[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Engrossed Amendment House (EAH)]
In the House of Representatives, U. S.,
December 6, 2007.
Resolved, That the House agree to the amendments of the Senate to
the bill (H.R. 6) entitled ``An Act to reduce our Nation's dependency
on foreign oil by investing in clean, renewable, and alternative energy
resources, promoting new emerging energy technologies, developing
greater efficiency, and creating a Strategic Energy Efficiency and
Renewables Reserve to invest in alternative energy, and for other
purposes'', with the following
HOUSE AMENDMENTS TO SENATE AMENDMENTS:
In lieu of the matter proposed to be inserted by the
amendment of the Senate to the text of the bill, insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Independence and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to other law.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy Standards
Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain
other vehicles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-
duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling
procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.
Subtitle B--Improved Vehicle Technology
Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts
manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive program.
Subtitle C--Federal Vehicle Fleets
Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric
vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations
on fuels and fuel additives.
Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.
Subtitle B--Biofuels Research and Development
Sec. 221. Biodiesel.
Sec. 222. Biogas.
Sec. 223. Grants for biofuel production research and development in
certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85
fuel.
Sec. 226. Study of engine durability and performance associated with
the use of biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of
appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.
Subtitle C--Biofuels Infrastructure
Sec. 241. Prohibition on franchise agreement restrictions related to
renewable fuel infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of domestically-
produced renewable fuel by railroads and
other modes of transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels infrastructure.
Subtitle D--Environmental Safeguards
Sec. 251. Waiver for fuel or fuel additives.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING
Subtitle A--Appliance Energy Efficiency
Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying
State authority.
Sec. 306. Regional standards for furnaces, central air conditioners,
and heat pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 310. Standby mode.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and
heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in
cold climates.
Sec. 316. Technical corrections.
Subtitle B--Lighting Energy Efficiency
Sec. 321. Efficient light bulbs.
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy
systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
Sec. 401. Definitions.
Subtitle A--Residential Building Efficiency
Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.
Subtitle B--High-Performance Commercial Buildings
Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.
Subtitle C--High-Performance Federal Buildings
Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal
buildings.
Sec. 433. Federal building energy efficiency performance standards.
Sec. 434. Management of Federal building efficiency .
Sec. 435. Leasing.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development
projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.
Subtitle D--Industrial Energy Efficiency
Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.
Subtitle E--Healthy High-Performance Schools
Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.
Subtitle F--Institutional Entities
Sec. 471. Energy sustainability and efficiency grants and loans for
institutions.
Subtitle G--Public and Assisted Housing
Sec. 481. Application of International Energy Conservation Code to
public and assisted housing.
Subtitle H--General Provisions
Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program
for local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A--United States Capitol Complex
Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master
plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power
plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility
study and demonstration projects.
Subtitle B--Energy Savings Performance Contracting
Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and
verifying savings.
Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy
efficiency contracts.
Sec. 518. Study of energy and cost savings in nonbuilding applications.
Subtitle C--Energy Efficiency in Federal Agencies
Sec. 521. Installation of photovoltaic system at Department of Energy
headquarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.
Subtitle D--Energy Efficiency of Public Institutions
Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.
Subtitle E--Energy Efficiency and Conservation Block Grants
Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 548. Funding.
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A--Solar Energy
Sec. 601. Short title.
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants.
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.
Subtitle B--Geothermal Energy
Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and
recovery and production of geopressured gas
resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621. Reports.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
Sec. 631. Short title.
Sec. 632. Definition.
Sec. 633. Marine and hydrokinetic renewable energy research and
development.
Sec. 634. National Marine Renewable Energy Research, Development, and
Demonstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.
Subtitle D--Energy Storage for Transportation and Electric Power
Sec. 641. Energy storage competitiveness.
Subtitle E--Miscellaneous Provisions
Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION
Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration
Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research, development, and
demonstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework
Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous
oxide emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public land.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A--Management Improvements
Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources
to generate energy.
Sec. 807. Geothermal assessment, exploration information, and priority
activities.
Subtitle B--Prohibitions on Market Manipulation and False Information
Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 814. Penalties.
Sec. 815. Effect on other laws.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
Sec. 901. Definitions.
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China,
and other countries.
Sec. 913. United States trade missions to encourage private sector
trade and investment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy
technologies and investment in global
energy markets.
Sec. 917. United States-Israel energy cooperation.
Subtitle B--International Clean Energy Foundation
Sec. 921. Definitions.
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.
Subtitle C--Miscellaneous Provisions
Sec. 931. Energy diplomacy and security within the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage
contingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.
TITLE X--GREEN JOBS
Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training
program.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A--Department of Transportation
Sec. 1101. Office of Climate Change and Environment.
Subtitle B--Railroads
Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.
Subtitle C--Marine Transportation
Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction
fund.
Sec. 1123. Short sea transportation report.
Subtitle D--Highways
Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
Sec. 1133. Sense of Congress regarding use of complete streets design
techniques.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS
Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy
efficient technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy
efficient technologies and purchases.
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.
TITLE XIII--SMART GRID
Sec. 1301. Statement of policy on modernization of electricity grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task force.
Sec. 1304. Smart grid technology research, development, and
demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development
of combined heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.
TITLE XIV--RENEWABLE ELECTRICITY STANDARD
Sec. 1401. Renewable electricity standard.
TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007
Sec. 1500. Short title; amendment of 1986 Code.
Subtitle A--Clean Renewable Energy Production Incentives
Part I--Provisions Relating to Renewable Energy
Sec. 1501. Extension and modification of renewable energy credit.
Sec. 1502. Production credit for electricity produced from marine
renewables.
Sec. 1503. Extension and modification of energy credit.
Sec. 1504. Extension and modification of credit for residential energy
efficient property.
Sec. 1505. Extension and modification of special rule to implement FERC
and State electric restructuring policy.
Sec. 1506. New clean renewable energy bonds.
Part II--Provisions Relating to Carbon Mitigation and Coal
Sec. 1507. Expansion and modification of advanced coal project
investment credit.
Sec. 1508. Expansion and modification of coal gasification investment
credit.
Sec. 1509. Seven-year applicable recovery period for depreciation of
qualified carbon dioxide pipeline property.
Sec. 1510. Special rules for refund of the coal excise tax to certain
coal producers and exporters.
Sec. 1511. Extension of temporary increase in coal excise tax.
Sec. 1512. Carbon audit of the tax code.
Subtitle B--Transportation and Domestic Fuel Security
Part I--Biofuels
Sec. 1521. Credit for production of cellulosic biomass alcohol.
Sec. 1522. Expansion of special allowance to cellulosic biomass alcohol
fuel plant property.
Sec. 1523. Modification of alcohol credit.
Sec. 1524. Extension and modification of credits for biodiesel and
renewable diesel.
Sec. 1525. Clarification of eligibility for renewable diesel credit.
Sec. 1526. Provisions clarifying treatment of fuels with no nexus to
the United States.
Sec. 1527. Comprehensive study of biofuels.
Part II--Advanced Technology Motor Vehicles
Sec. 1528. Credit for new qualified plug-in electric drive motor
vehicles.
Sec. 1529. Exclusion from heavy truck tax for idling reduction units
and advanced insulation.
Part III--Other Transportation Provisions
Sec. 1530. Restructuring of New York Liberty Zone tax credits.
Sec. 1531. Extension of transportation fringe benefit to bicycle
commuters.
Subtitle C--Energy Conservation and Efficiency
Part I--Conservation Tax Credit Bonds
Sec. 1541. Qualified energy conservation bonds.
Sec. 1542. Qualified forestry conservation bonds.
Part II--Efficiency
Sec. 1543. Extension and modification of energy efficient existing
homes credit.
Sec. 1544. Extension and modification of energy efficient commercial
buildings deduction.
Sec. 1545. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 1546. Seven-year applicable recovery period for depreciation of
qualified energy management devices.
Subtitle D--Other Provisions
Part I--Forestry Provisions
Sec. 1551. Deduction for qualified timber gain.
Sec. 1552. Excise tax not applicable to section 1203 deduction of real
estate investment trusts.
Sec. 1553. Timber REIT modernization.
Sec. 1554. Mineral royalty income qualifying income for timber REITs.
Sec. 1555. Modification of taxable REIT subsidiary asset test for
timber REITs.
Sec. 1556. Safe harbor for timber property.
Part II--Exxon Valdez
Sec. 1557. Income averaging for amounts received in connection with the
Exxon Valdez litigation.
Subtitle E--Revenue Provisions
Sec. 1561. Limitation of deduction for income attributable to domestic
production of oil, gas, or a primary
products thereof.
Sec. 1562. Elimination of the different treatment of foreign oil and
gas extraction income and foreign oil
related income for purposes of the foreign
tax credit.
Sec. 1563. Seven-year amortization of geological and geophysical
expenditures for certain major integrated
oil companies.
Sec. 1564. Broker reporting of customer's basis in securities
transactions.
Sec. 1565. Extension of additional 0.2 percent FUTA surtax.
Sec. 1566. Termination of treatment of natural gas distribution lines
as 15-year property.
Sec. 1567. Time for payment of corporate estimated taxes.
Sec. 1568. Modification of penalty for failure to file partnership
returns.
Subtitle F--Secure Rural Schools
Sec. 1571. Secure rural schools and community self-determination
program.
SEC. 2. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 3. RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or an amendment
made by this Act, nothing in this Act or an amendment made by this Act
supersedes, limits the authority provided or responsibility conferred
by, or authorizes any violation of any provision of law (including a
regulation), including any energy or environmental law or regulation.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy Standards
SEC. 101. SHORT TITLE.
This subtitle may be cited as the ``Ten-in-Ten Fuel Economy Act''.
SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN
OTHER VEHICLES.
(a) Increased Standards.--Section 32902 of title 49, United States
Code, is amended--
(1) in subsection (a)--
(A) by striking ``Non-Passenger Automobiles.--''
and inserting ``Prescription of Standards by
Regulation.--'';
(B) by striking ``(except passenger automobiles)''
in subsection (a); and
(C) by striking the last sentence;
(2) by striking subsection (b) and inserting the following:
``(b) Standards for Automobiles and Certain Other Vehicles.--
``(1) In general.--The Secretary of Transportation, after
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, shall prescribe
separate average fuel economy standards for--
``(A) passenger automobiles manufactured by
manufacturers in each model year beginning with model
year 2011 in accordance with this subsection;
``(B) non-passenger automobiles manufactured by
manufacturers in each model year beginning with model
year 2011 in accordance with this subsection;
``(C) work trucks in accordance with subsection
(k); and
``(D) commercial medium-duty or heavy-duty on-
highway vehicles in accordance with subsection (l).
``(2) Fuel economy standards for automobiles.--
``(A) Automobile fuel economy average for model
years 2011 through 2020.--The Secretary shall prescribe
a separate average fuel economy standard for passenger
automobiles and a separate average fuel economy
standard for non-passenger automobiles for each model
year beginning with model year 2011 to achieve a
combined fuel economy average for model year 2020 of at
least 35 miles per gallon for the total fleet of
passenger and non-passenger automobiles manufactured
for sale in the United States for that model year.
``(B) Automobile fuel economy average for model
years 2021 through 2030.--For model years 2021 through
2030, the average fuel economy required to be attained
by each fleet of passenger and non-passenger
automobiles manufactured for sale in the United States
shall be the maximum feasible average fuel economy
standard for each fleet for that model year.
``(C) Progress toward standard required.--In
prescribing average fuel economy standards under
subparagraph (A), the Secretary shall prescribe annual
fuel economy standard increases that increase the
applicable average fuel economy standard ratably
beginning with model year 2011 and ending with model
year 2020.
``(3) Authority of the secretary.--The Secretary shall--
``(A) prescribe by regulation separate average fuel
economy standards for passenger and non-passenger
automobiles based on 1 or more vehicle attributes
related to fuel economy and express each standard in
the form of a mathematical function; and
``(B) issue regulations under this title
prescribing average fuel economy standards for at least
1, but not more than 5, model years.
``(4) Minimum standard.--In addition to any standard
prescribed pursuant to paragraph (3), each manufacturer shall
also meet the minimum standard for domestically manufactured
passenger automobiles, which shall be the greater of--
``(A) 27.5 miles per gallon; or
``(B) 92 percent of the average fuel economy
projected by the Secretary for the combined domestic
and non-domestic passenger automobile fleets
manufactured for sale in the United States by all
manufacturers in the model year, which projection shall
be published in the Federal Register when the standard
for that model year is promulgated in accordance with
this section.''; and
(3) in subsection (c)--
(A) by striking ``(1) Subject to paragraph (2) of
this subsection, the'' and inserting ``The''; and
(B) by striking paragraph (2).
(b) Fuel Economy Standard for Work Trucks.--Section 32902 of title
49, United States Code, is amended by adding at the end the following:
``(k) Work Trucks.--
``(1) Study.--Not later than 1 year after the date of the
enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of
Transportation, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency,
shall examine the fuel efficiency of work trucks and
determine--
``(A) the appropriate test procedures and
methodologies for measuring the fuel efficiency of work
trucks;
``(B) the appropriate metric for measuring and
expressing work truck fuel efficiency performance,
taking into consideration, among other things, the work
performed by work trucks and types of operations in
which they are used;
``(C) the range of factors, including, without
limitation, design, functionality, use, duty cycle,
infrastructure, and total overall energy consumption
and operating costs that affect work truck fuel
efficiency; and
``(D) such other factors and conditions that could
have an impact on a program to improve work truck fuel
efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1), the
Secretary, in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, by
regulation, shall determine in a rulemaking proceeding how to
implement a work truck fuel efficiency improvement program
designed to achieve the maximum feasible improvement, and shall
adopt and implement appropriate test methods, measurement
metrics, fuel economy standards, and compliance and enforcement
protocols that are appropriate, cost-effective, and
technologically feasible for work trucks. Any fuel economy
standard prescribed under this section shall be prescribed at
least 18 months before the model year to which it applies. The
Secretary may prescribe separate standards for different
classes of vehicles under this subsection.''.
(c) Fuel Economy Standard for Commercial Medium-Duty and Heavy-Duty
On-Highway Vehicles.--Section 32902 of title 49, United States Code, as
amended by subsection (b), is further amended by adding at the end the
following:
``(l) Commercial Medium- and Heavy-Duty On-Highway Vehicles.--
``(1) Study.--Not later than 1 year after the National
Academy of Sciences publishes the results of its study under
section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary
of Transportation, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency,
shall examine the fuel efficiency of commercial medium- and
heavy-duty on-highway vehicles and determine--
``(A) the appropriate test procedures and
methodologies for measuring the fuel efficiency of such
vehicles;
``(B) the appropriate metric for measuring and
expressing commercial medium- and heavy-duty on-highway
vehicle fuel efficiency performance, taking into
consideration, among other things, the work performed
by such on-highway vehicles and types of operations in
which they are used;
``(C) the range of factors, including, without
limitation, design, functionality, use, duty cycle,
infrastructure, and total overall energy consumption
and operating costs that affect commercial medium- and
heavy-duty on-highway vehicle fuel efficiency; and
``(D) such other factors and conditions that could
have an impact on a program to improve commercial
medium- and heavy-duty on-highway vehicle fuel
efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1), the
Secretary, in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, by
regulation, shall determine in a rulemaking proceeding how to
implement a commercial medium- and heavy-duty on-highway
vehicle fuel efficiency improvement program designed to achieve
the maximum feasible improvement, and shall adopt and implement
appropriate test methods, measurement metrics, fuel economy
standards, and compliance and enforcement protocols that are
appropriate, cost-effective, and technologically feasible for
commercial medium- and heavy-duty on-highway vehicles. Any fuel
economy standard prescribed under this section shall be
prescribed at least 18 months before the model year to which it
applies. The Secretary may prescribe separate standards for
different classes of vehicles under this subsection.
``(3) Lead-time; regulatory stability.--The first
commercial medium- and heavy-duty on-highway vehicle fuel
efficiency regulatory program adopted pursuant to this
subsection shall provide not less than--
``(A) 4 full model years of regulatory lead-time;
and
``(B) 3 full model years of regulatory
stability.''.
SEC. 103. DEFINITIONS.
(a) In General.--Section 32901(a) of title 49, United States Code,
is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) except as provided in section 32908 of this title,
`automobile' means a 4-wheeled vehicle that is propelled by
fuel, or by alternative fuel, manufactured primarily for use on
public streets, roads, and highways and rated at less than
10,000 pounds gross vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured in different stages by
2 or more manufacturers, if no intermediate or final-
stage manufacturer of that vehicle manufactures more
than 10,000 multi-stage vehicles per year; or
``(C) a work truck.'';
(2) by redesignating paragraphs (7) through (16) as
paragraphs (8) through (17), respectively;
(3) by inserting after paragraph (6) the following:
``(7) `commercial medium- and heavy-duty on-highway
vehicle' means an on-highway vehicle with a gross vehicle
weight rating of 10,000 pounds or more.'';
(4) in paragraph (9)(A), as redesignated, by inserting ``or
a mixture of biodiesel and diesel fuel meeting the standard
established by the American Society for Testing and Materials
or under section 211(u) of the Clean Air Act (42 U.S.C.
7545(u)) for fuel containing 20 percent biodiesel (commonly
known as `B20')'' after ``alternative fuel'';
(5) by redesignating paragraph (17), as redesignated, as
paragraph (18);
(6) by inserting after paragraph (16), as redesignated, the
following:
``(17) `non-passenger automobile' means an automobile that
is not a passenger automobile or a work truck.''; and
(7) by adding at the end the following:
``(19) `work truck' means a vehicle that--
``(A) is rated at between 8,500 and 10,000 pounds
gross vehicle weight; and
``(B) is not a medium-duty passenger vehicle (as
defined in section 86.1803-01 of title 40, Code of
Federal Regulations, as in effect on the date of the
enactment of the Ten-in-Ten Fuel Economy Act).''.
SEC. 104. CREDIT TRADING PROGRAM.
(a) In General.--Section 32903 of title 49, United States Code, is
amended--
(1) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (a) through (d) of
section 32902'';
(2) in subsection (a)(2)--
(A) by striking ``3 consecutive model years'' and
inserting ``5 consecutive model years'';
(B) by striking ``clause (1) of this subsection,''
and inserting ``paragraph (1)'';
(3) by redesignating subsection (f) as subsection (h); and
(4) by inserting after subsection (e) the following:
``(f) Credit Trading Among Manufacturers.--
``(1) In general.--The Secretary of Transportation may
establish, by regulation, a fuel economy credit trading program
to allow manufacturers whose automobiles exceed the average
fuel economy standards prescribed under section 32902 to earn
credits to be sold to manufacturers whose automobiles fail to
achieve the prescribed standards such that the total oil
savings associated with manufacturers that exceed the
prescribed standards are preserved when trading credits to
manufacturers that fail to achieve the prescribed standards.
``(2) Limitation.--The trading of credits by a manufacturer
to the category of passenger automobiles manufactured
domestically is limited to the extent that the fuel economy
level of such automobiles shall comply with the requirements of
section 32902(b)(4), without regard to any trading of credits
from other manufacturers.
``(g) Credit Transferring Within a Manufacturer's Fleet.--
``(1) In general.--The Secretary of Transportation shall
establish by regulation a fuel economy credit transferring
program to allow any manufacturer whose automobiles exceed any
of the average fuel economy standards prescribed under section
32902 to transfer the credits earned under this section and to
apply such credits within that manufacturer's fleet to a
compliance category of automobiles that fails to achieve the
prescribed standards.
``(2) Years for which used.--Credits transferred under this
subsection are available to be used in the same model years
that the manufacturer could have applied such credits under
subsections (a), (b), (d), and (e), as well as for the model
year in which the manufacturer earned such credits.
``(3) Maximum increase.--The maximum increase in any
compliance category attributable to transferred credits is--
``(A) for model years 2011 through 2013, 1.0 mile
per gallon;
``(B) for model years 2014 through 2017, 1.5 miles
per gallon; and
``(C) for model year 2018 and subsequent model
years, 2.0 miles per gallon.
``(4) Limitation.--The transfer of credits by a
manufacturer to the category of passenger automobiles
manufactured domestically is limited to the extent that the
fuel economy level of such automobiles shall comply with the
requirements under section 32904(b)(4), without regard to any
transfer of credits from other categories of automobiles
described in paragraph (6)(B).
``(5) Years available.--A credit may be transferred under
this subsection only if it is earned after model year 2010.
``(6) Definitions.--In this subsection:
``(A) Fleet.--The term `fleet' means all
automobiles manufactured by a manufacturer in a
particular model year.
``(B) Compliance category of automobiles.--The term
`compliance category of automobiles' means any of the
following 3 categories of automobiles for which
compliance is separately calculated under this chapter:
``(i) Passenger automobiles manufactured
domestically.
``(ii) Passenger automobiles not
manufactured domestically.
``(iii) Non-passenger automobiles.''.
(b) Conforming Amendments.--
(1) Limitations.--Section 32902(h) of title 49, United
States Code, is amended--
(A) in paragraph (1), by striking ``and'' at the
end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) may not consider, when prescribing a fuel economy
standard, the trading, transferring, or availability of credits
under section 32903.''.
(2) Separate calculations.--Section 32904(b)(1)(B) is
amended by striking ``chapter.'' and inserting ``chapter,
except for the purposes of section 32903.''.
SEC. 105. CONSUMER INFORMATION.
Section 32908 of title 49, United States Code, is amended by adding
at the end the following:
``(g) Consumer Information.--
``(1) Program.--The Secretary of Transportation, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, shall develop and
implement by rule a program to require manufacturers--
``(A) to label new automobiles sold in the United
States with--
``(i) information reflecting an
automobile's performance on the basis of
criteria that the Administrator shall develop,
not later than 18 months after the date of the
enactment of the Ten-in-Ten Fuel Economy Act,
to reflect fuel economy and greenhouse gas and
other emissions over the useful life of the
automobile;
``(ii) a rating system that would make it
easy for consumers to compare the fuel economy
and greenhouse gas and other emissions of
automobiles at the point of purchase, including
a designation of automobiles--
``(I) with the lowest greenhouse
gas emissions over the useful life of
the vehicles; and
``(II) the highest fuel economy;
and
``(iii) a permanent and prominent display
that an automobile is capable of operating on
an alternative fuel; and
``(B) to include in the owner's manual for vehicles
capable of operating on alternative fuels information
that describes that capability and the benefits of
using alternative fuels, including the renewable nature
and environmental benefits of using alternative fuels.
``(2) Consumer education.--
``(A) In general.--The Secretary of Transportation,
in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
shall develop and implement by rule a consumer
education program to improve consumer understanding of
automobile performance described in paragraph (1)(A)(i)
and to inform consumers of the benefits of using
alternative fuel in automobiles and the location of
stations with alternative fuel capacity.
``(B) Fuel savings education campaign.--The
Secretary of Transportation shall establish a consumer
education campaign on the fuel savings that would be
recognized from the purchase of vehicles equipped with
thermal management technologies, including energy
efficient air conditioning systems and glass.
``(3) Fuel tank labels for alternative fuel automobiles.--
The Secretary of Transportation shall by rule require a label
to be attached to the fuel compartment of vehicles capable of
operating on alternative fuels, with the form of alternative
fuel stated on the label. A label attached in compliance with
the requirements of section 32905(h) is deemed to meet the
requirements of this paragraph.
``(4) Rulemaking deadline.--The Secretary of Transportation
shall issue a final rule under this subsection not later than
42 months after the date of the enactment of the Ten-in-Ten
Fuel Economy Act.''.
SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.
Nothing in this subtitle, or the amendments made by this subtitle,
shall be construed to affect the application of section 32902 of title
49, United States Code, to passenger automobiles or non-passenger
automobiles manufactured before model year 2011.
SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary of Transportation shall execute an agreement
with the National Academy of Sciences to develop a report evaluating
vehicle fuel economy standards, including--
(1) an assessment of automotive technologies and costs to
reflect developments since the Academy's 2002 report evaluating
the corporate average fuel economy standards was conducted;
(2) an analysis of existing and potential technologies that
may be used practically to improve automobile and medium-duty
and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the automotive and medium-duty and heavy-duty
truck manufacturing process; and
(4) an assessment of how such technologies may be used to
meet the new fuel economy standards under chapter 329 of title
49, United States Code, as amended by this subtitle.
(b) Report.--The Academy shall submit the report to the Secretary,
the Committee on Commerce, Science, and Transportation of the Senate,
and the Committee on Energy and Commerce of the House of
Representatives, with its findings and recommendations not later than 5
years after the date on which the Secretary executes the agreement with
the Academy.
(c) Quinquennial Updates.--After submitting the initial report, the
Academy shall update the report at 5 year intervals thereafter through
2025.
SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-
DUTY TRUCK FUEL ECONOMY.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary of Transportation shall execute an agreement
with the National Academy of Sciences to develop a report evaluating
medium-duty and heavy-duty truck fuel economy standards, including--
(1) an assessment of technologies and costs to evaluate
fuel economy for medium-duty and heavy-duty trucks;
(2) an analysis of existing and potential technologies that
may be used practically to improve medium-duty and heavy-duty
truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the medium-duty and heavy-duty truck
manufacturing process;
(4) an assessment of how such technologies may be used to
meet fuel economy standards to be prescribed under section
32902(l) of title 49, United States Code, as amended by this
subtitle; and
(5) associated costs and other impacts on the operation of
medium-duty and heavy-duty trucks, including congestion.
(b) Report.--The Academy shall submit the report to the Secretary,
the Committee on Commerce, Science, and Transportation of the Senate,
and the Committee on Energy and Commerce of the House of
Representatives, with its findings and recommendations not later than 1
year after the date on which the Secretary executes the agreement with
the Academy.
SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.
(a) In General.--Section 32906 of title 49, United States Code, is
amended to read as follows:
``Sec. 32906. Maximum fuel economy increase for alternative fuel
automobiles
``(a) In General.--For each of model years 1993 through 2019 for
each category of automobile (except an electric automobile), the
maximum increase in average fuel economy for a manufacturer
attributable to dual fueled automobiles is--
``(1) 1.2 miles a gallon for each of model years 1993
through 2014;
``(2) 1.0 miles per gallon for model year 2015;
``(3) 0.8 miles per gallon for model year 2016;
``(4) 0.6 miles per gallon for model year 2017;
``(5) 0.4 miles per gallon for model year 2018;
``(6) 0.2 miles per gallon for model year 2019; and
``(7) 0 miles per gallon for model years after 2019.
``(b) Calculation.--In applying subsection (a), the Administrator
of the Environmental Protection Agency shall determine the increase in
a manufacturer's average fuel economy attributable to dual fueled
automobiles by subtracting from the manufacturer's average fuel economy
calculated under section 32905(e) the number equal to what the
manufacturer's average fuel economy would be if it were calculated by
the formula under section 32904(a)(1) by including as the denominator
for each model of dual fueled automobiles the fuel economy when the
automobiles are operated on gasoline or diesel fuel.''.
(b) Conforming Amendments.--Section 32905 of title 49, United
States Code, is amended--
(1) in subsection (b), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(2) in subsection (d), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(3) by striking subsections (f) and (g); and
(4) by redesignating subsection (h) as subsection (f).
(c) B20 Biodiesel Flexible Fuel Credit.--Section 32905(b)(2) of
title 49, United States Code, is amended to read as follows:
``(2) .5 divided by the fuel economy--
``(A) measured under subsection (a) when operating
the model on alternative fuel; or
``(B) measured based on the fuel content of B20
when operating the model on B20, which is deemed to
contain 0.15 gallon of fuel.''.
SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING
PROCEDURES.
Beginning in December, 2009, and not less often than every 5 years
thereafter, the Administrator of the Environmental Protection Agency,
in consultation with the Secretary of Transportation, shall--
(1) reevaluate the fuel economy labeling procedures
described in the final rule published in the Federal Register
on December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86
and 600) to determine whether changes in the factors used to
establish the labeling procedures warrant a revision of that
process; and
(2) submit a report to the Committee on Commerce, Science,
and Transportation of the Senate and the Committee on Energy
and Commerce of the House of Representatives that describes the
results of the reevaluation process.
SEC. 111. CONSUMER TIRE INFORMATION.
(a) In General.--Chapter 323 of title 49, United States Code, is
amended by inserting after section 32304 the following:
``Sec. 32304A. Consumer tire information
``(a) Rulemaking.--
``(1) In general.--Not later than 24 months after the date
of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary
of Transportation shall, after notice and opportunity for
comment, promulgate rules establishing a national tire fuel
efficiency consumer information program for replacement tires
designed for use on motor vehicles to educate consumers about
the effect of tires on automobile fuel efficiency, safety, and
durability.
``(2) Items included in rule.--The rulemaking shall
include--
``(A) a national tire fuel efficiency rating system
for motor vehicle replacement tires to assist consumers
in making more educated tire purchasing decisions;
``(B) requirements for providing information to
consumers, including information at the point of sale
and other potential information dissemination methods,
including the Internet;
``(C) specifications for test methods for
manufacturers to use in assessing and rating tires to
avoid variation among test equipment and manufacturers;
and
``(D) a national tire maintenance consumer
education program including, information on tire
inflation pressure, alignment, rotation, and tread wear
to maximize fuel efficiency, safety, and durability of
replacement tires.
``(3) Applicability.--This section shall apply only to
replacement tires covered under section 575.104(c) of title 49,
Code of Federal Regulations, in effect on the date of the
enactment of the Ten-in-Ten Fuel Economy Act.
``(b) Consultation.--The Secretary shall consult with the Secretary
of Energy and the Administrator of the Environmental Protection Agency
on the means of conveying tire fuel efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct periodic
assessments of the rules promulgated under this section to determine
the utility of such rules to consumers, the level of cooperation by
industry, and the contribution to national goals pertaining to energy
consumption. The Secretary shall transmit periodic reports detailing
the findings of such assessments to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee
on Energy and Commerce.
``(d) Tire Marking.--The Secretary shall not require permanent
labeling of any kind on a tire for the purpose of tire fuel efficiency
information.
``(e) Application With State and Local Laws and Regulations.--
Nothing in this section prohibits a State or political subdivision
thereof from enforcing a law or regulation on tire fuel efficiency
consumer information that was in effect on January 1, 2006. After a
requirement promulgated under this section is in effect, a State or
political subdivision thereof may adopt or enforce a law or regulation
on tire fuel efficiency consumer information enacted or promulgated
after January 1, 2006, if the requirements of that law or regulation
are identical to the requirement promulgated under this section.
Nothing in this section shall be construed to preempt a State or
political subdivision thereof from regulating the fuel efficiency of
tires (including establishing testing methods for determining
compliance with such standards) not otherwise preempted under this
chapter.''.
(b) Enforcement.--Section 32308 of title 49, United States Code, is
amended--
(1) by redesignating subsections (c) and (d) as subsections
(d)and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Section 32304A.--Any person who fails to comply with the
national tire fuel efficiency information program under section 32304A
is liable to the United States Government for a civil penalty of not
more than $50,000 for each violation.''.
(c) Conforming Amendment.--The chapter analysis for chapter 323 of
title 49, United States Code, is amended by inserting after the item
relating to section 32304 the following:
``32304A. Consumer tire information''.
SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended by adding
at the end the following:
``(e) Use of Civil Penalties.--For fiscal year 2008 and each fiscal
year thereafter, from the total amount deposited in the general fund of
the Treasury during the preceding fiscal year from fines, penalties,
and other funds obtained through enforcement actions conducted pursuant
to this section (including funds obtained under consent decrees), the
Secretary of the Treasury, subject to the availability of
appropriations, shall--
``(1) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter, which
shall be used by the Secretary to support rulemaking under this
chapter; and
``(2) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter, which
shall be used by the Secretary to carry out a program to make
grants to manufacturers for retooling, reequipping, or
expanding existing manufacturing facilities in the United
States to produce advanced technology vehicles and
components.''.
SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.
(a) Repeal.--Paragraphs (6), (7), and (8) of section 32904(b) of
title 49, United States Code, are repealed.
(b) Effect of Repeal on Existing Exemptions.--Any exemption granted
under section 32904(b)(6) of title 49, United States Code, prior to the
date of the enactment of this Act shall remain in effect subject to its
terms through model year 2013.
(c) Accrual and Use of Credits.--Any manufacturer holding an
exemption under section 32904(b)(6) of title 49, United States Code,
prior to the date of the enactment of this Act may accrue and use
credits under sections 32903 and 32905 of such title begining with
model year 2011.
Subtitle B--Improved Vehicle Technology
SEC. 131. TRANSPORTATION ELECTRIFICATION.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Battery.--The term ``battery'' means an electrochemical
energy storage system powered directly by electrical current.
(3) Electric transportation technology.--The term
``electric transportation technology'' means--
(A) technology used in vehicles that use an
electric motor for all or part of the motive power of
the vehicles, including battery electric, hybrid
electric, plug-in hybrid electric, fuel cell, and plug-
in fuel cell vehicles, or rail transportation; or
(B) equipment relating to transportation or mobile
sources of air pollution that use an electric motor to
replace an internal combustion engine for all or part
of the work of the equipment, including--
(i) corded electric equipment linked to
transportation or mobile sources of air
pollution; and
(ii) electrification technologies at
airports, ports, truck stops, and material-
handling facilities.
(4) Nonroad vehicle.--The term ``nonroad vehicle'' means a
vehicle--
(A) powered--
(i) by a nonroad engine, as that term is
defined in section 216 of the Clean Air Act (42
U.S.C. 7550); or
(ii) fully or partially by an electric
motor powered by a fuel cell, a battery, or an
off-board source of electricity; and
(B) that is not a motor vehicle or a vehicle used
solely for competition.
(5) Plug-in electric drive vehicle.--The term ``plug-in
electric drive vehicle'' means a vehicle that--
(A) draws motive power from a battery with a
capacity of at least 4 kilowatt-hours;
(B) can be recharged from an external source of
electricity for motive power; and
(C) is a light-, medium-, or heavy-duty motor
vehicle or nonroad vehicle (as those terms are defined
in section 216 of the Clean Air Act (42 U.S.C. 7550)).
(6) Qualified electric transportation project.--The term
``qualified electric transportation project'' means an electric
transportation technology project that would significantly
reduce emissions of criteria pollutants, greenhouse gas
emissions, and petroleum, including--
(A) shipside or shoreside electrification for
vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
(D) battery powered auxiliary power units for
trucks;
(E) electric airport ground support equipment;
(F) electric material and cargo handling equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to supply
electricity to the project; and
(I) any ancillary infrastructure, including panel
upgrades, battery chargers, in-situ transformers, and
trenching.
(b) Plug-in Electric Drive Vehicle Program.--
(1) Establishment.--The Secretary shall establish a
competitive program to provide grants on a cost-shared basis to
State governments, local governments, metropolitan
transportation authorities, air pollution control districts,
private or nonprofit entities, or combinations of those
governments, authorities, districts, and entities, to carry out
1 or more projects to encourage the use of plug-in electric
drive vehicles or other emerging electric vehicle technologies,
as determined by the Secretary.
(2) Administration.--The Secretary shall, in consultation
with the Secretary of Transportation and the Administrator,
establish requirements for applications for grants under this
section, including reporting of data to be summarized for
dissemination to grantees and the public, including safety,
vehicle, and component performance, and vehicle and component
life cycle costs.
(3) Priority.--In making awards under this subsection, the
Secretary shall--
(A) give priority consideration to applications
that--
(i) encourage early widespread use of
vehicles described in paragraph (1); and
(ii) are likely to make a significant
contribution to the advancement of the
production of the vehicles in the United
States; and
(B) ensure, to the maximum extent practicable, that
the program established under this subsection includes
a variety of applications, manufacturers, and end-uses.
(4) Reporting.--The Secretary shall require a grant
recipient under this subsection to submit to the Secretary, on
an annual basis, data relating to safety, vehicle performance,
life cycle costs, and emissions of vehicles demonstrated under
the grant, including emissions of greenhouse gases.
(5) Cost sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a grant made under this
subsection.
(6) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $90,000,000 for
each of fiscal years 2008 through 2012, of which not less than
\1/3\ of the total amount appropriated shall be available each
fiscal year to make grants to local and municipal governments.
(c) Near-Term Transportation Sector Electrification Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with the
Secretary of Transportation and the Administrator, shall
establish a program to provide grants for the conduct of
qualified electric transportation projects.
(2) Priority.--In providing grants under this subsection,
the Secretary shall give priority to large-scale projects and
large-scale aggregators of projects.
(3) Cost sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a grant made under this
subsection.
(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $95,000,000 for
each of fiscal years 2008 through 2013.
(d) Education Program.--
(1) In general.--The Secretary shall develop a nationwide
electric drive transportation technology education program
under which the Secretary shall provide--
(A) teaching materials to secondary schools and
high schools; and
(B) assistance for programs relating to electric
drive system and component engineering to institutions
of higher education.
(2) Electric vehicle competition.--The program established
under paragraph (1) shall include a plug-in hybrid electric
vehicle competition for institutions of higher education, which
shall be known as the ``Dr. Andrew Frank Plug-In Electric
Vehicle Competition''.
(3) Engineers.--In carrying out the program established
under paragraph (1), the Secretary shall provide financial
assistance to institutions of higher education to create new,
or support existing, degree programs to ensure the availability
of trained electrical and mechanical engineers with the skills
necessary for the advancement of--
(A) plug-in electric drive vehicles; and
(B) other forms of electric drive transportation
technology vehicles.
(4) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.
SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is
amended to read as follows:
``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
``(a) Program.--
``(1) In general.--The Secretary shall establish a program
to encourage domestic production and sales of efficient hybrid
and advanced diesel vehicles and components of those vehicles.
``(2) Inclusions.--The program shall include grants to
automobile manufacturers and suppliers and hybrid component
manufacturers to encourage domestic production of efficient
hybrid, plug-in electric hybrid, plug-in electric drive, and
advanced diesel vehicles.
``(3) Priority.--Priority shall be given to the
refurbishment or retooling of manufacturing facilities that
have recently ceased operation or will cease operation in the
near future.
``(b) Coordination With State and Local Programs.--The Secretary
may coordinate implementation of this section with State and local
programs designed to accomplish similar goals, including the retention
and retraining of skilled workers from the manufacturing facilities,
including by establishing matching grant arrangements.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section.''.
SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is
amended--
(1) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the following:
``(a) Definitions.--In this section:
``(1) Fuel cell electric vehicle.--The term `fuel cell
electric vehicle' means an on-road or nonroad vehicle that uses
a fuel cell (as defined in section 803 of the Spark M.
Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).
``(2) Hybrid electric vehicle.--The term `hybrid electric
vehicle' means a new qualified hybrid motor vehicle (as defined
in section 30B(d)(3) of the Internal Revenue Code of 1986).
``(3) Medium- or heavy-duty electric vehicle.--The term
`medium- or heavy-duty electric vehicle' means an electric,
hybrid electric, or plug-in hybrid electric vehicle with a
gross vehicle weight of more than 8,501 pounds.
``(4) Neighborhood electric vehicle.--The term
`neighborhood electric vehicle' means a 4-wheeled on-road or
nonroad vehicle that--
``(A) has a top attainable speed in 1 mile of more
than 20 mph and not more than 25 mph on a paved level
surface; and
``(B) is propelled by an electric motor and on-
board, rechargeable energy storage system that is
rechargeable using an off-board source of electricity.
``(5) Plug-in electric drive vehicle.--The term `plug-in
electric drive vehicle' means a vehicle that--
``(A) draws motive power from a battery with a
capacity of at least 4 kilowatt-hours;
``(B) can be recharged from an external source of
electricity for motive power; and
``(C) is a light-, medium-, or heavy duty motor
vehicle or nonroad vehicle (as those terms are defined
in section 216 of the Clean Air Act (42 U.S.C.
7550).'';
(3) in subsection (b) (as redesignated by paragraph (1))--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) Allocation.--The Secretary''; and
(B) by adding at the end the following:
``(2) Electric vehicles.--Not later than January 31, 2009,
the Secretary shall--
``(A) allocate credit in an amount to be determined
by the Secretary for--
``(i) acquisition of--
``(I) a hybrid electric vehicle;
``(II) a plug-in electric drive
vehicle;
``(III) a fuel cell electric
vehicle;
``(IV) a neighborhood electric
vehicle; or
``(V) a medium- or heavy-duty
electric vehicle; and
``(ii) investment in qualified alternative
fuel infrastructure or nonroad equipment, as
determined by the Secretary; and
``(B) allocate more than 1, but not to exceed 5,
credits for investment in an emerging technology
relating to any vehicle described in subparagraph (A)
to encourage--
``(i) a reduction in petroleum demand;
``(ii) technological advancement; and
``(iii) a reduction in vehicle
emissions.'';
(4) in subsection (c) (as redesignated by paragraph (1)),
by striking ``subsection (a)'' and inserting ``subsection
(b)''; and
(5) by adding at the end the following:
``(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2013.''.
SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS
MANUFACTURERS.
(a) In General.--Section 712(a)(2) of the Energy Policy Act of 2005
(42 U.S.C. 16062(a)(2)) (as amended by section 132) is amended by
inserting ``and loan guarantees under section 1703'' after ``grants''.
(b) Conforming Amendment.--Section 1703(b) of the Energy Policy Act
of 2005 (42 U.S.C. 16513(b)) is amended by striking paragraph (8) and
inserting the following:
``(8) Production facilities for the manufacture of fuel
efficient vehicles or parts of those vehicles, including
electric drive vehicles and advanced diesel vehicles.''.
SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.
(a) Establishment of Program.--The Secretary shall establish a
program to provide guarantees of loans by private institutions for the
construction of facilities for the manufacture of advanced vehicle
batteries and battery systems that are developed and produced in the
United States, including advanced lithium ion batteries and hybrid
electrical system and component manufacturers and software designers.
(b) Requirements.--The Secretary may provide a loan guarantee under
subsection (a) to an applicant if--
(1) without a loan guarantee, credit is not available to
the applicant under reasonable terms or conditions sufficient
to finance the construction of a facility described in
subsection (a);
(2) the prospective earning power of the applicant and the
character and value of the security pledged provide a
reasonable assurance of repayment of the loan to be guaranteed
in accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the
Secretary to be reasonable, taking into account the current
average yield on outstanding obligations of the United States
with remaining periods of maturity comparable to the maturity
of the loan.
(c) Criteria.--In selecting recipients of loan guarantees from
among applicants, the Secretary shall give preference to proposals
that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest
need for the facility.
(d) Maturity.--A loan guaranteed under subsection (a) shall have a
maturity of not more than 20 years.
(e) Terms and Conditions.--The loan agreement for a loan guaranteed
under subsection (a) shall provide that no provision of the loan
agreement may be amended or waived without the consent of the
Secretary.
(f) Assurance of Repayment.--The Secretary shall require that an
applicant for a loan guarantee under subsection (a) provide an
assurance of repayment in the form of a performance bond, insurance,
collateral, or other means acceptable to the Secretary in an amount
equal to not less than 20 percent of the amount of the loan.
(g) Guarantee Fee.--The recipient of a loan guarantee under
subsection (a) shall pay the Secretary an amount determined by the
Secretary to be sufficient to cover the administrative costs of the
Secretary relating to the loan guarantee.
(h) Full Faith and Credit.--The full faith and credit of the United
States is pledged to the payment of all guarantees made under this
section. Any such guarantee made by the Secretary shall be conclusive
evidence of the eligibility of the loan for the guarantee with respect
to principal and interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed loan.
(i) Reports.--Until each guaranteed loan under this section has
been repaid in full, the Secretary shall annually submit to Congress a
report on the activities of the Secretary under this section.
(j) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
(k) Termination of Authority.--The authority of the Secretary to
issue a loan guarantee under subsection (a) terminates on the date that
is 10 years after the date of enactment of this Act.
SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) Advanced technology vehicle.--The term ``advanced
technology vehicle'' means a light duty vehicle that meets--
(A) the Bin 5 Tier II emission standard established
in regulations issued by the Administrator of the
Environmental Protection Agency under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i)), or a lower-
numbered Bin emission standard;
(B) any new emission standard in effect for fine
particulate matter prescribed by the Administrator
under that Act (42 U.S.C. 7401 et seq.); and
(C) at least 125 percent of the average base year
combined fuel economy for vehicles with substantially
similar attributes.
(2) Combined fuel economy.--The term ``combined fuel
economy'' means--
(A) the combined city/highway miles per gallon
values, as reported in accordance with section 32904 of
title 49, United States Code; and
(B) in the case of an electric drive vehicle with
the ability to recharge from an off-board source, the
reported mileage, as determined in a manner consistent
with the Society of Automotive Engineers recommended
practice for that configuration or a similar practice
recommended by the Secretary.
(3) Engineering integration costs.--The term ``engineering
integration costs'' includes the cost of engineering tasks
relating to--
(A) incorporating qualifying components into the
design of advanced technology vehicles; and
(B) designing tooling and equipment and developing
manufacturing processes and material suppliers for
production facilities that produce qualifying
components or advanced technology vehicles.
(4) Qualifying components.--The term ``qualifying
components'' means components that the Secretary determines to
be--
(A) designed for advanced technology vehicles; and
(B) installed for the purpose of meeting the
performance requirements of advanced technology
vehicles.
(b) Advanced Vehicles Manufacturing Facility.--The Secretary shall
provide facility funding awards under this section to automobile
manufacturers and component suppliers to pay not more than 30 percent
of the cost of--
(1) reequipping, expanding, or establishing a manufacturing
facility in the United States to produce--
(A) qualifying advanced technology vehicles; or
(B) qualifying components; and
(2) engineering integration performed in the United States
of qualifying vehicles and qualifying components.
(c) Period of Availability.--An award under subsection (b) shall
apply to--
(1) facilities and equipment placed in service before
December 30, 2020; and
(2) engineering integration costs incurred during the
period beginning on the date of enactment of this Act and
ending on December 30, 2020.
(d) Direct Loan Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and subject to the availability of
appropriated funds, the Secretary shall carry out a program to
provide a total of not more than $25,000,000,000 in loans to
eligible individuals and entities (as determined by the
Secretary) for the costs of activities described in subsection
(b).
(2) Application.--An applicant for a loan under this
subsection shall submit to the Secretary an application at such
time, in such manner, and containing such information as the
Secretary may require, including a written assurance that--
(A) all laborers and mechanics employed by
contractors or subcontractors during construction,
alteration, or repair that is financed, in whole or in
part, by a loan under this section shall be paid wages
at rates not less than those prevailing on similar
construction in the locality, as determined by the
Secretary of Labor in accordance with sections 3141-
3144, 3146, and 3147 of title 40, United States Code;
and
(B) the Secretary of Labor shall, with respect to
the labor standards described in this paragraph, have
the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (5 U.S.C. App.) and section
3145 of title 40, United States Code.
(3) Selection of eligible projects.--The Secretary shall
select eligible projects to receive loans under this subsection
in cases in which, as determined by the Secretary, the award
recipient--
(A) is financially viable without the receipt of
additional Federal funding associated with the proposed
project;
(B) will provide sufficient information to the
Secretary for the Secretary to ensure that the
qualified investment is expended efficiently and
effectively; and
(C) has met such other criteria as may be
established and published by the Secretary.
(4) Rates, terms, and repayment of loans.--A loan provided
under this subsection--
(A) shall have an interest rate that, as of the
date on which the loan is made, is equal to the cost of
funds to the Department of the Treasury for obligations
of comparable maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the
eligible project to be carried out using funds
from the loan, as determined by the Secretary;
and
(ii) 25 years;
(C) may be subject to a deferral in repayment for
not more than 5 years after the date on which the
eligible project carried out using funds from the loan
first begins operations, as determined by the
Secretary; and
(D) shall be made by the Federal Financing Bank.
(e) Improvement.--The Secretary shall issue regulations that
require that, in order for an automobile manufacturer to be eligible
for an award or loan under this section during a particular year, the
adjusted average fuel economy of the manufacturer for light duty
vehicles produced by the manufacturer during the most recent year for
which data are available shall be not less than the average fuel
economy for all light duty vehicles of the manufacturer for model year
2005. In order to determine fuel economy baselines for eligibility of a
new manufacturer or a manufacturer that has not produced previously
produced equivalent vehicles, the Secretary may substitute industry
averages.
(f) Fees.--Administrative costs shall be no more than $100,000 or
10 basis point of the loan.
(g) Priority.--The Secretary shall, in making awards or loans to
those manufacturers that have existing facilities, give priority to
those facilities that are oldest or have been in existence for at least
20 years. Such facilities can currently be sitting idle.
(h) Set Aside for Small Automobile Manufacturers and Component
Suppliers.--
(1) Definition of covered firm.--In this subsection, the
term ``covered firm'' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures automobiles or components of
automobiles.
(2) Set aside.--Of the amount of funds that are used to
provide awards for each fiscal year under subsection (b), the
Secretary shall use not less than 10 percent to provide awards
to covered firms or consortia led by a covered firm.
(i) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.
Subtitle C--Federal Vehicle Fleets
SEC. 141. FEDERAL VEHICLE FLEETS.
Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is
amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Vehicle Emission Requirements.--
``(1) Definitions.--In this subsection:
``(A) Federal agency.--The term `Federal agency'
does not include any office of the legislative branch,
except that it does include the House of
Representatives with respect to an acquisition
described in paragraph (2)(C).
``(B) Medium duty passenger vehicle.--The term
`medium duty passenger vehicle' has the meaning given
that term section 523.2 of title 49 of the Code of
Federal Regulations, as in effect on the date of
enactment of this paragraph.
``(C) Member's representational allowance.--The
term `Member's Representational Allowance' means the
allowance described in section 101(a) of the House of
Representatives Administrative Reform Technical
Corrections Act (2 U.S.C. 57b(a)).
``(2) Prohibition.--
``(A) In general.--Except as provided in
subparagraph (B), no Federal agency shall acquire a
light duty motor vehicle or medium duty passenger
vehicle that is not a low greenhouse gas emitting
vehicle.
``(B) Exception.--The prohibition in subparagraph
(A) shall not apply to acquisition of a vehicle if the
head of the agency certifies in writing, in a separate
certification for each individual vehicle purchased,
either--
``(i) that no low greenhouse gas emitting
vehicle is available to meet the functional
needs of the agency and details in writing the
functional needs that could not be met with a
low greenhouse gas emitting vehicle; or
``(ii) that the agency has taken specific
alternative more cost-effective measures to
reduce petroleum consumption that--
``(I) have reduced a measured and
verified quantity of greenhouse gas
emissions equal to or greater than the
quantity of greenhouse gas reductions
that would have been achieved through
acquisition of a low greenhouse gas
emitting vehicle over the lifetime of
the vehicle; or
``(II) will reduce each year a
measured and verified quantity of
greenhouse gas emissions equal to or
greater than the quantity of greenhouse
gas reductions that would have been
achieved each year through acquisition
of a low greenhouse gas emitting
vehicle.
``(C) Special rule for vehicles provided by funds
contained in members' representational allowance.--This
paragraph shall apply to the acquisition of a light
duty motor vehicle or medium duty passenger vehicle
using any portion of a Member's Representational
Allowance, including an acquisition under a long-term
lease.
``(3) Guidance.--
``(A) In general.--Each year, the Administrator of
the Environmental Protection Agency shall issue
guidance identifying the makes and model numbers of
vehicles that are low greenhouse gas emitting vehicles.
``(B) Consideration.--In identifying vehicles under
subparagraph (A), the Administrator shall take into
account the most stringent standards for vehicle
greenhouse gas emissions applicable to and enforceable
against motor vehicle manufacturers for vehicles sold
anywhere in the United States.
``(C) Requirement.--The Administrator shall not
identify any vehicle as a low greenhouse gas emitting
vehicle if the vehicle emits greenhouse gases at a
higher rate than such standards allow for the
manufacturer's fleet average grams per mile of carbon
dioxide-equivalent emissions for that class of vehicle,
taking into account any emissions allowances and
adjustment factors such standards provide.''.
SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.
Part J of title III of the Energy Policy and Conservation Act (42
U.S.C. 6374 et seq.) is amended by adding at the end the following:
``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.
``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In general.--Not later than 18 months after the date
of enactment of this section, the Secretary shall issue
regulations for Federal fleets subject to section 400AA to
require that, beginning in fiscal year 2010, each Federal
agency shall reduce petroleum consumption and increase
alternative fuel consumption each year by an amount necessary
to meet the goals described in paragraph (2).
``(2) Goals.--The goals of the requirements under paragraph
(1) are that not later than October 1, 2015, and for each year
thereafter, each Federal agency shall achieve at least a 20
percent reduction in annual petroleum consumption and a 10
percent increase in annual alternative fuel consumption, as
calculated from the baseline established by the Secretary for
fiscal year 2005.
``(3) Milestones.--The Secretary shall include in the
regulations described in paragraph (1)--
``(A) interim numeric milestones to assess annual
agency progress towards accomplishing the goals
described in that paragraph; and
``(B) a requirement that agencies annually report
on progress towards meeting each of the milestones and
the 2015 goals.
``(b) Plan.--
``(1) Requirement.--
``(A) In general.--The regulations under subsection
(a) shall require each Federal agency to develop a
plan, and implement the measures specified in the plan
by dates specified in the plan, to meet the required
petroleum reduction levels and the alternative fuel
consumption increases, including the milestones
specified by the Secretary.
``(B) Inclusions.--The plan shall--
``(i) identify the specific measures the
agency will use to meet the requirements of
subsection (a)(2); and
``(ii) quantify the reductions in petroleum
consumption or increases in alternative fuel
consumption projected to be achieved by each
measure each year.
``(2) Measures.--The plan may allow an agency to meet the
required petroleum reduction level through--
``(A) the use of alternative fuels;
``(B) the acquisition of vehicles with higher fuel
economy, including hybrid vehicles, neighborhood
electric vehicles, electric vehicles, and plug-in
hybrid vehicles if the vehicles are commercially
available;
``(C) the substitution of cars for light trucks;
``(D) an increase in vehicle load factors;
``(E) a decrease in vehicle miles traveled;
``(F) a decrease in fleet size; and
``(G) other measures.''.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
SEC. 201. DEFINITIONS.
Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is
amended to read as follows:
``(1) Definitions.--In this section:
``(A) Additional renewable fuel.--The term
`additional renewable fuel' means fuel that is produced
from renewable biomass and that is used to replace or
reduce the quantity of fossil fuel present in home
heating oil or jet fuel.
``(B) Advanced biofuel.--
``(i) In general.--The term `advanced
biofuel' means renewable fuel, other than
ethanol derived from corn starch, that has
lifecycle greenhouse gas emissions, as
determined by the Administrator, after notice
and opportunity for comment, that are at least
50 percent less than baseline lifecycle
greenhouse gas emissions.
``(ii) Inclusions.--The types of fuels
eligible for consideration as `advanced
biofuel' may include any of the following:
``(I) Ethanol derived from
cellulose, hemicellulose, or lignin.
``(II) Ethanol derived from sugar
or starch (other than corn starch).
``(III) Ethanol derived from waste
material, including crop residue, other
vegetative waste material, animal
waste, and food waste and yard waste.
``(IV) Biomass-based diesel.
``(V) Biogas (including landfill
gas and sewage waste treatment gas)
produced through the conversion of
organic matter from renewable biomass.
``(VI) Butanol or other alcohols
produced through the conversion of
organic matter from renewable biomass.
``(VII) Other fuel derived from
cellulosic biomass.
``(C) Baseline lifecycle greenhouse gas
emissions.--The term `baseline lifecycle greenhouse gas
emissions' means the average lifecycle greenhouse gas
emissions, as determined by the Administrator, after
notice and opportunity for comment, for gasoline or
diesel (whichever is being replaced by the renewable
fuel) sold or distributed as transportation fuel in
2005.
``(D) Biomass-based diesel.--The term `biomass-
based diesel' means renewable fuel that is biodiesel as
defined in section 312(f) of the Energy Policy Act of
1992 (42 U.S.C. 13220(f)) and that has lifecycle
greenhouse gas emissions, as determined by the
Administrator, after notice and opportunity for
comment, that are at least 50 percent less than the
baseline lifecycle greenhouse gas emissions.
Notwithstanding the preceding sentence, renewable fuel
derived from co-processing biomass with a petroleum
feedstock shall be advanced biofuel if it meets the
requirements of subparagraph (B), but is not biomass-
based diesel.
``(E) Cellulosic biofuel.--The term `cellulosic
biofuel' means renewable fuel derived from any
cellulose, hemicellulose, or lignin that is derived
from renewable biomass and that has lifecycle
greenhouse gas emissions, as determined by the
Administrator, that are at least 60 percent less than
the baseline lifecycle greenhouse gas emissions.
``(F) Conventional biofuel.--The term `conventional
biofuel' means renewable fuel that is ethanol derived
from corn starch.
``(G) Greenhouse gas.--The term `greenhouse gas'
means carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, sulfur hexafluoride.
The Administrator may include any other
anthropogenically-emitted gas that is determined by the
Administrator, after notice and comment, to contribute
to global warming.
``(H) Lifecycle greenhouse gas emissions.--The term
`lifecycle greenhouse gas emissions' means the
aggregate quantity of greenhouse gas emissions
(including direct emissions and significant indirect
emissions such as significant emissions from land use
changes), as determined by the Administrator, related
to the full fuel lifecycle, including all stages of
fuel and feedstock production and distribution, from
feedstock generation or extraction through the
distribution and delivery and use of the finished fuel
to the ultimate consumer, where the mass values for all
greenhouse gases are adjusted to account for their
relative global warming potential.
``(I) Renewable biomass.--The term `renewable
biomass' means each of the following:
``(i) Planted crops and crop residue
harvested from agricultural land cleared or
cultivated at any time prior to the enactment
of this sentence that is either actively
managed or fallow, and nonforested.
``(ii) Planted trees and tree residue from
actively managed tree plantations on non-
federal land cleared at any time prior to
enactment of this sentence, including land
belonging to an Indian tribe or an Indian
individual, that is held in trust by the United
States or subject to a restriction against
alienation imposed by the United States.
``(iii) Animal waste material and animal
byproducts.
``(iv) Slash and pre-commercial thinnings
that are from non-federal forestlands,
including forestlands belonging to an Indian
tribe or an Indian individual, that are held in
trust by the United States or subject to a
restriction against alienation imposed by the
United States, but not forests or forestlands
that are ecological communities with a global
or State ranking of critically imperiled,
imperiled, or rare pursuant to a State Natural
Heritage Program, old growth forest, or late
successional forest.
``(v) Biomass obtained from the immediate
vicinity of buildings and other areas regularly
occupied by people, or of public
infrastructure, at risk from wildfire.
``(vi) Algae.
``(vii) Separated yard waste or food waste,
including recycled cooking and trap grease.
``(J) Renewable fuel.--The term `renewable fuel'
means fuel that is produced from renewable biomass and
that is used to replace or reduce the quantity of
fossil fuel present in a transportation fuel.
``(K) Small refinery.--The term `small refinery'
means a refinery for which the average aggregate daily
crude oil throughput for a calendar year (as determined
by dividing the aggregate throughput for the calendar
year by the number of days in the calendar year) does
not exceed 75,000 barrels.
``(L) Transportation fuel.--The term
`transportation fuel' means fuel for use in motor
vehicles, motor vehicle engines, nonroad vehicles, or
nonroad engines (except for ocean-going vessels).''.
SEC. 202. RENEWABLE FUEL STANDARD.
(a) Renewable Fuel Program.--Paragraph (2) of section 211(o) (42
U.S.C. 7545(o)(2)) of the Clean Air Act is amended as follows:
(1) Regulations.--Clause (i) of subparagraph (A) is amended
by adding the following at the end thereof: ``Not later than 1
year after the date of enactment of this sentence, the
Administrator shall revise the regulations under this paragraph
to ensure that transportation fuel sold or introduced into
commerce in the United States (except in noncontiguous States
or territories), on an annual average basis, contains at least
the applicable volume of renewable fuel, advanced biofuel,
cellulosic biofuel, and biomass-based diesel, determined in
accordance with subparagraph (B) and, in the case of any such
renewable fuel produced from new facilities that commence
construction after the date of enactment of this sentence,
achieves at least a 20 percent reduction in lifecycle
greenhouse gas emissions compared to baseline lifecycle
greenhouse gas emissions.''.
(2) Applicable volumes of renewable fuel.--Subparagraph (B)
is amended to read as follows:
``(B) Applicable volumes.--
``(i) Calendar years after 2005.--
``(I) Renewable fuel.--For the
purpose of subparagraph (A), the
applicable volume of renewable fuel for
the calendar years 2006 through 2022
shall be determined in accordance with
the following table:
Applicable volume of renewable fuel
``Calendar year: (in billions of gallons):
2006................................................... 4.0
2007................................................... 4.7
2008................................................... 9.0
2009................................................... 11.1
2010................................................... 12.95
2011................................................... 13.95
2012................................................... 15.2
2013................................................... 16.55
2014................................................... 18.15
2015................................................... 20.5
2016................................................... 22.25
2017................................................... 24.0
2018................................................... 26.0
2019................................................... 28.0
2020................................................... 30.0
2021................................................... 33.0
2022................................................... 36.0
``(II) Advanced biofuel.--For the
purpose of subparagraph (A), of the
volume of renewable fuel required under
subclause (I), the applicable volume of
advanced biofuel for the calendar years
2009 through 2022 shall be determined
in accordance with the following table:
Applicable volume of advanced
biofuel
``Calendar year: (in billions of gallons):
2009................................................... 0.6
2010................................................... 0.95
2011................................................... 1.35
2012................................................... 2.0
2013................................................... 2.75
2014................................................... 3.75
2015................................................... 5.5
2016................................................... 7.25
2017................................................... 9.0
2018................................................... 11.0
2019................................................... 13.0
2020................................................... 15.0
2021................................................... 18.0
2022................................................... 21.0
``(III) Cellulosic biofuel.--For
the purpose of subparagraph (A), of the
volume of advanced biofuel required
under subclause (II), the applicable
volume of cellulosic biofuel for the
calendar years 2010 through 2022 shall
be determined in accordance with the
following table:
Applicable volume of cellulosic
biofuel
``Calendar year: (in billions of gallons):
2010................................................... 0.1
2011................................................... 0.25
2012................................................... 0.5
2013................................................... 1.0
2014................................................... 1.75
2015................................................... 3.0
2016................................................... 4.25
2017................................................... 5.5
2018................................................... 7.0
2019................................................... 8.5
2020................................................... 10.5
2021................................................... 13.5
2022................................................... 16.0
``(IV) Biomass-based diesel.--For
the purpose of subparagraph (A), of the
volume of advanced biofuel required
under subclause (II), the applicable
volume of biomass-based diesel for the
calendar years 2009 through 2012 shall
be determined in accordance with the
following table:
Applicable volume of biomass-based
diesel
``Calendar year: (in billions of gallons):
2009................................................... 0.5
2010................................................... 0.65
2011................................................... 0.80
2012................................................... 1.0
``(ii) Other calendar years.--For the
purposes of subparagraph (A), the applicable
volumes of each fuel specified in the tables in
clause (i) for calendar years after the
calendar years specified in the tables shall be
determined by the Administrator, in
coordination with the Secretary of Energy and
the Secretary of Agriculture, based on a review
of the implementation of the program during
calendar years specified in the tables, and an
analysis of--
``(I) the impact of the production
and use of renewable fuels on the
environment, including on air quality,
climate change, conversion of wet
lands, eco-systems, wildlife habitat,
water quality, and water supply;
``(II) the impact of renewable
fuels on the energy security of the
United States;
``(III) the expected annual rate of
future commercial production of
renewable fuels, including advanced
biofuels in each category (cellulosic
biofuel and biomass-based diesel);
``(IV) the impact of renewable
fuels on the infrastructure of the
United States, including deliverability
of materials, goods, and products other
than renewable fuel, and the
sufficiency of infrastructure to
deliver and use renewable fuel;
``(V) the impact of the use of
renewable fuels on the cost to
consumers of transportation fuel and on
the cost to transport goods; and
``(VI) the impact of the use of
renewable fuels on other factors,
including job creation, the price and
supply of agricultural commodities,
rural economic development, and food
prices.
The Administrator shall promulgate rules
establishing the applicable volumes under this
clause no later than 14 months before the first
year for which such applicable volume will
apply.
``(iii) Applicable volume of advanced
biofuel.--For the purpose of making the
determinations in clause (ii), for each
calendar year, the applicable volume of
advanced biofuel shall be at least the same
percentage of the applicable volume of
renewable fuel as in calendar year 2022.
``(iv) Applicable volume of cellulosic
biofuel.--For the purpose of making the
determinations in clause (ii), for each
calendar year, the applicable volume of
cellulosic biofuel established by the
Administrator shall be based on the assumption
that the Administrator will not need to issue a
waiver for such years under paragraph (7)(D).
``(v) Minimum applicable volume of biomass-
based diesel.--For the purpose of making the
determinations in clause (ii), the applicable
volume of biomass-based diesel shall not be
less than the applicable volume listed in
clause (i)(IV) for calendar year 2012.''.
(b) Applicable Percentages.--Paragraph (3) of section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as follows:
(1) In subparagraph (A), by striking ``2011'' and inserting
``2021.''.
(2) In subparagraph (A), by striking ``gasoline'' and
inserting ``transportation fuel, biomass-based diesel, and
cellulosic biofuel''.
(3) In subparagraph (B), by striking ``2012'' and inserting
``2021'' in clause (ii)(I).
(4) In subparagraph (B), by striking gasoline'' and
inserting ``transportation fuel'' in clause (ii)(II).
(c) Modification of Greenhouse Gas Percentages.--Paragraph (4) of
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(4)) is amended
to read as follows:
``(4) Modification of greenhouse gas reduction
percentages.--
``(A) In general.--The Administrator may, in the
regulations under the last sentence of paragraph
(2)(A)(i), adjust the 20 percent, 50 percent, and 60
percent reductions in lifecycle greenhouse gas
emissions specified in paragraphs (2)(A)(i)(relating to
renewable fuel), (1)(D) (relating to biomass-based
diesel), (1)(B)(i)(relating to advanced biofuel), and
(1)(E) (relating to cellulosic biofuel) to a lower
percentage. For the 50 and 60 percent reductions, the
Administrator may make such an adjustment only if he
determines that generally such reduction is not
commercially feasible for fuels made using a variety of
feedstocks, technologies, and processes to meet the
applicable reduction.
``(B) Amount of adjustment.--In promulgating
regulations under this paragraph, the specified 50
percent reduction in greenhouse gas emissions from
advanced biofuel and in biomass-based diesel may not be
reduced below 40 percent. The specified 20 percent
reduction in greenhouse gas emissions from renewable
fuel may not be reduced below 10 percent, and the
specified 60 percent reduction in greenhouse gas
emissions from cellulosic biofuel may not be reduced
below 50 percent.
``(C) Adjusted reduction levels.--An adjustment
under this paragraph to a percent less than the
specified 20 percent greenhouse gas reduction for
renewable fuel shall be the minimum possible
adjustment, and the adjusted greenhouse gas reduction
shall be established by the Administrator at the
maximum achievable level, taking cost in consideration,
for natural gas fired corn-based ethanol plants,
allowing for the use of a variety of technologies and
processes. An adjustment in the 50 or 60 percent
greenhouse gas levels shall be the minimum possible
adjustment for the fuel or fuels concerned, and the
adjusted greenhouse gas reduction shall be established
at the maximum achievable level, taking cost in
consideration, allowing for the use of a variety of
feedstocks, technologies, and processes.
``(D) 5-year review.--Whenever the Administrator
makes any adjustment under this paragraph, not later
than 5 years thereafter he shall review and revise
(based upon the same criteria and standards as required
for the initial adjustment) the regulations
establishing the adjusted level.
``(E) Subsequent adjustments.--After the
Administrator has promulgated a final rule under the
last sentence of paragraph (2)(A)(i) with respect to
the method of determining lifecycle greenhouse gas
emissions, except as provided in subparagraph (D), the
Administrator may not adjust the percent greenhouse gas
reduction levels unless he determines that there has
been a significant change in the analytical methodology
used for determining the lifecycle greenhouse gas
emissions. If he makes such determination, he may
adjust the 20, 50, or 60 percent reduction levels
through rulemaking using the criteria and standards set
forth in this paragraph.
``(F) Limit on upward adjustments.--If, under
subparagraph (D) or (E), the Administrator revises a
percent level adjusted as provided in subparagraph (A),
(B), and (C) to a higher percent, such higher percent
may not exceed the applicable percent specified in
paragraph (2)(A)(i), (1)(D),(1)(B)(i), or (1)(E).
``(G) Applicability of adjustments.--If the
Administrator adjusts, or revises, a percent level
referred to in this paragraph or makes a change in the
analytical methodology used for determining the
lifecycle greenhouse gas emissions, such adjustment,
revision, or change (or any combination thereof) shall
only apply to renewable fuel from new facilities that
commence construction after the effective date of such
adjustment, revision, or change.''.
(d) Credits for Additional Renewable Fuel.--Paragraph (5) of
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is amended
by adding the following new subparagraph at the end thereof:
``(E) Credits for additional renewable fuel.--The
Administrator may issue regulations providing (i) for
the generation of an appropriate amount of credits by
any person that refines, blends, or imports additional
renewable fuels specified by the Administrator and (ii)
for the use of such credits by the generator, or the
transfer of all or a portion of the credits to another
person, for the purpose of complying with paragraph
(2).''.
(e) Waivers.--
(1) In general.--Paragraph (7)(A) of section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by inserting
``, by any person subject to the requirements of this
subsection, or by the Administrator on his own motion'' after
``one or more States'' in subparagraph (A) and by striking out
``State'' in subparagraph (B).
(2) Cellulosic biofuel.--Paragraph (7) of section 211(o) of
the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding
the following at the end thereof:
``(D) Cellulosic biofuel.--(i) For any calendar
year for which the projected volume of cellulosic
biofuel production is less than the minimum applicable
volume established under paragraph (2)(B), as
determined by the Administrator based on the estimate
provided under paragraph (3)(A), not later than
November 30 of the preceding calendar year, the
Administrator shall reduce the applicable volume of
cellulosic biofuel required under paragraph (2)(B) to
the projected volume available during that calendar
year. For any calendar year in which the Administrator
makes such a reduction, the Administrator may also
reduce the applicable volume of renewable fuel and
advanced biofuels requirement established under
paragraph (2)(B) by the same or a lesser volume.
``(ii) Whenever the Administrator reduces the
minimum cellulosic biofuel volume under this
subparagraph, the Administrator shall make available
for sale cellulosic biofuel credits at the higher of
$0.25 per gallon or the amount by which $3.00 per
gallon exceeds the average wholesale price of a gallon
of gasoline in the United States. Such amounts shall be
adjusted for inflation by the Administrator for years
after 2008.
``(iii) 18 months after date of enactment of this
subparagraph, the Administrator shall promulgate
regulations to govern the issuance of credits under
this subparagraph. The regulations shall set forth the
method for determining the exact price of credits in
the event of a waiver. The price of such credits shall
not be changed more frequently than once each quarter.
These regulations shall include such provisions,
including limiting the credits' uses and useful life,
as the Administrator deems appropriate to assist market
liquidity and transparency, to provide appropriate
certainty for regulated entities and renewable fuel
producers, and to limit any potential misuse of
cellulosic biofuel credits to reduce the use of other
renewable fuels, and for such other purposes as the
Administrator determines will help achieve the goals of
this subsection. The regulations shall limit the number
of cellulosic biofuel credits for any calendar year to
the minimum applicable volume (as reduced under this
subparagraph) of cellulosic biofuel for that year.''.
