about, and contact information for, 
                any conservation or renewable energy programs, 
                grants, or loans offered for qualified military 
                personal, reservists, and veterans by the 
                Secretary of Veterans Affairs;
                  ``(E) information about, and contact 
                information for, the Office of Efficiency and 
                Renewable Energy at the Department of Energy, 
                including the weatherization assistance 
                program;
                  ``(F) information from, and contact 
                information for, the Federal Citizen 
                Information Center of the General Services 
                Administration on energy-efficient mortgages 
                and loans, home energy rating systems, and the 
                availability of energy-efficient mortgage 
                information from a variety of Federal agencies; 
                and
                  ``(G) such other information as the Board or 
                the insured credit union may determine to be 
                appropriate or useful.''.

SEC. 299F. GAO REPORTS ON AVAILABILITY OF AFFORDABLE MORTGAGES.

  (a) Study.--The Comptroller General of the United States 
shall periodically, as necessary to comply with subsection (b), 
examine the impact of this subtitle and the amendments made by 
this subtitle on the availability of affordable mortgages in 
various areas throughout the United States, including cities 
having older infrastructure and limited space for the 
development of new housing.
  (b) Triennial Reports.--The Comptroller General shall submit 
a report once every 3 years to the Committee on Financial 
Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate that shall 
include--
          (1) a detailed statement of the most recent findings 
        pursuant to subsection (a); and
          (2) if the Comptroller General finds that this 
        subtitle or the amendments made by this subtitle have 
        directly or indirectly resulted in consequences that 
        limit the availability or affordability of mortgages in 
        any area or areas within the United States, including 
        any city having older infrastructure and limited space 
        for the development of new housing, any recommendations 
        for any additional actions at the Federal, State, or 
        local levels that the Comptroller General considers 
        necessary or appropriate to mitigate such effects.
The first report under this subsection shall be submitted not 
later than the expiration of the 3-year period beginning on the 
date of the enactment of this Act.

SEC. 299G. PUBLIC HOUSING ENERGY COST REPORT.

  (a) Collection of Information by HUD.--The Secretary of 
Housing and Urban Development shall obtain from each public 
housing agency, by such time as may be necessary to comply with 
the reporting requirement under subsection (b), information 
regarding the energy costs for public housing administered or 
operated by the agency. For each public housing agency, such 
information shall include the monthly energy costs associated 
with each separate building and development of the agency, for 
the most recently completed 12-month period for which such 
information is available, and such other information as the 
Secretary determines is appropriate in determining which public 
housing buildings and developments are most in need of repairs 
and improvements to reduce energy needs and costs and become 
more energy efficient.
  (b) Report.--Not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act, the 
Secretary of Housing and Urban Development shall submit a 
report to the Congress setting forth the information collected 
pursuant to subsection (a).

SEC. 299H. SECONDARY MARKET FOR RESIDENTIAL RENEWABLE ENERGY LEASE 
                    INSTRUMENTS.

  (a) Purposes.--The purposes of this section are--
          (1) to encourage residential use of renewable energy 
        systems by minimizing up-front costs and providing 
        immediate utility cost savings to consumers through 
        leasing of such systems to homeowners;
          (2) to reduce carbon emissions and the use of 
        nonrenewable resources;
          (3) to encourage energy-efficient residential 
        construction and rehabilitation;
          (4) to encourage the use of renewable resources by 
        homeowners;
          (5) to minimize the impact of development on the 
        environment;
          (6) to reduce consumer utility costs; and
          (7) to encourage private investment in the green 
        economy.
  (b) Residual Value of Renewable Energy Asset.--The Secretary 
of Housing and Urban Development shall establish a means of 
determining the residual value of a renewable energy asset such 
that a secondary market for residential renewable energy lease 
instruments may be facilitated. Such means may include, without 
limitation, the calculation of residual value based on the net 
present value of projected future energy production of the 
renewable energy asset.

SEC. 299I. GREEN GUARANTEES.

  (a) Authority To Guarantee ``Green Portion'' of Eligible 
Mortgages.--
          (1) In general.--The Secretary of Housing and Urban 
        Development may make commitments to guarantee under 
        this section and may guarantee, the repayment of the 
        portions of the principal obligations of eligible 
        mortgages that are used to finance eligible sustainable 
        building elements for the housing that is subject to 
        the mortgage.
          (2) Amount of guarantee.--A guarantee under this 
        section by the Secretary in connection with an eligible 
        mortgage shall not exceed a percentage of the green 
        portion (as such term is defined in subsection (g)) of 
        the mortgage, as shall be established by the Secretary 
        and may be established on a regional basis as the 
        Secretary determines appropriate.
  (b) Eligible Mortgages.--To be considered an eligible 
mortgage for purposes of this section, a mortgage shall comply 
with all of the following requirements:
          (1) Acquisition or construction of housing.--The 
        mortgage shall be made for the acquisition or 
        construction of single- or multifamily housing and 
        repayment of the mortgage shall be secured by an 
        interest in such housing.
          (2) Financing of eligible sustainable building 
        elements through green portion of mortgage.--A portion 
        of the principal obligation of the mortgage, which 
        meets the requirements under subsection (c), shall be 
        used only for financing the provision of eligible 
        sustainable building elements for the housing for which 
        the mortgage was made.
          (3) Maximum mortgage amount.--The principal 
        obligation of the mortgage (including the eligible 
        portion of such mortgage, and such initial service 
        charges, appraisal, inspection, and other fees as the 
        Secretary shall approve) may not exceed the following 
        amounts:
                  (A) Single-family housing.--Such dollar 
                amounts for single-family housing as the 
                Secretary shall establish, which may be 
                established on the basis of the number of 
                dwelling units in the housing, as the Secretary 
                considers appropriate.
                  (B) Multifamily housing.--Such dollar amounts 
                for multifamily housing as the Secretary shall 
                establish, which may be established on the 
                basis of the number of dwelling units in the 
                housing and the number of bedrooms in such 
                dwelling units, as the Secretary considers 
                appropriate.
          (4) Repayment.--The mortgage meets such requirements 
        as the Secretary shall establish to ensure that there 
        is a reasonable prospect of repayment of the principal 
        and interest on the obligation by the mortgagor.
          (5) Mortgage terms.--The mortgage shall meet such 
        requirements with respect to loan-to-value ratio, 
        mortgagor credit scores, debt-to-income ratio, and 
        other underwriting standards, term to maturity, 
        interest rates and amortization, including amortization 
        of the green portion of the mortgage, and other 
        mortgage terms as the Secretary shall establish.
  (c) Limitations on Green Portion of Mortgage.--The 
requirements under this subsection with respect to the green 
portion of an eligible mortgage are as follows:
          (1) Percentage limitation.--Such portion shall not 
        exceed, in the case of single-family or multifamily 
        housing, 10 percent of the total principal obligation 
        of the mortgage.
          (2) Dollar amount limitation.--Such portion shall not 
        exceed--
                  (A) in the case of single-family housing, 
                such maximum dollar amount limitation as the 
                Secretary shall establish, which may be 
                established on the basis of the number of 
                dwelling units in the housing, as the Secretary 
                considers appropriate; and
                  (B) in the case of multifamily housing, such 
                maximum dollar amount limitation as the 
                Secretary shall establish, which limitation may 
                be established on the basis of the number of 
                dwelling units in the housing and the number of 
                bedrooms in such dwelling units, as the 
                Secretary considers appropriate.
          (3) Cost-effectiveness limitation.--Such portion 
        shall not exceed the total present value of the savings 
        (as determined in accordance with subsection (d)) 
        attributable to the incorporation of the eligible 
        sustainable building elements to be financed with the 
        green portion of the mortgage that are to be realized 
        over the useful life of such elements.
  (d) Eligible Sustainable Building Elements.--The Secretary 
may not guarantee any eligible mortgage under this section 
unless the mortgagor has demonstrated, in accordance with such 
requirements as the Secretary shall establish, the amount of 
savings attributable to incorporation of the sustainable 
building elements to be financed with the green portion of the 
mortgage, as measured by the National Green Building Standard 
for all residential construction developed by the National 
Association of Home Builders and the U.S. Green Building 
Council, and approved by the American National Standards 
Institute, as updated and in effect at the time of such 
demonstration.
  (e) Guarantee Fee.--
          (1) Assessment and collection.--The Secretary shall 
        assess and collect fees for guarantees under this 
        section in amounts that the Secretary determines are 
        sufficient to cover the costs (as such term is defined 
        in section 502 of the Federal Credit Reform Act of 1990 
        (2 U.S.C. 661a)) of such guarantees.
          (2) Availability.--Fees collected under this 
        subsection shall be deposited by the Secretary in the 
        Treasury of the United States and shall remain 
        available until expended, subject to such other 
        conditions as are contained in annual appropriations 
        Acts.
  (f) Payment of Guarantee.--
          (1) Default.--
                  (A) Right to payment.--If a mortgagor under a 
                mortgage guaranteed under this section defaults 
                (as defined in regulations issued by the 
                Secretary and specified in the guarantee 
                contract) on the obligation under the 
                mortgage--
                          (i) the holder of the guarantee shall 
                        have the right to demand payment of the 
                        unpaid amount of the guaranteed portion 
                        of the mortgage, to the extent provided 
                        under subsection (a)(2), from the 
                        Secretary; and
                          (ii) within such period as may be 
                        specified in the guarantee or related 
                        agreements, the Secretary shall pay to 
                        the holder of the guarantee, to the 
                        extent provided under subsection 
                        (a)(2), the unpaid interest on, and 
                        unpaid principal of the portion of 
                        guaranteed portion of the mortgage with 
                        respect to which the borrower has 
                        defaulted, unless the Secretary finds 
                        that there was no default by the 
                        borrower in the payment of interest or 
                        principal or that the default has been 
                        remedied.
                  (B) Forbearance.--Nothing in this paragraph 
                precludes any forbearance by the holder of an 
                eligible mortgage for the benefit of the 
                mortgagor which may be agreed upon by the 
                parties to the mortgage and approved by the 
                Secretary.
          (2) Subrogation.--
                  (A) In general.--If the Secretary makes a 
                payment under paragraph (1), the Secretary 
                shall be subrogated to the rights of the 
                recipient of the payment as specified in the 
                guarantee or related agreements including, if 
                appropriate, the authority (notwithstanding any 
                other provision of law)--
                          (i) to complete, maintain, operate, 
                        lease, or otherwise dispose of any 
                        property acquired pursuant to such 
                        guarantee or related agreements; or
                          (ii) to permit the mortgagor, 
                        pursuant to an agreement with the 
                        Secretary, to continue to occupy the 
                        property subject to the mortgage, if 
                        the Secretary determines such occupancy 
                        to be appropriate.
                  (B) Superiority of rights.--The rights of the 
                Secretary, with respect to any property 
                acquired pursuant to a guarantee or related 
                agreements, shall be superior to the rights of 
                any other person with respect to the property.
                  (C) Terms and conditions.--A guarantee 
                agreement shall include such detailed terms and 
                conditions as the Secretary determines 
                appropriate to protect the interests of the 
                United States in the case of default.
          (3) Full faith and credit.--The full faith and credit 
        of the United States is pledged to the payment of all 
        guarantees issued under this section with respect to 
        principal and interest.
  (g) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Eligible mortgage.--The term ``eligible 
        mortgage'' means a mortgage that meets the requirements 
        under subsection (b).
          (2) Green portion.--The term ``green portion'' means, 
        with respect to an eligible mortgage, the portion of 
        the mortgage principal referred to in subsection (b)(2) 
        that is attributable, as determined in accordance with 
        regulations issued by the Secretary, to the increased 
        costs incurred in financing provision of sustainable 
        building elements for the housing for which the 
        mortgage was made, as compared to the costs that would 
        have been incurred in financing the provision of other 
        building elements for the housing for the same purposes 
        that are commonly or conventionally used but are not 
        sustainable building elements.
          (3) Guaranteed portion.--The term ``guaranteed 
        portion'' means, with respect to an eligible mortgage 
        guaranteed under this section, the green portion of the 
        mortgage that is so guaranteed.
          (4) Mortgage.--The term ``mortgage'' has the meaning 
        given such term in section 201 of the National Housing 
        Act (12 U.S.C. 1707).
          (5) Multifamily housing.--The term ``multifamily 
        housing'' means a residential property consisting of 
        five or more dwelling units.
          (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
          (7) Single-family housing.--The term ``single-family 
        housing'' means a residential property consisting of 
        one to four dwelling units.
          (8) Sustainable building element.--The term 
        ``sustainable building element'' means such building 
        elements, as the Secretary shall define, that have 
        energy efficiency or environmental sustainability 
        qualities that are superior to such qualities for other 
        building elements for the same purposes that are 
        commonly or conventionally used.
  (h) Authorization of Appropriations.--There is authorized to 
be appropriated for costs (as such term is defined in section 
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of 
guarantees under this section $500,000,000 for each of fiscal 
years 2010 through 2014.
  (i) Regulations.--The Secretary shall issue any regulations 
necessary to carry out this section.

  Page 566, line 22, insert ``offset'' before ``credit''.

  Page 567, line 8, strike ``allowances or offset credits'' and 
insert ``allowances, offset credits, or term offset credits''.

  Page 567, line 11, strike ``allowances or offset credits'' 
and insert ``allowances, offset credits, or term offset 
credits''.

  Page 577, line 16, insert ``offset'' before ``credits''.

  Page 578, line 3, insert ``offset'' before ``credits''.

  Page 586, after line 13, insert the following new paragraph:

          ``(2) Term offset credits.--
                  ``(A) In general.--Covered entities may, in 
                accordance with this paragraph, use non-expired 
                term offset credits instead of domestic offset 
                credits for purposes of temporarily 
                demonstrating compliance with this section.
                  ``(B) Amount.--The combined quantity of term 
                offset credits and domestic offset credits used 
                by a covered entity to demonstrate compliance 
                for its emissions or attributable greenhouse 
                gas emissions in any given year shall not 
                exceed the quantity of domestic offset credits 
                that a covered entity is entitled to use for 
                that year to demonstrate compliance in 
                accordance with paragraph (1).
                  ``(C) Expiration.--A term offset credit shall 
                expire in the year after its term ends. The 
                term of a term offset credit shall be 
                calculated by adding to the year of issuance 
                the number of years equal to the length of the 
                crediting period for the practice or project 
                for which the term offset credit was issued, 
                but in no case shall be later than the date 5 
                years from the date of issuance.
                  ``(D) Demonstrating compliance upon 
                expiration of term offset credit.--With respect 
                to the emissions for which a covered entity is 
                using term offset credits to demonstrate 
                compliance temporarily with this section, the 
                owner or operator of a covered entity shall not 
                be considered to be in compliance with the 
                prohibition in subsection (a) unless, as of 
                12:01 a.m. on April 1 (or a later date 
                established by the Administrator under 
                subsection (j)) of the calendar year in which a 
                term offset credit expires, the owner or 
                operator holds--
                          ``(i) for purposes of finally 
                        demonstrating compliance, an allowance 
                        or a domestic offset credit; or
                          ``(ii) for purposes of temporarily 
                        demonstrating compliance, a non-expired 
                        term offset credit.
                Domestic offset credits used for purposes of 
                finally demonstrating compliance under this 
                subparagraph shall not be subject to the 
                percentage limitations in subparagraph (B).
                  ``(E) Financial assurance.--A covered entity 
                may not use a term offset credit to demonstrate 
                compliance temporarily unless it simultaneously 
                provides to the Administrator financial 
                assurance that, at the end of the term offset 
                credit's crediting term, the covered entity 
                will have sufficient resources to obtain the 
                quantity of allowances or credits necessary to 
                demonstrate final compliance. The Administrator 
                shall issue regulations establishing 
                requirements for such financial assurance, 
                which shall take into account the increased 
                risk associated with longer crediting terms. 
                These regulations shall take into account the 
                total number of tons of carbon dioxide 
                equivalent of greenhouse gas emissions for 
                which a covered entity is demonstrating 
                compliance temporarily, and may set a limit on 
                this amount. In the event that a covered entity 
                that used term offset credits to demonstrate 
                compliance temporarily fails to meet the 
                requirements of subparagraph (D) at the end of 
                the term offset credits' crediting term, if the 
                financial assurance mechanism fails to provide 
                to the Administrator the number of allowances 
                or offset credits for which the crediting term 
                has expired, then the Administrator shall 
                retire that number of allowances with the 
                vintage year 2 years after the year in which 
                the term offset credit expires in the same 
                amount. Allowances so retired shall not be 
                counted as emission allowances established for 
                that calendar year under section 721(a).

  Page 586, lines 14 and 19, redesignate paragraphs (2) and (3) 
as paragraphs (3) and (4), respectively.

  Page 590, line 12, insert ``In the event that a covered 
entity fails to demonstrates compliance at the expiration of a 
term offset credit's crediting term as required by section 
722(d)(2)(D), the year of the violation shall be the year in 
which the term offset credit expires.'' after ``a separate 
violation.''.

  Page 590, line 16, insert ``, (d)(2),'' after ``section 
722(a)''.

  Page 591, line 25, insert ``, (d)(2),'' after ``section 
722(a)''.

  Page 593, line 2, strike ``allowance or offset credit'' and 
insert ``allowance, offset credit, or term offset credit''.

  Page 593, lines 10 and 11, strike ``allowances and offset 
credits'' and insert ``allowances, offset credits, and term 
offset credits''.

  Page 594, lines 2 through 4, strike ``allowance or offset 
credit established or issued by the Administrator under this 
title,'' and insert ``allowance, offset credit, or term offset 
credit, established or issued under the American Clean Energy 
and Security Act of 2009 or the amendments made thereby,''.

  Page 594, line 7, strike ``allowances or offset credits'' and 
insert ``allowances, offset credits, or term offset credits''.

  Page 594, lines 9 through 11, strike ``allowance or offset 
credit established or issued by the Administrator under this 
title'' and insert ``allowance, offset credit, or term offset 
credit, established or issued under the American Clean Energy 
and Security Act of 2009 or the amendments made thereby,''.

  Page 609, line 8, insert ``by promulgating new regulations'' 
after ``subsection (i)''.

  Page 690, lines 18 and 19, strike ``allowances or offset 
credits'' and insert ``allowances, offset credits, or term 
offset credits''.

  Page 691, lines 9 through 12, amend paragraph (17) to read as 
follows:

          ``(17) Domestic offset credit.--For purposes of part 
        D, the term `domestic offset credit' means an offset 
        credit issued under part D, other than an international 
        offset credit. For purposes of part C, the term means 
        any offset credit issued under the American Clean 
        Energy and Security Act of 2009, or the amendments made 
        thereby. The term does not include a term offset 
        credit.

  Page 693, beginning line 13, strike paragraph (29), relating 
to the definition of high conservation priority land.

  Page 693, line 24, strike ``allowance or offset credit'' and 
insert ``allowance, offset credit, or term offset credit''.

  Page 696, lines 1 and 2, amend paragraph (38) to read as 
follows:

          ``(38) Offset credit.--For purposes of this section 
        and part D, the term `offset credit' means an offset 
        credit issued under part D. For purposes of part C, the 
        term means any offset credit issued under the American 
        Clean Energy and Security Act of 2009, or the 
        amendments made thereby. The term does not include a 
        term offset credit.

  Page 696, beginning line 15, strike paragraph (42), relating 
to the definition of renewable biomass, and insert the 
following new paragraph:

          ``(42) Renewable biomass.--The term `renewable 
        biomass' means any of the following:
                  ``(A) Materials, pre-commercial thinnings, or 
                removed invasive species from National Forest 
                System land and public lands (as defined in 
                section 103 of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1702)), 
                including those that are byproducts of 
                preventive treatments (such as trees, wood, 
                brush, thinnings, chips, and slash), that are 
                removed as part of a federally recognized 
                timber sale, or that are removed to reduce 
                hazardous fuels, to reduce or contain disease 
                or insect infestation, or to restore ecosystem 
                health, and that are--
                          ``(i) not from components of the 
                        National Wilderness Preservation 
                        System, Wilderness Study Areas, 
                        Inventoried Roadless Areas, old growth 
                        stands, late-successional stands 
                        (except for dead, severely damaged, or 
                        badly infested trees), components of 
                        the National Landscape Conservation 
                        System, National Monuments, National 
                        Conservation Areas, Designated 
                        Primitive Areas, or Wild and Scenic 
                        Rivers corridors;
                          ``(ii) harvested in environmentally 
                        sustainable quantities, as determined 
                        by the appropriate Federal land 
                        manager; and
                          ``(iii) harvested in accordance with 
                        Federal and State law, and applicable 
                        land management plans.
                  ``(B) Any organic matter that is available on 
                a renewable or recurring basis from non-Federal 
                land or land belonging to an Indian or Indian 
                tribe that is held in trust by the United 
                States or subject to a restriction against 
                alienation imposed by the United States, 
                including--
                          ``(i) renewable plant material, 
                        including--
                                  ``(I) feed grains;
                                  ``(II) other agricultural 
                                commodities;
                                  ``(III) other plants and 
                                trees; and
                                  ``(IV) algae; and
                          ``(ii) waste material, including--
                                  ``(I) crop residue;
                                  ``(II) other vegetative waste 
                                material (including wood waste 
                                and wood residues);
                                  ``(III) animal waste and 
                                byproducts (including fats, 
                                oils, greases, and manure);
                                  ``(IV) construction waste; 
                                and
                                  ``(V) food waste and yard 
                                waste.
                  ``(C) Residues and byproducts from wood, 
                pulp, or paper products facilities.''.

  Page 700, lines 2 and 3, strike ``allowance or offset credit 
established or issued under this title,'' and insert 
``allowance, offset credit, or term offset credit, established 
or issued under the American Clean Energy and Security Act of 
2009 or the amendments made thereby,''.

  Page 700, lines 6 and 7, strike ``allowance or offset 
credit'' and insert ``allowance, offset credit, or term offset 
credit''.

  Page 704, line 1, strike ``entities''.

  Page 705, after line 24, insert the following new paragraph:

  ``(3) For vintage year 2012, the Administrator shall allocate 
0.35 percent of emission allowances established for such year 
under section 721(a) to avoid disincentives to the continued 
use of existing energy-efficient cogeneration facilities at 
industrial parks, to be distributed in accordance with section 
783(f).

  Page 713, after line 12, insert the following new paragraph:

          ``(3) To be distributed among the States in 
        accordance with the formula in section 132(b) of the 
        American Clean Energy and Security Act of 2009 and to 
        be used exclusively for the purposes of section 202 of 
        the American Clean Energy and Security Act of 2009 in 
        the following amounts:
                  ``(A) For vintage years 2012 through 2017, 
                0.05 percent of the emission allowances 
                established for each year under section 721(a).
                  ``(B) For vintage years 2018 through 2050, 
                0.03 percent of the emission allowances 
                established for each year under section 721(a).

  Page 715, lines 12 and 15, redesignate paragraphs (1) and (2) 
as subparagraphs (A) and (B), respectively, and move them 2 ems 
to the right.

  Page 715, lines 18 through 24, move the matter 2 ems to the 
right.

  Page 715, after line 24, insert the following new paragraph:

          ``(2) The Administrator shall auction, pursuant to 
        section 791, 0.75 percent of the emission allowances 
        established for each of vintage years 2012 and 2013 
        under section 721(a), and shall deposit the proceeds in 
        the Energy Efficiency and Renewable Energy Worker 
        Training Fund established by section 422 of the 
        American Clean Energy and Security Act of 2009.

  Page 720, line 10, insert ``and subsections (s) and (t)'' 
after ``(a) through (o)''.

  Page 720, line 15, insert ``and subsections (s) and (t)'' 
after ``(a) through (o)''.

  Page 722, line 3, strike ``or''.

  Page 722, line 5, insert ``or supplemental agriculture and 
renewable energy pursuant to subsection (u)(2) of this 
section,'' after ``of this section,''.

  Page 723, line 10, strike ``(e)(2) and (f)(2)'' and insert 
``(e)(2), (f)(2), and (u)(2)''.

  Page 723, lines 23 and 24, strike ``(e)(2) and (f)(2)'' and 
insert ``(e)(2), (f)(2), and (u)(2)''.

  Page 724, after line 8, insert the following new subsections:

  ``(t) Compensation for Early Actors.--For vintage year 2012, 
the Administrator shall allocate for compensation for early 
actors 1 percent of emission allowances established under 
section 721(a), to be distributed in accordance with section 
795 of the American Clean Energy and Security Act of 2009.
  ``(u) Supplemental Agriculture and Renewable Energy.--
          ``(1) In general.--For vintage years 2012 through 
        2016, the Administrator shall allocate 0.28 percent of 
        emission allowances established under section 721(a), 
        to be distributed in accordance with section 788 of the 
        American Clean Energy and Security Act of 2009.
          ``(2) Carryover.--After the Administrator distributes 
        emission allowances pursuant to section 788 for any 
        given vintage year, any emission allowances allocated 
        to supplemental agriculture and renewable energy 
        pursuant to this subsection that have not been so 
        distributed shall, in accordance with subsection (s), 
        be exchanged for allowances from the following vintage 
        year and treated as part of the allocation to such 
        entities for that later vintage year.

  Page 729, line 4, strike ``September 30, 2012'' and insert 
``January 1, 2013''.

  Page 729, lines 9 and 10, strike ``September 30, 2012'' and 
insert ``January 1, 2013''.

  Page 733, line 3, page 738, line 21, page 741, line 14, page 
743, line 13, page 756, line 8, strike ``(f)'' and insert 
``(g)''.

  Page 747, lines 21, through 23, strike ``provided that such 
year shall not be any year after 2012; or'' and insert ``if 
such unit commences operation before January 1, 2012;''.

  Page 748, line 3, strike the period and insert ``, and before 
October 1, 2012; or''.

  Page 748, after line 3, insert the following new clause:

                          ``(iii) calendar year 2013, if such 
                        unit commences operation on or after 
                        October 1, 2012, and before January 1, 
                        2013.

  Page 757, after line 19, insert the following new subsection:

  (f) Certain Cogeneration Facilities.--
          (1) Eligible cogeneration facilities.--For purposes 
        of this subsection, an ``eligible cogeneration 
        facility'' is a facility that--
                  (A) is a qualifying co-generation facility 
                (as that term is defined in section 3(18)(B) of 
                the Federal Power Act (16 U.S.C. 796(18)(B));
                  (B) derives 80 percent or more of its heat 
                input from coal, petroleum coke, or any 
                combination of these 2 fuels;
                  (C) has a nameplate capacity of 100 megawatts 
                or greater;
                  (D) was in operation as of January 1, 2009, 
                and remains in operation as of the date of any 
                distribution of emission allowances under this 
                subsection;
                  (E) in calendar years 2006 through 2008 sold, 
                and as of the date of any distribution of 
                emission allowances under this section sells, 
                steam or electricity directly and solely to 
                multiple, separately-owned industrial or 
                commercial facilities co-located at the same 
                site with the cogeneration facility; and
                  (F) is not eligible to receive allowances 
                under any other subsection of this section or 
                under part F of this title.
          (2) Distribution.--The Administrator shall distribute 
        the emission allowances allocated pursuant to section 
        782(a)(3) to owners or operators of eligible 
        cogeneration facilities ratably based on the carbon 
        dioxide emissions of each such facility in calendar 
        years 2006 through 2008. The Administrator--
                  (A) shall not, in any year, distribute 
                emission allowances under this subsection to 
                the owner or operator of any eligible 
                cogeneration facility in excess of the amount 
                necessary to offset such facility's cost of 
                compliance with the requirements of this title 
                in that year; and
                  (B) may distribute such allowances over a 
                period of years if annual distributions under 
                this subsection would otherwise exceed the 
                limitation in subparagraph (A), provided that 
                in no event shall distributions be made under 
                this subsection after calendar year 2025.
          (3) Requirements.--The Administrator shall, by 
        regulation, establish requirements to ensure that the 
        value of any emission allowances distributed pursuant 
        to this subsection are passed through, on an equitable 
        basis, to the facilities to which the relevant 
        cogeneration facility provides electricity or steam 
        deliveries, including any facility owned or operated by 
        the owner or operator of the cogeneration facility.

  Page 757, line 20, redesignate subsection (f) as subsection 
(g).

  Page 774, line 16, amend section 788 to read as follows:

``SEC. 788. SUPPLEMENTAL AGRICULTURE AND RENEWABLE ENERGY INCENTIVES 
                    PROGRAMS.

  ``(a) In General.--Emission allowances allocated pursuant to 
section 782(u) shall be distributed by the Administrator at the 
direction of the Secretary of Energy and the Secretary of 
Agriculture in accordance with this section. Not less than 50 
percent of the allowances shall be available for the program 
established pursuant to subsection (b).
  ``(b) Agriculture Incentives Program.--
          ``(1) Establishment.--The Secretary of Agriculture 
        shall establish by rule a program to provide incentives 
        in the form of emission allowances for activities 
        undertaken in the agriculture sector that reduce 
        greenhouse gas emissions or sequester carbon. Under 
        this program, the Secretary of Agriculture shall 
        provide incentives for projects and activities that--
                  ``(A) reduce or avoid greenhouse gas 
                emissions, or sequester greenhouse gases, but 
                do not meet the criteria for offset credits 
                established under the American Clean Energy and 
                Security Act of 2009;
                  ``(B) support actions to adapt to climate 
                change; or
                  ``(C) prevent conversion of land that would 
                increase greenhouse gas emissions (including 
                projects and activities that complement or 
                supplement conservation programs administered 
                by the Secretary).
          ``(2) Considerations.--In designing this program, the 
        Secretary shall ensure that it provides support for--
                  ``(A) development and demonstration of 
                practices to reduce greenhouse gas emissions or 
                sequester carbon in agricultural operations 
                where there are limited recognized 
                opportunities to achieve such emissions 
                reductions or sequestration; and
                  ``(B) projects that reduce greenhouse gas 
                emissions or increase sequestration of 
                greenhouse gases and also achieve other 
                significant environmental benefits, such as the 
                improvement of water or air quality.
          ``(3) Research.--The Secretary shall establish by 
        rule a program to conduct research to develop 
        additional projects and activities for crops to find 
        additional techniques and methods to reduce greenhouse 
        gas emissions or sequester greenhouse gases that may or 
        may not meet the criteria for offset credits 
        established under the American Clean Energy and 
        Security Act of 2009.
          ``(4) Use of information.--Information and data 
        generated by this program should, where relevant, be 
        used to inform the development of additional offset 
        practices and methodologies.
  ``(c) Renewable Energy Incentives Program.--The Secretary of 
Energy and the Administrator shall establish by rule a program 
to provide allowances to State and local governments to support 
the deployment of renewable energy infrastructure.''.

  Page 776, line 4, strike ``and''.

  Page 776, line 8, strike the period and insert ``; and''.

  Page 776, after line 8, insert the following new paragraph:

          ``(4) require that, once exchanged, the credit or 
        other instrument be retired for purposes of use under 
        the program by or for which it was originally issued.

  Page 785, line 16, strike the closing quotation mark and the 
second period.

  Page 785, after line 16, insert the following new section:

``SEC. 795. EXCHANGE FOR EARLY ACTION OFFSET CREDITS.

  ``(a) In General.--Emission allowances allocated pursuant to 
section 782(t) shall be distributed by the Administrator in 
accordance with this section. Not later than one year after the 
date of enactment of this title, the Administrator shall issue 
regulations allowing--
          ``(1) any person in the United States to exchange 
        instruments in the nature of offset credits issued 
        before January 1, 2009, by a State or voluntary offset 
        program with respect to which the Administrator has 
        made an affirmative determination under section 
        740(a)(2), for emissions allowances established by the 
        Administrator under section 721(a); and
          ``(2) the Administrator to provide compensation in 
        the form of emission allowances to entities that do not 
        meet the criteria of paragraph (1) and meet the 
        criteria of this paragraph for documented early 
        reductions or avoidance of greenhouse gas emissions or 
        greenhouse gases sequestered before January 1, 2009, 
        from projects begun before January 1, 2009, where--
                  ``(A) the entity publicly stated greenhouse 
                gas reduction goals and publicly reported 
                against those goals;
                  ``(B) the entity demonstrated entity-wide net 
                greenhouse gas reductions; and
                  ``(C) the entity demonstrates the actual 
                projects undertaken to make reductions and 
                documents the reductions (e.g., through 
                documentation of engineering projects).
  ``(b) Regulations.--Regulations issued under subsection (a) 
shall--
          ``(1) provide that a person exchanging credits under 
        subsection (a)(1) receive emission allowances 
        established under section 721(a) in an amount for which 
        the monetary value is equivalent to the average 
        monetary value of the credits during the period from 
        January 1, 2006, to January 1, 2009, as adjusted for 
        inflation to reflect current dollar values at the time 
        of the exchange;
          ``(2) provide that a person receiving compensation 
        for documented early action under subsection (a)(2) 
        shall receive emission allowances established under 
        section 721(a) in an amount that is approximately 
        equivalent in value to the carbon dioxide equivalent 
        per ton value received by entities in exchange for 
        credits under paragraph (1) (as adjusted for inflation 
        to reflect current dollar values at the time of the 
        exchange), as determined by the Administrator;
          ``(3) provide that only reductions or avoidance of 
        greenhouse gas emissions, or sequestration of 
        greenhouse gases, achieved by activities in the United 
        States between January 1, 2001, and January 1, 2009, 
        may be compensated under this section, and only credits 
        issued for such activities may be exchanged under this 
        section;
          ``(4) provide that only credits that have not been 
        retired or otherwise used to meet a voluntary or 
        mandatory commitment, and have not expired, may be 
        exchanged under subsection (a)(1);
          ``(5) require that, once exchanged, the credit be 
        retired for purposes of use under the program by or for 
        which it was originally issued; and
          ``(6) establish a deadline by which persons must 
        exchange the credits or request compensation for early 
        action under this section.
  ``(c) Participation.--Participation in an exchange of credits 
for allowances or compensation for early action authorized by 
this section shall not preclude any person from participation 
in an offset credit program established under the American 
Clean Energy and Security Act of 2009.
  ``(d) Distribution.--Of the emission allowances distributed 
under this section, a quantity equal to 0.75 percent of vintage 
year 2012 emission allowances established under section 721(a) 
shall be distributed pursuant to subsection (a)(1), and a 
quantity equal to 0.25 percent of vintage year 2012 emission 
allowances established under section 721(a) shall be 
distributed pursuant to subsection (a)(2).''.

  Page 856, after line 8, insert the following new section:

SEC. 340. REDUCING ACID RAIN AND MERCURY POLLUTION.

  Not later than 18 months after the date of enactment of this 
Act, the Administrator shall submit to Congress a report that 
analyzes the effects of different carbon dioxide reduction 
strategies and technologies on the emissions of mercury, sulfur 
dioxide, and nitrogen oxide, which cause acid rain, particulate 
matter, ground level ozone, mercury contamination, and other 
environmental problems. The report shall assess a variety of 
carbon reduction technologies, including the application of 
various carbon capture and sequestration technologies for both 
new and existing power plants. The report shall assess the 
current scientific and technical understanding of the interplay 
between the various technologies and emissions of air 
pollutants, identify hurdles to strategies that could cost-
effectively reduce emissions of multiple pollutants, and make 
appropriate recommendations.

  Page 856, strike lines 19 through 21.

  Page 856, line 22, strike ``(2)'' and insert ``(1)''.

  Page 857, strike lines 1 through 8.

  Page 857, line 9, strike ``(5)'' and insert ``(2)''.

  Page 857, strike line 15 and all that follows through line 7 
on page 858.

  Page 858, line 8, strike ``(7)'' and insert ``(3)''.

  Page 858, beginning on line 23, strike ``(including an 
entity's fraudulent or manipulative conduct with respect to 
regulated allowance derivatives that benefits the entity in 
regulated allowance markets)''.

  Page 860, line 3, strike ``over-the-counter trading'' and 
insert ``trading regulated allowances outside of trading 
facilities''.

  Page 870, strike line 18 and all that follows through line 5 
on page 871.

  Page 871, line 6, strike ``(7)'' and insert ``(6)''.

  Page 871, strike line 20 and all that follows through line 2 
on page 876.

  Page 876, line 3, strike ``(d)'' and insert ``(c)''.

  Page 876, line 10, strike ``President'' and insert 
``Commodity Futures Trading Commission''.

  Page 876, line 19, strike ``President'' and insert 
``Commodity Futures Trading Commission''.

  Page 877, strike lines 1 through 11.

  Page 877, line 12, strike ``(f)'' and insert ``(d)''.

  Page 877, line 21, strike ``(g)'' and insert ``(e)''.

  Page 878, line 4, strike ``(h)'' and insert ``(f)''.

  Page 878, beginning on line 7, strike ``Federal agency with 
jurisdiction over regulated allowance derivatives pursuant to 
subsection (c)(1)'' and insert ``Commodity Futures Trading 
Commission''.

  Page 878, line 9, strike ``collect and''.

  Page 878, strike line 24 and all that follows through line 7 
on page 879.

  Page 879, line 8, strike ``(E)'' and insert ``(D)''.

  Page 879, line 12, strike ``(F)'' and insert ``(E)''.

  Page 879, line 14, strike ``(G)'' and insert ``(F)''.

  Page 879, line 17, strike ``(H)'' and insert ``(G)''.

  Page 879, beginning on line 18, strike ``in conjunction with 
the entities, deems'' and insert ``and the Commodity Futures 
Trading Commission deem''.

  Page 879, line 23, strike ``Federal agency'' and insert 
``Commodity Futures Trading Commission''.

  Page 879, line 24, insert ``Committee on Agriculture and'' 
before ``Committee''.

  Page 879, line 25, insert ``Committee on Agriculture, 
Nutrition, and Forestry and'' before ``Committee''.