(3) Biomass-based diesel.--Paragraph (7) of section 211(o)
of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by
adding the following at the end thereof:
``(E) Biomass-based diesel.--
``(i) Market evaluation.--The
Administrator, in consultation with the
Secretary of Energy and the Secretary of
Agriculture, shall periodically evaluate the
impact of the biomass-based diesel requirements
established under this paragraph on the price
of diesel fuel.
``(ii) Waiver.--If the Administrator
determines that there is a significant
renewable feedstock disruption or other market
circumstances that would make the price of
biomass-based diesel fuel increase
significantly, the Administrator, in
consultation with the Secretary of Energy and
the Secretary of Agriculture, shall issue an
order to reduce, for up to a 60-day period, the
quantity of biomass-based diesel required under
subparagraph (A) by an appropriate quantity
that does not exceed 15 percent of the
applicable annual requirement for biomass-based
diesel. For any calendar year in which the
Administrator makes a reduction under this
subparagraph, the Administrator may also reduce
the applicable volume of renewable fuel and
advanced biofuels requirement established under
paragraph (2)(B) by the same or a lesser
volume.
``(iii) Extensions.--If the Administrator
determines that the feedstock disruption or
circumstances described in clause (ii) is
continuing beyond the 60-day period described
in clause (ii) or this clause, the
Administrator, in consultation with the
Secretary of Energy and the Secretary of
Agriculture, may issue an order to reduce, for
up to an additional 60-day period, the quantity
of biomass-based diesel required under
subparagraph (A) by an appropriate quantity
that does not exceed an additional 15 percent
of the applicable annual requirement for
biomass-based diesel.
``(F) Modification of applicable volumes.--For any
of the tables in paragraph (2)(B), if the Administrator
waives--
``(i) at least 20 percent of the applicable
volume requirement set forth in any such table
for 2 consecutive years; or
``(ii) at least 50 percent of such volume
requirement for a single year,
the Administrator shall promulgate a rule (within one
year after issuing such waiver) that modifies the
applicable volumes set forth in the table concerned for
all years following the final year to which the waiver
applies, except that no such modification in applicable
volumes shall be made for any year before 2016. In
promulgating such a rule, the Administrator shall
comply with the processes, criteria, and standards set
forth in paragraph (2)(B)(ii).''.
SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.
(a) In General.--The Secretary of Energy, in consultation with the
Secretary of Agriculture and the Administrator of the Environmental
Protection Agency, shall enter into an arrangement with the National
Academy of Sciences under which the Academy shall conduct a study to
assess the impact of the requirements described in section 211(o) of
the Clean Air Act on each industry relating to the production of feed
grains, livestock, food, forest products, and energy.
(b) Participation.--In conducting the study under this section, the
National Academy of Sciences shall seek the participation, and consider
the input, of--
(1) producers of feed grains;
(2) producers of livestock, poultry, and pork products;
(3) producers of food and food products;
(4) producers of energy;
(5) individuals and entities interested in issues relating
to conservation, the environment, and nutrition;
(6) users and consumer of renewable fuels;
(7) producers and users of biomass feedstocks; and
(8) land grant universities.
(c) Considerations.--In conducting the study, the National Academy
of Sciences shall consider--
(1) the likely impact on domestic animal agriculture
feedstocks that, in any crop year, are significantly below
current projections;
(2) policy options to alleviate the impact on domestic
animal agriculture feedstocks that are significantly below
current projections; and
(3) policy options to maintain regional agricultural and
silvicultural capability.
(d) Components.--The study shall include--
(1) a description of the conditions under which the
requirements described in section 211(o) of the Clean Air Act
should be suspended or reduced to prevent adverse impacts to
domestic animal agriculture feedstocks described in subsection
(c)(2) or regional agricultural and silvicultural capability
described in subsection (c)(3); and
(2) recommendations for the means by which the Federal
Government could prevent or minimize adverse economic hardships
and impacts.
(e) Deadline for Completion of Study.--Not later than 18 months
after the date of enactment of this Act, the Secretary shall submit to
Congress a report that describes the results of the study under this
section.
(f) Periodic Reviews.--Section 211(o) of the Clean Air Act is
amended by adding the following at the end thereof:
``(12) Periodic reviews.--To allow for the appropriate
adjustment of the requirements described in subparagraph (B) of
paragraph (2), the Administrator shall conduct periodic reviews
of--
``(A) existing technologies;
``(B) the feasibility of achieving compliance with
the requirements; and
``(C) the impacts of the requirements described in
subsection (a)(2) on each individual and entity
described in paragraph (2).''.
SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.
(a) In General.--Not later than 3 years after the enactment of this
section and every 3 years thereafter, the Administrator of the
Environmental Protection Agency, in consultation with the Secretary of
Agriculture and the Secretary of Energy, shall assess and report to
Congress on the impacts to date and likely future impacts of the
requirements of section 211(o) of the Clean Air Act on the following:
(1) Environmental issues, including air quality, effects on
hypoxia, pesticides, sediment, nutrient and pathogen levels in
waters, acreage and function of waters, and soil environmental
quality.
(2) Resource conservation issues, including soil
conservation, water availability, and ecosystem health and
biodiversity, including impacts on forests, grasslands, and
wetlands.
(3) The growth and use of cultivated invasive or noxious
plants and their impacts on the environment and agriculture.
In advance of preparing the report required by this subsection, the
Administrator may seek the views of the National Academy of Sciences or
another appropriate independent research institute. The report shall
include the annual volume of imported renewable fuels and feedstocks
for renewable fuels, and the environmental impacts outside the United
States of producing such fuels and feedstocks. The report required by
this subsection shall include recommendations for actions to address
any adverse impacts found.
(b) Effect on Air Quality and Other Environmental Requirements.--
Except as provided in section 211(o)(13) of the Clean Air Act, nothing
in the amendments made by this title to section 211(o) of the Clean Air
Act shall be construed as superseding, or limiting, any more
environmentally protective requirement under the Clean Air Act, or
under any other provision of State or Federal law or regulation,
including any environmental law or regulation.
SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING.
(a) In General.--Each retail diesel fuel pump shall be labeled in a
manner that informs consumers of the percent of biomass-based diesel or
biodiesel that is contained in the biomass-based diesel blend or
biodiesel blend that is offered for sale, as determined by the Federal
Trade Commission.
(b) Labeling Requirements.--Not later than 180 days after the date
of enactment of this section, the Federal Trade Commission shall
promulgate biodiesel labeling requirements as follows:
(1) Biomass-based diesel blends or biodiesel blends that
contain less than or equal to 5 percent biomass-based diesel or
biodiesel by volume and that meet ASTM D975 diesel
specifications shall not require any additional labels.
(2) Biomass based diesel blends or biodiesel blends that
contain more than 5 percent biomass-based diesel or biodiesel
by volume but not more than 20 percent by volume shall be
labeled ``contains biomass-based diesel or biodiesel in
quantities between 5 percent and 20 percent''.
(3) Biomass-based diesel or biodiesel blends that contain
more than 20 percent biomass based or biodiesel by volume shall
be labeled ``contains more than 20 percent biomass-based diesel
or biodiesel''.
(c) Definitions.--In this section:
(1) Astm.--The term ``ASTM'' means the American Society of
Testing and Materials.
(2) Biomass-based diesel.--The term ``biomass-based
diesel'' means biodiesel as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
(3) Biodiesel.--The term ``biodiesel'' means the monoalkyl
esters of long chain fatty acids derived from plant or animal
matter that meet--
(A) the registration requirements for fuels and
fuel additives under this section; and
(B) the requirements of ASTM standard D6751.
(4) Biomass-based diesel and biodiesel blends.--The terms
``biomass-based diesel blend'' and ``biodiesel blend'' means a
blend of ``biomass-based diesel'' or ``biodiesel'' fuel that is
blended with petroleum based diesel fuel.
SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY IN ELECTRIC
VEHICLES.
(a) Definition of Electric Vehicle.--In this section, the term
``electric vehicle'' means an electric motor vehicle (as defined in
section 601 of the Energy Policy Act of 1992 (42 U.S.C. 13271)) for
which the rechargeable storage battery--
(1) receives a charge directly from a source of electric
current that is external to the vehicle; and
(2) provides a minimum of 80 percent of the motive power of
the vehicle.
(b) Study.--The Administrator of the Environmental Protection
Agency shall conduct a study on the feasibility of issuing credits
under the program established under section 211(o) of the Clean Air Act
to electric vehicles powered by electricity produced from renewable
energy sources.
(c) Report.--Not later than 18 months after the date of enactment
of this Act, the Administrator shall submit to the Committee on Energy
and Natural Resources of the United States Senate and the Committee on
Energy and Commerce of the United States House of Representatives a
report that describes the results of the study, including a description
of--
(1) existing programs and studies on the use of renewable
electricity as a means of powering electric vehicles; and
(2) alternatives for--
(A) designing a pilot program to determine the
feasibility of using renewable electricity to power
electric vehicles as an adjunct to a renewable fuels
mandate;
(B) allowing the use, under the pilot program
designed under subparagraph (A), of electricity
generated from nuclear energy as an additional source
of supply;
(C) identifying the source of electricity used to
power electric vehicles; and
(D) equating specific quantities of electricity to
quantities of renewable fuel under section 211(o) of
the Clean Air Act.
SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.
(a) In General.--The Secretary of Energy shall establish a grant
program to encourage the production of advanced biofuels.
(b) Requirements and Priority.--In making grants under this
section, the Secretary--
(1) shall make awards to the proposals for advanced
biofuels with the greatest reduction in lifecycle greenhouse
gas emissions compared to the comparable motor vehicle fuel
lifecycle emissions during calendar year 2005; and
(2) shall not make an award to a project that does not
achieve at least a 80 percent reduction in such lifecycle
greenhouse gas emissions.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $500,000,000 for the period of
fiscal years 2008 through 2015.
SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN DETERMINATIONS
ON FUELS AND FUEL ADDITIVES.
Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is
amended as follows:
(1) By striking ``nonroad vehicle (A) if in the judgment of
the Administrator'' and inserting ``nonroad vehicle if, in the
judgment of the Administrator, any fuel or fuel additive or'';
and
(2) In subparagraph (A), by striking ``air pollution
which'' and inserting ``air pollution or water pollution
(including any degradation in the quality of groundwater)
that''.
SEC. 209. ANTI-BACKSLIDING.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
adding at the end the following:
``(v) Prevention of Air Quality Deterioration.--
``(1) Study.--
``(A) In general.--Not later than 18 months after
the date of enactment of this subsection, the
Administrator shall complete a study to determine
whether the renewable fuel volumes required by this
section will adversely impact air quality as a result
of changes in vehicle and engine emissions of air
pollutants regulated under this Act.
``(B) Considerations.--The study shall include
consideration of--
``(i) different blend levels, types of
renewable fuels, and available vehicle
technologies; and
``(ii) appropriate national, regional, and
local air quality control measures.
``(2) Regulations.--Not later than 3 years after the date
of enactment of this subsection, the Administrator shall--
``(A) promulgate fuel regulations to implement
appropriate measures to mitigate, to the greatest
extent achievable, considering the results of the study
under paragraph (1), any adverse impacts on air
quality, as the result of the renewable volumes
required by this section; or
``(B) make a determination that no such measures
are necessary.''.
SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND TRANSITION RULES.
(a) Transition Rules.--(1) For calendar year 2008, transportation
fuel sold or introduced into commerce in the United States (except in
noncontiguous States or territories), that is produced from facilities
that commence construction after the date of enactment of this Act
shall be treated as renewable fuel within the meaning of section 211(o)
of the Clean Air Act only if it achieves at least a 20 percent
reduction in lifecycle greenhouse gas emissions compared to baseline
lifecycle greenhouse gas emissions. For calendar years 2008 and 2009,
any ethanol plant that is fired with natural gas, biomass, or any
combination thereof is deemed to be in compliance with such 20 percent
reduction requirement and with the 20 percent reduction requirement of
section 211(o)(1) of the Clean Air Act. The terms used in this
subsection shall have the same meaning as provided in the amendment
made by this Act to section 211(o) of the Clean Air Act.
(2) Until January 1, 2009, the Administrator of the Environmental
Protection Agency shall implement section 211(o) of the Clean Air Act
and the rules promulgated under that section in accordance with the
provisions of that section as in effect before the enactment of this
Act and in accordance with the rules promulgated before the enactment
of this Act, except that for calendar year 2008, the number ``8.5''
shall be substituted for the number ``5.4'' in the table in section
211(o)(2)(B) and in the corresponding rules promulgated to carry out
those provisions. The Administrator is authorized to take such other
actions as may be necessary to carry out this paragraph notwithstanding
any other provision of law.
(b) Savings Clause.--Section 211(o) of the Clean Air Act (42 U.S.C.
7545(o)) is amended by adding the following new paragraph at the end
thereof:
``(13) Effect on other provisions.--Nothing in this
subsection, or regulations issued pursuant to this subsection,
shall affect or be construed to affect the regulatory status of
carbon dioxide or any other greenhouse gas, or to expand or
limit regulatory authority regarding carbon dioxide or any
other greenhouse gas, for purposes of other provisions
(including section 165) of this Act. The previous sentence
shall not affect implementation and enforcement of this
subsection.''.
(c) Effective Date.--The amendments made by this title to section
211(o) of the Clean Air Act shall take effect January 1, 2009, except
that the Administrator shall promulgate regulations to carry out such
amendments not later than one year after the enactment of this Act.
Subtitle B--Biofuels Research and Development
SEC. 221. BIODIESEL.
(a) Biodiesel Study.--Not later than 180 days after the date of
enactment of this Act, the Secretary, in consultation with the
Administrator of the Environmental Protection Agency, shall submit to
Congress a report on any research and development challenges inherent
in increasing the proportion of diesel fuel sold in the United States
that is biodiesel.
(b) Material for the Establishment of Standards.--The Director of
the National Institute of Standards and Technology, in consultation
with the Secretary, shall make publicly available the physical property
data and characterization of biodiesel and other biofuels as
appropriate.
SEC. 222. BIOGAS.
Not later than 180 days after the date of enactment of this Act,
the Secretary, in consultation with the Administrator of the
Environmental Protection Agency, shall submit to Congress a report on
any research and development challenges inherent in increasing the
amount of transportation fuels sold in the United States that are fuel
with biogas or a blend of biogas and natural gas.
SEC. 223. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND DEVELOPMENT IN
CERTAIN STATES.
(a) In General.--The Secretary shall provide grants to eligible
entities for research, development, demonstration, and commercial
application of biofuel production technologies in States with low rates
of ethanol production, including low rates of production of cellulosic
biomass ethanol, as determined by the Secretary.
(b) Eligibility.--To be eligible to receive a grant under this
section, an entity shall--
(1)(A) be an institution of higher education (as defined in
section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)),
including tribally controlled colleges or universities, located
in a State described in subsection (a); or
(B) be a consortium including at least 1 such institution
of higher education, and industry, State agencies, Indian
tribal agencies, National Laboratories, or local government
agencies located in the State; and
(2) have proven experience and capabilities with relevant
technologies.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $25,000,000 for
each of fiscal years 2008 through 2010.
SEC. 224. BIOREFINERY ENERGY EFFICIENCY.
Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232) is
amended by adding at the end the following new subsections:
``(g) Biorefinery Energy Efficiency.--The Secretary shall establish
a program of research, development, demonstration, and commercial
application for increasing energy efficiency and reducing energy
consumption in the operation of biorefinery facilities.
``(h) Retrofit Technologies for the Development of Ethanol From
Cellulosic Materials.--The Secretary shall establish a program of
research, development, demonstration, and commercial application on
technologies and processes to enable biorefineries that exclusively use
corn grain or corn starch as a feedstock to produce ethanol to be
retrofitted to accept a range of biomass, including lignocellulosic
feedstocks.''.
SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES TO USE E-85
FUEL.
(a) In General.--The Secretary, in consultation with the Secretary
of Transportation and the Administrator of the Environmental Protection
Agency, shall conduct a study of whether optimizing flexible fueled
vehicles to operate using E-85 fuel would increase the fuel efficiency
of flexible fueled vehicles.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary shall submit to the Committee on Science and
Technology and the Committee on Energy and Commerce of the House of
Representatives, and to the Committee on Energy and Natural Resources,
the Committee on Environment and Public Works, and the Committee on
Commerce, Science, and Transportation of the Senate, a report that
describes the results of the study under this section, including any
recommendations of the Secretary.
SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORMANCE ASSOCIATED WITH
THE USE OF BIODIESEL.
(a) In General.--Not later than 30 days after the date of enactment
of this Act, the Secretary, in consultation with the Administrator of
the Environmental Protection Agency, shall initiate a study on the
effects of the use of biodiesel on the performance and durability of
engines and engine systems.
(b) Components.--The study under this section shall include--
(1) an assessment of whether the use of biodiesel lessens
the durability and performance of conventional diesel engines
and engine systems; and
(2) an assessment of the effects referred to in subsection
(a) with respect to biodiesel blends at varying concentrations,
including the following percentage concentrations of biodiesel:
(A) 5 percent biodiesel.
(B) 10 percent biodiesel.
(C) 20 percent biodiesel.
(D) 30 percent biodiesel.
(E) 100 percent biodiesel.
(c) Report.--Not later than 24 months after the date of enactment
of this Act, the Secretary shall submit to the Committee on Science and
Technology and the Committee on Energy and Commerce of the House of
Representatives, and to the Committee on Energy and Natural Resources
and the Committee on Environment and Public Works of the Senate, a
report that describes the results of the study under this section,
including any recommendations of the Secretary.
SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS VEHICLES.
(a) In General.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency and the Secretary
of Transportation, shall conduct a study of methods of increasing the
fuel efficiency of vehicles using biogas by optimizing natural gas
vehicle systems that can operate on biogas, including the advancement
of vehicle fuel systems and the combination of hybrid-electric and
plug-in hybrid electric drive platforms with natural gas vehicle
systems using biogas.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary shall submit to the Committee on Energy and
Natural Resources, the Committee on Environment and Public Works, and
the Committee on Commerce, Science, and Transportation of the Senate,
and to the Committee on Science and Technology and the Committee on
Energy and Commerce of the House of Representatives, a report that
describes the results of the study, including any recommendations of
the Secretary.
SEC. 228. ALGAL BIOMASS.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Secretary shall submit to the Committee on Science and
Technology of the House of Representatives and the Committee on Energy
and Natural Resources of the Senate a report on the progress of the
research and development that is being conducted on the use of algae as
a feedstock for the production of biofuels.
(b) Contents.--The report shall identify continuing research and
development challenges and any regulatory or other barriers found by
the Secretary that hinder the use of this resource, as well as
recommendations on how to encourage and further its development as a
viable transportation fuel.
SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CENTER.
(a) In General.--The Secretary, in cooperation with the Secretary
of Agriculture, shall establish a biofuels and biorefinery information
center to make available to interested parties information on--
(1) renewable fuel feedstocks, including the varieties of
fuel capable of being produced from various feedstocks;
(2) biorefinery processing techniques related to various
renewable fuel feedstocks;
(3) the distribution, blending, storage, and retail
dispensing infrastructure necessary for the transport and use
of renewable fuels;
(4) Federal and State laws and incentives related to
renewable fuel production and use;
(5) renewable fuel research and development advancements;
(6) renewable fuel development and biorefinery processes
and technologies;
(7) renewable fuel resources, including information on
programs and incentives for renewable fuels;
(8) renewable fuel producers;
(9) renewable fuel users; and
(10) potential renewable fuel users.
(b) Administration.--In administering the biofuels and biorefinery
information center, the Secretary shall--
(1) continually update information provided by the center;
(2) make information available relating to processes and
technologies for renewable fuel production;
(3) make information available to interested parties on the
process for establishing a biorefinery; and
(4) make information and assistance provided by the center
available through a toll-free telephone number and website.
(c) Coordination and Nonduplication.--To maximum extent
practicable, the Secretary shall ensure that the activities under this
section are coordinated with, and do not duplicate the efforts of,
centers at other government agencies.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.
(a) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means--
(1) an 1890 Institution (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7061));
(2) a part B institution (as defined in section 322 of the
Higher Education Act of 1965 (20 U.S.C. 1061)) (commonly
referred to as ``Historically Black Colleges and
Universities'');
(3) a tribal college or university (as defined in section
316(b) of the Higher Education Act of 1965 (20 U.S.C.
1059c(b)); or
(4) a Hispanic-serving institution (as defined in section
502(a) of the Higher Education Act of 1965 (20 U.S.C.
1101a(a)).
(b) Grants.--The Secretary shall make cellulosic ethanol and
biofuels research and development grants to 10 eligible entities
selected by the Secretary to receive a grant under this section through
a peer-reviewed competitive process.
(c) Collaboration.--An eligible entity that is selected to receive
a grant under subsection (b) shall collaborate with 1 of the Bioenergy
Research Centers of the Office of Science of the Department.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to make grants described in subsection
(b) $50,000,000 for fiscal year 2008, to remain available until
expended.
SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION OF
APPROPRIATION.
Section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) is
amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) $963,000,000 for fiscal year 2010.''; and
(2) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``$251,000,000'' and
inserting ``$377,000,000''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (3)--
(i) by striking ``$274,000,000'' and
inserting ``$398,000,000''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(4) $419,000,000 for fiscal year 2010, of which
$150,000,000 shall be for section 932(d).''.
SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.
(a) In General.--Section 977 of the Energy Policy Act of 2005 (42
U.S.C. 16317) is amended--
(1) in subsection (a)(1), by striking ``and computational
biology'' and inserting ``computational biology, and
environmental science''; and
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``in sustainable
production systems that reduce greenhouse gas
emissions'' after ``hydrogen'';
(B) in paragraph (3), by striking ``and'' at the
end;
(C) by redesignating paragraph (4) as paragraph
(5); and
(D) by inserting after paragraph (3) the following:
``(4) develop cellulosic and other feedstocks that are less
resource and land intensive and that promote sustainable use of
resources, including soil, water, energy, forests, and land,
and ensure protection of air, water, and soil quality; and''.
(b) Tools and Evaluation.--Section 307(d) of the Biomass Research
and Development Act of 2000 (7 U.S.C. 8606(d)) is amended--
(1) in paragraph (3)(E), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) the improvement and development of analytical tools
to facilitate the analysis of life-cycle energy and greenhouse
gas emissions, including emissions related to direct and
indirect land use changes, attributable to all potential
biofuel feedstocks and production processes; and
``(6) the systematic evaluation of the impact of expanded
biofuel production on the environment, including forest lands,
and on the food supply for humans and animals.''.
(c) Small-Scale Production and Use of Biofuels.--Section 307(e) of
the Biomass Research and Development Act of 2000 (7 U.S.C. 8606(e)) is
amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) to facilitate small-scale production, local, and on-
farm use of biofuels, including the development of small-scale
gasification technologies for production of biofuel from
cellulosic feedstocks.''.
SEC. 233. BIOENERGY RESEARCH CENTERS.
Section 977 of the Energy Policy Act of 2005 (42 U.S.C. 16317) is
amended by adding at the end the following:
``(f) Bioenergy Research Centers.--
``(1) Establishment of centers.--In carrying out the
program under subsection (a), the Secretary shall establish at
least 7 bioenergy research centers, which may be of varying
size.
``(2) Geographic distribution.--The Secretary shall
establish at least 1 bioenergy research center in each
Petroleum Administration for Defense District or Subdistrict of
a Petroleum Administration for Defense District.
``(3) Goals.--The goals of the centers established under
this subsection shall be to accelerate basic transformational
research and development of biofuels, including biological
processes.
``(4) Selection and duration.--
``(A) In general.--A center under this subsection
shall be selected on a competitive basis for a period
of 5 years.
``(B) Reapplication.--After the end of the period
described in subparagraph (A), a grantee may reapply
for selection on a competitive basis.
``(5) Inclusion.--A center that is in existence on the date
of enactment of this subsection--
``(A) shall be counted towards the requirement for
establishment of at least 7 bioenergy research centers;
and
``(B) may continue to receive support for a period
of 5 years beginning on the date of establishment of
the center.''.
SEC. 234. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.
(a) Establishment.--The Secretary shall establish a competitive
grant program, in a geographically diverse manner, for projects
submitted for consideration by institutions of higher education to
conduct research and development of renewable energy technologies. Each
grant made shall not exceed $2,000,000.
(b) Eligibility.--Priority shall be given to institutions of higher
education with--
(1) established programs of research in renewable energy;
(2) locations that are low income or outside of an
urbanized area;
(3) a joint venture with an Indian tribe; and
(4) proximity to trees dying of disease or insect
infestation as a source of woody biomass.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $25,000,000 for carrying out this
section.
(d) Definitions.--In this section:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning as defined in section 126(c) of the Energy Policy Act
of 2005.
(2) Renewable energy.--The term ``renewable energy'' has
the meaning as defined in section 902 of the Energy Policy Act
of 2005.
(3) Urbanized area.--The term ``urbanized area'' has the
mean as defined by the U.S. Bureau of the Census.
Subtitle C--Biofuels Infrastructure
SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS RELATED TO
RENEWABLE FUEL INFRASTRUCTURE.
(a) In General.--Title I of the Petroleum Marketing Practices Act
(15 U.S.C. 2801 et seq.) is amended by adding at the end the following:
``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF RENEWABLE
FUEL PUMPS.
``(a) Definition.--In this section:
``(1) Renewable fuel.--The term `renewable fuel' means any
fuel--
``(A) at least 85 percent of the volume of which
consists of ethanol; or
``(B) any mixture of biodiesel and diesel or
renewable diesel (as defined in regulations adopted
pursuant to section 211(o) of the Clean Air Act (40
CFR, Part 80)), determined without regard to any use of
kerosene and containing at least 20 percent biodiesel
or renewable diesel.
``(2) Franchise-related document.--The term `franchise-
related document' means--
``(A) a franchise under this Act; and
``(B) any other contract or directive of a
franchisor relating to terms or conditions of the sale
of fuel by a franchisee.
``(b) Prohibitions.--
``(1) In general.--No franchise-related document entered
into or renewed on or after the date of enactment of this
section shall contain any provision allowing a franchisor to
restrict the franchisee or any affiliate of the franchisee
from--
``(A) installing on the marketing premises of the
franchisee a renewable fuel pump or tank, except that
the franchisee's franchisor may restrict the
installation of a tank on leased marketing premises of
such franchisor;
``(B) converting an existing tank or pump on the
marketing premises of the franchisee for renewable fuel
use, so long as such tank or pump and the piping
connecting them are either warranted by the
manufacturer or certified by a recognized standards
setting organization to be suitable for use with such
renewable fuel;
``(C) advertising (including through the use of
signage) the sale of any renewable fuel;
``(D) selling renewable fuel in any specified area
on the marketing premises of the franchisee (including
any area in which a name or logo of a franchisor or any
other entity appears);
``(E) purchasing renewable fuel from sources other
than the franchisor if the franchisor does not offer
its own renewable fuel for sale by the franchisee;
``(F) listing renewable fuel availability or
prices, including on service station signs, fuel
dispensers, or light poles; or
``(G) allowing for payment of renewable fuel with a
credit card,
so long as such activities described in subparagraphs (A)
through (G) do not constitute mislabeling, misbranding, willful
adulteration, or other trademark violations by the franchisee.
``(2) Effect of provision.--Nothing in this section shall
be construed to preclude a franchisor from requiring the
franchisee to obtain reasonable indemnification and insurance
policies.
``(c) Exception to 3-Grade Requirement.--No franchise-related
document that requires that 3 grades of gasoline be sold by the
applicable franchisee shall prevent the franchisee from selling an
renewable fuel in lieu of 1, and only 1, grade of gasoline.''.
(b) Enforcement.--Section 105 of the Petroleum Marketing Practices
Act (15 U.S.C. 2805) is amended by striking ``102 or 103'' each place
it appears and inserting ``102, 103, or 107''.
(c) Conforming Amendments.--
(1) In general.--Section 101(13) of the Petroleum Marketing
Practices Act (15 U.S.C. 2801(13)) is amended by aligning the
margin of subparagraph (C) with subparagraph (B).
(2) Table of contents.--The table of contents of the
Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is
amended--
(A) by inserting after the item relating to section
106 the following:
``Sec. 107. Prohibition on restriction of installation of renewable
fuel pumps.''; and
(B) by striking the item relating to section 202
and inserting the following:
``Sec. 202. Automotive fuel rating testing and disclosure
requirements.''.
SEC. 242. RENEWABLE FUEL DISPENSER REQUIREMENTS.
(a) Market Penetration Reports.--The Secretary, in consultation
with the Secretary of Transportation, shall determine and report to
Congress annually on the market penetration for flexible-fuel vehicles
in use within geographic regions to be established by the Secretary.
(b) Dispenser Feasibility Study.--Not later than 24 months after
the date of enactment of this Act, the Secretary, in consultation with
the Department of Transportation, shall report to the Congress on the
feasibility of requiring motor fuel retailers to install E-85
compatible dispensers and related systems at retail fuel facilities in
regions where flexible-fuel vehicle market penetration has reached 15
percent of motor vehicles. In conducting such study, the Secretary
shall consider and report on the following factors:
(1) The commercial availability of E-85 fuel and the number
of competing E-85 wholesale suppliers in a given region.
(2) The level of financial assistance provided on an annual
basis by the Federal Government, State governments, and
nonprofit entities for the installation of E-85 compatible
infrastructure.
(3) The number of retailers whose retail locations are
unable to support more than 2 underground storage tank
dispensers.
(4) The expense incurred by retailers in the installation
and sale of E-85 compatible dispensers and related systems and
any potential effects on the price of motor vehicle fuel.
SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.
(a) In General.--The Secretary, in coordination with the Secretary
of Transportation, shall conduct a study of the feasibility of the
construction of pipelines dedicated to the transportation of ethanol.
(b) Factors for Consideration.--In conducting the study under
subsection (a), the Secretary shall take into consideration--
(1) the quantity of ethanol production that would make
dedicated pipelines economically viable;
(2) existing or potential barriers to the construction of
pipelines dedicated to the transportation of ethanol, including
technical, siting, financing, and regulatory barriers;
(3) market risk (including throughput risk) and means of
mitigating the risk;
(4) regulatory, financing, and siting options that would
mitigate the risk and help ensure the construction of 1 or more
pipelines dedicated to the transportation of ethanol;
(5) financial incentives that may be necessary for the
construction of pipelines dedicated to the transportation of
ethanol, including the return on equity that sponsors of the
initial dedicated ethanol pipelines will require to invest in
the pipelines;
(6) technical factors that may compromise the safe
transportation of ethanol in pipelines, including
identification of remedial and preventive measures to ensure
pipeline integrity; and
(7) such other factors as the Secretary considers to be
appropriate.
(c) Report.--Not later than 15 months after the date of enactment
of this Act, the Secretary shall submit to Congress a report describing
the results of the study conducted under this section.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $1,000,000 for
each of fiscal years 2008 and 2009, to remain available until expended.
SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS.
(a) Definition of Renewable Fuel Blend.--For purposes of this
section, the term ``renewable fuel blend'' means gasoline blend that
contain not less than 11 percent, and not more than 85 percent,
renewable fuel or diesel fuel that contains at least 10 percent
renewable fuel.
(b) Infrastructure Development Grants.--
(1) Establishment.--The Secretary shall establish a program
for making grants for providing assistance to retail and
wholesale motor fuel dealers or other entities for the
installation, replacement, or conversion of motor fuel storage
and dispensing infrastructure to be used exclusively to store
and dispense renewable fuel blends.
(2) Selection criteria.--Not later than 12 months after the
date of enactment of this Act, the Secretary shall establish
criteria for evaluating applications for grants under this
subsection that will maximize the availability and use of
renewable fuel blends, and that will ensure that renewable fuel
blends are available across the country. Such criteria shall
provide for--
(A) consideration of the public demand for each
renewable fuel blend in a particular geographic area
based on State registration records showing the number
of flexible-fuel vehicles;
(B) consideration of the opportunity to create or
expand corridors of renewable fuel blend stations along
interstate or State highways;
(C) consideration of the experience of each
applicant with previous, similar projects;
(D) consideration of population, number of
flexible-fuel vehicles, number of retail fuel outlets,
and saturation of flexible-fuel vehicles; and
(E) priority consideration to applications that--
(i) are most likely to maximize
displacement of petroleum consumption, measured
as a total quantity and a percentage;
(ii) are best able to incorporate existing
infrastructure while maximizing, to the extent
practicable, the use of renewable fuel blends;
and
(iii) demonstrate the greatest commitment
on the part of the applicant to ensure funding
for the proposed project and the greatest
likelihood that the project will be maintained
or expanded after Federal assistance under this
subsection is completed.
(3) Limitations.--Assistance provided under this subsection
shall not exceed--
(A) 33 percent of the estimated cost of the
installation, replacement, or conversion of motor fuel
storage and dispensing infrastructure; or
(B) $180,000 for a combination of equipment at any
one retail outlet location.
(4) Operation of renewable fuel blend stations.--The
Secretary shall establish rules that set forth requirements for
grant recipients under this section that include providing to
the public the renewable fuel blends, establishing a marketing
plan that informs consumers of the price and availability of
the renewable fuel blends, clearly labeling the dispensers and
related equipment, and providing periodic reports on the status
of the renewable fuel blend sales, the type and amount of the
renewable fuel blends dispensed at each location, and the
average price of such fuel.
(5) Notification requirements.--Not later than the date on
which each renewable fuel blend station begins to offer
renewable fuel blends to the public, the grant recipient that
used grant funds to construct or upgrade such station shall
notify the Secretary of such opening. The Secretary shall add
each new renewable fuel blend station to the renewable fuel
blend station locator on its Website when it receives
notification under this subsection.
(6) Double counting.--No person that receives a credit
under section 30C of the Internal Revenue Code of 1986 may
receive assistance under this section.
(7) Reservation of funds.--The Secretary shall reserve
funds appropriated for the renewable fuel blends infrastructure
development grant program for technical and marketing
assistance described in subsection (c).
(c) Retail Technical and Marketing Assistance.--The Secretary shall
enter into contracts with entities with demonstrated experience in
assisting retail fueling stations in installing refueling systems and
marketing renewable fuel blends nationally, for the provision of
technical and marketing assistance to recipients of grants under this
section. Such assistance shall include--
(1) technical advice for compliance with applicable Federal
and State environmental requirements;
(2) help in identifying supply sources and securing long-
term contracts; and
(3) provision of public outreach, education, and labeling
materials.
(d) Refueling Infrastructure Corridors.--
(1) In general.--The Secretary shall establish a
competitive grant pilot program (referred to in this subsection
as the ``pilot program''), to be administered through the
Vehicle Technology Deployment Program of the Department, to
provide not more than 10 geographically-dispersed project
grants to State governments, Indian tribal governments, local
governments, metropolitan transportation authorities, or
partnerships of those entities to carry out 1 or more projects
for the purposes described in paragraph (2).
(2) Grant purposes.--A grant under this subsection shall be
used for the establishment of refueling infrastructure
corridors, as designated by the Secretary, for renewable fuel
blends, including--
(A) installation of infrastructure and equipment
necessary to ensure adequate distribution of renewable
fuel blends within the corridor;
(B) installation of infrastructure and equipment
necessary to directly support vehicles powered by
renewable fuel blends; and
(C) operation and maintenance of infrastructure and
equipment installed as part of a project funded by the
grant.
(3) Applications.--
(A) Requirements.--
(i) In general.--Subject to clause (ii),
not later than 90 days after the date of
enactment of this Act, the Secretary shall
issue requirements for use in applying for
grants under the pilot program.
(ii) Minimum requirements.--At a minimum,
the Secretary shall require that an application
for a grant under this subsection--
(I) be submitted by--
(aa) the head of a State,
tribal, or local government or
a metropolitan transportation
authority, or any combination
of those entities; and
(bb) a registered
participant in the Vehicle
Technology Deployment Program
of the Department; and
(II) include--
(aa) a description of the
project proposed in the
application, including the ways
in which the project meets the
requirements of this
subsection;
(bb) an estimate of the
degree of use of the project,
including the estimated size of
fleet of vehicles operated with
renewable fuels blend available
within the geographic region of
the corridor, measured as a
total quantity and a
percentage;
(cc) an estimate of the
potential petroleum displaced
as a result of the project
(measured as a total quantity
and a percentage), and a plan
to collect and disseminate
petroleum displacement and
other relevant data relating to
the project to be funded under
the grant, over the expected
life of the project;
(dd) a description of the
means by which the project will
be sustainable without Federal
assistance after the completion
of the term of the grant;
(ee) a complete description
of the costs of the project,
including acquisition,
construction, operation, and
maintenance costs over the
expected life of the project;
and
(ff) a description of which
costs of the project will be
supported by Federal assistance
under this subsection.
(B) Partners.--An applicant under subparagraph (A)
may carry out a project under the pilot program in
partnership with public and private entities.
(4) Selection criteria.--In evaluating applications under
the pilot program, the Secretary shall--
(A) consider the experience of each applicant with
previous, similar projects; and
(B) give priority consideration to applications
that--
(i) are most likely to maximize
displacement of petroleum consumption, measured
as a total quantity and a percentage;
(ii) are best able to incorporate existing
infrastructure while maximizing, to the extent
practicable, the use of advanced biofuels;
(iii) demonstrate the greatest commitment
on the part of the applicant to ensure funding
for the proposed project and the greatest
likelihood that the project will be maintained
or expanded after Federal assistance under this
subsection is completed;
(iv) represent a partnership of public and
private entities; and
(v) exceed the minimum requirements of
paragraph (3)(A)(ii).
(5) Pilot project requirements.--
(A) Maximum amount.--The Secretary shall provide
not more than $20,000,000 in Federal assistance under
the pilot program to any applicant.
(B) Cost sharing.--The non-Federal share of the
cost of any activity relating to renewable fuel blend
infrastructure development carried out using funds from
a grant under this subsection shall be not less than 20
percent.
(C) Maximum period of grants.--The Secretary shall
not provide funds to any applicant under the pilot
program for more than 2 years.
(D) Deployment and distribution.--The Secretary
shall seek, to the maximum extent practicable, to
ensure a broad geographic distribution of project sites
funded by grants under this subsection.
(E) Transfer of information and knowledge.--The
Secretary shall establish mechanisms to ensure that the
information and knowledge gained by participants in the
pilot program are transferred among the pilot program
participants and to other interested parties, including
other applicants that submitted applications.
(6) Schedule.--
(A) Initial grants.--
(i) In general.--Not later than 90 days
after the date of enactment of this Act, the
Secretary shall publish in the Federal
Register, Commerce Business Daily, and such
other publications as the Secretary considers
to be appropriate, a notice and request for
applications to carry out projects under the
pilot program.
(ii) Deadline.--An application described in
clause (i) shall be submitted to the Secretary
by not later than 180 days after the date of
publication of the notice under that clause.
(iii) Initial selection.--Not later than 90
days after the date by which applications for
grants are due under clause (ii), the Secretary
shall select by competitive, peer-reviewed
proposal up to 5 applications for projects to
be awarded a grant under the pilot program.
(B) Additional grants.--
(i) In general.--Not later than 2 years
after the date of enactment of this Act, the
Secretary shall publish in the Federal
Register, Commerce Business Daily, and such
other publications as the Secretary considers
to be appropriate, a notice and request for
additional applications to carry out projects
under the pilot program that incorporate the
information and knowledge obtained through the
implementation of the first round of projects
authorized under the pilot program.
(ii) Deadline.--An application described in
clause (i) shall be submitted to the Secretary
by not later than 180 days after the date of
publication of the notice under that clause.
(iii) Initial selection.--Not later than 90
days after the date by which applications for
grants are due under clause (ii), the Secretary
shall select by competitive, peer-reviewed
proposal such additional applications for
projects to be awarded a grant under the pilot
program as the Secretary determines to be
appropriate.
(7) Reports to congress.--
(A) Initial report.--Not later than 60 days after
the date on which grants are awarded under this
subsection, the Secretary shall submit to Congress a
report containing--
(i) an identification of the grant
recipients and a description of the projects to
be funded under the pilot program;
(ii) an identification of other applicants
that submitted applications for the pilot
program but to which funding was not provided;
and
(iii) a description of the mechanisms used
by the Secretary to ensure that the information
and knowledge gained by participants in the
pilot program are transferred among the pilot
program participants and to other interested
parties, including other applicants that
submitted applications.
(B) Evaluation.--Not later than 2 years after the
date of enactment of this Act, and annually thereafter
until the termination of the pilot program, the
Secretary shall submit to Congress a report containing
an evaluation of the effectiveness of the pilot
program, including an assessment of the petroleum
displacement and benefits to the environment derived
from the projects included in the pilot program.
(e) Restriction.--No grant shall be provided under subsection (b)
or (c) to a large, vertically integrated oil company.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section
$200,000,000 for each of the fiscal years 2008 through 2014.
SEC. 245. STUDY OF THE ADEQUACY OF TRANSPORTATION OF DOMESTICALLY-
PRODUCED RENEWABLE FUEL BY RAILROADS AND OTHER MODES OF
TRANSPORTATION.
(a) Study.--
(1) In general.--The Secretary, in coordination with the
Secretary of Transportation, shall jointly conduct a study of
the adequacy of transportation of domestically-produced
renewable fuels by railroad and other modes of transportation
as designated by the Secretaries.
(2) Components.--In conducting the study under paragraph
(1), the Secretaries shall--
(A) consider the adequacy of existing railroad and
other transportation and distribution infrastructure,
equipment, service and capacity to move the necessary
quantities of domestically-produced renewable fuel
within the timeframes;
(B)(i) consider the projected costs of moving the
domestically-produced renewable fuel by railroad and
other modes transportation; and
(ii) consider the impact of the projected costs on
the marketability of the domestically-produced
renewable fuel;
(C) identify current and potential impediments to
the reliable transportation and distribution of
adequate supplies of domestically-produced renewable
fuel at reasonable prices, including practices
currently utilized by domestic producers, shippers, and
receivers of renewable fuels;
(D) consider whether adequate competition exists
within and between modes of transportation for the
transportation and distribution of domestically-
produced renewable fuel and, whether inadequate
competition leads to an unfair price for the
transportation and distribution of domestically-
produced renewable fuel or unacceptable service for
transportation of domestically-produced renewable fuel;
(E) consider whether Federal agencies have adequate
legal authority to address instances of inadequate
competition when inadequate competition is found to
prevent domestic producers for renewable fuels from
obtaining a fair and reasonable transportation price or
acceptable service for the transportation and
distribution of domestically-produced renewable fuels;
(F) consider whether Federal agencies have adequate
legal authority to address railroad and transportation
service problems that may be resulting in inadequate
supplies of domestically-produced renewable fuel in any
area of the United States;
(G) consider what transportation infrastructure
capital expenditures may be necessary to ensure the
reliable transportation of adequate supplies of
domestically-produced renewable fuel at reasonable
prices within the United States and which public and
private entities should be responsible for making such
expenditures; and
(H) provide recommendations on ways to facilitate
the reliable transportation of adequate supplies of
domestically-produced renewable fuel at reasonable
prices.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretaries shall jointly submit to the Committee on
Commerce, Science and Transportation, the Committee on Energy and
Natural Resources, and the Committee on Environment and Public Works of
the Senate and the Committee on Transportation and Infrastructure and
the Committee on Energy and Commerce of the House of Representatives a
report that describes the results of the study conducted under
subsection (a).
SEC. 246. FEDERAL FLEET FUELING CENTERS.
(a) In General.--Not later than January 1, 2010, the head of each
Federal agency shall install at least 1 renewable fuel pump at each
Federal fleet fueling center in the United States under the
jurisdiction of the head of the Federal agency.
(b) Report.--Not later than October 31 of the first calendar year
beginning after the date of the enactment of this Act, and each October
31 thereafter, the President shall submit to Congress a report that
describes the progress toward complying with subsection (a), including
identifying--
(1) the number of Federal fleet fueling centers that
contain at least 1 renewable fuel pump; and
(2) the number of Federal fleet fueling centers that do not
contain any renewable fuel pumps.
(c) Department of Defense Facility.--This section shall not apply
to a Department of Defense fueling center with a fuel turnover rate of
less than 100,000 gallons of fuel per year.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
redesignating subsection (s) as subsection (t), redesignating
subsection (r) (relating to conversion assistance for cellulosic
biomass, waste-derived ethanol, approved renewable fuels) as subsection
(s) and by adding the following new subsection at the end thereof:
``(u) Standard Specifications for Biodiesel.--(1) Unless the
American Society for Testing and Materials has adopted a standard for
diesel fuel containing 20 percent biodiesel (commonly known as `B20')
within 1 year after the date of enactment of this subsection, the
Administrator shall initiate a rulemaking to establish a uniform per
gallon fuel standard for such fuel and designate an identification
number so that vehicle manufacturers are able to design engines to use
fuel meeting such standard.
``(2) Unless the American Society for Testing and Materials has
adopted a standard for diesel fuel containing 5 percent biodiesel
(commonly known as `B5') within 1 year after the date of enactment of
this subsection, the Administrator shall initiate a rulemaking to
establish a uniform per gallon fuel standard for such fuel and
designate an identification so that vehicle manufacturers are able to
design engines to use fuel meeting such standard.
``(3) Whenever the Administrator is required to initiate a
rulemaking under paragraph (1) or (2), the Administrator shall
promulgate a final rule within 18 months after the date of the
enactment of this subsection.
``(4) Not later than 180 days after the enactment of this
subsection, the Administrator shall establish an annual inspection and
enforcement program to ensure that diesel fuel containing biodiesel
sold or distributed in interstate commerce meets the standards
established under regulations under this section, including testing and
certification for compliance with applicable standards of the American
Society for Testing and Materials. There are authorized to be
appropriated to carry out the inspection and enforcement program under
this paragraph $3,000,000 for each of fiscal years 2008 through 2010.
``(5) For purposes of this subsection, the term `biodiesel' has the
meaning provided by section 312(f) of Energy Policy Act of 1992 (42
U.S.C. 13220(f)).''.
SEC. 248. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS INFRASTRUCTURE.
(a) In General.--The Secretary, in coordination with the Secretary
of Transportation and in consultation with the Administrator of the
Environmental Protection Agency, shall carry out a program of research,
development, and demonstration relating to existing transportation fuel
distribution infrastructure and new alternative distribution
infrastructure.
(b) Focus.--The program described in subsection (a) shall focus on
the physical and chemical properties of biofuels and efforts to prevent
or mitigate against adverse impacts of those properties in the areas
of--
(1) corrosion of metal, plastic, rubber, cork, fiberglass,
glues, or any other material used in pipes and storage tanks;
(2) dissolving of storage tank sediments;
(3) clogging of filters;
(4) contamination from water or other adulterants or
pollutants;
(5) poor flow properties related to low temperatures;
(6) oxidative and thermal instability in long-term storage
and uses;
(7) microbial contamination;
(8) problems associated with electrical conductivity; and
(9) such other areas as the Secretary considers
appropriate.
Subtitle D--Environmental Safeguards
SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES.
Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f)) is
amended to read as follows:
``(4) The Administrator, upon application of any manufacturer of
any fuel or fuel additive, may waive the prohibitions established under
paragraph (1) or (3) of this subsection or the limitation specified in
paragraph (2) of this subsection, if he determines that the applicant
has established that such fuel or fuel additive or a specified
concentration thereof, and the emission products of such fuel or fuel
additive or specified concentration thereof, will not cause or
contribute to a failure of any emission control device or system (over
the useful life of the motor vehicle, motor vehicle engine, nonroad
engine or nonroad vehicle in which such device or system is used) to
achieve compliance by the vehicle or engine with the emission standards
with respect to which it has been certified pursuant to sections 206
and 213(a). The Administrator shall take final action to grant or deny
an application submitted under this paragraph, after public notice and
comment, within 270 days of the receipt of such an application.''.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING
Subtitle A--Appliance Energy Efficiency
SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.
(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) is amended--
(1) in paragraph (36)--
(A) by striking ``(36) The'' and inserting the
following:
``(36) External power supply.--
``(A) In general.--The''; and
(B) by adding at the end the following:
``(B) Active mode.--The term `active mode' means
the mode of operation when an external power supply is
connected to the main electricity supply and the output
is connected to a load.
``(C) Class a external power supply.--
``(i) In general.--The term `class A
external power supply' means a device that--
``(I) is designed to convert line
voltage AC input into lower voltage AC
or DC output;
``(II) is able to convert to only 1
AC or DC output voltage at a time;
``(III) is sold with, or intended
to be used with, a separate end-use
product that constitutes the primary
load;
``(IV) is contained in a separate
physical enclosure from the end-use
product;
``(V) is connected to the end-use
product via a removable or hard-wired
male/female electrical connection,
cable, cord, or other wiring; and
``(VI) has nameplate output power
that is less than or equal to 250
watts.
``(ii) Exclusions.--The term `class A
external power supply' does not include any
device that--
``(I) requires Federal Food and
Drug Administration listing and
approval as a medical device in
accordance with section 513 of the
Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 360c); or
``(II) powers the charger of a
detachable battery pack or charges the
battery of a product that is fully or
primarily motor operated.
``(D) No-load mode.--The term `no-load mode' means
the mode of operation when an external power supply is
connected to the main electricity supply and the output
is not connected to a load.''; and
(2) by adding at the end the following:
``(52) Detachable battery.--The term `detachable battery'
means a battery that is--
``(A) contained in a separate enclosure from the
product; and
``(B) intended to be removed or disconnected from
the product for recharging.''.
(b) Test Procedures.--Section 323(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6293(b)) is amended by adding at the end
the following:
``(17) Class a external power supplies.--Test procedures
for class A external power supplies shall be based on the `Test
Method for Calculating the Energy Efficiency of Single-Voltage
External AC-DC and AC-AC Power Supplies' published by the
Environmental Protection Agency on August 11, 2004, except that
the test voltage specified in section 4(d) of that test method
shall be only 115 volts, 60 Hz.''.
(c) Efficiency Standards for Class A External Power Supplies.--
Section 325(u) of the Energy Policy and Conservation Act (42 U.S.C.
6295(u)) is amended by adding at the end the following:
``(6) Efficiency standards for class a external power
supplies.--
``(A) In general.--Subject to subparagraphs (B)
through (D), a class A external power supply
manufactured on or after the later of July 1, 2008, or
the date of enactment of this paragraph shall meet the
following standards:
----------------------------------------------------------------------------------------------------------------
``Active Mode
-----------------------------------------------------------------------------------------------------------------
Required Efficiency (decimal equivalent of a
``Nameplate Output percentage)
----------------------------------------------------------------------------------------------------------------
Less than 1 watt 0.5 times the Nameplate Output
----------------------------------------------------------------------------------------------------------------
From 1 watt to not more than 51 watts The sum of 0.09 times the Natural Logarithm
of the Nameplate Output and 0.5
----------------------------------------------------------------------------------------------------------------
Greater than 51 watts 0.85
----------------------------------------------------------------------------------------------------------------
``No-Load Mode
``Nameplate Output Maximum Consumption
----------------------------------------------------------------------------------------------------------------
Not more than 250 watts 0.5 watts
----------------------------------------------------------------------------------------------------------------
``(B) Noncovered supplies.--A class A external
power supply shall not be subject to subparagraph (A)
if the class A external power supply is--
``(i) manufactured during the period
beginning on July 1, 2008, and ending on June
30, 2015; and
``(ii) made available by the manufacturer
as a service part or a spare part for an end-
use product--
``(I) that constitutes the primary
load; and
``(II) was manufactured before July
1, 2008.
``(C) Marking.--Any class A external power supply
manufactured on or after the later of July 1, 2008 or
the date of enactment of this paragraph shall be
clearly and permanently marked in accordance with the
External Power Supply International Efficiency Marking
Protocol, as referenced in the `Energy Star Program
Requirements for Single Voltage External AC-DC and AC-
AC Power Supplies, version 1.1' published by the
Environmental Protection Agency.
``(D) Amendment of standards.--
``(i) Final rule by july 1, 2011.--
``(I) In general.--Not later than
July 1, 2011, the Secretary shall
publish a final rule to determine
whether the standards established under
subparagraph (A) should be amended.
``(II) Administration.--The final
rule shall--
``(aa) contain any amended
standards; and
``(bb) apply to products
manufactured on or after July
1, 2013.
``(ii) Final rule by july 1, 2015.--
``(I) In general.--Not later than
July 1, 2015 the Secretary shall
publish a final rule to determine
whether the standards then in effect
should be amended.
``(II) Administration.--The final
rule shall--
``(aa) contain any amended
standards; and
``(bb) apply to products
manufactured on or after July
1, 2017.
``(7) End-use products.--An energy conservation standard
for external power supplies shall not constitute an energy
conservation standard for the separate end-use product to which
the external power supplies is connected.''.
SEC. 302. UPDATING APPLIANCE TEST PROCEDURES.
(a) Consumer Appliances.--Section 323(b)(1) of the Energy Policy
and Conservation Act (42 U.S.C. 6293(b)(1)) is amended by striking
``(1)'' and all that follows through the end of the paragraph and
inserting the following:
``(1) Test procedures.--
``(A) Amendment.--At least once every 7 years, the
Secretary shall review test procedures for all covered
products and--
``(i) amend test procedures with respect to
any covered product, if the Secretary
determines that amended test procedures would
more accurately or fully comply with the
requirements of paragraph (3); or
``(ii) publish notice in the Federal
Register of any determination not to amend a
test procedure.''.
(b) Industrial Equipment.--Section 343(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)) is amended by striking ``(a)'' and
all that follows through the end of paragraph (1) and inserting the
following:
``(a) Prescription by Secretary; Requirements.--
``(1) Test procedures.--
``(A) Amendment.--At least once every 7 years, the
Secretary shall conduct an evaluation of each class of
covered equipment and--
``(i) if the Secretary determines that
amended test procedures would more accurately
or fully comply with the requirements of
paragraphs (2) and (3), shall prescribe test
procedures for the class in accordance with
this section; or
``(ii) shall publish notice in the Federal
Register of any determination not to amend a
test procedure.''.
SEC. 303. RESIDENTIAL BOILERS.
Section 325(f) of the Energy Policy and Conservation Act (42 U.S.C.
6295(f)) is amended--
(1) in the subsection heading, by inserting ``and Boilers''
after ``Furnaces'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following:
``(3) Boilers.--
``(A) In general.--Subject to subparagraphs (B) and
(C), boilers manufactured on or after September 1,
2012, shall meet the following requirements:
----------------------------------------------------------------------------------------------------------------
Minimum Annual Fuel Utilization
Boiler Type Efficiency Design Requirements
----------------------------------------------------------------------------------------------------------------
Gas Hot Water......................... 82% No Constant Burning Pilot,
Automatic Means for Adjusting
Water Temperature
----------------------------------------------------------------------------------------------------------------
Gas Steam............................ 80% No Constant Burning Pilot
----------------------------------------------------------------------------------------------------------------
Oil Hot Water......................... 84% Automatic Means for Adjusting
Temperature
----------------------------------------------------------------------------------------------------------------
Oil Steam............................ 82% None
----------------------------------------------------------------------------------------------------------------
Electric Hot Water.................... None Automatic Means for Adjusting
Temperature
----------------------------------------------------------------------------------------------------------------
Electric Steam........................ None None
----------------------------------------------------------------------------------------------------------------
``(B) Automatic means for adjusting water
temperature.--
``(i) In general.--The manufacturer shall
equip each gas, oil, and electric hot water
boiler (other than a boiler equipped with a
tankless domestic water heating coil) with
automatic means for adjusting the temperature
of the water supplied by the boiler to ensure
that an incremental change in inferred heat
load produces a corresponding incremental
change in the temperature of water supplied.
``(ii) Single input rate.--For a boiler
that fires at 1 input rate, the requirements of
this subparagraph may be satisfied by providing
an automatic means that allows the burner or
heating element to fire only when the means has
determined that the inferred heat load cannot
be met by the residual heat of the water in the
system.
``(iii) No inferred heat load.--When there
is no inferred heat load with respect to a hot
water boiler, the automatic means described in
clause (i) and (ii) shall limit the temperature
of the water in the boiler to not more than 140
degrees Fahrenheit.
``(iv) Operation.--A boiler described in
clause (i) or (ii) shall be operable only when
the automatic means described in clauses (i),
(ii), and (iii) is installed.
``(C) Exception.--A boiler that is manufactured to
operate without any need for electricity or any
electric connection, electric gauges, electric pumps,
electric wires, or electric devices shall not be
required to meet the requirements of this paragraph.''.
SEC. 304. FURNACE FAN STANDARD PROCESS.
Paragraph (4)(D) of section 325(f) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(f)) (as redesignated by section
303(4)) is amended by striking ``the Secretary may'' and inserting
``not later than December 31, 2013, the Secretary shall''.
SEC. 305. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND CLARIFYING
STATE AUTHORITY.
(a) Consumer Appliances.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended by striking subsection (m)
and inserting the following:
``(m) Amendment of Standards.--
``(1) In general.--Not later than 6 years after issuance of
any final rule establishing or amending a standard, as required
for a product under this part, the Secretary shall publish--
``(A) a notice of the determination of the
Secretary that standards for the product do not need to
be amended, based on the criteria established under
subsection (n)(2); or
``(B) a notice of proposed rulemaking including new
proposed standards based on the criteria established
under subsection (o) and the procedures established
under subsection (p).
``(2) Notice.--If the Secretary publishes a notice under
paragraph (1), the Secretary shall--
``(A) publish a notice stating that the analysis of
the Department is publicly available; and
``(B) provide an opportunity for written comment.
``(3) Amendment of standard; new determination.--
``(A) Amendment of standard.--Not later than 2
years after a notice is issued under paragraph (1)(B),
the Secretary shall publish a final rule amending the
standard for the product.
``(B) New determination.--Not later than 3 years
after a determination under paragraph (1)(A), the
Secretary shall make a new determination and
publication under subparagraph (A) or (B) of paragraph
(1).
``(4) Application to products.--
``(A) In general.--Except as provided in
subparagraph (B), an amendment prescribed under this
subsection shall apply to--
``(i) with respect to refrigerators,
refrigerator-freezers, freezers, room air
conditioners, dishwashers, clothes washers,
clothes dryers, fluorescent lamp ballasts, and
kitchen ranges and ovens, such a product that
is manufactured after the date that is 3 years
after publication of the final rule
establishing an applicable standard; and
``(ii) with respect to central air
conditioners, heat pumps, water heaters, pool
heaters, direct heating equipment, and
furnaces, such a product that is manufactured
after the date that is 5 years after
publication of the final rule establishing an
applicable standard.
``(B) Other new standards.--A manufacturer shall
not be required to apply new standards to a product
with respect to which other new standards have been
required during the prior 6-year period.
``(5) Reports.--The Secretary shall promptly submit to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate--
``(A) a progress report every 180 days on
compliance with this section, including a specific plan
to remedy any failures to comply with deadlines for
action established under this section; and
``(B) all required reports to the Court or to any
party to the Consent Decree in State of New York v
Bodman, Consolidated Civil Actions No.05 Civ. 7807 and
No.05 Civ. 7808.''.
(b) Industrial Equipment.--Section 342(a)(6) of the Energy Policy
and Conservation Act (42 U.S.C. 6313(a)(6)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by striking ``(6)(A)(i)'' and all that follows through
the end of subparagraph (B) and inserting the following:
``(6) Amended energy efficiency standards.--
``(A) In general.--
``(i) Analysis of potential energy
savings.--If ASHRAE/IES Standard 90.1 is
amended with respect to any small commercial
package air conditioning and heating equipment,
large commercial package air conditioning and
heating equipment, very large commercial
package air conditioning and heating equipment,
packaged terminal air conditioners, packaged
terminal heat pumps, warm-air furnaces,
packaged boilers, storage water heaters,
instantaneous water heaters, or unfired hot
water storage tanks, not later than 180 days
after the amendment of the standard, the
Secretary shall publish in the Federal Register
for public comment an analysis of the energy
savings potential of amended energy efficiency
standards.
``(ii) Amended uniform national standard
for products.--
``(I) In general.--Except as
provided in subclause (II), not later
than 18 months after the date of
publication of the amendment to the
ASHRAE/IES Standard 90.1 for a product
described in clause (i), the Secretary
shall establish an amended uniform
national standard for the product at
the minimum level specified in the
amended ASHRAE/IES Standard 90.1.
``(II) More stringent standard.--
Subclause (I) shall not apply if the
Secretary determines, by rule published
in the Federal Register, and supported
by clear and convincing evidence, that
adoption of a uniform national standard
more stringent than the amended ASHRAE/
IES Standard 90.1 for the product would
result in significant additional
conservation of energy and is
technologically feasible and
economically justified.
``(B) Rule.--If the Secretary makes a determination
described in clause (ii)(II) for a product described in
clause (i), not later than 30 months after the date of
publication of the amendment to the ASHRAE/IES Standard
90.1 for the product, the Secretary shall issue the
rule establishing the amended standard.
``(C) Amendment of standard.--
``(i) In general.--Not later than 6 years
after issuance of any final rule establishing
or amending a standard, as required for a
product under this part, the Secretary shall
publish--
``(I) a notice of the determination
of the Secretary that standards for the
product do not need to be amended,
based on the criteria established under
subparagraph (A); or
``(II) a notice of proposed
rulemaking including new proposed
standards based on the criteria and
procedures established under
subparagraph (B).
``(ii) Notice.--If the Secretary publishes
a notice under clause (i), the Secretary
shall--
``(I) publish a notice stating that
the analysis of the Department is
publicly available; and
``(II) provide an opportunity for
written comment.
``(iii) Amendment of standard; new
determination.--
``(I) Amendment of standard.--Not
later than 2 years after a notice is
issued under clause (i)(II), the
Secretary shall publish a final rule
amending the standard for the product.
``(II) New determination.--Not
later than 3 years after a
determination under clause (i)(I), the
Secretary shall make a new
determination and publication under
subclause (I) or (II) of clause (i).
``(iv) Application to products.--An
amendment prescribed under this subsection
shall apply to products manufactured after a
date that is the later of--
``(I) the date that is 3 years
after publication of the final rule
establishing a new standard; or
``(II) the date that is 6 years
after the effective date of the current
standard for a covered product.
``(v) Reports.--The Secretary shall
promptly submit to the Committee on Energy and
Commerce of the House of Representatives and
the Committee on Energy and Natural Resources
of the Senate a progress report every 180 days
on compliance with this subparagraph, including
a specific plan to remedy any failures to
comply with deadlines for action established
under this subparagraph.''.
SEC. 306. REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR CONDITIONERS,
AND HEAT PUMPS.
(a) In General.--Section 325(o) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(o)) is amended by adding at the end
the following:
``(6) Regional standards for furnaces, central air
conditioners, and heat pumps.--
``(A) In general.--In any rulemaking to establish a
new or amended standard, the Secretary may consider the
establishment of separate standards by geographic
region for furnaces (except boilers), central air
conditioners, and heat pumps.
``(B) National and regional standards.--
``(i) National standard.--If the Secretary
establishes a regional standard for a product,
the Secretary shall establish a base national
standard for the product.
``(ii) Regional standards.--If the
Secretary establishes a regional standard for a
product, the Secretary may establish more
restrictive standards for the product by
geographic region as follows:
``(I) For furnaces, the Secretary
may establish 1 additional standard
that is applicable in a geographic
region defined by the Secretary.
``(II) For any cooling product, the
Secretary may establish 1 or 2
additional standards that are
applicable in 1 or 2 geographic regions
as may be defined by the Secretary.
``(C) Boundaries of geographic regions.--
``(i) In general.--Subject to clause (ii),
the boundaries of additional geographic regions
established by the Secretary under this
paragraph shall include only contiguous States.
``(ii) Alaska and hawaii.--The States of
Alaska and Hawaii may be included under this
paragraph in a geographic region that the
States are not contiguous to.
``(iii) Individual states.--Individual
States shall be placed only into a single
region under this paragraph.
``(D) Prerequisites.--In establishing additional
regional standards under this paragraph, the Secretary
shall--
``(i) establish additional regional
standards only if the Secretary determines
that--
``(I) the establishment of
additional regional standards will
produce significant energy savings in
comparison to establishing only a
single national standard; and
``(II) the additional regional
standards are economically justified
under this paragraph; and
``(ii) consider the impact of the
additional regional standards on consumers,
manufacturers, and other market participants,
including product distributors, dealers,
contractors, and installers.
``(E) Application; effective date.--
``(i) Base national standard.--Any base
national standard established for a product
under this paragraph shall--
``(I) be the minimum standard for
the product; and
``(II) apply to all products
manufactured or imported into the
United States on and after the
effective date for the standard.
``(ii) Regional standards.--Any additional
and more restrictive regional standard
established for a product under this paragraph
shall apply to any such product installed on or
after the effective date of the standard in
States in which the Secretary has designated
the standard to apply.
``(F) Continuation of regional standards.--
``(i) In general.--In any subsequent
rulemaking for any product for which a regional
standard has been previously established, the
Secretary shall determine whether to continue
the establishment of separate regional
standards for the product.
``(ii) Regional standard no longer
appropriate.--Except as provided in clause
(iii), if the Secretary determines that
regional standards are no longer appropriate
for a product, beginning on the effective date
of the amended standard for the product--
``(I) there shall be 1 base
national standard for the product with
Federal enforcement; and
``(II) State authority for
enforcing a regional standard for the
product shall terminate.
``(iii) Regional standard appropriate but
standard or region changed.--
``(I) State no longer contained in
region.--Subject to subclause (III), if
a State is no longer contained in a
region in which a regional standard
that is more stringent than the base
national standard applies, the
authority of the State to enforce the
regional standard shall terminate.
``(II) Standard or region revised
so that existing regional standard
equals base national standard.--If the
Secretary revises a base national
standard for a product or the
geographic definition of a region so
that an existing regional standard for
a State is equal to the revised base
national standard--
``(aa) the authority of the
State to enforce the regional
standard shall terminate on the
effective date of the revised
base national standard; and
``(bb) the State shall be
subject to the revised base
national standard.
``(III) Standard or region revised
so that existing regional standard
equals base national standard.--If the
Secretary revises a base national
standard for a product or the
geographic definition of a region so
that the standard for a State is lower
than the previously approved regional
standard, the State may continue to
enforce the previously approved
standard level.
``(iv) Waiver of federal preemption.--
Nothing in this paragraph diminishes the
authority of a State to enforce a State
regulation for which a waiver of Federal
preemption has been granted under section
327(d).
``(G) Enforcement.--
``(i) Base national standard.--
``(I) In general.--The Secretary
shall enforce any base national
standard.
``(II) Trade association
certification programs.--In enforcing
the base national standard, the
Secretary shall use, to the maximum
extent practicable, national standard
nationally recognized certification
programs of trade associations.
``(ii) Regional standards.--
``(I) Enforcement plan.--Not later
than 90 days after the date of the
issuance of a final rule that
establishes a regional standard, the
Secretary shall initiate a rulemaking
to develop and implement an effective
enforcement plan for regional standards
for the products that are covered by
the final rule.
``(II) Responsible entities.--Any
rules regarding enforcement of a
regional standard shall clearly specify
which entities are legally responsible
for compliance with the standards and
for making any required information or
labeling disclosures.
``(III) Final rule.--Not later than
15 months after the date of the
issuance of a final rule that
establishes a regional standard for a
product, the Secretary shall promulgate
a final rule covering enforcement of
regional standards for the product.
``(IV) Incorporation by states and
localities.--A State or locality may
incorporate any Federal regional
standard into State or local building
codes or State appliance standards.
``(V) State enforcement.--A State
agency may seek enforcement of a
Federal regional standard in a Federal
court of competent jurisdiction.
``(H) Information disclosure.--
``(i) In general.--Not later than 90 days
after the date of the publication of a final
rule that establishes a regional standard for a
product, the Federal Trade Commission shall
undertake a rulemaking to determine the
appropriate 1 or more methods for disclosing
information so that consumers, distributors,
contractors, and installers can easily
determine whether a specific piece of equipment
that is installed in a specific building is in
conformance with the regional standard that
applies to the building.
``(ii) Methods.--A method of disclosing
information under clause (i) may include--
``(I) modifications to the Energy
Guide label; or
``(II) other methods that make it
easy for consumers and installers to
use and understand at the point of
installation.
``(iii) Completion of rulemaking.--The
rulemaking shall be completed not later 15
months after the date of the publication of a
final rule that establishes a regional standard
for a product.''.
(b) Prohibited Acts.--Section 332(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' after the
semicolon at the end;
(2) in paragraph (5), by striking ``part.'' and inserting
``part, except to the extent that the new covered product is
covered by a regional standard that is more stringent than the
base national standard; or''; and
(3) by adding at the end the following:
``(6) for any manufacturer or private labeler to knowingly
sell a product to a distributor, contractor, or dealer with
knowledge that the entity routinely violates any regional
standard applicable to the product.''.
(c) Consideration of Prices and Operating Patterns.--Section
342(a)(6)(B) of the Energy Policy and Conservation Act (42 U.S.C.
6313(a)(6)(B)) is amended by adding at the end the following:
``(iii) Consideration of prices and
operating patterns.--If the Secretary is
considering revised standards for air-cooled 3-
phase central air conditioners and central air
conditioning heat pumps with less 65,000 Btu
per hour (cooling capacity), the Secretary
shall use commercial energy prices and
operating patterns in all analyses conducted by
the Secretary.''.
SEC. 307. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.
Section 325(p) of the Energy Policy and Conservation Act (42 U.S.C.
6925(p)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively.
SEC. 308. EXPEDITED RULEMAKINGS.
(a) Procedure for Prescribing New or Amended Standards.--Section
325(p) of the Energy Policy and Conservation Act (42 U.S.C. 6295(p))
(as amended by section 307) is amended by adding at the end the
following:
``(4) Direct final rules.--
``(A) In general.--On receipt of a statement that
is submitted jointly by interested persons that are
fairly representative of relevant points of view
(including representatives of manufacturers of covered
products, States, and efficiency advocates), as
determined by the Secretary, and contains
recommendations with respect to an energy or water
conservation standard--
``(i) if the Secretary determines that the
recommended standard contained in the statement
is in accordance with subsection (o) or section
342(a)(6)(B), as applicable, the Secretary may
issue a final rule that establishes an energy
or water conservation standard and is published
simultaneously with a notice of proposed
rulemaking that proposes a new or amended
energy or water conservation standard that is
identical to the standard established in the
final rule to establish the recommended
standard (referred to in this paragraph as a
`direct final rule'); or
``(ii) if the Secretary determines that a
direct final rule cannot be issued based on the
statement, the Secretary shall publish a notice
of the determination, together with an
explanation of the reasons for the
determination.
``(B) Public comment.--The Secretary shall solicit
public comment for a period of at least 110 days with
respect to each direct final rule issued by the
Secretary under subparagraph (A)(i).
``(C) Withdrawal of direct final rules.--
``(i) In general.--Not later than 120 days
after the date on which a direct final rule
issued under subparagraph (A)(i) is published
in the Federal Register, the Secretary shall
withdraw the direct final rule if--
``(I) the Secretary receives 1 or
more adverse public comments relating
to the direct final rule under
subparagraph (B)(i) or any alternative
joint recommendation; and
``(II) based on the rulemaking
record relating to the direct final
rule, the Secretary determines that
such adverse public comments or
alternative joint recommendation may
provide a reasonable basis for
withdrawing the direct final rule under
subsection (o), section 342(a)(6)(B),
or any other applicable law.
``(ii) Action on withdrawal.--On withdrawal
of a direct final rule under clause (i), the
Secretary shall--
``(I) proceed with the notice of
proposed rulemaking published
simultaneously with the direct final
rule as described in subparagraph
(A)(i); and
``(II) publish in the Federal
Register the reasons why the direct
final rule was withdrawn.
``(iii) Treatment of withdrawn direct final
rules.--A direct final rule that is withdrawn
under clause (i) shall not be considered to be
a final rule for purposes of subsection (o).