  Page 880, beginning on line 5, strike ``, in conjunction with 
the Federal agency, considers'' and insert ``and the Commodity 
Futures Trading Commission consider''.

  Page 880, strike lines 12 through 22.

  Page 880, line 23, strike ``(c)'' and insert ``(b)''.

  Page 881, line 5, strike ``(d)'' and insert ``(c)''.

  Page 881, line 6, strike ``401(f)'' and insert ``401(d)''.

  Page 882, before line 5, insert the following:

SEC. 342. CARBON DERIVATIVE MARKETS.

  (a) Section 1a(14) of the Commodity Exchange Act (7 U.S.C. 
1a(14)) is amended by striking ``or an agricultural commodity'' 
and inserting ``, an agricultural commodity, or any emission 
allowance, compensatory allowance, offset credit, or Federal 
renewable electricity credit established or issued under the 
American Clean Energy and Security Act of 2009''.
  (b) Section 4(c) of such Act (7 U.S.C. 6(c)) is amended by 
adding at the end the following:
          ``(6) This subsection does not apply to any 
        agreement, contract, or transaction for any emission 
        allowance, compensatory allowance, offset credit, or 
        Federal renewable electricity credit established or 
        issued under the American Clean Energy and Security Act 
        of 2009.''.

  Page 913, strike line 6 and all that follows through line 8 
on page 914 and insert the following:

SEC. 358. EFFECT OF DERIVATIVES REGULATORY REFORM LEGISLATION.

  (a) Statutes.--Upon the passage of legislation that includes 
derivatives regulatory reform, sections 351, 352, 354, 355, 
356, and 357 shall be repealed.
  (b) Regulations.--Upon the passage of legislation that 
includes derivatives regulatory reform, any regulations 
promulgated under section 351, 352, 354, 355, 356, or 357 shall 
be considered null and void.

  Page 923, after line 13, insert the following new section:

SEC. 360. PRESIDENTIAL REVIEW OF REGULATIONS.

  Not later than 24 months after the date of enactment of this 
Act, the President shall review the offset regulations and 
derivatives regulations promulgated pursuant to the American 
Clean Energy and Security Act of 2009. The President shall 
determine whether such regulations adequately protect the 
United States financial system from systemic risk.

  Page 923, line 16, through page 951, line 13, amend subtitle 
A to read as follows:

      Subtitle A--Ensuring Real Reductions in Industrial Emissions

SEC. 401. ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS.

  Title VII of the Clean Air Act is amended by inserting after 
part E the following new part:

       ``PART F--ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS

``SEC. 761. PURPOSES.

  ``(a) Purposes of Part.--The purposes of this part are--
          ``(1) to promote a strong global effort to 
        significantly reduce greenhouse gas emissions, and, 
        through this global effort, stabilize greenhouse gas 
        concentrations in the atmosphere at a level that will 
        prevent dangerous anthropogenic interference with the 
        climate system; and
          ``(2) to prevent an increase in greenhouse gas 
        emissions in countries other than the United States as 
        a result of direct and indirect compliance costs 
        incurred under this title.
  ``(b) Purposes of Subpart 1.--The purposes of subpart 1 are 
additionally--
          ``(1) to provide a rebate to the owners and operators 
        of entities in domestic eligible industrial sectors for 
        their greenhouse gas emission costs incurred under this 
        title, but not for costs associated with other related 
        or unrelated market dynamics;
          ``(2) to design such rebates in a way that will 
        prevent carbon leakage while also rewarding innovation 
        and facility-level investments in energy efficiency 
        performance improvements; and
          ``(3) to eliminate or reduce distribution of emission 
        allowances under subpart 1 when such distribution is no 
        longer necessary to prevent carbon leakage from 
        eligible industrial sectors.
  ``(c) Purposes of Subpart 2.--The purposes of subpart 2 are 
additionally--
          ``(1) to induce foreign countries, and, in 
        particular, fast-growing developing countries, to take 
        substantial action with respect to their greenhouse gas 
        emissions consistent with the Bali Action Plan 
        developed under the United Nations Framework Convention 
        on Climate Change; and
          ``(2) to ensure that the measures described in 
        subpart 2 are designed and implemented in a manner 
        consistent with applicable international agreements to 
        which the United States is a party.

``SEC. 762. DEFINITIONS.

  ``In this part:
          ``(1) Carbon leakage.--The term `carbon leakage' 
        means any substantial increase (as determined by the 
        Administrator) in greenhouse gas emissions by 
        industrial entities located in other countries if such 
        increase is caused by an incremental cost of production 
        increase in the United States resulting from the 
        implementation of this title.
          ``(2) Covered good.--The term `covered good' means a 
        good that, as identified by the Administrator by 
        regulation, is either--
                  ``(A) entered under a heading or subheading 
                of the Harmonized Tariff Schedule of the United 
                States that corresponds to the NAICS code for 
                an eligible industrial sector, as established 
                in the concordance between NAICS codes and the 
                Harmonized Tariff Schedule of the United States 
                prepared by the United States Census Bureau; or
                  ``(B) a manufactured item for consumption.
          ``(3) Eligible industrial sector.--The term `eligible 
        industrial sector' means an industrial sector 
        determined by the Administrator under section 763(b) to 
        be eligible to receive emission allowance rebates under 
        subpart 1.
          ``(4) Industrial sector.--The term `industrial 
        sector' means any sector that is in the manufacturing 
        sector (as defined in NAICS codes 31, 32, and 33) or 
        that beneficiates or otherwise processes (including 
        agglomeration) metal ores, including iron and copper 
        ores, soda ash, or phosphate. The extraction of metal 
        ores, soda ash, or phosphate shall not be considered to 
        be an industrial sector.
          ``(5) Manufactured item for consumption.--
                  ``(A) In general.--The term `manufactured 
                item for consumption' means any good--
                          ``(i) that includes in substantial 
                        amounts one or more goods like the 
                        goods produced by an eligible 
                        industrial sector;
                          ``(ii) with respect to which an 
                        international reserve allowance program 
                        pursuant to subpart 2 is in effect with 
                        regard to the eligible industrial 
                        sector and the quantity of 
                        international reserve allowances is not 
                        zero pursuant to section 768(b);
                          ``(iii) with respect to which the 
                        trade intensity of the industrial 
                        sector that produces the good, as 
                        measured consistent with section 
                        763(b)(2)(A)(iii), is at least 15 
                        percent; and
                          ``(iv) for which the domestic 
                        producers of the good have 
                        demonstrated, and the Administrator has 
                        determined, that the application of the 
                        international reserve allowance program 
                        pursuant to subpart 2 is technically 
                        and administratively feasible and 
                        appropriate to achieve the purposes of 
                        this part, taking into account the 
                        energy and greenhouse gas intensity of 
                        the industrial sector that produces the 
                        good, as measured consistent with 
                        section 763(b)(2)(A)(ii), and the 
                        ability of such producers to pass on 
                        cost increases and other appropriate 
                        factors.
                  ``(B) Rule of construction.--A determination 
                of the Administrator under subparagraph (A)(iv) 
                shall not be considered to be a determination 
                of the President under section 767(b).
          ``(6) NAICS.--The term `NAICS' means the North 
        American Industrial Classification System of 2002.
          ``(7) Output.--The term `output' means the total 
        tonnage or other standard unit of production (as 
        determined by the Administrator) produced by an entity 
        in an industrial sector. The output of the cement 
        sector is hydraulic cement, and not clinker.

             ``Subpart 1--Emission Allowance Rebate Program

``SEC. 763. ELIGIBLE INDUSTRIAL SECTORS.

  ``(a) List.--
          ``(1) Initial list.--Not later than June 30, 2011, 
        the Administrator shall publish in the Federal Register 
        a list of eligible industrial sectors pursuant to 
        subsection (b). Such list shall include the amount of 
        the emission allowance rebate per unit of production 
        that shall be provided to entities in each eligible 
        industrial sector in the following two calendar years 
        pursuant to section 764.
          ``(2) Subsequent lists.--Not later than February 1, 
        2013, and every four years thereafter, the 
        Administrator shall publish in the Federal Register an 
        updated version of the list published under paragraph 
        (1).
  ``(b) Eligible Industrial Sectors.--
          ``(1) In general.--Not later than June 30, 2011, the 
        Administrator shall promulgate a rule designating, 
        based on the criteria under paragraph (2), the 
        industrial sectors eligible for emission allowance 
        rebates under this subpart.
          ``(2) Presumptively eligible industrial sectors.--
                  ``(A) Eligibility criteria.--
                          ``(i) In general.--An owner or 
                        operator of an entity shall be eligible 
                        to receive emission allowance rebates 
                        under this subpart if such entity is in 
                        an industrial sector that is included 
                        in a six-digit classification of the 
                        NAICS that meets the criteria in both 
                        clauses (ii) and (iii), or the criteria 
                        in clause (iv).
                          ``(ii) Energy or greenhouse gas 
                        intensity.--As determined by the 
                        Administrator, the industrial sector 
                        had--
                                  ``(I) an energy intensity of 
                                at least 5 percent, calculated 
                                by dividing the cost of 
                                purchased electricity and fuel 
                                costs of the sector by the 
                                value of the shipments of the 
                                sector, based on data described 
                                in subparagraph (D); or
                                  ``(II) a greenhouse gas 
                                intensity of at least 5 
                                percent, calculated by 
                                dividing--
                                          ``(aa) the number 20 
                                        multiplied by the 
                                        number of tons of 
                                        carbon dioxide 
                                        equivalent greenhouse 
                                        gas emissions 
                                        (including direct 
                                        emissions from fuel 
                                        combustion, process 
                                        emissions, and indirect 
                                        emissions from the 
                                        generation of 
                                        electricity used to 
                                        produce the output of 
                                        the sector) of the 
                                        sector based on data 
                                        described in 
                                        subparagraph (D); by
                                          ``(bb) the value of 
                                        the shipments of the 
                                        sector, based on data 
                                        described in 
                                        subparagraph (D).
                          ``(iii) Trade intensity.--As 
                        determined by the Administrator, the 
                        industrial sector had a trade intensity 
                        of at least 15 percent, calculated by 
                        dividing the value of the total imports 
                        and exports of such sector by the value 
                        of the shipments plus the value of 
                        imports of such sector, based on data 
                        described in subparagraph (D).
                          ``(iv) Very high energy or greenhouse 
                        gas intensity.--As determined by the 
                        Administrator, the industrial sector 
                        had an energy or greenhouse gas 
                        intensity, as calculated under clause 
                        (ii)(I) or (II), of at least 20 
                        percent.
                  ``(B) Metal and phosphate production 
                classified under more than one naics code.--For 
                purposes of this section, the Administrator 
                shall--
                          ``(i) aggregate data for the 
                        beneficiation or other processing 
                        (including agglomeration) of metal 
                        ores, including iron and copper ores, 
                        soda ash, or phosphate with subsequent 
                        steps in the process of metal and 
                        phosphate manufacturing, regardless of 
                        the NAICS code under which such 
                        activity is classified; and
                          ``(ii) aggregate data for the 
                        manufacturing of steel with the 
                        manufacturing of steel pipe and tube 
                        made from purchased steel in a 
                        nonintegrated process.
                  ``(C) Exclusion.--The petroleum refining 
                sector shall not be an eligible industrial 
                sector.
                  ``(D) Data sources.--
                          ``(i) Electricity and fuel costs, 
                        value of shipments.--The Administrator 
                        shall determine electricity and fuel 
                        costs and the value of shipments under 
                        this subsection from data from the 
                        United States Census Annual Survey of 
                        Manufacturers. The Administrator shall 
                        take the average of data from as many 
                        of the years of 2004, 2005, and 2006 
                        for which such data are available. If 
                        such data are unavailable, the 
                        Administrator shall make a 
                        determination based upon 2002 or 2006 
                        data from the most detailed industrial 
                        classification level of Energy 
                        Information Agency's Manufacturing 
                        Energy Consumption Survey (using 2006 
                        data if it is available) and the 2002 
                        or 2007 Economic Census of the United 
                        States (using 2007 data if it is 
                        available). If data from the 
                        Manufacturing Energy Consumption Survey 
                        or Economic Census are unavailable for 
                        any sector at the six-digit 
                        classification level in the NAICS, then 
                        the Administrator may extrapolate the 
                        information necessary to determine the 
                        eligibility of a sector under this 
                        paragraph from available Manufacturing 
                        Energy Consumption Survey or Economic 
                        Census data pertaining to a broader 
                        industrial category classified in the 
                        NAICS. If data relating to the 
                        beneficiation or other processing 
                        (including agglomeration) of metal 
                        ores, including iron and copper ores, 
                        soda ash, or phosphate are not 
                        available from the specified data 
                        sources, the Administrator shall use 
                        the best available Federal or State 
                        government data and may use, to the 
                        extent necessary, representative data 
                        submitted by entities that perform such 
                        beneficiation or other processing 
                        (including agglomeration), in making a 
                        determination. Fuel cost data shall not 
                        include the cost of fuel used as 
                        feedstock by an industrial sector.
                          ``(ii) Imports and exports.--The 
                        Administrator shall base the value of 
                        imports and exports under this 
                        subsection on United States 
                        International Trade Commission data. 
                        The Administrator shall take the 
                        average of data from as many of the 
                        years of 2004, 2005, and 2006 for which 
                        such data are available. If data from 
                        the United States International Trade 
                        Commission are unavailable for any 
                        sector at the six-digit classification 
                        level in the NAICS, then the 
                        Administrator may extrapolate the 
                        information necessary to determine the 
                        eligibility of a sector under this 
                        paragraph from available United States 
                        International Trade Commission data 
                        pertaining to a broader industrial 
                        category classified in the NAICS.
                          ``(iii) Percentages.--The 
                        Administrator shall round the energy 
                        intensity, greenhouse gas intensity, 
                        and trade intensity percentages under 
                        subparagraph (A) to the nearest whole 
                        number.
                          ``(iv) Greenhouse gas emission 
                        calculations.--When calculating the 
                        tons of carbon dioxide equivalent 
                        greenhouse gas emissions for each 
                        sector under subparagraph 
                        (A)(ii)(II)(aa), the Administrator--
                                  ``(I) shall use the best 
                                available data from as many of 
                                the years 2004, 2005, and 2006 
                                for which such data is 
                                available; and
                                  ``(II) may, to the extent 
                                necessary with respect to a 
                                sector, use economic and 
                                engineering models and the best 
                                available information on 
                                technology performance levels 
                                for such sector.
          ``(3) Administrative determination of additional 
        eligible industrial sectors.--
                  ``(A) Updated trade intensity data.--The 
                Administrator shall designate as eligible to 
                receive emission allowance rebates under this 
                subpart an industrial sector that--
                          ``(i) met the energy or greenhouse 
                        gas intensity criteria in paragraph 
                        (2)(A)(ii) as of the date of 
                        promulgation of the rule under 
                        paragraph (1); and
                          ``(ii) meets the trade intensity 
                        criteria in paragraph (2)(A)(iii), 
                        using data from any year after 2006.
                  ``(B) Individual showing petition.--
                          ``(i) Petition.--In addition to 
                        designation under paragraph (2) or 
                        subparagraph (A) of this paragraph, the 
                        owner or operator of an entity in an 
                        industrial sector may petition the 
                        Administrator to designate as eligible 
                        industrial sectors under this subpart 
                        an entity or a group of entities that--
                                  ``(I) represent a subsector 
                                of a six-digit section of the 
                                NAICS code; and
                                  ``(II) meet the eligibility 
                                criteria in both clauses (ii) 
                                and (iii) of paragraph (2)(A), 
                                or the eligibility criteria in 
                                clause (iv) of paragraph 
                                (2)(A).
                          ``(ii) Data.--In making a 
                        determination under this subparagraph, 
                        the Administrator shall consider data 
                        submitted by the petitioner that is 
                        specific to the entity, data solicited 
                        by the Administrator from other 
                        entities in the subsector, if such 
                        other entities exist, and data 
                        specified in paragraph (2)(D).
                          ``(iii) Basis of subsector 
                        determination.--The Administrator shall 
                        determine an entity or group of 
                        entities to be a subsector of a six-
                        digit section of the NAICS code based 
                        only upon the products manufactured and 
                        not the industrial process by which the 
                        products are manufactured, except that 
                        the Administrator may determine an 
                        entity or group of entities that 
                        manufacture a product from primarily 
                        virgin material to be a separate 
                        subsector from another entity or group 
                        of entities that manufacture the same 
                        product primarily from recycled 
                        material.
                          ``(iv) Use of most recent data.--In 
                        determining whether to designate a 
                        sector or subsector as an eligible 
                        industrial sector under this 
                        subparagraph, the Administrator shall 
                        use the most recent data available from 
                        the sources described in paragraph 
                        (2)(D), rather than the data from the 
                        years specified in paragraph (2)(D), to 
                        determine the trade intensity of such 
                        sector or subsector, but only for 
                        determining such trade intensity.
                          ``(v) Final action.--The 
                        Administrator shall take final action 
                        on such petition no later than 6 months 
                        after the petition is received by the 
                        Administrator.

``SEC. 764. DISTRIBUTION OF EMISSION ALLOWANCE REBATES.

  ``(a) Distribution Schedule.--
          ``(1) In general.--For each vintage year, the 
        Administrator shall distribute pursuant to this section 
        emission allowances made available under section 
        782(e), no later than October 31 of the preceding 
        calendar year. The Administrator shall make such annual 
        distributions to the owners and operators of each 
        entity in an eligible industrial sector in the amount 
        of emission allowances calculated under subsection (b), 
        except that--
                  ``(A) for vintage years 2012 and 2013, the 
                distribution for a covered entity shall be 
                pursuant to the entity's indirect carbon factor 
                as calculated under subsection (b)(3);
                  ``(B) for vintage year 2026 and thereafter, 
                the distribution shall be pursuant to the 
                amount calculated under subsection (b) 
                multiplied by, except as modified by the 
                President pursuant to section 767(d)(1)(C) for 
                a sector--
                          ``(i) 90 percent for vintage year 
                        2026;
                          ``(ii) 80 percent for vintage year 
                        2027;
                          ``(iii) 70 percent for vintage year 
                        2028;
                          ``(iv) 60 percent for vintage year 
                        2029;
                          ``(v) 50 percent for vintage year 
                        2030;
                          ``(vi) 40 percent for vintage year 
                        2031;
                          ``(vii) 30 percent for vintage year 
                        2032;
                          ``(viii) 20 percent for vintage year 
                        2033;
                          ``(ix) 10 percent for vintage year 
                        2034; and
                          ``(x) 0 percent for vintage year 2035 
                        and thereafter.
          ``(2) Resumption of reduction.--If the President has 
        modified the percentage stated in paragraph (1)(B) 
        under section 767(d)(1)(C), and the President 
        subsequently makes a determination under section 767(c) 
        for an eligible industrial sector that more than 85 
        percent of United States imports for that sector are 
        produced or manufactured in countries that have met at 
        least one of the criteria in that section, then the 10-
        year reduction schedule set forth in paragraph (1)(B) 
        of this subsection shall begin in the next vintage 
        year, with the percentage reduction based on the amount 
        of the distribution of emission allowances under this 
        section in the previous year.
          ``(3) Newly eligible sectors.--In addition to 
        receiving a distribution of emission allowances under 
        this section in the first distribution occurring after 
        an industrial sector is designated as eligible under 
        section 763(b)(3), the owner or operator of an entity 
        in that eligible industrial sector may receive a 
        prorated share of any emission allowances made 
        available for distribution under this section that were 
        not distributed for the year in which the petition for 
        eligibility was granted under section 763(b)(3)(A).
          ``(4) Cessation of qualifying activities.--If, as 
        determined by the Administrator, a facility is no 
        longer in an eligible industrial sector designated 
        under section 763--
                  ``(A) the Administrator shall not distribute 
                emission allowances to the owner or operator of 
                such facility under this section; and
                  ``(B) the owner or operator of such facility 
                shall return to the Administrator all 
                allowances that have been distributed to it for 
                future vintage years and a pro-rated amount of 
                allowances distributed to the facility under 
                this section for the vintage year in which the 
                facility ceases to be in an eligible industrial 
                sector designated under section 763.
  ``(b) Calculation of Direct and Indirect Carbon Factors.--
          ``(1) In general.--
                  ``(A) Covered entities.--Except as provided 
                in subsection (a), for covered entities that 
                are in eligible industrial sectors, the amount 
                of emission allowance rebates shall be based on 
                the sum of the covered entity's direct and 
                indirect carbon factors.
                  ``(B) Other eligible entities.--For entities 
                that are in eligible industrial sectors but are 
                not covered entities, the amount of emission 
                allowance rebates shall be based on the 
                entity's indirect carbon factor.
                  ``(C) New entities.--Not later than 2 years 
                after the date of enactment of this title, the 
                Administrator shall issue regulations governing 
                the distribution of emission allowance rebates 
                for the first and second years of operation of 
                a new entity in an eligible industrial sector. 
                These regulations shall provide for--
                          ``(i) the distribution of emission 
                        allowance rebates to such entities 
                        based on comparable entities in the 
                        same sector; and
                          ``(ii) an adjustment in the third and 
                        fourth years of operation to reconcile 
                        the total amount of emission allowance 
                        rebates received during the first and 
                        second years of operation to the amount 
                        the entity would have received during 
                        the first and second years of operation 
                        had the appropriate data been 
                        available.
          ``(2) Direct carbon factor.--The direct carbon factor 
        for a covered entity for a vintage year is the product 
        of--
                  ``(A) the average annual output of the 
                covered entity for the two years preceding the 
                year of the distribution; and
                  ``(B) the most recent calculation of the 
                average direct greenhouse gas emissions 
                (expressed in tons of carbon dioxide 
                equivalent) per unit of output for all covered 
                entities in the sector, as determined by the 
                Administrator under paragraph (4).
          ``(3) Indirect carbon factor.--
                  ``(A) In general.--The indirect carbon factor 
                for an entity for a vintage year is the product 
                obtained by multiplying the average annual 
                output of the entity for the two years 
                preceding the year of the distribution by both 
                the electricity emissions intensity factor 
                determined pursuant to subparagraph (B) and the 
                electricity efficiency factor determined 
                pursuant to subparagraph (C) for the year 
                concerned.
                  ``(B) Electricity emissions intensity 
                factor.--
                          ``(i) In general.--Each person 
                        selling electricity to the owner or 
                        operator of an entity in any sector 
                        designated as an eligible industrial 
                        sector under section 763(b) shall 
                        provide the owner or operator of the 
                        entity and the Administrator, on an 
                        annual basis, the electricity emissions 
                        intensity factor for the entity. The 
                        electricity emissions intensity factor 
                        for the entity, expressed in tons of 
                        carbon dioxide equivalents per kilowatt 
                        hour, is determined by dividing--
                                  ``(I) the annual sum of the 
                                hourly product of--
                                          ``(aa) the 
                                        electricity purchased 
                                        by the entity from that 
                                        person in each hour 
                                        (expressed in kilowatt 
                                        hours); multiplied by
                                          ``(bb) the marginal 
                                        or weighted average 
                                        tons of carbon dioxide 
                                        equivalent per kilowatt 
                                        hour that are reflected 
                                        in the electricity 
                                        charges to the entity, 
                                        as determined by the 
                                        entity's retail rate 
                                        arrangements; by
                                  ``(II) the total kilowatt 
                                hours of electricity purchased 
                                by the entity from that person 
                                during that year.
                          ``(ii) Use of other data to determine 
                        factor.--Where it is not possible to 
                        determine the precise electricity 
                        emissions intensity factor for an 
                        entity using the methodology in clause 
                        (i), the person selling electricity 
                        shall use the monthly average data 
                        reported by the Energy Information 
                        Administration or collected and 
                        reported by the Administrator for the 
                        utility serving the entity to determine 
                        the electricity emissions intensity 
                        factor.
                  ``(C) Electricity efficiency factor.--The 
                electricity efficiency factor is the average 
                amount of electricity (in kilowatt hours) used 
                per unit of output for all entities in the 
                relevant sector, as determined by the 
                Administrator based on the best available data, 
                including data provided under paragraph (6).
                  ``(D) Indirect carbon factor reduction.--If 
                an electricity provider received a free 
                allocation of emission allowances pursuant to 
                section 782(a), the Administrator shall adjust 
                the indirect carbon factor to avoid rebates to 
                the eligible entity for costs that the 
                Administrator determines were not incurred by 
                the eligible entity because the allowances were 
                freely allocated to the eligible entity's 
                electricity provider and used for the benefit 
                of industrial consumers.
          ``(4) Greenhouse gas intensity calculations.--The 
        Administrator shall calculate the average direct 
        greenhouse gas emissions (expressed in tons of carbon 
        dioxide equivalent) per unit of output and the 
        electricity efficiency factor for all covered entities 
        in each eligible industrial sector every four years, 
        using an average of the four most recent years of the 
        best available data. For purposes of the lists required 
        to be published no later than February 1, 2013, the 
        Administrator shall use the best available data for the 
        maximum number of years, up to 4 years, for which data 
        are available.
          ``(5) Ensuring efficiency improvements.--When making 
        greenhouse gas calculations, the Administrator shall--
                  ``(A) limit the average direct greenhouse gas 
                emissions per unit of output, calculated under 
                paragraph (4), for any eligible industrial 
                sector to an amount that is not greater than it 
                was in any previous calculation under this 
                subsection;
                  ``(B) limit the electricity emissions 
                intensity factor, calculated under paragraph 
                (3)(B) and resulting from a change in 
                electricity supply, for any entity to an amount 
                that is not greater than it was during any 
                previous year; and
                  ``(C) limit the electricity efficiency 
                factor, calculated under paragraph (3)(C), for 
                any eligible industrial sector to an amount 
                that is not greater than it was in any previous 
                calculation under this subsection.
          ``(6) Data sources.--For the purposes of this 
        subsection--
                  ``(A) the Administrator shall use data from 
                the greenhouse gas registry established under 
                section 713, where it is available; and
                  ``(B) each owner or operator of an entity in 
                an eligible industrial sector and each 
                department, agency, and instrumentality of the 
                United States shall provide the Administrator 
                with such information as the Administrator 
                finds necessary to determine the direct carbon 
                factor and the indirect carbon factor for each 
                entity subject to this section.
  ``(c) Total Maximum Distribution.--Notwithstanding 
subsections (a) and (b), the Administrator shall not distribute 
more allowances for any vintage year pursuant to this section 
than are allocated for use under this subpart pursuant to 
section 782(e) for that vintage year. For any vintage year for 
which the total emission allowance rebates calculated pursuant 
to this section exceed the number of allowances allocated 
pursuant to section 782(e), the Administrator shall reduce each 
entity's distribution on a pro rata basis so that the total 
distribution under this section equals the number of allowances 
allocated under section 782(e).
  ``(d) Iron and Steel Sector.--For purposes of this section, 
the Administrator shall consider as in different industrial 
sectors--
          ``(1) entities using integrated iron and steelmaking 
        technologies (including coke ovens, blast furnaces, and 
        other iron-making technologies); and
          ``(2) entities using electric arc furnace 
        technologies.
  ``(e) Metal, Soda Ash, or Phosphate Production Classified 
Under More Than One Naics Code.--For purposes of this section, 
the Administrator shall not aggregate data for the 
beneficiation or other processing (including agglomeration) of 
metal ores, soda ash, or phosphate with subsequent steps in the 
process of metal, soda ash, or phosphate manufacturing. The 
Administrator shall consider the beneficiation or other 
processing (including agglomeration) of metal ores, soda ash, 
or phosphate to be in separate industrial sectors from the 
metal, soda ash, or phosphate manufacturing sectors. Industrial 
sectors that beneficiate or otherwise process (including 
agglomeration) metal ores, soda ash, or phosphate shall not 
receive emission allowance rebates under this section related 
to the activity of extracting metal ores, soda ash, or 
phosphate.
  ``(f) Combined Heat and Power.--For purposes of this section, 
and to achieve the purpose set forth in section 761(b)(2), the 
Administrator may consider entities to be in different 
industrial sectors or otherwise take into account the 
differences among entities in the same industrial sector, based 
upon the extent to which such entities use combined heat and 
power technologies.

``Subpart 2--Promoting International Reductions in Industrial Emissions

``SEC. 765. INTERNATIONAL NEGOTIATIONS.

  ``(a) Finding.--Congress finds that the purposes of this 
subpart, as set forth in section 761(c), can be most 
effectively addressed and achieved through agreements 
negotiated between the United States and foreign countries.
  ``(b) Statement of Policy.--It is the policy of the United 
States to work proactively under the United Nations Framework 
Convention on Climate Change, and in other appropriate fora, to 
establish binding agreements, including sectoral agreements, 
committing all major greenhouse gas-emitting nations to 
contribute equitably to the reduction of global greenhouse gas 
emissions.
  ``(c) Notification of Foreign Countries.--
          ``(1) In general.--As soon as practicable after the 
        date of the enactment of this title, the President 
        shall provide a notification on climate change 
        described in paragraph (2) to each foreign country the 
        products of which are not exempted under section 
        768(a)(1)(E).
          ``(2) Notification described.--A notification 
        described in this paragraph is a notification that 
        consists of--
                  ``(A) a statement of the policy of the United 
                States described in subsection (b); and
                  ``(B) a declaration--
                          ``(i) requesting the foreign country 
                        to take appropriate measures to limit 
                        the greenhouse gas emissions of the 
                        foreign country; and
                          ``(ii) indicating that, beginning on 
                        January 1, 2020, the international 
                        reserve requirements of this subpart 
                        may apply to a covered good.

``SEC. 766. UNITED STATES NEGOTIATING OBJECTIVES WITH RESPECT TO 
                    MULTILATERAL ENVIRONMENTAL NEGOTIATIONS.

  ``(a) In General.--The negotiating objectives of the United 
States with respect to multilateral environmental negotiations 
described in this subpart are--
          ``(1) to reach an internationally binding agreement 
        in which all major greenhouse gas-emitting countries 
        contribute equitably to the reduction of global 
        greenhouse gas emissions;
          ``(2)(A) to include in such international agreement 
        provisions that recognize and address the competitive 
        imbalances that lead to carbon leakage and may be 
        created between parties and non-parties to the 
        agreement in domestic and export markets; and
          ``(B) not to prevent parties to such agreement from 
        addressing the competitive imbalances that lead to 
        carbon leakage and may be created by the agreement 
        among parties to the agreement in domestic and export 
        markets ; and
          ``(3) to include in such international agreement 
        agreed remedies for any party to the agreement that 
        fails to meet its greenhouse gas reduction obligations 
        in the agreement.
  ``(b) Rule of Construction.--Nothing in subsection (a)(2) 
shall be construed to require the United States to alter the 
provisions of section 764 .

``SEC. 767. PRESIDENTIAL REPORTS AND DETERMINATIONS.

  ``(a) Report.--Not later than January 1, 2017, and every 2 
years thereafter, the President shall submit a report to 
Congress on the effectiveness of the distribution of emission 
allowance rebates under subpart 1 in mitigating carbon leakage 
in eligible industrial sectors. Such report shall also 
include--
          ``(1) an assessment, for each eligible industrial 
        sector receiving emission allowance rebates, as to 
        whether, and by how much, the per unit cost of 
        production has increased for that sector as a result of 
        compliance with section 722 (as determined in a manner 
        consistent with section 764(b)), taking into account 
        the provision of the emission allowance rebates to that 
        industrial sector and the benefit received by that 
        industrial sector from the provision of free allowances 
        to electricity providers pursuant to section 782(a);
          ``(2) recommendations on how to better achieve the 
        purposes of this subpart, including an assessment of 
        the feasibility and usefulness of an international 
        reserve allowance program for the eligible industrial 
        sector under section 768;
          ``(3) to the extent the President determines that an 
        international reserve allowance program would not be 
        useful for the eligible industrial sector because its 
        exposure to carbon leakage is the result of competition 
        in export markets with goods produced in countries not 
        implementing similar greenhouse gas emission reduction 
        policies, an identification of, and to the extent 
        appropriate a description of how the President will 
        implement, alternative actions or programs consistent 
        with the purposes of this subpart (and, in such case, 
        the President may determine not to apply an 
        international reserve allowance program to the eligible 
        industrial sector under subsection (b)); and
          ``(4) an assessment of the amount and duration of 
        assistance, including distribution of free allowances, 
        being provided to industrial sectors in other developed 
        countries to mitigate costs of compliance with domestic 
        greenhouse gas reduction programs in such countries.
  ``(b) Presidential Determination.--
          ``(1) In general.--If, by January 1, 2018, a 
        multilateral agreement consistent with the negotiating 
        objectives set forth in section 766 has not entered 
        into force with respect to the United States, the 
        President shall establish an international reserve 
        allowance program for each eligible industrial sector 
        to the extent provided under section 768 unless--
                  ``(A) the President determines and certifies 
                to the Congress with respect to such eligible 
                industrial sector that such program would not 
                be in the national economic interest or 
                environmental interest of the United States; 
                and
                  ``(B) not later than 90 days after the 
                President transmits the certification described 
                in subparagraph (A), a joint resolution is 
                enacted into law that approves the 
                determination of the President described in 
                subparagraph (A).
          ``(2) Contents of joint resolution.--For purposes of 
        this subsection, the term `joint resolution' means only 
        a joint resolution of the two Houses of Congress, the 
        matter after the resolving clause of which is as 
        follows: `That the Congress approves the determination 
        of the President under section 768(b)(1)(A) of the 
        Clean Air Act transmitted to the Congress on ______.', 
        the blank space being filled with the appropriate date.
          ``(3) Congressional procedures.--Subsections (c), 
        (d), (e), and (f) of section 152 of the Trade Act of 
        1974 (19 U.S.C. 2192 (c), (d), (e), and (f)) shall 
        apply to a joint resolution under this subsection to 
        the same extent as such subsections apply to a joint 
        resolution under section 152 of such Act.
          ``(4) Rule of construction.--For purposes of this 
        section and section 768, if the President transmits a 
        multilateral agreement to Congress (regardless of 
        whether it is transmitted as a treaty for ratification 
        by the Senate or another international agreement for 
        implementation by law enacted by the Congress) 
        indicating that the agreement is consistent with the 
        negotiating objectives set forth in section 766, such 
        agreement will be considered to be consistent with such 
        negotiating objectives as of the date on which the 
        Senate ratifies the treaty, or legislation is enacted 
        implementing such other agreement, unless the Senate 
        (in the case of ratification) or the implementing 
        legislation expressly provides that the multilateral 
        agreement shall not be treated as consistent with such 
        negotiating objectives for purposes of this section and 
        section 768.
  ``(c) Determinations With Respect to Eligible Industrial 
Sectors.--If the President establishes an international reserve 
allowance program pursuant to subsection (b), then not later 
than June 30, 2018, and every four years thereafter, the 
President, in consultation with the Administrator and other 
appropriate agencies, shall determine, for each eligible 
industrial sector, whether or not more than 85 percent of 
United States imports of covered goods with respect to that 
sector are produced or manufactured in countries that have met 
at least one of the following criteria:
          ``(1) The country is a party to an international 
        agreement to which the United States is a party that 
        includes a nationally enforceable and economy-wide 
        greenhouse gas emissions reduction commitment for that 
        country that is at least as stringent as that of the 
        United States.
          ``(2) The country is a party to a multilateral or 
        bilateral emission reduction agreement for that sector 
        to the which the United States is a party.
          ``(3) The country has an annual energy or greenhouse 
        gas intensity, as described in section 
        763(b)(2)(A)(ii), for the sector that is equal to or 
        less than the energy or greenhouse gas intensity for 
        such industrial sector in the United States in the most 
        recent calendar year for which data are available.
  ``(d) Effect of Presidential Determination.--
          ``(1) Required actions.--If the President makes a 
        determination under subsection (c) with respect to an 
        eligible industrial sector that 85 percent or less of 
        United States imports of covered goods with respect to 
        the sector are produced or manufactured in countries 
        that have met one or more of the criteria in subsection 
        (c), then the President shall, not later than June 30, 
        2018, and every four years thereafter--
                  ``(A) assess the extent to which the emission 
                allowance rebates provided pursuant to subpart 
                1 and the benefit received by that industrial 
                sector from the provision of free allowances to 
                electricity providers pursuant to section 
                782(a) have mitigated or addressed, or could 
                mitigate or address, carbon leakage in that 
                sector;
                  ``(B) assess the extent to which an 
                international reserve allowance program has 
                mitigated or addressed, or could mitigate or 
                address, carbon leakage in that sector; and
                  ``(C) with respect to that sector--
                          ``(i) modify the percentage by which 
                        direct and indirect carbon factors will 
                        be multiplied under section 
                        764(a)(1)(B); and
                          ``(ii) apply or continue to apply an 
                        international reserve allowance program 
                        under section 768 with respect to 
                        imports of covered goods with respect 
                        to that sector.
          ``(2) Prohibited actions.--If the President makes a 
        determination under subsection (c) with respect to an 
        eligible industrial sector that more than 85 percent of 
        United States imports of covered goods with respect to 
        the sector are produced or manufactured in countries 
        that have met one or more of the criteria in subsection 
        (c), then the President may not apply or continue to 
        apply an international reserve allowance program under 
        section 768 with respect to imports of covered goods 
        with respect to that sector.
  ``(e) Report to Congress.--Not later than June 30, 2018, and 
every four years thereafter, the President shall transmit to 
the Congress a report providing notice of any determination 
made under subsection (c), explaining the reasons for such 
determination, and identifying the actions taken by the 
President under subsection (d).

``SEC. 768. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.