``(D) Effect of paragraph.--Nothing in this
paragraph authorizes the Secretary to issue a direct
final rule based solely on receipt of more than 1
statement containing recommended standards relating to
the direct final rule.''.
(b) Conforming Amendment.--Section 345(b)(1) of the Energy Policy
and Conservation Act (42 U.S.C. 6316(b)(1)) is amended in the first
sentence by inserting ``section 325(p)(5),'' after ``The provisions
of''.
SEC. 309. BATTERY CHARGERS.
Section 325(u)(1)(E) of the Energy Policy and Conservation Act (42
U.S.C. 6295(u)(1)(E)) is amended--
(1) by striking ``(E)(i) Not'' and inserting the following:
``(E) External power supplies and battery
chargers.--
``(i) Energy conservation standards.--
``(I) External power supplies.--
Not'';
(2) by striking ``3 years'' and inserting ``2 years'';
(3) by striking ``battery chargers and'' each place it
appears; and
(4) by adding at the end the following:
``(II) Battery chargers.--Not later
than July 1, 2011, the Secretary shall
issue a final rule that prescribes
energy conservation standards for
battery chargers or classes of battery
chargers or determine that no energy
conservation standard is technically
feasible and economically justified.''.
SEC. 310. STANDBY MODE.
Section 325 of the Energy Policy and Conservation Act (42 U.S.C.
6295) is amended--
(1) in subsection (u)--
(A) by striking paragraphs (2), (3), and (4); and
(B) by redesignating paragraph (5) and (6) as
paragraphs (2) and (3), respectively;
(2) by redesignating subsection (gg) as subsection (hh);
(3) by inserting after subsection (ff) the following:
``(gg) Standby Mode Energy Use.--
``(1) Definitions.--
``(A) In general.--Unless the Secretary determines
otherwise pursuant to subparagraph (B), in this
subsection:
``(i) Active mode.--The term `active mode'
means the condition in which an energy-using
product--
``(I) is connected to a main power
source;
``(II) has been activated; and
``(III) provides 1 or more main
functions.
``(ii) Off mode.--The term `off mode' means
the condition in which an energy-using
product--
``(I) is connected to a main power
source; and
``(II) is not providing any standby
or active mode function.
``(iii) Standby mode.--The term `standby
mode' means the condition in which an energy-
using product--
``(I) is connected to a main power
source; and
``(II) offers 1 or more of the
following user-oriented or protective
functions:
``(aa) To facilitate the
activation or deactivation of
other functions (including
active mode) by remote switch
(including remote control),
internal sensor, or timer.
``(bb) Continuous
functions, including
information or status displays
(including clocks) or sensor-
based functions.
``(B) Amended definitions.--The Secretary may, by
rule, amend the definitions under subparagraph (A),
taking into consideration the most current versions of
Standards 62301 and 62087 of the International
Electrotechnical Commission.
``(2) Test procedures.--
``(A) In general.--Test procedures for all covered
products shall be amended pursuant to section 323 to
include standby mode and off mode energy consumption,
taking into consideration the most current versions of
Standards 62301 and 62087 of the International
Electrotechnical Commission, with such energy
consumption integrated into the overall energy
efficiency, energy consumption, or other energy
descriptor for each covered product, unless the
Secretary determines that--
``(i) the current test procedures for a
covered product already fully account for and
incorporate the standby mode and off mode
energy consumption of the covered product; or
``(ii) such an integrated test procedure is
technically infeasible for a particular covered
product, in which case the Secretary shall
prescribe a separate standby mode and off mode
energy use test procedure for the covered
product, if technically feasible.
``(B) Deadlines.--The test procedure amendments
required by subparagraph (A) shall be prescribed in a
final rule no later than the following dates:
``(i) December 31, 2008, for battery
chargers and external power supplies.
``(ii) March 31, 2009, for clothes dryers,
room air conditioners, and fluorescent lamp
ballasts.
``(iii) June 30, 2009, for residential
clothes washers.
``(iv) September 30, 2009, for residential
furnaces and boilers.
``(v) March 31, 2010, for residential water
heaters, direct heating equipment, and pool
heaters.
``(vi) March 31, 2011, for residential
dishwashers, ranges and ovens, microwave ovens,
and dehumidifiers.
``(C) Prior product standards.--The test procedure
amendments adopted pursuant to subparagraph (B) shall
not be used to determine compliance with product
standards established prior to the adoption of the
amended test procedures.
``(3) Incorporation into standard.--
``(A) In general.--Subject to subparagraph (B),
based on the test procedures required under paragraph
(2), any final rule establishing or revising a standard
for a covered product, adopted after July 1, 2010,
shall incorporate standby mode and off mode energy use
into a single amended or new standard, pursuant to
subsection (o), if feasible.
``(B) Separate standards.--If not feasible, the
Secretary shall prescribe within the final rule a
separate standard for standby mode and off mode energy
consumption, if justified under subsection (o).''; and
(4) in paragraph (2) of subsection (hh) (as redesignated by
paragraph (2)) , by striking ``(ff)'' each place it appears and
inserting ``(gg)''.
SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES.
(a) Appliances.--
(1) Dehumidifiers.--Section 325(cc) of the Energy Policy
and Conservation Act (42 U.S.C. 6295(cc)) is amended by
striking paragraph (2) and inserting the following:
``(2) Dehumidifiers manufactured on or after october 1,
2012.--Dehumidifiers manufactured on or after October 1, 2012,
shall have an Energy Factor that meets or exceeds the following
values:
``Product Capacity (pints/day): Minimum Energy Factor (liters/
KWh)
Up to 35.00.......................... 1.35
35.01-45.00.......................... 1.50
45.01-54.00.......................... 1.60
54.01-75.00.......................... 1.70
Greater than 75.00................... 2.5.''.
(2) Residential clothes washers and residential
dishwashers.--Section 325(g) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(g)) is amended by adding at
the end the following:
``(9) Residential clothes washers manufactured on or after
january 1, 2011.--
``(A) In general.--A top-loading or front-loading
standard-size residential clothes washer manufactured
on or after January 1, 2011, shall have--
``(i) a Modified Energy Factor of at least
1.26; and
``(ii) a water factor of not more than 9.5.
``(B) Amendment of standards.--
``(i) In general.--Not later than December
31, 2011, the Secretary shall publish a final
rule determining whether to amend the standards
in effect for clothes washers manufactured on
or after January 1, 2015.
``(ii) Amended standards.--The final rule
shall contain any amended standards.
``(10) Residential dishwashers manufactured on or after
january 1, 2010.--
``(A) In general.--A dishwasher manufactured on or
after January 1, 2010, shall--
``(i) for a standard size dishwasher not
exceed 355 kwh/year and 6.5 gallon per cycle;
and
``(ii) for a compact size dishwasher not
exceed 260 kwh/year and 4.5 gallons per cycle.
``(B) Amendment of standards.--
``(i) In general.--Not later than January
1, 2015, the Secretary shall publish a final
rule determining whether to amend the standards
for dishwashers manufactured on or after
January 1, 2018.
``(ii) Amended standards.--The final rule
shall contain any amended standards.''.
(3) Refrigerators and freezers.--Section 325(b) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(b)) is
amended by adding at the end the following:
``(4) Refrigerators and freezers manufactured on or after
january 1, 2014.--
``(A) In general.--Not later than December 31,
2010, the Secretary shall publish a final rule
determining whether to amend the standards in effect
for refrigerators, refrigerator-freezers, and freezers
manufactured on or after January 1, 2014.
``(B) Amended standards.--The final rule shall
contain any amended standards.''.
(b) Energy Star.--Section 324A(d)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294a(d)(2)) is amended by striking
``January 1, 2010'' and inserting ``July 1, 2009''.
SEC. 312. WALK-IN COOLERS AND WALK-IN FREEZERS.
(a) Definitions.--Section 340 of the Energy Policy and Conservation
Act (42 U.S.C. 6311) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (G) through (K)
as subparagraphs (H) through (L), respectively; and
(B) by inserting after subparagraph (F) the
following:
``(G) Walk-in coolers and walk-in freezers.'';
(2) by redesignating paragraphs (20) and (21) as paragraphs
(21) and (22), respectively; and
(3) by inserting after paragraph (19) the following:
``(20) Walk-in cooler; walk-in freezer.--
``(A) In general.--The terms `walk-in cooler' and
`walk-in freezer' mean an enclosed storage space
refrigerated to temperatures, respectively, above, and
at or below 32 degrees Fahrenheit that can be walked
into, and has a total chilled storage area of less than
3,000 square feet.
``(B) Exclusion.--The terms `walk-in cooler' and
`walk-in freezer' do not include products designed and
marketed exclusively for medical, scientific, or
research purposes.''.
(b) Standards.--Section 342 of the Energy Policy and Conservation
Act (42 U.S.C. 6313) is amended by adding at the end the following:
``(f) Walk-in Coolers and Walk-in Freezers.--
``(1) In general.--Subject to paragraphs (2) through (5),
each walk-in cooler or walk-in freezer manufactured on or after
January 1, 2009, shall--
``(A) have automatic door closers that firmly close
all walk-in doors that have been closed to within 1
inch of full closure, except that this subparagraph
shall not apply to doors wider than 3 feet 9 inches or
taller than 7 feet;
``(B) have strip doors, spring hinged doors, or
other method of minimizing infiltration when doors are
open;
``(C) contain wall, ceiling, and door insulation of
at least R-25 for coolers and R-32 for freezers, except
that this subparagraph shall not apply to glazed
portions of doors nor to structural members;
``(D) contain floor insulation of at least R-28 for
freezers;
``(E) for evaporator fan motors of under 1
horsepower and less than 460 volts, use--
``(i) electronically commutated motors
(brushless direct current motors); or
``(ii) 3-phase motors;
``(F) for condenser fan motors of under 1
horsepower, use--
``(i) electronically commutated motors;
``(ii) permanent split capacitor-type
motors; or
``(iii) 3-phase motors; and
``(G) for all interior lights, use light sources
with an efficacy of 40 lumens per watt or more,
including ballast losses (if any), except that light
sources with an efficacy of 40 lumens per watt or less,
including ballast losses (if any), may be used in
conjunction with a timer or device that turns off the
lights within 15 minutes of when the walk-in cooler or
walk-in freezer is not occupied by people.
``(2) Electronically commutated motors.--
``(A) In general.--The requirements of paragraph
(1)(E)(i) for electronically commutated motors shall
take effect January 1, 2009, unless, prior to that
date, the Secretary determines that such motors are
only available from 1 manufacturer.
``(B) Other types of motors.--In carrying out
paragraph (1)(E)(i) and subparagraph (A), the Secretary
may allow other types of motors if the Secretary
determines that, on average, those other motors use no
more energy in evaporator fan applications than
electronically commutated motors.
``(C) Maximum energy consumption level.--The
Secretary shall establish the maximum energy
consumption level under subparagraph (B) not later than
January 1, 2010.
``(3) Additional specifications.--Each walk-in cooler or
walk-in freezer with transparent reach-in doors manufactured on
or after January 1, 2009, shall also meet the following
specifications:
``(A) Transparent reach-in doors for walk-in
freezers and windows in walk-in freezer doors shall be
of triple-pane glass with either heat-reflective
treated glass or gas fill.
``(B) Transparent reach-in doors for walk-in
coolers and windows in walk-in cooler doors shall be--
``(i) double-pane glass with heat-
reflective treated glass and gas fill; or
``(ii) triple-pane glass with either heat-
reflective treated glass or gas fill.
``(C) If the appliance has an antisweat heater
without antisweat heat controls, the appliance shall
have a total door rail, glass, and frame heater power
draw of not more than 7.1 watts per square foot of door
opening (for freezers) and 3.0 watts per square foot of
door opening (for coolers).
``(D) If the appliance has an antisweat heater with
antisweat heat controls, and the total door rail,
glass, and frame heater power draw is more than 7.1
watts per square foot of door opening (for freezers)
and 3.0 watts per square foot of door opening (for
coolers), the antisweat heat controls shall reduce the
energy use of the antisweat heater in a quantity
corresponding to the relative humidity in the air
outside the door or to the condensation on the inner
glass pane.
``(4) Performance-based standards.--
``(A) In general.--Not later than January 1, 2012,
the Secretary shall publish performance-based standards
for walk-in coolers and walk-in freezers that achieve
the maximum improvement in energy that the Secretary
determines is technologically feasible and economically
justified.
``(B) Application.--
``(i) In general.--Except as provided in
clause (ii), the standards shall apply to
products described in subparagraph (A) that are
manufactured beginning on the date that is 3
years after the final rule is published.
``(ii) Delayed effective date.--If the
Secretary determines, by rule, that a 3-year
period is inadequate, the Secretary may
establish an effective date for products
manufactured beginning on the date that is not
more than 5 years after the date of publication
of a final rule for the products.
``(5) Amendment of standards.--
``(A) In general.--Not later than January 1, 2020,
the Secretary shall publish a final rule to determine
if the standards established under paragraph (4) should
be amended.
``(B) Application.--
``(i) In general.--Except as provided in
clause (ii), the rule shall provide that the
standards shall apply to products manufactured
beginning on the date that is 3 years after the
final rule is published.
``(ii) Delayed effective date.--If the
Secretary determines, by rule, that a 3-year
period is inadequate, the Secretary may
establish an effective date for products
manufactured beginning on the date that is not
more than 5 years after the date of publication
of a final rule for the products.''.
(c) Test Procedures.--Section 343(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6314(a)) is amended by adding at the end
the following:
``(9) Walk-in coolers and walk-in freezers.--
``(A) In general.--For the purpose of test
procedures for walk-in coolers and walk-in freezers:
``(i) The R value shall be the 1/K factor
multiplied by the thickness of the panel.
``(ii) The K factor shall be based on ASTM
test procedure C518-2004.
``(iii) For calculating the R value for
freezers, the K factor of the foam at 20F
(average foam temperature) shall be used.
``(iv) For calculating the R value for
coolers, the K factor of the foam at 55F
(average foam temperature) shall be used.
``(B) Test procedure.--
``(i) In general.--Not later than January
1, 2010, the Secretary shall establish a test
procedure to measure the energy-use of walk-in
coolers and walk-in freezers.
``(ii) Computer modeling.--The test
procedure may be based on computer modeling, if
the computer model or models have been verified
using the results of laboratory tests on a
significant sample of walk-in coolers and walk-
in freezers.''.
(d) Labeling.--Section 344(e) of the Energy Policy and Conservation
Act (42 U.S.C. 6315(e)) is amended by inserting ``walk-in coolers and
walk-in freezers,'' after ``commercial clothes washers,'' each place it
appears.
(e) Administration, Penalties, Enforcement, and Preemption.--
Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 6316)
is amended--
(1) by striking ``subparagraphs (B), (C), (D), (E), and
(F)'' each place it appears and inserting ``subparagraphs (B)
through (G)''; and
(2) by adding at the end the following:
``(h) Walk-in Coolers and Walk-in Freezers.--
``(1) Covered types.--
``(A) Relationship to other law.--
``(i) In general.--Except as otherwise
provided in this subsection, section 327 shall
apply to walk-in coolers and walk-in freezers
for which standards have been established under
paragraphs (1), (2), and (3) of section 342(f)
to the same extent and in the same manner as
the section applies under part A on the date of
enactment of this subsection.
``(ii) State standards.--Any State standard
prescribed before the date of enactment of this
subsection shall not be preempted until the
standards established under paragraphs (1) and
(2) of section 342(f) take effect.
``(B) Administration.--In applying section 327 to
equipment under subparagraph (A), paragraphs (1), (2),
and (3) of subsection (a) shall apply.
``(2) Final rule not timely.--
``(A) In general.--If the Secretary does not issue
a final rule for a specific type of walk-in cooler or
walk-in freezer within the time frame established under
paragraph (4) or (5) of section 342(f), subsections (b)
and (c) of section 327 shall no longer apply to the
specific type of walk-in cooler or walk-in freezer
during the period--
``(i) beginning on the day after the
scheduled date for a final rule; and
``(ii) ending on the date on which the
Secretary publishes a final rule covering the
specific type of walk-in cooler or walk-in
freezer.
``(B) State standards.--Any State standard issued
before the publication of the final rule shall not be
preempted until the standards established in the final
rule take effect.
``(3) California.--Any standard issued in the State of
California before January 1, 2011, under title 20 of the
California Code of Regulations, that refers to walk-in coolers
and walk-in freezers, for which standards have been established
under paragraphs (1), (2), and (3) of section 342(f), shall not
be preempted until the standards established under section
342(f)(3) take effect.''.
SEC. 313. ELECTRIC MOTOR EFFICIENCY STANDARDS.
(a) Definitions.--Section 340(13) of the Energy Policy and
Conservation Act (42 U.S.C. 6311(13)) is amended--
(1) by redesignating subparagraphs (B) through (H) as
subparagraphs (C) through (I), respectively; and
(2) by striking ``(13)(A)'' and all that follows through
the end of subparagraph (A) and inserting the following:
``(13) Electric motor.--
``(A) General purpose electric motor (subtype i).--
The term `general purpose electric motor (subtype I)'
means any motor that meets the definition of `General
Purpose' as established in the final rule issued by the
Department of Energy entitled `Energy Efficiency
Program for Certain Commercial and Industrial
Equipment: Test Procedures, Labeling, and Certification
Requirements for Electric Motors' (10 C.F.R. 431), as
in effect on the date of enactment of the Energy
Independence and Security Act of 2007.
``(B) General purpose electric motor (subtype
ii).--The term `general purpose electric motor (subtype
II)' means motors incorporating the design elements of
a general purpose electric motor (subtype I) that are
configured as 1 of the following:
``(i) A U-Frame Motor.
``(ii) A Design C Motor.
``(iii) A close-coupled pump motor.
``(iv) A Footless motor.
``(v) A vertical solid shaft normal thrust
motor (as tested in a horizontal
configuration).
``(vi) An 8-pole motor (900 rpm).
``(vii) A poly-phase motor with voltage of
not more than 600 volts (other than 230 or 460
volts.''.
(b) Standards.--
(1) Amendment.--Section 342(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(b)) is amended--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) Electric motors.--
``(A) General purpose electric motors (subtype
i).--Except as provided in subparagraph (B), each
general purpose electric motor (subtype I) with a power
rating of 1 horsepower or greater, but not greater than
200 horsepower, manufactured (alone or as a component
of another piece of equipment) after the 3-year period
beginning on the date of enactment of the Energy
Independence and Security Act of 2007, shall have a
nominal full load efficiency that is not less than as
defined in NEMA MG-1 (2006) Table 12-12.
``(B) Fire pump motors.--Each fire pump motor
manufactured (alone or as a component of another piece
of equipment) after the 3-year period beginning on the
date of enactment of the Energy Independence and
Security Act of 2007 shall have nominal full load
efficiency that is not less than as defined in NEMA MG-
1 (2006) Table 12-11.
``(C) General purpose electric motors (subtype
ii).--Each general purpose electric motor (subtype II)
with a power rating of 1 horsepower or greater, but not
greater than 200 horsepower, manufactured (alone or as
a component of another piece of equipment) after the 3-
year period beginning on the date of enactment of the
Energy Independence and Security Act of 2007, shall
have a nominal full load efficiency that is not less
than as defined in NEMA MG-1 (2006) Table 12-11.
``(D) NEMA design b, general purpose electric
motors.--Each NEMA Design B, general purpose electric
motor with a power rating of more than 200 horsepower,
but not greater than 500 horsepower, manufactured
(alone or as a component of another piece of equipment)
after the 3-year period beginning on the date of
enactment of the Energy Independence and Security Act
of 2007, shall have a nominal full load efficiency that
is not less than as defined in NEMA MG-1 (2006) Table
12-11.''.
(2) Effective date.--The amendments made by paragraph (1)
take effect on the date that is 3 years after the date of
enactment of this Act.
SEC. 314. STANDARDS FOR SINGLE PACKAGE VERTICAL AIR CONDITIONERS AND
HEAT PUMPS.
(a) Definitions.--Section 340 of the Energy Policy and Conservation
Act (42 U.S.C. 6311) is amended by adding at the end the following:
``(22) Single package vertical air conditioner.--The term
`single package vertical air conditioner' means air-cooled
commercial package air conditioning and heating equipment
that--
``(A) is factory-assembled as a single package
that--
``(i) has major components that are
arranged vertically;
``(ii) is an encased combination of cooling
and optional heating components; and
``(iii) is intended for exterior mounting
on, adjacent interior to, or through an outside
wall;
``(B) is powered by a single- or 3-phase current;
``(C) may contain 1 or more separate indoor
grilles, outdoor louvers, various ventilation options,
indoor free air discharges, ductwork, well plenum, or
sleeves; and
``(D) has heating components that may include
electrical resistance, steam, hot water, or gas, but
may not include reverse cycle refrigeration as a
heating means.
``(23) Single package vertical heat pump.--The term `single
package vertical heat pump' means a single package vertical air
conditioner that--
``(A) uses reverse cycle refrigeration as its
primary heat source; and
``(B) may include secondary supplemental heating by
means of electrical resistance, steam, hot water, or
gas.''.
(b) Standards.--Section 342(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)) is amended--
(1) in the first sentence of each of paragraphs (1) and
(2), by inserting ``(including single package vertical air
conditioners and single package vertical heat pumps)'' after
``heating equipment'' each place it appears;
(2) in paragraph (1), by striking ``but before January 1,
2010,'';
(3) in the first sentence of each of paragraphs (7), (8),
and (9), by inserting ``(other than single package vertical air
conditioners and single package vertical heat pumps)'' after
``heating equipment'' each place it appears;
(4) in paragraph (7)--
(A) by striking ``manufactured on or after January
1, 2010,'';
(B) in each of subparagraphs (A), (B), and (C), by
striking ``The'' and inserting ``For equipment
manufactured on or after January 1, 2010, the''; and
(C) by adding at the end the following:
``(D) For equipment manufactured on or after the later of
January 1, 2008, or the date that is 180 days after the date of
enactment of the Energy Independence and Security Act of 2007--
``(i) the minimum seasonal energy efficiency ratio
of air-cooled 3-phase electric central air conditioners
and central air conditioning heat pumps less than
65,000 Btu per hour (cooling capacity), split systems,
shall be 13.0;
``(ii) the minimum seasonal energy efficiency ratio
of air-cooled 3-phase electric central air conditioners
and central air conditioning heat pumps less than
65,000 Btu per hour (cooling capacity), single package,
shall be 13.0;
``(iii) the minimum heating seasonal performance
factor of air-cooled 3-phase electric central air
conditioning heat pumps less than 65,000 Btu per hour
(cooling capacity), split systems, shall be 7.7; and
``(iv) the minimum heating seasonal performance
factor of air-cooled three-phase electric central air
conditioning heat pumps less than 65,000 Btu per hour
(cooling capacity), single package, shall be 7.7.'';
and
(5) by adding at the end the following:
``(10) Single package vertical air conditioners and single
package vertical heat pumps.--
``(A) In general.--Single package vertical air
conditioners and single package vertical heat pumps
manufactured on or after January 1, 2010, shall meet
the following standards:
``(i) The minimum energy efficiency ratio
of single package vertical air conditioners
less than 65,000 Btu per hour (cooling
capacity), single-phase, shall be 9.0.
``(ii) The minimum energy efficiency ratio
of single package vertical air conditioners
less than 65,000 Btu per hour (cooling
capacity), three-phase, shall be 9.0.
``(iii) The minimum energy efficiency ratio
of single package vertical air conditioners at
or above 65,000 Btu per hour (cooling capacity)
but less than 135,000 Btu per hour (cooling
capacity), shall be 8.9.
``(iv) The minimum energy efficiency ratio
of single package vertical air conditioners at
or above 135,000 Btu per hour (cooling
capacity) but less than 240,000 Btu per hour
(cooling capacity), shall be 8.6.
``(v) The minimum energy efficiency ratio
of single package vertical heat pumps less than
65,000 Btu per hour (cooling capacity), single-
phase, shall be 9.0 and the minimum coefficient
of performance in the heating mode shall be
3.0.
``(vi) The minimum energy efficiency ratio
of single package vertical heat pumps less than
65,000 Btu per hour (cooling capacity), three-
phase, shall be 9.0 and the minimum coefficient
of performance in the heating mode shall be
3.0.
``(vii) The minimum energy efficiency ratio
of single package vertical heat pumps at or
above 65,000 Btu per hour (cooling capacity)
but less than 135,000 Btu per hour (cooling
capacity), shall be 8.9 and the minimum
coefficient of performance in the heating mode
shall be 3.0.
``(viii) The minimum energy efficiency
ratio of single package vertical heat pumps at
or above 135,000 Btu per hour (cooling
capacity) but less than 240,000 Btu per hour
(cooling capacity), shall be 8.6 and the
minimum coefficient of performance in the
heating mode shall be 2.9.
``(B) Review.--Not later than 3 years after the
date of enactment of this paragraph, the Secretary
shall review the most recently published ASHRAE/IES
Standard 90.1 with respect to single package vertical
air conditioners and single package vertical heat pumps
in accordance with the procedures established under
paragraph (6).''.
SEC. 315. IMPROVED ENERGY EFFICIENCY FOR APPLIANCES AND BUILDINGS IN
COLD CLIMATES.
(a) Research.--Section 911(a)(2) of the Energy Policy Act of 2005
(42 U.S.C. 16191(a)(2)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) technologies to improve the energy efficiency
of appliances and mechanical systems for buildings in
cold climates, including combined heat and power units
and increased use of renewable resources, including
fuel.''.
(b) Rebates.--Section 124 of the Energy Policy Act of 2005 (42
U.S.C. 15821) is amended--
(1) in subsection (b)(1), by inserting ``, or products with
improved energy efficiency in cold climates,'' after
``residential Energy Star products''; and
(2) in subsection (e), by inserting ``or product with
improved energy efficiency in a cold climate'' after
``residential Energy Star product'' each place it appears.
SEC. 316. TECHNICAL CORRECTIONS.
(a) Definition of F96T12 Lamp.--
(1) In general.--Section 135(a)(1)(A)(ii) of the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 624) is
amended by striking ``C78.1-1978(R1984)'' and inserting
``C78.3-1978(R1984)''.
(2) Effective date.--The amendment made by paragraph (1)
takes effect on August 8, 2005.
(b) Definition of Fluorescent Lamp.--Section 321(30)(B)(viii) of
the Energy Policy and Conservation Act (42 U.S.C. 6291(30)(B)(viii)) is
amended by striking ``82'' and inserting ``87''.
(c) Mercury Vapor Lamp Ballasts.--
(1) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by section
301(a)(2)) is amended--
(A) by striking paragraphs (46) through (48) and
inserting the following:
``(46) High intensity discharge lamp.--
``(A) In general.--The term `high intensity
discharge lamp' means an electric-discharge lamp in
which--
``(i) the light-producing arc is stabilized
by the arc tube wall temperature; and
``(ii) the arc tube wall loading is in
excess of 3 Watts/cm\2\.
``(B) Inclusions.--The term `high intensity
discharge lamp' includes mercury vapor, metal halide,
and high-pressure sodium lamps described in
subparagraph (A).
``(47) Mercury vapor lamp.--
``(A) In general.--The term `mercury vapor lamp'
means a high intensity discharge lamp in which the
major portion of the light is produced by radiation
from mercury typically operating at a partial vapor
pressure in excess of 100,000 Pa (approximately 1 atm).
``(B) Inclusions.--The term `mercury vapor lamp'
includes clear, phosphor-coated, and self-ballasted
screw base lamps described in subparagraph (A).
``(48) Mercury vapor lamp ballast.--The term `mercury vapor
lamp ballast' means a device that is designed and marketed to
start and operate mercury vapor lamps intended for general
illumination by providing the necessary voltage and current.'';
and
(B) by adding at the end the following:
``(53) Specialty application mercury vapor lamp ballast.--
The term `specialty application mercury vapor lamp ballast'
means a mercury vapor lamp ballast that--
``(A) is designed and marketed for operation of
mercury vapor lamps used in quality inspection,
industrial processing, or scientific use, including
fluorescent microscopy and ultraviolet curing; and
``(B) in the case of a specialty application
mercury vapor lamp ballast, the label of which--
``(i) provides that the specialty
application mercury vapor lamp ballast is `For
specialty applications only, not for general
illumination'; and
``(ii) specifies the specific applications
for which the ballast is designed.''.
(2) Standard setting authority.--Section 325(ee) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(ee)) is
amended by inserting ``(other than specialty application
mercury vapor lamp ballasts)'' after ``ballasts''.
(d) Energy Conservation Standards.--Section 325 of the Energy
Policy and Conservation Act (42 U.S.C. 6295) is amended--
(1) in subsection (v)--
(A) in the subsection heading, by striking
``Ceiling Fans and'';
(B) by striking paragraph (1); and
(C) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively; and
(2) in subsection (ff)--
(A) in paragraph (1)(A)--
(i) by striking clause (iii);
(ii) by redesignating clause (iv) as clause
(iii); and
(iii) in clause (iii)(II) (as so
redesignated), by inserting ``fans sold for''
before ``outdoor''; and
(B) in paragraph (4)(C)--
(i) in the matter preceding clause (i), by
striking ``subparagraph (B)'' and inserting
``subparagraph (A)''; and
(ii) by striking clause (ii) and inserting
the following:
``(ii) shall be packaged with lamps to fill all sockets.'';
(C) in paragraph (6), by redesignating
subparagraphs (C) and (D) as clauses (i) and (ii),
respectively, of subparagraph (B); and
(D) in paragraph (7), by striking ``327'' the
second place it appears and inserting ``324''.
Subtitle B--Lighting Energy Efficiency
SEC. 321. EFFICIENT LIGHT BULBS.
(a) Energy Efficiency Standards for General Service Incandescent
Lamps.--
(1) Definition of general service incandescent lamp.--
Section 321(30) of the Energy Policy and Conservation Act (42
U.S.C. 6291(30)) is amended--
(A) by striking subparagraph (D) and inserting the
following:
``(D) General service incandescent lamp.--
``(i) In general.--The term `general
service incandescent lamp' means a standard
incandescent or halogen type lamp that--
``(I) is intended for general
service applications;
``(II) has a medium screw base;
``(III) has a lumen range of not
less than 310 lumens and not more than
2,600 lumens; and
``(IV) is capable of being operated
at a voltage range at least partially
within 110 and 130 volts.
``(ii) Exclusions.--The term `general
service incandescent lamp' does not include the
following incandescent lamps:
``(I) An appliance lamp.
``(II) A black light lamp.
``(III) A bug lamp.
``(IV) A colored lamp.
``(V) An infrared lamp.
``(VI) A left-hand thread lamp.
``(VII) A marine lamp.
``(VIII) A marine signal service
lamp.
``(IX) A mine service lamp.
``(X) A plant light lamp.
``(XI) A reflector lamp.
``(XII) A rough service lamp.
``(XIII) A shatter-resistant lamp
(including a shatter-proof lamp and a
shatter-protected lamp).
``(XIV) A sign service lamp.
``(XV) A silver bowl lamp.
``(XVI) A showcase lamp.
``(XVII) A 3-way incandescent lamp.
``(XVIII) A traffic signal lamp.
``(XIX) A vibration service lamp.
``(XX) A G shape lamp (as defined
in ANSI C78.20-2003 and C79.1-2002 with
a diameter of 5 inches or more.
``(XXI) A T shape lamp (as defined
in ANSI C78.20-2003 and C79.1-2002) and
that uses not more than 40 watts or has
a length of more than 10 inches.
``(XXII) A B, BA, CA, F, G16-1/2,
G-25, G30, S, or M-14 lamp (as defined
in ANSI C79.1-2002 and ANSI C78.20-
2003) of 40 watts or less.''; and
(B) by adding at the end the following:
``(T) Appliance lamp.--The term `appliance lamp'
means any lamp that--
``(i) is specifically designed to operate
in a household appliance, has a maximum wattage
of 40 watts, and is sold at retail, including
an oven lamp, refrigerator lamp, and vacuum
cleaner lamp; and
``(ii) is designated and marketed for the
intended application, with--
``(I) the designation on the lamp
packaging; and
``(II) marketing materials that
identify the lamp as being for
appliance use.
``(U) Candelabra base incandescent lamp.--The term
`candelabra base incandescent lamp' means a lamp that
uses candelabra screw base as described in ANSI C81.61-
2006, Specifications for Electric Bases, common
designations E11 and E12.
``(V) Intermediate base incandescent lamp.--The
term `intermediate base incandescent lamp' means a lamp
that uses an intermediate screw base as described in
ANSI C81.61-2006, Specifications for Electric Bases,
common designation E17.
``(W) Modified spectrum.--The term `modified
spectrum' means, with respect to an incandescent lamp,
an incandescent lamp that--
``(i) is not a colored incandescent lamp;
and
``(ii) when operated at the rated voltage
and wattage of the incandescent lamp--
``(I) has a color point with (x,y)
chromaticity coordinates on the
Commission Internationale de
l'Eclairage (C.I.E.) 1931 chromaticity
diagram that lies below the black-body
locus; and
``(II) has a color point with (x,y)
chromaticity coordinates on the C.I.E.
1931 chromaticity diagram that lies at
least 4 MacAdam steps (as referenced in
IESNA LM16) distant from the color
point of a clear lamp with the same
filament and bulb shape, operated at
the same rated voltage and wattage.
``(X) Rough service lamp.--The term `rough service
lamp' means a lamp that--
``(i) has a minimum of 5 supports with
filament configurations that are C-7A, C-11, C-
17, and C-22 as listed in Figure 6-12 of the
9th edition of the IESNA Lighting handbook, or
similar configurations where lead wires are not
counted as supports; and
``(ii) is designated and marketed
specifically for `rough service' applications,
with--
``(I) the designation appearing on
the lamp packaging; and
``(II) marketing materials that
identify the lamp as being for rough
service.
``(Y) 3-way incandescent lamp.--The term `3-way
incandescent lamp' includes an incandescent lamp that--
``(i) employs 2 filaments, operated
separately and in combination, to provide 3
light levels; and
``(ii) is designated on the lamp packaging
and marketing materials as being a 3-way
incandescent lamp.
``(Z) Shatter-resistant lamp, shatter-proof lamp,
or shatter-protected lamp.--The terms `shatter-
resistant lamp', `shatter-proof lamp', and `shatter-
protected lamp' mean a lamp that--
``(i) has a coating or equivalent
technology that is compliant with NSF/ANSI 51
and is designed to contain the glass if the
glass envelope of the lamp is broken; and
``(ii) is designated and marketed for the
intended application, with--
``(I) the designation on the lamp
packaging; and
``(II) marketing materials that
identify the lamp as being shatter-
resistant, shatter-proof, or shatter-
protected.
``(AA) Vibration service lamp.--The term `vibration
service lamp' means a lamp that--
``(i) has filament configurations that are
C-5, C-7A, or C-9, as listed in Figure 6-12 of
the 9th Edition of the IESNA Lighting Handbook
or similar configurations;
``(ii) has a maximum wattage of 60 watts;
``(iii) is sold at retail in packages of 2
lamps or less; and
``(iv) is designated and marketed
specifically for vibration service or
vibration-resistant applications, with--
``(I) the designation appearing on
the lamp packaging; and
``(II) marketing materials that
identify the lamp as being vibration
service only.
``(BB) General service lamp.--
``(i) In general.--The term `general
service lamp' includes--
``(I) general service incandescent
lamps;
``(II) compact fluorescent lamps;
``(III) general service light-
emitting diode (LED or OLED) lamps; and
``(IV) any other lamps that the
Secretary determines are used to
satisfy lighting applications
traditionally served by general service
incandescent lamps.
``(ii) Exclusions.--The term `general
service lamp' does not include--
``(I) any lighting application or
bulb shape described in any of
subclauses (I) through (XXII) of
subparagraph (D)(ii); or
``(II) any general service
fluorescent lamp or incandescent
reflector lamp.
``(CC) Light-emitting diode; led.--
``(i) In general.--The terms `light-
emitting diode' and `LED' means a p-n junction
solid state device the radiated output of which
is a function of the physical construction,
material used, and exciting current of the
device.
``(ii) Output.--The output of a light-
emitting diode may be in--
``(I) the infrared region;
``(II) the visible region; or
``(III) the ultraviolet region.
``(DD) Organic light-emitting diode; oled.--The
terms `organic light-emitting diode' and `OLED' mean a
thin-film light-emitting device that typically consists
of a series of organic layers between 2 electrical
contacts (electrodes).
``(EE) Colored incandescent lamp.--The term
`colored incandescent lamp' means an incandescent lamp
designated and marketed as a colored lamp that has--
``(i) a color rendering index of less than
50, as determined according to the test method
given in C.I.E. publication 13.3-1995; or
``(ii) a correlated color temperature of
less than 2,500K, or greater than 4,600K, where
correlated temperature is computed according to
the Journal of Optical Society of America, Vol.
58, pages 1528-1595 (1986).''.
(2) Coverage.--Section 322(a)(14) of the Energy Policy and
Conservation Act (42 U.S.C. 6292(a)(14)) is amended by
inserting ``, general service incandescent lamps,'' after
``fluorescent lamps''.
(3) Energy conservation standards.--Section 325 of the
Energy Policy and Conservation Act (42 U.S.C. 6295) is
amended--
(A) in subsection (i)--
(i) in the section heading, by inserting
``, General Service Incandescent Lamps,
Intermediate Base Incandescent Lamps,
Candelabra Base Incandescent Lamps,'' after
``Fluorescent Lamps'';
(ii) in paragraph (1)--
(I) in subparagraph (A)--
(aa) by inserting ``,
general service incandescent
lamps, intermediate base
incandescent lamps, candelabra
base incandescent lamps,''
after ``fluorescent lamps'';
(bb) by inserting ``, new
maximum wattage,'' after ``lamp
efficacy''; and
(cc) by inserting after the
table entitled ``incandescent
reflector lamps'' the
following:
``GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Maximum Rate Minimum Rate Effective
Rated Lumen Ranges Wattage Lifetime Date
----------------------------------------------------------------------------------------------------------------
1490-2600 72 1,000 hrs 1/1/2012
1050-1489 53 1,000 hrs 1/1/2013
750-1049 43 1,000 hrs 1/1/2014
310-749 29 1,000 hrs 1/1/2014
----------------------------------------------------------------------------------------------------------------
``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Maximum Rate Minimum Rate Effective
Rated Lumen Ranges Wattage Lifetime Date
----------------------------------------------------------------------------------------------------------------
1118-1950 72 1,000 hrs 1/1/2012
788-1117 53 1,000 hrs 1/1/2013
563-787 43 1,000 hrs 1/1/2014
232-562 29 1,000 hrs 1/1/2014'';
----------------------------------------------------------------------------------------------------------------
and
(II) by striking subparagraph (B)
and inserting the following:
``(B) Application.--
``(i) Application criteria.--This
subparagraph applies to each lamp that--
``(I) is intended for a general
service or general illumination
application (whether incandescent or
not);
``(II) has a medium screw base or
any other screw base not defined in
ANSI C81.61-2006;
``(III) is capable of being
operated at a voltage at least
partially within the range of 110 to
130 volts; and
``(IV) is manufactured or imported
after December 31, 2011.
``(ii) Requirement.--For purposes of this
paragraph, each lamp described in clause (i)
shall have a color rendering index that is
greater than or equal to--
``(I) 80 for nonmodified spectrum
lamps; or
``(II) 75 for modified spectrum
lamps.
``(C) Candelabra incandescent lamps and
intermediate base incandescent lamps.--
``(i) Candelabra base incandescent lamps.--
A candelabra base incandescent lamp shall not
exceed 60 rated watts.
``(ii) Intermediate base incandescent
lamps.--An intermediate base incandescent lamp
shall not exceed 40 rated watts.
``(D) Exemptions.--
``(i) Petition.--Any person may petition
the Secretary for an exemption for a type of
general service lamp from the requirements of
this subsection.
``(ii) Criteria.--The Secretary may grant
an exemption under clause (i) only to the
extent that the Secretary finds, after a
hearing and opportunity for public comment,
that it is not technically feasible to serve a
specialized lighting application (such as a
military, medical, public safety, or certified
historic lighting application) using a lamp
that meets the requirements of this subsection.
``(iii) Additional criterion.--To grant an
exemption for a product under this
subparagraph, the Secretary shall include, as
an additional criterion, that the exempted
product is unlikely to be used in a general
service lighting application.
``(E) Extension of coverage.--
``(i) Petition.--Any person may petition
the Secretary to establish standards for lamp
shapes or bases that are excluded from the
definition of general service lamps.
``(ii) Increased sales of exempted lamps.--
The petition shall include evidence that the
availability or sales of exempted incandescent
lamps have increased significantly since the
date on which the standards on general service
incandescent lamps were established.
``(iii) Criteria.--The Secretary shall
grant a petition under clause (i) if the
Secretary finds that--
``(I) the petition presents
evidence that demonstrates that
commercial availability or sales of
exempted incandescent lamp types have
increased significantly since the
standards on general service lamps were
established and likely are being widely
used in general lighting applications;
and
``(II) significant energy savings
could be achieved by covering exempted
products, as determined by the
Secretary based on sales data provided
to the Secretary from manufacturers and
importers.
``(iv) No presumption.--The grant of a
petition under this subparagraph shall create
no presumption with respect to the
determination of the Secretary with respect to
any criteria under a rulemaking conducted under
this section.
``(v) Expedited proceeding.--If the
Secretary grants a petition for a lamp shape or
base under this subparagraph, the Secretary
shall--
``(I) conduct a rulemaking to
determine standards for the exempted
lamp shape or base; and
``(II) complete the rulemaking not
later than 18 months after the date on
which notice is provided granting the
petition.
``(F) Definition of effective date.--In this
paragraph, except as otherwise provided in a table
contained in subparagraph (A), the term `effective
date' means the last day of the month specified in the
table that follows October 24, 1992.'';
(iii) in paragraph (5), in the first
sentence, by striking ``and general service
incandescent lamps'';
(iv) by redesignating paragraphs (6) and
(7) as paragraphs (7) and (8), respectively;
and
(v) by inserting after paragraph (5) the
following:
``(6) Standards for general service lamps.--
``(A) Rulemaking before january 1, 2014.--
``(i) In general.--Not later than January
1, 2014, the Secretary shall initiate a
rulemaking procedure to determine whether--
``(I) standards in effect for
general service lamps should be amended
to establish more stringent standards
than the standards specified in
paragraph (1)(A); and
``(II) the exemptions for certain
incandescent lamps should be maintained
or discontinued based, in part, on
exempted lamp sales collected by the
Secretary from manufacturers.
``(ii) Scope.--The rulemaking--
``(I) shall not be limited to
incandescent lamp technologies; and
``(II) shall include consideration
of a minimum standard of 45 lumens per
watt for general service lamps.
``(iii) Amended standards.--If the
Secretary determines that the standards in
effect for general service incandescent lamps
should be amended, the Secretary shall publish
a final rule not later than January 1, 2017,
with an effective date that is not earlier than
3 years after the date on which the final rule
is published.
``(iv) Phased-in effective dates.--The
Secretary shall consider phased-in effective
dates under this subparagraph after
considering--
``(I) the impact of any amendment
on manufacturers, retiring and
repurposing existing equipment,
stranded investments, labor contracts,
workers, and raw materials; and
``(II) the time needed to work with
retailers and lighting designers to
revise sales and marketing strategies.
``(v) Backstop requirement.--If the
Secretary fails to complete a rulemaking in
accordance with clauses (i) through (iv) or if
the final rule does not produce savings that
are greater than or equal to the savings from a
minimum efficacy standard of 45 lumens per
watt, effective beginning January 1, 2020, the
Secretary shall prohibit the sale of any
general service lamp that does not meet a
minimum efficacy standard of 45 lumens per
watt.
``(vi) State preemption.--Neither section
327(b) nor any other provision of law shall
preclude California or Nevada from adopting,
effective beginning on or after January 1,
2018--
``(I) a final rule adopted by the
Secretary in accordance with clauses
(i) through (iv);
``(II) if a final rule described in
subclause (I) has not been adopted, the
backstop requirement under clause (v);
or
``(III) in the case of California,
if a final rule described in subclause
(I) has not been adopted, any
California regulations relating to
these covered products adopted pursuant
to State statute in effect as of the
date of enactment of the Energy
Independence and Security Act of 2007.
``(B) Rulemaking before january 1, 2020.--
``(i) In general.--Not later than January
1, 2020, the Secretary shall initiate a
rulemaking procedure to determine whether--
``(I) standards in effect for
general service incandescent lamps
should be amended to reflect lumen
ranges with more stringent maximum
wattage than the standards specified in
paragraph (1)(A); and
``(II) the exemptions for certain
incandescent lamps should be maintained
or discontinued based, in part, on
exempted lamp sales data collected by
the Secretary from manufacturers.
``(ii) Scope.--The rulemaking shall not be
limited to incandescent lamp technologies.
``(iii) Amended standards.--If the
Secretary determines that the standards in
effect for general service incandescent lamps
should be amended, the Secretary shall publish
a final rule not later than January 1, 2022,
with an effective date that is not earlier than
3 years after the date on which the final rule
is published.
``(iv) Phased-in effective dates.--The
Secretary shall consider phased-in effective
dates under this subparagraph after
considering--
``(I) the impact of any amendment
on manufacturers, retiring and
repurposing existing equipment,
stranded investments, labor contracts,
workers, and raw materials; and
``(II) the time needed to work with
retailers and lighting designers to
revise sales and marketing
strategies.''; and
(B) in subsection (l), by adding at the end the
following:
``(4) Energy efficiency standards for certain lamps.--
``(A) In general.--The Secretary shall prescribe an
energy efficiency standard for rough service lamps,
vibration service lamps, 3-way incandescent lamps,
2,601-3,300 lumen general service incandescent lamps,
and shatter-resistant lamps only in accordance with
this paragraph.
``(B) Benchmarks.--Not later than 1 year after the
date of enactment of this paragraph, the Secretary, in
consultation with the National Electrical Manufacturers
Association, shall--
``(i) collect actual data for United States
unit sales for each of calendar years 1990
through 2006 for each of the 5 types of lamps
described in subparagraph (A) to determine the
historical growth rate of the type of lamp; and
``(ii) construct a model for each type of
lamp based on coincident economic indicators
that closely match the historical annual growth
rate of the type of lamp to provide a neutral
comparison benchmark to model future unit sales
after calendar year 2006.
``(C) Actual sales data.--
``(i) In general.--Effective for each of
calendar years 2010 through 2025, the
Secretary, in consultation with the National
Electrical Manufacturers Association, shall--
``(I) collect actual United States
unit sales data for each of 5 types of
lamps described in subparagraph (A);
and
``(II) not later than 90 days after
the end of each calendar year, compare
the lamp sales in that year with the
sales predicted by the comparison
benchmark for each of the 5 types of
lamps described in subparagraph (A).
``(ii) Continuation of tracking.--
``(I) Determination.--Not later
than January 1, 2023, the Secretary
shall determine if actual sales data
should be tracked for the lamp types
described in subparagraph (A) after
calendar year 2025.
``(II) Continuation.--If the
Secretary finds that the market share
of a lamp type described in
subparagraph (A) could significantly
erode the market share for general
service lamps, the Secretary shall
continue to track the actual sales data
for the lamp type.
``(D) Rough service lamps.--
``(i) In general.--Effective beginning with
the first year that the reported annual sales
rate for rough service lamps demonstrates
actual unit sales of rough service lamps that
achieve levels that are at least 100 percent
higher than modeled unit sales for that same
year, the Secretary shall--
``(I) not later than 90 days after
the end of the previous calendar year,
issue a finding that the index has been
exceeded; and
``(II) not later than the date that
is 1 year after the end of the previous
calendar year, complete an accelerated
rulemaking to establish an energy
conservation standard for rough service
lamps.
``(ii) Backstop requirement.--If the
Secretary fails to complete an accelerated
rulemaking in accordance with clause (i)(II),
effective beginning 1 year after the date of
the issuance of the finding under clause
(i)(I), the Secretary shall require rough
service lamps to--
``(I) have a shatter-proof coating
or equivalent technology that is
compliant with NSF/ANSI 51 and is
designed to contain the glass if the
glass envelope of the lamp is broken
and to provide effective containment
over the life of the lamp;
``(II) have a maximum 40-watt
limitation; and
``(III) be sold at retail only in a
package containing 1 lamp.
``(E) Vibration service lamps.--
``(i) In general.--Effective beginning with
the first year that the reported annual sales
rate for vibration service lamps demonstrates
actual unit sales of vibration service lamps
that achieve levels that are at least 100
percent higher than modeled unit sales for that
same year, the Secretary shall--
``(I) not later than 90 days after
the end of the previous calendar year,
issue a finding that the index has been
exceeded; and
``(II) not later than the date that
is 1 year after the end of the previous
calendar year, complete an accelerated
rulemaking to establish an energy
conservation standard for vibration
service lamps.
``(ii) Backstop requirement.--If the
Secretary fails to complete an accelerated
rulemaking in accordance with clause (i)(II),
effective beginning 1 year after the date of
the issuance of the finding under clause
(i)(I), the Secretary shall require vibration
service lamps to--
``(I) have a maximum 40-watt
limitation; and
``(II) be sold at retail only in a
package containing 1 lamp.
``(F) 3-way incandescent lamps.--
``(i) In general.--Effective beginning with
the first year that the reported annual sales
rate for 3-way incandescent lamps demonstrates
actual unit sales of 3-way incandescent lamps
that achieve levels that are at least 100
percent higher than modeled unit sales for that
same year, the Secretary shall--
``(I) not later than 90 days after
the end of the previous calendar year,
issue a finding that the index has been
exceeded; and
``(II) not later than the date that
is 1 year after the end of the previous
calendar year, complete an accelerated
rulemaking to establish an energy
conservation standard for 3-way
incandescent lamps.
``(ii) Backstop requirement.--If the
Secretary fails to complete an accelerated
rulemaking in accordance with clause (i)(II),
effective beginning 1 year after the date of
issuance of the finding under clause (i)(I),
the Secretary shall require that--
``(I) each filament in a 3-way
incandescent lamp meet the new maximum
wattage requirements for the respective
lumen range established under
subsection (i)(1)(A); and
``(II) 3-way lamps be sold at
retail only in a package containing 1
lamp.
``(G) 2,601-3,300 lumen general service
incandescent lamps.--Effective beginning with the first
year that the reported annual sales rate demonstrates
actual unit sales of 2,601-3,300 lumen general service
incandescent lamps in the lumen range of 2,601 through
3,300 lumens (or, in the case of a modified spectrum,
in the lumen range of 1,951 through 2,475 lumens) that
achieve levels that are at least 100 percent higher
than modeled unit sales for that same year, the
Secretary shall impose--
``(i) a maximum 95-watt limitation on
general service incandescent lamps in the lumen
range of 2,601 through 3,300 lumens; and
``(ii) a requirement that those lamps be
sold at retail only in a package containing 1
lamp.
``(H) Shatter-resistant lamps.--
``(i) In general.--Effective beginning with
the first year that the reported annual sales
rate for shatter-resistant lamps demonstrates
actual unit sales of shatter-resistant lamps
that achieve levels that are at least 100
percent higher than modeled unit sales for that
same year, the Secretary shall--
``(I) not later than 90 days after
the end of the previous calendar year,
issue a finding that the index has been
exceeded; and
``(II) not later than the date that
is 1 year after the end of the previous
calendar year, complete an accelerated
rulemaking to establish an energy
conservation standard for shatter-
resistant lamps.
``(ii) Backstop requirement.--If the
Secretary fails to complete an accelerated
rulemaking in accordance with clause (i)(II),
effective beginning 1 year after the date of
issuance of the finding under clause (i)(I),
the Secretary shall impose--
``(I) a maximum wattage limitation
of 40 watts on shatter resistant lamps;
and
``(II) a requirement that those
lamps be sold at retail only in a
package containing 1 lamp.
``(I) Rulemakings before january 1, 2025.--
``(i) In general.--Except as provided in
clause (ii), if the Secretary issues a final
rule prior to January 1, 2025, establishing an
energy conservation standard for any of the 5
types of lamps for which data collection is
required under any of subparagraphs (D) through
(G), the requirement to collect and model data
for that type of lamp shall terminate unless,
as part of the rulemaking, the Secretary
determines that continued tracking is
necessary.
``(ii) Backstop requirement.--If the
Secretary imposes a backstop requirement as a
result of a failure to complete an accelerated
rulemaking in accordance with clause (i)(II) of
any of subparagraphs (D) through (G), the
requirement to collect and model data for the
applicable type of lamp shall continue for an
additional 2 years after the effective date of
the backstop requirement.''.
(b) Consumer Education and Lamp Labeling.--Section 324(a)(2)(C) of
the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)(C)) is
amended by adding at the end the following:
``(iii) Rulemaking to consider
effectiveness of lamp labeling.--
``(I) In general.--Not later than 1
year after the date of enactment of
this clause, the Commission shall
initiate a rulemaking to consider--
``(aa) the effectiveness of
current lamp labeling for power
levels or watts, light output
or lumens, and lamp lifetime;
and
``(bb) alternative labeling
approaches that will help
consumers to understand new
high-efficiency lamp products
and to base the purchase
decisions of the consumers on
the most appropriate source
that meets the requirements of
the consumers for lighting
level, light quality, lamp
lifetime, and total lifecycle
cost.
``(II) Completion.--The Commission
shall--
``(aa) complete the
rulemaking not later than the
date that is 30 months after
the date of enactment of this
clause; and
``(bb) consider reopening
the rulemaking not later than
180 days before the effective
dates of the standards for
general service incandescent
lamps established under section
325(i)(1)(A), if the Commission
determines that further
labeling changes are needed to
help consumers understand lamp
alternatives.''.
(c) Market Assessments and Consumer Awareness Program.--
(1) In general.--In cooperation with the Administrator of
the Environmental Protection Agency, the Secretary of Commerce,
the Federal Trade Commission, lighting and retail industry
associations, energy efficiency organizations, and any other
entities that the Secretary of Energy determines to be
appropriate, the Secretary of Energy shall--
(A) conduct an annual assessment of the market for
general service lamps and compact fluorescent lamps--
(i) to identify trends in the market shares
of lamp types, efficiencies, and light output
levels purchased by residential and
nonresidential consumers; and
(ii) to better understand the degree to
which consumer decisionmaking is based on lamp
power levels or watts, light output or lumens,
lamp lifetime, and other factors, including
information required on labels mandated by the
Federal Trade Commission;
(B) provide the results of the market assessment to
the Federal Trade Commission for consideration in the
rulemaking described in section 324(a)(2)(C)(iii) of
the Energy Policy and Conservation Act (42 U.S.C.
6294(a)(2)(C)(iii)); and
(C) in cooperation with industry trade
associations, lighting industry members, utilities, and
other interested parties, carry out a proactive
national program of consumer awareness, information,
and education that broadly uses the media and other
effective communication techniques over an extended
period of time to help consumers understand the lamp
labels and make energy-efficient lighting choices that
meet the needs of consumers.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2009 through 2012.
(d) General Rule of Preemption for Energy Conservation Standards
Before Federal Standard Becomes Effective for a Product.--Section
327(b)(1) of the Energy Policy and Conservation Act (42 U.S.C.
6297(b)(1)) is amended--
(1) by inserting ``(A)'' after ``(1)'';
(2) by inserting ``or'' after the semicolon at the end; and
(3) by adding at the end the following:
``(B) in the case of any portion of any regulation that
establishes requirements for general service incandescent
lamps, intermediate base incandescent lamps, or candelabra base
lamps, was enacted or adopted by the States of California or
Nevada before December 4, 2007, except that--
``(i) the regulation adopted by the California
Energy Commission with an effective date of January 1,
2008, shall only be effective until the effective date
of the Federal standard for the applicable lamp
category under subparagraphs (A), (B), and (C) of
section 325(i)(1);
``(ii) the States of California and Nevada may, at
any time, modify or adopt a State standard for general
service lamps to conform with Federal standards with
effective dates no earlier than 12 months prior to the
Federal effective dates prescribed under subparagraphs
(A), (B), and (C) of section 325(i)(1), at which time
any prior regulations adopted by the States of
California or Nevada shall no longer be effective; and
``(iii) all other States may, at any time, modify
or adopt a State standard for general service lamps to
conform with Federal standards and effective dates.''.
(e) Prohibited Acts.--Section 332(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(6) for any manufacturer, distributor, retailer, or
private labeler to distribute in commerce an adapter that--
``(A) is designed to allow an incandescent lamp
that does not have a medium screw base to be installed
into a fixture or lampholder with a medium screw base
socket; and
``(B) is capable of being operated at a voltage
range at least partially within 110 and 130 volts.''.
(f) Enforcement.--Section 334 of the Energy Policy and Conservation
Act (42 U.S.C. 6304) is amended by inserting after the second sentence
the following: ``Any such action to restrain any person from
distributing in commerce a general service incandescent lamp that does
not comply with the applicable standard established under section
325(i) or an adapter prohibited under section 332(a)(6) may also be
brought by the attorney general of a State in the name of the State.''.
(g) Research and Development Program.--
(1) In general.--The Secretary may carry out a lighting
technology research and development program--
(A) to support the research, development,
demonstration, and commercial application of lamps and
related technologies sold, offered for sale, or
otherwise made available in the United States; and
(B) to assist manufacturers of general service
lamps in the manufacturing of general service lamps
that, at a minimum, achieve the wattage requirements
imposed as a result of the amendments made by
subsection (a).
(2) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2008 through 2013.
(3) Termination of authority.--The program under this
subsection shall terminate on September 30, 2015.
(h) Reports to Congress.--
(1) Report on mercury use and release.--Not later than 1
year after the date of enactment of this Act, the Secretary ,
in cooperation with the Administrator of the Environmental
Protection Agency, shall submit to Congress a report describing
recommendations relating to the means by which the Federal
Government may reduce or prevent the release of mercury during
the manufacture, transportation, storage, or disposal of light
bulbs.
(2) Report on rulemaking schedule.--Beginning on July 1,
2013 and semiannually through July 1, 2016, the Secretary shall
submit to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report on--
(A) whether the Secretary will meet the deadlines
for the rulemakings required under this section;
(B) a description of any impediments to meeting the
deadlines; and
(C) a specific plan to remedy any failures,
including recommendations for additional legislation or
resources.
(3) National academy review.--
(A) In general.--Not later than December 31, 2009,
the Secretary shall enter into an arrangement with the
National Academy of Sciences to provide a report by
December 31, 2013, and an updated report by July 31,
2015. The report should include--
(i) the status of advanced solid state
lighting research, development, demonstration
and commercialization;
(ii) the impact on the types of lighting
available to consumers of an energy
conservation standard requiring a minimum of 45
lumens per watt for general service lighting
effective in 2020; and
(iii) the time frame for the
commercialization of lighting that could
replace current incandescent and halogen
incandescent lamp technology and any other new
technologies developed to meet the minimum
standards required under subsection (a) (3) of
this section.
(B) Reports.--The reports shall be transmitted to
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate.
SEC. 322. INCANDESCENT REFLECTOR LAMP EFFICIENCY STANDARDS.
(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) (as amended by section 316(c)(1)(D)) is amended--
(1) in paragraph (30)(C)(ii)--
(A) in the matter preceding subclause (I)--
(i) by striking ``or similar bulb shapes
(excluding ER or BR)'' and inserting ``ER, BR,
BPAR, or similar bulb shapes''; and
(ii) by striking ``2.75'' and inserting
``2.25''; and
(B) by striking ``is either--'' and all that
follows through subclause (II) and inserting ``has a
rated wattage that is 40 watts or higher''; and
(2) by adding at the end the following:
``(54) BPAR incandescent reflector lamp.--The term `BPAR
incandescent reflector lamp' means a reflector lamp as shown in
figure C78.21-278 on page 32 of ANSI C78.21-2003.
``(55) BR incandescent reflector lamp; br30; br40.--
``(A) BR incandescent reflector lamp.--The term `BR
incandescent reflector lamp' means a reflector lamp
that has--
``(i) a bulged section below the major
diameter of the bulb and above the approximate
baseline of the bulb, as shown in figure 1 (RB)
on page 7 of ANSI C79.1-1994, incorporated by
reference in section 430.22 of title 10, Code
of Federal Regulations (as in effect on the
date of enactment of this paragraph); and
``(ii) a finished size and shape shown in
ANSI C78.21-1989, including the referenced
reflective characteristics in part 7 of ANSI
C78.21-1989, incorporated by reference in
section 430.22 of title 10, Code of Federal
Regulations (as in effect on the date of
enactment of this paragraph).
``(B) BR30.--The term `BR30' means a BR
incandescent reflector lamp with a diameter of 30/8ths
of an inch.
``(C) BR40.--The term `BR40' means a BR
incandescent reflector lamp with a diameter of 40/8ths
of an inch.
``(56) ER incandescent reflector lamp; er30; er40.--
``(A) ER incandescent reflector lamp.--The term `ER
incandescent reflector lamp' means a reflector lamp
that has--
``(i) an elliptical section below the major
diameter of the bulb and above the approximate
baseline of the bulb, as shown in figure 1 (RE)
on page 7 of ANSI C79.1-1994, incorporated by
reference in section 430.22 of title 10, Code
of Federal Regulations (as in effect on the
date of enactment of this paragraph); and
``(ii) a finished size and shape shown in
ANSI C78.21-1989, incorporated by reference in
section 430.22 of title 10, Code of Federal
Regulations (as in effect on the date of
enactment of this paragraph).
``(B) ER30.--The term `ER30' means an ER
incandescent reflector lamp with a diameter of 30/8ths
of an inch.
``(C) ER40.--The term `ER40' means an ER
incandescent reflector lamp with a diameter of 40/8ths
of an inch.
``(57) R20 incandescent reflector lamp.--The term `R20
incandescent reflector lamp' means a reflector lamp that has a
face diameter of approximately 2.5 inches, as shown in figure
1(R) on page 7 of ANSI C79.1-1994.''.
(b) Standards for Fluorescent Lamps and Incandescent Reflector
Lamps.--Section 325(i) of the Energy Policy and Conservation Act (42
U.S.C. 6995(i)) is amended by striking paragraph (1) and inserting the
following:
``(1) Standards.--
``(A) Definition of effective date.--In this
paragraph (other than subparagraph (D)), the term
`effective date' means, with respect to each type of
lamp specified in a table contained in subparagraph
(B), the last day of the period of months corresponding
to that type of lamp (as specified in the table) that
follows October 24, 1992.
``(B) Minimum standards.--Each of the following
general service fluorescent lamps and incandescent
reflector lamps manufactured after the effective date
specified in the tables contained in this paragraph
shall meet or exceed the following lamp efficacy and
CRI standards:
``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Effective Date
Lamp Type Nominal Lamp Minimum CRI Minimum Average Lamp (Period of
Wattage Efficacy (LPW) Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin........... >35 W 69 75.0 36
35 W 45 75.0 36
2-foot U-shaped................ >35 W 69 68.0 36
35 W 45 64.0 36
8-foot slimline................ 65 W 69 80.0 18
65 W 45 80.0 18
8-foot high output............. >100 W 69 80.0 18
100 W 45 80.0 18
----------------------------------------------------------------------------------------------------------------
``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
Effective Date
Nominal Lamp Wattage Minimum Average Lamp (Period of
Efficacy (LPW) Months)
------------------------------------------------------------------------
40-50....................... 10.5 36
51-66....................... 11.0 36
67-85....................... 12.5 36
86-115...................... 14.0 36
116-155...................... 14.5 36
156-205...................... 15.0 36
------------------------------------------------------------------------
``(C) Exemptions.--The standards specified in
subparagraph (B) shall not apply to the following types
of incandescent reflector lamps:
``(i) Lamps rated at 50 watts or less that
are ER30, BR30, BR40, or ER40 lamps.
``(ii) Lamps rated at 65 watts that are
BR30, BR40, or ER40 lamps.
``(iii) R20 incandescent reflector lamps
rated 45 watts or less.
``(D) Effective dates.--
``(i) ER, br, and bpar lamps.--The
standards specified in subparagraph (B) shall
apply with respect to ER incandescent reflector
lamps, BR incandescent reflector lamps, BPAR
incandescent reflector lamps, and similar bulb
shapes on and after January 1, 2008.
``(ii) Lamps between 2.25-2.75 inches in
diameter.--The standards specified in
subparagraph (B) shall apply with respect to
incandescent reflector lamps with a diameter of
more than 2.25 inches, but not more than 2.75
inches, on and after the later of January 1,
2008, or the date that is 180 days after the
date of enactment of the Energy Independence
and Security Act of 2007.''.
SEC. 323. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE ENERGY
SYSTEMS.
(a) Estimate of Energy Performance in Prospectus.--Section 3307(b)
of title 40, United States Code, is amended--
(1) by striking ``and'' at the end of paragraph (5);
(2) by striking the period at the end of paragraph (6) and
inserting ``; and''; and
(3) by inserting after paragraph (6) the following:
``(7) with respect to any prospectus for the construction,
alteration, or acquisition of any building or space to be
leased, an estimate of the future energy performance of the
building or space and a specific description of the use of
energy efficient and renewable energy systems, including
photovoltaic systems, in carrying out the project.''.
(b) Minimum Performance Requirements for Leased Space.--Section
3307 of such of title is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f) Minimum Performance Requirements for Leased Space.--With
respect to space to be leased, the Administrator shall include, to the
maximum extent practicable, minimum performance requirements requiring
energy efficiency and the use of renewable energy.''.
(c) Use of Energy Efficient Lighting Fixtures and Bulbs.--
(1) In general.--Chapter 33 of such title is amended--
(A) by redesignating sections 3313, 3314, and 3315
as sections 3314, 3315, and 3316, respectively; and
(B) by inserting after section 3312 the following:
``Sec. 3313. Use of energy efficient lighting fixtures and bulbs
``(a) Construction, Alteration, and Acquisition of Public
Buildings.--Each public building constructed, altered, or acquired by
the Administrator of General Services shall be equipped, to the maximum
extent feasible as determined by the Administrator, with lighting
fixtures and bulbs that are energy efficient.
``(b) Maintenance of Public Buildings.--Each lighting fixture or
bulb that is replaced by the Administrator in the normal course of
maintenance of public buildings shall be replaced, to the maximum
extent feasible, with a lighting fixture or bulb that is energy
efficient.
``(c) Considerations.--In making a determination under this section
concerning the feasibility of installing a lighting fixture or bulb
that is energy efficient, the Administrator shall consider--
``(1) the life-cycle cost effectiveness of the fixture or
bulb;
``(2) the compatibility of the fixture or bulb with
existing equipment;
``(3) whether use of the fixture or bulb could result in
interference with productivity;
``(4) the aesthetics relating to use of the fixture or
bulb; and
``(5) such other factors as the Administrator determines
appropriate.
``(d) Energy Star.--A lighting fixture or bulb shall be treated as
being energy efficient for purposes of this section if--
``(1) the fixture or bulb is certified under the Energy
Star program established by section 324A of the Energy Policy
and Conservation Act (42 U.S.C. 6294a);
``(2) in the case of all light-emitting diode (LED)
luminaires, lamps, and systems whose efficacy (lumens per watt)
and Color Rendering Index (CRI) meet the Department of Energy
requirements for minimum luminaire efficacy and CRI for the
Energy Star certification, as verified by an independent third-
party testing laboratory that the Administrator and the
Secretary of Energy determine conducts its tests according to
the procedures and recommendations of the Illuminating
Engineering Society of North America, even if the luminaires,
lamps, and systems have not received such certification; or
``(3) the Administrator and the Secretary of Energy have
otherwise determined that the fixture or bulb is energy
efficient.
``(e) Additional Energy Efficient Lighting Designations.--The
Administrator of the Environmental Protection Agency and the Secretary
of Energy shall give priority to establishing Energy Star performance
criteria or Federal Energy Management Program designations for
additional lighting product categories that are appropriate for use in
public buildings.
``(f) Guidelines.--The Administrator shall develop guidelines for
the use of energy efficient lighting technologies that contain mercury
in child care centers in public buildings.
``(g) Applicability of Buy American Act.--Acquisitions carried out
pursuant to this section shall be subject to the requirements of the
Buy American Act (41 U.S.C. 10c et seq.).
``(h) Effective Date.--The requirements of subsections (a) and (b)
shall take effect one year after the date of enactment of this
subsection.''.
(2) Clerical amendment.--The analysis for such chapter is
amended by striking the items relating to sections 3313, 3314,
and 3315 and inserting the following:
``3313. Use of energy efficient lighting fixtures and bulbs.
``3314. Delegation.
``3315. Report to Congress.
``3316. Certain authority not affected.''.
(d) Evaluation Factor.--Section 3310 of such title is amended--
(1) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) shall include in the solicitation for any lease
requiring a prospectus under section 3307 an evaluation factor
considering the extent to which the offeror will promote energy
efficiency and the use of renewable energy;''.
SEC. 324. METAL HALIDE LAMP FIXTURES.
(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) (as amended by section 322(a)(2)) is amended by
adding at the end the following:
``(58) Ballast.--The term `ballast' means a device used
with an electric discharge lamp to obtain necessary circuit
conditions (voltage, current, and waveform) for starting and
operating.
``(59) Ballast efficiency.--
``(A) In general.--The term `ballast efficiency'
means, in the case of a high intensity discharge
fixture, the efficiency of a lamp and ballast
combination, expressed as a percentage, and calculated
in accordance with the following formula: Efficiency =
P<INF>out</INF>/P<INF>in</INF>.
``(B) Efficiency formula.--For the purpose of
subparagraph (A)--
``(i) P<INF>out </INF>shall equal the
measured operating lamp wattage;
``(ii) P<INF>in</INF> shall equal the
measured operating input wattage;
``(iii) the lamp, and the capacitor when
the capacitor is provided, shall constitute a
nominal system in accordance with the ANSI
Standard C78.43-2004;
``(iv) for ballasts with a frequency of 60
Hz, P<INF>in</INF> and P<INF>out</INF> shall be
measured after lamps have been stabilized
according to section 4.4 of ANSI Standard
C82.6-2005 using a wattmeter with accuracy
specified in section 4.5 of ANSI Standard
C82.6-2005; and
``(v) for ballasts with a frequency greater
than 60 Hz, P<INF>in</INF> and P<INF>out</INF>
shall have a basic accuracy of <plus-minus> 0.5
percent at the higher of--
``(I) 3 times the output operating
frequency of the ballast; or
``(II) 2 kHz for ballast with a
frequency greater than 60 Hz.
``(C) Modification.--The Secretary may, by rule,
modify the definition of `ballast efficiency' if the
Secretary determines that the modification is necessary
or appropriate to carry out the purposes of this Act.
``(60) Electronic ballast.--The term `electronic ballast'
means a device that uses semiconductors as the primary means to
control lamp starting and operation.
``(61) General lighting application.--The term `general
lighting application' means lighting that provides an interior
or exterior area with overall illumination.
``(62) Metal halide ballast.--The term `metal halide
ballast' means a ballast used to start and operate metal halide
lamps.
``(63) Metal halide lamp.--The term `metal halide lamp'
means a high intensity discharge lamp in which the major
portion of the light is produced by radiation of metal halides
and their products of dissociation, possibly in combination
with metallic vapors.
``(64) Metal halide lamp fixture.--The term `metal halide
lamp fixture' means a light fixture for general lighting
application designed to be operated with a metal halide lamp
and a ballast for a metal halide lamp.
``(65) Probe-start metal halide ballast.--The term `probe-
start metal halide ballast' means a ballast that--
``(A) starts a probe-start metal halide lamp that
contains a third starting electrode (probe) in the arc
tube; and
``(B) does not generally contain an igniter but
instead starts lamps with high ballast open circuit
voltage.