  ``(a) Establishment.--
          ``(1) In general.--The Administrator, with the 
        concurrence of Commissioner responsible for U.S. 
        Customs and Border Protection, shall issue 
        regulations--
                  ``(A) establishing an international reserve 
                allowance program for the sale, exchange, 
                purchase, transfer, and banking of 
                international reserve allowances for covered 
                goods with respect to the eligible industrial 
                sector;
                  ``(B) ensuring that the price for purchasing 
                the international reserve allowances from the 
                United States on a particular day is equivalent 
                to the auction clearing price for emission 
                allowances under section 722 for the most 
                recent emission allowance auction;
                  ``(C) establishing a general methodology for 
                calculating the quantity of international 
                reserve allowances that a United States 
                importer of any covered good must submit;
                  ``(D) requiring the submission of appropriate 
                amounts of such allowances for covered goods 
                with respect to the eligible industrial sector 
                that enter the customs territory of the United 
                States;
                  ``(E) exempting from the requirements of 
                subparagraph (D) such products that are the 
                origin of--
                          ``(i) any country determined to meet 
                        any of the standards provided in 
                        section 767(c);
                          ``(ii) any foreign country that the 
                        United Nations has identified as among 
                        the least developed of developing 
                        countries; or
                          ``(iii) any foreign country that the 
                        President has determined to be 
                        responsible for less than 0.5 percent 
                        of total global greenhouse gas 
                        emissions and less than 5 percent of 
                        United States imports of covered goods 
                        with respect to the eligible industrial 
                        sector;
                  ``(F) specifying the procedures that U.S. 
                Customs and Border Protection will apply for 
                the declaration and entry of covered goods with 
                respect to the eligible industrial sector into 
                the customs territory of the United States; and
                  ``(G) establishing procedures that prevent 
                circumvention of the international reserve 
                allowance requirement for covered goods with 
                respect to the eligible industrial sector that 
                are manufactured or processed in more than one 
                foreign country.
          ``(2) Purpose of program.--The Administrator shall 
        establish the program under paragraph (1) consistent 
        with international agreements to which the United 
        States is a party, in a manner that minimizes the 
        likelihood of carbon leakage as a result of differences 
        between--
                  ``(A) the direct and indirect costs of 
                complying with section 722; and
                  ``(B) the direct and indirect costs, if any, 
                of complying in other countries with greenhouse 
                gas regulatory programs, requirements, export 
                tariffs, or other measures adopted or imposed 
                to reduce greenhouse gas emissions.
  ``(b) Emission Allowance Rebates.--In establishing a general 
methodology for purposes of subsection (a)(1)(C), the 
Administrator shall include an adjustment to the quantity of 
international reserve allowances based on the value of emission 
allowance rebates distributed under subpart 1 and the benefit 
received by the eligible industrial sector concerned from the 
provision of free allowances to electricity providers pursuant 
to section 782(a) and may, if appropriate, determine that the 
quantity of international reserve allowances should be reduced 
as low as to zero.
  ``(c) Effective Date.--The international reserve allowance 
program may not apply to imports of covered goods entering the 
customs territory of the United States before January 1, 2020.
  ``(d) Covered Entities.--International reserve allowances may 
not be used by covered entities to comply with section 722.

``SEC. 769. IRON AND STEEL SECTOR.

  ``For purposes of this subpart, the Administrator shall 
consider to be in the same eligible industrial sector--
          ``(1) entities using integrated iron and steelmaking 
        technologies (including coke ovens, blast furnaces, and 
        other iron-making technologies); and
          ``(2) entities using electric arc furnace 
        technologies.''.

  Page 955, lines 15 through 19, amend section 422 to read as 
follows:

SEC. 422. INCREASED FUNDING FOR ENERGY WORKER TRAINING PROGRAM.

  (a) Authorization.--Section 171(e)(8) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2916(e)(8)) is amended by 
striking ``$125,000,000'' and inserting ``$150,000,000''.
  (b) Establishment of Fund.--There is hereby established in 
the Treasury a separate account that shall be known as the 
Energy Efficiency and Renewable Energy Worker Training Fund.
  (c) Availability of Amounts.--Subject to subtitle F of title 
IV, all amounts deposited into the Energy Efficiency and 
Renewable Energy Worker Training Fund shall be available to the 
Secretary to carry out section 171(e)(8) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2916(e)(8)) subject to 
further appropriation.

  Page 955, after line 19, insert the following new sections:

SEC. 423. DEVELOPMENT OF INFORMATION AND RESOURCES CLEARINGHOUSE FOR 
                    VOCATIONAL EDUCATION AND JOB TRAINING IN RENEWABLE 
                    ENERGY SECTORS.

  (a) Development of Clearinghouse.--Not later than 18 months 
after the date of enactment of this Act, the Secretary of 
Labor, in collaboration with the Secretary of Energy and the 
Secretary of Education, shall develop an internet based 
information and resources clearinghouse to aid career and 
technical education and job training programs for the renewable 
energy sectors. In establishing the clearinghouse, the 
Secretary shall--
          (1) collect and provide information that addresses 
        the consequences of rapid changes in technology and 
        regional disparities for renewable energy training 
        programs and provides best practices for training and 
        education in light of such changes and disparities;
          (2) place an emphasis on facilitating collaboration 
        between the renewable energy industry and job training 
        programs and on identifying industry and technological 
        trends and best practices, to better help job training 
        programs maintain quality and relevance; and
          (3) place an emphasis on assisting programs that 
        cater to high-demand middle-skill, trades, 
        manufacturing, contracting, and consulting careers.
  (b) Solicitation and Consultation.--In developing the 
clearinghouse pursuant to subsection (a), the Secretary shall 
solicit information and expertise from businesses and 
organizations in the renewable energy sector and from 
institutions of higher education, career and technical schools, 
and community colleges that provide training in the renewable 
energy sectors. The Secretary shall solicit a comprehensive 
peer review of the clearinghouse by such entities not less than 
once every 2 years. Nothing in this subsection should be 
interpreted to require the divulgence of proprietary or 
competitive information.
  (c) Contents of Clearinghouse.--
          (1) Separate section for each renewable energy 
        sector.--The clearinghouse shall contain separate 
        sections developed for each of the following renewable 
        energy sectors:
                  (A) Solar energy systems.
                  (B) Wind energy systems.
                  (C) Energy transmission systems.
                  (D) Geothermal systems of energy and heating.
                  (E) Energy efficiency technical training.
          (2) Additional requirements.--In addition to the 
        information required in subsection (a), each section of 
        the clearinghouse shall include information on basic 
        environmental science and processes needed to 
        understand renewable energy systems, Federal government 
        and industry resources, and points of contact to aid 
        institutions in the development of placement programs 
        for apprenticeships and post graduation opportunities, 
        and information and tips about a green workplace, 
        energy efficiency, and relevant environmental topics 
        and information on available industry recognized 
        certifications in each area.
  (d) Dissemination.--The clearinghouse shall be made available 
via the Internet to the general public. Notice of the completed 
clearinghouse and any major revisions thereto shall also be 
provided--
          (1) to each Member of Congress; and
          (2) on the websites of the Departments of Education, 
        Energy, and Labor.
  (e) Revision.--The Secretary of Labor shall revise and update 
the clearinghouse on a regular basis to ensure its relevance.

SEC. 424. MONITORING PROGRAM EFFECTIVENESS.

  The Secretary of Labor shall monitor the potential growth of 
affected and displaced workers to ensure that the necessary 
funding continues to support the number of workers affected.

SEC. 424A. GREEN CONSTRUCTION CAREERS DEMONSTRATION PROJECT.

  (a) Establishment and Authority.--The Secretary of Labor, in 
consultation with the Secretary of Energy, shall, not later 
than 180 days after the enactment of this Act, establish a 
Green Construction Careers demonstration project by rules, 
regulations, and guidance in accordance with the provisions of 
this section. The purpose of the demonstration project shall be 
to promote middle class careers and quality employment 
practices in the green construction sector among targeted 
workers and to advance efficiency and performance on 
construction projects related to this Act. In order to advance 
these purposes, the Secretary shall identify projects, 
including residential retrofitting projects, funded directly by 
or assisted in whole or in part by or through the Federal 
Government pursuant to this Act or by any other entity 
established in accordance with this Act, to which all of the 
following shall apply.
  (b) Requirements.--The Secretaries may establish such terms 
and conditions for the demonstration projects as the 
Secretaries determine are necessary to meet the purposes of 
subsection (a), including establishing minimum proportions of 
hours to be worked by targeted workers on such projects. The 
Secretaries may require the contractors and subcontractors 
performing construction services on the project to comply with 
the terms and conditions as a condition of receiving funding or 
assistance from the Federal Government under this Act.
  (c) Evaluation.--The Secretaries shall evaluate the 
demonstration projects against the purposes of this section at 
the end of 3 years from initiation of the demonstration 
project. If the Secretaries determine that the demonstration 
projects have been successful, the Secretaries may identify 
further projects to which of the provisions of this section 
shall apply.
  (d) GAO Report.--The Comptroller General shall prepare and 
submit a report to the Committee on Health, Education, Labor 
and Pensions and the Committee on Energy and Natural Resources 
of the Senate and the Committee on Education and Labor and the 
Committee on Energy and Commerce of the House of 
Representatives not later than 5 years after the date of 
enactment of this Act, which shall advise the committees of the 
results of the demonstration projects and make appropriate 
recommendations.
  (e) Definition and Designation of Targeted Workers.--As used 
in this section, the term ``targeted worker'' means an 
individual who resides in the same labor market area (as 
defined in section 101(18) of the Workforce Investment Act of 
1998 (29 U.S.C. 2801(18))) as the project and who--
          (1) is a member of a targeted group, within the 
        meaning of section 51 of the Internal Revenue Code of 
        1986, other than an individual described in subsection 
        (d)(1)(C) of such section;
          (2)(A) resides in a census tract in which not less 
        than 20 percent of the households have incomes below 
        the Federal poverty guidelines; or
          (B) is a member of a family that received a total 
        family income that, during the 2-year period prior to 
        employment on the project or admission to the pre-
        apprenticeship program, did not exceed 200 percent of 
        the Federal poverty guidelines (exclusive of 
        unemployment compensation, child support payments, 
        payments described in section 101(25)(A) of the 
        Workforce Investment Act (29 U.S.C. 2801(25)(A)), and 
        old-age and survivors insurance benefits received under 
        section 202 of the Social Security Act (42 U.S.C. 402); 
        or
          (3) is a displaced homemaker, as such term is defined 
        in section 3(10) of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2302(10)).
  (f) Qualified Pre-Apprenticeship Program.--A qualified pre-
apprenticeship program is a pre-apprenticeship program that has 
demonstrated an ability to recruit, train, and prepare for 
admission to apprenticeship programs individuals who are 
targeted workers.
  (g) Qualified Apprenticeship and Other Training Programs.--
          (1) Participation by each contractor required.--Each 
        contractor and subcontractor that seeks to provide 
        construction services on projects identified by the 
        Secretaries pursuant to subsection (a) shall submit 
        adequate assurances with its bid or proposal that it 
        participates in a qualified apprenticeship or other 
        training program, with a written arrangement with a 
        qualified pre-apprenticeship program, for each craft or 
        trade classification of worker that it intends to 
        employ to perform work on the project.
          (2) Definition of qualified apprentice ship or other 
        training program.--
                  (A) In general.--For purposes of this 
                section, the term ``qualified apprenticeship or 
                other training program'' means an 
                apprenticeship or other training program that 
                qualifies as an employee welfare benefit plan, 
                as defined in section 3(1) of the Employee 
                Retirement Income Security Act of 1974 (29 
                U.S.C. 1002(1)).
                  (B) Certification of other programs in 
                certain localities.--In the event that the 
                Secretary of Labor certifies that a qualified 
                apprenticeship or other training program (as 
                defined in subparagraph (A)) for a craft or 
                trade classification of workers that a 
                prospective contractor or subcontractor intends 
                to employ, is not operated in the locality 
                where the project will be performed, an 
                apprenticeship or other training program that 
                is not an employee welfare benefit plan (as 
                defined in such section) may be certified by 
                the Secretary as a qualified apprenticeship or 
                other training program provided it is 
                registered with the Office of Apprenticeship of 
                the Department of Labor, or a State 
                apprenticeship agency recognized by the Office 
                of Apprenticeship for Federal purposes.
  (h) Facilitating Compliance.--The Secretary may require 
Federal contracting agencies, recipients of Federal assistance, 
and any other entity established in accordance with this Act to 
require contractors to enter into an agreement in a manner 
comparable with the standards set forth in sections 3 and 4 of 
Executive Order 13502 in order to achieve the purposes of this 
section, including any requirements established by subsection 
(b).
  (i) Limitation.--The requirements of this section shall not 
apply to any project funded under this Act in American Samoa, 
Guam, the Commonwealth of the Northern Mariana Islands, the 
Commonwealth of Puerto Rico, or the United States Virgin 
Islands, unless participation is requested by the governor of 
such territories within 1 year of the promulgation of rules 
under this Act.

  Page 1007, line 23, through page 1008, line 14, strike 
paragraph (3).

  Page 1019, line 23, through page 1020, line 6, amend 
subparagraph (B) to read as follows:

                  ``(B) Without regard to section 553 of title 
                5 of such Code, the Administrator may by rule 
                promulgate as final, to be effective until no 
                later than two years after the date of the 
                enactment of the American Clean Energy and 
                Security Act of 2009, any procedures that are 
                substantially the same as the procedures 
                governing the Supplemental Nutrition Assistance 
                Program in section 273.2, 273.12, or 273.15 of 
                title 7, Code of Federal Regulations.

  Page 1025, line 1, through page 1026, line 11, amend section 
432 to read as follows:

SEC. 432. MODIFICATION OF EARNED INCOME CREDIT AMOUNT FOR INDIVIDUALS 
                    WITH NO QUALIFYING CHILDREN.

  (a) In General.--Subsection (b) of section 32 of the Internal 
Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
          ``(4) Special rule for individuals with no qualifying 
        children who are affected by the american clean energy 
        and security act of 2009.--
                  ``(A) In general.--In the case of any 
                household which the Secretary determines 
                experienced a reduction in purchasing power as 
                a result of the provisions of, or amendments 
                made by, the American Clean Energy and Security 
                Act of 2009 (determined without regard to this 
                paragraph and section 2201 of the Social 
                Security Act)--
                          ``(i) Increase in credit percentage 
                        and phaseout percentage.--The table 
                        contained in paragraph (1)(A) shall be 
                        applied by substituting `15.3' for 
                        `7.65'.
                          ``(ii) Increase in beginning phaseout 
                        amount.--The table contained in 
                        paragraph (2)(A) shall be applied by 
                        substituting `$11,640' for `$5,280'.
                  ``(B) Inflation adjustment.--
                          ``(i) In general.--In the case of any 
                        taxable year beginning after 2012, the 
                        $11,640 amount in subparagraph (A)(ii) 
                        shall be increased by an amount equal 
                        to--
                                  ``(I) such dollar amount, 
                                multiplied by
                                  ``(II) the cost of living 
                                adjustment determined under 
                                section 1(f)(3) for the 
                                calendar year in which the 
                                taxable year begins determined 
                                by substituting `calendar year 
                                2011' for `calendar year 1992' 
                                in subparagraph (B) thereof.
                          ``(ii) Rounding.--Subparagraph (A) of 
                        subsection (j)(2) shall apply after 
                        taking into account any increase under 
                        clause (i) in the same manner as if 
                        such increase were under paragraph (1) 
                        of subsection (j).
                          ``(iii) Coordination with other 
                        inflation adjustments.--Paragraph (1) 
                        of subsection (j) shall not apply to 
                        the dollar amount substituted under 
                        subparagraph (A)(ii).''.
  (b) Effective Date.--The amendment made by this section shall 
apply to taxable years beginning after December 31, 2011.

  Page 1033, lines 7 and 8, strike ``from the International 
Clean Technology Account'' and insert ``under this subtitle''.

  Page 1033, lines 11 through 13, strike ``distributions from 
the International Clean Technology Account'' and insert ``the 
program established under this subtitle''.

  Page 1033, lines 14 through 18, strike paragraph (7) (and 
redesignate the subsequent paragraphs accordingly).

  Page 1034, lines 11 and 12, strike ``from the International 
Clean Technology Account'' and insert ``allocated under section 
782(o) of the Clean Air Act (as added by section 321 of this 
Act) for distribution pursuant to this subtitle''.

  Page 1034, lines 14 and 15, strike ``International Clean 
Technology Account'' and insert ``program established under 
this subtitle''.

  Page 1035, line 7, strike ``from the International Clean 
Technology Account'' and insert ``pursuant to this subtitle''.

  Page 1039, lines 5 through 7, strike ``, from the 
International Clean Technology Account for qualifying 
activities that take place in eligible countries'' and insert 
``allocated for such purpose under section 782(o) of the Clean 
Air Act (as added by section 321 of this Act) for qualifying 
activities that take place in eligible countries, in accordance 
with the requirements of this subtitle''.

  Page 1039, line 8, through page 1040, line 13, amend 
subsection (b) to read as follows:

  (b) Definition.--For the purposes of this section the term 
``clean technology'' means any technology or service related to 
the qualifying activities identified in section 445.

  Page 1040, lines 18 and 19, strike ``from the International 
Clean Technology Account'' and insert ``under this subtitle''.

  Page 1046, lines 11 through 14, amend subsection (f) to read 
as follows:

  (f) Annual Reports.--Not later than March 1, 2012, and 
annually thereafter, the President shall submit to the 
appropriate congressional committees a report on the assistance 
provided under this subtitle during the prior fiscal year. Such 
report shall include--
          (1) a description of the amount and value of 
        allowances distributed during the prior fiscal year;
          (2) a description of each activity that received 
        assistance during the prior fiscal year, and a 
        description of the anticipated and actual outcomes;
          (3) an assessment of any adverse effects to human 
        health, safety, or welfare, the environment, or natural 
        resources as a result of activities supported under 
        this subtitle;
          (4) an assessment of the success of the assistance 
        provided under this subtitle to improving the technical 
        and institutional capacity to implement substantial 
        emissions reductions;
          (5) an estimate of the greenhouse gas emissions 
        reductions, sequestration, or avoidance achieved by 
        assistance provided under this subtitle during the 
        prior fiscal year; and
          (6) an assessment whether any funds expended for the 
        benefit of any qualifying activity undermined the 
        protection of intellectual property rights for clean 
        technology, as formulated in the Agreement on Trade-
        Related Aspects of Intellectual Property Rights, 
        referred to in section 101(d)(15) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(d)(15)) and applicable 
        intellectual property provisions of bilateral trade 
        agreements.

  Page 1046, after line 14, insert the following new 
subsection:

  (g) Not Eligible for Offset Credit.--Activities that receive 
support under this subtitle shall not be issued offset credits 
for the greenhouse gas emissions reductions or avoidance, or 
greenhouse gas sequestration, produced by such activities.

  Page 1113, after line 11, insert the following new paragraph:

          (5) Research on hurricanes.--The authorized uses of 
        allowances under this section shall include 
        establishment of projects or programs to conduct 
        research and monitoring on the effect of ongoing 
        climate change on the frequency and intensity of 
        hurricanes.

  Page 1130, line 22, strike ``There'' and insert ``Subject to 
subtitle F of title IV, there''.