``(66) Pulse-start metal halide ballast.--
``(A) In general.--The term `pulse-start metal
halide ballast' means an electronic or electromagnetic
ballast that starts a pulse-start metal halide lamp
with high voltage pulses.
``(B) Starting process.--For the purpose of
subparagraph (A)--
``(i) lamps shall be started by first
providing a high voltage pulse for ionization
of the gas to produce a glow discharge; and
``(ii) to complete the starting process,
power shall be provided by the ballast to
sustain the discharge through the glow-to-arc
transition.''.
(b) Coverage.--Section 322(a) of the Energy Policy and Conservation
Act (42 U.S.C. 6292(a)) is amended--
(1) by redesignating paragraph (19) as paragraph (20); and
(2) by inserting after paragraph (18) the following:
``(19) Metal halide lamp fixtures.''.
(c) Test Procedures.--Section 323(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6293(b)) (as amended by section 301(b)) is
amended by adding at the end the following:
``(18) Metal halide lamp ballasts.--Test procedures for
metal halide lamp ballasts shall be based on ANSI Standard
C82.6-2005, entitled `Ballasts for High Intensity Discharge
Lamps--Method of Measurement'.''.
(d) Labeling.--Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended--
(1) by redesignating subparagraphs (C) through (G) as
subparagraphs (D) through (H), respectively; and
(2) by inserting after subparagraph (B) the following:
``(C) Metal halide lamp fixtures.--
``(i) In general.--The Commission shall
issue labeling rules under this section
applicable to the covered product specified in
section 322(a)(19) and to which standards are
applicable under section 325.
``(ii) Labeling.--The rules shall provide
that the labeling of any metal halide lamp
fixture manufactured on or after the later of
January 1, 2009, or the date that is 270 days
after the date of enactment of this
subparagraph, shall indicate conspicuously, in
a manner prescribed by the Commission under
subsection (b) by July 1, 2008, a capital
letter `E' printed within a circle on the
packaging of the fixture, and on the ballast
contained in the fixture.''.
(e) Standards.--Section 325 of the Energy Policy and Conservation
Act (42 U.S.C. 6295) (as amended by section 310) is amended--
(1) by redesignating subsection (hh) as subsection (ii);
(2) by inserting after subsection (gg) the following:
``(hh) Metal Halide Lamp Fixtures.--
``(1) Standards.--
``(A) In general.--Subject to subparagraphs (B) and
(C), metal halide lamp fixtures designed to be operated
with lamps rated greater than or equal to 150 watts but
less than or equal to 500 watts shall contain--
``(i) a pulse-start metal halide ballast
with a minimum ballast efficiency of 88
percent;
``(ii) a magnetic probe-start ballast with
a minimum ballast efficiency of 94 percent; or
``(iii) a nonpulse-start electronic ballast
with--
``(I) a minimum ballast efficiency
of 92 percent for wattages greater than
250 watts; and
``(II) a minimum ballast efficiency
of 90 percent for wattages less than or
equal to 250 watts.
``(B) Exclusions.--The standards established under
subparagraph (A) shall not apply to--
``(i) fixtures with regulated lag ballasts;
``(ii) fixtures that use electronic
ballasts that operate at 480 volts; or
``(iii) fixtures that--
``(I) are rated only for 150 watt
lamps;
``(II) are rated for use in wet
locations, as specified by the National
Electrical Code 2002, section 410.4(A);
and
``(III) contain a ballast that is
rated to operate at ambient air
temperatures above 50\o\ C, as
specified by UL 1029-2001.
``(C) Application.--The standards established under
subparagraph (A) shall apply to metal halide lamp
fixtures manufactured on or after the later of--
``(i) January 1, 2009; or
``(ii) the date that is 270 days after the
date of enactment of this subsection.
``(2) Final rule by january 1, 2012.--
``(A) In general.--Not later than January 1, 2012,
the Secretary shall publish a final rule to determine
whether the standards established under paragraph (1)
should be amended.
``(B) Administration.--The final rule shall--
``(i) contain any amended standard; and
``(ii) apply to products manufactured on or
after January 1, 2015.
``(3) Final rule by january 1, 2019.--
``(A) In general.--Not later than January 1, 2019,
the Secretary shall publish a final rule to determine
whether the standards then in effect should be amended.
``(B) Administration.--The final rule shall--
``(i) contain any amended standards; and
``(ii) apply to products manufactured after
January 1, 2022.
``(4) Design and performance requirements.--Notwithstanding
any other provision of law, any standard established pursuant
to this subsection may contain both design and performance
requirements.''; and
(3) in paragraph (2) of subsection (ii) (as redesignated by
paragraph (2)), by striking ``(gg)'' each place it appears and
inserting ``(hh)''.
(f) Effect on Other Law.--Section 327(c) of the Energy Policy and
Conservation Act (42 U.S.C. 6297(c)) is amended--
(1) in paragraph (8)(B), by striking the period at the end
and inserting ``; and''; and
(2) by adding at the end the following:
``(9) is a regulation concerning metal halide lamp fixtures
adopted by the California Energy Commission on or before
January 1, 2011, except that--
``(A) if the Secretary fails to issue a final rule
within 180 days after the deadlines for rulemakings in
section 325(hh), notwithstanding any other provision of
this section, preemption shall not apply to a
regulation concerning metal halide lamp fixtures
adopted by the California Energy Commission--
``(i) on or before July 1, 2015, if the
Secretary fails to meet the deadline specified
in section 325(hh)(2); or
``(ii) on or before July 1, 2022, if the
Secretary fails to meet the deadline specified
in section 325(hh)(3).''.
SEC. 325. ENERGY EFFICIENCY LABELING FOR CONSUMER ELECTRONIC PRODUCTS.
(a) In General.--Section 324(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)) (as amended by section 324(d)) is
amended--
(1) in paragraph (2), by adding at the end the following:
``(I) Labeling requirements.--
``(i) In general.--Subject to clauses (ii)
through (iv), not later than 18 months after
the date of issuance of applicable Department
of Energy testing procedures, the Commission,
in consultation with the Secretary and the
Administrator of the Environmental Protection
Agency (acting through the Energy Star
program), shall, by regulation, prescribe
labeling or other disclosure requirements for
the energy use of--
``(I) televisions;
``(II) personal computers;
``(III) cable or satellite set-top
boxes;
``(IV) stand-alone digital video
recorder boxes; and
``(V) personal computer monitors.
``(ii) Alternate testing procedures.--In
the absence of applicable testing procedures
described in clause (i) for products described
in subclauses (I) through (V) of that clause,
the Commission may, by regulation, prescribe
labeling or other disclosure requirements for a
consumer product category described in clause
(i) if the Commission--
``(I) identifies adequate non-
Department of Energy testing procedures
for those products; and
``(II) determines that labeling of,
or other disclosures relating to, those
products is likely to assist consumers
in making purchasing decisions.
``(iii) Deadline and requirements for
labeling.--
``(I) Deadline.--Not later than 18
months after the date of promulgation
of any requirements under clause (i) or
(ii), the Commission shall require
labeling of, or other disclosure
requirements for, electronic products
described in clause (i).
``(II) Requirements.--The
requirements prescribed under clause
(i) or (ii) may include specific
requirements for each electronic
product to be labeled with respect to
the placement, size, and content of
Energy Guide labels.
``(iv) Determination of feasibility.--
Clause (i) or (ii) shall not apply in any case
in which the Commission determines that
labeling in accordance with this subsection--
``(I) is not technologically or
economically feasible; or
``(II) is not likely to assist
consumers in making purchasing
decisions.''; and
(2) by adding at the end the following:
``(6) Authority to include additional product categories.--
The Commission may, by regulation, require labeling or other
disclosures in accordance with this subsection for any consumer
product not specified in this subsection or section 322 if the
Commission determines that labeling for the product is likely
to assist consumers in making purchasing decisions.''.
(b) Content of Label.--Section 324(c) of the Energy Policy and
Conservation Act (42 U.S.C. 6924(c)) is amended by adding at the end
the following:
``(9) Discretionary application.--The Commission may apply
paragraphs (1), (2), (3), (5), and (6) of this subsection to
the labeling of any product covered by paragraph (2)(I) or (6)
of subsection (a).''.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
SEC. 401. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Advisory committee.--The term ``Advisory Committee''
means the Green Building Advisory Committee established under
section 484.
(3) Commercial director.--The term ``Commercial Director''
means the individual appointed to the position established
under section 421.
(4) Consortium.--The term ``Consortium'' means the High-
Performance Green Building Partnership Consortium created in
response to section 436(c)(1) to represent the private sector
in a public-private partnership to promote high-performance
green buildings and zero-net-energy commercial buildings.
(5) Cost-effective lighting technology.--
(A) In general.--The term ``cost-effective lighting
technology'' means a lighting technology that--
(i) will result in substantial operational
cost savings by ensuring an installed
consumption of not more than 1 watt per square
foot; or
(ii) is contained in a list under--
(I) section 553 of Public Law 95-
619 (42 U.S.C. 8259b);
(II) Federal acquisition regulation
23-203; and
(III) is at least as energy-
conserving as required by other
provisions of this Act, including the
requirements of this title and title
III which shall be applicable to the
extent that they would achieve greater
energy savings than provided under
clause (i) or this clause.
(B) Inclusions.--The term ``cost-effective lighting
technology'' includes--
(i) lamps;
(ii) ballasts;
(iii) luminaires;
(iv) lighting controls;
(v) daylighting; and
(vi) early use of other highly cost-
effective lighting technologies.
(6) Cost-effective technologies and practices.--The term
``cost-effective technologies and practices'' means a
technology or practice that--
(A) will result in substantial operational cost
savings by reducing electricity or fossil fuel
consumption, water, or other utility costs, including
use of geothermal heat pumps;
(B) complies with the provisions of section 553 of
Public Law 95-619 (42 U.S.C. 8259b) and Federal
acquisition regulation 23-203; and
(C) is at least as energy and water conserving as
required under this title, including sections 431
through 435, and title V, including section 511 through
525, which shall be applicable to the extent that they
are more stringent or require greater energy or water
savings than required by this section.
(7) Federal director.--The term ``Federal Director'' means
the individual appointed to the position established under
section 436(a).
(8) Federal facility.--The term ``Federal facility'' means
any building that is constructed, renovated, leased, or
purchased in part or in whole for use by the Federal
Government.
(9) Operational cost savings.--
(A) In general.--The term ``operational cost
savings'' means a reduction in end-use operational
costs through the application of cost-effective
technologies and practices or geothermal heat pumps,
including a reduction in electricity consumption
relative to consumption by the same customer or at the
same facility in a given year, as defined in guidelines
promulgated by the Administrator pursuant to section
329(b) of the Clean Air Act, that achieves cost savings
sufficient to pay the incremental additional costs of
using cost-effective technologies and practices
including geothermal heat pumps by not later than the
later of the date established under sections 431
through 434, or--
(i) for cost-effective technologies and
practices, the date that is 5 years after the
date of installation; and
(ii) for geothermal heat pumps, as soon as
practical after the date of installation of the
applicable geothermal heat pump.
(B) Inclusions.--The term ``operational cost
savings'' includes savings achieved at a facility as a
result of--
(i) the installation or use of cost-
effective technologies and practices; or
(ii) the planting of vegetation that shades
the facility and reduces the heating, cooling,
or lighting needs of the facility.
(C) Exclusion.--The term ``operational cost
savings'' does not include savings from measures that
would likely be adopted in the absence of cost-
effective technology and practices programs, as
determined by the Administrator.
(10) Geothermal heat pump.--The term ``geothermal heat
pump'' means any heating or air conditioning technology that--
(A) uses the ground or ground water as a thermal
energy source to heat, or as a thermal energy sink to
cool, a building; and
(B) meets the requirements of the Energy Star
program of the Environmental Protection Agency
applicable to geothermal heat pumps on the date of
purchase of the technology.
(11) GSA facility.--
(A) In general.--The term ``GSA facility'' means
any building, structure, or facility, in whole or in
part (including the associated support systems of the
building, structure, or facility) that--
(i) is constructed (including facilities
constructed for lease), renovated, or
purchased, in whole or in part, by the
Administrator for use by the Federal
Government; or
(ii) is leased, in whole or in part, by the
Administrator for use by the Federal
Government--
(I) except as provided in subclause
(II), for a term of not less than 5
years; or
(II) for a term of less than 5
years, if the Administrator determines
that use of cost-effective technologies
and practices would result in the
payback of expenses.
(B) Inclusion.--The term ``GSA facility'' includes
any group of buildings, structures, or facilities
described in subparagraph (A) (including the associated
energy-consuming support systems of the buildings,
structures, and facilities).
(C) Exemption.--The Administrator may exempt from
the definition of ``GSA facility'' under this paragraph
a building, structure, or facility that meets the
requirements of section 543(c) of Public Law 95-619 (42
U.S.C. 8253(c)).
(12) High-performance building.--The term ``high
performance building'' means a building that integrates and
optimizes on a life cycle basis all major high performance
attributes, including energy conservation, environment, safety,
security, durability, accessibility, cost-benefit,
productivity, sustainability, functionality, and operational
considerations.
(13) High-performance green building.--The term ``high-
performance green building'' means a high-performance building
that, during its life-cycle, as compared with similar buildings
(as measured by Commercial Buildings Energy Consumption Survey
or Residential Energy Consumption Survey data from the Energy
Information Agency)--
(A) reduces energy, water, and material resource
use;
(B) improves indoor environmental quality,
including reducing indoor pollution, improving thermal
comfort, and improving lighting and acoustic
environments that affect occupant health and
productivity;
(C) reduces negative impacts on the environment
throughout the life-cycle of the building, including
air and water pollution and waste generation;
(D) increases the use of environmentally preferable
products, including biobased, recycled content, and
nontoxic products with lower life-cycle impacts;
(E) increases reuse and recycling opportunities;
(F) integrates systems in the building;
(G) reduces the environmental and energy impacts of
transportation through building location and site
design that support a full range of transportation
choices for users of the building; and
(H) considers indoor and outdoor effects of the
building on human health and the environment,
including--
(i) improvements in worker productivity;
(ii) the life-cycle impacts of building
materials and operations; and
(iii) other factors that the Federal
Director or the Commercial Director consider to
be appropriate.
(14) Life-cycle.--The term ``life-cycle'', with respect to
a high-performance green building, means all stages of the
useful life of the building (including components, equipment,
systems, and controls of the building) beginning at conception
of a high-performance green building project and continuing
through site selection, design, construction, landscaping,
commissioning, operation, maintenance, renovation,
deconstruction or demolition, removal, and recycling of the
high-performance green building.
(15) Life-cycle assessment.--The term ``life-cycle
assessment'' means a comprehensive system approach for
measuring the environmental performance of a product or service
over the life of the product or service, beginning at raw
materials acquisition and continuing through manufacturing,
transportation, installation, use, reuse, and end-of-life waste
management.
(16) Life-cycle costing.--The term ``life-cycle costing'',
with respect to a high-performance green building, means a
technique of economic evaluation that--
(A) sums, over a given study period, the costs of
initial investment (less resale value), replacements,
operations (including energy use), and maintenance and
repair of an investment decision; and
(B) is expressed--
(i) in present value terms, in the case of
a study period equivalent to the longest useful
life of the building, determined by taking into
consideration the typical life of such a
building in the area in which the building is
to be located; or
(ii) in annual value terms, in the case of
any other study period.
(17) Office of commercial high-performance green
buildings.--The term ``Office of Commercial High-Performance
Green Buildings'' means the Office of Commercial High-
Performance Green Buildings established under section 421(a).
(18) Office of federal high-performance green buildings.--
The term ``Office of Federal High-Performance Green Buildings''
means the Office of Federal High-Performance Green Buildings
established under section 436(a).
(19) Practices.--The term ``practices'' means design,
financing, permitting, construction, commissioning, operation
and maintenance, and other practices that contribute to
achieving zero-net-energy buildings or facilities.
(20) Zero-net-energy commercial building.--The term ``zero-
net-energy commercial building'' means a commercial building
that is designed, constructed, and operated to--
(A) require a greatly reduced quantity of energy to
operate;
(B) meet the balance of energy needs from sources
of energy that do not produce greenhouse gases;
(C) therefore result in no net emissions of
greenhouse gases; and
(D) be economically viable.
Subtitle A--Residential Building Efficiency
SEC. 411. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.
(a) In General.--Section 422 of the Energy Conservation and
Production Act (42 U.S.C. 6872) is amended by striking `` appropriated
$500,000,000 for fiscal year 2006, $600,000,000 for fiscal year 2007,
and $700,000,000 for fiscal year 2008'' and inserting ``appropriated--
``(1) $750,000,000 for fiscal year 2008;
``(2) $900,000,000 for fiscal year 2009;
``(3) $1,050,000,000 for fiscal year 2010;
``(4) $1,200,000,000 for fiscal year 2011; and
``(5) $1,400,000,000 for fiscal year 2012.''.
(b) Sustainable Energy Resources for Consumers Grants.--
(1) In general.--The Secretary may make funding available
to local weatherization agencies from amounts authorized under
the amendment made by subsection (a) to expand the
weatherization assistance program for residential buildings to
include materials, benefits, and renewable and domestic energy
technologies not covered by the program (as of the date of
enactment of this Act), if the State weatherization grantee
certifies that the applicant has the capacity to carry out the
proposed activities and that the grantee will include the
project in the financial oversight of the grantee of the
weatherization assistance program.
(2) Priority.--In selecting grant recipients under this
subsection, the Secretary shall give priority to--
(A) the expected effectiveness and benefits of the
proposed project to low- and moderate-income energy
consumers;
(B) the potential for replication of successful
results;
(C) the impact on the health and safety and energy
costs of consumers served; and
(D) the extent of partnerships with other public
and private entities that contribute to the resources
and implementation of the program, including financial
partnerships.
(3) Funding.--
(A) In general.--Except as provided in paragraph
(2), the amount of funds used for projects described in
paragraph (1) may equal up to 2 percent of the amount
of funds made available for any fiscal year under
section 422 of the Energy Conservation and Production
Act (42 U.S.C. 6872).
(B) Exception.--No funds may be used for
sustainable energy resources for consumers grants for a
fiscal year under this subsection if the amount of
funds made available for the fiscal year to carry out
the Weatherization Assistance Program for Low-Income
Persons established under part A of title IV of the
Energy Conservation and Production Act (42 U.S.C. 6861
et seq.) is less than $275,000,000.
(c) Definition of State.--Section 412 of the Energy Conservation
and Production Act (42 U.S.C. 6862) is amended by striking paragraph
(8) and inserting the following:
``(8) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the
United States.''.
SEC. 412. STUDY OF RENEWABLE ENERGY REBATE PROGRAMS.
(a) In General.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall conduct, and submit to
Congress a report on, a study regarding the rebate programs established
under sections 124 and 206(c) of the Energy Policy Act of 2005 (42
U.S.C. 15821, 15853).
(b) Components.--In conducting the study, the Secretary shall--
(1) develop a plan for how the rebate programs would be
carried out if the programs were funded; and
(2) determine the minimum amount of funding the program
would need to receive in order to accomplish the goals of the
programs.
SEC. 413. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED HOUSING.
(a) Establishment of Standards.--
(1) In general.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall by regulation
establish standards for energy efficiency in manufactured
housing.
(2) Notice, comment, and consultation.--Standards described
in paragraph (1) shall be established after--
(A) notice and an opportunity for comment by
manufacturers of manufactured housing and other
interested parties; and
(B) consultation with the Secretary of Housing and
Urban Development, who may seek further counsel from
the Manufactured Housing Consensus Committee.
(b) Requirements.--
(1) International energy conservation code.--The energy
conservation standards established under this section shall be
based on the most recent version of the International Energy
Conservation Code (including supplements), except in cases in
which the Secretary finds that the code is not cost-effective,
or a more stringent standard would be more cost-effective,
based on the impact of the code on the purchase price of
manufactured housing and on total life-cycle construction and
operating costs.
(2) Considerations.--The energy conservation standards
established under this section may--
(A) take into consideration the design and factory
construction techniques of manufactured homes;
(B) be based on the climate zones established by
the Department of Housing and Urban Development rather
than the climate zones under the International Energy
Conservation Code; and
(C) provide for alternative practices that result
in net estimated energy consumption equal to or less
than the specified standards.
(3) Updating.--The energy conservation standards
established under this section shall be updated not later
than--
(A) 1 year after the date of enactment of this Act;
and
(B) 1 year after any revision to the International
Energy Conservation Code.
(c) Enforcement.--Any manufacturer of manufactured housing that
violates a provision of the regulations under subsection (a) is liable
to the United States for a civil penalty in an amount not exceeding 1
percent of the manufacturer's retail list price of the manufactured
housing.
Subtitle B--High-Performance Commercial Buildings
SEC. 421. COMMERCIAL HIGH-PERFORMANCE GREEN BUILDINGS.
(a) Director of Commercial High-Performance Green Buildings.--
Notwithstanding any other provision of law, the Secretary, acting
through the Assistant Secretary of Energy Efficiency and Renewable
Energy, shall appoint a Director of Commercial High-Performance Green
Buildings to a position in the career-reserved Senior Executive
service, with the principal responsibility to--
(1) establish and manage the Office of Commercial High-
Performance Green Buildings; and
(2) carry out other duties as required under this subtitle.
(b) Qualifications.--The Commercial Director shall be an
individual, who by reason of professional background and experience, is
specifically qualified to carry out the duties required under this
subtitle.
(c) Duties.--The Commercial Director shall, with respect to
development of high-performance green buildings and zero-energy
commercial buildings nationwide--
(1) coordinate the activities of the Office of Commercial
High-Performance Green Buildings with the activities of the
Office of Federal High-Performance Green Buildings;
(2) develop the legal predicates and agreements for,
negotiate, and establish one or more public-private
partnerships with the Consortium, members of the Consortium,
and other capable parties meeting the qualifications of the
Consortium, to further such development;
(3) represent the public and the Department in negotiating
and performing in accord with such public-private partnerships;
(4) use appropriated funds in an effective manner to
encourage the maximum investment of private funds to achieve
such development;
(5) promote research and development of high performance
green buildings, consistent with section 423; and
(6) jointly establish with the Federal Director a national
high-performance green building clearinghouse in accordance
with section 423(1), which shall provide high-performance green
building information and disseminate research results through--
(A) outreach;
(B) education; and
(C) the provision of technical assistance.
(d) Reporting.--The Commercial Director shall report directly to
the Assistant Secretary for Energy Efficiency and Renewable Energy, or
to other senior officials in a way that facilitates the integrated
program of this subtitle for both energy efficiency and renewable
energy and both technology development and technology deployment.
(e) Coordination.--The Commercial Director shall ensure full
coordination of high-performance green building information and
activities, including activities under this subtitle, within the
Federal Government by working with the General Services Administration
and all relevant agencies, including, at a minimum--
(1) the Environmental Protection Agency;
(2) the Office of the Federal Environmental Executive;
(3) the Office of Federal Procurement Policy;
(4) the Department of Energy, particularly the Federal
Energy Management Program;
(5) the Department of Health and Human Services;
(6) the Department of Housing and Urban Development;
(7) the Department of Defense;
(8) the National Institute of Standards and Technology;
(9) the Department of Transportation;
(10) the Office of Science Technology and Policy; and
(11) such nonprofit high-performance green building rating
and analysis entities as the Commercial Director determines can
offer support, expertise, and review services.
(f) High-Performance Green Building Partnership Consortium.--
(1) Recognition.--Not later than 90 days after the date of
enactment of this Act, the Commercial Director shall formally
recognize one or more groups that qualify as a high-performance
green building partnership consortium.
(2) Representation to qualify.--To qualify under this
section, any consortium shall include representation from--
(A) the design professions, including national
associations of architects and of professional
engineers;
(B) the development, construction, financial, and
real estate industries;
(C) building owners and operators from the public
and private sectors;
(D) academic and research organizations, including
at least one national laboratory with extensive
commercial building energy expertise;
(E) building code agencies and organizations,
including a model energy code-setting organization;
(F) independent high-performance green building
associations or councils;
(G) experts in indoor air quality and environmental
factors;
(H) experts in intelligent buildings and integrated
building information systems;
(I) utility energy efficiency programs;
(J) manufacturers and providers of equipment and
techniques used in high performance green buildings;
(K) public transportation industry experts; and
(L) nongovernmental energy efficiency
organizations.
(3) Funding.--The Secretary may make payments to the
Consortium pursuant to the terms of a public-private
partnership for such activities of the Consortium undertaken
under such a partnership as described in this subtitle directly
to the Consortium or through one or more of its members.
(g) Report.--Not later than 2 years after the date of enactment of
this Act, and biennially thereafter, the Commercial Director, in
consultation with the Consortium, shall submit to Congress a report
that--
(1) describes the status of the high-performance green
building initiatives under this subtitle and other Federal
programs affecting commercial high-performance green buildings
in effect as of the date of the report, including--
(A) the extent to which the programs are being
carried out in accordance with this subtitle; and
(B) the status of funding requests and
appropriations for those programs; and
(2) summarizes and highlights development, at the State and
local level, of high-performance green building initiatives,
including executive orders, policies, or laws adopted promoting
high-performance green building (including the status of
implementation of those initiatives).
SEC. 422. ZERO NET ENERGY COMMERCIAL BUILDINGS INITIATIVE.
(a) Definitions.--In this section:
(1) Consortium.--The term ``consortium'' means a High-
Performance Green Building Consortium selected by the
Commercial Director.
(2) Initiative.--The term ``initiative'' means the Zero-
Net-Energy Commercial Buildings Initiative established under
subsection (b)(1).
(3) Zero-net-energy commercial building.--The term ``zero-
net-energy commercial building'' means a high-performance
commercial building that is designed, constructed, and
operated--
(A) to require a greatly reduced quantity of energy
to operate;
(B) to meet the balance of energy needs from
sources of energy that do not produce greenhouse gases;
(C) in a manner that will result in no net
emissions of greenhouse gases; and
(D) to be economically viable.
(b) Establishment.--
(1) In general.--The Commercial Director shall establish an
initiative, to be known as the ``Zero-Net-Energy Commercial
Buildings Initiative''--
(A) to reduce the quantity of energy consumed by
commercial buildings located in the United States; and
(B) to achieve the development of zero net energy
commercial buildings in the United States.
(2) Consortium.--
(A) In general.--Not later than 180 days after the
date of enactment of this Act, the Commercial Director
shall competitively select, and enter into an agreement
with, a consortium to develop and carry out the
initiative.
(B) Agreements.--In entering into an agreement with
a consortium under subparagraph (A), the Commercial
Director shall use the authority described in section
646(g) of the Department of Energy Organization Act (42
U.S.C. 7256(g)), to the maximum extent practicable.
(c) Goal of Initiative.--The goal of the initiative shall be to
develop and disseminate technologies, practices, and policies for the
development and establishment of zero net energy commercial buildings
for--
(1) any commercial building newly constructed in the United
States by 2030;
(2) 50 percent of the commercial building stock of the
United States by 2040; and
(3) all commercial buildings in the United States by 2050.
(d) Components.--In carrying out the initiative, the Commercial
Director, in consultation with the consortium, may--
(1) conduct research and development on building science,
design, materials, components, equipment and controls,
operation and other practices, integration, energy use
measurement, and benchmarking;
(2) conduct pilot programs and demonstration projects to
evaluate replicable approaches to achieving energy efficient
commercial buildings for a variety of building types in a
variety of climate zones;
(3) conduct deployment, dissemination, and technical
assistance activities to encourage widespread adoption of
technologies, practices, and policies to achieve energy
efficient commercial buildings;
(4) conduct other research, development, demonstration, and
deployment activities necessary to achieve each goal of the
initiative, as determined by the Commercial Director, in
consultation with the consortium;
(5) develop training materials and courses for building
professionals and trades on achieving cost-effective high-
performance energy efficient buildings;
(6) develop and disseminate public education materials to
share information on the benefits and cost-effectiveness of
high-performance energy efficient buildings;
(7) support code-setting organizations and State and local
governments in developing minimum performance standards in
building codes that recognize the ready availability of many
technologies utilized in high-performance energy efficient
buildings;
(8) develop strategies for overcoming the split incentives
between builders and purchasers, and landlords and tenants, to
ensure that energy efficiency and high-performance investments
are made that are cost-effective on a lifecycle basis; and
(9) develop improved means of measurement and verification
of energy savings and performance for public dissemination.
(e) Cost Sharing.--In carrying out this section, the Commercial
Director shall require cost sharing in accordance with section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352).
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $20,000,000 for fiscal year 2008;
(2) $50,000,000 for each of fiscal years 2009 and 2010;
(3) $100,000,000 for each of fiscal years 2011 and 2012;
and
(4) $200,000,000 for each of fiscal years 2013 through
2018.
SEC. 423. PUBLIC OUTREACH.
The Commercial Director and Federal Director, in coordination with
the Consortium, shall carry out public outreach to inform individuals
and entities of the information and services available Governmentwide
by--
(1) establishing and maintaining a national high-
performance green building clearinghouse, including on the
internet, that--
(A) identifies existing similar efforts and
coordinates activities of common interest; and
(B) provides information relating to high-
performance green buildings, including hyperlinks to
internet sites that describe the activities,
information, and resources of--
(i) the Federal Government;
(ii) State and local governments;
(iii) the private sector (including
nongovernmental and nonprofit entities and
organizations); and
(iv) international organizations;
(2) identifying and recommending educational resources for
implementing high-performance green building practices,
including security and emergency benefits and practices;
(3) providing access to technical assistance, tools, and
resources for constructing high-performance green buildings,
particularly tools to conduct life-cycle costing and life-cycle
assessment;
(4) providing information on application processes for
certifying a high-performance green building, including
certification and commissioning;
(5) providing to the public, through the Commercial
Director, technical and research information or other forms of
assistance or advice that would be useful in planning and
constructing high-performance green buildings;
(6) using such additional methods as are determined by the
Commercial Director to be appropriate to conduct public
outreach;
(7) surveying existing research and studies relating to
high-performance green buildings; and
(8) coordinating activities of common interest.
Subtitle C--High-Performance Federal Buildings
SEC. 431. ENERGY REDUCTION GOALS FOR FEDERAL BUILDINGS.
Section 543(a)(1) of the National Energy Conservation Policy Act
(42 U.S.C. 8253(a)(1)) is amended by striking the table and inserting
the following:
``Fiscal Year Percentage reduction
2006.......................................... 2
2007.......................................... 4
2008.......................................... 9
2009.......................................... 12
2010.......................................... 15
2011.......................................... 18
2012.......................................... 21
2013.......................................... 24
2014.......................................... 27
2015.......................................... 30.''.
SEC. 432. MANAGEMENT OF ENERGY AND WATER EFFICIENCY IN FEDERAL
BUILDINGS.
Section 543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is amended by adding at the end the following:
``(f) Use of Energy and Water Efficiency Measures in Federal
Buildings.--
``(1) Definitions.--In this subsection:
``(A) Commissioning.--The term `commissioning',
with respect to a facility, means a systematic
process--
``(i) of ensuring, using appropriate
verification and documentation, during the
period beginning on the initial day of the
design phase of the facility and ending not
earlier than 1 year after the date of
completion of construction of the facility,
that all facility systems perform interactively
in accordance with--
``(I) the design documentation and
intent of the facility; and
``(II) the operational needs of the
owner of the facility, including
preparation of operation personnel; and
``(ii) the primary goal of which is to
ensure fully functional systems that can be
properly operated and maintained during the
useful life of the facility.
``(B) Energy manager.--
``(i) In general.--The term `energy
manager', with respect to a facility, means the
individual who is responsible for--
``(I) ensuring compliance with this
subsection by the facility; and
``(II) reducing energy use at the
facility.
``(ii) Inclusions.--The term `energy
manager' may include--
``(I) a contractor of a facility;
``(II) a part-time employee of a
facility; and
``(III) an individual who is
responsible for multiple facilities.
``(C) Facility.--
``(i) In general.--The term `facility'
means any building, installation, structure, or
other property (including any applicable
fixtures) owned or operated by, or constructed
or manufactured and leased to, the Federal
Government.
``(ii) Inclusions.--The term `facility'
includes--
``(I) a group of facilities at a
single location or multiple locations
managed as an integrated operation; and
``(II) contractor-operated
facilities owned by the Federal
Government.
``(iii) Exclusions.--The term `facility'
does not include any land or site for which the
cost of utilities is not paid by the Federal
Government.
``(D) Life cycle cost-effective.--The term `life
cycle cost-effective', with respect to a measure, means
a measure the estimated savings of which exceed the
estimated costs over the lifespan of the measure, as
determined in accordance with section 544.
``(E) Payback period.--
``(i) In general.--Subject to clause (ii),
the term `payback period', with respect to a
measure, means a value equal to the quotient
obtained by dividing--
``(I) the estimated initial
implementation cost of the measure
(other than financing costs); by
``(II) the annual cost savings
resulting from the measure, including--
``(aa) net savings in
estimated energy and water
costs; and
``(bb) operations,
maintenance, repair,
replacement, and other direct
costs.
``(ii) Modifications and exceptions.--The
Secretary, in guidelines issued pursuant to
paragraph (6), may make such modifications and
provide such exceptions to the calculation of
the payback period of a measure as the
Secretary determines to be appropriate to
achieve the purposes of this Act.
``(F) Recommissioning.--The term `recommissioning'
means a process--
``(i) of commissioning a facility or system
beyond the project development and warranty
phases of the facility or system; and
``(ii) the primary goal of which is to
ensure optimum performance of a facility, in
accordance with design or current operating
needs, over the useful life of the facility,
while meeting building occupancy requirements.
``(G) Retrocommissioning.--The term
`retrocommissioning' means a process of commissioning a
facility or system that was not commissioned at time of
construction of the facility or system.
``(2) Facility energy managers.--
``(A) In general.--Each Federal agency shall
designate an energy manager responsible for
implementing this subsection and reducing energy use at
each facility that meets criteria under subparagraph
(B).
``(B) Covered facilities.--The Secretary shall
develop criteria, after consultation with affected
agencies, energy efficiency advocates, and energy and
utility service providers, that cover, at a minimum,
Federal facilities, including central utility plants
and distribution systems and other energy intensive
operations, that constitute at least 75 percent of
facility energy use at each agency.
``(3) Energy and water evaluations.--
``(A) Evaluations.--Effective beginning on the date
that is 180 days after the date of enactment of this
subsection and annually thereafter, energy managers
shall complete, for each calendar year, a comprehensive
energy and water evaluation for approximately 25
percent of the facilities of each agency that meet the
criteria under paragraph (2)(B) in a manner that
ensures that an evaluation of each such facility is
completed at least once every 4 years.
``(B) Recommissioning and retrocommissioning.--As
part of the evaluation under subparagraph (A), the
energy manager shall identify and assess
recommissioning measures (or, if the facility has never
been commissioned, retrocommissioning measures) for
each such facility.
``(4) Implementation of identified energy and water
efficiency measures.--Not later than 2 years after the
completion of each evaluation under paragraph (3), each energy
manager may--
``(A) implement any energy- or water-saving measure
that the Federal agency identified in the evaluation
conducted under paragraph (3) that is life cycle cost-
effective; and
``(B) bundle individual measures of varying
paybacks together into combined projects.
``(5) Follow-up on implemented measures.--For each measure
implemented under paragraph (4), each energy manager shall
ensure that--
``(A) equipment, including building and equipment
controls, is fully commissioned at acceptance to be
operating at design specifications;
``(B) a plan for appropriate operations,
maintenance, and repair of the equipment is in place at
acceptance and is followed;
``(C) equipment and system performance is measured
during its entire life to ensure proper operations,
maintenance, and repair; and
``(D) energy and water savings are measured and
verified.
``(6) Guidelines.--
``(A) In general.--The Secretary shall issue
guidelines and necessary criteria that each Federal
agency shall follow for implementation of--
``(i) paragraphs (2) and (3) not later than
180 days after the date of enactment of this
subsection; and
``(ii) paragraphs (4) and (5) not later
than 1 year after the date of enactment of this
subsection.
``(B) Relationship to funding source.--The
guidelines issued by the Secretary under subparagraph
(A) shall be appropriate and uniform for measures
funded with each type of funding made available under
paragraph (10), but may distinguish between different
types of measures project size, and other criteria the
Secretary determines are relevant.
``(7) Web-based certification.--
``(A) In general.--For each facility that meets the
criteria established by the Secretary under paragraph
(2)(B), the energy manager shall use the web-based
tracking system under subparagraph (B) to certify
compliance with the requirements for--
``(i) energy and water evaluations under
paragraph (3);
``(ii) implementation of identified energy
and water measures under paragraph (4); and
``(iii) follow-up on implemented measures
under paragraph (5).
``(B) Deployment.--
``(i) In general.--Not later than 1 year
after the date of enactment of this subsection,
the Secretary shall develop and deploy a web-
based tracking system required under this
paragraph in a manner that tracks, at a
minimum--
``(I) the covered facilities;
``(II) the status of meeting the
requirements specified in subparagraph
(A);
``(III) the estimated cost and
savings for measures required to be
implemented in a facility;
``(IV) the measured savings and
persistence of savings for implemented
measures; and
``(V) the benchmarking information
disclosed under paragraph (8)(C).
``(ii) Ease of compliance.--The Secretary
shall ensure that energy manager compliance
with the requirements in this paragraph, to the
maximum extent practicable--
``(I) can be accomplished with the
use of streamlined procedures and
templates that minimize the time
demands on Federal employees; and
``(II) is coordinated with other
applicable energy reporting
requirements.
``(C) Availability.--
``(i) In general.--Subject to clause (ii),
the Secretary shall make the web-based tracking
system required under this paragraph available
to Congress, other Federal agencies, and the
public through the Internet.
``(ii) Exemptions.--At the request of a
Federal agency, the Secretary may exempt
specific data for specific facilities from
disclosure under clause (i) for national
security purposes.
``(8) Benchmarking of federal facilities.--
``(A) In general.--The energy manager shall enter
energy use data for each metered building that is (or
is a part of) a facility that meets the criteria
established by the Secretary under paragraph (2)(B)
into a building energy use benchmarking system, such as
the Energy Star Portfolio Manager.
``(B) System and guidance.--Not later than 1 year
after the date of enactment of this subsection, the
Secretary shall--
``(i) select or develop the building energy
use benchmarking system required under this
paragraph for each type of building; and
``(ii) issue guidance for use of the
system.
``(C) Public disclosure.--Each energy manager shall
post the information entered into, or generated by, a
benchmarking system under this subsections, on the web-
based tracking system under paragraph (7)(B). The
energy manager shall update such information each year,
and shall include in such reporting previous years'
information to allow changes in building performance to
be tracked over time.
``(9) Federal agency scorecards.--
``(A) In general.--The Director of the Office of
Management and Budget shall issue semiannual scorecards
for energy management activities carried out by each
Federal agency that includes--
``(i) summaries of the status of
implementing the various requirements of the
agency and its energy managers under this
subsection; and
``(ii) any other means of measuring
performance that the Director considers
appropriate.
``(B) Availability.--The Director shall make the
scorecards required under this paragraph available to
Congress, other Federal agencies, and the public
through the Internet.
``(10) Funding and implementation.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated such sums as are
necessary to carry out this subsection.
``(B) Funding options.--
``(i) In general.--To carry out this
subsection, a Federal agency may use any
combination of--
``(I) appropriated funds made
available under subparagraph (A); and
``(II) private financing otherwise
authorized under Federal law, including
financing available through energy
savings performance contracts or
utility energy service contracts.
``(ii) Combined funding for same measure.--
A Federal agency may use any combination of
appropriated funds and private financing
described in clause (i) to carry out the same
measure under this subsection.
``(C) Implementation.--Each Federal agency may
implement the requirements under this subsection itself
or may contract out performance of some or all of the
requirements.
``(11) Rule of construction.--This subsection shall not be
construed to require or to obviate any contractor savings
guarantees.''.
SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.
(a) Standards.--Section 305(a)(3) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)) is amended by adding at the end
the following new subparagraph:
``(D) Not later than 1 year after the date of enactment of the
Energy Independence and Security Act of 2007, the Secretary shall
establish, by rule, revised Federal building energy efficiency
performance standards that require that:
``(i) For new Federal buildings and Federal buildings
undergoing major renovations, with respect to which the
Administrator of General Services is required to transmit a
prospectus to Congress under section 3307 of title 40, United
States Code, in the case of public buildings (as defined in
section 3301 of title 40, United States Code), or of at least
$2,500,000 in costs adjusted annually for inflation for other
buildings:
``(I) The buildings shall be designed so that the
fossil fuel-generated energy consumption of the
buildings is reduced, as compared with such energy
consumption by a similar building in fiscal year 2003
(as measured by Commercial Buildings Energy Consumption
Survey or Residential Energy Consumption Survey data
from the Energy Information Agency), by the percentage
specified in the following table:
``Fiscal Year Percentage Reduction
2010................................. 55
2015................................. 65
2020................................. 80
2025................................. 90
2030................................. 100.
``(II) Upon petition by an agency subject to this
subparagraph, the Secretary may adjust the applicable
numeric requirement under subclause (I) downward with
respect to a specific building, if the head of the
agency designing the building certifies in writing that
meeting such requirement would be technically
impracticable in light of the agency's specified
functional needs for that building and the Secretary
concurs with the agency's conclusion. This subclause
shall not apply to the General Services Administration.
``(III) Sustainable design principles shall be
applied to the siting, design, and construction of such
buildings. Not later than 90 days after the date of
enactment of the Energy Independence and Security Act
of 2007, the Secretary, after reviewing the findings of
the Federal Director under section 436(h) of that Act,
in consultation with the Administrator of General
Services, and in consultation with the Secretary of
Defense for considerations relating to those facilities
under the custody and control of the Department of
Defense, shall identify a certification system and
level for green buildings that the Secretary determines
to be the most likely to encourage a comprehensive and
environmentally-sound approach to certification of
green buildings. The identification of the
certification system and level shall be based on a
review of the Federal Director's findings under section
436(h) of the Energy Independence and Security Act of
2007 and the criteria specified in clause (iii), shall
identify the highest level the Secretary determines is
appropriate above the minimum level required for
certification under the system selected, and shall
achieve results at least comparable to the system used
by and highest level referenced by the General Services
Administration as of the date of enactment of the
Energy Independence and Security Act of 2007. Within 90
days of the completion of each study required by clause
(iv), the Secretary, in consultation with the
Administrator of General Services, and in consultation
with the Secretary of Defense for considerations
relating to those facilities under the custody and
control of the Department of Defense, shall review and
update the certification system and level, taking into
account the conclusions of such study.
``(ii) In establishing criteria for identifying major
renovations that are subject to the requirements of this
subparagraph, the Secretary shall take into account the scope,
degree, and types of renovations that are likely to provide
significant opportunities for substantial improvements in
energy efficiency.
``(iii) In identifying the green building certification
system and level, the Secretary shall take into consideration--
``(I) the ability and availability of assessors and
auditors to independently verify the criteria and
measurement of metrics at the scale necessary to
implement this subparagraph;
``(II) the ability of the applicable certification
organization to collect and reflect public comment;
``(III) the ability of the standard to be developed
and revised through a consensus-based process;
``(IV) an evaluation of the robustness of the
criteria for a high-performance green building, which
shall give credit for promoting--
``(aa) efficient and sustainable use of
water, energy, and other natural resources;
``(bb) use of renewable energy sources;
``(cc) improved indoor environmental
quality through enhanced indoor air quality,
thermal comfort, acoustics, day lighting,
pollutant source control, and use of low-
emission materials and building system
controls; and
``(dd) such other criteria as the Secretary
determines to be appropriate; and
``(V) national recognition within the building
industry.
``(iv) At least once every five years, and in accordance
with section 436 of the Energy Independence and Security Act of
2007, the Administrator of General Services shall conduct a
study to evaluate and compare available third-party green
building certification systems and levels, taking into account
the criteria listed in clause (iii).
``(v) The Secretary may by rule allow Federal agencies to
develop internal certification processes, using certified
professionals, in lieu of certification by the certification
entity identified under clause (i)(III). The Secretary shall
include in any such rule guidelines to ensure that the
certification process results in buildings meeting the
applicable certification system and level identified under
clause (i)(III). An agency employing an internal certification
process must continue to obtain external certification by the
certification entity identified under clause (i)(III) for at
least 5 percent of the total number of buildings certified
annually by the agency.
``(vi) With respect to privatized military housing, the
Secretary of Defense, after consultation with the Secretary
may, through rulemaking, develop alternative criteria to those
established by subclauses (I) and (III) of clause (i) that
achieve an equivalent result in terms of energy savings,
sustainable design, and green building performance.
``(vii) In addition to any use of water conservation
technologies otherwise required by this section, water
conservation technologies shall be applied to the extent that
the technologies are life-cycle cost-effective.''.
(b) Definitions.--Section 303(6) of the Energy Conservation and
Production Act (42 U.S.C. 6832(6)) is amended by striking ``which is
not legally subject to State or local building codes or similar
requirements.'' and inserting ``. Such term shall include buildings
built for the purpose of being leased by a Federal agency, and
privatized military housing.''.
(c) Revision of Federal Acquisition Regulation.--Not later than 2
years after the date of the enactment of this Act, the Federal
Acquisition Regulation shall be revised to require Federal officers and
employees to comply with this section and the amendments made by this
section in the acquisition, construction, or major renovation of any
facility. The members of the Federal Acquisition Regulatory Council
(established under section 25 of the Office of Federal Procurement
Policy Act (41 U.S.C. 421)) shall consult with the Federal Director and
the Commercial Director before promulgating regulations to carry out
this subsection.
(d) Guidance.--Not later than 90 days after the date of
promulgation of the revised regulations under subsection (c), the
Administrator for Federal Procurement Policy shall issue guidance to
all Federal procurement executives providing direction and instructions
to renegotiate the design of proposed facilities and major renovations
for existing facilities to incorporate improvements that are consistent
with this section.
SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY .
(a) Large Capital Energy Investments.--Section 543 of the National
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at
the end the following:
``(f) Large Capital Energy Investments.--
``(1) In general.--Each Federal agency shall ensure that
any large capital energy investment in an existing building
that is not a major renovation but involves replacement of
installed equipment (such as heating and cooling systems), or
involves renovation, rehabilitation, expansion, or remodeling
of existing space, employs the most energy efficient designs,
systems, equipment, and controls that are life-cycle cost
effective.
``(2) Process for review of investment decisions.--Not
later than 180 days after the date of enactment of this
subsection, each Federal agency shall--
``(A) develop a process for reviewing each decision
made on a large capital energy investment described in
paragraph (1) to ensure that the requirements of this
subsection are met; and
``(B) report to the Director of the Office of
Management and Budget on the process established.
``(3) Compliance report.--Not later than 1 year after the
date of enactment of this subsection, the Director of the
Office of Management and Budget shall evaluate and report to
Congress on the compliance of each agency with this
subsection.''.
(b) Metering.--Section 543(e)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(e)(1)) is amended by inserting
after the second sentence the following: ``Not later than October 1,
2016, each agency shall provide for equivalent metering of natural gas
and steam, in accordance with guidelines established by the Secretary
under paragraph (2).''.
SEC. 435. LEASING.
(a) In General.--Except as provided in subsection (b), effective
beginning on the date that is 3 years after the date of enactment of
this Act, no Federal agency shall enter into a contract to lease space
in a building that has not earned the Energy Star label in the most
recent year.
(b) Exception.--
(1) Application.--This subsection applies if--
(A) no space is available in a building described
in subsection (a) that meets the functional
requirements of an agency, including locational needs;
(B) the agency proposes to remain in a building
that the agency has occupied previously;
(C) the agency proposes to lease a building of
historical, architectural, or cultural significance (as
defined in section 3306(a)(4) of title 40, United
States Code) or space in such a building; or
(D) the lease is for not more than 10,000 gross
square feet of space.
(2) Buildings without energy star label.--If 1 of the
conditions described in paragraph (2) is met, the agency may
enter into a contract to lease space in a building that has not
earned the Energy Star label in the most recent year if the
lease contract includes provisions requiring that, prior to
occupancy or, in the case of a contract described in paragraph
(1)(B), not later than 1 year after signing the contract, the
space will be renovated for all energy efficiency and
conservation improvements that would be cost effective over the
life of the lease, including improvements in lighting, windows,
and heating, ventilation, and air conditioning systems.
(c) Revision of Federal Acquisition Regulation.--
(1) In general.--Not later than 3 years after the date of
the enactment of this Act, the Federal Acquisition Regulation
described in section 6(a) of the Office of Federal Procurement
Policy Act (41 U.S.C. 405(a)) shall be revised to require
Federal officers and employees to comply with this section in
leasing buildings.
(2) Consultation.--The members of the Federal Acquisition
Regulatory Council established under section 25 of the Office
of Federal Procurement Policy Act (41 U.S.C. 421)) shall
consult with the Federal Director and the Commercial Director
before promulgating regulations to carry out this subsection.
SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.
(a) Establishment of Office.--Not later than 60 days after the date
of enactment of this Act, the Administrator shall establish within the
General Services Administration an Office of Federal High-Performance
Green Buildings, and appoint an individual to serve as Federal Director
in, a position in the career-reserved Senior Executive service, to--
(1) establish and manage the Office of Federal High-
Performance Green Buildings; and
(2) carry out other duties as required under this subtitle.
(b) Compensation.--The compensation of the Federal Director shall
not exceed the maximum rate of basic pay for the Senior Executive
Service under section 5382 of title 5, United States Code, including
any applicable locality-based comparability payment that may be
authorized under section 5304(h)(2)(C) of that title.
(c) Duties.--The Federal Director shall--
(1) coordinate the activities of the Office of Federal
High-Performance Green Buildings with the activities of the
Office of Commercial High-Performance Green Buildings, and the
Secretary, in accordance with section 305(a)(3)(D) of the
Energy Conservation and Production Act (42 U.S.C.
6834(a)(3)(D));
(2) ensure full coordination of high-performance green
building information and activities within the General Services
Administration and all relevant agencies, including, at a
minimum--
(A) the Environmental Protection Agency;
(B) the Office of the Federal Environmental
Executive;
(C) the Office of Federal Procurement Policy;
(D) the Department of Energy;
(E) the Department of Health and Human Services;
(F) the Department of Defense;
(G) the Department of Transportation;
(H) the National Institute of Standards and
Technology; and
(I) the Office of Science and Technology Policy;
(3) establish a senior-level Federal Green Building
Advisory Committee under section 474, which shall provide
advice and recommendations in accordance with that section and
subsection (d);
(4) identify and every 5 years reassess improved or higher
rating standards recommended by the Advisory Committee;
(5) ensure full coordination, dissemination of information
regarding, and promotion of the results of research and
development information relating to Federal high-performance
green building initiatives;
(6) identify and develop Federal high-performance green
building standards for all types of Federal facilities,
consistent with the requirements of this subtitle and section
305(a)(3)(D) of the Energy Conservation and Production Act (42
U.S.C. 6834(a)(3)(D));
(7) establish green practices that can be used throughout
the life of a Federal facility;
(8) review and analyze current Federal budget practices and
life-cycle costing issues, and make recommendations to
Congress, in accordance with subsection (d); and
(9) identify opportunities to demonstrate innovative and
emerging green building technologies and concepts.
(d) Additional Duties.--The Federal Director, in consultation with
the Commercial Director and the Advisory Committee, and consistent with
the requirements of section 305(a)(3)(D) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(D)) shall--
(1) identify, review, and analyze current budget and
contracting practices that affect achievement of high-
performance green buildings, including the identification of
barriers to high-performance green building life-cycle costing
and budgetary issues;
(2) develop guidance and conduct training sessions with
budget specialists and contracting personnel from Federal
agencies and budget examiners to apply life-cycle cost criteria
to actual projects;
(3) identify tools to aid life-cycle cost decisionmaking;
and
(4) explore the feasibility of incorporating the benefits
of high-performance green buildings, such as security benefits,
into a cost-budget analysis to aid in life-cycle costing for
budget and decisionmaking processes.
(e) Incentives.--Within 90 days after the date of enactment of this
Act, the Federal Director shall identify incentives to encourage the
expedited use of high-performance green buildings and related
technology in the operations of the Federal Government, in accordance
with the requirements of section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), including
through--
(1) the provision of recognition awards; and
(2) the maximum feasible retention of financial savings in
the annual budgets of Federal agencies for use in reinvesting
in future high-performance green building initiatives.
(f) Report.--Not later than 2 years after the date of enactment of
this Act, and biennially thereafter, the Federal Director, in
consultation with the Secretary, shall submit to Congress a report
that--
(1) describes the status of compliance with this subtitle,
the requirements of section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), and
other Federal high-performance green building initiatives in
effect as of the date of the report, including--
(A) the extent to which the programs are being
carried out in accordance with this subtitle and the
requirements of section 305(a)(3)(D) of that Act; and
(B) the status of funding requests and
appropriations for those programs;
(2) identifies within the planning, budgeting, and
construction process all types of Federal facility procedures
that may affect the certification of new and existing Federal
facilities as high-performance green buildings under the
provisions of section 305(a)(3)(D) of that Act and the criteria
established in subsection (h);
(3) identifies inconsistencies, as reported to the Advisory
Committee, in Federal law with respect to product acquisition
guidelines and high-performance product guidelines;
(4) recommends language for uniform standards for use by
Federal agencies in environmentally responsible acquisition;
(5) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs with
respect to alternatives for--
(A) restructuring of budgets to require the use of
complete energy and environmental cost accounting;
(B) using operations expenditures in budget-related
decisions while simultaneously incorporating
productivity and health measures (as those measures can
be quantified by the Office of Federal High-Performance
Green Buildings, with the assistance of universities
and national laboratories);
(C) streamlining measures for permitting Federal
agencies to retain all identified savings accrued as a
result of the use of life-cycle costing for future
high-performance green building initiatives; and
(D) identifying short-term and long-term cost
savings that accrue from high-performance green
buildings, including those relating to health and
productivity;
(6) identifies green, self-sustaining technologies to
address the operational needs of Federal facilities in times of
national security emergencies, natural disasters, or other dire
emergencies;
(7) summarizes and highlights development, at the State and
local level, of high-performance green building initiatives,
including executive orders, policies, or laws adopted promoting
high-performance green building (including the status of
implementation of those initiatives); and
(8) includes, for the 2-year period covered by the report,
recommendations to address each of the matters, and a plan for
implementation of each recommendation, described in paragraphs
(1) through (7).
(g) Implementation.--The Office of Federal High-Performance Green
Buildings shall carry out each plan for implementation of
recommendations under subsection (f)(8).
(h) Identification of Certification System.--
(1) In general.--For the purpose of this section, not later
than 60 days after the date of enactment of this Act, the
Federal Director shall identify and shall provide to the
Secretary pursuant to section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), a
certification system that the Director determines to be the
most likely to encourage a comprehensive and environmentally-
sound approach to certification of green buildings.
(2) Basis.--The system identified under paragraph (1) shall
be based on--
(A) a study completed every 5 years and provided to
the Secretary pursuant to section 305(a)(3)(D) of that
Act, which shall be carried out by the Federal Director
to compare and evaluate standards;
(B) the ability and availability of assessors and
auditors to independently verify the criteria and
measurement of metrics at the scale necessary to
implement this subtitle;
(C) the ability of the applicable standard-setting
organization to collect and reflect public comment;
(D) the ability of the standard to be developed and
revised through a consensus-based process;
(E) an evaluation of the robustness of the criteria
for a high performance green building, which shall give
credit for promoting--
(i) efficient and sustainable use of water,
energy, and other natural resources;
(ii) use of renewable energy sources;
(iii) improved indoor environmental quality
through enhanced indoor air quality, thermal
comfort, acoustics, day lighting, pollutant
source control, and use of low-emission
materials and building system controls;
(iv) reduced impacts from transportation
through building location and site design that
promote access by public transportation; and
(v) such other criteria as the Federal
Director determines to be appropriate; and
(F) national recognition within the building
industry.
SEC. 437. FEDERAL GREEN BUILDING PERFORMANCE.
(a) In General.--Not later than October 31 of each of the 2 fiscal
years following the fiscal year in which this Act is enacted, and at
such times thereafter as the Comptroller General of the United States
determines to be appropriate, the Comptroller General of the United
States shall, with respect to the fiscal years that have passed since
the preceding report--
(1) conduct an audit of the implementation of this
subtitle, section 305(a)(3)(D) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(D)), and section 435; and
(2) submit to the Federal Director, the Advisory Committee,
the Administrator, and Congress a report describing the results
of the audit.
(b) Contents.--An audit under subsection (a) shall include a
review, with respect to the period covered by the report under
subsection (a)(2), of--
(1) budget, life-cycle costing, and contracting issues,
using best practices identified by the Comptroller General of
the United States and heads of other agencies in accordance
with section 436(d);
(2) the level of coordination among the Federal Director,
the Office of Management and Budget, the Department of Energy,
and relevant agencies;
(3) the performance of the Federal Director and other
agencies in carrying out the implementation plan;
(4) the design stage of high-performance green building
measures;
(5) high-performance building data that were collected and
reported to the Office; and
(6) such other matters as the Comptroller General of the
United States determines to be appropriate.
(c) Environmental Stewardship Scorecard.--The Federal Director
shall consult with the Advisory Committee to enhance, and assist in the
implementation of, the Office of Management and Budget government
efficiency reports and scorecards under section 528 and the
Environmental Stewardship Scorecard announced at the White House summit
on Federal sustainable buildings in January 2006, to measure the
implementation by each Federal agency of sustainable design and green
building initiatives.
SEC. 438. STORM WATER RUNOFF REQUIREMENTS FOR FEDERAL DEVELOPMENT
PROJECTS.
The sponsor of any development or redevelopment project involving a
Federal facility with a footprint that exceeds 5,000 square feet shall
use site planning, design, construction, and maintenance strategies for
the property to maintain or restore, to the maximum extent technically
feasible, the predevelopment hydrology of the property with regard to
the temperature, rate, volume, and duration of flow.
SEC. 439. COST-EFFECTIVE TECHNOLOGY ACCELERATION PROGRAM.
(a) Definition of Administrator.--In this section, the term
``Administrator'' means the Administrator of General Services.
(b) Establishment.--
(1) In general.--The Administrator shall establish a
program to accelerate the use of more cost-effective
technologies and practices at GSA facilities.
(2) Requirements.--The program established under this
subsection shall--
(A) ensure centralized responsibility for the
coordination of cost reduction-related recommendations,
practices, and activities of all relevant Federal
agencies;
(B) provide technical assistance and operational
guidance to applicable tenants to achieve the goal
identified in subsection (c)(2)(B)(ii);
(C) establish methods to track the success of
Federal departments and agencies with respect to that
goal; and
(D) be fully coordinated with and no less stringent
nor less energy-conserving or water-conserving than
required by other provisions of this Act and other
applicable law, including sections 321 through 324, 431
through 438, 461, 511 through 518, and 523 through 525
and amendments made by those sections.
(c) Accelerated Use of Technologies.--
(1) Review.--
(A) In general.--As part of the program under this
section, not later than 90 days after the date of
enactment of this Act, the Administrator shall conduct
a review of--
(i) current use of cost-effective lighting
technologies and geothermal heat pumps in GSA
facilities; and
(ii) the availability to managers of GSA
facilities of cost-effective lighting
technologies and geothermal heat pumps.
(B) Requirements.--The review under subparagraph
(A) shall--
(i) examine the use of cost-effective
lighting technologies, geothermal heat pumps,
and other cost-effective technologies and
practices by Federal agencies in GSA
facilities; and
(ii) as prepared in consultation with the
Administrator of the Environmental Protection
Agency, identify cost-effective lighting
technology and geothermal heat pump technology
standards that could be used for all types of
GSA facilities.
(2) Replacement.--
(A) In general.--As part of the program under this
section, not later than 180 days after the date of
enactment of this Act, the Administrator shall
establish, using available appropriations and programs
implementing sections 432 and 525 (and amendments made
by those sections), a cost-effective lighting
technology and geothermal heat pump technology
acceleration program to achieve maximum feasible
replacement of existing lighting, heating, cooling
technologies with cost-effective lighting technologies
and geothermal heat pump technologies in each GSA
facility. Such program shall fully comply with the
requirements of sections 321 through 324, 431 through
438, 461, 511 through 518, and 523 through 525 and
amendments made by those sections and any other
provisions of law, which shall be applicable to the
extent that they are more stringent or would achieve
greater energy savings than required by this section.
(B) Acceleration plan timetable.--
(i) In general.--To implement the program
established under subparagraph (A), not later
than 1 year after the date of enactment of this
Act, the Administrator shall establish a
timetable of actions to comply with the
requirements of this section and sections 431
through 435, whichever achieves greater energy
savings most expeditiously, including
milestones for specific activities needed to
replace existing lighting, heating, cooling
technologies with cost-effective lighting
technologies and geothermal heat pump
technologies, to the maximum extent feasible
(including at the maximum rate feasible), at
each GSA facility.
(ii) Goal.--The goal of the timetable under
clause (i) shall be to complete, using
available appropriations and programs
implementing sections 431 through 435 (and
amendments made by those sections), maximum
feasible replacement of existing lighting,
heating, and cooling technologies with cost-
effective lighting technologies and geothermal
heat pump technologies consistent with the
requirements of this section and sections 431
through 435, whichever achieves greater energy
savings most expeditiously. Notwithstanding any
provision of this section, such program shall
fully comply with the requirements of the Act
including sections 321 through 324, 431 through
438, 461, 511 through 518, and 523 through 525
and amendments made by those sections and other
provisions of law, which shall be applicable to
the extent that they are more stringent or
would achieve greater energy or water savings
than required by this section.
(d) GSA Facility Technologies and Practices.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter, the
Administrator shall--
(A) ensure that a manager responsible for
implementing section 432 and for accelerating the use
of cost-effective technologies and practices is
designated for each GSA facility; and
(B) submit to Congress a plan to comply with
section 432, this section, and other applicable
provisions of this Act and applicable law with respect
to energy and water conservation at GSA facilities.
(2) Measures.--The plan shall implement measures required
by such other provisions of law in accordance with those
provisions, and shall implement the measures required by this
section to the maximum extent feasible (including at the
maximum rate feasible) using available appropriations and
programs implementing sections 431 through 435 and 525 (and
amendments made by those sections), by not later than the date
that is 5 years after the date of enactment of this Act.
(3) Contents of plan.--The plan shall--
(A) with respect to cost-effective technologies and
practices--
(i) identify the specific activities needed
to comply with sections 431 through 435;
(ii) identify the specific activities
needed to achieve at least a 20-percent
reduction in operational costs through the
application of cost-effective technologies and
practices from 2003 levels at GSA facilities by
not later than 5 years after the date of
enactment of this Act;
(iii) describe activities required and
carried out to estimate the funds necessary to
achieve the reduction described in clauses (i)
and (ii);
(B) include an estimate of the funds necessary to
carry out this section;
(C) describe the status of the implementation of
cost-effective technologies and practices at GSA
facilities, including--
(i) the extent to which programs, including
the program established under subsection (b),
are being carried out in accordance with this
subtitle; and
(ii) the status of funding requests and
appropriations for those programs;
(D) identify within the planning, budgeting, and
construction processes, all types of GSA facility-
related procedures that inhibit new and existing GSA
facilities from implementing cost-effective
technologies;
(E) recommend language for uniform standards for
use by Federal agencies in implementing cost-effective
technologies and practices;
(F) in coordination with the Office of Management
and Budget, review the budget process for capital
programs with respect to alternatives for--
(i) implementing measures that will assure
that Federal agencies retain all identified
savings accrued as a result of the use of cost-
effective technologies, consistent with section
543(a)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(a)(1), and other
applicable law; and
(ii) identifying short- and long-term cost
savings that accrue from the use of cost-
effective technologies and practices;
(G) with respect to cost-effective technologies and
practices, achieve substantial operational cost savings
through the application of the technologies; and
(H) include recommendations to address each of the
matters, and a plan for implementation of each
recommendation, described in subparagraphs (A) through
(G).
(4) Administration.--Notwithstanding any provision of this
section, the program required under this section shall fully
comply with the requirements of sections 321 through 324, 431
through 438, 461, 511 through 518, and 523 through 525 and
amendments made by those sections, which shall be applicable to
the extent that they are more stringent or would achieve
greater energy or water savings than required by this section.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section, to
remain available until expended.
SEC. 440. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out sections 434
through 439 and 482 $4,000,000 for each of fiscal years 2008 through
2012, to remain available until expended.
SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.
Section 544(a)(1) of the National Energy Conservation Policy Act
(42 U.S.C. 8254(a)(1)) is amended by striking ``25'' and inserting
``40''.
Subtitle D--Industrial Energy Efficiency
SEC. 451. INDUSTRIAL ENERGY EFFICIENCY.
(a) In General.--Title III of the Energy Policy and Conservation
Act (42 U.S.C. 6291 et seq.) is amended by inserting after part D the
following:
``PART E--INDUSTRIAL ENERGY EFFICIENCY
``SEC. 371. DEFINITIONS.
``In this part:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Combined heat and power.--The term `combined heat and
power system' means a facility that--
``(A) simultaneously and efficiently produces
useful thermal energy and electricity; and
``(B) recovers not less than 60 percent of the
energy value in the fuel (on a higher-heating-value
basis) in the form of useful thermal energy and
electricity.
``(3) Net excess power.--The term `net excess power' means,
for any facility, recoverable waste energy recovered in the
form of electricity in quantities exceeding the total
consumption of electricity at the specific time of generation
on the site at which the facility is located.
``(4) Project.--The term `project' means a recoverable
waste energy project or a combined heat and power system
project.
``(5) Recoverable waste energy.--The term `recoverable
waste energy' means waste energy from which electricity or
useful thermal energy may be recovered through modification of
an existing facility or addition of a new facility.
``(6) Registry.--The term `Registry' means the Registry of
Recoverable Waste Energy Sources established under section
372(d).
``(7) Useful thermal energy.--The term `useful thermal
energy' means energy--
``(A) in the form of direct heat, steam, hot water,
or other thermal form that is used in production and
beneficial measures for heating, cooling, humidity
control, process use, or other valid thermal end-use
energy requirements; and
``(B) for which fuel or electricity would otherwise
be consumed.
``(8) Waste energy.--The term `waste energy' means--
``(A) exhaust heat or flared gas from any
industrial process;
``(B) waste gas or industrial tail gas that would
otherwise be flared, incinerated, or vented;
``(C) a pressure drop in any gas, excluding any
pressure drop to a condenser that subsequently vents
the resulting heat; and
``(D) such other forms of waste energy as the
Administrator may determine.
``(9) Other terms.--The terms `electric utility',
`nonregulated electric utility', `State regulated electric
utility', and other terms have the meanings given those terms
in title I of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2611 et seq.).
``SEC. 372. SURVEY AND REGISTRY.
``(a) Recoverable Waste Energy Inventory Program.--
``(1) In general.--The Administrator, in cooperation with
the Secretary and State energy offices, shall establish a
recoverable waste energy inventory program.
``(2) Survey.--The program shall include--
``(A) an ongoing survey of all major industrial and
large commercial combustion sources in the United
States (as defined by the Administrator) and the sites
at which the sources are located; and
``(B) a review of each source for the quantity and
quality of waste energy produced at the source.
``(b) Criteria.--
``(1) In general.--Not later than 270 days after the date
of enactment of the Energy Independence and Security Act of
2007, the Administrator shall publish a rule for establishing
criteria for including sites in the Registry.
``(2) Inclusions.--The criteria shall include--
``(A) a requirement that, to be included in the
Registry, a project at the site shall be determined to
be economically feasible by virtue of offering a
payback of invested costs not later than 5 years after
the date of first full project operation (including
incentives offered under this part);
``(B) standards to ensure that projects proposed
for inclusion in the Registry are not developed or used
for the primary purpose of making sales of excess
electric power under the regulatory provisions of this
part; and
``(C) procedures for contesting the listing of any
source or site on the Registry by any State, utility,
or other interested person.
``(c) Technical Support.--On the request of the owner or operator
of a source or site included in the Registry, the Secretary shall--
``(1) provide to owners or operators of combustion sources
technical support; and
``(2) offer partial funding (in an amount equal to not more
than \1/2\ of total costs) for feasibility studies to confirm
whether or not investment in recovery of waste energy or
combined heat and power at a source would offer a payback
period of 5 years or less.
``(d) Registry.--
``(1) Establishment.--
``(A) In general.--Not later than 1 year after the
date of enactment of the Energy Independence and
Security Act of 2007, the Administrator shall establish
a Registry of Recoverable Waste Energy Sources, and
sites on which the sources are located, that meet the
criteria established under subsection (b).
``(B) Updates; availability.--The Administrator
shall--
``(i) update the Registry on a regular
basis; and
``(ii) make the Registry available to the
public on the website of the Environmental
Protection Agency.
``(C) Contesting listing.--Any State, electric
utility, or other interested person may contest the
listing of any source or site by submitting a petition
to the Administrator.
``(2) Contents.--
``(A) In general.--The Administrator shall register
and include on the Registry all sites meeting the
criteria established under subsection (b).
``(B) Quantity of recoverable waste energy.--The
Administrator shall--
``(i) calculate the total quantities of
potentially recoverable waste energy from
sources at the sites, nationally and by State;
and
``(ii) make public--
``(I) the total quantities
described in clause (i); and
``(II) information on the criteria
pollutant and greenhouse gas emissions
savings that might be achieved with
recovery of the waste energy from all
sources and sites listed on the
Registry.
``(3) Availability of information.--
``(A) In general.--The Administrator shall notify
owners or operators of recoverable waste energy sources
and sites listed on the Registry prior to publishing
the listing.
``(B) Detailed quantitative information.--
``(i) In general.--Except as provided in
clause (ii), the owner or operator of a source
at a site may elect to have detailed
quantitative information concerning the site
not made public by notifying the Administrator
of the election.
``(ii) Limited availability.--The
information shall be made available to--
``(I) the applicable State energy
office; and
``(II) any utility requested to
support recovery of waste energy from
the source pursuant to the incentives
provided under section 374.
``(iii) State totals.--Information
concerning the site shall be included in the
total quantity of recoverable waste energy for
a State unless there are fewer than 3 sites in
the State.
``(4) Removal of projects from registry.--
``(A) In general.--Subject to subparagraph (B), as
a project achieves successful recovery of waste energy,
the Administrator shall--
``(i) remove the related sites or sources
from the Registry; and
``(ii) designate the removed projects as
eligible for incentives under section 374.
``(B) Limitation.--No project shall be removed from
the Registry without the consent of the owner or
operator of the project if--
``(i) the owner or operator has submitted a
petition under section 374; and
``(ii) the petition has not been acted on
or denied.
``(5) Ineligibility of certain sources.--The Administrator
shall not list any source constructed after the date of the
enactment of the Energy Independence and Security Act of 2007
on the Registry if the Administrator determines that the
source--
``(A) was developed for the primary purpose of
making sales of excess electric power under the
regulatory provisions of this part; or
``(B) does not capture at least 60 percent of the
total energy value of the fuels used (on a higher-
heating-value basis) in the form of useful thermal
energy, electricity, mechanical energy, chemical
output, or any combination thereof.
``(e) Self-Certification.--
``(1) In general.--Subject to any procedures that are
established by the Administrator, an owner, operator, or third-
party developer of a recoverable waste energy project that
qualifies under standards established by the Administrator may
self-certify the sites or sources of the owner, operator, or
developer to the Administrator for inclusion in the Registry.
``(2) Review and approval.--To prevent a fraudulent
listing, a site or source shall be included on the Registry
only if the Administrator reviews and approves the self-
certification.
``(f) New Facilities.--As a new energy-consuming industrial
facility is developed after the date of enactment of the Energy
Independence and Security Act of 2007, to the extent the facility may
constitute a site with recoverable waste energy that may qualify for
inclusion on the Registry, the Administrator may elect to include the
facility on the Registry, at the request of the owner, operator, or
developer of the facility, on a conditional basis with the site to be
removed from the Registry if the development ceases or the site fails
to qualify for listing under this part.
``(g) Optimum Means of Recovery.--For each site listed in the
Registry, at the request of the owner or operator of the site, the
Administrator shall offer, in cooperation with Clean Energy Application
Centers operated by the Secretary of Energy, suggestions for optimum
means of recovery of value from waste energy stream in the form of
electricity, useful thermal energy, or other energy-related products.
``(h) Revision.--Each annual report of a State under section 548(a)
of the National Energy Conservation Policy Act (42 U.S.C. 8258(a))
shall include the results of the survey for the State under this
section.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to--
``(1) the Administrator to create and maintain the Registry
and services authorized by this section, $1,000,000 for each of
fiscal years 2008 through 2012; and
``(2) the Secretary--
``(A) to assist site or source owners and operators
in determining the feasibility of projects authorized
by this section, $2,000,000 for each of fiscal years
2008 through 2012; and
``(B) to provide funding for State energy office
functions under this section, $5,000,000.
``SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM.
``(a) Establishment.--The Secretary shall establish in the
Department of Energy a waste energy recovery incentive grant program to
provide incentive grants to--
``(1) owners and operators of projects that successfully
produce electricity or incremental useful thermal energy from
waste energy recovery;
``(2) utilities purchasing or distributing the electricity;
and
``(3) States that have achieved 80 percent or more of
recoverable waste heat recovery opportunities.
``(b) Grants to Projects and Utilities.--
``(1) In general.--The Secretary shall make grants under
this section--
``(A) to the owners or operators of waste energy
recovery projects; and
``(B) in the case of excess power purchased or
transmitted by a electric utility, to the utility.
``(2) Proof.--Grants may only be made under this section on
receipt of proof of waste energy recovery or excess electricity
generation, or both, from the project in a form prescribed by
the Secretary.
``(3) Excess electric energy.--
``(A) In general.--In the case of waste energy
recovery, a grant under this section shall be made at
the rate of $10 per megawatt hour of documented
electricity produced from recoverable waste energy (or
by prevention of waste energy in the case of a new
facility) by the project during the first 3 calendar
years of production, beginning on or after the date of
enactment of the Energy Independence and Security Act
of 2007.
``(B) Utilities.--If the project produces net
excess power and an electric utility purchases or
transmits the excess power, 50 percent of so much of
the grant as is attributable to the net excess power
shall be paid to the electric utility purchasing or
transporting the net excess power.
``(4) Useful thermal energy.--In the case of waste energy
recovery that produces useful thermal energy that is used for a
purpose different from that for which the project is
principally designed, a grant under this section shall be made
to the owner or operator of the waste energy recovery project
at the rate of $10 for each 3,412,000 Btus of the excess
thermal energy used for the different purpose.
``(c) Grants to States.--In the case of any State that has achieved
80 percent or more of waste heat recovery opportunities identified by
the Secretary under this part, the Administrator shall make a 1-time
grant to the State in an amount of not more than $1,000 per megawatt of
waste-heat capacity recovered (or a thermal equivalent) to support
State-level programs to identify and achieve additional energy
efficiency.
``(d) Eligibility.--The Secretary shall--
``(1) establish rules and guidelines to establish
eligibility for grants under subsection (b);
``(2) publicize the availability of the grant program known
to owners or operators of recoverable waste energy sources and
sites listed on the Registry; and
``(3) award grants under the program on the basis of the
merits of each project in recovering or preventing waste energy
throughout the United States on an impartial, objective, and
not unduly discriminatory basis.
``(e) Limitation.--The Secretary shall not award grants to any
person for a combined heat and power project or a waste heat recovery
project that qualifies for specific Federal tax incentives for combined
heat and power or for waste heat recovery.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary--
``(1) to make grants to projects and utilities under
subsection (b)--
``(A) $100,000,000 for fiscal year 2008 and
$200,000,000 for each of fiscal years 2009 through
2012; and
``(B) such additional amounts for fiscal year 2008
and each fiscal year thereafter as may be necessary for
administration of the waste energy recovery incentive
grant program; and
``(2) to make grants to States under subsection (b),
$10,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.
``SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE, AND PREVENTION OF
INDUSTRIAL WASTE ENERGY.
``(a) Consideration of Standard.--
``(1) In general.--Not later than 180 days after the
receipt by a State regulatory authority (with respect to each
electric utility for which the authority has ratemaking
authority), or nonregulated electric utility, of a request from
a project sponsor or owner or operator, the State regulatory
authority or nonregulated electric utility shall--
``(A) provide public notice and conduct a hearing
respecting the standard established by subsection (b);
and
``(B) on the basis of the hearing, consider and
make a determination whether or not it is appropriate
to implement the standard to carry out the purposes of
this part.
``(2) Relationship to state law.--For purposes of any
determination under paragraph (1) and any review of the
determination in any court, the purposes of this section
supplement otherwise applicable State law.
``(3) Nonadoption of standard.--Nothing in this part
prohibits any State regulatory authority or nonregulated
electric utility from making any determination that it is not
appropriate to adopt any standard described in paragraph (1),
pursuant to authority under otherwise applicable State law.
``(b) Standard for Sales of Excess Power.--For purposes of this
section, the standard referred to in subsection (a) shall provide that
an owner or operator of a waste energy recovery project identified on
the Registry that generates net excess power shall be eligible to
benefit from at least 1 of the options described in subsection (c) for
disposal of the net excess power in accordance with the rate conditions
and limitations described in subsection (d).
``(c) Options.--The options referred to in subsection (b) are as
follows:
``(1) Sale of net excess power to utility.--The electric
utility shall purchase the net excess power from the owner or
operator of the eligible waste energy recovery project during
the operation of the project under a contract entered into for
that purpose.
``(2) Transport by utility for direct sale to third
party.--The electric utility shall transmit the net excess
power on behalf of the project owner or operator to up to 3
separate locations on the system of the utility for direct sale
by the owner or operator to third parties at those locations.
``(3) Transport over private transmission lines.--The State
and the electric utility shall permit, and shall waive or
modify such laws as would otherwise prohibit, the construction
and operation of private electric wires constructed, owned, and
operated by the project owner or operator, to transport the
power to up to 3 purchasers within a 3-mile radius of the
project, allowing the wires to use or cross public rights-of-
way, without subjecting the project to regulation as a public
utility, and according the wires the same treatment for safety,
zoning, land use, and other legal privileges as apply or would
apply to the wires of the utility, except that--
``(A) there shall be no grant of any power of
eminent domain to take or cross private property for
the wires; and
``(B) the wires shall be physically segregated and
not interconnected with any portion of the system of
the utility, except on the customer side of the revenue
meter of the utility and in a manner that precludes any
possible export of the electricity onto the utility
system, or disruption of the system.
``(4) Agreed on alternatives.--The utility and the owner or
operator of the project may reach agreement on any alternate
arrangement and payments or rates associated with the
arrangement that is mutually satisfactory and in accord with
State law.
``(d) Rate Conditions and Criteria.--
``(1) Definitions.--In this subsection:
``(A) Per unit distribution costs.--The term `per
unit distribution costs' means (in kilowatt hours) the
quotient obtained by dividing--
``(i) the depreciated book-value
distribution system costs of a utility; by
``(ii) the volume of utility electricity
sales or transmission during the previous year
at the distribution level.
``(B) Per unit distribution margin.--The term `per
unit distribution margin' means--
``(i) in the case of a State-regulated
electric utility, a per-unit gross pretax
profit equal to the product obtained by
multiplying--
``(I) the State-approved percentage
rate of return for the utility for
distribution system assets; by
``(II) the per unit distribution
costs; and
``(ii) in the case of a nonregulated
utility, a per unit contribution to net
revenues determined multiplying--
``(I) the percentage (but not less
than 10 percent) obtained by dividing--
``(aa) the amount of any
net revenue payment or
contribution to the owners or
subscribers of the nonregulated
utility during the prior year;
by
``(bb) the gross revenues
of the utility during the prior
year to obtain a percentage; by
``(II) the per unit distribution
costs.
``(C) Per unit transmission costs.--The term `per
unit transmission costs' means the total cost of those
transmission services purchased or provided by a
utility on a per-kilowatt-hour basis as included in the
retail rate of the utility.
``(2) Options.--The options described in paragraphs (1) and
(2) in subsection (c) shall be offered under purchase and
transport rate conditions that reflect the rate components
defined under paragraph (1) as applicable under the
circumstances described in paragraph (3).
``(3) Applicable rates.--
``(A) Rates applicable to sale of net excess
power.--
``(i) In general.--Sales made by a project
owner or operator of a facility under the
option described in subsection (c)(1) shall be
paid for on a per kilowatt hour basis that
shall equal the full undiscounted retail rate
paid to the utility for power purchased by the
facility minus per unit distribution costs,
that applies to the type of utility purchasing
the power.
``(ii) Voltages exceeding 25 kilovolts.--If
the net excess power is made available for
purchase at voltages that must be transformed
to or from voltages exceeding 25 kilovolts to
be available for resale by the utility, the
purchase price shall further be reduced by per
unit transmission costs.
``(B) Rates applicable to transport by utility for
direct sale to third parties.--
``(i) In general.--Transportation by
utilities of power on behalf of the owner or
operator of a project under the option
described in subsection (c)(2) shall incur a
transportation rate that shall equal the per
unit distribution costs and per unit
distribution margin, that applies to the type
of utility transporting the power.
``(ii) Voltages exceeding 25 kilovolts.--If
the net excess power is made available for
transportation at voltages that must be
transformed to or from voltages exceeding 25
kilovolts to be transported to the designated
third-party purchasers, the transport rate
shall further be increased by per unit
transmission costs.
``(iii) States with competitive retail
markets for electricity.--In a State with a
competitive retail market for electricity, the
applicable transportation rate for similar
transportation shall be applied in lieu of any
rate calculated under this paragraph.
``(4) Limitations.--
``(A) In general.--Any rate established for sale or
transportation under this section shall--
``(i) be modified over time with changes in
the underlying costs or rates of the electric
utility; and
``(ii) reflect the same time-sensitivity
and billing periods as are established in the
retail sales or transportation rates offered by
the utility.
``(B) Limitation.--No utility shall be required to
purchase or transport a quantity of net excess power
under this section that exceeds the available capacity
of the wires, meter, or other equipment of the electric
utility serving the site unless the owner or operator
of the project agrees to pay necessary and reasonable
upgrade costs.
``(e) Procedural Requirements for Consideration and
Determination.--
``(1) Public notice and hearing.--
``(A) In general.--The consideration referred to in
subsection (a) shall be made after public notice and
hearing.
``(B) Administration.--The determination referred
to in subsection (a) shall be--
``(i) in writing;
``(ii) based on findings included in the
determination and on the evidence presented at
the hearing; and
``(iii) available to the public.
``(2) Intervention by administrator.--The Administrator may
intervene as a matter of right in a proceeding conducted under
this section--
``(A) to calculate--
``(i) the energy and emissions likely to be
saved by electing to adopt 1 or more of the
options; and
``(ii) the costs and benefits to ratepayers
and the utility; and
``(B) to advocate for the waste-energy recovery
opportunity.
``(3) Procedures.--
``(A) In general.--Except as otherwise provided in
paragraphs (1) and (2), the procedures for the
consideration and determination referred to in
subsection (a) shall be the procedures established by
the State regulatory authority or the nonregulated
electric utility.
``(B) Multiple projects.--If there is more than 1
project seeking consideration simultaneously in
connection with the same utility, the proceeding may
encompass all such projects, if full attention is paid
to individual circumstances and merits and an
individual judgment is reached with respect to each
project.
``(f) Implementation.--
``(1) In general.--The State regulatory authority (with
respect to each electric utility for which the authority has
ratemaking authority) or nonregulated electric utility may, to
the extent consistent with otherwise applicable State law--
``(A) implement the standard determined under this
section; or
``(B) decline to implement any such standard.
``(2) Nonimplementation of standard.--
``(A) In general.--If a State regulatory authority
(with respect to each electric utility for which the
authority has ratemaking authority) or nonregulated
electric utility declines to implement any standard
established by this section, the authority or
nonregulated electric utility shall state in writing
the reasons for declining to implement the standard.
``(B) Availability to public.--The statement of
reasons shall be available to the public.
``(C) Annual report.--The Administrator shall
include in an annual report submitted to Congress a
description of the lost opportunities for waste-heat
recovery from the project described in subparagraph
(A), specifically identifying the utility and stating
the quantity of lost energy and emissions savings
calculated.
``(D) New petition.--If a State regulatory
authority (with respect to each electric utility for
which the authority has ratemaking authority) or
nonregulated electric utility declines to implement the
standard established by this section, the project
sponsor may submit a new petition under this section
with respect to the project at any time after the date
that is 2 years after the date on which the State
regulatory authority or nonregulated utility declined
to implement the standard.
``SEC. 375. CLEAN ENERGY APPLICATION CENTERS.
``(a) Renaming.--
``(1) In general.--The Combined Heat and Power Application
Centers of the Department of Energy are redesignated as Clean
Energy Application Centers.
``(2) References.--Any reference in any law, rule,
regulation, or publication to a Combined Heat and Power
Application Center shall be treated as a reference to a Clean
Energy Application Center.
``(b) Relocation.--
``(1) In general.--In order to better coordinate efforts
with the separate Industrial Assessment Centers and to ensure
that the energy efficiency and, when applicable, the renewable
nature of deploying mature clean energy technology is fully
accounted for, the Secretary shall relocate the administration
of the Clean Energy Application Centers to the Office of Energy
Efficiency and Renewable Energy within the Department of
Energy.
``(2) Office of electricity delivery and energy
reliability.--The Office of Electricity Delivery and Energy
Reliability shall--
``(A) continue to perform work on the role of
technology described in paragraph (1) in support of the
grid and the reliability and security of the
technology; and
``(B) shall assist the Clean Energy Application
Centers in the work of the Centers with regard to the
grid and with electric utilities.
``(c) Grants.--
``(1) In general.--The Secretary shall make grants to
universities, research centers, and other appropriate
institutions to ensure the continued operations and
effectiveness of 8 Regional Clean Energy Application Centers in
each of the following regions (as designated for such purposes
as of the date of the enactment of the Energy Independence and
Security Act of 2007):
``(A) Gulf Coast.
``(B) Intermountain.
``(C) Mid-Atlantic.
``(D) Midwest.
``(E) Northeast.
``(F) Northwest.
``(G) Pacific.
``(H) Southeast.
``(2) Establishment of goals and compliance.--In making
grants under this subsection, the Secretary shall ensure that
sufficient goals are established and met by each Center
throughout the program duration concerning outreach and
technology deployment.
``(d) Activities.--
``(1) In general.--Each Clean Energy Application Center
shall--
``(A) operate a program to encourage deployment of
clean energy technologies through education and
outreach to building and industrial professionals; and
other individuals and organizations with an interest in
efficient energy use; and
``(B) provide project specific support to building
and industrial professionals through assessments and
advisory activities.
``(2) Types of activities.--Funds made available under this
section may be used--
``(A) to develop and distribute informational
materials on clean energy technologies, including
continuation of the 8 websites in existence on the date
of enactment of the Energy Independence and Security
Act of 2007;
``(B) to develop and conduct target market
workshops, seminars, internet programs, and other
activities to educate end users, regulators, and
stakeholders in a manner that leads to the deployment
of clean energy technologies;
``(C) to provide or coordinate onsite assessments
for sites and enterprises that may consider deployment
of clean energy technology;
``(D) to perform market research to identify high
profile candidates for clean energy deployment;
``(E) to provide consulting support to sites
considering deployment of clean energy technologies;
``(F) to assist organizations developing clean
energy technologies to overcome barriers to deployment;
and
``(G) to assist companies and organizations with
performance evaluations of any clean energy technology
implemented.
``(e) Duration.--
``(1) In general.--A grant awarded under this section shall
be for a period of 5 years
``(2) Annual evaluations.--Each grant shall be evaluated
annually for the continuation of the grant based on the
activities and results of the grant.
``(f) Authorization.--There is authorized to be appropriated to
carry out this section $10,000,000 for each of fiscal years 2008
through 2012.''.
(b) Table of Contents.--The table of contents of the Energy Policy
and Conservation Act (42 U.S.C. prec. 6201) is amended by inserting
after the items relating to part D of title III the following:
``Part E--Industrial Energy Efficiency
``Sec. 371. Definitions.
``Sec. 372. Survey and Registry.
``Sec. 373.Waste energy recovery incentive grant program.
``Sec. 374. Additional incentives for recovery, utilization and
prevention of industrial waste energy.
``Sec. 375. Clean Energy Application Centers.''.
SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) an energy-intensive industry;
(B) a national trade association representing an
energy-intensive industry; or
(C) a person acting on behalf of 1 or more energy-
intensive industries or sectors, as determined by the
Secretary.
(2) Energy-intensive industry.--The term ``energy-intensive
industry'' means an industry that uses significant quantities
of energy as part of its primary economic activities,
including--
(A) information technology, including data centers
containing electrical equipment used in processing,
storing, and transmitting digital information;
(B) consumer product manufacturing;
(C) food processing;
(D) materials manufacturers, including--
(i) aluminum;
(ii) chemicals;
(iii) forest and paper products;
(iv) metal casting;
(v) glass;
(vi) petroleum refining;
(vii) mining; and
(viii) steel;
(E) other energy-intensive industries, as
determined by the Secretary.
(3) Feedstock.--The term ``feedstock'' means the raw
material supplied for use in manufacturing, chemical, and
biological processes.
(4) Partnership.--The term ``partnership'' means an energy
efficiency partnership established under subsection (c)(1)(A).
(5) Program.--The term ``program'' means the energy-
intensive industries program established under subsection (b).
(b) Establishment of Program.--The Secretary shall establish a
program under which the Secretary, in cooperation with energy-intensive
industries and national industry trade associations representing the
energy-intensive industries, shall support, research, develop, and
promote the use of new materials processes, technologies, and
techniques to optimize energy efficiency and the economic
competitiveness of the United States' industrial and commercial
sectors.
(c) Partnerships.--
(1) In general.--As part of the program, the Secretary
shall establish energy efficiency partnerships between the
Secretary and eligible entities to conduct research on,
develop, and demonstrate new processes, technologies, and
operating practices and techniques to significantly improve the
energy efficiency of equipment and processes used by energy-
intensive industries, including the conduct of activities to--
(A) increase the energy efficiency of industrial
processes and facilities;
(B) research, develop, and demonstrate advanced
technologies capable of energy intensity reductions and
increased environmental performance; and
(C) promote the use of the processes, technologies,
and techniques described in subparagraphs (A) and (B).
(2) Eligible activities.--Partnership activities eligible
for funding under this subsection include--
(A) feedstock and recycling research, development,
and demonstration activities to identify and promote--
(i) opportunities for meeting industry
feedstock requirements with more energy
efficient and flexible sources of feedstock or
energy supply;
(ii) strategies to develop and deploy
technologies that improve the quality and
quantity of feedstocks recovered from process
and waste streams; and
(iii) other methods using recycling, reuse,
and improved industrial materials;
(B) research to develop and demonstrate
technologies and processes that utilize alternative
energy sources to supply heat, power, and new
feedstocks for energy-intensive industries;
(C) research to achieve energy efficiency in steam,
power, control system, and process heat technologies,
and in other manufacturing processes; and
(D) industrial and commercial energy efficiency and
sustainability assessments to--
(i) assist individual industrial and
commercial sectors in developing tools,
techniques, and methodologies to assess--
(I) the unique processes and
facilities of the sectors;
(II) the energy utilization
requirements of the sectors; and
(III) the application of new, more
energy efficient technologies; and
(ii) conduct energy savings assessments;
(E) the incorporation of technologies and
innovations that would significantly improve the energy
efficiency and utilization of energy-intensive
commercial applications; and
(F) any other activities that the Secretary
determines to be appropriate.
(3) Proposals.--
(A) In general.--To be eligible for funding under
this subsection, a partnership shall submit to the
Secretary a proposal that describes the proposed
research, development, or demonstration activity to be
conducted by the partnership.
(B) Review.--After reviewing the scientific,
technical, and commercial merit of a proposals
submitted under subparagraph (A), the Secretary shall
approve or disapprove the proposal.
(C) Competitive awards.--The provision of funding
under this subsection shall be on a competitive basis.
(4) Cost-sharing requirement.--In carrying out this
section, the Secretary shall require cost sharing in accordance
with section 988 of the Energy Policy Act of 2005 (42 U.S.C.
16352).
(d) Grants.--The Secretary may award competitive grants for
innovative technology research, development and demonstrations to
universities, individual inventors, and small companies, based on
energy savings potential, commercial viability, and technical merit.
(e) Institution of Higher Education-Based Industrial Research and
Assessment Centers.--The Secretary shall provide funding to institution
of higher education-based industrial research and assessment centers,
whose purpose shall be--
(1) to identify opportunities for optimizing energy
efficiency and environmental performance;
(2) to promote applications of emerging concepts and
technologies in small and medium-sized manufacturers;
(3) to promote research and development for the use of
alternative energy sources to supply heat, power, and new
feedstocks for energy-intensive industries;
(4) to coordinate with appropriate Federal and State
research offices, and provide a clearinghouse for industrial
process and energy efficiency technical assistance resources;
and
(5) to coordinate with State-accredited technical training
centers and community colleges, while ensuring appropriate
services to all regions of the United States.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary to carry out this section--
(A) $184,000,000 for fiscal year 2008;
(B) $190,000,000 for fiscal year 2009;
(C) $196,000,000 for fiscal year 2010;
(D) $202,000,000 for fiscal year 2011;
(E) $208,000,000 for fiscal year 2012; and
(F) such sums as are necessary for fiscal year 2013
and each fiscal year thereafter.
(2) Partnership activities.--Of the amounts made available
under paragraph (1), not less than 50 percent shall be used to
pay the Federal share of partnership activities under
subsection (c).
(3) Coordination and nonduplication.--The Secretary shall
coordinate efforts under this section with other programs of
the Department and other Federal agencies to avoid duplication
of effort.
SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.
(a) Definitions.--In this section:
(1) Data center.--The term ``data center'' means any
facility that primarily contains electronic equipment used to
process, store, and transmit digital information, which may
be--
(A) a free-standing structure; or
(B) a facility within a larger structure, that uses
environmental control equipment to maintain the proper
conditions for the operation of electronic equipment.
(2) Data center operator.--The term ``data center
operator'' means any person or government entity that builds or
operates a data center or purchases data center services,
equipment, and facilities.
(b) Voluntary National Information Program.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary and the Administrator of
the Environmental Protection Agency shall, after consulting
with information technology industry and other interested
parties, initiate a voluntary national information program for
those types of data centers and data center equipment and
facilities that are widely used and for which there is a
potential for significant data center energy savings as a
result of the program.
(2) Requirements.--The program described in paragraph (1)
shall--
(A) address data center efficiency holistically,
reflecting the total energy consumption of data centers
as whole systems, including both equipment and
facilities;
(B) consider prior work and studies undertaken in
this area, including by the Environmental Protection
Agency and the Department of Energy;
(C) consistent with the objectives described in
paragraph (1), determine the type of data center and
data center equipment and facilities to be covered
under the program;
(D) produce specifications, measurements, best
practices, and benchmarks that will enable data center
operators to make more informed decisions about the
energy efficiency and costs of data centers, and that
take into account--
(i) the performance and use of servers,
data storage devices, and other information
technology equipment;
(ii) the efficiency of heating,
ventilation, and air conditioning, cooling, and
power conditioning systems, provided that no
modification shall be required of a standard
then in effect under the Energy Policy and
Conservation Act (42 U.S.C. 6201 et seq.) for
any covered heating, ventilation, air-
conditioning, cooling or power-conditioning
product;
(iii) energy savings from the adoption of
software and data management techniques; and
(iv) other factors determined by the
organization described in subsection (c);
(E) allow for creation of separate specifications,
measurements, and benchmarks based on data center size
and function, as well as other appropriate
characteristics;
(F) advance the design and implementation of
efficiency technologies to the maximum extent
economically practical;
(G) provide to data center operators in the private
sector and the Federal Government information about
best practices and purchasing decisions that reduce the
energy consumption of data centers; and
(H) publish the information described in
subparagraph (G), which may be disseminated through
catalogs, trade publications, the Internet, or other
mechanisms, that will allow data center operators to
assess the energy consumption and potential cost
savings of alternative data centers and data center
equipment and facilities.
(3) Procedures.--The program described in paragraph (1)
shall be developed in consultation with and coordinated by the
organization described in subsection (c) according to commonly
accepted procedures for the development of specifications,
measurements, and benchmarks.
(c) Data Center Efficiency Organization.--
(1) In general.--After the establishment of the program
described in subsection (b), the Secretary and the
Administrator shall jointly designate an information technology
industry organization to consult with and to coordinate the
program.
(2) Requirements.--The organization designated under
paragraph (1), whether preexisting or formed specifically for
the purposes of subsection (b), shall--
(A) consist of interested parties that have
expertise in energy efficiency and in the development,
operation, and functionality of computer data centers,
information technology equipment, and software, as well
as representatives of hardware manufacturers, data
center operators, and facility managers;
(B) obtain and address input from Department of
Energy National Laboratories or any college,
university, research institution, industry association,
company, or public interest group with applicable
expertise in any of the areas listed in paragraph (1);
(C) follow commonly accepted procedures for the
development of specifications and accredited standards
development processes;
(D) have a mission to develop and promote energy
efficiency for data centers and information technology;
and
(E) have the primary responsibility to consult in
the development and publishing of the information,
measurements, and benchmarks described in subsection
(b) and transmission of the information to the
Secretary and the Administrator for consideration under
subsection (d).
(d) Measurements and Specifications.--
(1) In general.--The Secretary and the Administrator shall
consider the specifications, measurements, and benchmarks
described in subsection (b) for use by the Federal Energy
Management Program, the Energy Star Program, and other
efficiency programs of the Department of Energy and
Environmental Protection Agency, respectively.
(2) Rejections.--If the Secretary or the Administrator
rejects 1 or more specifications, measurements, or benchmarks
described in subsection (b), the rejection shall be made
consistent with section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note;
Public Law 104-113).
(3) Determination of impracticability.--A determination
that a specification, measurement, or benchmark described in
subsection (b) is impractical may include consideration of the
maximum efficiency that is technologically feasible and
economically justified.
(e) Monitoring.--The Secretary and the Administrator shall--
(1) monitor and evaluate the efforts to develop the program
described in subsection (b); and
(2) not later than 3 years after the date of enactment of
this Act, make a determination as to whether the program is
consistent with the objectives of subsection (b).
(f) Alternative System.--If the Secretary and the Administrator
make a determination under subsection (e) that a voluntary national
information program for data centers consistent with the objectives of
subsection (b) has not been developed, the Secretary and the
Administrator shall, after consultation with the National Institute of
Standards and Technology and not later than 2 years after the
determination, develop and implement the program under subsection (b).
(g) Protection of Proprietary Information.--The Secretary, the
Administrator, or the data center efficiency organization shall not
disclose any proprietary information or trade secrets provided by any
individual or company for the purposes of carrying out this section or
the program established under this section.
Subtitle E--Healthy High-Performance Schools
SEC. 461. HEALTHY HIGH-PERFORMANCE SCHOOLS.
(a) Amendment.--The Toxic Substances Control Act (15 U.S.C. 2601 et
seq.) is amended by adding at the end the following new title:
``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS
``SEC. 501. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS.
``(a) In General.--The Administrator, in consultation with the
Secretary of Education, may provide grants to States for use in--
``(1) providing technical assistance for programs of the
Environmental Protection Agency (including the Tools for
Schools Program and the Healthy School Environmental Assessment
Tool) to schools for use in addressing environmental issues;
and
``(2) development and implementation of State school
environmental health programs that include--
``(A) standards for school building design,
construction, and renovation; and
``(B) identification of ongoing school building
environmental problems, including contaminants,
hazardous substances, and pollutant emissions, in the
State and recommended solutions to address those
problems, including assessment of information on the
exposure of children to environmental hazards in school
facilities.
``(b) Sunset.--The authority of the Administrator to carry out this
section shall expire 5 years after the date of enactment of this
section.
``SEC. 502. MODEL GUIDELINES FOR SITING OF SCHOOL FACILITIES.
``Not later than 18 months after the date of enactment of this
section, the Administrator, in consultation with the Secretary of
Education and the Secretary of Health and Human Services, shall issue
voluntary school site selection guidelines that account for--
``(1) the special vulnerability of children to hazardous
substances or pollution exposures in any case in which the
potential for contamination at a potential school site exists;
``(2) modes of transportation available to students and
staff;
``(3) the efficient use of energy; and
``(4) the potential use of a school at the site as an
emergency shelter.
``SEC. 503. PUBLIC OUTREACH.
``(a) Reports.--The Administrator shall publish and submit to
Congress an annual report on all activities carried out under this
title, until the expiration of authority described in section 501(b).
``(b) Public Outreach.--The Federal Director appointed under
section 436(a) of the Energy Independence and Security Act of 2007 (in
this title referred to as the `Federal Director') shall ensure, to the
maximum extent practicable, that the public clearinghouse established
under section 423(1) of the Energy Independence and Security Act of
2007 receives and makes available information on the exposure of
children to environmental hazards in school facilities, as provided by
the Administrator.
``SEC. 504. ENVIRONMENTAL HEALTH PROGRAM.
``(a) In General.--Not later than 2 years after the date of
enactment of this section, the Administrator, in consultation with the
Secretary of Education, the Secretary of Health and Human Services, and
other relevant agencies, shall issue voluntary guidelines for use by
the State in developing and implementing an environmental health
program for schools that--
``(1) takes into account the status and findings of Federal
initiatives established under this title or subtitle C of title
IV of the Energy Independence and Security Act of 2007 and
other relevant Federal law with respect to school facilities,
including relevant updates on trends in the field, such as the
impact of school facility environments on student and staff--
``(A) health, safety, and productivity; and
``(B) disabilities or special needs;
``(2) takes into account studies using relevant tools
identified or developed in accordance with section 492 of the
Energy Independence and Security Act of 2007;
``(3) takes into account, with respect to school
facilities, each of--
``(A) environmental problems, contaminants,
hazardous substances, and pollutant emissions,
including--
``(i) lead from drinking water;
``(ii) lead from materials and products;
``(iii) asbestos;
``(iv) radon;
``(v) the presence of elemental mercury
releases from products and containers;
``(vi) pollutant emissions from materials
and products; and
``(vii) any other environmental problem,
contaminant, hazardous substance, or pollutant
emission that present or may present a risk to
the health of occupants of the school
facilities or environment;
``(B) natural day lighting;
``(C) ventilation choices and technologies;
``(D) heating and cooling choices and technologies;
``(E) moisture control and mold;
``(F) maintenance, cleaning, and pest control
activities;
``(G) acoustics; and
``(H) other issues relating to the health, comfort,
productivity, and performance of occupants of the
school facilities;
``(4) provides technical assistance on siting, design,
management, and operation of school facilities, including
facilities used by students with disabilities or special needs;
``(5) collaborates with federally funded pediatric
environmental health centers to assist in on-site school
environmental investigations;
``(6) assists States and the public in better understanding
and improving the environmental health of children; and
``(7) takes into account the special vulnerability of
children in low-income and minority communities to exposures
from contaminants, hazardous substances, and pollutant
emissions.
``(b) Public Outreach.--The Federal Director and Commercial
Director shall ensure, to the maximum extent practicable, that the
public clearinghouse established under section 423 of the Energy
Independence and Security Act of 2007 receives and makes available--
``(1) information from the Administrator that is contained
in the report described in section 503(a); and
``(2) information on the exposure of children to
environmental hazards in school facilities, as provided by the
Administrator.
``SEC. 505. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title
$1,000,000 for fiscal year 2009, and $1,500,000 for each of fiscal
years 2010 through 2013, to remain available until expended.''.
(b) Table of Contents Amendment.--The table of contents for the
Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is amended by
adding at the end the following:
``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS
``Sec. 501. Grants for healthy school environments.
``Sec. 502. Model guidelines for siting of school facilities.
``Sec. 503. Public outreach.
``Sec. 504. Environmental health program.
``Sec. 505. Authorization of appropriations.''.
SEC. 462. STUDY ON INDOOR ENVIRONMENTAL QUALITY IN SCHOOLS.
(a) In General.--The Administrator of the Environmental Protection
Agency shall enter into an arrangement with the Secretary of Education
and the Secretary of Energy to conduct a detailed study of how
sustainable building features such as energy efficiency affect multiple
perceived indoor environmental quality stressors on students in K-12
schools.
(b) Contents.--The study shall--
(1) investigate the combined effect building stressors such
as heating, cooling, humidity, lighting, and acoustics have on
building occupants' health, productivity, and overall well-
being;
(2) identify how sustainable building features, such as
energy efficiency, are influencing these human outcomes singly
and in concert; and
(3) ensure that the impacts of the indoor environmental
quality are evaluated as a whole.
(c) Authorization of Appropriations.--There are authorized to be
appropriated for carrying out this section $200,000 for each of the
fiscal years 2008 through 2012.
Subtitle F--Institutional Entities
SEC. 471. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND LOANS FOR
INSTITUTIONS.
Part G of title III of the Energy Policy and Conservation Act is
amended by inserting after section 399 (42 U.S.C. 6371h) the following:
``SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND LOANS FOR
INSTITUTIONS.
``(a) Definitions.--In this section:
``(1) Combined heat and power.--The term `combined heat and
power' means the generation of electric energy and heat in a
single, integrated system, with an overall thermal efficiency
of 60 percent or greater on a higher-heating-value basis.
``(2) District energy systems.--The term `district energy
systems' means systems providing thermal energy from a
renewable energy source, thermal energy source, or highly
efficient technology to more than 1 building or fixed energy-
consuming use from 1 or more thermal-energy production
facilities through pipes or other means to provide space
heating, space conditioning, hot water, steam, compression,
process energy, or other end uses for that energy.
``(3) Energy sustainability.--The term `energy
sustainability' includes using a renewable energy source,
thermal energy source, or a highly efficient technology for
transportation, electricity generation, heating, cooling,
lighting, or other energy services in fixed installations.
``(4) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 2 of the Energy Policy Act of 2005 (42 U.S.C.
15801).
``(5) Institutional entity.--The term `institutional
entity' means an institution of higher education, a public
school district, a local government, a municipal utility, or a
designee of 1 of those entities.
``(6) Renewable energy source.--The term `renewable energy
source' has the meaning given the term in section 609 of the
Public Utility Regulatory Policies Act of 1978 (7 U.S.C. 918c).
``(7) Sustainable energy infrastructure.--The term
`sustainable energy infrastructure' means--
``(A) facilities for production of energy from
renewable energy sources, thermal energy sources, or
highly efficient technologies, including combined heat
and power or other waste heat use; and
``(B) district energy systems.
``(8) Thermal energy source.--The term `thermal energy
source' means--
``(A) a natural source of cooling or heating from
lake or ocean water; and
``(B) recovery of useful energy that would
otherwise be wasted from ongoing energy uses.
``(b) Technical Assistance Grants.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary shall implement a program of
information dissemination and technical assistance to
institutional entities to assist the institutional entities in
identifying, evaluating, designing, and implementing
sustainable energy infrastructure projects in energy
sustainability.
``(2) Assistance.--The Secretary shall support
institutional entities in--
``(A) identification of opportunities for
sustainable energy infrastructure;
``(B) understanding the technical and economic
characteristics of sustainable energy infrastructure;
``(C) utility interconnection and negotiation of
power and fuel contracts;
``(D) understanding financing alternatives;
``(E) permitting and siting issues;
``(F) obtaining case studies of similar and
successful sustainable energy infrastructure systems;
and
``(G) reviewing and obtaining computer software for
assessment, design, and operation and maintenance of
sustainable energy infrastructure systems.
``(3) Eligible costs for technical assistance grants.--On
receipt of an application of an institutional entity, the
Secretary may make grants to the institutional entity to fund a
portion of the cost of--
``(A) feasibility studies to assess the potential
for implementation or improvement of sustainable energy
infrastructure;
``(B) analysis and implementation of strategies to
overcome barriers to project implementation, including
financial, contracting, siting, and permitting
barriers; and
``(C) detailed engineering of sustainable energy
infrastructure.
``(c) Grants for Energy Efficiency Improvement and Energy
Sustainability.--
``(1) Grants.--
``(A) In general.--The Secretary shall award grants
to institutional entities to carry out projects to
improve energy efficiency on the grounds and facilities
of the institutional entity.
``(B) Requirement.--To the extent that applications
have been submitted, grants under subparagraph (A)
shall include not less than 1 grant each year to an
institution of higher education in each State.
``(C) Minimum funding.--Not less than 50 percent of
the total funding for all grants under this subsection
shall be awarded in grants to institutions of higher
education.
``(2) Criteria.--Evaluation of projects for grant funding
shall be based on criteria established by the Secretary,
including criteria relating to--
``(A) improvement in energy efficiency;
``(B) reduction in greenhouse gas emissions and
other air emissions, including criteria air pollutants
and ozone-depleting refrigerants;
``(C) increased use of renewable energy sources or
thermal energy sources;
``(D) reduction in consumption of fossil fuels;
``(E) active student participation; and
``(F) need for funding assistance.
``(3) Condition.--As a condition of receiving a grant under
this subsection, an institutional entity shall agree--
``(A) to implement a public awareness campaign
concerning the project in the community in which the
institutional entity is located; and
``(B) to submit to the Secretary, and make
available to the public, reports on any efficiency
improvements, energy cost savings, and environmental
benefits achieved as part of a project carried out
under paragraph (1), including quantification of the
results relative to the criteria described under
paragraph (2).
``(d) Grants for Innovation in Energy Sustainability.--
``(1) Grants.--
``(A) In general.--The Secretary shall award grants
to institutional entities to engage in innovative
energy sustainability projects.
``(B) Requirement.--To the extent that applications
have been submitted, grants under subparagraph (A)
shall include not less than 2 grants each year to
institutions of higher education in each State.
``(C) Minimum funding.--Not less than 50 percent of
the total funding for all grants under this subsection
shall be awarded in grants to institutions of higher
education.
``(2) Innovation projects.--An innovation project carried
out with a grant under this subsection shall--
``(A) involve--
``(i) an innovative technology that is not
yet commercially available; or
``(ii) available technology in an
innovative application that maximizes energy
efficiency and sustainability;
``(B) have the greatest potential for testing or
demonstrating new technologies or processes; and
``(C) to the extent undertaken by an institution of
higher education, ensure active student participation
in the project, including the planning, implementation,
evaluation, and other phases of projects.
``(3) Condition.--As a condition of receiving a grant under
this subsection, an institutional entity shall agree to submit
to the Secretary, and make available to the public, reports
that describe the results of the projects carried out using
grant funds.
``(e) Allocation to Institutions of Higher Education With Small
Endowments.--
``(1) In general.--Of the total amount of grants provided
to institutions of higher education for a fiscal year under
this section, the Secretary shall provide not less than 50
percent of the amount to institutions of higher education that
have an endowment of not more than $100,000,000.
``(2) Requirement.--To the extent that applications have
been submitted, at least 50 percent of the amount described in
paragraph (1) shall be provided to institutions of higher
education that have an endowment of not more than $50,000,000.
``(f) Grant Amounts.--
``(1) In general.--If the Secretary determines that cost
sharing is appropriate, the amounts of grants provided under
this section shall be limited as provided in this subsection.
``(2) Technical assistance grants.--In the case of grants
for technical assistance under subsection (b), grant funds
shall be available for not more than--
``(A) an amount equal to the lesser of--
``(i) $50,000; or
``(ii) 75 percent of the cost of
feasibility studies to assess the potential for
implementation or improvement of sustainable
energy infrastructure;
``(B) an amount equal to the lesser of--
``(i) $90,000; or
``(ii) 60 percent of the cost of guidance
on overcoming barriers to project
implementation, including financial,
contracting, siting, and permitting barriers;
and
``(C) an amount equal to the lesser of--
``(i) $250,000; or
``(ii) 40 percent of the cost of detailed
engineering and design of sustainable energy
infrastructure.
``(3) Grants for efficiency improvement and energy
sustainability.--In the case of grants for efficiency
improvement and energy sustainability under subsection (c),
grant funds shall be available for not more than an amount
equal to the lesser of--
``(A) $1,000,000; or
``(B) 60 percent of the total cost.
``(4) Grants for innovation in energy sustainability.--In
the case of grants for innovation in energy sustainability
under subsection (d), grant funds shall be available for not
more than an amount equal to the lesser of--
``(A) $500,000; or
``(B) 75 percent of the total cost.
``(g) Loans for Energy Efficiency Improvement and Energy
Sustainability.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary shall provide loans to
institutional entities for the purpose of implementing energy
efficiency improvements and sustainable energy infrastructure.
``(2) Terms and conditions.--
``(A) In general.--Except as otherwise provided in
this paragraph, loans made under this subsection shall
be on such terms and conditions as the Secretary may
prescribe.
``(B) Maturity.--The final maturity of loans made
within a period shall be the lesser of, as determined
by the Secretary--
``(i) 20 years; or
``(ii) 90 percent of the useful life of the
principal physical asset to be financed by the
loan.
``(C) Default.--No loan made under this subsection
may be subordinated to another debt contracted by the
institutional entity or to any other claims against the
institutional entity in the case of default.
``(D) Benchmark interest rate.--
``(i) In general.--Loans under this
subsection shall be at an interest rate that is
set by reference to a benchmark interest rate
(yield) on marketable Treasury securities with
a similar maturity to the direct loans being
made.
``(ii) Minimum.--The minimum interest rate
of loans under this subsection shall be at the
interest rate of the benchmark financial
instrument.
``(iii) New loans.--The minimum interest
rate of new loans shall be adjusted each
quarter to take account of changes in the
interest rate of the benchmark financial
instrument.
``(E) Credit risk.--The Secretary shall--
``(i) prescribe explicit standards for use
in periodically assessing the credit risk of
making direct loans under this subsection; and
``(ii) find that there is a reasonable
assurance of repayment before making a loan.
``(F) Advance budget authority required.--New
direct loans may not be obligated under this subsection
except to the extent that appropriations of budget
authority to cover the costs of the new direct loans
are made in advance, as required by section 504 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661c).
``(3) Criteria.--Evaluation of projects for potential loan
funding shall be based on criteria established by the
Secretary, including criteria relating to--
``(A) improvement in energy efficiency;
``(B) reduction in greenhouse gas emissions and
other air emissions, including criteria air pollutants
and ozone-depleting refrigerants;
``(C) increased use of renewable electric energy
sources or renewable thermal energy sources;
``(D) reduction in consumption of fossil fuels; and
``(E) need for funding assistance, including
consideration of the size of endowment or other
financial resources available to the institutional
entity.
``(4) Labor standards.--
``(A) In general.--All laborers and mechanics
employed by contractors or subcontractors in the
performance of construction, repair, or alteration work
funded in whole or in part under this section shall be
paid wages at rates not less than those prevailing on
projects of a character similar in the locality as
determined by the Secretary of Labor in accordance with
sections 3141 through 3144, 3146, and 3147 of title 40,
United States Code. The Secretary shall not approve any
such funding without first obtaining adequate assurance
that required labor standards will be maintained upon
the construction work.
``(B) Authority and functions.--The Secretary of
Labor shall have, with respect to the labor standards
specified in paragraph (1), the authority and functions
set forth in Reorganization Plan Number 14 of 1950 (15
Fed. Reg. 3176; 64 Stat. 1267) and section 3145 of
title 40, United States Code.
``(h) Program Procedures.--Not later than 180 days after the date
of enactment of this section, the Secretary shall establish procedures
for the solicitation and evaluation of potential projects for grant and
loan funding and administration of the grant and loan programs.
``(i) Authorization.--
``(1) Grants.--There is authorized to be appropriated for
the cost of grants authorized in subsections (b), (c), and (d)
$250,000,000 for each of fiscal years 2009 through 2013, of
which not more than 5 percent may be used for administrative
expenses.
``(2) Loans.--There is authorized to be appropriated for
the initial cost of direct loans authorized in subsection (g)
$500,000,000 for each of fiscal years 2009 through 2013, of
which not more than 5 percent may be used for administrative
expenses.''.
Subtitle G--Public and Assisted Housing
SEC. 481. APPLICATION OF INTERNATIONAL ENERGY CONSERVATION CODE TO
PUBLIC AND ASSISTED HOUSING.
Section 109 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12709) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(C), by striking, ``, where
such standards are determined to be cost effective by
the Secretary of Housing and Urban Development''; and
(B) in the first sentence of paragraph (2)--
(i) by striking ``Council of American
Building Officials Model Energy Code, 1992''
and inserting ``2006 International Energy
Conservation Code''; and
(ii) by striking ``, and, with respect to
rehabilitation and new construction of public
and assisted housing funded by HOPE VI
revitalization grants under section 24 of the
United States Housing Act of 1937 (42 U.S.C.
1437v), the 2003 International Energy
Conservation Code'';
(2) in subsection (b)--
(A) in the heading, by striking ``Model Energy
Code.--'' and inserting ``International Energy
Conservation Code.--'';
(B) by inserting ``and rehabilitation'' after ``all
new construction''; and
(C) by striking ``, and, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization
grants under section 24 of the United States Housing
Act of 1937 (42 U.S.C. 1437v), the 2003 International
Energy Conservation Code'';
(3) in subsection (c)--
(A) in the heading, by striking ``Model Energy Code
and''; and
(B) by striking ``, or, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization
grants under section 24 of the United States Housing
Act of 1937 (42 U.S.C. 1437v), the 2003 International
Energy Conservation Code'';
(4) by adding at the end the following:
``(d) Failure To Amend the Standards.--If the Secretary of Housing
and Urban Development and the Secretary of Agriculture have not, within
1 year after the requirements of the 2006 IECC or the ASHRAE Standard
90.1-2004 are revised, amended the standards or made a determination
under subsection (c), all new construction and rehabilitation of
housing specified in subsection (a) shall meet the requirements of the
revised code or standard if--
``(1) the Secretary of Housing and Urban Development or the
Secretary of Agriculture make a determination that the revised
codes do not negatively affect the availability or
affordability of new construction of assisted housing and
single family and multifamily residential housing (other than
manufactured homes) subject to mortgages insured under the
National Housing Act (12 U.S.C. 1701 et seq.) or insured,
guaranteed, or made by the Secretary of Agriculture under title
V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.),
respectively; and
``(2) the Secretary of Energy has made a determination
under section 304 of the Energy Conservation and Production Act
(42 U.S.C. 6833) that the revised code or standard would
improve energy efficiency.'';
(5) by striking ``CABO Model Energy Code, 1992'' each place
it appears and inserting ``the 2006 IECC''; and
(6) by striking ``1989'' each place it appears and
inserting ``2004''.
Subtitle H--General Provisions
SEC. 491. DEMONSTRATION PROJECT.
(a) In General.--The Federal Director and the Commercial Director
shall establish guidelines to implement a demonstration project to
contribute to the research goals of the Office of Commercial High-
Performance Green Buildings and the Office of Federal High-Performance
Green Buildings.
(b) Projects.--In accordance with guidelines established by the
Federal Director and the Commercial Director under subsection (a) and
the duties of the Federal Director and the Commercial Director
described in this title, the Federal Director or the Commercial
Director shall carry out--
(1) for each of fiscal years 2009 through 2014, 1
demonstration project per year of green features in a Federal
building selected by the Federal Director in accordance with
relevant agencies and described in subsection (c)(1), that--
(A) provides for instrumentation, monitoring, and
data collection related to the green features, for
study of the impact of the features on overall enrgy
use and operational costs, and for the evaluation of
the information obtained through the conduct of
projects and activities under this title; and
(B) achieves the highest rating offered by the high
performance green building system identified pursuant
to section 436(h);
(2) no fewer than 4 demonstration projects at 4
universities, that, as competitively selected by the Commercial
Director in accordance with subsection (c)(2), have--
(A) appropriate research resources and relevant
projects to meet the goals of the demonstration project
established by the Office of Commercial High-
Performance Green Buildings; and
(B) the ability--
(i) to serve as a model for high-
performance green building initiatives,
including research and education by achieving
the highest rating offered by the high
performance green building system identified
pursuant to section 436(h);
(ii) to identify the most effective ways o
use high-performance green building and
landscape technologies to engage and educate
undergraduate and graduate students;
(iii) to effectively implement a high-
performance green building education program
for students and occupants;
(iv) to demonstrate the effectiveness of
various high-performance technologies,
including their impacts on energy use and
operational costs, in each of the 4 climatic
regions of the United States described in
subsection (c)(2)(B); and
(v) to explore quantifiable and
nonquantifiable beneficial impacts on public
health and employee and student performance;
(3) demonstration projects to evaluate replicable
approaches of achieving high performance in actual building
operation in various types of commercial buildings in various
climates; and
(4) deployment activities to disseminate information on and
encourage widespread adoption of technologies, practices, and
policies to achieve zero-net-energy commercial buildings or low
energy use and effective monitoring of energy use in commercial
buildings.
(c) Criteria.--
(1) Federal facilities.--With respect to the existing or
proposed Federal facility at which a demonstration project
under this section is conducted, the Federal facility shall--
(A) be an appropriate model for a project relating
to--
(i) the effectiveness of high-performance
technologies;
(ii) analysis of materials, components,
systems, and emergency operations in the
building, and the impact of those materials,
components, and systems, including the impact
on the health of building occupants;
(iii) life-cycle costing and life-cycle
assessment of building materials and systems;
and
(iv) location and design that promote
access to the Federal facility through walking,
biking, and mass transit; and
(B) possess sufficient technological and
organizational adaptability.
(2) Universities.--With respect to the 4 universities at
which a demonstration project under this section is conducted--
(A) the universities should be selected, after
careful review of all applications received containing
the required information, as determined by the
Commercial Director, based on--
(i) successful and established public-
private research and development partnerships;
(ii) demonstrated capabilities to construct
or renovate buildings that meet high indoor
environmental quality standards;
(iii) organizational flexibility;
(iv) technological adaptability;
(v) the demonstrated capacity of at least 1
university to replicate lessons learned among
nearby or sister universities, preferably by
participation in groups or consortia that
promote sustainability;
(vi) the demonstrated capacity of at least
1 university to have officially-adopted,
institution-wide ``high-performance green
building'' guidelines for all campus building
projects; and
(vii) the demonstrated capacity of at least
1 university to have been recognized by similar
institutions as a national leader in
sustainability education and curriculum for
students of the university; and
(B) each university shall be located in a different
climatic region of the United States, each of which
regions shall have, as determined by the Office of
Commercial High-Performance Green Buildings--
(i) a hot, dry climate;
(ii) a hot, humid climate;
(iii) a cold climate; or
(iv) a temperate climate (including a
climate with cold winters and humid summers).
(d) Applications.--To receive a grant under subsection (b), an
eligible applicant shall submit to the Federal Director or the
Commercial Director an application at such time, in such manner, and
containing such information as the Director may require, including a
written assurance that all laborers and mechanics employed by
contractors or subcontractors during construction, alteration, or
repair that is financed, in whole or in part, by a grant under this
section shall be paid wages at rates not less than those prevailing on
similar construction in the locality, as determined by the Secretary of
Labor in accordance with sections 3141 through 3144, 3146, and 3147 of
title 40, United States Code. The Secretary of Labor shall, with
respect to the labor standards described in this subsection, have the
authority and functions set forth in Reorganization Plan Numbered 14 of
1950 (5 U.S.C. App.) and section 3145 of title 40, United States Code.
(e) Report.--Not later than 1 year after the date of enactment of
this Act, and annually thereafter through September 30, 2014--
(1) the Federal Director and the Commercial Director shall
submit to the Secretary a report that describes the status of
the demonstration projects; and
(2) each University at which a demonstration project under
this section is conducted shall submit to the Secretary a
report that describes the status of the demonstration projects
under this section.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the demonstration project described in
section (b)(1) $10,000,000 for the period of fiscal years 2008 through
2012, and to carry out the demonstration project described in section
(b)(2), $10,000,000 for the period of fiscal years 2008 through 2012,
to remain available until expended.
SEC. 492. RESEARCH AND DEVELOPMENT.
(a) Establishment.--The Federal Director and the Commercial
Director, jointly and in coordination with the Advisory Committee,
shall--
(1)(A) survey existing research and studies relating to
high-performance green buildings; and
(B) coordinate activities of common interest;
(2) develop and recommend a high-performance green building
research plan that--
(A) identifies information and research needs,
including the relationships between human health,
occupant productivity, safety, security, and
accessibility and each of--
(i) emissions from materials and products
in the building;
(ii) natural day lighting;
(iii) ventilation choices and technologies;
(iv) heating, cooling, and system control
choices and technologies;
(v) moisture control and mold;
(vi) maintenance, cleaning, and pest
control activities;
(vii) acoustics;
(viii) access to public transportation; and
(ix) other issues relating to the health,
comfort, productivity, and performance of
occupants of the building;
(B) promotes the development and dissemination of
high-performance green building measurement tools that,
at a minimum, may be used--
(i) to monitor and assess the life-cycle
performance of facilities (including
demonstration projects) built as high-
performance green buildings; and
(ii) to perform life-cycle assessments; and
(C) identifies and tests new and emerging
technologies for high performance green buildings;
(3) assist the budget and life-cycle costing functions of
the Directors' Offices under section 436(d);
(4) study and identify potential benefits of green
buildings relating to security, natural disaster, and emergency
needs of the Federal Government; and
(5) support other research initiatives determined by the
Directors' Offices.
(b) Indoor Air Quality.--The Federal Director, in consultation with
the Administrator of the Environmental Protection Agency and the
Advisory Committee, shall develop and carry out a comprehensive indoor
air quality program for all Federal facilities to ensure the safety of
Federal workers and facility occupants--
(1) during new construction and renovation of facilities;
and
(2) in existing facilities.
SEC. 493. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT PROGRAM
FOR LOCAL GOVERNMENTS.
Title III of the Clean Air Act (42 U.S.C. 7601 et seq.) is amended
by adding at the end the following:
``SEC. 329. DEMONSTRATION GRANT PROGRAM FOR LOCAL GOVERNMENTS.
``(a) Grant Program.--
``(1) In general.--The Administrator shall establish a
demonstration program under which the Administrator shall
provide competitive grants to assist local governments (such as
municipalities and counties), with respect to local government
buildings--
``(A) to deploy cost-effective technologies and
practices; and
``(B) to achieve operational cost savings, through
the application of cost-effective technologies and
practices, as verified by the Administrator.
``(2) Cost sharing.--
``(A) In general.--The Federal share of the cost of
an activity carried out using a grant provided under
this section shall be 40 percent.
``(B) Waiver of non-federal share.--The
Administrator may waive up to 100 percent of the local
share of the cost of any grant under this section
should the Administrator determine that the community
is economically distressed, pursuant to objective
economic criteria established by the Administrator in
published guidelines.
``(3) Maximum amount.--The amount of a grant provided under
this subsection shall not exceed $1,000,000.
``(b) Guidelines.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator shall issue
guidelines to implement the grant program established under
subsection (a).
``(2) Requirements.--The guidelines under paragraph (1)
shall establish--
``(A) standards for monitoring and verification of
operational cost savings through the application of
cost-effective technologies and practices reported by
grantees under this section;
``(B) standards for grantees to implement training
programs, and to provide technical assistance and
education, relating to the retrofit of buildings using
cost-effective technologies and practices; and
``(C) a requirement that each local government that
receives a grant under this section shall achieve
facility-wide cost savings, through renovation of
existing local government buildings using cost-
effective technologies and practices, of at least 40
percent as compared to the baseline operational costs
of the buildings before the renovation (as calculated
assuming a 3-year, weather-normalized average).
``(c) Compliance With State and Local Law.--Nothing in this section
or any program carried out using a grant provided under this section
supersedes or otherwise affects any State or local law, to the extent
that the State or local law contains a requirement that is more
stringent than the relevant requirement of this section.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for each of fiscal
years 2007 through 2012.
``(e) Reports.--
``(1) In general.--The Administrator shall provide annual
reports to Congress on cost savings achieved and actions taken
and recommendations made under this section, and any
recommendations for further action.
``(2) Final report.--The Administrator shall issue a final
report at the conclusion of the program, including findings, a
summary of total cost savings achieved, and recommendations for
further action.
``(f) Termination.--The program under this section shall terminate
on September 30, 2012.
``(g) Definitions.--In this section, the terms `cost effective
technologies and practices' and `operating cost savings' shall have the
meanings defined in section 401 of the Energy Independence and Security
Act of 2007.''.
SEC. 494. GREEN BUILDING ADVISORY COMMITTEE.
(a) Establishment.--Not later than 180 days after the date of
enactment of this Act, the Federal Director, in coordination with the
Commercial Director, shall establish an advisory committee, to be known
as the ``Green Building Advisory Committee''.
(b) Membership.--
(1) In general.--The Committee shall be composed of
representatives of, at a minimum--
(A) each agency referred to in section 421(e); and
(B) other relevant agencies and entities, as
determined by the Federal Director, including at least
1 representative of each of--
(i) State and local governmental green
building programs;
(ii) independent green building
associations or councils;
(iii) building experts, including
architects, material suppliers, and
construction contractors;
(iv) security advisors focusing on national
security needs, natural disasters, and other
dire emergency situations;
(v) public transportation industry experts;
and
(vi) environmental health experts,
including those with experience in children's
health.
(2) Non-federal members.--The total number of non-Federal
members on the Committee at any time shall not exceed 15.
(c) Meetings.--The Federal Director shall establish a regular
schedule of meetings for the Committee.
(d) Duties.--The Committee shall provide advice and expertise for
use by the Federal Director in carrying out the duties under this
subtitle, including such recommendations relating to Federal activities
carried out under sections 434 through 436 as are agreed to by a
majority of the members of the Committee.
(e) FACA Exemption.--The Committee shall not be subject to section
14 of the Federal Advisory Committee Act (5 U.S.C. App.).
SEC. 495. ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCE.
(a) Establishment.--The Secretary, acting through the Assistant
Secretary of Energy for Energy Efficiency and Renewable Energy, shall
establish an Advisory Committee on Energy Efficiency Finance to provide
advice and recommendations to the Department on energy efficiency
finance and investment issues, options, ideas, and trends, and to
assist the energy community in identifying practical ways of lowering
costs and increasing investments in energy efficiency technologies.
(b) Membership.--The advisory committee established under this
section shall have a balanced membership that shall include members
with expertise in--
(1) availability of seed capital;
(2) availability of venture capital;
(3) availability of other sources of private equity;
(4) investment banking with respect to corporate finance;
(5) investment banking with respect to mergers and
acquisitions;
(6) equity capital markets;
(7) debt capital markets;
(8) research analysis;
(9) sales and trading;
(10) commercial lending; and
(11) residential lending.
(c) Termination.--The Advisory Committee on Energy Efficiency
Finance shall terminate on the date that is 10 years after the date of
enactment of this Act.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to the Secretary for carrying
out this section.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A--United States Capitol Complex
SEC. 501. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY STUDIES.
(a) Studies.--The Architect of the Capitol may conduct feasibility
studies regarding construction of photovoltaic roofs for the Rayburn
House Office Building and the Hart Senate Office Building.
(b) Report.--Not later than 6 months after the date of enactment of
this Act, the Architect of the Capitol shall transmit to the Committee
on Transportation and Infrastructure of the House of Representatives
and the Committee on Rules and Administration of the Senate a report on
the results of the feasibility studies and recommendations regarding
construction of photovoltaic roofs for the buildings referred to in
subsection (a).
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $500,000.
SEC. 502. CAPITOL COMPLEX E-85 REFUELING STATION.
(a) Construction.--The Architect of the Capitol may construct a
fuel tank and pumping system for E-85 fuel at or within close proximity
to the Capitol Grounds Fuel Station.
(b) Use.--The E-85 fuel tank and pumping system shall be available
for use by all legislative branch vehicles capable of operating with E-
85 fuel, subject to such other legislative branch agencies reimbursing
the Architect of the Capitol for the costs of E-85 fuel used by such
other legislative branch vehicles.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $640,000 for fiscal year 2008.
SEC. 503. ENERGY AND ENVIRONMENTAL MEASURES IN CAPITOL COMPLEX MASTER
PLAN.
(a) In General.--To the maximum extent practicable, the Architect
of the Capitol shall include energy efficiency and conservation
measures, greenhouse gas emission reduction measures, and other
appropriate environmental measures in the Capitol Complex Master Plan.
(b) Report.--Not later than 6 months after the date of enactment of
this Act, the Architect of the Capitol shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Rules and Administration of the Senate a report on the
energy efficiency and conservation measures, greenhouse gas emission
reduction measures, and other appropriate environmental measures
included in the Capitol Complex Master Plan pursuant to subsection (a).
SEC. 504. PROMOTING MAXIMUM EFFICIENCY IN OPERATION OF CAPITOL POWER
PLANT.
(a) Steam Boilers.--
(1) In general.--The Architect of the Capitol shall take
such steps as may be necessary to operate the steam boilers at
the Capitol Power Plant in the most energy efficient manner
possible to minimize carbon emissions and operating costs,
including adjusting steam pressures and adjusting the operation
of the boilers to take into account variations in demand,
including seasonality, for the use of the system.
(2) Effective date.--The Architect shall implement the
steps required under paragraph (1) not later than 30 days after
the date of the enactment of this Act.
(b) Chiller Plant.--
(1) In general.--The Architect of the Capitol shall take
such steps as may be necessary to operate the chiller plant at
the Capitol Power Plant in the most energy efficient manner
possible to minimize carbon emissions and operating costs,
including adjusting water temperatures and adjusting the
operation of the chillers to take into account variations in
demand, including seasonality, for the use of the system.
(2) Effective date.--The Architect shall implement the
steps required under paragraph (1) not later than 30 days after
the date of the enactment of this Act.
(c) Meters.--Not later than 90 days after the date of the enactment
of this Act, the Architect of the Capitol shall evaluate the accuracy
of the meters in use at the Capitol Power Plant and correct them as
necessary.
(d) Report on Implementation.--Not later than 180 days after the
date of the enactment of this Act, the Architect of the Capitol shall
complete the implementation of the requirements of this section and
submit a report describing the actions taken and the energy
efficiencies achieved to the Committee on Transportation and
Infrastructure of the House of Representatives, the Committee on
Commerce, Science, and Transportation of the Senate, the Committee on
House Administration of the House of Representatives, and the Committee
on Rules and Administration of the Senate.
SEC. 505. CAPITOL POWER PLANT CARBON DIOXIDE EMISSIONS FEASIBILITY
STUDY AND DEMONSTRATION PROJECTS.
The first section of the Act of March 4, 1911 (2 U.S.C. 2162; 36
Stat. 1414, chapter 285) is amended in the seventh undesignated
paragraph (relating to the Capitol power plant) under the heading
``Public Buildings'', under the heading ``Under the Department of
Interior''--
(1) by striking ``ninety thousand dollars:'' and inserting
$90,000.''; and
(2) by striking ``Provided, That hereafter the'' and all
that follows through the end of the proviso and inserting the
following:
``(a) Designation.--The heating, lighting, and power plant
constructed under the terms of the Act approved April 28, 1904 (33
Stat. 479, chapter 1762) shall be known as the `Capitol Power Plant'.
``(b) Definition.--In this section, the term `carbon dioxide energy
efficiency' means the quantity of electricity used to power equipment
for carbon dioxide capture and storage or use.
``(c) Feasibility Study.--The Architect of the Capitol shall
conduct a feasibility study evaluating the available methods to
capture, store, and use carbon dioxide emitted from the Capitol Power
Plant as a result of burning fossil fuels. In carrying out the
feasibility study, the Architect of the Capitol is encouraged to
consult with individuals with expertise in carbon capture and storage
or use, including experts with the Environmental Protection Agency,
Department of Energy, academic institutions, non-profit organizations,
and industry, as appropriate. The study shall consider--
``(1) the availability of technologies to capture and store
or use Capitol Power Plant carbon dioxide emissions;
``(2) strategies to conserve energy and reduce carbon
dioxide emissions at the Capitol Power Plant; and
``(3) other factors as determined by the Architect of the
Capitol.
``(d) Demonstration Projects.--
``(1) In general.--If the feasibility study determines that
a demonstration project to capture and store or use Capitol
Power Plant carbon dioxide emissions is technologically
feasible and economically justified (including direct and
indirect economic and environmental benefits), the Architect of
the Capitol may conduct one or more demonstration projects to
capture and store or use carbon dioxide emitted from the
Capitol Power Plant as a result of burning fossil fuels.
``(2) Factors for consideration.--In carrying out such
demonstration projects, the Architect of the Capitol shall
consider--
``(A) the amount of Capitol Power Plant carbon
dioxide emissions to be captured and stored or used;
``(B) whether the proposed project is able to
reduce air pollutants other than carbon dioxide;
``(C) the carbon dioxide energy efficiency of the
proposed project;
``(D) whether the proposed project is able to use
carbon dioxide emissions;
``(E) whether the proposed project could be
expanded to significantly increase the amount of
Capitol Power Plant carbon dioxide emissions to be
captured and stored or used;
``(F) the potential environmental, energy, and
educational benefits of demonstrating the capture and
storage or use of carbon dioxide at the U.S. Capitol;
and
``(G) other factors as determined by the Architect
of the Capitol.
``(3) Terms and conditions.--A demonstration project funded
under this section shall be subject to such terms and
conditions as the Architect of the Capitol may prescribe.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the feasibility study and demonstration
project $3,000,000. Such sums shall remain available until expended.''.
Subtitle B--Energy Savings Performance Contracting
SEC. 511. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS.
(a) In General.--Section 801(a)(2)(D) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)(2)(D)) is amended--
(1) in clause (ii), by inserting ``and'' after the
semicolon at the end;
(2) by striking clause (iii); and
(3) by redesignating clause (iv) as clause (iii).
(b) Reports.--Section 548(a)(2) of the National Energy Conservation
Policy Act (42 U.S.C. 8258(a)(2)) is amended by inserting ``and any
termination penalty exposure'' after ``the energy and cost savings that
have resulted from such contracts''.
(c) Conforming Amendment.--Section 2913 of title 10, United States
Code, is amended by striking subsection (e).
SEC. 512. FINANCING FLEXIBILITY.
Section 801(a)(2) of the National Energy Conservation Policy Act
(42 U.S.C. 8287(a)(2)) is amended by adding at the end the following:
``(E) Funding options.--In carrying out a contract
under this title, a Federal agency may use any
combination of--
``(i) appropriated funds; and
``(ii) private financing under an energy
savings performance contract.''.
SEC. 513. PROMOTING LONG-TERM ENERGY SAVINGS PERFORMANCE CONTRACTS AND
VERIFYING SAVINGS.
Section 801(a)(2) of the National Energy Conservation Policy Act
(42 U.S.C. 8287(a)(2)) (as amended by section 512) is amended--
(1) in subparagraph (D), by inserting ``beginning on the
date of the delivery order'' after ``25 years''; and
(2) by adding at the end the following:
``(F) Promotion of contracts.--In carrying out this
section, a Federal agency shall not--
``(i) establish a Federal agency policy
that limits the maximum contract term under
subparagraph (D) to a period shorter than 25
years; or
``(ii) limit the total amount of
obligations under energy savings performance
contracts or other private financing of energy
savings measures.
``(G) Measurement and verification requirements for
private financing.--
``(i) In general.--In the case of energy
savings performance contracts, the evaluations
and savings measurement and verification
required under paragraphs (2) and (4) of
section 543(f) shall be used by a Federal
agency to meet the requirements for the need
for energy audits, calculation of energy
savings, and any other evaluation of costs and
savings needed to implement the guarantee of
savings under this section.
``(ii) Modification of existing
contracts.--Not later than 18 months after the
date of enactment of this subparagraph, each
Federal agency shall, to the maximum extent
practicable, modify any indefinite delivery and
indefinite quantity energy savings performance
contracts, and other indefinite delivery and
indefinite quantity contracts using private
financing, to conform to the amendments made by
subtitle B of title V of the Energy
Independence and Security Act of 2007.''.
SEC. 514. PERMANENT REAUTHORIZATION.
Section 801 of the National Energy Conservation Policy Act (42
U.S.C. 8287) is amended by striking subsection (c).
SEC. 515. DEFINITION OF ENERGY SAVINGS.
Section 804(2) of the National Energy Conservation Policy Act (42
U.S.C. 8287c(2)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and indenting
appropriately;
(2) by striking ``means a reduction'' and inserting
``means--
``(A) a reduction'';
(3) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following:
``(B) the increased efficient use of an existing
energy source by cogeneration or heat recovery;
``(C) if otherwise authorized by Federal or State
law (including regulations), the sale or transfer of
electrical or thermal energy generated on-site from
renewable energy sources or cogeneration, but in excess
of Federal needs, to utilities or non-Federal energy
users; and
``(D) the increased efficient use of existing water
sources in interior or exterior applications.''.
SEC. 516. RETENTION OF SAVINGS.
Section 546(c) of the National Energy Conservation Policy Act (42
U.S.C. 8256(c)) is amended by striking paragraph (5).
SEC. 517. TRAINING FEDERAL CONTRACTING OFFICERS TO NEGOTIATE ENERGY
EFFICIENCY CONTRACTS.
(a) Program.--The Secretary shall create and administer in the
Federal Energy Management Program a training program to educate Federal
contract negotiation and contract management personnel so that the
contract officers are prepared to--
(1) negotiate energy savings performance contracts;
(2) conclude effective and timely contracts for energy
efficiency services with all companies offering energy
efficiency services; and
(3) review Federal contracts for all products and services
for the potential energy efficiency opportunities and
implications of the contracts.
(b) Schedule.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall plan, staff, announce, and begin training
under the Federal Energy Management Program.
(c) Personnel to Be Trained.--Personnel appropriate to receive
training under the Federal Energy Management Program shall be selected
by and sent for the training from--
(1) the Department of Defense;
(2) the Department of Veterans Affairs;
(3) the Department;
(4) the General Services Administration;
(5) the Department of Housing and Urban Development;
(6) the United States Postal Service; and
(7) all other Federal agencies and departments that enter
contracts for buildings, building services, electricity and
electricity services, natural gas and natural gas services,
heating and air conditioning services, building fuel purchases,
and other types of procurement or service contracts determined
by the Secretary, in carrying out the Federal Energy Management
Program, to offer the potential for energy savings and
greenhouse gas emission reductions if negotiated with taking
into account those goals.
(d) Trainers.--Training under the Federal Energy Management Program
may be conducted by--
(1) attorneys or contract officers with experience in
negotiating and managing contracts described in subsection
(c)(7) from any agency, except that the Secretary shall
reimburse the related salaries and expenses of the attorneys or
contract officers from amounts made available for carrying out
this section to the extent the attorneys or contract officers
are not employees of the Department; and
(2) private experts hired by the Secretary for the purposes
of this section, except that the Secretary may not hire experts
who are simultaneously employed by any company under contract
to provide energy efficiency services to the Federal
Government.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $750,000 for
each of fiscal years 2008 through 2012.
SEC. 518. STUDY OF ENERGY AND COST SAVINGS IN NONBUILDING APPLICATIONS.
(a) Definitions.--In this section:
(1) Nonbuilding application.--The term ``nonbuilding
application'' means--
(A) any class of vehicles, devices, or equipment
that is transportable under the power of the applicable
vehicle, device, or equipment by land, sea, or air and
that consumes energy from any fuel source for the
purpose of--
(i) that transportation; or
(ii) maintaining a controlled environment
within the vehicle, device, or equipment; and
(B) any federally-owned equipment used to generate
electricity or transport water.