  Page 1131, line 1, strike ``All'' and insert ``Subject to 
subtitle F of title IV, all''.

  Page 1161, line 24, strike ``There'' and insert ``Subject to 
subtitle F of title IV, there''.

  Page 1162, line 4, strike ``There'' and insert ``Subject to 
subtitle F of title IV, there''.

  Page 1162, lines 10 through 12, strike ``Such 
appropriations'' and all that follows through ``Clean Air 
Act.''.

  Page 1165, line 2, insert ``and in accordance with the Indian 
Self-Determination and Educational Assistance Act (25 U.S.C. 
450(f)'' after ``Wildlife Service''.

  Page 1166, lines 3 through 5, strike ``Such appropriations'' 
and all that follows through ``782(m)''.

  Page 1169, line 2, before the period, insert ``and for 
natural resource adaptation activities on State and private 
forest lands carried out under the Cooperative Forestry 
Assistance Act of 1978''.

  Page 1201, after line 6, add the following new subtitle:

            Subtitle F--Deficit Neutral Budgetary Treatment

SEC. 496. DEFICIT NEUTRALITY.

  (a) Funds Established.--Funds established under sections 422, 
467, and 480 of this Act are to be treated as separate accounts 
in the Treasury and shall be known as ``the Funds''.
  (b) Availability.--Funds appropriated or made available 
pursuant to sections 422(b), 467(b), and 480(b)(2) are only 
available for the purposes set forth under this Act. Receipts 
in the Funds and appropriations therefrom shall not be 
available and are precluded from obligation for any other 
purpose.
  (c) Estimation of Budgetary Impact.--For the purposes of 
estimating the revenue and spending effects of this Act;
          (1) the revenue assumed to be deposited into the 
        Funds established under sections 422, 467, and 480, 
        shall be attributed to this Act; and
          (2) the authorization or availability of 
        appropriations from the Funds shall be treated as new 
        direct spending and attributed to this Act.
  (d) Budgetary Treatment.--For the purposes of section 257 of 
the Balanced Budget and Emergency Deficit Control Act of 1985, 
the Funds, and amounts subsequently appropriated or made 
available for the purposes for which such Funds were 
established, shall be deemed to be included on the list of 
appropriations referenced under section 250(c)(17) of that Act. 
Such appropriations from each Fund shall not be in excess of 
the amounts deposited into the respective Fund in the previous 
year.

  At the end of the bill, add the following new title:

           TITLE V--AGRICULTURAL AND FORESTRY RELATED OFFSETS

   Subtitle A--Offset Credit Program From Domestic Agricultural and 
                            Forestry Sources

SEC. 501. DEFINITIONS.

  (a) In General.--In this title:
          (1) Additional.--The term ``additional'', when used 
        with respect to reductions or avoidance of greenhouse 
        gas emissions, or to sequestration of greenhouse gases, 
        means reductions, avoidance, or sequestration that 
        result in a lower level of net greenhouse gas emissions 
        or atmospheric concentrations than would occur in the 
        absence of an offset project.
          (2) Additionality.--The term ``additionality'' means 
        the extent to which reductions or avoidance of 
        greenhouse gas emissions, or sequestration of 
        greenhouse gases, are additional.
          (3) Administrator.--The term ``Administrator'' means 
        the Administrator of the Environmental Protection 
        Agency.
          (4) Advisory committee.--The term ``Advisory 
        Committee'' means the USDA Greenhouse Gas Emission 
        Reduction and Sequestration Advisory Committee 
        established under section 1245(f) of the Food Security 
        Act of 1985 (16 U.S.C. 3845).
          (5) Greenhouse gas.--The term ``greenhouse gas'' 
        means any of the following:
                  (A) Carbon dioxide.
                  (B) Methane.
                  (C) Nitrous oxide.
                  (D) Sulfur hexafluoride.
                  (E) Hydrofluorocarbons from a chemical 
                manufacturing process at an industrial 
                stationary source.
                  (F) Any perfluorocarbon.
                  (G) Nitrogen trifluoride.
                  (H) Any other anthropogenic gas designated as 
                a greenhouse gas by the Administrator.
          (6) Leakage.--The term ``leakage'' means a 
        significant and quantifiable increase in greenhouse gas 
        emissions, or a significant and quantifiable decrease 
        in sequestration, which is caused by an offset practice 
        and occurs outside the boundaries of the offset 
        practice.
          (7) Offset credit.--The term ``offset credit'' means 
        a tradeable compliance instrument that--
                  (A) represents the reduction, avoidance, or 
                sequestration of 1 ton of carbon dioxide 
                equivalent; and
                  (B) is issued pursuant to this title.
          (8) Offset practice.--The term ``offset practice'' 
        means an activity that reduces, avoids, or sequesters 
        greenhouse gas emissions, and for which offset credits 
        may be issued pursuant to this title.
          (9) Offset producer.--The term ``offset producer'' 
        means an owner, operator, landlord, tenant, or 
        sharecropper who has or shares responsibility for 
        ensuring that an offset practice is established and 
        maintained during the crediting period for purposes of 
        an offset credit.
          (10) Offset project.--The term ``offset project'' 
        means a practice or set of practices that reduce or 
        avoid greenhouse gas emissions, or sequester greenhouse 
        gases as implemented by an offset producer.
          (11) Offset project developer.--The term ``offset 
        project developer'' means the offset producer or 
        designee of the offset producer.
          (12) Practice type.--The term ``practice type'' means 
        a discrete category of offset practices for which the 
        Secretary develops a standardized methodology to 
        accurately estimate the amount of greenhouse gas 
        emissions reduced or avoided or greenhouse gases 
        sequestered.
          (13) Reversal.--The term ``reversal'' means an 
        intentional or unintentional loss of sequestered 
        greenhouse gases to the atmosphere.
          (14) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
          (15) Sequestration and sequestered.--The terms 
        ``sequestered'' and ``sequestration'' mean the 
        separation, isolation, or removal of greenhouse gases 
        from the atmosphere, as determined by the Secretary. 
        The terms include biological sequestration, but do not 
        include ocean fertilization techniques.
          (16) Term offset credit.--The term ``term offset 
        credit'' means a compliance instrument authorized under 
        section 504(d).
  (b) Agricultural and Forestry Exception to Definition of 
Capped Sector.--For purposes of this title and title III of 
this Act, and amendments made by such titles, the term ``capped 
sector'' means a sector of economic activity that directly 
emits capped emissions, including the industrial sector, the 
electricity generation sector, the transportation sector, and 
the residential and commercial sectors (to the extent they burn 
oil or natural gas), but not including the agricultural or 
forestry sectors.

SEC. 502. ESTABLISHMENT OF OFFSET CREDIT PROGRAM FROM DOMESTIC 
                    AGRICULTURAL AND FORESTRY SOURCES.

  (a) Establishment.--Not later than 1 year after the date of 
enactment of this title, the Secretary shall establish a 
program governing the generation of offset credits from 
domestic agricultural and forestry sources.
  (b) Requirements.--The program described in subsection (a) 
shall--
          (1) ensure that offset credits represent verifiable 
        and additional greenhouse gas emission reductions or 
        avoidance, or increases in sequestration; and
          (2) ensure that offset credits issued for 
        sequestration offset projects are only issued for 
        greenhouse gas reductions that result in a permanent 
        net reduction in atmospheric greenhouse gases.
  (c) Duties of Secretary.--In addition to the duties described 
in subsection (a) and section 1245 of the Food Security Act of 
1985 (16 U.S.C. 3845), the Secretary shall, with respect to 
practices relating to offset credits from agricultural and 
forestry sources--
          (1) establish by rule methodologies by practice types 
        for quantifying greenhouse gas benefits;
          (2) establish by rule methodologies for each practice 
        type for establishing activity baselines and 
        determining additionality;
          (3) establish by rule methodologies by practice types 
        for accounting for and mitigating potential leakage;
          (4) establish rules to account for and address 
        reversals;
          (5) establish rules to require third-party 
        verification;
          (6) provide technical assistance to offset project 
        developers using funds appropriated to the Conservation 
        Operations account;
          (7) establish rules for approval of offset project 
        plans;
          (8) establish rules for certification of 
        implementation of offset project plans;
          (9) establish by rule requirements for reporting and 
        record keeping; and
          (10) conduct audits.

SEC. 503. LIST OF ELIGIBLE DOMESTIC AGRICULTURAL AND FORESTRY OFFSET 
                    PRACTICE TYPES.

  (a) List Required.--
          (1) Preparation and publication.--Not later than 1 
        year after the date of enactment of this title, the 
        Secretary shall prepare and publish in the Federal 
        Register a list of domestic agricultural and forestry 
        practice types that are eligible to generate offset 
        credits under this title because the practices avoid or 
        reduce greenhouse gas emissions or sequester greenhouse 
        gases.
          (2) Recommendations.--In preparing the list under 
        paragraph (1), the Secretary shall take into 
        consideration the recommendations of the Advisory 
        Committee.
  (b) Initial List.--At a minimum, the list prepared under this 
section shall include those practices that avoid or reduce 
greenhouse gas emissions or sequester greenhouse gases, such 
as--
          (1) agricultural, grassland, and rangeland 
        sequestration and management practices, including--
                  (A) altered tillage practices;
                  (B) winter cover cropping, continuous 
                cropping, and other means to increase biomass 
                returned to soil in lieu of planting followed 
                by fallowing;
                  (C) reduction of nitrogen fertilizer use or 
                increase in nitrogen use efficiency;
                  (D) reduction in the frequency and duration 
                of flooding of rice paddies;
                  (E) reduction in carbon emissions from 
                organic soils;
                  (F) reduction in greenhouse gas emissions 
                from manure and effluent; and
                  (G) reduction in greenhouse gas emissions due 
                to changes in animal management practices, 
                including dietary modifications;
          (2) changes in carbon stocks attributed to land use 
        change and forestry activities, including--
                  (A) afforestation or reforestation of acreage 
                that is not forested;
                  (B) forest management resulting in an 
                increase in forest carbon stores including but 
                not limited to harvested wood products;
                  (C) management of peatland or wetland;
                  (D) conservation of grassland and forested 
                land;
                  (E) improved forest management, including 
                accounting for carbon stored in wood products;
                  (F) reduced deforestation or avoided forest 
                conversion;
                  (G) urban tree-planting and maintenance;
                  (H) agroforestry; and
                  (I) adaptation of plant traits or new 
                technologies that increase sequestration by 
                forests; and
          (3) manure management and disposal, including--
                  (A) waste aeration;
                  (B) biogas capture and combustion; and
                  (C) application to fields as a substitute for 
                commercial fertilizer.
  (c) Additions and Revisions to List.--
          (1) Periodic revision.--Not later than 2 years after 
        the date of enactment of this title, and every 2 years 
        thereafter, the Secretary, after public notice and 
        opportunity for comment, shall add to and revise the 
        types of offset practices to the list established under 
        subsection (a) if those types of practices meet the 
        standards for environmental integrity that are 
        consistent with the purposes of this title.
          (2) Consideration of petitions.--The Secretary 
        shall--
                  (A) consider petitions to add types of offset 
                practices to the list established under 
                subsection (a); and
                  (B) add those types of offset practices to 
                the list if the types of offset practices meet 
                standards for environmental integrity 
                consistent with the purposes of this title.
          (3) Time for consideration of petitions.--Not later 
        than 1 year after the receipt of a petition under 
        paragraph (2), the Secretary shall make a decision to 
        either grant or deny the petition and publish a written 
        explanation of the reasons for the Secretary's 
        decision. The Secretary may not deny a petition under 
        this subsection on the basis of inadequate Department 
        of Agriculture resources at the time of the review.

SEC. 504. REQUIREMENTS FOR DOMESTIC AGRICULTURAL AND FORESTRY 
                    PRACTICES.

  (a) Methodologies.--
          (1) In general; condition.--In promulgating 
        regulations under section 502, the Secretary shall 
        establish methodologies for domestic agricultural and 
        forestry practices listed under section 503, if the 
        Secretary determines that methodologies can be 
        established for such practices that meet each of the 
        requirements of this section. The Secretary shall only 
        issue offset credits under this title pursuant to 
        promulgated methodologies applicable to the offset 
        practice that avoided or reduced greenhouse gas 
        emissions or sequestered greenhouse gases.
          (2) Specified methodologies.--The Secretary shall 
        establish the following methodologies under this 
        section:
                  (A) Activity baselines.--A standardized 
                methodology for establishing activity baselines 
                for an offset practice of that type. The 
                Secretary shall set activity baselines to 
                reflect a conservative estimate of performance 
                or activities for the relevant type of practice 
                (excluding changes in performance or activities 
                due to the availability of offset credits) such 
                that the baseline provides an adequate margin 
                of safety to ensure the environmental integrity 
                of offset credits calculated in reference to 
                such baseline.
                  (B) Additionality.--A standardized 
                methodology for determining the additionality 
                of greenhouse gas emissions reduction or 
                avoidance, or greenhouse gas sequestration, 
                achieved by an offset practice of that type. 
                Such methodology shall ensure, at a minimum, 
                that any greenhouse gas emission reduction or 
                avoidance, or any greenhouse gas sequestration, 
                is considered additional only to the extent 
                that it results from activities that--
                          (i) are not required by existing 
                        government regulations, as determined 
                        by the Secretary;
                          (ii) were not commenced prior to 
                        January 1, 2009, except in the case 
                        of--
                                  (I) offset project activities 
                                that commenced after January 1, 
                                2001, and were registered as of 
                                the date of enactment of this 
                                title under an offset program 
                                with respect to which an 
                                affirmative determination has 
                                been made under section 740 of 
                                the Clean Air Act; or
                                  (II) activities that are 
                                readily reversible, with 
                                respect to which the Secretary 
                                may set an alternative earlier 
                                date under this subparagraph 
                                that is not earlier than 
                                January 1, 2001, where the 
                                Secretary determines that 
                                setting such an alternative 
                                date may produce an 
                                environmental benefit by 
                                removing an incentive to cease 
                                and then reinitiate activities 
                                that began prior to January 1, 
                                2009; and
                          (iii) exceed the applicable activity 
                        baseline established under paragraph 
                        (2).
                  (C) Quantification methods.--A standardized 
                methodology for determining the extent to which 
                greenhouse gas emission reductions or 
                avoidance, or greenhouse gas sequestration, 
                achieved by an offset practice of that type 
                exceeded a relevant activity baseline, 
                including methods for monitoring and accounting 
                for uncertainty.
                  (D) Leakage.--A standardized methodology for 
                accounting for and mitigating potential 
                leakage, if any, from an offset practice of 
                that type, taking uncertainty into account, 
                excluding international indirect land use 
                changes unless a positive determination is made 
                under section 211(o)(13)(C)(iii) of the Clean 
                Air Act.
  (b) Special Considerations.--
          (1) Existing offset practices.--In establishing the 
        methodologies under subsection (a), the Secretary shall 
        give due consideration to methodologies for offset 
        practices existing as of the date of the enactment of 
        this title.
          (2) Certain factors.--As part of the methodologies 
        established under subsection (a), the Secretary shall 
        establish a formula that takes into account the 
        components of the practice, the characteristics of the 
        land on which the practice is applied, the crop 
        produced, and such other factors as determined 
        appropriate by the Secretary.
  (c) Accounting for Reversals.--
          (1) In general.--Except as provided in subsection (d) 
        with respect to issuance of a term offset credit, for 
        each type of practice listed under section 503, the 
        Secretary shall establish requirements to account for 
        and address reversals, including--
                  (A) a requirement to report any reversal with 
                respect to an offset practice for which offset 
                credits have been issued under this title;
                  (B) provisions to require emission allowances 
                or offset credits to be held in amounts to 
                fully compensate for greenhouse gas emissions 
                attributable to reversals, and to assign 
                responsibility for holding such emission 
                allowances; and
                  (C) any other provisions that the Secretary 
                determines to be necessary to account for and 
                address reversals.
          (2) Mechanisms.--
                  (A) In general.--The Secretary shall 
                prescribe mechanisms to ensure that any 
                sequestration of greenhouse gases, with respect 
                to which an offset credit is issued under this 
                title, results in a permanent net increase in 
                sequestration of greenhouse gases, and that 
                full account is taken of any actual or 
                potential reversal of such sequestration, with 
                an adequate margin of safety.
                  (B) Specific mechanisms.--The Secretary shall 
                make available one or more of the following 
                mechanisms to meet the requirements of this 
                paragraph:
                          (i) An offsets reserve, pursuant to 
                        paragraph (3).
                          (ii) Insurance that provides for 
                        purchase and provision to the Secretary 
                        for retirement of a quantity of offset 
                        credits or emission allowances equal in 
                        number to the tons of carbon dioxide 
                        equivalents of greenhouse gas emissions 
                        released due to reversal.
                          (iii) Another mechanism if the 
                        Secretary determines it is necessary to 
                        satisfy the requirements of this title, 
                        taking into account whether the 
                        reversal was intentional or 
                        unintentional.
          (3) Offsets reserve.--
                  (A) In general.--An offsets reserve referred 
                to in paragraph (2)(B)(i) is a program under 
                which, before issuance of offset credits under 
                this title, the Secretary shall--
                          (i) subtract and reserve from the 
                        quantity to be issued a quantity of 
                        offset credits based on the risk of 
                        reversal;
                          (ii) hold those reserved offset 
                        credits in the offsets reserve; and
                          (iii) register the holding of the 
                        reserved offset credits in an offset 
                        registry.
                  (B) Practice reversal.--
                          (i) In general.--If a reversal has 
                        occurred with respect to an offset 
                        practice within an offset project, for 
                        which offset credits are reserved under 
                        this paragraph, the Secretary shall 
                        retire offset credits from the offsets 
                        reserve to fully account for the tons 
                        of carbon dioxide equivalent that are 
                        no longer sequestered.
                          (ii) Intentional reversals.--If the 
                        Secretary determines that a reversal 
                        was intentional, the offset practice 
                        developer for the relevant offset 
                        practice shall place into the offsets 
                        reserve a quantity of offset credits, 
                        or combination of offset credits and 
                        emission allowances, equal in number to 
                        the number of reserve offset credits 
                        that were retired pursuant to clause 
                        (i).
                          (iii) Unintentional reversals.--If 
                        the Secretary determines that a 
                        reversal was unintentional, the offset 
                        project developer for the relevant 
                        offset project shall place into the 
                        offsets reserve a quantity of offset 
                        credits, or combination of offset 
                        credits and emission allowances, equal 
                        in number to half the number of offset 
                        credits that were reserved for that 
                        offset project, or half the number of 
                        reserve offset credits that were 
                        canceled due to the reversal pursuant 
                        to clause (i), whichever is less, 
                        except that the Secretary may lower 
                        this amount based on undue hardship in 
                        the event of a catastrophic occurrence.
                  (C) Use of reserved offset credits.--Offset 
                credits placed into the offsets reserve under 
                this paragraph may not be used to comply with 
                section 722 of the Clean Air Act.
  (d) Term Offset Credits.--
          (1) Applicability.--With respect to a practice listed 
        under section 503 that sequesters greenhouse gases and 
        has a crediting period of no more than five years, the 
        Secretary may address reversals pursuant to this 
        subsection in lieu of permanently accounting for 
        reversals pursuant to subsection (c).
          (2) Accounting for reversals.--For such practices or 
        projects implementing such practices, the Secretary 
        shall require only reversals that occur during the 
        crediting period to be accounted for and addressed 
        pursuant to subsection (c).
          (3) Credits issued.--For practices or projects 
        regulated pursuant to paragraph (2), the Secretary 
        shall issue under section 507 a term offset credit, in 
        lieu of an offset credit, for each ton of carbon 
        dioxide equivalent that has been sequestered.
  (e) Crediting Periods.--
          (1) In general.--For each offset practice type within 
        an offset project, the Secretary shall specify a 
        crediting period, and establish provisions for 
        reenrollment for a subsequent crediting period, in 
        accordance with this subsection.
          (2) Duration.--The crediting period shall have a term 
        of up to--
                  (A) 5 years for agricultural sequestration 
                practices;
                  (B) 20 years for forestry sequestration 
                practices; and
                  (C) 10 years for other practice types that 
                reduce or avoid greenhouse gas emissions or 
                sequester greenhouse gases.
          (3) Eligibility.--An offset practice, within an 
        offset project, shall--
                  (A) be eligible to generate offset credits 
                under this title only during the crediting 
                period of the offset practice; and
                  (B) remain eligible to generate offset 
                credits, only during the crediting period, 
                subject to the methodologies and practice type 
                eligibility list that applied as of the date of 
                the project approval.
          (4) Reenrollment for subsequent crediting period.--
                  (A) Reenrollment authorized; time for 
                reenrollment.--An offset project developer may 
                reenroll for a subsequent crediting period, to 
                commence after termination of the current 
                crediting period, subject to the methodologies 
                and practice type eligibility list in effect at 
                the time of reenrollment. Reenrollment may not 
                occur more than 18 months before the end of the 
                crediting period then in effect.
                  (B) Limitation.--The Secretary may limit the 
                number of subsequent crediting periods 
                available for a particular practice type.
  (f) Environmental Integrity.--In establishing the 
requirements under this section, the Secretary shall apply 
conservative assumptions or methods to ensure the environmental 
integrity of the cap established under section 703 of the Clean 
Air Act is not compromised.