(2) Secondary savings.--
(A) In general.--The term ``secondary savings''
means additional energy or cost savings that are a
direct consequence of the energy savings that result
from the energy efficiency improvements that were
financed and implemented pursuant to an energy savings
performance contract.
(B) Inclusions.--The term ``secondary savings''
includes--
(i) energy and cost savings that result
from a reduction in the need for fuel delivery
and logistical support;
(ii) personnel cost savings and
environmental benefits; and
(iii) in the case of electric generation
equipment, the benefits of increased efficiency
in the production of electricity, including
revenues received by the Federal Government
from the sale of electricity so produced.
(b) Study.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary and the Secretary of
Defense shall jointly conduct, and submit to Congress and the
President a report of, a study of the potential for the use of
energy savings performance contracts to reduce energy
consumption and provide energy and cost savings in nonbuilding
applications.
(2) Requirements.--The study under this subsection shall
include--
(A) an estimate of the potential energy and cost
savings to the Federal Government, including secondary
savings and benefits, from increased efficiency in
nonbuilding applications;
(B) an assessment of the feasibility of extending
the use of energy savings performance contracts to
nonbuilding applications, including an identification
of any regulatory or statutory barriers to that use;
and
(C) such recommendations as the Secretary and
Secretary of Defense determine to be appropriate.
Subtitle C--Energy Efficiency in Federal Agencies
SEC. 521. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT OF ENERGY
HEADQUARTERS BUILDING.
(a) In General.--The Administrator of General Services shall
install a photovoltaic system, as set forth in the Sun Wall Design
Project, for the headquarters building of the Department located at
1000 Independence Avenue, SW., Washington, DC, commonly known as the
Forrestal Building.
(b) Funding.--There shall be available from the Federal Buildings
Fund established by section 592 of title 40, United States Code,
$30,000,000 to carry out this section. Such sums shall be derived from
the unobligated balance of amounts made available from the Fund for
fiscal year 2007, and prior fiscal years, for repairs and alternations
and other activities (excluding amounts made available for the energy
program). Such sums shall remain available until expended.
SEC. 522. PROHIBITION ON INCANDESCENT LAMPS BY COAST GUARD.
(a) Prohibition.--Except as provided by subsection (b), on and
after January 1, 2009, a general service incandescent lamp shall not be
purchased or installed in a Coast Guard facility by or on behalf of the
Coast Guard.
(b) Exception.--A general service incandescent lamp may be
purchased, installed, and used in a Coast Guard facility whenever the
application of a general service incandescent lamp is--
(1) necessary due to purpose or design, including medical,
security, and industrial applications;
(2) reasonable due to the architectural or historical value
of a light fixture installed before January 1, 2009; or
(3) the Commandant of the Coast Guard determines that
operational requirements necessitate the use of a general
service incandescent lamp.
(c) Limitation.--In this section, the term ``facility'' does not
include a vessel or aircraft of the Coast Guard.
SEC. 523. STANDARD RELATING TO SOLAR HOT WATER HEATERS.
Section 305(a)(3)(A) of the Energy Conservation and Production Act
(42 U.S.C. 6834(a)(3)(A)) is amended--
(1) in clause (i)(II), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(iii) if lifecycle cost-effective, as
compared to other reasonably available
technologies, not less than 30 percent of the
hot water demand for each new Federal building
or Federal building undergoing a major
renovation be met through the installation and
use of solar hot water heaters.''.
SEC. 524. FEDERALLY-PROCURED APPLIANCES WITH STANDBY POWER.
Section 553 of the National Energy Conservation Policy Act (42
U.S.C. 8259b) is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:
``(e) Federally-Procured Appliances With Standby Power.--
``(1) Definition of eligible product.--In this subsection,
the term `eligible product' means a commercially available,
off-the-shelf product that--
``(A)(i) uses external standby power devices; or
``(ii) contains an internal standby power function;
and
``(B) is included on the list compiled under
paragraph (4).
``(2) Federal purchasing requirement.--Subject to paragraph
(3), if an agency purchases an eligible product, the agency
shall purchase--
``(A) an eligible product that uses not more than 1
watt in the standby power consuming mode of the
eligible product; or
``(B) if an eligible product described in
subparagraph (A) is not available, the eligible product
with the lowest available standby power wattage in the
standby power consuming mode of the eligible product.
``(3) Limitation.--The requirements of paragraph (2) shall
apply to a purchase by an agency only if--
``(A) the lower-wattage eligible product is--
``(i) lifecycle cost-effective; and
``(ii) practicable; and
``(B) the utility and performance of the eligible
product is not compromised by the lower wattage
requirement.
``(4) Eligible products.--The Secretary, in consultation
with the Secretary of Defense, the Administrator of the
Environmental Protection Agency, and the Administrator of
General Services, shall compile a publicly accessible list of
cost-effective eligible products that shall be subject to the
purchasing requirements of paragraph (2).''.
SEC. 525. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Amendments.--Section 553 of the National Energy Conservation
Policy Act (42 U.S.C. 8259b) is amended--
(1) in subsection (b)(1), by inserting ``in a product
category covered by the Energy Star program or the Federal
Energy Management Program for designated products'' after
``energy consuming product''; and
(2) in the second sentence of subsection (c)--
(A) by inserting ``list in their catalogues,
represent as available, and'' after ``Logistics Agency
shall''; and
(B) by striking ``where the agency'' and inserting
``in which the head of the agency''.
(b) Catalogue Listing Deadline.--Not later than 9 months after the
date of enactment of this Act, the General Services Administration and
the Defense Logistics Agency shall ensure that the requirement
established by the amendment made by subsection (a)(2)(A) has been
fully complied with.
SEC. 526. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.
No Federal agency shall enter into a contract for procurement of an
alternative or synthetic fuel, including a fuel produced from
nonconventional petroleum sources, for any mobility-related use, other
than for research or testing, unless the contract specifies that the
lifecycle greenhouse gas emissions associated with the production and
combustion of the fuel supplied under the contract must, on an ongoing
basis, be less than or equal to such emissions from the equivalent
conventional fuel produced from conventional petroleum sources.
SEC. 527. GOVERNMENT EFFICIENCY STATUS REPORTS.
(a) In General.--Each Federal agency subject to any of the
requirements of this title or the amendments made by this title shall
compile and submit to the Director of the Office of Management and
Budget an annual Government efficiency status report on--
(1) compliance by the agency with each of the requirements
of this title and the amendments made by this title;
(2) the status of the implementation by the agency of
initiatives to improve energy efficiency, reduce energy costs,
and reduce emissions of greenhouse gases; and
(3) savings to the taxpayers of the United States resulting
from mandated improvements under this title and the amendments
made by this title
(b) Submission.--The report shall be submitted--
(1) to the Director at such time as the Director requires;
(2) in electronic, not paper, format; and
(3) consistent with related reporting requirements.
SEC. 528. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.
(a) Reports.--Not later than April 1 of each year, the Director of
the Office of Management and Budget shall submit an annual Government
efficiency report to the Committee on Oversight and Government Reform
of the House of Representatives and the Committee on Governmental
Affairs of the Senate, which shall contain--
(1) a summary of the information reported by agencies under
section 527;
(2) an evaluation of the overall progress of the Federal
Government toward achieving the goals of this title and the
amendments made by this title; and
(3) recommendations for additional actions necessary to
meet the goals of this title and the amendments made by this
title.
(b) Scorecards.--The Director of the Office of Management and
Budget shall include in any annual energy scorecard the Director is
otherwise required to submit a description of the compliance of each
agency with the requirements of this title and the amendments made by
this title.
SEC. 529. ELECTRICITY SECTOR DEMAND RESPONSE.
(a) In General.--Title V of the National Energy Conservation Policy
Act (42 U.S.C. 8241 et seq.) is amended by adding at the end the
following:
``PART 5--PEAK DEMAND REDUCTION
``SEC. 571. NATIONAL ACTION PLAN FOR DEMAND RESPONSE.
``(a) National Assessment and Report.--The Federal Energy
Regulatory Commission (`Commission') shall conduct a National
Assessment of Demand Response. The Commission shall, within 18 months
of the date of enactment of this part, submit a report to Congress that
includes each of the following:
``(1) Estimation of nationwide demand response potential in
5 and 10 year horizons, including data on a State-by-State
basis, and a methodology for updates of such estimates on an
annual basis.
``(2) Estimation of how much of this potential can be
achieved within 5 and 10 years after the enactment of this part
accompanied by specific policy recommendations that if
implemented can achieve the estimated potential. Such
recommendations shall include options for funding and/or
incentives for the development of demand response resources.
``(3) The Commission shall further note any barriers to
demand response programs offering flexible, non-discriminatory,
and fairly compensatory terms for the services and benefits
made available, and shall provide recommendations for
overcoming such barriers.
``(4) The Commission shall seek to take advantage of
preexisting research and ongoing work, and shall insure that
there is no duplication of effort.
``(b) National Action Plan on Demand Response.--The Commission
shall further develop a National Action Plan on Demand Response,
soliciting and accepting input and participation from a broad range of
industry stakeholders, State regulatory utility commissioners, and non-
governmental groups. The Commission shall seek consensus where
possible, and decide on optimum solutions to issues that defy
consensus. Such Plan shall be completed within one year after the
completion of the National Assessment of Demand Response, and shall
meet each of the following objectives:
``(1) Identification of requirements for technical
assistance to States to allow them to maximize the amount of
demand response resources that can be developed and deployed.
``(2) Design and identification of requirements for
implementation of a national communications program that
includes broad-based customer education and support.
``(3) Development or identification of analytical tools,
information, model regulatory provisions, model contracts, and
other support materials for use by customers, states, utilities
and demand response providers.
``(c) Upon completion, the National Action Plan on Demand Response
shall be published, together with any favorable and dissenting comments
submitted by participants in its preparation. Six months after
publication, the Commission, together with the Secretary of Energy,
shall submit to Congress a proposal to implement the Action Plan,
including specific proposed assignments of responsibility, proposed
budget amounts, and any agreements secured for participation from State
and other participants.
``(d) Authorization.--There are authorized to be appropriated to
the Commission to carry out this section not more than $10,000,000 for
each of the fiscal years 2008, 2009, and 2010.''.
(b) Table of Contents.--The table of contents for the National
Energy Conservation Policy Act (42 U.S.C. 8201 note) is amended by
adding after the items relating to part 4 of title V the following:
``Part 5--Peak Demand Reduction
``Sec. 571. National Action Plan for Demand Response.''.
Subtitle D--Energy Efficiency of Public Institutions
SEC. 531. REAUTHORIZATION OF STATE ENERGY PROGRAMS.
Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C.
6325(f)) is amended by striking ``$100,000,000 for each of the fiscal
years 2006 and 2007 and $125,000,000 for fiscal year 2008'' and
inserting ``$125,000,000 for each of fiscal years 2007 through 2012''.
SEC. 532. UTILITY ENERGY EFFICIENCY PROGRAMS.
(a) Electric Utilities.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
adding at the end the following:
``(16) Integrated resource planning.--Each electric utility
shall--
``(A) integrate energy efficiency resources into
utility, State, and regional plans; and
``(B) adopt policies establishing cost-effective
energy efficiency as a priority resource.
``(17) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be charged
by any electric utility shall--
``(i) align utility incentives with the
delivery of cost-effective energy efficiency;
and
``(ii) promote energy efficiency
investments.
``(B) Policy options.--In complying with
subparagraph (A), each State regulatory authority and
each nonregulated utility shall consider--
``(i) removing the throughput incentive and
other regulatory and management disincentives
to energy efficiency;
``(ii) providing utility incentives for the
successful management of energy efficiency
programs;
``(iii) including the impact on adoption of
energy efficiency as 1 of the goals of retail
rate design, recognizing that energy efficiency
must be balanced with other objectives;
``(iv) adopting rate designs that encourage
energy efficiency for each customer class;
``(v) allowing timely recovery of energy
efficiency-related costs; and
``(vi) offering home energy audits,
offering demand response programs, publicizing
the financial and environmental benefits
associated with making home energy efficiency
improvements, and educating homeowners about
all existing Federal and State incentives,
including the availability of low-cost loans,
that make energy efficiency improvements more
affordable.''.
(b) Natural Gas Utilities.--Section 303(b) of the Public Utility
Regulatory Policies Act of 1978 (15 U.S.C. 3203(b)) is amended by
adding at the end the following:
``(5) Energy efficiency.--Each natural gas utility shall--
``(A) integrate energy efficiency resources into
the plans and planning processes of the natural gas
utility; and
``(B) adopt policies that establish energy
efficiency as a priority resource in the plans and
planning processes of the natural gas utility.
``(6) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be charged
by a natural gas utility shall align utility incentives
with the deployment of cost-effective energy
efficiency.
``(B) Policy options.--In complying with
subparagraph (A), each State regulatory authority and
each nonregulated utility shall consider--
``(i) separating fixed-cost revenue
recovery from the volume of transportation or
sales service provided to the customer;
``(ii) providing to utilities incentives
for the successful management of energy
efficiency programs, such as allowing utilities
to retain a portion of the cost-reducing
benefits accruing from the programs;
``(iii) promoting the impact on adoption of
energy efficiency as 1 of the goals of retail
rate design, recognizing that energy efficiency
must be balanced with other objectives; and
``(iv) adopting rate designs that encourage
energy efficiency for each customer class.
For purposes of applying the provisions of this
subtitle to this paragraph, any reference in this
subtitle to the date of enactment of this Act shall be
treated as a reference to the date of enactment of this
paragraph.''.
(c) Conforming Amendment.--Section 303(a) of the Public Utility
Regulatory Policies Act of 1978 U.S.C. 3203(a)) is amended by striking
``and (4)'' inserting ``(4), (5), and (6)''.
Subtitle E--Energy Efficiency and Conservation Block Grants
SEC. 541. DEFINITIONS.
In this subtitle:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State;
(B) an eligible unit of local government; and
(C) an Indian tribe.
(2) Eligible unit of local government.--The term ``eligible
unit of local government'' means--
(A) an eligible unit of local government-
alternative 1; and
(B) an eligible unit of local government-
alternative 2.
(3)(A) Eligible unit of local government-alternative 1.--
The term ``eligible unit of local government-alternative 1''
means--
(i) a city with a population--
(I) of at least 35,000; or
(II) that causes the city to be 1 of the 10
highest-populated cities of the State in which
the city is located; and
(ii) a county with a population--
(I) of at least 200,000; or
(II) that causes the county to be 1 of the
10 highest-populated counties of the State in
which the county is located.
(B) Eligible unit of local government-alternative 2.--The
term ``eligible unit of local government-alternative 2''
means--
(i) a city with a population of at least 50,000; or
(ii) a county with a population of at least
200,000.
(4) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(5) Program.--The term ``program'' means the Energy
Efficiency and Conservation Block Grant Program established
under section 542(a).
(6) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
SEC. 542. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM.
(a) Establishment.--The Secretary shall establish a program, to be
known as the ``Energy Efficiency and Conservation Block Grant
Program'', under which the Secretary shall provide grants to eligible
entities in accordance with this subtitle.
(b) Purpose.--The purpose of the program shall be to assist
eligible entities in implementing strategies--
(1) to reduce fossil fuel emissions created as a result of
activities within the jurisdictions of eligible entities in
manner that--
(A) is environmentally sustainable; and
(B) to the maximum extent practicable, maximizes
benefits for local and regional communities;
(2) to reduce the total energy use of the eligible
entities; and
(3) to improve energy efficiency in--
(A) the transportation sector;
(B) the building sector; and
(C) other appropriate sectors.
SEC. 543. ALLOCATION OF FUNDS.
(a) In General.--Of amounts made available to provide grants under
this subtitle for each fiscal year, the Secretary shall allocate--
(1) 68 percent to eligible units of local government in
accordance with subsection (b);
(2) 28 percent to States in accordance with subsection (c);
(3) 2 percent to Indian tribes in accordance with
subsection (d); and
(4) 2 percent for competitive grants under section 546.
(b) Eligible Units of Local Government.--Of amounts available for
distribution to eligible units of local government under subsection
(a)(1), the Secretary shall provide grants to eligible units of local
government under this section based on a formula established by the
Secretary according to--
(1) the populations served by the eligible units of local
government, according to the latest available decennial census;
and
(2) the daytime populations of the eligible units of local
government and other similar factors (such as square footage of
commercial, office, and industrial space), as determined by the
Secretary.
(c) States.--Of amounts available for distribution to States under
subsection (a)(2), the Secretary shall provide--
(1) not less than 1.25 percent to each State; and
(2) the remainder among the States, based on a formula to
be established by the Secretary that takes into account--
(A) the population of each State; and
(B) any other criteria that the Secretary
determines to be appropriate.
(d) Indian Tribes.--Of amounts available for distribution to Indian
tribes under subsection (a)(3), the Secretary shall establish a formula
for allocation of the amounts to Indian tribes, taking into account any
factors that the Secretary determines to be appropriate.
(e) Publication of Allocation Formulas.--Not later than 90 days
before the beginning of each fiscal year for which grants are provided
under this subtitle, the Secretary shall publish in the Federal
Register the formulas for allocation established under this section.
(f) State and Local Advisory Committee.--The Secretary shall
establish a State and local advisory committee to advise the Secretary
regarding administration, implementation, and evaluation of the
program.
SEC. 544. USE OF FUNDS.
An eligible entity may use a grant received under this subtitle to
carry out activities to achieve the purposes of the program,
including--
(1) development and implementation of an energy efficiency
and conservation strategy under section 545(b);
(2) retaining technical consultant services to assist the
eligible entity in the development of such a strategy,
including--
(A) formulation of energy efficiency, energy
conservation, and energy usage goals;
(B) identification of strategies to achieve those
goals--
(i) through efforts to increase energy
efficiency and reduce energy consumption; and
(ii) by encouraging behavioral changes
among the population served by the eligible
entity;
(C) development of methods to measure progress in
achieving the goals;
(D) development and publication of annual reports
to the population served by the eligible entity
describing--
(i) the strategies and goals; and
(ii) the progress made in achieving the
strategies and goals during the preceding
calendar year; and
(E) other services to assist in the implementation
of the energy efficiency and conservation strategy;
(3) conducting residential and commercial building energy
audits;
(4) establishment of financial incentive programs for
energy efficiency improvements;
(5) the provision of grants to nonprofit organizations and
governmental agencies for the purpose of performing energy
efficiency retrofits;
(6) development and implementation of energy efficiency and
conservation programs for buildings and facilities within the
jurisdiction of the eligible entity, including--
(A) design and operation of the programs;
(B) identifying the most effective methods for
achieving maximum participation and efficiency rates;
(C) public education;
(D) measurement and verification protocols; and
(E) identification of energy efficient
technologies;
(7) development and implementation of programs to conserve
energy used in transportation, including--
(A) use of flex time by employers;
(B) satellite work centers;
(C) development and promotion of zoning guidelines
or requirements that promote energy efficient
development;
(D) development of infrastructure, such as bike
lanes and pathways and pedestrian walkways;
(E) synchronization of traffic signals; and
(F) other measures that increase energy efficiency
and decrease energy consumption;
(8) development and implementation of building codes and
inspection services to promote building energy efficiency;
(9) application and implementation of energy distribution
technologies that significantly increase energy efficiency,
including--
(A) distributed resources; and
(B) district heating and cooling systems;
(10) activities to increase participation and efficiency
rates for material conservation programs, including source
reduction, recycling, and recycled content procurement programs
that lead to increases in energy efficiency;
(11) the purchase and implementation of technologies to
reduce, capture, and, to the maximum extent practicable, use
methane and other greenhouse gases generated by landfills or
similar sources;
(12) replacement of traffic signals and street lighting
with energy efficient lighting technologies, including--
(A) light emitting diodes; and
(B) any other technology of equal or greater energy
efficiency;
(13) development, implementation, and installation on or in
any government building of the eligible entity of onsite
renewable energy technology that generates electricity from
renewable resources, including--
(A) solar energy;
(B) wind energy;
(C) fuel cells; and
(D) biomass; and
(14) any other appropriate activity, as determined by the
Secretary, in consultation with--
(A) the Administrator of the Environmental
Protection Agency;
(B) the Secretary of Transportation; and
(C) the Secretary of Housing and Urban Development.
SEC. 545. REQUIREMENTS FOR ELIGIBLE ENTITIES.
(a) Construction Requirement.--
(1) In general.--To be eligible to receive a grant under
the program, each eligible applicant shall submit to the
Secretary a written assurance that all laborers and mechanics
employed by any contractor or subcontractor of the eligible
entity during any construction, alteration, or repair activity
funded, in whole or in part, by the grant shall be paid wages
at rates not less than the prevailing wages for similar
construction activities in the locality, as determined by the
Secretary of Labor, in accordance with sections 3141 through
3144, 3146, and 3147 of title 40, United States Code.
(2) Secretary of labor.--With respect to the labor
standards referred to in paragraph (1), the Secretary of Labor
shall have the authority and functions described in--
(A) Reorganization Plan Numbered 14 of 1950 (5
U.S.C. 903 note); and
(B) section 3145 of title 40, United States Code.
(b) Eligible Units of Local Government and Indian Tribes.--
(1) Proposed strategy.--
(A) In general.--Not later than 1 year after the
date on which an eligible unit of local government or
Indian tribe receives a grant under this subtitle, the
eligible unit of local government or Indian tribe shall
submit to the Secretary a proposed energy efficiency
and conservation strategy in accordance with this
paragraph.
(B) Inclusions.--The proposed strategy under
subparagraph (A) shall include--
(i) a description of the goals of the
eligible unit of local government or Indian
tribe, in accordance with the purposes of this
subtitle, for increased energy efficiency and
conservation in the jurisdiction of the
eligible unit of local government or Indian
tribe; and
(ii) a plan for the use of the grant to
assist the eligible unit of local government or
Indian tribe in achieving those goals, in
accordance with section 544.
(C) Requirements for eligible units of local
government.--In developing the strategy under
subparagraph (A), an eligible unit of local government
shall--
(i) take into account any plans for the use
of funds by adjacent eligible units of local
governments that receive grants under the
program; and
(ii) coordinate and share information with
the State in which the eligible unit of local
government is located regarding activities
carried out using the grant to maximize the
energy efficiency and conservation benefits
under this subtitle.
(2) Approval by secretary.--
(A) In general.--The Secretary shall approve or
disapprove a proposed strategy under paragraph (1) by
not later than 120 days after the date of submission of
the proposed strategy.
(B) Disapproval.--If the Secretary disapproves a
proposed strategy under subparagraph (A)--
(i) the Secretary shall provide to the
eligible unit of local government or Indian
tribe the reasons for the disapproval; and
(ii) the eligible unit of local government
or Indian tribe may revise and resubmit the
proposed strategy as many times as necessary
until the Secretary approves a proposed
strategy.
(C) Requirement.--The Secretary shall not provide
to an eligible unit of local government or Indian tribe
any grant under the program until a proposed strategy
of the eligible unit of local government or Indian
tribe is approved by the Secretary under this
paragraph.
(3) Limitations on use of funds.--Of amounts provided to an
eligible unit of local government or Indian tribe under the
program, an eligible unit of local government or Indian tribe
may use--
(A) for administrative expenses, excluding the cost
of meeting the reporting requirements of this subtitle,
an amount equal to the greater of--
(i) 10 percent; and
(ii) $75,000;
(B) for the establishment of revolving loan funds,
an amount equal to the greater of--
(i) 20 percent; and
(ii) $250,000; and
(C) for the provision of subgrants to
nongovernmental organizations for the purpose of
assisting in the implementation of the energy
efficiency and conservation strategy of the eligible
unit of local government or Indian tribe, an amount
equal to the greater of--
(i) 20 percent; and
(ii) $250,000.
(4) Annual report.--Not later than 2 years after the date
on which funds are initially provided to an eligible unit of
local government or Indian tribe under the program, and
annually thereafter, the eligible unit of local government or
Indian tribe shall submit to the Secretary a report
describing--
(A) the status of development and implementation of
the energy efficiency and conservation strategy of the
eligible unit of local government or Indian tribe; and
(B) as practicable, an assessment of energy
efficiency gains within the jurisdiction of the
eligible unit of local government or Indian tribe.
(c) States.--
(1) Distribution of funds.--
(A) In general.--A State that receives a grant
under the program shall use not less than 60 percent of
the amount received to provide subgrants to units of
local government in the State that are not eligible
units of local government.
(B) Deadline.--The State shall provide the
subgrants required under subparagraph (A) by not later
than 180 days after the date on which the Secretary
approves a proposed energy efficiency and conservation
strategy of the State under paragraph (3).
(2) Revision of conservation plan; proposed strategy.--Not
later than 120 days after the date of enactment of this Act,
each State shall--
(A) modify the State energy conservation plan of
the State under section 362 of the Energy Policy and
Conservation Act (42 U.S.C. 6322) to establish
additional goals for increased energy efficiency and
conservation in the State; and
(B) submit to the Secretary a proposed energy
efficiency and conservation strategy that--
(i) establishes a process for providing
subgrants as required under paragraph (1); and
(ii) includes a plan of the State for the
use of funds received under a the program to
assist the State in achieving the goals
established under subparagraph (A), in
accordance with sections 542(b) and 544.
(3) Approval by secretary.--
(A) In general.--The Secretary shall approve or
disapprove a proposed strategy under paragraph (2)(B)
by not later than 120 days after the date of submission
of the proposed strategy.
(B) Disapproval.--If the Secretary disapproves a
proposed strategy under subparagraph (A)--
(i) the Secretary shall provide to the
State the reasons for the disapproval; and
(ii) the State may revise and resubmit the
proposed strategy as many times as necessary
until the Secretary approves a proposed
strategy.
(C) Requirement.--The Secretary shall not provide
to a State any grant under the program until a proposed
strategy of the State is approved the Secretary under
this paragraph.
(4) Limitations on use of funds.--A State may use not more
than 10 percent of amounts provided under the program for
administrative expenses.
(5) Annual reports.--Each State that receives a grant under
the program shall submit to the Secretary an annual report that
describes--
(A) the status of development and implementation of
the energy efficiency and conservation strategy of the
State during the preceding calendar year;
(B) the status of the subgrant program of the State
under paragraph (1);
(C) the energy efficiency gains achieved through
the energy efficiency and conservation strategy of the
State during the preceding calendar year; and
(D) specific energy efficiency and conservation
goals of the State for subsequent calendar years.
SEC. 546. COMPETITIVE GRANTS.
(a) In General.--Of the total amount made available for each fiscal
year to carry out this subtitle, the Secretary shall use not less than
2 percent to provide grants under this section, on a competitive basis,
to--
(1) units of local government (including Indian tribes)
that are not eligible entities; and
(2) consortia of units of local government described in
paragraph (1).
(b) Applications.--To be eligible to receive a grant under this
section, a unit of local government or consortia shall submit to the
Secretary an application at such time, in such manner, and containing
such information as the Secretary may require, including a plan of the
unit of local government to carry out an activity described in section
544.
(c) Priority.--In providing grants under this section, the
Secretary shall give priority to units of local government--
(1) located in States with populations of less than
2,000,000; or
(2) that plan to carry out projects that would result in
significant energy efficiency improvements or reductions in
fossil fuel use.
SEC. 547. REVIEW AND EVALUATION.
(a) In General.--The Secretary may review and evaluate the
performance of any eligible entity that receives a grant under the
program, including by conducting an audit, as the Secretary determines
to be appropriate.
(b) Withholding of Funds.--The Secretary may withhold from an
eligible entity any portion of a grant to be provided to the eligible
entity under the program if the Secretary determines that the eligible
entity has failed to achieve compliance with--
(1) any applicable guideline or regulation of the Secretary
relating to the program, including the misuse or
misappropriation of funds provided under the program; or
(2) the energy efficiency and conservation strategy of the
eligible entity.
SEC. 548. FUNDING.
(a) Authorization of Appropriations.--
(1) Grants.--There is authorized to be appropriated to the
Secretary for the provision of grants under the program
$2,000,000,000 for each of fiscal years 2008 through 2012;
provided that 49 percent of the appropriated funds shall be
distributed using the definition of eligible unit of local
government-alternative 1 in section 541(3)(A) and 49 percent of
the appropriated funds shall be distributed using the
definition of eligible unit of local government-alternative 2
in section 541(3)(B).
(2) Administrative costs.--There are authorized to be
appropriated to the Secretary for administrative expenses of
the program--
(A) $20,000,000 for each of fiscal years 2008 and
2009;
(B) $25,000,000 for each of fiscal years 2010 and
2011; and
(C) $30,000,000 for fiscal year 2012.
(b) Maintenance of Funding.--The funding provided under this
section shall supplement (and not supplant) other Federal funding
provided under--
(1) a State energy conservation plan established under part
D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.); or
(2) the Weatherization Assistance Program for Low-Income
Persons established under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.).
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A--Solar Energy
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ``Solar Energy Research and
Advancement Act of 2007''.
SEC. 602. THERMAL ENERGY STORAGE RESEARCH AND DEVELOPMENT PROGRAM.
(a) Establishment.--The Secretary shall establish a program of
research and development to provide lower cost and more viable thermal
energy storage technologies to enable the shifting of electric power
loads on demand and extend the operating time of concentrating solar
power electric generating plants.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $5,000,000
for fiscal year 2008, $7,000,000 for fiscal year 2009, $9,000,000 for
fiscal year 2010, $10,000,000 for fiscal year 2011, and $12,000,000 for
fiscal year 2012.
SEC. 603. CONCENTRATING SOLAR POWER COMMERCIAL APPLICATION STUDIES.
(a) Integration.--The Secretary shall conduct a study on methods to
integrate concentrating solar power and utility-scale photovoltaic
systems into regional electricity transmission systems, and to identify
new transmission or transmission upgrades needed to bring electricity
from high concentrating solar power resource areas to growing electric
power load centers throughout the United States. The study shall
analyze and assess cost-effective approaches for management and large-
scale integration of concentrating solar power and utility-scale
photovoltaic systems into regional electric transmission grids to
improve electric reliability, to efficiently manage load, and to reduce
demand on the natural gas transmission system for electric power. The
Secretary shall submit a report to Congress on the results of this
study not later than 12 months after the date of enactment of this Act.
(b) Water Consumption.--Not later than 6 months after the date of
the enactment of this Act, the Secretary of Energy shall transmit to
Congress a report on the results of a study on methods to reduce the
amount of water consumed by concentrating solar power systems.
SEC. 604. SOLAR ENERGY CURRICULUM DEVELOPMENT AND CERTIFICATION GRANTS.
(a) Establishment.--The Secretary shall establish in the Office of
Solar Energy Technologies a competitive grant program to create and
strengthen solar industry workforce training and internship programs in
installation, operation, and maintenance of solar energy products. The
goal of this program is to ensure a supply of well-trained individuals
to support the expansion of the solar energy industry.
(b) Authorized Activities.--Grant funds may be used to support the
following activities:
(1) Creation and development of a solar energy curriculum
appropriate for the local educational, entrepreneurial, and
environmental conditions, including curriculum for community
colleges.
(2) Support of certification programs for individual solar
energy system installers, instructors, and training programs.
(3) Internship programs that provide hands-on participation
by students in commercial applications.
(4) Activities required to obtain certification of training
programs and facilities by an industry-accepted quality-control
certification program.
(5) Incorporation of solar-specific learning modules into
traditional occupational training and internship programs for
construction-related trades.
(6) The purchase of equipment necessary to carry out
activities under this section.
(7) Support of programs that provide guidance and updates
to solar energy curriculum instructors.
(c) Administration of Grants.--Grants may be awarded under this
section for up to 3 years. The Secretary shall award grants to ensure
sufficient geographic distribution of training programs nationally.
Grants shall only be awarded for programs certified by an industry-
accepted quality-control certification institution, or for new and
growing programs with a credible path to certification. Due
consideration shall be given to women, underrepresented minorities, and
persons with disabilities.
(d) Report.--The Secretary shall make public, on the website of the
Department or upon request, information on the name and institution for
all grants awarded under this section, including a brief description of
the project as well as the grant award amount.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $10,000,000
for each of the fiscal years 2008 through 2012.
SEC. 605. DAYLIGHTING SYSTEMS AND DIRECT SOLAR LIGHT PIPE TECHNOLOGY.
(a) Establishment.--The Secretary shall establish a program of
research and development to provide assistance in the demonstration and
commercial application of direct solar renewable energy sources to
provide alternatives to traditional power generation for lighting and
illumination, including light pipe technology, and to promote greater
energy conservation and improved efficiency. All direct solar renewable
energy devices supported under this program shall have the capability
to provide measurable data on the amount of kilowatt-hours saved over
the traditionally powered light sources they have replaced.
(b) Reporting.--The Secretary shall transmit to Congress an annual
report assessing the measurable data derived from each project in the
direct solar renewable energy sources program and the energy savings
resulting from its use.
(c) Definitions.--For purposes of this section--
(1) the term ``direct solar renewable energy'' means energy
from a device that converts sunlight into useable light within
a building, tunnel, or other enclosed structure, replacing
artificial light generated by a light fixture and doing so
without the conversion of the sunlight into another form of
energy; and
(2) the term ``light pipe'' means a device designed to
transport visible solar radiation from its collection point to
the interior of a building while excluding interior heat gain
in the nonheating season.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $3,500,000
for each of the fiscal years 2008 through 2012.
SEC. 606. SOLAR AIR CONDITIONING RESEARCH AND DEVELOPMENT PROGRAM.
(a) Establishment.--The Secretary shall establish a research,
development, and demonstration program to promote less costly and more
reliable decentralized distributed solar-powered air conditioning for
individuals and businesses.
(b) Authorized Activities.--Grants made available under this
section may be used to support the following activities:
(1) Advancing solar thermal collectors, including
concentrating solar thermal and electric systems, flat plate
and evacuated tube collector performance.
(2) Achieving technical and economic integration of solar-
powered distributed air-conditioning systems with existing hot
water and storage systems for residential applications.
(3) Designing and demonstrating mass manufacturing
capability to reduce costs of modular standardized solar-
powered distributed air conditioning systems and components.
(4) Improving the efficiency of solar-powered distributed
air-conditioning to increase the effectiveness of solar-powered
absorption chillers, solar-driven compressors and condensors,
and cost-effective precooling approaches.
(5) Researching and comparing performance of solar-powered
distributed air conditioning systems in different regions of
the country, including potential integration with other onsite
systems, such as solar, biogas, geothermal heat pumps, and
propane assist or combined propane fuel cells, with a goal to
develop site-specific energy production and management systems
that ease fuel and peak utility loading.
(c) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42
U.S.C. 16352) shall apply to a project carried out under this section.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $2,500,000
for each of the fiscal years 2008 through 2012.
SEC. 607. PHOTOVOLTAIC DEMONSTRATION PROGRAM.
(a) In General.--The Secretary shall establish a program of grants
to States to demonstrate advanced photovoltaic technology.
(b) Requirements.--
(1) Ability to meet requirements.--To receive funding under
the program under this section, a State must submit a proposal
that demonstrates, to the satisfaction of the Secretary, that
the State will meet the requirements of subsection (f).
(2) Compliance with requirements.--If a State has received
funding under this section for the preceding year, the State
must demonstrate, to the satisfaction of the Secretary, that it
complied with the requirements of subsection (f) in carrying
out the program during that preceding year, and that it will do
so in the future, before it can receive further funding under
this section.
(c) Competition.--The Secretary shall award grants on a competitive
basis to the States with the proposals the Secretary considers most
likely to encourage the widespread adoption of photovoltaic
technologies. The Secretary shall take into consideration the
geographic distribution of awards.
(d) Proposals.--Not later than 6 months after the date of enactment
of this Act, and in each subsequent fiscal year for the life of the
program, the Secretary shall solicit proposals from the States to
participate in the program under this section.
(e) Competitive Criteria.--In awarding funds in a competitive
allocation under subsection (c), the Secretary shall consider--
(1) the likelihood of a proposal to encourage the
demonstration of, or lower the costs of, advanced photovoltaic
technologies; and
(2) the extent to which a proposal is likely to--
(A) maximize the amount of photovoltaics
demonstrated;
(B) maximize the proportion of non-Federal cost
share; and
(C) limit State administrative costs.
(f) State Program.--A program operated by a State with funding
under this section shall provide competitive awards for the
demonstration of advanced photo-voltaic technologies. Each State
program shall--
(1) require a contribution of at least 60 percent per award
from non-Federal sources, which may include any combination of
State, local, and private funds, except that at least 10
percent of the funding must be supplied by the State;
(2) endeavor to fund recipients in the commercial,
industrial, institutional, governmental, and residential
sectors;
(3) limit State administrative costs to no more than 10
percent of the grant;
(4) report annually to the Secretary on--
(A) the amount of funds disbursed;
(B) the amount of photovoltaics purchased; and
(C) the results of the monitoring under paragraph
(5);
(5) provide for measurement and verification of the output
of a representative sample of the photovoltaics systems
demonstrated throughout the average working life of the
systems, or at least 20 years; and
(6) require that applicant buildings must have received an
independent energy efficiency audit during the 6-month period
preceding the filing of the application.
(g) Unexpended Funds.--If a State fails to expend any funds
received under this section within 3 years of receipt, such remaining
funds shall be returned to the Treasury.
(h) Reports.--The Secretary shall report to Congress 5 years after
funds are first distributed to the States under this section--
(1) the amount of photovoltaics demonstrated;
(2) the number of projects undertaken;
(3) the administrative costs of the program;
(4) the results of the monitoring under subsection (f)(5);
and
(5) the total amount of funds distributed, including a
breakdown by State.
(i) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for the purposes of carrying out this
section--
(1) $15,000,000 for fiscal year 2008;
(2) $30,000,000 for fiscal year 2009;
(3) $45,000,000 for fiscal year 2010;
(4) $60,000,000 for fiscal year 2011; and
(5) $70,000,000 for fiscal year 2012.
Subtitle B--Geothermal Energy
SEC. 611. SHORT TITLE.
This subtitle may be cited as the ``Advanced Geothermal Energy
Research and Development Act of 2007''.
SEC. 612. DEFINITIONS.
For purposes of this subtitle:
(1) Engineered.--When referring to enhanced geothermal
systems, the term ``engineered'' means subjected to
intervention, including intervention to address one or more of
the following issues:
(A) Lack of effective permeability or porosity or
open fracture connectivity within the reservoir.
(B) Insufficient contained geofluid in the
reservoir.
(C) A low average geothermal gradient, which
necessitates deeper drilling.
(2) Enhanced geothermal systems.--The term ``enhanced
geothermal systems'' means geothermal reservoir systems that
are engineered, as opposed to occurring naturally.
(3) Geofluid.--The term ``geofluid'' means any fluid used
to extract thermal energy from the Earth which is transported
to the surface for direct use or electric power generation,
except that such term shall not include oil or natural gas.
(4) Geopressured resources.--The term ``geopressured
resources'' mean geothermal deposits found in sedimentary rocks
under higher than normal pressure and saturated with gas or
methane.
(5) Geothermal.--The term ``geothermal'' refers to heat
energy stored in the Earth's crust that can be accessed for
direct use or electric power generation.
(6) Hydrothermal.--The term ``hydrothermal'' refers to
naturally occurring subsurface reservoirs of hot water or
steam.
(7) Systems approach.--The term ``systems approach'' means
an approach to solving problems or designing systems that
attempts to optimize the performance of the overall system,
rather than a particular component of the system.
SEC. 613. HYDROTHERMAL RESEARCH AND DEVELOPMENT.
(a) In General.--The Secretary shall support programs of research,
development, demonstration, and commercial application to expand the
use of geothermal energy production from hydrothermal systems,
including the programs described in subsection (b).
(b) Programs.--
(1) Advanced hydrothermal resource tools.--The Secretary,
in consultation with other appropriate agencies, shall support
a program to develop advanced geophysical, geochemical, and
geologic tools to assist in locating hidden hydrothermal
resources, and to increase the reliability of site
characterization before, during, and after initial drilling.
The program shall develop new prospecting techniques to assist
in prioritization of targets for characterization. The program
shall include a field component.
(2) Industry coupled exploratory drilling.--The Secretary
shall support a program of cost-shared field demonstration
programs, to be pursued, simultaneously and independently, in
collaboration with industry partners, for the demonstration of
advanced technologies and techniques of siting and exploratory
drilling for undiscovered resources in a variety of geologic
settings. The program shall include incentives to encourage the
use of advanced technologies and techniques.
SEC. 614. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.
(a) Subsurface Components and Systems.--The Secretary shall support
a program of research, development, demonstration, and commercial
application of components and systems capable of withstanding extreme
geothermal environments and necessary to cost-effectively develop,
produce, and monitor geothermal reservoirs and produce geothermal
energy. These components and systems shall include advanced casing
systems (expandable tubular casing, low-clearance casing designs, and
others), high-temperature cements, high-temperature submersible pumps,
and high-temperature packers, as well as technologies for under-
reaming, multilateral completions, high-temperature and high-pressure
logging, logging while drilling, deep fracture stimulation, and
reservoir system diagnostics.
(b) Reservoir Performance Modeling.--The Secretary shall support a
program of research, development, demonstration, and commercial
application of models of geothermal reservoir performance, with an
emphasis on accurately modeling performance over time. Models shall be
developed to assist both in the development of geothermal reservoirs
and to more accurately account for stress-related effects in stimulated
hydrothermal and enhanced geothermal systems production environments.
(c) Environmental Impacts.--The Secretary shall--
(1) support a program of research, development,
demonstration, and commercial application of technologies and
practices designed to mitigate or preclude potential adverse
environmental impacts of geothermal energy development,
production or use, and seek to ensure that geothermal energy
development is consistent with the highest practicable
standards of environmental stewardship;
(2) in conjunction with the Assistant Administrator for
Research and Development at the Environmental Protection
Agency, support a research program to identify potential
environmental impacts of geothermal energy development,
production, and use, and ensure that the program described in
paragraph (1) addresses such impacts, including effects on
groundwater and local hydrology; and
(3) support a program of research to compare the potential
environmental impacts identified as part of the development,
production, and use of geothermal energy with the potential
emission reductions of greenhouse gases gained by geothermal
energy development, production, and use.
SEC. 615. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.
(a) In General.--The Secretary shall support a program of research,
development, demonstration, and commercial application for enhanced
geothermal systems, including the programs described in subsection (b).
(b) Programs.--
(1) Enhanced geothermal systems technologies.--The
Secretary shall support a program of research, development,
demonstration, and commercial application of the technologies
and knowledge necessary for enhanced geothermal systems to
advance to a state of commercial readiness, including advances
in--
(A) reservoir stimulation;
(B) reservoir characterization, monitoring, and
modeling;
(C) stress mapping;
(D) tracer development;
(E) three-dimensional tomography; and
(F) understanding seismic effects of reservoir
engineering and stimulation.
(2) Enhanced geothermal systems reservoir stimulation.--
(A) Program.--In collaboration with industry
partners, the Secretary shall support a program of
research, development, and demonstration of enhanced
geothermal systems reservoir stimulation technologies
and techniques. A minimum of 4 sites shall be selected
in locations that show particular promise for enhanced
geothermal systems development. Each site shall--
(i) represent a different class of
subsurface geologic environments; and
(ii) take advantage of an existing site
where subsurface characterization has been
conducted or existing drill holes can be
utilized, if possible.
(B) Consideration of existing site.--The Desert
Peak, Nevada, site, where a Department of Energy and
industry cooperative enhanced geothermal systems
project is already underway, may be considered for
inclusion among the sites selected under subparagraph
(A).
SEC. 616. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS AND
RECOVERY AND PRODUCTION OF GEOPRESSURED GAS RESOURCES.
(a) In General.--The Secretary shall establish a program of
research, development, demonstration, and commercial application to
support development of geothermal energy production from oil and gas
fields and production and recovery of energy, including electricity,
from geopressured resources. In addition, the Secretary shall conduct
such supporting activities including research, resource
characterization, and technology development as necessary.
(b) Geothermal Energy Production From Oil and Gas Fields.--The
Secretary shall implement a grant program in support of geothermal
energy production from oil and gas fields. The program shall include
grants for a total of not less than three demonstration projects of the
use of geothermal techniques such as advanced organic rankine cycle
systems at marginal, unproductive, and productive oil and gas wells.
The Secretary shall, to the extent practicable and in the public
interest, make awards that--
(1) include not less than five oil or gas well sites per
project award;
(2) use a range of oil or gas well hot water source
temperatures from 150 degrees Fahrenheit to 300 degrees
Fahrenheit;
(3) cover a range of sizes up to one megawatt;
(4) are located at a range of sites;
(5) can be replicated at a wide range of sites;
(6) facilitate identification of optimum techniques among
competing alternatives;
(7) include business commercialization plans that have the
potential for production of equipment at high volumes and
operation and support at a large number of sites; and
(8) satisfy other criteria that the Secretary determines
are necessary to carry out the program and collect necessary
data and information.
The Secretary shall give preference to assessments that address
multiple elements contained in paragraphs (1) through (8).
(c) Grant Awards.--Each grant award for demonstration of geothermal
technology such as advanced organic rankine cycle systems at oil and
gas wells made by the Secretary under subsection (b) shall include--
(1) necessary and appropriate site engineering study;
(2) detailed economic assessment of site specific
conditions;
(3) appropriate feasibility studies to determine whether
the demonstration can be replicated;
(4) design or adaptation of existing technology for site
specific circumstances or conditions;
(5) installation of equipment, service, and support;
(6) operation for a minimum of one year and monitoring for
the duration of the demonstration; and
(7) validation of technical and economic assumptions and
documentation of lessons learned.
(d) Geopressured Gas Resource Recovery and Production.--(1) The
Secretary shall implement a program to support the research,
development, demonstration, and commercial application of cost-
effective techniques to produce energy from geopressured resources.
(2) The Secretary shall solicit preliminary engineering designs for
geopressured resources production and recovery facilities.
(3) Based upon a review of the preliminary designs, the Secretary
shall award grants, which may be cost-shared, to support the detailed
development and completion of engineering, architectural and technical
plans needed to support construction of new designs.
(4) Based upon a review of the final design plans above, the
Secretary shall award cost-shared development and construction grants
for demonstration geopressured production facilities that show
potential for economic recovery of the heat, kinetic energy and gas
resources from geopressured resources.
(e) Competitive Grant Selection.--Not less than 90 days after the
date of the enactment of this Act, the Secretary shall conduct a
national solicitation for applications for grants under the programs
outlined in subsections (b) and (d). Grant recipients shall be selected
on a competitive basis based on criteria in the respective subsection.
(f) Well Drilling.--No funds may be used under this section for the
purpose of drilling new wells.
SEC. 617. COST SHARING AND PROPOSAL EVALUATION.
(a) Federal Share.--The Federal share of costs of projects funded
under this subtitle shall be in accordance with section 988 of the
Energy Policy Act of 2005.
(b) Organization and Administration of Programs.--Programs under
this subtitle shall incorporate the following elements:
(1) The Secretary shall coordinate with, and where
appropriate may provide funds in furtherance of the purposes of
this subtitle to, other Department of Energy research and
development programs focused on drilling, subsurface
characterization, and other related technologies.
(2) In evaluating proposals, the Secretary shall give
priority to proposals that demonstrate clear evidence of
employing a systems approach.
(3) The Secretary shall coordinate and consult with the
appropriate Federal land management agencies in selecting
proposals for funding under this subtitle.
(4) Nothing in this subtitle shall be construed to alter or
affect any law relating to the management or protection of
Federal lands.
SEC. 618. CENTER FOR GEOTHERMAL TECHNOLOGY TRANSFER.
(a) In General.--The Secretary shall award to an institution of
higher education (or consortium thereof) a grant to establish a Center
for Geothermal Technology Transfer (referred to in this section as the
``Center'').
(b) Duties.--The Center shall--
(1) serve as an information clearinghouse for the
geothermal industry by collecting and disseminating information
on best practices in all areas relating to developing and
utilizing geothermal resources;
(2) make data collected by the Center available to the
public; and
(3) seek opportunities to coordinate efforts and share
information with domestic and international partners engaged in
research and development of geothermal systems and related
technology.
(c) Selection Criteria.--In awarding the grant under subsection (a)
the Secretary shall select an institution of higher education (or
consortium thereof) best suited to provide national leadership on
geothermal related issues and perform the duties enumerated under
subsection (b).
(d) Duration of Grant.--A grant made under subsection (a)--
(1) shall be for an initial period of 5 years; and
(2) may be renewed for additional 5-year periods on the
basis of--
(A) satisfactory performance in meeting the duties
outlined in subsection (b); and
(B) any other requirements specified by the
Secretary.
SEC. 619. GEOPOWERING AMERICA.
The Secretary shall expand the Department of Energy's GeoPowering
the West program to extend its geothermal technology transfer
activities throughout the entire United States. The program shall be
renamed ``GeoPowering America''. The program shall continue to be based
in the Department of Energy office in Golden, Colorado.
SEC. 620. EDUCATIONAL PILOT PROGRAM.
The Secretary shall seek to award grant funding, on a competitive
basis, to an institution of higher education for a geothermal-powered
energy generation facility on the institution's campus. The purpose of
the facility shall be to provide electricity and space heating. The
facility shall also serve as an educational resource to students in
relevant fields of study, and the data generated by the facility shall
be available to students and the general public. The total funding
award shall not exceed $2,000,000.
SEC. 621. REPORTS.
(a) Reports on Advanced Uses of Geothermal Energy.--Not later than
3 years and 5 years after the date of enactment of this Act, the
Secretary shall report to the Committee on Science and Technology of
the House of Representatives and the Committee on Energy and Natural
Resources of the Senate on advanced concepts and technologies to
maximize the geothermal resource potential of the United States. The
reports shall include--
(1) the use of carbon dioxide as an alternative geofluid
with potential carbon sequestration benefits;
(2) mineral recovery from geofluids;
(3) use of geothermal energy to produce hydrogen;
(4) use of geothermal energy to produce biofuels;
(5) use of geothermal heat for oil recovery from oil shales
and tar sands; and
(6) other advanced geothermal technologies, including
advanced drilling technologies and advanced power conversion
technologies.
(b) Progress Reports.--(1) Not later than 36 months after the date
of enactment of this Act, the Secretary shall submit to the Committee
on Science and Technology of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate an interim
report describing the progress made under this subtitle. At the end of
60 months, the Secretary shall submit to Congress a report on the
results of projects undertaken under this subtitle and other such
information the Secretary considers appropriate.
(2) As necessary, the Secretary shall report to the Congress on any
legal, regulatory, or other barriers encountered that hinder economic
development of these resources, and provide recommendations on
legislative or other actions needed to address such impediments.
SEC. 622. APPLICABILITY OF OTHER LAWS.
Nothing in this subtitle shall be construed as waiving, modifying,
or superseding the applicability of any requirement under any
environmental or other Federal or State law. To the extent that
activities authorized in this subtitle take place in coastal and ocean
areas, the Secretary shall consult with the Secretary of Commerce,
acting through the Under Secretary of Commerce for Oceans and
Atmosphere, regarding the potential marine environmental impacts and
measures to address such impacts.
SEC. 623. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to carry
out this subtitle $90,000,000 for each of the fiscal years 2008 through
2012, of which $10,000,000 for each fiscal year shall be for carrying
out section 616. There are also authorized to be appropriated to the
Secretary for the Intermountain West Geothermal Consortium $5,000,000
for each of the fiscal years 2008 through 2012.
SEC. 624. INTERNATIONAL GEOTHERMAL ENERGY DEVELOPMENT.
(a) In General.--The Secretary of Energy, in coordination with
other appropriate Federal and multilateral agencies (including the
United States Agency for International Development) shall support
international collaborative efforts to promote the research,
development, and deployment of geothermal technologies used to develop
hydrothermal and enhanced geothermal system resources, including as
partners (as appropriate) the African Rift Geothermal Development
Facility, Australia, China, France, the Republic of Iceland, India,
Japan, and the United Kingdom.
(b) United States Trade and Development Agency.--The Director of
the United States Trade and Development Agency may--
(1) encourage participation by United States firms in
actions taken to carry out subsection (a); and
(2) provide grants and other financial support for
feasibility and resource assessment studies conducted in, or
intended to benefit, less developed countries.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2008 through 2012.
SEC. 625. HIGH COST REGION GEOTHERMAL ENERGY GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a utility;
(B) an electric cooperative;
(C) a State;
(D) a political subdivision of a State;
(E) an Indian tribe; or
(F) a Native corporation.
(2) High-cost region.--The term ``high-cost region'' means
a region in which the average cost of electrical power exceeds
150 percent of the national average retail cost, as determined
by the Secretary.
(b) Program.--The Secretary shall use amounts made available to
carry out this section to make grants to eligible entities for
activities described in subsection (c).
(c) Eligible Activities.--An eligible entity may use grant funds
under this section, with respect to a geothermal energy project in a
high-cost region, only--
(1) to conduct a feasibility study, including a study of
exploration, geochemical testing, geomagnetic surveys, geologic
information gathering, baseline environmental studies, well
drilling, resource characterization, permitting, and economic
analysis;
(2) for design and engineering costs, relating to the
project; and
(3) to demonstrate and promote commercial application of
technologies related to geothermal energy as part of the
project.
(d) Cost Sharing.--The cost-sharing requirements of section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to any
project carried out under this section.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
SEC. 631. SHORT TITLE.
This subtitle may be cited as the ``Marine and Hydrokinetic
Renewable Energy Research and Development Act''.
SEC. 632. DEFINITION.
For purposes of this subtitle, the term ``marine and hydrokinetic
renewable energy'' means electrical energy from--:
(1) waves, tides, and currents in oceans, estuaries, and
tidal areas;
(2) free flowing water in rivers, lakes, and streams;
(3) free flowing water in man-made channels; and
(4) differentials in ocean temperature (ocean thermal
energy conversion).
The term ``marine and hydrokinetic renewable energy'' does not include
energy from any source that uses a dam, diversionary structure, or
impoundment for electric power purposes.
SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH AND
DEVELOPMENT.
(a) In General.--The Secretary, in consultation with the Secretary
of the Interior and the Secretary of Commerce, acting through the Under
Secretary of Commerce for Oceans and Atmosphere, shall establish a
program of research, development, demonstration, and commercial
application to expand marine and hydrokinetic renewable energy
production, including programs to--
(1) study and compare existing marine and hydrokinetic
renewable energy technologies;
(2) research, develop, and demonstrate marine and
hydrokinetic renewable energy systems and technologies;
(3) reduce the manufacturing and operation costs of marine
and hydrokinetic renewable energy technologies;
(4) investigate efficient and reliable integration with the
utility grid and intermittency issues;
(5) advance wave forecasting technologies;
(6) conduct experimental and numerical modeling for
optimization of marine energy conversion devices and arrays;
(7) increase the reliability and survivability of marine
and hydrokinetic renewable energy technologies, including
development of corrosive-resistant materials;
(8) identify, in conjunction with the Secretary of
Commerce, acting through the Under Secretary of Commerce for
Oceans and Atmosphere, and other Federal agencies as
appropriate, the potential environmental impacts, including
potential impacts on fisheries and other marine resources, of
marine and hydrokinetic renewable energy technologies, measures
to prevent adverse impacts, and technologies and other means
available for monitoring and determining environmental impacts;
(9) identify, in conjunction with the Secretary of the
Department in which the United States Coast Guard is operating,
acting through the Commandant of the United States Coast Guard,
the potential navigational impacts of marine and hydrokinetic
renewable energy technologies and measures to prevent adverse
impacts on navigation;
(10) develop power measurement standards for marine and
hydrokinetic renewable energy;
(11) develop identification standards for marine and
hydrokinetic renewable energy devices;
(12) address standards development, demonstration, and
technology transfer for advanced systems engineering and system
integration methods to identify critical interfaces;
(13) identifying opportunities for cross fertilization and
development of economies of scale between other renewable
sources and marine and hydrokinetic renewable energy sources;
and
(14) providing public information and opportunity for
public comment concerning all technologies.
(b) Report.--Not later than 18 months after the date of enactment
of this Act, the Secretary, in conjunction with the Secretary of
Commerce, acting through the Undersecretary of Commerce for Oceans and
Atmosphere, and the Secretary of the Interior, shall provide to the
Congress a report that addresses--
(1) the potential environmental impacts, including impacts
to fisheries and marine resources, of marine and hydrokinetic
renewable energy technologies;
(2) options to prevent adverse environmental impacts;
(3) the potential role of monitoring and adaptive
management in identifying and addressing any adverse
environmental impacts; and
(4) the necessary components of such an adaptive management
program.
SEC. 634. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION CENTERS.
(a) Centers.--The Secretary shall award grants to institutions of
higher education (or consortia thereof) for the establishment of 1 or
more National Marine Renewable Energy Research, Development, and
Demonstration Centers. In selecting locations for Centers, the
Secretary shall consider sites that meet one of the following criteria:
(1) Hosts an existing marine renewable energy research and
development program in coordination with an engineering program
at an institution of higher education.
(2) Has proven expertise to support environmental and
policy-related issues associated with harnessing of energy in
the marine environment.
(3) Has access to and utilizes the marine resources in the
Gulf of Mexico, the Atlantic Ocean, or the Pacific Ocean.
The Secretary may give special consideration to historically black
colleges and universities and land grant universities that also meet
one of these criteria. In establishing criteria for the selection of
the Centers, the Secretary shall consult with the Secretary of
Commerce, acting through the Under Secretary of Commerce for Oceans and
Atmosphere, on the criteria related to ocean waves, tides, and currents
including those for advancing wave forecasting technologies, ocean
temperature differences, and studying the compatibility of marine
renewable energy technologies and systems with the environment,
fisheries, and other marine resources.
(b) Purposes.--The Centers shall advance research, development,
demonstration, and commercial application of marine renewable energy,
and shall serve as an information clearinghouse for the marine
renewable energy industry, collecting and disseminating information on
best practices in all areas related to developing and managing enhanced
marine renewable energy systems resources.
(c) Demonstration of Need.--When applying for a grant under this
section, an applicant shall include a description of why Federal
support is necessary for the Center, including evidence that the
research of the Center will not be conducted in the absence of Federal
support.
SEC. 635. APPLICABILITY OF OTHER LAWS.
Nothing in this subtitle shall be construed as waiving, modifying,
or superseding the applicability of any requirement under any
environmental or other Federal or State law.
SEC. 636. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to carry
out this subtitle $50,000,000 for each of the fiscal years 2008 through
2012, except that no funds shall be appropriated under this section for
activities that are receiving funds under section 931(a)(2)(E)(i) of
the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(E)(i)).
Subtitle D--Energy Storage for Transportation and Electric Power
SEC. 641. ENERGY STORAGE COMPETITIVENESS.
(a) Short Title.--This section may be cited as the ``United States
Energy Storage Competitiveness Act of 2007''.
(b) Definitions.--In this section:
(1) Council.--The term ``Council'' means the Energy Storage
Advisory Council established under subsection (e).
(2) Compressed air energy storage.--The term ``compressed
air energy storage'' means, in the case of an electricity grid
application, the storage of energy through the compression of
air.
(3) Electric drive vehicle.--The term ``electric drive
vehicle'' means--
(A) a vehicle that uses an electric motor for all
or part of the motive power of the vehicle, including
battery electric, hybrid electric, plug-in hybrid
electric, fuel cell, and plug-in fuel cell vehicles and
rail transportation vehicles; or
(B) mobile equipment that uses an electric motor to
replace an internal combustion engine for all or part
of the work of the equipment.
(4) Islanding.--The term ``islanding'' means a distributed
generator or energy storage device continuing to power a
location in the absence of electric power from the primary
source.
(5) Flywheel.--The term ``flywheel'' means, in the case of
an electricity grid application, a device used to store
rotational kinetic energy.
(6) Microgrid.--The term ``microgrid'' means an integrated
energy system consisting of interconnected loads and
distributed energy resources (including generators and energy
storage devices), which as an integrated system can operate in
parallel with the utility grid or in an intentional islanding
mode.
(7) Self-healing grid.--The term ``self-healing grid''
means a grid that is capable of automatically anticipating and
responding to power system disturbances (including the
isolation of failed sections and components), while optimizing
the performance and service of the grid to customers.
(8) Spinning reserve services.--The term ``spinning reserve
services'' means a quantity of electric generating capacity in
excess of the quantity needed to meet peak electric demand.
(9) Ultracapacitor.--The term ``ultracapacitor'' means an
energy storage device that has a power density comparable to a
conventional capacitor but is capable of exceeding the energy
density of a conventional capacitor by several orders of
magnitude.
(c) Program.--The Secretary shall carry out a research,
development, and demonstration program to support the ability of the
United States to remain globally competitive in energy storage systems
for electric drive vehicles, stationary applications, and electricity
transmission and distribution.
(d) Coordination.--In carrying out the activities of this section,
the Secretary shall coordinate relevant efforts with appropriate
Federal agencies, including the Department of Transportation.
(e) Energy Storage Advisory Council.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Secretary shall establish an
Energy Storage Advisory Council.
(2) Composition.--
(A) In general.--Subject to subparagraph (B), the
Council shall consist of not less than 15 individuals
appointed by the Secretary, based on recommendations of
the National Academy of Sciences.
(B) Energy storage industry.--The Council shall
consist primarily of representatives of the energy
storage industry of the United States.
(C) Chairperson.--The Secretary shall select a
Chairperson for the Council from among the members
appointed under subparagraph (A).
(3) Meetings.--
(A) In general.--The Council shall meet not less
than once a year.
(B) Federal advisory committee act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall apply to a
meeting of the Council.
(4) Plans.--No later than 1 year after the date of
enactment of this Act and every 5 years thereafter, the
Council, in conjunction with the Secretary, shall develop a 5-
year plan for integrating basic and applied research so that
the United States retains a globally competitive domestic
energy storage industry for electric drive vehicles, stationary
applications, and electricity transmission and distribution.
(5) Review.--The Council shall--
(A) assess, every 2 years, the performance of the
Department in meeting the goals of the plans developed
under paragraph (4); and
(B) make specific recommendations to the Secretary
on programs or activities that should be established or
terminated to meet those goals.
(f) Basic Research Program.--
(1) Basic research.--The Secretary shall conduct a basic
research program on energy storage systems to support electric
drive vehicles, stationary applications, and electricity
transmission and distribution, including--
(A) materials design;
(B) materials synthesis and characterization;
(C) electrode-active materials, including
electrolytes and bioelectrolytes;
(D) surface and interface dynamics;
(E) modeling and simulation; and
(F) thermal behavior and life degradation
mechanisms.
(2) Nanoscience centers.--The Secretary, in cooperation
with the Council, shall coordinate the activities of the
nanoscience centers of the Department to help the energy
storage research centers of the Department maintain a globally
competitive posture in energy storage systems for electric
drive vehicles, stationary applications, and electricity
transmission and distribution.
(3) Funding.--For activities carried out under this
subsection, in addition to funding activities at National
Laboratories, the Secretary shall award funds to, and
coordinate activities with, a range of stakeholders including
the public, private, and academic sectors.
(g) Applied Research Program.--
(1) In general.--The Secretary shall conduct an applied
research program on energy storage systems to support electric
drive vehicles, stationary applications, and electricity
transmission and distribution technologies, including--
(A) ultracapacitors;
(B) flywheels;
(C) batteries and battery systems (including flow
batteries);
(D) compressed air energy systems;
(E) power conditioning electronics;
(F) manufacturing technologies for energy storage
systems;
(G) thermal management systems; and
(H) hydrogen as an energy storage medium.
(2) Funding.--For activities carried out under this
subsection, in addition to funding activities at National
Laboratories, the Secretary shall provide funds to, and
coordinate activities with, a range of stakeholders, including
the public, private, and academic sectors.
(h) Energy Storage Research Centers.--
(1) In general.--The Secretary shall establish, through
competitive bids, not more than 4 energy storage research
centers to translate basic research into applied technologies
to advance the capability of the United States to maintain a
globally competitive posture in energy storage systems for
electric drive vehicles, stationary applications, and
electricity transmission and distribution.
(2) Program management.--The centers shall be managed by
the Under Secretary for Science of the Department.
(3) Participation agreements.--As a condition of
participating in a center, a participant shall enter into a
participation agreement with the center that requires that
activities conducted by the participant for the center promote
the goal of enabling the United States to compete successfully
in global energy storage markets.
(4) Plans.--A center shall conduct activities that promote
the achievement of the goals of the plans of the Council under
subsection (e)(4).
(5) National laboratories.--A national laboratory (as
defined in section 2 of the Energy Policy Act of 2005 (42
U.S.C. 15801)) may participate in a center established under
this subsection, including a cooperative research and
development agreement (as defined in section 12(d) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3710a(d))).
(6) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) may apply to any project carried out
through a grant, contract, or cooperative agreement under this
subsection.
(7) Intellectual property.--In accordance with section
202(a)(ii) of title 35, United States Code, section 152 of the
Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9 of
the Federal Nonnuclear Energy Research and Development Act of
1974 (42 U.S.C. 5908), the Secretary may require, for any new
invention developed under this subsection, that--
(A) if an industrial participant is active in a
energy storage research center established under this
subsection relating to the advancement of energy
storage technologies carried out, in whole or in part,
with Federal funding, the industrial participant be
granted the first option to negotiate with the
invention owner, at least in the field of energy
storage technologies, nonexclusive licenses, and
royalties on terms that are reasonable, as determined
by the Secretary;
(B) if 1 or more industry participants are active
in a center, during a 2-year period beginning on the
date on which an invention is made--
(i) the patent holder shall not negotiate
any license or royalty agreement with any
entity that is not an industrial participant
under this subsection; and
(ii) the patent holder shall negotiate
nonexclusive licenses and royalties in good
faith with any interested industrial
participant under this subsection; and
(C) the new invention be developed under such other
terms as the Secretary determines to be necessary to
promote the accelerated commercialization of inventions
made under this subsection to advance the capability of
the United States to successfully compete in global
energy storage markets.
(i) Energy Storage Systems Demonstrations.--
(1) In general.--The Secretary shall carry out a program of
new demonstrations of advanced energy storage systems.
(2) Scope.--The demonstrations shall--
(A) be regionally diversified; and
(B) expand on the existing technology demonstration
program of the Department.
(3) Stakeholders.--In carrying out the demonstrations, the
Secretary shall, to the maximum extent practicable, include the
participation of a range of stakeholders, including--
(A) rural electric cooperatives;
(B) investor owned utilities;
(C) municipally owned electric utilities;
(D) energy storage systems manufacturers;
(E) electric drive vehicle manufacturers;
(F) the renewable energy production industry;
(G) State or local energy offices;
(H) the fuel cell industry; and
(I) institutions of higher education.
(4) Objectives.--Each of the demonstrations shall include 1
or more of the following:
(A) Energy storage to improve the feasibility of
microgrids or islanding, or transmission and
distribution capability, to improve reliability in
rural areas.
(B) Integration of an energy storage system with a
self-healing grid.
(C) Use of energy storage to improve security to
emergency response infrastructure and ensure
availability of emergency backup power for consumers.
(D) Integration with a renewable energy production
source, at the source or away from the source.
(E) Use of energy storage to provide ancillary
services, such as spinning reserve services, for grid
management.
(F) Advancement of power conversion systems to make
the systems smarter, more efficient, able to
communicate with other inverters, and able to control
voltage.
(G) Use of energy storage to optimize transmission
and distribution operation and power quality, which
could address overloaded lines and maintenance of
transformers and substations.
(H) Use of advanced energy storage for peak load
management of homes, businesses, and the grid.
(I) Use of energy storage devices to store energy
during nonpeak generation periods to make better use of
existing grid assets.
(j) Vehicle Energy Storage Demonstration.--
(1) In general.--The Secretary shall carry out a program of
electric drive vehicle energy storage technology
demonstrations.
(2) Consortia.--The technology demonstrations shall be
conducted through consortia, which may include--
(A) energy storage systems manufacturers and
suppliers of the manufacturers;
(B) electric drive vehicle manufacturers;
(C) rural electric cooperatives;
(D) investor owned utilities;
(E) municipal and rural electric utilities;
(F) State and local governments;
(G) metropolitan transportation authorities; and
(H) institutions of higher education.
(3) Objectives.--The program shall demonstrate 1 or more of
the following:
(A) Novel, high capacity, high efficiency energy
storage, charging, and control systems, along with the
collection of data on performance characteristics, such
as battery life, energy storage capacity, and power
delivery capacity.
(B) Advanced onboard energy management systems and
highly efficient battery cooling systems.
(C) Integration of those systems on a prototype
vehicular platform, including with drivetrain systems
for passenger, commercial, and nonroad electric drive
vehicles.
(D) New technologies and processes that reduce
manufacturing costs.
(E) Integration of advanced vehicle technologies
with electricity distribution system and smart metering
technology.
(F) Control systems that minimize emissions
profiles in cases in which clean diesel engines are
part of a plug-in hybrid drive system.
(k) Secondary Applications and Disposal of Electric Drive Vehicle
Batteries.--The Secretary shall carry out a program of research,
development, and demonstration of--
(1) secondary applications of energy storage devices
following service in electric drive vehicles; and
(2) technologies and processes for final recycling and
disposal of the devices.
(l) Cost Sharing.--The Secretary shall carry out the programs
established under this section in accordance with section 988 of the
Energy Policy Act of 2005 (42 U.S.C. 16352).
(m) Merit Review of Proposals.--The Secretary shall carry out the
programs established under subsections (i), (j), and (k) in accordance
with section 989 of the Energy Policy Act of 2005 (42 U.S.C. 16353).
(n) Coordination and Nonduplication.--To the maximum extent
practicable, the Secretary shall coordinate activities under this
section with other programs and laboratories of the Department and
other Federal research programs.
(o) Review by National Academy of Sciences.--On the business day
that is 5 years after the date of enactment of this Act, the Secretary
shall offer to enter into an arrangement with the National Academy of
Sciences to assess the performance of the Department in carrying out
this section.
(p) Authorization of Appropriations.--There are authorized to be
appropriated to carry out--
(1) the basic research program under subsection (f)
$50,000,000 for each of fiscal years 2009 through 2018;
(2) the applied research program under subsection (g)
$80,000,000 for each of fiscal years 2009 through 2018; and;
(3) the energy storage research center program under
subsection (h) $100,000,000 for each of fiscal years 2009
through 2018;
(4) the energy storage systems demonstration program under
subsection (i) $30,000,000 for each of fiscal years 2009
through 2018;
(5) the vehicle energy storage demonstration program under
subsection (j) $30,000,000 for each of fiscal years 2009
through 2018; and
(6) the secondary applications and disposal of electric
drive vehicle batteries program under subsection (k) $5,000,000
for each of fiscal years 2009 through 2018.
Subtitle E--Miscellaneous Provisions
SEC. 651. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary of Energy shall establish a program to
determine ways in which the weight of motor vehicles could be reduced
to improve fuel efficiency without compromising passenger safety by
conducting research, development, and demonstration relating to--
(1) the development of new materials (including cast metal
composite materials formed by autocombustion synthesis) and
material processes that yield a higher strength-to-weight ratio
or other properties that reduce vehicle weight; and
(2) reducing the cost of--
(A) lightweight materials (including high-strength
steel alloys, aluminum, magnesium, metal composites,
and carbon fiber reinforced polymer composites) with
the properties required for construction of lighter-
weight vehicles; and
(B) materials processing, automated manufacturing,
joining, and recycling lightweight materials for high-
volume applications.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $80,000,000 for the period of
fiscal years 2008 through 2012.
SEC. 652. COMMERCIAL INSULATION DEMONSTRATION PROGRAM.
(a) Definitions.--In this section:
(1) Advanced insulation.--The term ``advanced insulation''
means insulation that has an R value of not less than R35 per
inch.