SEC. 505. PROJECT PLAN SUBMISSION AND APPROVAL.

  (a) Project Plan Required.--An offset project developer shall 
submit to the Secretary an offset project plan for approval.
  (b) Requirements.--As part of the regulations promulgated 
under this title, the Secretary shall include provisions for, 
and shall specify, the required components of an offset project 
plan, including--
          (1) designation of an offset project developer;
          (2) a list and schedule of the practices to be 
        implemented;
          (3) any other information that the Secretary 
        considers to be necessary--
                  (A) to determine whether the offset practice, 
                within the offset project, is eligible for 
                issuance of offset credits under regulations 
                promulgated under this title; and
                  (B) to achieve the purposes of this title.
  (c) Time for Consideration; Notification.--Not later than 90 
days after receiving a complete offset project plan under 
subsection (a), the Secretary shall--
          (1) approve the plan in writing and include an 
        estimate of the offset project credits that will be 
        earned if the plan is implemented, subject to 
        verification of all project-specific variables; or
          (2) if the plan is denied, provide the reasons for 
        denial in writing.
  (d) Appeal.--The Secretary shall establish procedures for 
appeal and review of determinations made under this section.
  (e) Resubmission.--After an offset project plan is approved, 
the offset project developer shall not be required to resubmit 
a project plan during the crediting period.

SEC. 506. VERIFICATION OF OFFSET PRACTICES.

  (a) In General.--As part of the regulations promulgated under 
this title, the Secretary shall establish requirements to 
verify--
          (1) that offset practices in an approved offset 
        project plan have been implemented; and
          (2) the quantity of greenhouse gas emission 
        reductions or avoidance, or sequestration of greenhouse 
        gases, resulting from an offset practice and project.
  (b) Verification Reports.--
          (1) In general.--The regulations described in 
        subsection (a) shall require an offset project 
        developer to submit a report, prepared by a third-party 
        verifier accredited under subsection (c).
          (2) Requirements.--The Secretary shall specify the 
        components of a verification report required under 
        paragraph (1), including--
                  (A) the name and contact information for the 
                offset project developer;
                  (B) a certification that the project plan has 
                been implemented;
                  (C) the quantity of greenhouse gases reduced, 
                avoided, or sequestered;
                  (D) a certification establishing that the 
                conflict of interest requirements in the 
                regulations promulgated under this title have 
                been complied with;
                  (E) any other information that the Secretary 
                requires to determine the quantity of 
                greenhouse gas emission reduction or avoidance, 
                or sequestration of greenhouse gases, resulting 
                from the offset practice and project; and
                  (F) any other information that the Secretary 
                considers to be necessary to achieve the 
                purposes of this title.
  (c) Verifier Accreditation.--
          (1) In general.--As part of the regulations 
        promulgated under this title, the Secretary shall 
        establish a process and requirements for periodic 
        accreditation of third-party verifiers for offset 
        credits under this program to ensure that those 
        verifiers are professionally qualified and have no 
        conflicts of interest.
          (2) Public accessibility.--Each verifier meeting the 
        requirements for accreditation in accordance with this 
        subsection shall be listed in a publicly accessible 
        database, which shall be maintained and updated by the 
        Secretary.

SEC. 507. CERTIFICATION OF OFFSET CREDITS.

  (a) Determination and Notification.--Not later than 90 days 
after receiving a complete verification report, the Secretary 
shall--
          (1) make a determination of the quantity of 
        greenhouse gas emissions that have been reduced or 
        avoided, or greenhouse gases that have been 
        sequestered, by the offset practice in an approved and 
        verified offset project plan; and
          (2) notify the offset project developer in writing of 
        the determination.
  (b) Issuance of Offset Credits.--The Secretary shall issue 1 
offset credit to an offset project developer for each ton of 
carbon dioxide equivalent that the Secretary determines has 
been reduced, avoided, or sequestered during the crediting 
period. Offset credits may be issued only for greenhouse gas 
emissions reduced, avoided, or sequestered after January 1, 
2009.
  (c) Appeal.--The Secretary shall establish procedures for 
appeal and review of determinations made under subsection (a).
  (d) Timing.--Offset credits meeting the criteria described in 
subsection (b) shall be issued by the Secretary not later than 
14 days after the date on which the Secretary makes a 
determination under subsection (a).
  (e) Registration.--The Secretary shall obtain from the 
Administrator a unique serial number to allow for the 
registration of each offset credit to be issued under this 
title.

SEC. 508. OWNERSHIP AND TRANSFER OF OFFSET CREDITS.

  (a) Ownership.--Initial ownership of an offset credit shall 
lie with the offset project developer, unless otherwise 
specified in a legally binding contract or agreement.
  (b) Transferability.--An offset credit issued under this 
title may be sold, traded, or transferred, unless the offset 
credit has expired or been retired.

SEC. 509. PROGRAM REVIEW AND REVISION.

  At least once every 5 years, the Secretary shall review and, 
based on new or updated information and taking into 
consideration the recommendations of the Advisory Board, update 
and revise--
          (1) the list of eligible practice types established 
        under section 503;
          (2) the methodologies established, including specific 
        activity baselines, under section 504(a);
          (3) the reversal requirements and mechanisms 
        established or prescribed under subsections (c) and (d) 
        of section 504;
          (4) measures to improve the accountability of the 
        offsets program; and
          (5) any other requirements established under this 
        title to ensure the environmental integrity and 
        effective operation of this title.

SEC. 510. ENVIRONMENTAL CONSIDERATIONS.

  If the Secretary lists forestry practices as eligible offset 
practice types under section 503, the Secretary, in 
consultation with appropriate Federal agencies, shall 
promulgate regulations for the selection and use of species in 
forestry and other relevant land management-related offset 
practices--
          (1) to ensure that native species are given primary 
        consideration in such practices;
          (2) to encourage the conservation of biological 
        diversity in such practices;
          (3) to prohibit the use of federally designated or 
        State-designated noxious weeds;
          (4) to prohibit the use of a species listed by a 
        regional or State invasive plant authority within the 
        applicable region or State; and
          (5) in accordance with widely accepted, 
        environmentally sustainable forestry practices.

SEC. 511. AUDITS.

  (a) Audits Required.--The Secretary shall conduct, on an 
annual basis, random audits of offset projects, offset credits, 
and the practices of third-party verifiers. At a minimum, the 
Secretary shall conduct audits each year for a representative 
sample of practice types and geographical areas.
  (b) Additional Authority.--Nothing in this section prevents 
the Secretary from conducting any audit the Secretary considers 
to be necessary.

 Subtitle B--USDA Greenhouse Gas Emission Reduction and Sequestration 
                           Advisory Committee

SEC. 531. ESTABLISHMENT OF USDA GREENHOUSE GAS EMISSION REDUCTION AND 
                    SEQUESTRATION ADVISORY COMMITTEE.

  Section 1245 of the Food Security Act of 1985 (16 U.S.C. 
3854), as added by section 2709 of the Food, Conservation, and 
Energy Act of 2008 (Public Law 110-246; 122 Stat. 1809), is 
amended by adding at the end the following new subsection:
  ``(f) USDA Greenhouse Gas Emission Reduction and 
Sequestration Advisory Committee.--
          ``(1) Establishment.--Not later than 30 days after 
        the date of the enactment of the American Clean Energy 
        and Security Act of 2009, the Secretary shall establish 
        an independent advisory committee, to be known as the 
        `USDA Greenhouse Gas Emission Reduction and 
        Sequestration Advisory Committee', to provide 
        scientific and technical advice on establishing, 
        implementing, and ensuring the overall environmental 
        integrity of an offset program for domestic 
        agricultural and forestry practices that reduce or 
        avoid greenhouse gas emissions, or sequester greenhouse 
        gases.
          ``(2) Membership.--The Advisory Committee shall be 
        comprised of nine members, including a chairperson and 
        vice-chairperson, appointed by the Secretary. Each 
        member shall be qualified by education, training, and 
        experience to evaluate scientific and technical 
        information for domestic agricultural and forestry 
        offset practices that reduce or avoid greenhouse gas 
        emissions or sequester greenhouse gases.
          ``(3) Terms.--Terms shall be 3 years in length, 
        except for the initial terms, which may be up to 5 
        years in length to allow staggered terms. Members may 
        be reappointed only once for an additional 3-year term, 
        and such term may follow directly after a first term.
          ``(4) Duties.--The Advisory Committee shall--
                  ``(A) provide options and recommendations, 
                not later than 180 days after the date of the 
                enactment of the American Clean Energy and 
                Security Act of 2009, to the Secretary 
                regarding the establishment of methodologies as 
                described in section 504 of such Act, taking 
                into account relevant scientific information, 
                including--
                          ``(i) the availability of 
                        representative data for use in 
                        developing an activity baseline for a 
                        land area, forest, soil, industry 
                        sector, and facility type;
                          ``(ii) the potential for accurate 
                        quanitification of greenhouse gas 
                        reduction, or sequestration for an 
                        offset practice type;
                          ``(iii) the potential level of 
                        scientific and measurement uncertainty 
                        associated with an offset practice 
                        type; and
                          ``(iv) the use of practice 
                        methodologies that account for common 
                        practice or other direct comparisons 
                        within a relevant land area, industry 
                        sector, forest, soil, or facility type;
                  ``(B) make available to the Secretary options 
                and recommendations for the program as a whole 
                and on offset methodologies for each practice 
                type that should be considered under 
                regulations promulgated pursuant to section 504 
                of the American Clean Energy and Security Act 
                of 2009, including methodologies to address the 
                issues of additionality, activity baselines, 
                measurement, leakage, including the application 
                of sector specific leakage factors, 
                uncertainty, permanence, and environmental 
                integrity;
                  ``(C) make available to the Secretary advice 
                and comment on areas where further knowledge is 
                required to appraise the adequacy of existing, 
                revised, or proposed methodologies and describe 
                the research efforts necessary to provide the 
                required information;
                  ``(D) make available to the Secretary advice 
                and comments on other ways to improve or 
                safeguard the environmental integrity of the 
                offset practice types listed under section 503 
                of the American Clean Energy and Security Act 
                of 2009; and
                  ``(E) provide options and recommendations 
                regarding new practice types.
          ``(5) Scientific review of offset program.--Not later 
        than January 1, 2017, and at 5-year intervals 
        thereafter, the Advisory Committee shall--
                  ``(A) submit to the Secretary and make 
                available to the public an analysis of relevant 
                scientific and technical information regarding 
                agricultural and forestry offset practices that 
                reduce or avoid greenhouse gas emissions or 
                sequester greenhouse gases;
                  ``(B) review approved and potential practice 
                types, methodologies, scientific studies, 
                offset project monitoring, offset project 
                verification reports, reporting of reversals, 
                audits related to the offset program, and other 
                relevant information needed to evaluate the 
                offset program;
                  ``(C) evaluate the net emission effects of 
                implemented offset projects; and
                  ``(D) recommend changes to offset 
                methodologies, procedures, practice types, or 
                the overall program to ensure that--
                          ``(i) the offset practices result in 
                        reduced or avoided greenhouse gas 
                        emissions or sequestration of 
                        greenhouse gases;
                          ``(ii) the offset credits issued by 
                        the Secretary do not compromise the 
                        integrity of the annual emissions 
                        reductions established under section 
                        703 of the Clean Air Act; and
                          ``(iii) the offset program avoids or 
                        minimizes adverse affects to human 
                        health and the environment.
          ``(6) Coordination.--To avoid duplication, the 
        Advisory Committee shall coordinate its activities with 
        those of any other Federal advisory committees working 
        in related areas, and shall to the maximum extent 
        possible use research data and services of the 
        research, education, extension agencies of the 
        Department of Agriculture.
          ``(7) Consultation.--On a periodic basis, the 
        Advisory Committee shall consult with, and be informed 
        by the views of, the Offsets Integrity Advisory Board 
        established under section 731 of the Clean Air Act.
          ``(8) Meeting.--The Advisory Committee shall meet on 
        at least a quarterly basis each year.
          ``(9) Administrative support and funding.--The 
        Secretary may provide such administrative and funding 
        support as necessary to enable the Advisory Committee 
        to carry out its duties under this section.
          ``(10) Report.--For each fiscal year, the Secretary 
        shall submit to Congress a report on--
                  ``(A) the status and progress on the offset 
                practices;
                  ``(B) the general status of cooperation and 
                research and development; and
                  ``(C) the plans for addressing future issues 
                and concerns.''.

                       Subtitle C--Miscellaneous

SEC. 551. INTERNATIONAL INDIRECT LAND USE CHANGES.

  Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is 
amended by adding at the end the following
          ``(13) International indirect land use changes.--
                  ``(A) Exclusion from regulatory requirements 
                regarding lifecycle greenhouse gas emissions.--
                Notwithstanding the definition of `lifecycle 
                greenhouse gas emissions' in paragraph (1)(H), 
                for purposes of determining whether the fuel 
                meets a definition in paragraph (1) or complies 
                with paragraph (2)(A)(i), the Administrator 
                shall exclude emissions from indirect land use 
                changes outside the renewable fuel's 
                feedstock's country of origin.
                  ``(B) National academies of science report.--
                (i) Not later than 6 months after the date of 
                enactment of this paragraph, the Administrator 
                and the Secretary of Agriculture shall jointly 
                arrange for the National Academies of Science 
                to review and report on specified issues 
                related to indirect greenhouse gas emissions 
                related to transportation fuels.
                  ``(ii) The report shall evaluate and report 
                on whether there are economic and environmental 
                models and methodologies that individually, or 
                as a system, can project with reliability, 
                predictability, and confidence--
                          ``(I) for purposes of determining 
                        whether the fuel meets a definition in 
                        paragraph (1) or complies with 
                        paragraph (2)(A)(i), indirect land use 
                        changes that are related to the 
                        production of renewable fuels and that 
                        may occur outside the country in which 
                        the feedstocks are grown, and the 
                        impacts of these changes on greenhouse 
                        gas emissions; and
                          ``(II) indirect effects, both 
                        domestic and international, related to 
                        the production and importation of non-
                        renewable transportation fuels that 
                        have significant greenhouse gas 
                        emissions, and the impact of these 
                        effects on greenhouse gas emissions.
                  ``(iii) The report shall include a review and 
                assessment of all pertinent scientific studies, 
                methodologies and data, shall evaluate 
                potential methodologies for calculating such 
                emissions (including an evaluation of methods 
                for annualizing emissions associated with 
                forest degradation or land conversion), and 
                shall make appropriate recommendations. The 
                recommendations shall address indirect effects, 
                both domestic and international, related to the 
                production and importation of non-renewable 
                transportation fuels that have significant 
                greenhouse gas emissions. The report shall use 
                appropriate validation procedures, including 
                sensitivity analyses, of how results change as 
                assumptions change. The evaluation shall 
                include for a model, a methodology, or a system 
                of models--
                          ``(I) an assessment of how reliably 
                        the models, methodologies, or systems 
                        track actual outcomes over historical 
                        periods using available historical 
                        data; and
                          ``(II) an assessment of how reliably 
                        the models, methodologies or systems 
                        will project future outcomes.
                  ``(iv) The report shall be publicly available 
                and shall include sufficient information and 
                data such that economists and other scientists 
                with relevant expertise that are not on the 
                National Academies of Science panel can fully 
                evaluate the conclusions of the report.
                  ``(v) The report shall be completed within 
                three years of the date of enactment of this 
                paragraph.
                  ``(C) Determination.--(i) The Administrator 
                and the Secretary of Agriculture shall, after 
                notice and an opportunity for public comment, 
                determine whether, for purposes of determining 
                compliance with the percent reductions in 
                lifecycle greenhouse gas emissions specified in 
                paragraph (1) for various renewable fuels, 
                scientifically valid models and methodologies 
                exist to project indirect land use changes that 
                are related to the production of renewable 
                fuels and that occur outside the country in 
                which the feedstocks are grown, and the impact 
                of these changes on greenhouse gas emissions.
                  ``(ii) The determination shall take into 
                account the findings and recommendations of the 
                report required under subparagraph (B), as well 
                as other available scientific, economic, and 
                other relevant information. The Administrator 
                and the Secretary may also consider methods 
                used by the Environmental Protection Agency, 
                the Department of Agriculture, and other 
                Federal agencies to assess or guide their 
                related policies.
                  ``(iii) The Administrator and the Secretary 
                of Agriculture shall publish a proposed 
                determination not later than 4 years after date 
                of enactment of this paragraph, and shall 
                publish a final determination not later than 5 
                years after date of enactment of this 
                paragraph. An explanation and justification of 
                the determination shall be included in the 
                proposed and final actions, together with a 
                response to comments received.
                  ``(D) Response to determination.--(i) In the 
                event of a positive determination under 
                subparagraph (C), the Administrator and the 
                Secretary of Agriculture shall, after notice 
                and an opportunity for public comment, by the 
                same date jointly establish a methodology (or 
                methodologies) to calculate greenhouse gas 
                emissions from indirect land use changes that 
                are attributable to the production of renewable 
                fuels and that occur outside the country in 
                which feedstocks are grown for purposes of 
                calculating a renewable fuel's lifecycle 
                greenhouse gas emissions to determine whether 
                the fuel meets a definition in paragraph (1) or 
                complies with paragraph (2)(A)(i). The 
                exclusion in subparagraph (A) shall end, and 
                the Administrator shall issue a regulation by 
                the same date that shall include emissions from 
                indirect land use changes outside the renewable 
                fuel's feedstock's country of origin for 
                purposes of calculating a renewable fuel's 
                lifecycle greenhouse gas emissions to determine 
                whether the fuel meets a definition in 
                paragraph (1) or complies with paragraph 
                (2)(A)(i) for renewable fuels sold in the 
                calendar year following the year of the 
                positive determination. The effective date of 
                the regulation shall be six years after the 
                date of enactment of this paragraph.
                  ``(ii) A negative determination under 
                subparagraph (C) shall include a statement of 
                the basis for the determination.
                  ``(E) Accountability.--The joint duties and 
                actions of the Administrator and the Secretary 
                of Agriculture shall be subject to sections 304 
                and 307 of this Act as if they were the duties 
                and actions of the Administrator alone.''.