(2) Covered refrigeration unit.--The term ``covered
refrigeration unit'' means any--
(A) commercial refrigerated truck;
(B) commercial refrigerated trailer; or
(C) commercial refrigerator, freezer, or
refrigerator-freezer described in section 342(c) of the
Energy Policy and Conservation Act (42 U.S.C. 6313(c)).
(b) Report.--Not later than 90 days after the date of enactment of
this Act, the Secretary shall submit to Congress a report that includes
an evaluation of--
(1) the state of technological advancement of advanced
insulation; and
(2) the projected amount of cost savings that would be
generated by implementing advanced insulation into covered
refrigeration units.
(c) Demonstration Program.--
(1) Establishment.--If the Secretary determines in the
report described in subsection (b) that the implementation of
advanced insulation into covered refrigeration units would
generate an economically justifiable amount of cost savings,
the Secretary, in cooperation with manufacturers of covered
refrigeration units, shall establish a demonstration program
under which the Secretary shall demonstrate the cost-
effectiveness of advanced insulation.
(2) Disclosure.--The Secretary may, for a period of up to
five years after an award is granted under the demonstration
program, exempt from mandatory disclosure under section 552 of
title 5, United States Code (popularly known as the Freedom of
Information Act) information that the Secretary determines
would be a privileged or confidential trade secret or
commercial or financial information under subsection (b)(4) of
such section if the information had been obtained from a non-
Government party.
(3) Cost-sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to any project carried out
under this subsection.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $8,000,000 for the period of
fiscal years 2009 through 2014.
SEC. 653. TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE.
Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005 (42
U.S.C. 15962(b)(1)(B)(ii)) is amended by striking subclause (I) and
inserting the following:
``(I)(aa) to remove at least 99
percent of sulfur dioxide; or
``(bb) to emit not more than 0.04
pound SO<INF>2</INF> per million Btu,
based on a 30-day average;''.
SEC. 654. H-PRIZE.
Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is
amended by adding at the end the following new subsection:
``(f) H-Prize.--
``(1) Prize authority.--
``(A) In general.--As part of the program under
this section, the Secretary shall carry out a program
to competitively award cash prizes in conformity with
this subsection to advance the research, development,
demonstration, and commercial application of hydrogen
energy technologies.
``(B) Advertising and solicitation of
competitors.--
``(i) Advertising.--The Secretary shall
widely advertise prize competitions under this
subsection to encourage broad participation,
including by individuals, universities
(including historically Black colleges and
universities and other minority serving
institutions), and large and small businesses
(including businesses owned or controlled by
socially and economically disadvantaged
persons).
``(ii) Announcement through federal
register notice.--The Secretary shall announce
each prize competition under this subsection by
publishing a notice in the Federal Register.
This notice shall include essential elements of
the competition such as the subject of the
competition, the duration of the competition,
the eligibility requirements for participation
in the competition, the process for
participants to register for the competition,
the amount of the prize, and the criteria for
awarding the prize.
``(C) Administering the competitions.--The
Secretary shall enter into an agreement with a private,
nonprofit entity to administer the prize competitions
under this subsection, subject to the provisions of
this subsection (in this subsection referred to as the
`administering entity'). The duties of the
administering entity under the agreement shall
include--
``(i) advertising prize competitions under
this subsection and their results;
``(ii) raising funds from private entities
and individuals to pay for administrative costs
and to contribute to cash prizes, including
funds provided in exchange for the right to
name a prize awarded under this subsection;
``(iii) developing, in consultation with
and subject to the final approval of the
Secretary, the criteria for selecting winners
in prize competitions under this subsection,
based on goals provided by the Secretary;
``(iv) determining, in consultation with
the Secretary, the appropriate amount and
funding sources for each prize to be awarded
under this subsection, subject to the final
approval of the Secretary with respect to
Federal funding;
``(v) providing advice and consultation to
the Secretary on the selection of judges in
accordance with paragraph (2)(D), using
criteria developed in consultation with and
subject to the final approval of the Secretary;
and
``(vi) protecting against the administering
entity's unauthorized use or disclosure of a
registered participant's trade secrets and
confidential business information. Any
information properly identified as trade
secrets or confidential business information
that is submitted by a participant as part of a
competitive program under this subsection may
be withheld from public disclosure.
``(D) Funding sources.--Prizes under this
subsection shall consist of Federal appropriated funds
and any funds provided by the administering entity
(including funds raised pursuant to subparagraph
(C)(ii)) for such cash prize programs. The Secretary
may accept funds from other Federal agencies for such
cash prizes and, notwithstanding section 3302(b) of
title 31, United States Code, may use such funds for
the cash prize program under this subsection. Other
than publication of the names of prize sponsors, the
Secretary may not give any special consideration to any
private sector entity or individual in return for a
donation to the Secretary or administering entity.
``(E) Announcement of prizes.--The Secretary may
not issue a notice required by subparagraph (B)(ii)
until all the funds needed to pay out the announced
amount of the prize have been appropriated or committed
in writing by the administering entity. The Secretary
may increase the amount of a prize after an initial
announcement is made under subparagraph (B)(ii) if--
``(i) notice of the increase is provided in
the same manner as the initial notice of the
prize; and
``(ii) the funds needed to pay out the
announced amount of the increase have been
appropriated or committed in writing by the
administering entity.
``(F) Sunset.--The authority to announce prize
competitions under this subsection shall terminate on
September 30, 2018.
``(2) Prize categories.--
``(A) Categories.--The Secretary shall establish
prizes under this subsection for--
``(i) advancements in technologies,
components, or systems related to--
``(I) hydrogen production;
``(II) hydrogen storage;
``(III) hydrogen distribution; and
``(IV) hydrogen utilization;
``(ii) prototypes of hydrogen-powered
vehicles or other hydrogen-based products that
best meet or exceed objective performance
criteria, such as completion of a race over a
certain distance or terrain or generation of
energy at certain levels of efficiency; and
``(iii) transformational changes in
technologies for the distribution or production
of hydrogen that meet or exceed far-reaching
objective criteria, which shall include minimal
carbon emissions and which may include cost
criteria designed to facilitate the eventual
market success of a winning technology.
``(B) Awards.--
``(i) Advancements.--To the extent
permitted under paragraph (1)(E), the prizes
authorized under subparagraph (A)(i) shall be
awarded biennially to the most significant
advance made in each of the four subcategories
described in subclauses (I) through (IV) of
subparagraph (A)(i) since the submission
deadline of the previous prize competition in
the same category under subparagraph (A)(i) or
the date of enactment of this subsection,
whichever is later, unless no such advance is
significant enough to merit an award. No one
such prize may exceed $1,000,000. If less than
$4,000,000 is available for a prize competition
under subparagraph (A)(i), the Secretary may
omit one or more subcategories, reduce the
amount of the prizes, or not hold a prize
competition.
``(ii) Prototypes.--To the extent permitted
under paragraph (1)(E), prizes authorized under
subparagraph (A)(ii) shall be awarded
biennially in alternate years from the prizes
authorized under subparagraph (A)(i). The
Secretary is authorized to award up to one
prize in this category in each 2-year period.
No such prize may exceed $4,000,000. If no
registered participants meet the objective
performance criteria established pursuant to
subparagraph (C) for a competition under this
clause, the Secretary shall not award a prize.
``(iii) Transformational technologies.--To
the extent permitted under paragraph (1)(E),
the Secretary shall announce one prize
competition authorized under subparagraph
(A)(iii) as soon after the date of enactment of
this subsection as is practicable. A prize
offered under this clause shall be not less
than $10,000,000, paid to the winner in a lump
sum, and an additional amount paid to the
winner as a match for each dollar of private
funding raised by the winner for the hydrogen
technology beginning on the date the winner was
named. The match shall be provided for 3 years
after the date the prize winner is named or
until the full amount of the prize has been
paid out, whichever occurs first. A prize
winner may elect to have the match amount paid
to another entity that is continuing the
development of the winning technology. The
Secretary shall announce the rules for
receiving the match in the notice required by
paragraph (1)(B)(ii). The Secretary shall award
a prize under this clause only when a
registered participant has met the objective
criteria established for the prize pursuant to
subparagraph (C) and announced pursuant to
paragraph (1)(B)(ii). Not more than $10,000,000
in Federal funds may be used for the prize
award under this clause. The administering
entity shall seek to raise $40,000,000 toward
the matching award under this clause.
``(C) Criteria.--In establishing the criteria
required by this subsection, the Secretary--
``(i) shall consult with the Department's
Hydrogen Technical and Fuel Cell Advisory
Committee;
``(ii) shall consult with other Federal
agencies, including the National Science
Foundation; and
``(iii) may consult with other experts such
as private organizations, including
professional societies, industry associations,
and the National Academy of Sciences and the
National Academy of Engineering.
``(D) Judges.--For each prize competition under
this subsection, the Secretary in consultation with the
administering entity shall assemble a panel of
qualified judges to select the winner or winners on the
basis of the criteria established under subparagraph
(C). Judges for each prize competition shall include
individuals from outside the Department, including from
the private sector. A judge, spouse, minor children,
and members of the judge's household may not--
``(i) have personal or financial interests
in, or be an employee, officer, director, or
agent of, any entity that is a registered
participant in the prize competition for which
he or she will serve as a judge; or
``(ii) have a familial or financial
relationship with an individual who is a
registered participant in the prize competition
for which he or she will serve as a judge.
``(3) Eligibility.--To be eligible to win a prize under
this subsection, an individual or entity--
``(A) shall have complied with all the requirements
in accordance with the Federal Register notice required
under paragraph (1)(B)(ii);
``(B) in the case of a private entity, shall be
incorporated in and maintain a primary place of
business in the United States, and in the case of an
individual, whether participating singly or in a group,
shall be a citizen of, or an alien lawfully admitted
for permanent residence in, the United States; and
``(C) shall not be a Federal entity, a Federal
employee acting within the scope of his employment, or
an employee of a national laboratory acting within the
scope of his employment.
``(4) Intellectual property.--The Federal Government shall
not, by virtue of offering or awarding a prize under this
subsection, be entitled to any intellectual property rights
derived as a consequence of, or direct relation to, the
participation by a registered participant in a competition
authorized by this subsection. This paragraph shall not be
construed to prevent the Federal Government from negotiating a
license for the use of intellectual property developed for a
prize competition under this subsection.
``(5) Liability.--
``(A) Waiver of liability.--The Secretary may
require registered participants to waive claims against
the Federal Government and the administering entity
(except claims for willful misconduct) for any injury,
death, damage, or loss of property, revenue, or profits
arising from the registered participants' participation
in a competition under this subsection. The Secretary
shall give notice of any waiver required under this
subparagraph in the notice required by paragraph
(1)(B)(ii). The Secretary may not require a registered
participant to waive claims against the administering
entity arising out of the unauthorized use or
disclosure by the administering entity of the
registered participant's trade secrets or confidential
business information.
``(B) Liability insurance.--
``(i) Requirements.--Registered
participants in a prize competition under this
subsection shall be required to obtain
liability insurance or demonstrate financial
responsibility, in amounts determined by the
Secretary, for claims by--
``(I) a third party for death,
bodily injury, or property damage or
loss resulting from an activity carried
out in connection with participation in
a competition under this subsection;
and
``(II) the Federal Government for
damage or loss to Government property
resulting from such an activity.
``(ii) Federal government insured.--The
Federal Government shall be named as an
additional insured under a registered
participant's insurance policy required under
clause (i)(I), and registered participants
shall be required to agree to indemnify the
Federal Government against third party claims
for damages arising from or related to
competition activities under this subsection.
``(6) Report to congress.--Not later than 60 days after the
awarding of the first prize under this subsection, and annually
thereafter, the Secretary shall transmit to the Congress a
report that--
``(A) identifies each award recipient;
``(B) describes the technologies developed by each
award recipient; and
``(C) specifies actions being taken toward
commercial application of all technologies with respect
to which a prize has been awarded under this
subsection.
``(7) Authorization of appropriations.--
``(A) In general.--
``(i) Awards.--There are authorized to be
appropriated to the Secretary for the period
encompassing fiscal years 2008 through 2017 for
carrying out this subsection--
``(I) $20,000,000 for awards
described in paragraph (2)(A)(i);
``(II) $20,000,000 for awards
described in paragraph (2)(A)(ii); and
``(III) $10,000,000 for the award
described in paragraph (2)(A)(iii).
``(ii) Administration.--In addition to the
amounts authorized in clause (i), there are
authorized to be appropriated to the Secretary
for each of fiscal years 2008 and 2009
$2,000,000 for the administrative costs of
carrying out this subsection.
``(B) Carryover of funds.--Funds appropriated for
prize awards under this subsection shall remain
available until expended, and may be transferred,
reprogrammed, or expended for other purposes only after
the expiration of 10 fiscal years after the fiscal year
for which the funds were originally appropriated. No
provision in this subsection permits obligation or
payment of funds in violation of section 1341 of title
31 of the United States Code (commonly referred to as
the Anti-Deficiency Act).
``(8) Nonsubstitution.--The programs created under this
subsection shall not be considered a substitute for Federal
research and development programs.''.
SEC. 655. BRIGHT TOMORROW LIGHTING PRIZES.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, as part of the program carried out under section
1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396), the Secretary
shall establish and award Bright Tomorrow Lighting Prizes for solid
state lighting in accordance with this section.
(b) Prize Specifications.--
(1) 60-watt incandescent replacement lamp prize.--The
Secretary shall award a 60-Watt Incandescent Replacement Lamp
Prize to an entrant that produces a solid-state light package
simultaneously capable of--
(A) producing a luminous flux greater than 900
lumens;
(B) consuming less than or equal to 10 watts;
(C) having an efficiency greater than 90 lumens per
watt;
(D) having a color rendering index greater than 90;
(E) having a correlated color temperature of not
less than 2,750, and not more than 3,000, degrees
Kelvin;
(F) having 70 percent of the lumen value under
subparagraph (A) exceeding 25,000 hours under typical
conditions expected in residential use;
(G) having a light distribution pattern similar to
a soft 60-watt incandescent A19 bulb;
(H) having a size and shape that fits within the
maximum dimensions of an A19 bulb in accordance with
American National Standards Institute standard C78.20-
2003, figure C78.20-211;
(I) using a single contact medium screw socket; and
(J) mass production for a competitive sales
commercial market satisfied by producing commercially
accepted quality control lots of such units equal to or
exceeding the criteria described in subparagraphs (A)
through (I).
(2) PAR type 38 halogen replacement lamp prize.--The
Secretary shall award a Parabolic Aluminized Reflector Type 38
Halogen Replacement Lamp Prize (referred to in this section as
the ``PAR Type 38 Halogen Replacement Lamp Prize'') to an
entrant that produces a solid-state-light package
simultaneously capable of--
(A) producing a luminous flux greater than or equal
to 1,350 lumens;
(B) consuming less than or equal to 11 watts;
(C) having an efficiency greater than 123 lumens
per watt;
(D) having a color rendering index greater than or
equal to 90;
(E) having a correlated color coordinate
temperature of not less than 2,750, and not more than
3,000, degrees Kelvin;
(F) having 70 percent of the lumen value under
subparagraph (A) exceeding 25,000 hours under typical
conditions expected in residential use;
(G) having a light distribution pattern similar to
a PAR 38 halogen lamp;
(H) having a size and shape that fits within the
maximum dimensions of a PAR 38 halogen lamp in
accordance with American National Standards Institute
standard C78-21-2003, figure C78.21-238;
(I) using a single contact medium screw socket; and
(J) mass production for a competitive sales
commercial market satisfied by producing commercially
accepted quality control lots of such units equal to or
exceeding the criteria described in subparagraphs (A)
through (I).
(3) Twenty-first century lamp prize.--The Secretary shall
award a Twenty-First Century Lamp Prize to an entrant that
produces a solid-state-light-light capable of--
(A) producing a light output greater than 1,200
lumens;
(B) having an efficiency greater than 150 lumens
per watt;
(C) having a color rendering index greater than 90;
(D) having a color coordinate temperature between
2,800 and 3,000 degrees Kelvin; and
(E) having a lifetime exceeding 25,000 hours.
(c) Private Funds.--
(1) In general.--Subject to paragraph (2), and
notwithstanding section 3302 of title 31, United States Code,
the Secretary may accept, retain, and use funds contributed by
any person, government entity, or organization for purposes of
carrying out this subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(2) Prize competition.--A private source of funding may not
participate in the competition for prizes awarded under this
section.
(d) Technical Review.--The Secretary shall establish a technical
review committee composed of non-Federal officers to review entrant
data submitted under this section to determine whether the data meets
the prize specifications described in subsection (b).
(e) Third Party Administration.--The Secretary may competitively
select a third party to administer awards under this section.
(f) Eligibility for Prizes.--To be eligible to be awarded a prize
under this section--
(1) in the case of a private entity, the entity shall be
incorporated in and maintain a primary place of business in the
United States; and
(2) in the case of an individual (whether participating as
a single individual or in a group), the individual shall be a
citizen or lawful permanent resident of the United States.
(g) Award Amounts.--Subject to the availability of funds to carry
out this section, the amount of--
(1) the 60-Watt Incandescent Replacement Lamp Prize
described in subsection (b)(1) shall be $10,000,000;
(2) the PAR Type 38 Halogen Replacement Lamp Prize
described in subsection (b)(2) shall be $5,000,000; and
(3) the Twenty-First Century Lamp Prize described in
subsection (b)(3) shall be $5,000,000.
(h) Federal Procurement of Solid-State-Lights.--
(1) 60-watt incandescent replacement.--Subject to paragraph
(3), as soon as practicable after the successful award of the
60-Watt Incandescent Replacement Lamp Prize under subsection
(b)(1), the Secretary (in consultation with the Administrator
of General Services) shall develop governmentwide Federal
purchase guidelines with a goal of replacing the use of 60-watt
incandescent lamps in Federal Government buildings with a
solid-state-light package described in subsection (b)(1) by not
later than the date that is 5 years after the date the award is
made.
(2) PAR 38 halogen replacement lamp replacement.--Subject
to paragraph (3), as soon as practicable after the successful
award of the PAR Type 38 Halogen Replacement Lamp Prize under
subsection (b)(2), the Secretary (in consultation with the
Administrator of General Services) shall develop governmentwide
Federal purchase guidelines with the goal of replacing the use
of PAR 38 halogen lamps in Federal Government buildings with a
solid-state-light package described in subsection (b)(2) by not
later than the date that is 5 years after the date the award is
made.
(3) Waivers.--
(A) In general.--The Secretary or the Administrator
of General Services may waive the application of
paragraph (1) or (2) if the Secretary or Administrator
determines that the return on investment from the
purchase of a solid-state-light package described in
paragraph (1) or (2) of subsection (b), respectively,
is cost prohibitive.
(B) Report of waiver.--If the Secretary or
Administrator waives the application of paragraph (1)
or (2), the Secretary or Administrator, respectively,
shall submit to Congress an annual report that
describes the waiver and provides a detailed
justification for the waiver.
(i) Report.--Not later than 2 years after the date of enactment of
this Act, and annually thereafter, the Administrator of General
Services shall submit to the Energy Information Agency a report
describing the quantity, type, and cost of each lighting product
purchased by the Federal Government.
(j) Bright Tomorrow Lighting Award Fund.--
(1) Establishment.--There is established in the United
States Treasury a Bright Tomorrow Lighting permanent fund
without fiscal year limitation to award prizes under paragraphs
(1), (2), and (3) of subsection (b).
(2) Sources of funding.--The fund established under
paragraph (1) shall accept--
(A) fiscal year appropriations; and
(B) private contributions authorized under
subsection (c).
(k) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 656. RENEWABLE ENERGY INNOVATION MANUFACTURING PARTNERSHIP.
(a) Establishment.--The Secretary shall carry out a program, to be
known as the Renewable Energy Innovation Manufacturing Partnership
Program (referred to in this section as the ``Program''), to make
assistance awards to eligible entities for use in carrying out
research, development, and demonstration relating to the manufacturing
of renewable energy technologies.
(b) Solicitation.--To carry out the Program, the Secretary shall
annually conduct a competitive solicitation for assistance awards for
an eligible project described in subsection (e).
(c) Program Purposes.--The purposes of the Program are--
(1) to develop, or aid in the development of, advanced
manufacturing processes, materials, and infrastructure;
(2) to increase the domestic production of renewable energy
technology and components; and
(3) to better coordinate Federal, State, and private
resources to meet regional and national renewable energy goals
through advanced manufacturing partnerships.
(d) Eligible Entities.--An entity shall be eligible to receive an
assistance award under the Program to carry out an eligible project
described in subsection (e) if the entity is composed of--
(1) 1 or more public or private nonprofit institutions or
national laboratories engaged in research, development,
demonstration, or technology transfer, that would participate
substantially in the project; and
(2) 1 or more private entities engaged in the manufacturing
or development of renewable energy system components (including
solar energy, wind energy, biomass, geothermal energy, energy
storage, or fuel cells).
(e) Eligible Projects.--An eligible entity may use an assistance
award provided under this section to carry out a project relating to--
(1) the conduct of studies of market opportunities for
component manufacturing of renewable energy systems;
(2) the conduct of multiyear applied research, development,
demonstration, and deployment projects for advanced
manufacturing processes, materials, and infrastructure for
renewable energy systems; and
(3) other similar ventures, as approved by the Secretary,
that promote advanced manufacturing of renewable technologies.
(f) Criteria and Guidelines.--The Secretary shall establish
criteria and guidelines for the submission, evaluation, and funding of
proposed projects under the Program.
(g) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42
U.S.C. 16352) shall apply to a project carried out under this section.
(h) Disclosure.--The Secretary may, for a period of up to five
years after an award is granted under this section, exempt from
mandatory disclosure under section 552 of title 5, United States Code
(popularly known as the Freedom of Information Act) information that
the Secretary determines would be a privileged or confidential trade
secret or commercial or financial information under subsection (b)(4)
of such section if the information had been obtained from a non-
Government party.
(i) Sense of the Congress.--It is the sense of the Congress that
the Secretary should ensure that small businesses engaged in renewable
manufacturing be given priority consideration for the assistance awards
provided under this section.
(j) Authorization of Appropriations.--There is authorized to be
appropriated out of funds already authorized to carry out this section
$25,000,000 for each of fiscal years 2008 through 2013, to remain
available until expended.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION
Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration
SEC. 701. SHORT TITLE.
This subtitle may be cited as the ``Department of Energy Carbon
Capture and Sequestration Research, Development, and Demonstration Act
of 2007''.
SEC. 702. CARBON CAPTURE AND SEQUESTRATION RESEARCH, DEVELOPMENT, AND
DEMONSTRATION PROGRAM.
(a) Amendment.--Section 963 of the Energy Policy Act of 2005 (42
U.S.C. 16293) is amended--
(1) in the section heading, by striking ``research and
development'' and inserting ``and sequestration research,
development, and demonstration'';
(2) in subsection (a)--
(A) by striking ``research and development'' and
inserting ``and sequestration research, development,
and demonstration''; and
(B) by striking ``capture technologies on
combustion-based systems'' and inserting ``capture and
sequestration technologies related to industrial
sources of carbon dioxide'';
(3) in subsection (b)--
(A) in paragraph (3), by striking ``and'' at the
end;
(B) in paragraph (4), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(5) to expedite and carry out large-scale testing of
carbon sequestration systems in a range of geologic formations
that will provide information on the cost and feasibility of
deployment of sequestration technologies.''; and
(4) by striking subsection (c) and inserting the following:
``(c) Programmatic Activities.--
``(1) Fundamental science and engineering research and
development and demonstration supporting carbon capture and
sequestration technologies and carbon use activities.--
``(A) In general.--The Secretary shall carry out
fundamental science and engineering research (including
laboratory-scale experiments, numeric modeling, and
simulations) to develop and document the performance of
new approaches to capture and sequester, or use carbon
dioxide to lead to an overall reduction of carbon
dioxide emissions.
``(B) Program integration.--The Secretary shall
ensure that fundamental research carried out under this
paragraph is appropriately applied to energy technology
development activities, the field testing of carbon
sequestration, and carbon use activities, including--
``(i) development of new or advanced
technologies for the capture and sequestration
of carbon dioxide;
``(ii) development of new or advanced
technologies that reduce the cost and increase
the efficacy of advanced compression of carbon
dioxide required for the sequestration of
carbon dioxide;
``(iii) modeling and simulation of geologic
sequestration field demonstrations;
``(iv) quantitative assessment of risks
relating to specific field sites for testing of
sequestration technologies;
``(v) research and development of new and
advanced technologies for carbon use, including
recycling and reuse of carbon dioxide; and
``(vi) research and development of new and
advanced technologies for the separation of
oxygen from air.
``(2) Field validation testing activities.--
``(A) In general.--The Secretary shall promote, to
the maximum extent practicable, regional carbon
sequestration partnerships to conduct geologic
sequestration tests involving carbon dioxide injection
and monitoring, mitigation, and verification operations
in a variety of candidate geologic settings,
including--
``(i) operating oil and gas fields;
``(ii) depleted oil and gas fields;
``(iii) unmineable coal seams;
``(iv) deep saline formations;
``(v) deep geologic systems that may be
used as engineered reservoirs to extract
economical quantities of heat from geothermal
resources of low permeability or porosity; and
``(vi) deep geologic systems containing
basalt formations.
``(B) Objectives.--The objectives of tests
conducted under this paragraph shall be--
``(i) to develop and validate geophysical
tools, analysis, and modeling to monitor,
predict, and verify carbon dioxide containment;
``(ii) to validate modeling of geologic
formations;
``(iii) to refine sequestration capacity
estimated for particular geologic formations;
``(iv) to determine the fate of carbon
dioxide concurrent with and following injection
into geologic formations;
``(v) to develop and implement best
practices for operations relating to, and
monitoring of, carbon dioxide injection and
sequestration in geologic formations;
``(vi) to assess and ensure the safety of
operations related to geologic sequestration of
carbon dioxide;
``(vii) to allow the Secretary to
promulgate policies, procedures, requirements,
and guidance to ensure that the objectives of
this subparagraph are met in large-scale
testing and deployment activities for carbon
capture and sequestration that are funded by
the Department of Energy; and
``(viii) to provide information to States,
the Environmental Protection Agency, and other
appropriate entities to support development of
a regulatory framework for commercial-scale
sequestration operations that ensure the
protection of human health and the environment.
``(3) Large-scale carbon dioxide sequestration testing.--
``(A) In general.--The Secretary shall conduct not
less than 7 initial large-scale sequestration tests,
not including the FutureGen project, for geologic
containment of carbon dioxide to collect and validate
information on the cost and feasibility of commercial
deployment of technologies for geologic containment of
carbon dioxide. These 7 tests may include any Regional
Partnership projects awarded as of the date of
enactment of the Department of Energy Carbon Capture
and Sequestration Research, Development, and
Demonstration Act of 2007.
``(B) Diversity of formations to be studied.--In
selecting formations for study under this paragraph,
the Secretary shall consider a variety of geologic
formations across the United States, and require
characterization and modeling of candidate formations,
as determined by the Secretary.
``(C) Source of carbon dioxide for large-scale
sequestration tests.--In the process of any acquisition
of carbon dioxide for sequestration tests under
subparagraph (A), the Secretary shall give preference
to sources of carbon dioxide from industrial sources.
To the extent feasible, the Secretary shall prefer
tests that would facilitate the creation of an
integrated system of capture, transportation and
sequestration of carbon dioxide. The preference
provided for under this subparagraph shall not delay
the implementation of the large-scale sequestration
tests under this paragraph.
``(D) Definition.--For purposes of this paragraph,
the term `large-scale' means the injection of more than
1,000,000 tons of carbon dioxide from industrial
sources annually or a scale that demonstrates the
ability to inject and sequester several million metric
tons of industrial source carbon dioxide for a large
number of years.
``(4) Preference in project selection from meritorious
proposals.--In making competitive awards under this subsection,
subject to the requirements of section 989, the Secretary
shall--
``(A) give preference to proposals from
partnerships among industrial, academic, and government
entities; and
``(B) require recipients to provide assurances that
all laborers and mechanics employed by contractors and
subcontractors in the construction, repair, or
alteration of new or existing facilities performed in
order to carry out a demonstration or commercial
application activity authorized under this subsection
shall be paid wages at rates not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States
Code, and the Secretary of Labor shall, with respect to
the labor standards in this paragraph, have the
authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C.
Appendix) and section 3145 of title 40, United States
Code.
``(5) Cost sharing.--Activities under this subsection shall
be considered research and development activities that are
subject to the cost sharing requirements of section 988(b).
``(6) Program review and report.--During fiscal year 2011,
the Secretary shall--
``(A) conduct a review of programmatic activities
carried out under this subsection; and
``(B) make recommendations with respect to
continuation of the activities.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) $240,000,000 for fiscal year 2008;
``(2) $240,000,000 for fiscal year 2009;
``(3) $240,000,000 for fiscal year 2010;
``(4) $240,000,000 for fiscal year 2011; and
``(5) $240,000,000 for fiscal year 2012.''.
(b) Table of Contents Amendment.--The item relating to section 963
in the table of contents for the Energy Policy Act of 2005 is amended
to read as follows:
``Sec. 963. Carbon capture and sequestration research, development, and
demonstration program.''.
SEC. 703. CARBON CAPTURE.
(a) Program Establishment.--
(1) In general.--The Secretary shall carry out a program to
demonstrate technologies for the large-scale capture of carbon
dioxide from industrial sources. In making awards under this
program, the Secretary shall select, as appropriate, a
diversity of capture technologies to address the need to
capture carbon dioxide from a range of industrial sources.
(2) Scope of award.--Awards under this section shall be
only for the portion of the project that--
(A) carries out the large-scale capture (including
purification and compression) of carbon dioxide from
industrial sources;
(B) provides for the transportation and injection
of carbon dioxide; and
(C) incorporates a comprehensive measurement,
monitoring, and validation program.
(3) Preferences for award.--To ensure reduced carbon
dioxide emissions, the Secretary shall take necessary actions
to provide for the integration of the program under this
paragraph with the large-scale carbon dioxide sequestration
tests described in section 963(c)(3) of the Energy Policy Act
of 2005 (42 U.S.C. 16293(c)(3)), as added by section 702 of
this subtitle. These actions should not delay implementation of
these tests. The Secretary shall give priority consideration to
projects with the following characteristics:
(A) Capacity.--Projects that will capture a high
percentage of the carbon dioxide in the treated stream
and large volumes of carbon dioxide as determined by
the Secretary.
(B) Sequestration.--Projects that capture carbon
dioxide from industrial sources that are near suitable
geological reservoirs and could continue sequestration
including--
(i) a field testing validation activity
under section 963 of the Energy Policy Act of
2005 (42 U.S.C. 16293), as amended by this Act;
or
(ii) other geologic sequestration projects
approved by the Secretary.
(4) Requirement.--For projects that generate carbon dioxide
that is to be sequestered, the carbon dioxide stream shall be
of a sufficient purity level to allow for safe transport and
sequestration.
(5) Cost-sharing.--The cost-sharing requirements of section
988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) for
research and development projects shall apply to this section.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $200,000,000
per year for fiscal years 2009 through 2013.
SEC. 704. REVIEW OF LARGE-SCALE PROGRAMS.
The Secretary shall enter into an arrangement with the National
Academy of Sciences for an independent review and oversight, beginning
in 2011, of the programs under section 963(c)(3) of the Energy Policy
Act of 2005 (42 U.S.C. 16293(c)(3)), as added by section 702 of this
subtitle, and under section 703 of this subtitle, to ensure that the
benefits of such programs are maximized. Not later than January 1,
2012, the Secretary shall transmit to the Congress a report on the
results of such review and oversight.
SEC. 705. GEOLOGIC SEQUESTRATION TRAINING AND RESEARCH.
(a) Study.--
(1) In general.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to undertake
a study that--
(A) defines an interdisciplinary program in
geology, engineering, hydrology, environmental science,
and related disciplines that will support the Nation's
capability to capture and sequester carbon dioxide from
anthropogenic sources;
(B) addresses undergraduate and graduate education,
especially to help develop graduate level programs of
research and instruction that lead to advanced degrees
with emphasis on geologic sequestration science;
(C) develops guidelines for proposals from colleges
and universities with substantial capabilities in the
required disciplines that seek to implement geologic
sequestration science programs that advance the
Nation's capacity to address carbon management through
geologic sequestration science; and
(D) outlines a budget and recommendations for how
much funding will be necessary to establish and carry
out the grant program under subsection (b).
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit to the
Congress a copy of the results of the study provided by the
National Academy of Sciences under paragraph (1).
(3) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
subsection $1,000,000 for fiscal year 2008.
(b) Grant Program.--
(1) Establishment.--The Secretary shall establish a
competitive grant program through which colleges and
universities may apply for and receive 4-year grants for--
(A) salary and startup costs for newly designated
faculty positions in an integrated geologic carbon
sequestration science program; and
(B) internships for graduate students in geologic
sequestration science.
(2) Renewal.--Grants under this subsection shall be
renewable for up to 2 additional 3-year terms, based on
performance criteria, established by the National Academy of
Sciences study conducted under subsection (a), that include the
number of graduates of such programs.
(3) Interface with regional geologic carbon sequestration
partnerships.--To the greatest extent possible, geologic carbon
sequestration science programs supported under this subsection
shall interface with the research of the Regional Carbon
Sequestration Partnerships operated by the Department to
provide internships and practical training in carbon capture
and geologic sequestration.
(4) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
subsection such sums as may be necessary.
SEC. 706. RELATION TO SAFE DRINKING WATER ACT.
The injection and geologic sequestration of carbon dioxide pursuant
to this subtitle and the amendments made by this subtitle shall be
subject to the requirements of the Safe Drinking Water Act (42 U.S.C.
300f et seq.), including the provisions of part C of such Act (42
U.S.C. 300h et seq.; relating to protection of underground sources of
drinking water). Nothing in this subtitle and the amendments made by
this subtitle imposes or authorizes the promulgation of any requirement
that is inconsistent or in conflict with the requirements of the Safe
Drinking Water Act (42 U.S.C. 300f et seq.) or regulations thereunder.
SEC. 707. SAFETY RESEARCH.
(a) Program.--The Administrator of the Environmental Protection
Agency shall conduct a research program to address public health,
safety, and environmental impacts that may be associated with capture,
injection, and sequestration of greenhouse gases in geologic
reservoirs.
(b) Authorization of Appropriations.--There are authorized to be
appropriated for carrying out this section $5,000,000 for each fiscal
year.
SEC. 708. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.
(a) Establishment.--The Secretary, in consultation with other
appropriate agencies, shall establish a university based research and
development program to study carbon capture and sequestration using the
various types of coal.
(b) Rural and Agricultural Institutions.--The Secretary shall give
special consideration to rural or agricultural based institutions in
areas that have regional sources of coal and that offer
interdisciplinary programs in the area of environmental science to
study carbon capture and sequestration.
(c) Authorization of Appropriations.--There are to be authorized to
be appropriated $10,000,000 to carry out this section.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework
SEC. 711. CARBON DIOXIDE SEQUESTRATION CAPACITY ASSESSMENT.
(a) Definitions.--In this section
(1) Assessment.--The term ``assessment'' means the national
assessment of onshore capacity for carbon dioxide completed
under subsection (f).
(2) Capacity.--The term ``capacity'' means the portion of a
sequestration formation that can retain carbon dioxide in
accordance with the requirements (including physical,
geological, and economic requirements) established under the
methodology developed under subsection (b).
(3) Engineered hazard.--The term ``engineered hazard''
includes the location and completion history of any well that
could affect potential sequestration.
(4) Risk.--The term ``risk'' includes any risk posed by
geomechanical, geochemical, hydrogeological, structural, and
engineered hazards.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
(6) Sequestration formation.--The term ``sequestration
formation'' means a deep saline formation, unmineable coal
seam, or oil or gas reservoir that is capable of accommodating
a volume of industrial carbon dioxide.
(b) Methodology.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall develop a methodology for conducting
an assessment under subsection (f), taking into consideration--
(1) the geographical extent of all potential sequestration
formations in all States;
(2) the capacity of the potential sequestration formations;
(3) the injectivity of the potential sequestration
formations;
(4) an estimate of potential volumes of oil and gas
recoverable by injection and sequestration of industrial carbon
dioxide in potential sequestration formations;
(5) the risk associated with the potential sequestration
formations; and
(6) the work done to develop the Carbon Sequestration Atlas
of the United States and Canada that was completed by the
Department.
(c) Coordination.--
(1) Federal coordination.--
(A) Consultation.--The Secretary shall consult with
the Secretary of Energy and the Administrator of the
Environmental Protection Agency on issues of data
sharing, format, development of the methodology, and
content of the assessment required under this section
to ensure the maximum usefulness and success of the
assessment.
(B) Cooperation.--The Secretary of Energy and the
Administrator shall cooperate with the Secretary to
ensure, to the maximum extent practicable, the
usefulness and success of the assessment.
(2) State coordination.--The Secretary shall consult with
State geological surveys and other relevant entities to ensure,
to the maximum extent practicable, the usefulness and success
of the assessment.
(d) External Review and Publication.--On completion of the
methodology under subsection (b), the Secretary shall--
(1) publish the methodology and solicit comments from the
public and the heads of affected Federal and State agencies;
(2) establish a panel of individuals with expertise in the
matters described in paragraphs (1) through (5) of subsection
(b) composed, as appropriate, of representatives of Federal
agencies, institutions of higher education, nongovernmental
organizations, State organizations, industry, and international
geoscience organizations to review the methodology and comments
received under paragraph (1); and
(3) on completion of the review under paragraph (2),
publish in the Federal Register the revised final methodology.
(e) Periodic Updates.--The methodology developed under this section
shall be updated periodically (including at least once every 5 years)
to incorporate new data as the data becomes available.
(f) National Assessment.--
(1) In general.--Not later than 2 years after the date of
publication of the methodology under subsection (d)(1), the
Secretary, in consultation with the Secretary of Energy and
State geological surveys, shall complete a national assessment
of capacity for carbon dioxide in accordance with the
methodology.
(2) Geological verification.--As part of the assessment
under this subsection, the Secretary shall carry out a drilling
program to supplement the geological data relevant to
determining sequestration capacity of carbon dioxide in
geological sequestration formations, including--
(A) well log data;
(B) core data; and
(C) fluid sample data.
(3) Partnership with other drilling programs.--As part of
the drilling program under paragraph (2), the Secretary shall
enter, as appropriate, into partnerships with other entities to
collect and integrate data from other drilling programs
relevant to the sequestration of carbon dioxide in geological
formations.
(4) Incorporation into natcarb.--
(A) In general.--On completion of the assessment,
the Secretary of Energy and the Secretary of the
Interior shall incorporate the results of the
assessment using--
(i) the NatCarb database, to the maximum
extent practicable; or
(ii) a new database developed by the
Secretary of Energy, as the Secretary of Energy
determines to be necessary.
(B) Ranking.--The database shall include the data
necessary to rank potential sequestration sites for
capacity and risk, across the United States, within
each State, by formation, and within each basin.
(5) Report.--Not later than 180 days after the date on
which the assessment is completed, the Secretary shall submit
to the Committee on Energy and Natural Resources of the Senate
and the Committee on Natural Resources of the House of
Representatives a report describing the findings under the
assessment.
(6) Periodic updates.--The national assessment developed
under this section shall be updated periodically (including at
least once every 5 years) to support public and private sector
decisionmaking.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $30,000,000 for the period of
fiscal years 2008 through 2012.
SEC. 712. ASSESSMENT OF CARBON SEQUESTRATION AND METHANE AND NITROUS
OXIDE EMISSIONS FROM ECOSYSTEMS.
(a) Definitions.--In this section:
(1) Adaptation strategy.--The term ``adaptation strategy''
means a land use and management strategy that can be used--
(A) to increase the sequestration capabilities of
covered greenhouse gases of any ecosystem; or
(B) to reduce the emissions of covered greenhouse
gases from any ecosystem.
(2) Assessment.--The term ``assessment'' means the national
assessment authorized under subsection (b).
(3) Covered greenhouse gas.--The term ``covered greenhouse
gas'' means carbon dioxide, nitrous oxide, and methane gas.
(4) Ecosystem.--The term ``ecosystem'' means any
terrestrial, freshwater aquatic, or coastal ecosystem,
including an estuary.
(5) Native plant species.--The term ``native plant
species'' means any noninvasive, naturally occurring plant
species within an ecosystem.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Authorization of Assessment.--Not later than 2 years after the
date on which the final methodology is published under subsection
(f)(3)(D), the Secretary shall complete a national assessment of--
(1) the quantity of carbon stored in and released from
ecosystems, including from man-caused and natural fires; and
(2) the annual flux of covered greenhouse gases in and out
of ecosystems.
(c) Components.--In conducting the assessment under subsection (b),
the Secretary shall--
(1) determine the processes that control the flux of
covered greenhouse gases in and out of each ecosystem;
(2) estimate the potential for increasing carbon
sequestration in natural and managed ecosystems through
management activities or restoration activities in each
ecosystem;
(3) develop near-term and long-term adaptation strategies
or mitigation strategies that can be employed--
(A) to enhance the sequestration of carbon in each
ecosystem;
(B) to reduce emissions of covered greenhouse gases
from ecosystems; and
(C) to adapt to climate change; and
(4) estimate the annual carbon sequestration capacity of
ecosystems under a range of policies in support of management
activities to optimize sequestration.
(d) Use of Native Plant Species.--In developing restoration
activities under subsection (c)(2) and management strategies and
adaptation strategies under subsection (c)(3), the Secretary shall
emphasize the use of native plant species (including mixtures of many
native plant species) for sequestering covered greenhouse gas in each
ecosystem.
(e) Consultation.--
(1) In general.--In conducting the assessment under
subsection (b) and developing the methodology under subsection
(f), the Secretary shall consult with--
(A) the Secretary of Energy;
(B) the Secretary of Agriculture;
(C) the Administrator of the Environmental
Protection Agency;
(D) the Secretary of Commerce, acting through the
Under Secretary for Oceans and Atmosphere; and
(E) the heads of other relevant agencies.
(2) Ocean and coastal ecosystems.--In carrying out this
section with respect to ocean and coastal ecosystems (including
estuaries), the Secretary shall work jointly with the Secretary
of Commerce, acting through the Under Secretary for Oceans and
Atmosphere.
(f) Methodology.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop a
methodology for conducting the assessment.
(2) Requirements.--The methodology developed under
paragraph (1)--
(A) shall--
(i) determine the method for measuring,
monitoring, and quantifying covered greenhouse
gas emissions and reductions;
(ii) estimate the total capacity of each
ecosystem to sequester carbon; and
(iii) estimate the ability of each
ecosystem to reduce emissions of covered
greenhouse gases through management practices;
and
(B) may employ economic and other systems models,
analyses, and estimates, to be developed in
consultation with each of the individuals described in
subsection (e).
(3) External review and publication.--On completion of a
proposed methodology, the Secretary shall--
(A) publish the proposed methodology;
(B) at least 60 days before the date on which the
final methodology is published, solicit comments from--
(i) the public; and
(ii) heads of affected Federal and State
agencies;
(C) establish a panel to review the proposed
methodology published under subparagraph (A) and any
comments received under subparagraph (B), to be
composed of members--
(i) with expertise in the matters described
in subsections (c) and (d); and
(ii) that are, as appropriate,
representatives of Federal agencies,
institutions of higher education,
nongovernmental organizations, State
organizations, industry, and international
organizations; and
(D) on completion of the review under subparagraph
(C), publish in the Federal register the revised final
methodology.
(g) Estimate; Review.--The Secretary shall--
(1) based on the assessment, prescribe the data,
information, and analysis needed to establish a scientifically
sound estimate of the carbon sequestration capacity of relevant
ecosystems; and
(2) not later than 180 days after the date on which the
assessment is completed, submit to the heads of applicable
Federal agencies and the appropriate committees of Congress a
report that describes the results of the assessment.
(h) Data and Report Availability.--On completion of the assessment,
the Secretary shall incorporate the results of the assessment into a
web-accessible database for public use.
(i) Authorization.--There is authorized to be appropriated to carry
out this section $20,000,000 for the period of fiscal years 2008
through 2012.
SEC. 713. CARBON DIOXIDE SEQUESTRATION INVENTORY.
Section 354 of the Energy Policy Act of 2005 (42 U.S.C. 15910) is
amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Records and Inventory.--The Secretary of the Interior, acting
through the Bureau of Land Management, shall maintain records on, and
an inventory of, the quantity of carbon dioxide stored within Federal
mineral leaseholds.''.
SEC. 714. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON PUBLIC LAND.
(a) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of the Interior shall submit to the Committee
on Natural Resources of the House of Representatives and the Committee
on Energy and Natural Resources of the Senate a report on a recommended
framework for managing geological carbon sequestration activities on
public land.
(b) Contents.--The report required by subsection (a) shall include
the following:
(1) Recommended criteria for identifying candidate
geological sequestration sites in each of the following types
of geological settings:
(A) Operating oil and gas fields.
(B) Depleted oil and gas fields.
(C) Unmineable coal seams.
(D) Deep saline formations.
(E) Deep geological systems that may be used as
engineered reservoirs to extract economical quantities
of heat from geothermal resources of low permeability
or porosity.
(F) Deep geological systems containing basalt
formations.
(G) Coalbeds being used for methane recovery.
(2) A proposed regulatory framework for the leasing of
public land or an interest in public land for the long-term
geological sequestration of carbon dioxide, which includes an
assessment of options to ensure that the United States receives
fair market value for the use of public land or an interest in
public land for geological sequestration.
(3) A proposed procedure for ensuring that any geological
carbon sequestration activities on public land--
(A) provide for public review and comment from all
interested persons; and
(B) protect the quality of natural and cultural
resources of the public land overlaying a geological
sequestration site.
(4) A description of the status of Federal leasehold or
Federal mineral estate liability issues related to the
geological subsurface trespass of or caused by carbon dioxide
stored in public land, including any relevant experience from
enhanced oil recovery using carbon dioxide on public land.
(5) Recommendations for additional legislation that may be
required to ensure that public land management and leasing laws
are adequate to accommodate the long-term geological
sequestration of carbon dioxide.
(6) An identification of the legal and regulatory issues
specific to carbon dioxide sequestration on land in cases in
which title to mineral resources is held by the United States
but title to the surface estate is not held by the United
States.
(7)(A) An identification of the issues specific to the
issuance of pipeline rights-of-way on public land under the
Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) for
natural or anthropogenic carbon dioxide.
(B) Recommendations for additional legislation that may be
required to clarify the appropriate framework for issuing
rights-of-way for carbon dioxide pipelines on public land.
(c) Consultation With Other Agencies.--In preparing the report
under this section, the Secretary of the Interior shall coordinate
with--
(1) the Administrator of the Environmental Protection
Agency;
(2) the Secretary of Energy; and
(3) the heads of other appropriate agencies.
(d) Compliance With Safe Drinking Water Act.--The Secretary shall
ensure that all recommendations developed under this section are in
compliance with all Federal environmental laws, including the Safe
Drinking Water Act (42 U.S.C. 300f et seq.) and regulations under that
Act.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A--Management Improvements
SEC. 801. NATIONAL MEDIA CAMPAIGN.
(a) In General.--The Secretary, acting through the Assistant
Secretary for Energy Efficiency and Renewable Energy (referred to in
this section as the ``Secretary''), shall develop and conduct a
national media campaign--
(1) to increase energy efficiency throughout the economy of
the United States during the 10-year period beginning on the
date of enactment of this Act;
(2) to promote the national security benefits associated
with increased energy efficiency; and
(3) to decrease oil consumption in the United States during
the 10-year period beginning on the date of enactment of this
Act.
(b) Contract With Entity.--The Secretary shall carry out subsection
(a) directly or through--
(1) competitively bid contracts with 1 or more nationally
recognized media firms for the development and distribution of
monthly television, radio, and newspaper public service
announcements; or
(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit organizations
for the funding, development, and distribution of monthly
television, radio, and newspaper public service announcements.
(c) Use of Funds.--
(1) In general.--Amounts made available to carry out this
section shall be used for--
(A) advertising costs, including--
(i) the purchase of media time and space;
(ii) creative and talent costs;
(iii) testing and evaluation of
advertising; and
(iv) evaluation of the effectiveness of the
media campaign; and
(B) administrative costs, including operational and
management expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of funds made
available under subsection (e) for each fiscal year for the
advertising functions specified under paragraph (1)(A).
(d) Reports.--The Secretary shall annually submit to Congress a
report that describes--
(1) the strategy of the national media campaign and whether
specific objectives of the campaign were accomplished,
including--
(A) determinations concerning the rate of change of
energy consumption, in both absolute and per capita
terms; and
(B) an evaluation that enables consideration of
whether the media campaign contributed to reduction of
energy consumption;
(2) steps taken to ensure that the national media campaign
operates in an effective and efficient manner consistent with
the overall strategy and focus of the campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase advertising time
and space and eliminate the potential for waste, fraud, and
abuse; and
(5) all contracts or cooperative agreements entered into
with a corporation, partnership, or individual working on
behalf of the national media campaign.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $5,000,000 for each of fiscal years 2008
through 2012.
(2) Decreased oil consumption.--The Secretary shall use not
less than 50 percent of the amount that is made available under
this section for each fiscal year to develop and conduct a
national media campaign to decrease oil consumption in the
United States over the next decade.
SEC. 802. ALASKA NATURAL GAS PIPELINE ADMINISTRATION.
Section 106 of the Alaska Natural Gas Pipeline Act (15 U.S.C. 720d)
is amended by adding at the end the following:
``(h) Administration.--
``(1) Personnel appointments.--
``(A) In general.--The Federal Coordinator may
appoint and terminate such personnel as the Federal
Coordinator determines to be appropriate.
``(B) Authority of federal coordinator.--Personnel
appointed by the Federal Coordinator under subparagraph
(A) shall be appointed without regard to the provisions
of title 5, United States Code, governing appointments
in the competitive service.
``(2) Compensation.--
``(A) In general.--Subject to subparagraph (B),
personnel appointed by the Federal Coordinator under
paragraph (1)(A) shall be paid without regard to the
provisions of chapter 51 and subchapter III of chapter
53 of title 5, United States Code (relating to
classification and General Schedule pay rates).
``(B) Maximum level of compensation.--The rate of
pay for personnel appointed by the Federal Coordinator
under paragraph (1)(A) shall not exceed the maximum
level of rate payable for level III of the Executive
Schedule (5 U.S.C. 5314).
``(C) Allowances.--Section 5941 of title 5, United
States Code, shall apply to personnel appointed by the
Federal Coordinator under paragraph (1)(A).
``(3) Temporary services.--
``(A) In general.--The Federal Coordinator may
procure temporary and intermittent services in
accordance with section 3109(b) of title 5, United
States Code.
``(B) Maximum level of compensation.--The level of
compensation of an individual employed on a temporary
or intermittent basis under subparagraph (A) shall not
exceed the maximum level of rate payable for level III
of the Executive Schedule (5 U.S.C. 5314).
``(4) Fees, charges, and commissions.--
``(A) In general.--With respect to the duties of
the Federal Coordinator, as described in this Act, the
Federal Coordinator shall have similar authority to
establish, change, and abolish reasonable filing and
service fees, charges, and commissions, require
deposits of payments, and provide refunds as provided
to the Secretary of the Interior in section 304 of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1734).
``(B) Authority of secretary of the interior.--
Subparagraph (A) shall not affect the authority of the
Secretary of the Interior to establish, change, and
abolish reasonable filing and service fees, charges,
and commissions, require deposits of payments, and
provide refunds under section 304 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1734).
``(C) Use of funds.--The Federal Coordinator is
authorized to use, without further appropriation,
amounts collected under subparagraph (A) to carry out
this section.''.
SEC. 803. RENEWABLE ENERGY DEPLOYMENT.
(a) Definitions.--In this section:
(1) Alaska small hydroelectric power.--The term ``Alaska
small hydroelectric power'' means power that--
(A) is generated--
(i) in the State of Alaska;
(ii) without the use of a dam or
impoundment of water; and
(iii) through the use of--
(I) a lake tap (but not a perched
alpine lake); or
(II) a run-of-river screened at the
point of diversion; and
(B) has a nameplate capacity rating of a wattage
that is not more than 15 megawatts.
(2) Eligible applicant.--The term ``eligible applicant''
means any--
(A) governmental entity;
(B) private utility;
(C) public utility;
(D) municipal utility;
(E) cooperative utility;
(F) Indian tribes; and
(G) Regional Corporation (as defined in section 3
of the Alaska Native Claims Settlement Act (43 U.S.C.
1602)).
(3) Ocean energy.--
(A) Inclusions.--The term ``ocean energy'' includes
current, wave, and tidal energy.
(B) Exclusion.--The term ``ocean energy'' excludes
thermal energy.
(4) Renewable energy project.--The term ``renewable energy
project'' means a project--
(A) for the commercial generation of electricity;
and
(B) that generates electricity from--
(i) solar, wind, or geothermal energy or
ocean energy;
(ii) biomass (as defined in section 203(b)
of the Energy Policy Act of 2005 (42 U.S.C.
15852(b)));
(iii) landfill gas; or
(iv) Alaska small hydroelectric power.
(b) Renewable Energy Construction Grants.--
(1) In general.--The Secretary shall use amounts
appropriated under this section to make grants for use in
carrying out renewable energy projects.
(2) Criteria.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall set forth criteria
for use in awarding grants under this section.
(3) Application.--To receive a grant from the Secretary
under paragraph (1), an eligible applicant shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require,
including a written assurance that--
(A) all laborers and mechanics employed by
contractors or subcontractors during construction,
alteration, or repair that is financed, in whole or in
part, by a grant under this section shall be paid wages
at rates not less than those prevailing on similar
construction in the locality, as determined by the
Secretary of Labor in accordance with sections 3141-
3144, 3146, and 3147 of title 40, United States Code;
and
(B) the Secretary of Labor shall, with respect to
the labor standards described in this paragraph, have
the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (5 U.S.C. App.) and section
3145 of title 40, United States Code.
(4) Non-federal share.--Each eligible applicant that
receives a grant under this subsection shall contribute to the
total cost of the renewable energy project constructed by the
eligible applicant an amount not less than 50 percent of the
total cost of the project.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Fund such sums as are necessary to carry out this
section.
SEC. 804. COORDINATION OF PLANNED REFINERY OUTAGES.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Energy Information Administration.
(2) Planned refinery outage.--
(A) In general.--The term ``planned refinery
outage'' means a removal, scheduled before the date on
which the removal occurs, of a refinery, or any unit of
a refinery, from service for maintenance, repair, or
modification.
(B) Exclusion.--The term ``planned refinery
outage'' does not include any necessary and unplanned
removal of a refinery, or any unit of a refinery, from
service as a result of a component failure, safety
hazard, emergency, or action reasonably anticipated to
be necessary to prevent such events.
(3) Refined petroleum product.--The term ``refined
petroleum product'' means any gasoline, diesel fuel, fuel oil,
lubricating oil, liquid petroleum gas, or other petroleum
distillate that is produced through the refining or processing
of crude oil or an oil derived from tar sands, shale, or coal.
(4) Refinery.--The term ``refinery'' means a facility used
in the production of a refined petroleum product through
distillation, cracking, or any other process.
(b) Review and Analysis of Available Information.--The
Administrator shall, on an ongoing basis--
(1) review information on refinery outages that is
available from commercial reporting services;
(2) analyze that information to determine whether the
scheduling of a refinery outage may nationally or regionally
substantially affect the price or supply of any refined
petroleum product by--
(A) decreasing the production of the refined
petroleum product; and
(B) causing or contributing to a retail or
wholesale supply shortage or disruption;
(3) not less frequently than twice each year, submit to the
Secretary a report describing the results of the review and
analysis under paragraphs (1) and (2); and
(4) specifically alert the Secretary of any refinery outage
that the Administrator determines may nationally or regionally
substantially affect the price or supply of a refined petroleum
product.
(c) Action by Secretary.--On a determination by the Secretary,
based on a report or alert under paragraph (3) or (4) of subsection
(b), that a refinery outage may affect the price or supply of a refined
petroleum product, the Secretary shall make available to refinery
operators information on planned refinery outages to encourage
reductions of the quantity of refinery capacity that is out of service
at any time.
(d) Limitation.--Nothing in this section shall alter any existing
legal obligation or responsibility of a refinery operator, or create
any legal right of action, nor shall this section authorize the
Secretary--
(1) to prohibit a refinery operator from conducting a
planned refinery outage; or
(2) to require a refinery operator to continue to operate a
refinery.
SEC. 805. ASSESSMENT OF RESOURCES.
(a) 5-Year Plan.--
(1) Establishment.--The Administrator of the Energy
Information Administration (referred to in this section as the
``Administrator'') shall establish a 5-year plan to enhance the
quality and scope of the data collection necessary to ensure
the scope, accuracy, and timeliness of the information needed
for efficient functioning of energy markets and related
financial operations.
(2) Requirement.--In establishing the plan under paragraph
(1), the Administrator shall pay particular attention to--
(A) data series terminated because of budget
constraints;
(B) data on demand response;
(C) timely data series of State-level information;
(D) improvements in the area of oil and gas data;
(E) improvements in data on solid byproducts from
coal-based energy-producing facilities; and
(F) the ability to meet applicable deadlines under
Federal law (including regulations) to provide data
required by Congress.
(b) Submission to Congress.--The Administrator shall submit to
Congress the plan established under subsection (a), including a
description of any improvements needed to enhance the ability of the
Administrator to collect and process energy information in a manner
consistent with the needs of energy markets.
(c) Guidelines.--
(1) In general.--The Administrator shall--
(A) establish guidelines to ensure the quality,
comparability, and scope of State energy data,
including data on energy production and consumption by
product and sector and renewable and alternative
sources, required to provide a comprehensive, accurate
energy profile at the State level;
(B) share company-level data collected at the State
level with each State involved, in a manner consistent
with the legal authorities, confidentiality
protections, and stated uses in effect at the time the
data were collected, subject to the condition that the
State shall agree to reasonable requirements for use of
the data, as the Administrator may require;
(C) assess any existing gaps in data obtained and
compiled by the Energy Information Administration; and
(D) evaluate the most cost-effective ways to
address any data quality and quantity issues in
conjunction with State officials.
(2) Consultation.--The Administrator shall consult with
State officials and the Federal Energy Regulatory Commission on
a regular basis in--
(A) establishing guidelines and determining the
scope of State-level data under paragraph (1); and
(B) exploring ways to address data needs and serve
data uses.
(d) Assessment of State Data Needs.--Not later than 1 year after
the date of enactment of this Act, the Administrator shall submit to
Congress an assessment of State-level data needs, including a plan to
address the needs.
(e) Authorization of Appropriations.--In addition to any other
amounts made available to the Administrator, there are authorized to be
appropriated to the Administrator to carry out this section--
(1) $10,000,000 for fiscal year 2008;
(2) $10,000,000 for fiscal year 2009;
(3) $10,000,000 for fiscal year 2010;
(4) $15,000,000 for fiscal year 2011;
(5) $20,000,000 for fiscal year 2012; and
(6) such sums as are necessary for subsequent fiscal years.
SEC. 806. SENSE OF CONGRESS RELATING TO THE USE OF RENEWABLE RESOURCES
TO GENERATE ENERGY.
(a) Findings.--Congress finds that--
(1) the United States has a quantity of renewable energy
resources that is sufficient to supply a significant portion of
the energy needs of the United States;
(2) the agricultural, forestry, and working land of the
United States can help ensure a sustainable domestic energy
system;
(3) accelerated development and use of renewable energy
technologies provide numerous benefits to the United States,
including improved national security, improved balance of
payments, healthier rural economies, improved environmental
quality, and abundant, reliable, and affordable energy for all
citizens of the United States;
(4) the production of transportation fuels from renewable
energy would help the United States meet rapidly growing
domestic and global energy demands, reduce the dependence of
the United States on energy imported from volatile regions of
the world that are politically unstable, stabilize the cost and
availability of energy, and safeguard the economy and security
of the United States;
(5) increased energy production from domestic renewable
resources would attract substantial new investments in energy
infrastructure, create economic growth, develop new jobs for
the citizens of the United States, and increase the income for
farm, ranch, and forestry jobs in the rural regions of the
United States;
(6) increased use of renewable energy is practical and can
be cost effective with the implementation of supportive
policies and proper incentives to stimulate markets and
infrastructure; and
(7) public policies aimed at enhancing renewable energy
production and accelerating technological improvements will
further reduce energy costs over time and increase market
demand.
(b) Sense of Congress.--It is the sense of Congress that it is the
goal of the United States that, not later than January 1, 2025, the
agricultural, forestry, and working land of the United States should--
(1) provide from renewable resources not less than 25
percent of the total energy consumed in the United States; and
(2) continue to produce safe, abundant, and affordable
food, feed, and fiber.
SEC. 807. GEOTHERMAL ASSESSMENT, EXPLORATION INFORMATION, AND PRIORITY
ACTIVITIES.
(a) In General.--Not later than January 1, 2012, the Secretary of
the Interior, acting through the Director of the United States
Geological Survey, shall--
(1) complete a comprehensive nationwide geothermal resource
assessment that examines the full range of geothermal resources
in the United States; and
(2) submit to the the Committee on Natural Resources of the
House of Representatives and the Committee on Energy and
Natural Resources of the Senate a report describing the results
of the assessment.
(b) Periodic Updates.--At least once every 10 years, the Secretary
shall update the national assessment required under this section to
support public and private sector decisionmaking.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of the Interior to carry out this
section--
(1) $15,000,000 for each of fiscal years 2008 through 2012;
and
(2) such sums as are necessary for each of fiscal years
2013 through 2022.
Subtitle B--Prohibitions on Market Manipulation and False Information
SEC. 811. PROHIBITION ON MARKET MANIPULATION.
It is unlawful for any person, directly or indirectly, to use or
employ, in connection with the purchase or sale of crude oil gasoline
or petroleum distillates at wholesale, any manipulative or deceptive
device or contrivance, in contravention of such rules and regulations
as the Federal Trade Commission may prescribe as necessary or
appropriate in the public interest or for the protection of United
States citizens.
SEC. 812. PROHIBITION ON FALSE INFORMATION.
It is unlawful for any person to report information related to the
wholesale price of crude oil gasoline or petroleum distillates to a
Federal department or agency if--
(1) the person knew, or reasonably should have known, the
information to be false or misleading;
(2) the information was required by law to be reported; and
(3) the person intended the false or misleading data to
affect data compiled by the department or agency for
statistical or analytical purposes with respect to the market
for crude oil, gasoline, or petroleum distillates.
SEC. 813. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Enforcement.--This subtitle shall be enforced by the Federal
Trade Commission in the same manner, by the same means, and with the
same jurisdiction as though all applicable terms of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a
part of this subtitle.
(b) Violation Is Treated as Unfair or Deceptive Act or Practice.--
The violation of any provision of this subtitle shall be treated as an
unfair or deceptive act or practice proscribed under a rule issued
under section 18(a)(1)(B) of the Federal Trade Commission Act (15
U.S.C. 57a(a)(1)(B)).
SEC. 814. PENALTIES.
(a) Civil Penalty.--In addition to any penalty applicable under the
Federal Trade Commission Act (15 U.S.C. 41 et seq.), any supplier that
violates section 811 or 812 shall be punishable by a civil penalty of
not more than $1,000,000.
(b) Method.--The penalties provided by subsection (a) shall be
obtained in the same manner as civil penalties imposed under section 5
of the Federal Trade Commission Act (15 U.S.C. 45).
(c) Multiple Offenses; Mitigating Factors.--In assessing the
penalty provided by subsection (a)--
(1) each day of a continuing violation shall be considered
a separate violation; and
(2) the court shall take into consideration, among other
factors--
(A) the seriousness of the violation; and
(B) the efforts of the person committing the
violation to remedy the harm caused by the violation in
a timely manner.
SEC. 815. EFFECT ON OTHER LAWS.
(a) Other Authority of the Commission.--Nothing in this subtitle
limits or affects the authority of the Federal Trade Commission to
bring an enforcement action or take any other measure under the Federal
Trade Commission Act (15 U.S.C. 41 et seq.) or any other provision of
law.
(b) Antitrust Law.--Nothing in this subtitle shall be construed to
modify, impair, or supersede the operation of any of the antitrust
laws. For purposes of this subsection, the term ``antitrust laws''
shall have the meaning given it in subsection (a) of the first section
of the Clayton Act (15 U.S.C. 12), except that it includes section 5 of
the Federal Trade Commission Act (15 U.S.C. 45) to the extent that such
section 5 applies to unfair methods of competition.
(c) State Law.--Nothing in this subtitle preempts any State law.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
SEC. 901. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Energy and Commerce of the House of
Representatives; and
(B) the Committee on Foreign Relations, the
Committee on Energy and Natural Resources, the
Committee on Environment and Public Works of the
Senate, and the Committee on Commerce, Science, and
Transportation.
(2) Clean and efficient energy technology.--The term
``clean and efficient energy technology'' means an energy
supply or end-use technology that, compared to a similar
technology already in widespread commercial use in a recipient
country, will--
(A) reduce emissions of greenhouse gases; or
(B)(i) increase efficiency of energy production; or
(ii) decrease intensity of energy usage.
(3) Greenhouse gas.--The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons; or
(F) sulfur hexafluoride.
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
SEC. 911. UNITED STATES ASSISTANCE FOR DEVELOPING COUNTRIES.
(a) Assistance Authorized.--The Administrator of the United States
Agency for International Development shall support policies and
programs in developing countries that promote clean and efficient
energy technologies--
(1) to produce the necessary market conditions for the
private sector delivery of energy and environmental management
services;
(2) to create an environment that is conducive to accepting
clean and efficient energy technologies that support the
overall purpose of reducing greenhouse gas emissions,
including--
(A) improving policy, legal, and regulatory
frameworks;
(B) increasing institutional abilities to provide
energy and environmental management services; and
(C) increasing public awareness and participation
in the decision-making of delivering energy and
environmental management services; and
(3) to promote the use of American-made clean and efficient
energy technologies, products, and energy and environmental
management services.
(b) Report.--The Administrator of the United States Agency for
International Development shall submit to the appropriate congressional
committees an annual report on the implementation of this section for
each of the fiscal years 2008 through 2012.
(c) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated to the Administrator of the
United States Agency for International Development $200,000,000 for
each of the fiscal years 2008 through 2012.
SEC. 912. UNITED STATES EXPORTS AND OUTREACH PROGRAMS FOR INDIA, CHINA,
AND OTHER COUNTRIES.
(a) Assistance Authorized.--The Secretary of Commerce shall direct
the United States and Foreign Commercial Service to expand or create a
corps of the Foreign Commercial Service officers to promote United
States exports in clean and efficient energy technologies and build the
capacity of government officials in India, China, and any other country
the Secretary of Commerce determines appropriate, to become more
familiar with the available technologies--
(1) by assigning or training Foreign Commercial Service
attaches, who have expertise in clean and efficient energy
technologies from the United States, to embark on business
development and outreach efforts to such countries; and
(2) by deploying the attaches described in paragraph (1) to
educate provincial, state, and local government officials in
such countries on the variety of United States-based
technologies in clean and efficient energy technologies for the
purposes of promoting United States exports and reducing global
greenhouse gas emissions.
(b) Report.--The Secretary of Commerce shall submit to the
appropriate congressional committees an annual report on the
implementation of this section for each of the fiscal years 2008
through 2012.
(c) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated to the Secretary of Commerce
such sums as may be necessary for each of the fiscal years 2008 through
2012.
SEC. 913. UNITED STATES TRADE MISSIONS TO ENCOURAGE PRIVATE SECTOR
TRADE AND INVESTMENT.
(a) Assistance Authorized.--The Secretary of Commerce shall direct
the International Trade Administration to expand or create trade
missions to and from the United States to encourage private sector
trade and investment in clean and efficient energy technologies--
(1) by organizing and facilitating trade missions to
foreign countries and by matching United States private sector
companies with opportunities in foreign markets so that clean
and efficient energy technologies can help to combat increases
in global greenhouse gas emissions; and
(2) by creating reverse trade missions in which the
Department of Commerce facilitates the meeting of foreign
private and public sector organizations with private sector
companies in the United States for the purpose of showcasing
clean and efficient energy technologies in use or in
development that could be exported to other countries.
(b) Report.--The Secretary of Commerce shall submit to the
appropriate congressional committees an annual report on the
implementation of this section for each of the fiscal years 2008
through 2012.
(c) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated to the Secretary of Commerce
such sums as may be necessary for each of the fiscal years 2008 through
2012.
SEC. 914. ACTIONS BY OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) Sense of Congress.--It is the sense of Congress that the
Overseas Private Investment Corporation should promote greater
investment in clean and efficient energy technologies by--
(1) proactively reaching out to United States companies
that are interested in investing in clean and efficient energy
technologies in countries that are significant contributors to
global greenhouse gas emissions;
(2) giving preferential treatment to the evaluation and
awarding of projects that involve the investment or utilization
of clean and efficient energy technologies; and
(3) providing greater flexibility in supporting projects
that involve the investment or utilization of clean and
efficient energy technologies, including financing, insurance,
and other assistance.
(b) Report.--The Overseas Private Investment Corporation shall
include in its annual report required under section 240A of the Foreign
Assistance Act of 1961 (22 U.S.C. 2200a)--
(1) a description of the activities carried out to
implement this section; or
(2) if the Corporation did not carry out any activities to
implement this section, an explanation of the reasons therefor.
SEC. 915. ACTIONS BY UNITED STATES TRADE AND DEVELOPMENT AGENCY.
(a) Assistance Authorized.--The Director of the Trade and
Development Agency shall establish or support policies that--
(1) proactively seek opportunities to fund projects that
involve the utilization of clean and efficient energy
technologies, including in trade capacity building and capital
investment projects;
(2) where appropriate, advance the utilization of clean and
efficient energy technologies, particularly to countries that
have the potential for significant reduction in greenhouse gas
emissions; and
(3) recruit and retain individuals with appropriate
expertise or experience in clean, renewable, and efficient
energy technologies to identify and evaluate opportunities for
projects that involve clean and efficient energy technologies
and services.
(b) Report.--The President shall include in the annual report on
the activities of the Trade and Development Agency required under
section 661(d) of the Foreign Assistance Act of 1961 (22 U.S.C.
2421(d)) a description of the activities carried out to implement this
section.
SEC. 916. DEPLOYMENT OF INTERNATIONAL CLEAN AND EFFICIENT ENERGY
TECHNOLOGIES AND INVESTMENT IN GLOBAL ENERGY MARKETS.
(a) Task Force.--
(1) Establishment.--Not later than 90 days after the date
of the enactment of this Act, the President shall establish a
Task Force on International Cooperation for Clean and Efficient
Energy Technologies (in this section referred to as the ``Task
Force'').
(2) Composition.--The Task Force shall be composed of
representatives, appointed by the head of the respective
Federal department or agency, of--
(A) the Council on Environmental Quality;
(B) the Department of Energy;
(C) the Department of Commerce;
(D) the Department of the Treasury;
(E) the Department of State;
(F) the Environmental Protection Agency;
(G) the United States Agency for International
Development;
(H) the Export-Import Bank of the United States;
(I) the Overseas Private Investment Corporation:
(J) the Trade and Development Agency;
(K) the Small Business Administration;
(L) the Office of the United States Trade
Representative; and
(M) other Federal departments and agencies, as
determined by the President.
(3) Chairperson.--The President shall designate a
Chairperson or Co-Chairpersons of the Task Force.