SEC. 552. BIOMASS-BASED DIESEL.

  Section 211(o)(2)(A) of the Clean Air Act (42 U.S.C. 
7545(o)(2)(A)) is amended by adding at the end the following 
new clause:
                          ``(v) Grandfathering biomass-based 
                        diesel.--The Administrator shall 
                        promulgate regulations exempting from 
                        the lifecycle greenhouse gas 
                        requirements in subparagraphs (B) and 
                        (D) of paragraph (1) up to the greater 
                        of 1 billion gallons or the volume 
                        mandate adopted pursuant to 
                        subparagraph (B)(ii) of biomass-based 
                        diesel annually from facilities that 
                        commenced construction before the date 
                        of enactment of the Energy Independence 
                        and Security Act of 2007.''.

SEC. 553. MODIFICATION OF DEFINITION OF RENEWABLE BIOMASS.

  (a) National Academy of Sciences Report.--Not later than 1 
year after the date of enactment of this Act, the Administrator 
of the Environmental Protection Agency, the Secretary of 
Agriculture, and the Federal Energy Regulatory Commission shall 
jointly arrange for the National Academy of Sciences to 
evaluate how sources of renewable biomass contribute to the 
goals of increasing America's energy independence, protecting 
the environment, and reducing global warming pollution.
  (b) Modification.--
          (1) EPA modification authority.--After reviewing the 
        report required by subsection (a), the Administrator of 
        the Environmental Protection Agency, in concurrence 
        with the Secretary of Agriculture, may, by regulation 
        and after public notice and comment, modify the non-
        Federal lands portion of the definition of ``renewable 
        biomass'' in sections 211(o)(1)(I) and 700 of the Clean 
        Air Act in order to advance the goals of increasing 
        America's energy independence, protecting the 
        environment, and reducing global warming pollution.
          (2) FERC modification authority.--After reviewing the 
        report required by subsection (a), the Federal Energy 
        Regulatory Commission, in concurrence with the 
        Secretary of Agriculture, may, by regulation and after 
        public notice and comment, modify the non-Federal lands 
        portion of the definition of ``renewable biomass'' in 
        section 610 of the Public Utility Regulatory Policies 
        Act of 1978 in order to advance the goals of increasing 
        America's energy independence, protecting the 
        environment, and reducing global warming pollution.
  (c) Federal Lands.--
          (1) Scientific review.--The Secretary of the 
        Interior, the Secretary of Agriculture, and the 
        Administrator of the Environmental Protection Agency 
        shall conduct a joint scientific review, within one 
        year after the date of enactment of this Act, to 
        evaluate how sources of biomass from Federal lands 
        could contribute to the goals of increasing America's 
        energy independence, protecting the environment, and 
        reducing global warming pollution.
          (2) Modification authority.--Based on the scientific 
        review, the agencies may, by rule, modify the 
        definition of ``renewable biomass'' from Federal lands 
        in sections 211(o)(1)(I) and 700 of the Clean Air Act 
        and section 610 of the Public Utility Regulatory 
        Policies Act of 1978 as appropriate to advance the 
        goals of increasing America's energy independence, 
        protecting the environment, and reducing global warming 
        pollution.
                              ----------                              


PART B--TEXT OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE TO BE MADE 
                                IN ORDER

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``New Manhattan Project for 
Energy Independence''.

SEC. 2. DEFINITIONS.

  In this Act--
          (1) Commission.--The term ``Commission'' means the 
        Commission established under section 7.
          (2) Research.--The term ``research'' includes 
        research on the technologies, materials, and 
        manufacturing processes required to achieve the goals 
        described in section 3.

SEC. 3. GOALS.

  (a) In General.--The purpose of this Act is to enable the 
achievement of each of the following goals:
          (1) Vehicle fuel efficiencies and alternative fuel 
        sources.--Development and manufacturing of a plug-in 
        hybrid vehicle, alternative fuel vehicle, electric 
        vehicle, hydrogen fuel cell vehicle, or other 
        alternative technology vehicle--
                  (A) that is not more than 10 percent more 
                expensive than a comparable model vehicle of 
                the same model year;
                  (B) with--
                          (i) equal acceleration, horsepower, 
                        and top speed performance; and
                          (ii) not more than 20 percent 
                        reduction in cargo space,
                as compared to a comparable model vehicle of 
                the same model year;
                  (C) that meets or exceeds Federal safety 
                standards;
                  (D) that can travel at least 750 miles 
                between refueling; and
                  (E) in the case of a gasoline powered 
                vehicle, that can travel at least 70 miles per 
                gallon of gasoline.
          (2) Green buildings.--Develop and build an energy 
        efficient residential or commercial building that--
                  (A) uses no more than 50 percent of the 
                energy of the average new building of similar 
                size and type;
                  (B) costs no more than 15 percent more to 
                construct than the cost of a building of 
                similar size and type; and
                  (C) can be effectively reproduced in a 
                variety of climate environments found in the 
                United States.
          (3) Solar power.--Construction of a large scale solar 
        thermal power plant or solar photovoltaic power plant 
        capable of generating 300 megawatts or more at a cost 
        of 10 cents or less per kilowatt-hour when all capital 
        and operating expenses are calculated into the cost.
          (4) Biofuels.--Development and production of a 
        biofuel that, when mass produced, does not exceed 105 
        percent of the cost for the energy equivalent of 
        unleaded gasoline when all capital and operating 
        expenses are calculated into the cost of the biofuel.
          (5) Carbon sequestration.--Development and 
        implementation of a carbon capture and storage system 
        for a large scale coal-burning power plant that does 
        not increase operating costs more than 15 percent 
        compared to a baseline design without carbon capture 
        and storage while providing an estimated chance of 
        carbon dioxide escape no greater than 1 percent over 
        5,000 years.
          (6) Nuclear waste.--Development of both--
                  (A) a validated process for remediation of 
                the radioactive waste form so it is no longer 
                harmful to the health or welfare of the 
                environment or individuals for a period to be 
                determined by the Commission, which shall be 
                not less than 5,000 years; and
                  (B) a model that accounts for all the effects 
                of nuclear waste in that process.
          (7) Nuclear fusion.--Development of a sustainable 
        nuclear fusion reaction capable of providing a large-
        scale (greater than 300 megawatts), sustainable source 
        of electricity for residential, commercial, or 
        government entities.
  (b) Amendment of Goals.--The Secretary of Energy may amend a 
goal described in subsection (a) pursuant to a recommendation 
from the Commission under section 7(b)(5), or on his own 
initiative, if such amendment serves the purpose of achieving 
the goal of United States energy independence through the 
development of technologies that lead to the widespread 
adoption of improvements that increase energy supply or energy 
efficiency.

SEC. 4. SUMMIT.

  (a) In General.--Not later than 60 days after the date of 
enactment of this Act, the President shall convene a summit 
that includes--
          (1) the principal advisors and directors of all 
        programs in the Federal Government related to the 
        achievement of the goals described in section 3;
          (2) the members of the Commission; and
          (3) leading researchers at the Federal laboratories 
        and representatives of private sector partners engaged 
        in the production and manufacturing of technologies 
        necessary to achieve the goals described in section 3.
  (b) Purpose.--The summit shall be for the purpose of 
reviewing the progress and promise for each of these 
technologies, the interrelationship of these technologies to 
each other, and additional funding resources needed to 
accelerate the progress of these programs toward achieving the 
goals described in section 3.

SEC. 5. GRANT PROGRAM.

  (a) In General.--The Secretary of Energy, in consultation 
with the Secretary of Defense, the Secretary of Transportation, 
the Administrator of the Environmental Protection Agency, and 
other Federal agencies as appropriate, shall carry out a 
program consisting of a collaborative effort with industry, 
government, and academia to support research, development, 
demonstration, and commercial application activities related to 
achieving the goals described in section 3.
  (b) Grants.--Such program shall consist of grants to 
researchers, large and small businesses, National Laboratories, 
institutions of higher education, or any other qualified 
applicant, including veterans.
  (c) Limitation on Amount.--No grant shall be made under this 
section in an amount that exceeds 5 percent of the amount 
authorized under section 8(1) for prizes for the achievement of 
the same goal.
  (d) Cost Sharing.--The Federal share of the costs of a 
project for which a grant is made under this section shall not 
exceed 15 percent.

SEC. 6. PRIZE PROGRAM.

  (a) Prize Authority.--
          (1) In general.--The Secretary of Energy shall carry 
        out a program to competitively award cash prizes in 
        conformity with this section to advance the research, 
        development, demonstration, and commercial application 
        necessary to achieve the goals described in section 3.
          (2) Advertising and solicitation of competitors.--
                  (A) Advertising.--The Secretary shall widely 
                advertise prize competitions under this section 
                to encourage broad participation by 
                researchers, large and small businesses, 
                institutions of higher education, and any other 
                qualified applicants, including veterans.
                  (B) Announcement through federal register 
                notice.--The Secretary shall announce each 
                prize competition under this section 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, which shall include, at a 
                minimum, the achievement of one of the goals 
                described in section 3.
          (3) Announcement of prizes.--The Secretary may not 
        issue a notice required by paragraph (2)(B) until all 
        the funds needed to pay out the announced amount of the 
        prize have been appropriated.
  (b) Prize Categories.--
          (1) Categories.--The Secretary of Energy shall 
        establish a single prize under this section for each of 
        the goals described in paragraphs (1) through (7) of 
        section 3.
          (2) Criteria.--In establishing the criteria required 
        by this section, the Secretary--
                  (A) shall consult with other Federal 
                agencies, including the National Science 
                Foundation; and
                  (B) 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.
  (c) Eligibility.--To be eligible to win a prize under this 
section, an individual or entity--
          (1) shall have complied with all the requirements in 
        accordance with the Federal Register notice required 
        under subsection (a)(2)(B);
          (2) 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
          (3) 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.
  (d) Award Selection.--
          (1) In general.--The Secretary of Energy shall award 
        prizes under this section on the basis of the criteria 
        published in the notice required under subsection 
        (a)(2)(B), after receiving the recommendations of the 
        Commission under section 7(b)(3).
          (2) Congressional notification.--If the Secretary 
        awards a prize under paragraph (1) in a manner that 
        does not conform to the recommendations of the 
        Commission, the Secretary shall transmit a report to 
        the Congress explaining the reasons for such action.
  (e) Intellectual Property.--The Federal Government shall not, 
by virtue of offering or awarding a prize under this section, 
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 
section. This subsection 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 section.
  (f) Liability.--
          (1) Waiver of liability.--The Secretary of Energy may 
        require registered participants to waive claims against 
        the Federal Government (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 section. The Secretary shall give notice of 
        any waiver required under this paragraph in the notice 
        required by subsection (a)(2)(B).
          (2) Liability insurance.--
                  (A) Requirements.--Registered participants in 
                a prize competition under this section 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 section; and
                          (ii) the Federal Government for 
                        damage or loss to Government property 
                        resulting from such an activity.
                  (B) Federal government insured.--The Federal 
                Government shall be named as an additional 
                insured under a registered participant's 
                insurance policy required under subparagraph 
                (A) with respect to claims described in clause 
                (i) of that subparagraph, 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 
                section.
  (g) Nonsubstitution.--The programs created under this section 
shall not be considered a substitute for Federal research and 
development programs.

SEC. 7. COMMISSION.

  (a) Establishment.--There shall be established the New 
Manhattan Project Commission on Energy Independence.
  (b) Functions.--The Commission shall--
          (1) not later than 1 year after the date of enactment 
        of this Act, submit to Congress and the President a 
        report containing--
                  (A) recommendations on steps that must be 
                taken in order for the United States to achieve 
                50 percent energy independence within 10 years 
                and 100 percent energy independence within 20 
                years; and
                  (B) an assessment of the impact of foreign 
                energy dependence on United States national 
                security;
          (2) advise the Secretary of Energy on the design and 
        operation of the grant program established under 
        section 5;
          (3) make recommendations to the Secretary of Energy 
        on the design and operation, including selection 
        criteria, of the prize program carried out under 
        section 6;
          (4) make recommendations to the Secretary of Energy 
        selecting participants who have achieved a goal for 
        which a prize will be awarded under section 6; and
          (5) submit recommendations to Congress for any 
        amendments to make the goals described in section 3 
        more stringent, as appropriate because of changing 
        circumstances, if such amendments serve the purpose of 
        achieving the goal of United States energy independence 
        through the development of technologies that lead to 
        the widespread adoption of improvements that increase 
        energy supply or energy efficiency.
  (c) Membership.--The Commission shall be composed of 13 
members as follows:
          (1) The Under Secretary for Science of the Department 
        of Energy.
          (2) The Administrator of the Research and Innovative 
        Technology Administration.
          (3) The Director of the National Science Foundation.
          (4) The Chairman of the Federal Laboratory Consortium 
        for Technology Transfer.
          (5) The President of the National Academy of 
        Sciences.
          (6) 2 members appointed by the Speaker of the House 
        of Representatives.
          (7) 2 members appointed by the minority leader of the 
        House of Representatives.
          (8) 2 members appointed by the majority leader of the 
        Senate.
          (9) 2 members appointed by the minority leader of the 
        Senate.
  (d) Terms of Membership.--Each member of the Commission 
appointed under subsection (c)(6) through (9) shall be 
appointed for a term of two years, except that of the members 
first appointed, one under each of those paragraphs shall be 
appointed for a term of one year. A member of the Commission 
may serve after the expiration of the member's term until a 
successor has taken office.
  (e) Vacancies.--A vacancy in the Commission shall not affect 
its powers but, in the case of a member appointed under 
subsection (c)(6) through (9), shall be filled in the same 
manner as the original appointment was made. Any member 
appointed to fill a vacancy for an unexpired term shall be 
appointed for the remainder of such term.
  (f) Quorum.--Seven members of the Commission shall constitute 
a quorum.
  (g) Meetings.--The Commission shall meet at the call of the 
Chairman or a majority of its members.
  (h) Compensation.--(1) Each member of the Commission shall 
serve without compensation.
  (2) While away from their homes or regular places of business 
in the performance of duties for the Commission, members of the 
Commission shall be allowed travel expenses, including per diem 
in lieu of subsistence, at rates authorized for employees of 
agencies under sections 5702 and 5703 of title 5, United States 
Code.
  (i) Staff.--Subject to rules prescribed by the Commission, 
the Commission may appoint personnel as it considers 
appropriate.
  (j) Applicability of Certain Civil Service Laws.--The staff 
of the Commission shall be appointed subject to the provisions 
of title 5, United States Code, governing appointments in the 
competitive service, and shall be paid in accordance with the 
provisions of chapter 51 and subchapter III of chapter 53 of 
that title relating to classification and General Schedule pay 
rates.
  (k) Experts and Consultants.--The Commission may procure 
temporary and intermittent services under section 3109(b) of 
title 5, United States Code.
  (l) Hearings and Sessions.--The Commission may, for the 
purpose of carrying out this Act, hold hearings, sit and act at 
times and places, take testimony, and receive evidence as the 
Commission considers appropriate.
  (m) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any 
action which the Commission is authorized to take by this 
section.
  (n) Obtaining Official Data.--The Commission may secure 
directly from any department or agency of the United States 
information necessary to enable it to carry out this Act. Upon 
request of the Commission, the head of that department or 
agency shall furnish that information to the Commission.
  (o) Subpoena Power.--
          (1) In general.--The Commission may issue subpoenas 
        requiring the attendance and testimony of witnesses and 
        the production of any evidence relating to any matter 
        under investigation by the Commission. The attendance 
        of witnesses and the production of evidence may be 
        required from any place within the United States at any 
        designated place of hearing within the United States.
          (2) Failure to obey a subpoena.--If a person refuses 
        to obey a subpoena issued under paragraph (1), the 
        Commission may apply to a United States district court 
        for an order requiring that person to appear before the 
        Commission to give testimony, produce evidence, or 
        both, relating to the matter under investigation. The 
        application may be made within the judicial district 
        where the hearing is conducted or where that person is 
        found, resides, or transacts business. Any failure to 
        obey the order of the court may be punished by the 
        court as civil contempt.
          (3) Service of subpoenas.--The subpoenas of the 
        Commission shall be served in the manner provided for 
        subpoenas issued by a United States district court 
        under the Federal Rules of Civil Procedure for the 
        United States district courts.
          (4) Service of process.--All process of any court to 
        which application is made under paragraph (2) may be 
        served in the judicial district in which the person 
        required to be served resides or may be found.
  (p) Federal Advisory Committee Act.--Section 14 of the 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
to the Commission.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Secretary of 
Energy--
          (1) for the period encompassing fiscal years 2010 
        through 2019--
                  (A) $500,000,000 for awarding the prize under 
                section 6 for meeting the goal described in 
                section 3(1);
                  (B) $250,000,000 for awarding the prize under 
                section 6 for meeting the goal described in 
                section 3(2);
                  (C) $250,000,000 for awarding the prize under 
                section 6 for meeting the goal described in 
                section 3(3);
                  (D) $1,000,000,000 for awarding the prize 
                under section 6 for meeting the goal described 
                in section 3(4);
                  (E) $1,000,000,000 for awarding the prize 
                under section 6 for meeting the goal described 
                in section 3(5);
                  (F) $1,000,000,000 for awarding the prize 
                under section 6 for meeting the goal described 
                in section 3(6);
                  (G) $10,000,000,000 for awarding the prize 
                under section 6 for meeting the goal described 
                in section 3(7); and
                  (H) $10,000,000,000 for carrying out the 
                grant program under section 5; and
          (2) such sums as may be necessary for carrying out 
        this Act for subsequent fiscal years.

                                  
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