(4) Duties.--The Task Force--
(A) shall develop and assist in the implementation
of the strategy required under subsection (c); and
(B)(i) shall analyze technology, policy, and market
opportunities for the development, demonstration, and
deployment of clean and efficient energy technologies
on an international basis; and
(ii) shall examine relevant trade, tax, finance,
international, and other policy issues to assess which
policies, in the United States and in developing
countries, would help open markets and improve the
export of clean and efficient energy technologies from
the United States.
(5) Termination.--The Task Force, including any working
group established by the Task Force pursuant to subsection (b),
shall terminate 12 years after the date of the enactment of
this Act.
(b) Working Groups.--
(1) Establishment.--The Task Force--
(A) shall establish an Interagency Working Group on
the Export of Clean and Efficient Energy Technologies
(in this section referred to as the ``Interagency
Working Group''); and
(B) may establish other working groups as may be
necessary to carry out this section.
(2) Composition.--The Interagency Working Group shall be
composed of--
(A) the Secretary of Energy, the Secretary of
Commerce, and the Secretary of State, who shall serve
as Co-Chairpersons of the Interagency Working Group;
and
(B) other members, as determined by the Chairperson
or Co-Chairpersons of the Task Force.
(3) Duties.--The Interagency Working Group shall coordinate
the resources and relevant programs of the Department of
Energy, the Department of Commerce, the Department of State,
and other relevant Federal departments and agencies to support
the export of clean and efficient energy technologies developed
or demonstrated in the United States to other countries and the
deployment of such clean and efficient energy technologies in
such other countries.
(4) Interagency center.--The Interagency Working Group--
(A) shall establish an Interagency Center on the
Export of Clean and Efficient Energy Technologies (in
this section referred to as the ``Interagency Center'')
to assist the Interagency Working Group in carrying out
its duties required under paragraph (3); and
(B) shall locate the Interagency Center at a site
agreed upon by the Co-Chairpersons of the Interagency
Working Group, with the approval of Chairperson or Co-
Chairpersons of the Task Force.
(c) Strategy.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, the Task Force shall develop and
submit to the President and the appropriate congressional
committees a strategy to--
(A) support the development and implementation of
programs, policies, and initiatives in developing
countries to promote the adoption and deployment of
clean and efficient energy technologies, with an
emphasis on those developing countries that are
expected to experience the most significant growth in
energy production and use over the next 20 years;
(B) open and expand clean and efficient energy
technology markets and facilitate the export of clean
and efficient energy technologies to developing
countries, in a manner consistent with United States
obligations as member of the World Trade Organization;
(C) integrate into the foreign policy objectives of
the United States the promotion of--
(i) the deployment of clean and efficient
energy technologies and the reduction of
greenhouse gas emissions in developing
countries; and
(ii) the export of clean and efficient
energy technologies; and
(D) develop financial mechanisms and instruments,
including securities that mitigate the political and
foreign exchange risks of uses that are consistent with
the foreign policy objectives of the United States by
combining the private sector market and government
enhancements, that--
(i) are cost-effective; and
(ii) facilitate private capital investment
in clean and efficient energy technology
projects in developing countries.
(2) Updates.--Not later than 3 years after the date of
submission of the strategy under paragraph (1), and every 3
years thereafter, the Task Force shall update the strategy in
accordance with the requirements of paragraph (1).
(d) Report.--
(1) In general.--Not later than 3 years after the date of
submission of the strategy under subsection (c)(1), and every 3
years thereafter, the President shall transmit to the
appropriate congressional committees a report on the
implementation of this section for the prior 3-year period.
(2) Matters to be included.--The report required under
paragraph (1) shall include the following:
(A) The update of the strategy required under
subsection (c)(2) and a description of the actions
taken by the Task Force to assist in the implementation
of the strategy.
(B) A description of actions taken by the Task
Force to carry out the duties required under subsection
(a)(4)(B).
(C) A description of assistance provided under this
section.
(D) The results of programs, projects, and
activities carried out under this section.
(E) A description of priorities for promoting the
diffusion and adoption of clean and efficient energy
technologies and strategies in developing countries,
taking into account economic and security interests of
the United States and opportunities for the export of
technology of the United States.
(F) Recommendations to the heads of appropriate
Federal departments and agencies on methods to
streamline Federal programs and policies to improve the
role of such Federal departments and agencies in the
development, demonstration, and deployment of clean and
efficient energy technologies on an international
basis.
(G) Strategies to integrate representatives of the
private sector and other interested groups on the
export and deployment of clean and efficient energy
technologies.
(H) A description of programs to disseminate
information to the private sector and the public on
clean and efficient energy technologies and
opportunities to transfer such clean and efficient
energy technologies.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2008 through 2020.
SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION.
(a) Findings.--Congress finds that--
(1) it is in the highest national security interests of the
United States to develop renewable energy sources;
(2) the State of Israel is a steadfast ally of the United
States;
(3) the special relationship between the United States and
Israel is manifested in a variety of cooperative scientific
research and development programs, such as--
(A) the United States-Israel Binational Science
Foundation; and
(B) the United States-Israel Binational Industrial
Research and Development Foundation;
(4) those programs have made possible many scientific,
technological, and commercial breakthroughs in the fields of
life sciences, medicine, bioengineering, agriculture,
biotechnology, communications, and others;
(5) on February 1, 1996, the Secretary of Energy (referred
to in this section as the ``Secretary'') and the Israeli
Minister of Energy and Infrastructure signed an agreement to
establish a framework for collaboration between the United
States and Israel in energy research and development
activities;
(6) Israeli scientists and engineers are at the forefront
of research and development in the field of renewable energy
sources; and
(7) enhanced cooperation between the United States and
Israel for the purpose of research and development of renewable
energy sources would be in the national interests of both
countries.
(b) Grant Program.--
(1) Establishment.--In implementing the agreement entitled
the ``Agreement between the Department of Energy of the United
States of America and the Ministry of Energy and Infrastructure
of Israel Concerning Energy Cooperation'', dated February 1,
1996, the Secretary shall establish a grant program in
accordance with the requirements of sections 988 and 989 of the
Energy Policy Act of 2005 (42 U.S.C. 16352, 16353) to support
research, development, and commercialization of renewable
energy or energy efficiency.
(2) Types of energy.--In carrying out paragraph (1), the
Secretary may make grants to promote--
(A) solar energy;
(B) biomass energy;
(C) energy efficiency;
(D) wind energy;
(E) geothermal energy;
(F) wave and tidal energy; and
(G) advanced battery technology.
(3) Eligible applicants.--An applicant shall be eligible to
receive a grant under this subsection if the project of the
applicant--
(A) addresses a requirement in the area of improved
energy efficiency or renewable energy sources, as
determined by the Secretary; and
(B) is a joint venture between--
(i)(I) a for-profit business entity,
academic institution, National Laboratory (as
defined in section 2 of the Energy Policy Act
of 2005 (42 U.S.C. 15801)), or nonprofit entity
in the United States; and
(II) a for-profit business entity, academic
institution, or nonprofit entity in Israel; or
(ii)(I) the Federal Government; and
(II) the Government of Israel.
(4) Applications.--To be eligible to receive a grant under
this subsection, an applicant shall submit to the Secretary an
application for the grant in accordance with procedures
established by the Secretary, in consultation with the advisory
board established under paragraph (5).
(5) Advisory board.--
(A) Establishment.--The Secretary shall establish
an advisory board--
(i) to monitor the method by which grants
are awarded under this subsection; and
(ii) to provide to the Secretary periodic
performance reviews of actions taken to carry
out this subsection.
(B) Composition.--The advisory board established
under subparagraph (A) shall be composed of 3 members,
to be appointed by the Secretary, of whom--
(i) 1 shall be a representative of the
Federal Government;
(ii) 1 shall be selected from a list of
nominees provided by the United States-Israel
Binational Science Foundation; and
(iii) 1 shall be selected from a list of
nominees provided by the United States-Israel
Binational Industrial Research and Development
Foundation.
(6) Contributed funds.--Notwithstanding section 3302 of
title 31, United States Code, the Secretary may accept, retain,
and use funds contributed by any person, government entity, or
organization for purposes of carrying out this subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(7) Report.--Not later than 180 days after the date of
completion of a project for which a grant is provided under
this subsection, the grant recipient shall submit to the
Secretary a report that contains--
(A) a description of the method by which the
recipient used the grant funds; and
(B) an evaluation of the level of success of each
project funded by the grant.
(8) Classification.--Grants shall be awarded under this
subsection only for projects that are considered to be
unclassified by both the United States and Israel.
(c) Termination.--The grant program and the advisory committee
established under this section terminate on the date that is 7 years
after the date of enactment of this Act.
(d) Authorization of Appropriations.--The Secretary shall use
amounts authorized to be appropriated under section 931 of the Energy
Policy Act of 2005 (42 U.S.C. 16231) to carry out this section.
Subtitle B--International Clean Energy Foundation
SEC. 921. DEFINITIONS.
In this subtitle:
(1) Board.--The term ``Board'' means the Board of Directors
of the Foundation established pursuant to section 922(c).
(2) Chief executive officer.--The term ``Chief Executive
Officer'' means the chief executive officer of the Foundation
appointed pursuant to section 922(b).
(3) Foundation.--The term ``Foundation'' means the
International Clean Energy Foundation established by section
922(a).
SEC. 922. ESTABLISHMENT AND MANAGEMENT OF FOUNDATION.
(a) Establishment.--
(1) In general.--There is established in the executive
branch a foundation to be known as the ``International Clean
Energy Foundation'' that shall be responsible for carrying out
the provisions of this subtitle. The Foundation shall be a
government corporation, as defined in section 103 of title 5,
United States Code.
(2) Board of directors.--The Foundation shall be governed
by a Board of Directors in accordance with subsection (c).
(3) Intent of congress.--It is the intent of Congress, in
establishing the structure of the Foundation set forth in this
subsection, to create an entity that serves the long-term
foreign policy and energy security goals of reducing global
greenhouse gas emissions.
(b) Chief Executive Officer.--
(1) In general.--There shall be in the Foundation a Chief
Executive Officer who shall be responsible for the management
of the Foundation.
(2) Appointment.--The Chief Executive Officer shall be
appointed by the Board, with the advice and consent of the
Senate, and shall be a recognized leader in clean and efficient
energy technologies and climate change and shall have
experience in energy security, business, or foreign policy,
chosen on the basis of a rigorous search.
(3) Relationship to board.--The Chief Executive Officer
shall report to, and be under the direct authority of, the
Board.
(4) Compensation and rank.--
(A) In general.--The Chief Executive Officer shall
be compensated at the rate provided for level III of
the Executive Schedule under section 5314 of title 5,
United States Code.
(B) Amendment.--Section 5314 of title 5, United
States Code, is amended by adding at the end the
following:
``Chief Executive Officer, International Clean Energy
Foundation.''.
(C) Authorities and duties.--The Chief Executive
Officer shall be responsible for the management of the
Foundation and shall exercise the powers and discharge
the duties of the Foundation.
(D) Authority to appoint officers.--In consultation
and with approval of the Board, the Chief Executive
Officer shall appoint all officers of the Foundation.
(c) Board of Directors.--
(1) Establishment.--There shall be in the Foundation a
Board of Directors.
(2) Duties.--The Board shall perform the functions
specified to be carried out by the Board in this subtitle and
may prescribe, amend, and repeal bylaws, rules, regulations,
and procedures governing the manner in which the business of
the Foundation may be conducted and in which the powers granted
to it by law may be exercised.
(3) Membership.--The Board shall consist of--
(A) the Secretary of State (or the Secretary's
designee), the Secretary of Energy (or the Secretary's
designee), and the Administrator of the United States
Agency for International Development (or the
Administrator's designee); and
(B) four other individuals with relevant experience
in matters relating to energy security (such as
individuals who represent institutions of energy
policy, business organizations, foreign policy
organizations, or other relevant organizations) who
shall be appointed by the President, by and with the
advice and consent of the Senate, of whom--
(i) one individual shall be appointed from
among a list of individuals submitted by the
majority leader of the House of
Representatives;
(ii) one individual shall be appointed from
among a list of individuals submitted by the
minority leader of the House of
Representatives;
(iii) one individual shall be appointed
from among a list of individuals submitted by
the majority leader of the Senate; and
(iv) one individual shall be appointed from
among a list of individuals submitted by the
minority leader of the Senate.
(4) Chief executive officer.--The Chief Executive Officer
of the Foundation shall serve as a nonvoting, ex officio member
of the Board.
(5) Terms.--
(A) Officers of the federal government.--Each
member of the Board described in paragraph (3)(A) shall
serve for a term that is concurrent with the term of
service of the individual's position as an officer
within the other Federal department or agency.
(B) Other members.--Each member of the Board
described in paragraph (3)(B) shall be appointed for a
term of 3 years and may be reappointed for a term of an
additional 3 years.
(C) Vacancies.--A vacancy in the Board shall be
filled in the manner in which the original appointment
was made.
(D) Acting members.--A vacancy in the Board may be
filled with an appointment of an acting member by the
Chairperson of the Board for up to 1 year while a
nominee is named and awaits confirmation in accordance
with paragraph (3)(B).
(6) Chairperson.--There shall be a Chairperson of the
Board. The Secretary of State (or the Secretary's designee)
shall serve as the Chairperson.
(7) Quorum.--A majority of the members of the Board
described in paragraph (3) shall constitute a quorum, which,
except with respect to a meeting of the Board during the 135-
day period beginning on the date of the enactment of this Act,
shall include at least 1 member of the Board described in
paragraph (3)(B).
(8) Meetings.--The Board shall meet at the call of the
Chairperson, who shall call a meeting no less than once a year.
(9) Compensation.--
(A) Officers of the federal government.--
(i) In general.--A member of the Board
described in paragraph (3)(A) may not receive
additional pay, allowances, or benefits by
reason of the member's service on the Board.
(ii) Travel expenses.--Each such member of
the Board shall receive travel expenses,
including per diem in lieu of subsistence, in
accordance with applicable provisions under
subchapter I of chapter 57 of title 5, United
States Code.
(B) Other members.--
(i) In general.--Except as provided in
clause (ii), a member of the Board described in
paragraph (3)(B)--
(I) shall be paid compensation out
of funds made available for the
purposes of this subtitle at the daily
equivalent of the highest rate payable
under section 5332 of title 5, United
States Code, for each day (including
travel time) during which the member is
engaged in the actual performance of
duties as a member of the Board; and
(II) while away from the member's
home or regular place of business on
necessary travel in the actual
performance of duties as a member of
the Board, shall be paid per diem,
travel, and transportation expenses in
the same manner as is provided under
subchapter I of chapter 57 of title 5,
United States Code.
(ii) Limitation.--A member of the Board may
not be paid compensation under clause (i)(II)
for more than 90 days in any calendar year.
SEC. 923. DUTIES OF FOUNDATION.
The Foundation shall--
(1) use the funds authorized by this subtitle to make
grants to promote projects outside of the United States that
serve as models of how to significantly reduce the emissions of
global greenhouse gases through clean and efficient energy
technologies, processes, and services;
(2) seek contributions from foreign governments, especially
those rich in energy resources such as member countries of the
Organization of the Petroleum Exporting Countries, and private
organizations to supplement funds made available under this
subtitle;
(3) harness global expertise through collaborative
partnerships with foreign governments and domestic and foreign
private actors, including nongovernmental organizations and
private sector companies, by leveraging public and private
capital, technology, expertise, and services towards innovative
models that can be instituted to reduce global greenhouse gas
emissions;
(4) create a repository of information on best practices
and lessons learned on the utilization and implementation of
clean and efficient energy technologies and processes to be
used for future initiatives to tackle the climate change
crisis;
(5) be committed to minimizing administrative costs and to
maximizing the availability of funds for grants under this
subtitle; and
(6) promote the use of American-made clean and efficient
energy technologies, processes, and services by giving
preference to entities incorporated in the United States and
whose technology will be substantially manufactured in the
United States.
SEC. 924. ANNUAL REPORT.
(a) Report Required.--Not later than March 31, 2008, and each March
31 thereafter, the Foundation shall submit to the appropriate
congressional committees a report on the implementation of this
subtitle during the prior fiscal year.
(b) Contents.--The report required by subsection (a) shall
include--
(1) the total financial resources available to the
Foundation during the year, including appropriated funds, the
value and source of any gifts or donations accepted pursuant to
section 925(a)(6), and any other resources;
(2) a description of the Board's policy priorities for the
year and the basis upon which competitive grant proposals were
solicited and awarded to nongovernmental institutions and other
organizations;
(3) a list of grants made to nongovernmental institutions
and other organizations that includes the identity of the
institutional recipient, the dollar amount, and the results of
the program; and
(4) the total administrative and operating expenses of the
Foundation for the year, as well as specific information on--
(A) the number of Foundation employees and the cost
of compensation for Board members, Foundation
employees, and personal service contractors;
(B) costs associated with securing the use of real
property for carrying out the functions of the
Foundation;
(C) total travel expenses incurred by Board members
and Foundation employees in connection with Foundation
activities; and
(D) total representational expenses.
SEC. 925. POWERS OF THE FOUNDATION; RELATED PROVISIONS.
(a) Powers.--The Foundation--
(1) shall have perpetual succession unless dissolved by a
law enacted after the date of the enactment of this Act;
(2) may adopt, alter, and use a seal, which shall be
judicially noticed;
(3) may make and perform such contracts, grants, and other
agreements with any person or government however designated and
wherever situated, as may be necessary for carrying out the
functions of the Foundation;
(4) may determine and prescribe the manner in which its
obligations shall be incurred and its expenses allowed and
paid, including expenses for representation;
(5) may lease, purchase, or otherwise acquire, improve, and
use such real property wherever situated, as may be necessary
for carrying out the functions of the Foundation;
(6) may accept money, funds, services, or property (real,
personal, or mixed), tangible or intangible, made available by
gift, bequest grant, or otherwise for the purpose of carrying
out the provisions of this title from domestic or foreign
private individuals, charities, nongovernmental organizations,
corporations, or governments;
(7) may use the United States mails in the same manner and
on the same conditions as the executive departments;
(8) may contract with individuals for personal services,
who shall not be considered Federal employees for any provision
of law administered by the Office of Personnel Management;
(9) may hire or obtain passenger motor vehicles; and
(10) shall have such other powers as may be necessary and
incident to carrying out this subtitle.
(b) Principal Office.--The Foundation shall maintain its principal
office in the metropolitan area of Washington, District of Columbia.
(c) Applicability of Government Corporation Control Act.--
(1) In general.--The Foundation shall be subject to chapter
91 of subtitle VI of title 31, United States Code, except that
the Foundation shall not be authorized to issue obligations or
offer obligations to the public.
(2) Conforming amendment.--Section 9101(3) of title 31,
United States Code, is amended by adding at the end the
following:
``(R) the International Clean Energy Foundation.''.
(d) Inspector General.--
(1) In general.--The Inspector General of the Department of
State shall serve as Inspector General of the Foundation, and,
in acting in such capacity, may conduct reviews,
investigations, and inspections of all aspects of the
operations and activities of the Foundation.
(2) Authority of the board.--In carrying out the
responsibilities under this subsection, the Inspector General
shall report to and be under the general supervision of the
Board.
(3) Reimbursement and authorization of services.--
(A) Reimbursement.--The Foundation shall reimburse
the Department of State for all expenses incurred by
the Inspector General in connection with the Inspector
General's responsibilities under this subsection.
(B) Authorization for services.--Of the amount
authorized to be appropriated under section 927(a) for
a fiscal year, up to $500,000 is authorized to be made
available to the Inspector General of the Department of
State to conduct reviews, investigations, and
inspections of operations and activities of the
Foundation.
SEC. 926. GENERAL PERSONNEL AUTHORITIES.
(a) Detail of Personnel.--Upon request of the Chief Executive
Officer, the head of an agency may detail any employee of such agency
to the Foundation on a reimbursable basis. Any employee so detailed
remains, for the purpose of preserving such employee's allowances,
privileges, rights, seniority, and other benefits, an employee of the
agency from which detailed.
(b) Reemployment Rights.--
(1) In general.--An employee of an agency who is serving
under a career or career conditional appointment (or the
equivalent), and who, with the consent of the head of such
agency, transfers to the Foundation, is entitled to be
reemployed in such employee's former position or a position of
like seniority, status, and pay in such agency, if such
employee--
(A) is separated from the Foundation for any
reason, other than misconduct, neglect of duty, or
malfeasance; and
(B) applies for reemployment not later than 90 days
after the date of separation from the Foundation.
(2) Specific rights.--An employee who satisfies paragraph
(1) is entitled to be reemployed (in accordance with such
paragraph) within 30 days after applying for reemployment and,
on reemployment, is entitled to at least the rate of basic pay
to which such employee would have been entitled had such
employee never transferred.
(c) Hiring Authority.--Of persons employed by the Foundation, no
more than 30 persons may be appointed, compensated, or removed without
regard to the civil service laws and regulations.
(d) Basic Pay.--The Chief Executive Officer may fix the rate of
basic pay of employees of the Foundation without regard to the
provisions of chapter 51 of title 5, United States Code (relating to
the classification of positions), subchapter III of chapter 53 of such
title (relating to General Schedule pay rates), except that no employee
of the Foundation may receive a rate of basic pay that exceeds the rate
for level IV of the Executive Schedule under section 5315 of such
title.
(e) Definitions.--In this section--
(1) the term ``agency'' means an executive agency, as
defined by section 105 of title 5, United States Code; and
(2) the term ``detail'' means the assignment or loan of an
employee, without a change of position, from the agency by
which such employee is employed to the Foundation.
SEC. 927. AUTHORIZATION OF APPROPRIATIONS.
(a) Authorization of Appropriations.--To carry out this subtitle,
there are authorized to be appropriated $20,000,000 for each of the
fiscal years 2009 through 2013.
(b) Allocation of Funds.--
(1) In general.--The Foundation may allocate or transfer to
any agency of the United States Government any of the funds
available for carrying out this subtitle. Such funds shall be
available for obligation and expenditure for the purposes for
which the funds were authorized, in accordance with authority
granted in this subtitle or under authority governing the
activities of the United States Government agency to which such
funds are allocated or transferred.
(2) Notification.--The Foundation shall notify the
appropriate congressional committees not less than 15 days
prior to an allocation or transfer of funds pursuant to
paragraph (1).
Subtitle C--Miscellaneous Provisions
SEC. 931. ENERGY DIPLOMACY AND SECURITY WITHIN THE DEPARTMENT OF STATE.
(a) State Department Coordinator for International Energy
Affairs.--
(1) In general.--The Secretary of State should ensure that
energy security is integrated into the core mission of the
Department of State.
(2) Coordinator for international energy affairs.--There is
established within the Office of the Secretary of State a
Coordinator for International Energy Affairs, who shall be
responsible for--
(A) representing the Secretary of State in
interagency efforts to develop the international energy
policy of the United States;
(B) ensuring that analyses of the national security
implications of global energy and environmental
developments are reflected in the decision making
process within the Department of State;
(C) incorporating energy security priorities into
the activities of the Department of State;
(D) coordinating energy activities of the
Department of State with relevant Federal agencies; and
(E) coordinating energy security and other relevant
functions within the Department of State currently
undertaken by offices within--
(i) the Bureau of Economic, Energy and
Business Affairs;
(ii) the Bureau of Oceans and International
Environmental and Scientific Affairs; and
(iii) other offices within the Department
of State.
(3) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.
(b) Energy Experts in Key Embassies.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of State shall
submit a report to the Committee on Foreign Relations of the Senate and
the Committee on Foreign Affairs of the House of Representatives that
includes--
(1) a description of the Department of State personnel who
are dedicated to energy matters and are stationed at embassies
and consulates in countries that are major energy producers or
consumers;
(2) an analysis of the need for Federal energy specialist
personnel in United States embassies and other United States
diplomatic missions; and
(3) recommendations for increasing energy expertise within
United States embassies among foreign service officers and
options for assigning to such embassies energy attaches from
the National Laboratories or other agencies within the
Department of Energy.
(c) Energy Advisors.--The Secretary of Energy may make appropriate
arrangements with the Secretary of State to assign personnel from the
Department of Energy or the National Laboratories of the Department of
Energy to serve as dedicated advisors on energy matters in embassies of
the United States or other United States diplomatic missions.
(d) Report.--Not later than 180 days after the date of the
enactment of this Act, and every 2 years thereafter for the following
20 years, the Secretary of State shall submit a report to the Committee
on Foreign Relations of the Senate and the Committee on Foreign Affairs
of the House of Representatives that describes--
(1) the energy-related activities being conducted by the
Department of State, including activities within--
(A) the Bureau of Economic, Energy and Business
Affairs;
(B) the Bureau of Oceans and Environmental and
Scientific Affairs; and
(C) other offices within the Department of State;
(2) the amount of funds spent on each activity within each
office described in paragraph (1); and
(3) the number and qualification of personnel in each
embassy (or relevant foreign posting) of the United States
whose work is dedicated exclusively to energy matters.
SEC. 932. NATIONAL SECURITY COUNCIL REORGANIZATION.
Section 101(a) of the National Security Act of 1947 (50 U.S.C.
402(a)) is amended--
(1) by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) the Secretary of Energy;''.
SEC. 933. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT.
(a) Reports.--
(1) In general.--Subject to paragraph (2), on the date on
which the President submits to Congress the budget for the
following fiscal year under section 1105 of title 31, United
States Code, the President shall submit to Congress a
comprehensive report on the national energy security of the
United States.
(2) New presidents.--In addition to the reports required
under paragraph (1), the President shall submit a comprehensive
report on the national energy security of the United States by
not later than 150 days after the date on which the President
assumes the office of President after a presidential election.
(b) Contents.--Each report under this section shall describe the
national energy security strategy of the United States, including a
comprehensive description of--
(1) the worldwide interests, goals, and objectives of the
United States that are vital to the national energy security of
the United States;
(2) the foreign policy, worldwide commitments, and national
defense capabilities of the United States necessary--
(A) to deter political manipulation of world energy
resources; and
(B) to implement the national energy security
strategy of the United States;
(3) the proposed short-term and long-term uses of the
political, economic, military, and other authorities of the
United States--
(A) to protect or promote energy security; and
(B) to achieve the goals and objectives described
in paragraph (1);
(4) the adequacy of the capabilities of the United States
to protect the national energy security of the United States,
including an evaluation of the balance among the capabilities
of all elements of the national authority of the United States
to support the implementation of the national energy security
strategy; and
(5) such other information as the President determines to
be necessary to inform Congress on matters relating to the
national energy security of the United States.
(c) Classified and Unclassified Form.--Each national energy
security strategy report shall be submitted to Congress in--
(1) a classified form; and
(2) an unclassified form.
SEC. 934. CONVENTION ON SUPPLEMENTARY COMPENSATION FOR NUCLEAR DAMAGE
CONTINGENT COST ALLOCATION.
(a) Findings and Purpose.--
(1) Findings.--Congress finds that--
(A) section 170 of the Atomic Energy Act of 1954
(42 U.S.C. 2210) (commonly known as the ``Price-
Anderson Act'')--
(i) provides a predictable legal framework
necessary for nuclear projects; and
(ii) ensures prompt and equitable
compensation in the event of a nuclear incident
in the United States;
(B) the Price-Anderson Act, in effect, provides
operators of nuclear powerplants with insurance for
damage arising out of a nuclear incident and funds the
insurance primarily through the assessment of a
retrospective premium from each operator after the
occurrence of a nuclear incident;
(C) the Convention on Supplementary Compensation
for Nuclear Damage, done at Vienna on September 12,
1997, will establish a global system--
(i) to provide a predictable legal
framework necessary for nuclear energy
projects; and
(ii) to ensure prompt and equitable
compensation in the event of a nuclear
incident;
(D) the Convention benefits United States nuclear
suppliers that face potentially unlimited liability for
nuclear incidents that are not covered by the Price-
Anderson Act by replacing a potentially open-ended
liability with a predictable liability regime that, in
effect, provides nuclear suppliers with insurance for
damage arising out of such an incident;
(E) the Convention also benefits United States
nuclear facility operators that may be publicly liable
for a Price-Anderson incident by providing an
additional early source of funds to compensate damage
arising out of the Price-Anderson incident;
(F) the combined operation of the Convention, the
Price-Anderson Act, and this section will augment the
quantity of assured funds available for victims in a
wider variety of nuclear incidents while reducing the
potential liability of United States suppliers without
increasing potential costs to United States operators;
(G) the cost of those benefits is the obligation of
the United States to contribute to the supplementary
compensation fund established by the Convention;
(H) any such contribution should be funded in a
manner that does not--
(i) upset settled expectations based on the
liability regime established under the Price-
Anderson Act; or
(ii) shift to Federal taxpayers liability
risks for nuclear incidents at foreign
installations;
(I) with respect to a Price-Anderson incident,
funds already available under the Price-Anderson Act
should be used; and
(J) with respect to a nuclear incident outside the
United States not covered by the Price-Anderson Act, a
retrospective premium should be prorated among nuclear
suppliers relieved from potential liability for which
insurance is not available.
(2) Purpose.--The purpose of this section is to allocate
the contingent costs associated with participation by the
United States in the international nuclear liability
compensation system established by the Convention on
Supplementary Compensation for Nuclear Damage, done at Vienna
on September 12, 1997--
(A) with respect to a Price-Anderson incident, by
using funds made available under section 170 of the
Atomic Energy Act of 1954 (42 U.S.C. 2210) to cover the
contingent costs in a manner that neither increases the
burdens nor decreases the benefits under section 170 of
that Act; and
(B) with respect to a covered incident outside the
United States that is not a Price-Anderson incident, by
allocating the contingent costs equitably, on the basis
of risk, among the class of nuclear suppliers relieved
by the Convention from the risk of potential liability
resulting from any covered incident outside the United
States.
(b) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Nuclear
Regulatory Commission.
(2) Contingent cost.--The term ``contingent cost'' means
the cost to the United States in the event of a covered
incident the amount of which is equal to the amount of funds
the United States is obligated to make available under
paragraph 1(b) of Article III of the Convention.
(3) Convention.--The term ``Convention'' means the
Convention on Supplementary Compensation for Nuclear Damage,
done at Vienna on September 12, 1997.
(4) Covered incident.--The term ``covered incident'' means
a nuclear incident the occurrence of which results in a request
for funds pursuant to Article VII of the Convention.
(5) Covered installation.--The term ``covered
installation'' means a nuclear installation at which the
occurrence of a nuclear incident could result in a request for
funds under Article VII of the Convention.
(6) Covered person.--
(A) In general.--The term ``covered person''
means--
(i) a United States person; and
(ii) an individual or entity (including an
agency or instrumentality of a foreign country)
that--
(I) is located in the United
States; or
(II) carries out an activity in the
United States.
(B) Exclusions.--The term ``covered person'' does
not include--
(i) the United States; or
(ii) any agency or instrumentality of the
United States.
(7) Nuclear supplier.--The term ``nuclear supplier'' means
a covered person (or a successor in interest of a covered
person) that--
(A) supplies facilities, equipment, fuel, services,
or technology pertaining to the design, construction,
operation, or decommissioning of a covered
installation; or
(B) transports nuclear materials that could result
in a covered incident.
(8) Price-anderson incident.--The term ``Price-Anderson
incident'' means a covered incident for which section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) would make funds
available to compensate for public liability (as defined in
section 11 of that Act (42 U.S.C. 2014)).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) United states.--
(A) In general.--The term ``United States'' has the
meaning given the term in section 11 of the Atomic
Energy Act of 1954 (42 U.S.C. 2014).
(B) Inclusions.--The term ``United States''
includes--
(i) the Commonwealth of Puerto Rico;
(ii) any other territory or possession of
the United States;
(iii) the Canal Zone; and
(iv) the waters of the United States
territorial sea under Presidential Proclamation
Number 5928, dated December 27, 1988 (43 U.S.C.
1331 note).
(11) United states person.--The term ``United States
person'' means--
(A) any individual who is a resident, national, or
citizen of the United States (other than an individual
residing outside of the United States and employed by a
person who is not a United States person); and
(B) any corporation, partnership, association,
joint stock company, business trust, unincorporated
organization, or sole proprietorship that is organized
under the laws of the United States.
(c) Use of Price-Anderson Funds.--
(1) In general.--Funds made available under section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used to
cover the contingent cost resulting from any Price-Anderson
incident.
(2) Effect.--The use of funds pursuant to paragraph (1)
shall not reduce the limitation on public liability established
under section 170 e. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(e)).
(d) Effect on Amount of Public Liability.--
(1) In general.--Funds made available to the United States
under Article VII of the Convention with respect to a Price-
Anderson incident shall be used to satisfy public liability
resulting from the Price-Anderson incident.
(2) Amount.--The amount of public liability allowable under
section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210)
relating to a Price-Anderson incident under paragraph (1) shall
be increased by an amount equal to the difference between--
(A) the amount of funds made available for the
Price-Anderson incident under Article VII of the
Convention; and
(B) the amount of funds used under subsection (c)
to cover the contingent cost resulting from the Price-
Anderson incident.
(e) Retrospective Risk Pooling Program.--
(1) In general.--Except as provided under paragraph (2),
each nuclear supplier shall participate in a retrospective risk
pooling program in accordance with this section to cover the
contingent cost resulting from a covered incident outside the
United States that is not a Price-Anderson incident.
(2) Deferred payment.--
(A) In general.--The obligation of a nuclear
supplier to participate in the retrospective risk
pooling program shall be deferred until the United
States is called on to provide funds pursuant to
Article VII of the Convention with respect to a covered
incident that is not a Price-Anderson incident.
(B) Amount of deferred payment.--The amount of a
deferred payment of a nuclear supplier under
subparagraph (A) shall be based on the risk-informed
assessment formula determined under subparagraph (C).
(C) Risk-informed assessment formula.--
(i) In general.--Not later than 3 years
after the date of the enactment of this Act,
and every 5 years thereafter, the Secretary
shall, by regulation, determine the risk-
informed assessment formula for the allocation
among nuclear suppliers of the contingent cost
resulting from a covered incident that is not a
Price-Anderson incident, taking into account
risk factors such as--
(I) the nature and intended purpose
of the goods and services supplied by
each nuclear supplier to each covered
installation outside the United States;
(II) the quantity of the goods and
services supplied by each nuclear
supplier to each covered installation
outside the United States;
(III) the hazards associated with
the supplied goods and services if the
goods and services fail to achieve the
intended purposes;
(IV) the hazards associated with
the covered installation outside the
United States to which the goods and
services are supplied;
(V) the legal, regulatory, and
financial infrastructure associated
with the covered installation outside
the United States to which the goods
and services are supplied; and
(VI) the hazards associated with
particular forms of transportation.
(ii) Factors for consideration.--In
determining the formula, the Secretary may--
(I) exclude--
(aa) goods and services
with negligible risk;
(bb) classes of goods and
services not intended
specifically for use in a
nuclear installation;
(cc) a nuclear supplier
with a de minimis share of the
contingent cost; and
(dd) a nuclear supplier no
longer in existence for which
there is no identifiable
successor; and
(II) establish the period on which
the risk assessment is based.
(iii) Application.--In applying the
formula, the Secretary shall not consider any
covered installation or transportation for
which funds would be available under section
170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210).
(iv) Report.--Not later than 5 years after
the date of the enactment of this Act, and
every 5 years thereafter, the Secretary shall
submit to the Committee on Environment and
Public Works of the Senate and the Committee on
Energy and Commerce of the House of
Representatives a report on whether there is a
need for continuation or amendment of this
section, taking into account the effects of the
implementation of the Convention on the United
States nuclear industry and suppliers.
(f) Reporting.--
(1) Collection of information.--
(A) In general.--The Secretary may collect
information necessary for developing and implementing
the formula for calculating the deferred payment of a
nuclear supplier under subsection (e)(2).
(B) Provision of information.--Each nuclear
supplier and other appropriate persons shall make
available to the Secretary such information, reports,
records, documents, and other data as the Secretary
determines, by regulation, to be necessary or
appropriate to develop and implement the formula under
subsection (e)(2)(C).
(2) Private insurance.--The Secretary shall make available
to nuclear suppliers, and insurers of nuclear suppliers,
information to support the voluntary establishment and
maintenance of private insurance against any risk for which
nuclear suppliers may be required to pay deferred payments
under this section.
(g) Effect on Liability.--Nothing in any other law (including
regulations) limits liability for a covered incident to an amount equal
to less than the amount prescribed in paragraph 1(a) of Article IV of
the Convention, unless the law--
(1) specifically refers to this section; and
(2) explicitly repeals, alters, amends, modifies, impairs,
displaces, or supersedes the effect of this subsection.
(h) Payments to and by the United States.--
(1) Action by nuclear suppliers.--
(A) Notification.--In the case of a request for
funds under Article VII of the Convention resulting
from a covered incident that is not a Price-Anderson
incident, the Secretary shall notify each nuclear
supplier of the amount of the deferred payment required
to be made by the nuclear supplier.
(B) Payments.--
(i) In general.--Except as provided under
clause (ii), not later than 60 days after
receipt of a notification under subparagraph
(A), a nuclear supplier shall pay to the
general fund of the Treasury the deferred
payment of the nuclear supplier required under
subparagraph (A).
(ii) Annual payments.--A nuclear supplier
may elect to prorate payment of the deferred
payment required under subparagraph (A) in 5
equal annual payments (including interest on
the unpaid balance at the prime rate prevailing
at the time the first payment is due).
(C) Vouchers.--A nuclear supplier shall submit
payment certification vouchers to the Secretary of the
Treasury in accordance with section 3325 of title 31,
United States Code.
(2) Use of funds.--
(A) In general.--Amounts paid into the Treasury
under paragraph (1) shall be available to the Secretary
of the Treasury, without further appropriation and
without fiscal year limitation, for the purpose of
making the contributions of public funds required to be
made by the United States under the Convention.
(B) Action by secretary of treasury.--The Secretary
of the Treasury shall pay the contribution required
under the Convention to the court of competent
jurisdiction under Article XIII of the Convention with
respect to the applicable covered incident.
(3) Failure to pay.--If a nuclear supplier fails to make a
payment required under this subsection, the Secretary may take
appropriate action to recover from the nuclear supplier--
(A) the amount of the payment due from the nuclear
supplier;
(B) any applicable interest on the payment; and
(C) a penalty of not more than twice the amount of
the deferred payment due from the nuclear supplier.
(i) Limitation on Judicial Review; Cause of Action.--
(1) Limitation on judicial review.--
(A) In general.--In any civil action arising under
the Convention over which Article XIII of the
Convention grants jurisdiction to the courts of the
United States, any appeal or review by writ of mandamus
or otherwise with respect to a nuclear incident that is
not a Price-Anderson incident shall be in accordance
with chapter 83 of title 28, United States Code, except
that the appeal or review shall occur in the United
States Court of Appeals for the District of Columbia
Circuit.
(B) Supreme court jurisdiction.--Nothing in this
paragraph affects the jurisdiction of the Supreme Court
of the United States under chapter 81 of title 28,
United States Code.
(2) Cause of action.--
(A) In general.--Subject to subparagraph (B), in
any civil action arising under the Convention over
which Article XIII of the Convention grants
jurisdiction to the courts of the United States, in
addition to any other cause of action that may exist,
an individual or entity shall have a cause of action
against the operator to recover for nuclear damage
suffered by the individual or entity.
(B) Requirement.--Subparagraph (A) shall apply only
if the individual or entity seeks a remedy for nuclear
damage (as defined in Article I of the Convention) that
was caused by a nuclear incident (as defined in Article
I of the Convention) that is not a Price-Anderson
incident.
(C) Savings provision.--Nothing in this paragraph
may be construed to limit, modify, extinguish, or
otherwise affect any cause of action that would have
existed in the absence of enactment of this paragraph.
(j) Right of Recourse.--This section does not provide to an
operator of a covered installation any right of recourse under the
Convention.
(k) Protection of Sensitive United States Information.--Nothing in
the Convention or this section requires the disclosure of--
(1) any data that, at any time, was Restricted Data (as
defined in section 11 of the Atomic Energy Act of 1954 (42
U.S.C. 2014));
(2) information relating to intelligence sources or methods
protected by section 102A(i) of the National Security Act of
1947 (50 U.S.C. 403-1(i)); or
(3) national security information classified under
Executive Order 12958 (50 U.S.C. 435 note; relating to
classified national security information) (or a successor
Executive Order or regulation).
(l) Regulations.--
(1) In general.--The Secretary or the Commission, as
appropriate, may prescribe regulations to carry out section 170
of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and this
section.
(2) Requirement.--Rules prescribed under this subsection
shall ensure, to the maximum extent practicable, that--
(A) the implementation of section 170 of the Atomic
Energy Act of 1954 (42 U.S.C. 2210) and this section is
consistent and equitable; and
(B) the financial and operational burden on a
Commission licensee in complying with section 170 of
that Act is not greater as a result of the enactment of
this section.
(3) Applicability of provision.--Section 553 of title 5,
United States Code, shall apply with respect to the
promulgation of regulations under this subsection.
(4) Effect of subsection.--The authority provided under
this subsection is in addition to, and does not impair or
otherwise affect, any other authority of the Secretary or the
Commission to prescribe regulations.
(m) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 935. TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE PAYMENTS.
(a) Purpose.--The purpose of this section is to--
(1) ensure greater United States energy security by
combating corruption in the governments of foreign countries
that receive revenues from the sale of their natural resources;
and
(2) enhance the development of democracy and increase
political and economic stability in such resource rich foreign
countries.
(b) Statement of Policy.--It is the policy of the United States--
(1) to increase energy security by promoting anti-
corruption initiatives in oil and natural gas rich countries;
and
(2) to promote global energy security through promotion of
programs such as the Extractive Industries Transparency
Initiative (EITI) that seek to instill transparency and
accountability into extractive industries resource payments.
(c) Sense of Congress.--It is the sense of Congress that the United
States should further global energy security and promote democratic
development in resource-rich foreign countries by--
(1) encouraging further participation in the EITI by
eligible countries and companies; and
(2) promoting the efficacy of the EITI program by ensuring
a robust and candid review mechanism.
(d) Report.--
(1) Report required.--Not later than 180 days after the
date of the enactment of this Act, and annually thereafter, the
Secretary of State, in consultation with the Secretary of
Energy, shall submit to the appropriate congressional
committees a report on progress made in promoting transparency
in extractive industries resource payments.
(2) Matters to be included.--The report required by
paragraph (1) shall include a detailed description of United
States participation in the EITI, bilateral and multilateral
diplomatic efforts to further participation in the EITI, and
other United States initiatives to strengthen energy security,
deter energy kleptocracy, and promote transparency in the
extractive industries.
(e) Authorization of Appropriations.--There is authorized to be
appropriated $3,000,000 for the purposes of United States contributions
to the Multi-Donor Trust Fund of the EITI.
TITLE X--GREEN JOBS
SEC. 1001. SHORT TITLE.
This title may be cited as the ``Green Jobs Act of 2007''.
SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER TRAINING
PROGRAM.
Section 171 of the Workforce Investment Act of 1998 (29 U.S.C.
2916) is amended by adding at the end the following:
``(e) Energy Efficiency and Renewable Energy Worker Training
Program.--
``(1) Grant program.--
``(A) In general.--Not later than 6 months after
the date of enactment of the Green Jobs Act of 2007,
the Secretary, in consultation with the Secretary of
Energy, shall establish an energy efficiency and
renewable energy worker training program under which
the Secretary shall carry out the activities described
in paragraph (2) to achieve the purposes of this
subsection.
``(B) Eligibility.--For purposes of providing
assistance and services under the program established
under this subsection--
``(i) target populations of eligible
individuals to be given priority for training
and other services shall include--
``(I) workers impacted by national
energy and environmental policy;
``(II) individuals in need of
updated training related to the energy
efficiency and renewable energy
industries;
``(III) veterans, or past and
present members of reserve components
of the Armed Forces;
``(IV) unemployed individuals;
``(V) individuals, including at-
risk youth, seeking employment pathways
out of poverty and into economic self-
sufficiency; and
``(VI) formerly incarcerated,
adjudicated, nonviolent offenders; and
``(ii) energy efficiency and renewable
energy industries eligible to participate in a
program under this subsection include--
``(I) the energy-efficient
building, construction, and retrofits
industries;
``(II) the renewable electric power
industry;
``(III) the energy efficient and
advanced drive train vehicle industry;
``(IV) the biofuels industry;
``(V) the deconstruction and
materials use industries;
``(VI) the energy efficiency
assessment industry serving the
residential, commercial, or industrial
sectors; and
``(VII) manufacturers that produce
sustainable products using
environmentally sustainable processes
and materials.
``(2) Activities.--
``(A) National research program.--Under the program
established under paragraph (1), the Secretary, acting
through the Bureau of Labor Statistics, where
appropriate, shall collect and analyze labor market
data to track workforce trends resulting from energy-
related initiatives carried out under this subsection.
Activities carried out under this paragraph shall
include--
``(i) tracking and documentation of
academic and occupational competencies as well
as future skill needs with respect to renewable
energy and energy efficiency technology;
``(ii) tracking and documentation of
occupational information and workforce training
data with respect to renewable energy and
energy efficiency technology;
``(iii) collaborating with State agencies,
workforce investments boards, industry,
organized labor, and community and nonprofit
organizations to disseminate information on
successful innovations for labor market
services and worker training with respect to
renewable energy and energy efficiency
technology;
``(iv) serving as a clearinghouse for best
practices in workforce development, job
placement, and collaborative training
partnerships;
``(v) encouraging the establishment of
workforce training initiatives with respect to
renewable energy and energy efficiency
technologies;
``(vi) linking research and development in
renewable energy and energy efficiency
technology with the development of standards
and curricula for current and future jobs;
``(vii) assessing new employment and work
practices including career ladder and upgrade
training as well as high performance work
systems; and
``(viii) providing technical assistance and
capacity building to national and State energy
partnerships, including industry and labor
representatives.
``(B) National energy training partnership
grants.--
``(i) In general.--Under the program
established under paragraph (1), the Secretary
shall award National Energy Training
Partnerships Grants on a competitive basis to
eligible entities to enable such entities to
carry out training that leads to economic self-
sufficiency and to develop an energy efficiency
and renewable energy industries workforce.
Grants shall be awarded under this subparagraph
so as to ensure geographic diversity with at
least 2 grants awarded to entities located in
each of the 4 Petroleum Administration for
Defense Districts with no subdistricts, and at
least 1 grant awarded to an entity located in
each of the subdistricts of the Petroleum
Administration for Defense District with
subdistricts.
``(ii) Eligibility.--To be eligible to
receive a grant under clause (i), an entity
shall be a nonprofit partnership that--
``(I) includes the equal
participation of industry, including
public or private employers, and labor
organizations, including joint labor-
management training programs, and may
include workforce investment boards,
community-based organizations,
qualified service and conservation
corps, educational institutions, small
businesses, cooperatives, State and
local veterans agencies, and veterans
service organizations; and
``(II) demonstrates--
``(aa) experience in
implementing and operating
worker skills training and
education programs;
``(bb) the ability to
identify and involve in
training programs carried out
under this grant, target
populations of individuals who
would benefit from training and
be actively involved in
activities related to energy
efficiency and renewable energy
industries; and
``(cc) the ability to help
individuals achieve economic
self-sufficiency.
``(iii) Priority.--Priority shall be given
to partnerships which leverage additional
public and private resources to fund training
programs, including cash or in-kind matches
from participating employers.
``(C) State labor market research, information, and
labor exchange research program.--
``(i) In general.--Under the program
established under paragraph (1), the Secretary
shall award competitive grants to States to
enable such States to administer labor market
and labor exchange information programs that
include the implementation of the activities
described in clause (ii), in coordination with
the one-stop delivery system.
``(ii) Activities.--A State shall use
amounts awarded under a grant under this
subparagraph to provide funding to the State
agency that administers the Wagner-Peyser Act
and State unemployment compensation programs to
carry out the following activities using State
agency merit staff:
``(I) The identification of job
openings in the renewable energy and
energy efficiency sector.
``(II) The administration of skill
and aptitude testing and assessment for
workers.
``(III) The counseling, case
management, and referral of qualified
job seekers to openings and training
programs, including energy efficiency
and renewable energy training programs.
``(D) State energy training partnership program.--
``(i) In general.--Under the program
established under paragraph (1), the Secretary
shall award competitive grants to States to
enable such States to administer renewable
energy and energy efficiency workforce
development programs that include the
implementation of the activities described in
clause (ii).
``(ii) Partnerships.--A State shall use
amounts awarded under a grant under this
subparagraph to award competitive grants to
eligible State Energy Sector Partnerships to
enable such Partnerships to coordinate with
existing apprenticeship and labor management
training programs and implement training
programs that lead to the economic self-
sufficiency of trainees.
``(iii) Eligibility.--To be eligible to
receive a grant under this subparagraph, a
State Energy Sector Partnership shall--
``(I) consist of nonprofit
organizations that include equal
participation from industry, including
public or private nonprofit employers,
and labor organizations, including
joint labor-management training
programs, and may include
representatives from local governments,
the workforce investment system,
including one-stop career centers,
community based organizations,
qualified service and conservation
corps, community colleges, and other
post-secondary institutions, small
businesses, cooperatives, State and
local veterans agencies, and veterans
service organizations;
``(II) demonstrate experience in
implementing and operating worker
skills training and education programs;
and
``(III) demonstrate the ability to
identify and involve in training
programs, target populations of workers
who would benefit from training and be
actively involved in activities related
to energy efficiency and renewable
energy industries.
``(iv) Priority.--In awarding grants under
this subparagraph, the Secretary shall give
priority to States that demonstrate that
activities under the grant--
``(I) meet national energy policies
associated with energy efficiency,
renewable energy, and the reduction of
emissions of greenhouse gases;
``(II) meet State energy policies
associated with energy efficiency,
renewable energy, and the reduction of
emissions of greenhouse gases; and
``(III) leverage additional public
and private resources to fund training
programs, including cash or in-kind
matches from participating employers.
``(v) Coordination.--A grantee under this
subparagraph shall coordinate activities
carried out under the grant with existing other
appropriate training programs, including
apprenticeship and labor management training
programs, including such activities referenced
in paragraph (3)(A), and implement training
programs that lead to the economic self-
sufficiency of trainees.
``(E) Pathways out of poverty demonstration
program.--
``(i) In general.--Under the program
established under paragraph (1), the Secretary
shall award competitive grants of sufficient
size to eligible entities to enable such
entities to carry out training that leads to
economic self-sufficiency. The Secretary shall
give priority to entities that serve
individuals in families with income of less
than 200 percent of the sufficiency standard
for the local areas where the training is
conducted that specifies, as defined by the
State, or where such standard is not
established, the income needs of families, by
family size, the number and ages of children in
the family, and sub-State geographical
considerations. Grants shall be awards to
ensure geographic diversity.
``(ii) Eligible entities.--To be eligible
to receive a grant an entity shall be a
partnership that--
``(I) includes community-based
nonprofit organizations, educational
institutions with expertise in serving
low-income adults or youth, public or
private employers from the industry
sectors described in paragraph
(1)(B)(ii), and labor organizations
representing workers in such industry
sectors;
``(II) demonstrates a record of
successful experience in implementing
and operating worker skills training
and education programs;
``(III) coordinates activities,
where appropriate, with the workforce
investment system; and
``(IV) demonstrates the ability to
recruit individuals for training and to
support such individuals to successful
completion in training programs carried
out under this grant, targeting
populations of workers who are or will
be engaged in activities related to
energy efficiency and renewable energy
industries.
``(iii) Priorities.--In awarding grants
under this paragraph, the Secretary shall give
priority to applicants that--
``(I) target programs to benefit
low-income workers, unemployed youth
and adults, high school dropouts, or
other underserved sectors of the
workforce within areas of high poverty;
``(II) ensure that supportive
services are integrated with education
and training, and delivered by
organizations with direct access to and
experience with targeted populations;
``(III) leverage additional public
and private resources to fund training
programs, including cash or in-kind
matches from participating employers;
``(IV) involve employers and labor
organizations in the determination of
relevant skills and competencies and
ensure that the certificates or
credentials that result from the
training are employer-recognized;
``(V) deliver courses at
alternative times (such as evening and
weekend programs) and locations most
convenient and accessible to
participants and link adult remedial
education with occupational skills
training; and
``(VI) demonstrate substantial
experience in administering local,
municipal, State, Federal, foundation,
or private entity grants.
``(iv) Data collection.--Grantees shall
collect and report the following information:
``(I) The number of participants.
``(II) The demographic
characteristics of participants,
including race, gender, age, parenting
status, participation in other Federal
programs, education and literacy level
at entry, significant barriers to
employment (such as limited English
proficiency, criminal record, addiction
or mental health problem requiring
treatment, or mental disability).
``(III) The services received by
participants, including training,
education, and supportive services.
``(IV) The amount of program
spending per participant.
``(V) Program completion rates.
``(VI) Factors determined as
significantly interfering with program
participation or completion.
``(VII) The rate of Job placement
and the rate of employment retention
after 1 year.
``(VIII) The average wage at
placement, including any benefits, and
the rate of average wage increase after
1 year.
``(IX) Any post-employment
supportive services provided.
The Secretary shall assist grantees in the
collection of data under this clause by making
available, where practicable, low-cost means of
tracking the labor market outcomes of
participants, and by providing standardized
reporting forms, where appropriate.
``(3) Activities.--
``(A) In general.--Activities to be carried out
under a program authorized by subparagraph (B), (D), or
(E) of paragraph (2) shall be coordinated with existing
systems or providers, as appropriate. Such activities
may include--
``(i) occupational skills training,
including curriculum development, on-the-job
training, and classroom training;
``(ii) safety and health training;
``(iii) the provision of basic skills,
literacy, GED, English as a second language,
and job readiness training;
``(iv) individual referral and tuition
assistance for a community college training
program, or any training program leading to an
industry-recognized certificate;
``(v) internship programs in fields related
to energy efficiency and renewable energy;
``(vi) customized training in conjunction
with an existing registered apprenticeship
program or labor-management partnership;
``(vii) incumbent worker and career ladder
training and skill upgrading and retraining;
``(viii) the implementation of transitional
jobs strategies; and
``(ix) the provision of supportive
services.
``(B) Outreach activities.--In addition to the
activities authorized under subparagraph (A),
activities authorized for programs under subparagraph
(E) of paragraph (2) may include the provision of
outreach, recruitment, career guidance, and case
management services.
``(4) Worker protections and nondiscrimination
requirements.--
``(A) Application of wia.--The provisions of
sections 181 and 188 of the Workforce Investment Act of
1998 (29 U.S.C. 2931 and 2938) shall apply to all
programs carried out with assistance under this
subsection.
``(B) Consultation with labor organizations.--If a
labor organization represents a substantial number of
workers who are engaged in similar work or training in
an area that is the same as the area that is proposed
to be funded under this Act, the labor organization
shall be provided an opportunity to be consulted and to
submit comments in regard to such a proposal.
``(5) Performance measures.--
``(A) In general.--The Secretary shall negotiate
and reach agreement with the eligible entities that
receive grants and assistance under this section on
performance measures for the indicators of performance
referred to in subparagraphs (A) and (B) of section
136(b)(2) that will be used to evaluate the performance
of the eligible entity in carrying out the activities
described in subsection (e)(2). Each performance
measure shall consist of such an indicator of
performance, and a performance level referred to in
subparagraph (B).
``(B) Performance levels.--The Secretary shall
negotiate and reach agreement with the eligible entity
regarding the levels of performance expected to be
achieved by the eligible entity on the indicators of
performance.
``(6) Report.--
``(A) Status report.--Not later than 18 months
after the date of enactment of the Green Jobs Act of
2007, the Secretary shall transmit a report to the
Senate Committee on Energy and Natural Resources, the
Senate Committee on Health, Education, Labor, and
Pensions, the House Committee on Education and Labor,
and the House Committee on Energy and Commerce on the
training program established by this subsection. The
report shall include a description of the entities
receiving funding and the activities carried out by
such entities.
``(B) Evaluation.--Not later than 3 years after the
date of enactment of such Act, the Secretary shall
transmit to the Senate Committee on Energy and Natural
Resources, the Senate Committee on Health, Education,
Labor, and Pensions, the House Committee on Education
and Labor, and the House Committee on Energy and
Commerce an assessment of such program and an
evaluation of the activities carried out by entities
receiving funding from such program.
``(7) Definition.--As used in this subsection, the term
`renewable energy' has the meaning given such term in section
203(b)(2) of the Energy Policy Act of 2005 (Public Law 109-58).
``(8) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection, $125,000,000
for each fiscal years, of which--
``(A) not to exceed 20 percent of the amount
appropriated in each such fiscal year shall be made
available for, and shall be equally divided between,
national labor market research and information under
paragraph (2)(A) and State labor market information and
labor exchange research under paragraph (2)(C), and not
more than 2 percent of such amount shall be for the
evaluation and report required under paragraph (4);
``(B) 20 percent shall be dedicated to Pathways Out
of Poverty Demonstration Programs under paragraph
(2)(E); and
``(C) the remainder shall be divided equally
between National Energy Partnership Training Grants
under paragraph (2)(B) and State energy training
partnership grants under paragraph (2)(D).''.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A--Department of Transportation
SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRONMENT.
(a) In General.--Section 102 of title 49, United States Code, is
amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following:
``(g) Office of Climate Change and Environment.--
``(1) Establishment.--There is established in the
Department an Office of Climate Change and Environment to plan,
coordinate, and implement--
``(A) department-wide research, strategies, and
actions under the Department's statutory authority to
reduce transportation-related energy use and mitigate
the effects of climate change; and
``(B) department-wide research strategies and
actions to address the impacts of climate change on
transportation systems and infrastructure.
``(2) Clearinghouse.--The Office shall establish a
clearinghouse of solutions, including cost-effective congestion
reduction approaches, to reduce air pollution and
transportation-related energy use and mitigate the effects of
climate change.''.
(b) Coordination.--The Office of Climate Change and Environment of
the Department of Transportation shall coordinate its activities with
the United States Global Change Research Program.
(c) Transportation System's Impact on Climate Change and Fuel
Efficiency.--
(1) Study.--The Office of Climate Change and Environment,
in coordination with the Environmental Protection Agency and in
consultation with the United States Global Change Research
Program, shall conduct a study to examine the impact of the
Nation's transportation system on climate change and the fuel
efficiency savings and clean air impacts of major
transportation projects, to identify solutions to reduce air
pollution and transportation-related energy use and mitigate
the effects of climate change, and to examine the potential
fuel savings that could result from changes in the current
transportation system and through the use of intelligent
transportation systems that help businesses and consumers to
plan their travel and avoid delays, including Web-based real-
time transit information systems, congestion information
systems, carpool information systems, parking information
systems, freight route management systems, and traffic
management systems.
(2) Report.--Not later than one year after the date of
enactment of this Act, the Secretary of Transportation, in
coordination with the Administrator of the Environmental
Protection Agency, shall transmit to the Committee on
Transportation and Infrastructure and the Committee on Energy
and Commerce of the House of Representatives and the Committee
on Commerce, Science, and Transportation and the Committee on
Environment and Public Works of the Senate a report that
contains the results of the study required under this section.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Transportation for the Office of
Climate Change and Environment to carry out its duties under section
102(g) of title 49, United States Code (as amended by this Act), such
sums as may be necessary for fiscal years 2008 through 2011.
Subtitle B--Railroads
SEC. 1111. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT PILOT PROGRAM.
(a) In General.--The Secretary of Transportation, in consultation
with the Administrator of the Environmental Protection Agency, shall
establish and carry out a pilot program for making grants to railroad
carriers (as defined in section 20102 of title 49, United States Code)
and State and local governments--
(1) for assistance in purchasing hybrid or other energy-
efficient locomotives, including hybrid switch and generator-
set locomotives; and
(2) to demonstrate the extent to which such locomotives
increase fuel economy, reduce emissions, and lower costs of
operation.
(b) Limitation.--Notwithstanding subsection (a), no grant under
this section may be used to fund the costs of emissions reductions that
are mandated under Federal law.
(c) Grant Criteria.--In selecting applicants for grants under this
section, the Secretary of Transportation shall consider--
(1) the level of energy efficiency that would be achieved
by the proposed project;
(2) the extent to which the proposed project would assist
in commercial deployment of hybrid or other energy-efficient
locomotive technologies;
(3) the extent to which the proposed project complements
other private or governmental partnership efforts to improve
air quality or fuel efficiency in a particular area; and
(4) the extent to which the applicant demonstrates
innovative strategies and a financial commitment to increasing
energy efficiency and reducing greenhouse gas emissions of its
railroad operations.
(d) Competitive Grant Selection Process.--
(1) Applications.--A railroad carrier or State or local
government seeking a grant under this section shall submit for
approval by the Secretary of Transportation an application for
the grant containing such information as the Secretary of
Transportation may require.
(2) Competitive selection.--The Secretary of Transportation
shall conduct a national solicitation for applications for
grants under this section and shall select grantees on a
competitive basis.
(e) Federal Share.--The Federal share of the cost of a project
under this section shall not exceed 80 percent of the project cost.
(f) Report.--Not later than 3 years after the date of enactment of
this Act, the Secretary of Transportation shall submit to Congress a
report on the results of the pilot program carried out under this
section.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of Transportation $10,000,000 for each of
the fiscal years 2008 through 2011 to carry out this section. Such
funds shall remain available until expended.
SEC. 1112. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS.
(a) Amendment.--Chapter 223 of title 49, United States Code, is
amended to read as follows:
``CHAPTER 223--CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS
``Sec.
``22301. Capital grants for class II and class III railroads.
``Sec. 22301. Capital grants for class II and class III railroads
``(a) Establishment of Program.--
``(1) Establishment.--The Secretary of Transportation shall
establish a program for making capital grants to class II and
class III railroads. Such grants shall be for projects in the
public interest that--
``(A)(i) rehabilitate, preserve, or improve
railroad track (including roadbed, bridges, and related
track structures) used primarily for freight
transportation;
``(ii) facilitate the continued or greater use of
railroad transportation for freight shipments; and
``(iii) reduce the use of less fuel efficient modes
of transportation in the transportation of such
shipments; and
``(B) demonstrate innovative technologies and
advanced research and development that increase fuel
economy, reduce greenhouse gas emissions, and lower the
costs of operation.
``(2) Provision of grants.--Grants may be provided under
this chapter--
``(A) directly to the class II or class III
railroad; or
``(B) with the concurrence of the class II or class
III railroad, to a State or local government.
``(3) State cooperation.--Class II and class III railroad
applicants for a grant under this chapter are encouraged to
utilize the expertise and assistance of State transportation
agencies in applying for and administering such grants. State
transportation agencies are encouraged to provide such
expertise and assistance to such railroads.
``(4) Regulations.--Not later than October 1, 2008, the
Secretary shall issue final regulations to implement the
program under this section.
``(b) Maximum Federal Share.--The maximum Federal share for
carrying out a project under this section shall be 80 percent of the
project cost. The non-Federal share may be provided by any non-Federal
source in cash, equipment, or supplies. Other in-kind contributions may
be approved by the Secretary on a case-by-case basis consistent with
this chapter.
``(c) Use of Funds.--Grants provided under this section shall be
used to implement track capital projects as soon as possible. In no
event shall grant funds be contractually obligated for a project later
than the end of the third Federal fiscal year following the year in
which the grant was awarded. Any funds not so obligated by the end of
such fiscal year shall be returned to the Secretary for reallocation.
``(d) Employee Protection.--The Secretary shall require as a
condition of any grant made under this section that the recipient
railroad provide a fair arrangement at least as protective of the
interests of employees who are affected by the project to be funded
with the grant as the terms imposed under section 11326(a), as in
effect on the date of the enactment of this chapter.
``(e) Labor Standards.--
``(1) Prevailing wages.--The Secretary shall ensure that
laborers and mechanics employed by contractors and
subcontractors in construction work financed by a grant made
under this section will be paid wages not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor under subchapter IV of
chapter 31 of title 40 (commonly known as the `Davis-Bacon
Act'). The Secretary shall make a grant under this section only
after being assured that required labor standards will be
maintained on the construction work.
``(2) Wage rates.--Wage rates in a collective bargaining
agreement negotiated under the Railway Labor Act (45 U.S.C. 151
et seq.) are deemed for purposes of this subsection to comply
with the subchapter IV of chapter 31 of title 40.
``(f) Study.--The Secretary shall conduct a study of the projects
carried out with grant assistance under this section to determine the
extent to which the program helps promote a reduction in fuel use
associated with the transportation of freight and demonstrates
innovative technologies that increase fuel economy, reduce greenhouse
gas emissions, and lower the costs of operation. Not later than March
31, 2009, the Secretary shall submit a report to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Commerce, Science, and Transportation of the Senate on
the study, including any recommendations the Secretary considers
appropriate regarding the program.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $50,000,000 for each of fiscal years 2008
through 2011 for carrying out this section.''.
(b) Clerical Amendment.--The item relating to chapter 223 in the
table of chapters of subtitle V of title 49, United States Code, is
amended to read as follows:
``223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS.. 22301''.
Subtitle C--Marine Transportation
SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE.
(a) In General.--Title 46, United States Code, is amended by adding
after chapter 555 the following:
``CHAPTER 556--SHORT SEA TRANSPORTATION
``Sec. 55601. Short sea transportation program.
``Sec. 55602. Cargo and shippers.
``Sec. 55603. Interagency coordination.
``Sec. 55604. Research on short sea transportation.
``Sec. 55605. Short sea transportation defined.
``Sec. 55601. Short sea transportation program
``(a) Establishment.--The Secretary of Transportation shall
establish a short sea transportation program and designate short sea
transportation projects to be conducted under the program to mitigate
landside congestion.
``(b) Program Elements.--The program shall encourage the use of
short sea transportation through the development and expansion of--
``(1) documented vessels;
``(2) shipper utilization;
``(3) port and landside infrastructure; and
``(4) marine transportation strategies by State and local
governments.
``(c) Short Sea Transportation Routes.--The Secretary shall
designate short sea transportation routes as extensions of the surface
transportation system to focus public and private efforts to use the
waterways to relieve landside congestion along coastal corridors. The
Secretary may collect and disseminate data for the designation and
delineation of short sea transportation routes.
``(d) Project Designation.--The Secretary may designate a project
to be a short sea transportation project if the Secretary determines
that the project may--
``(1) offer a waterborne alternative to available landside
transportation services using documented vessels; and
``(2) provide transportation services for passengers or
freight (or both) that may reduce congestion on landside
infrastructure using documented vessels.
``(e) Elements of Program.--For a short sea transportation project
designated under this section, the Secretary may--
``(1) promote the development of short sea transportation
services;
``(2) coordinate, with ports, State departments of
transportation, localities, other public agencies, and the
private sector and on the development of landside facilities
and infrastructure to support short sea transportation
services; and
``(3) develop performance measures for the short sea
transportation program.
``(f) Multistate, State and Regional Transportation Planning.--The
Secretary, in consultation with Federal entities and State and local
governments, shall develop strategies to encourage the use of short sea
transportation for transportation of passengers and cargo. The
Secretary shall--
``(1) assess the extent to which States and local
governments include short sea transportation and other marine
transportation solutions in their transportation planning;
``(2) encourage State departments of transportation to
develop strategies, where appropriate, to incorporate short sea
transportation, ferries, and other marine transportation
solutions for regional and interstate transport of freight and
passengers in their transportation planning; and
``(3) encourage groups of States and multi-State
transportation entities to determine how short sea
transportation can address congestion, bottlenecks, and other
interstate transportation challenges.
``Sec. 55602. Cargo and shippers
``(a) Memorandums of Agreement.--The Secretary of Transportation
shall enter into memorandums of understanding with the heads of other
Federal entities to transport federally owned or generated cargo using
a short sea transportation project designated under section 55601 when
practical or available.
``(b) Short-Term Incentives.--The Secretary shall consult shippers
and other participants in transportation logistics and develop
proposals for short-term incentives to encourage the use of short sea
transportation.
``Sec. 55603. Interagency coordination
``The Secretary of Transportation shall establish a board to
identify and seek solutions to impediments hindering effective use of
short sea transportation. The board shall include representatives of
the Environmental Protection Agency and other Federal, State, and local
governmental entities and private sector entities.
``Sec. 55604. Research on short sea transportation
``The Secretary of Transportation, in consultation with the
Administrator of the Environmental Protection Agency, may conduct
research on short sea transportation, regarding--
``(1) the environmental and transportation benefits to be
derived from short sea transportation alternatives for other
forms of transportation;
``(2) technology, vessel design, and other improvements
that would reduce emissions, increase fuel economy, and lower
costs of short sea transportation and increase the efficiency
of intermodal transfers; and
``(3) solutions to impediments to short sea transportation
projects designated under section 55601.
``Sec. 55605. Short sea transportation defined
``In this chapter, the term `short sea transportation' means the
carriage by vessel of cargo--
``(1) that is--
``(A) contained in intermodal cargo containers and
loaded by crane on the vessel; or
``(B) loaded on the vessel by means of wheeled
technology; and
``(2) that is--
``(A) loaded at a port in the United States and
unloaded either at another port in the United States or
at a port in Canada located in the Great Lakes Saint
Lawrence Seaway System; or
``(B) loaded at a port in Canada located in the
Great Lakes Saint Lawrence Seaway System and unloaded
at a port in the United States.''.
(b) Clerical Amendment.--The table of chapters at the beginning of
subtitle V of such title is amended by inserting after the item
relating to chapter 555 the following:
``556. Short Sea Transportation............................. 55601''.
(c) Regulations.--
(1) Interim regulations.--Not later than 90 days after the
date of enactment of this Act, the Secretary of Transportation
shall issue temporary regulations to implement the program
under this section. Subchapter II of chapter 5 of title 5,
United States Code, does not apply to a temporary regulation
issued under this paragraph or to an amendment to such a
temporary regulation.
(2) Final regulations.--Not later than October 1, 2008, the
Secretary of Transportation shall issue final regulations to
implement the program under this section.
SEC. 1122. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL CONSTRUCTION
FUND.
(a) Definition of Qualified Vessel.--Section 53501 of title 46,
United States Code, is amended--
(1) in paragraph (5)(A)(iii) by striking ``or noncontiguous
domestic'' and inserting ``noncontiguous domestic, or short sea
transportation trade''; and
(2) by inserting after paragraph (6) the following:
``(7) Short sea transportation trade.--The term `short sea
transportation trade' means the carriage by vessel of cargo--
``(A) that is--
``(i) contained in intermodal cargo
containers and loaded by crane on the vessel;
or
``(ii) loaded on the vessel by means of
wheeled technology; and
``(B) that is--
``(i) loaded at a port in the United States
and unloaded either at another port in the
United States or at a port in Canada located in
the Great Lakes Saint Lawrence Seaway System;
or
``(ii) loaded at a port in Canada located
in the Great Lakes Saint Lawrence Seaway System
and unloaded at a port in the United States.''.
(b) Allowable Purpose.--Section 53503(b) of such title is amended
by striking ``or noncontiguous domestic trade'' and inserting
``noncontiguous domestic, or short sea transportation trade''.
SEC. 1123. SHORT SEA TRANSPORTATION REPORT.
Not later than one year after the date of enactment of this Act,
the Secretary of Transportation, in consultation with the Administrator
of the Environmental Protection Agency, shall submit to the Committee
on Transportation and Infrastructure of the House of Representatives
and the Committee on Commerce, Science, and Transportation of the
Senate a report on the short sea transportation program established
under the amendments made by section 1121. The report shall include a
description of the activities conducted under the program, and any
recommendations for further legislative or administrative action that
the Secretary of Transportation considers appropriate.
Subtitle D--Highways
SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.
Section 120(c) of title 23, United States Code, is amended--
(1) in the subsection heading by striking ``for Certain
Safety Projects'';
(2) by striking ``The Federal share'' and inserting the
following:
``(1) Certain safety projects.--The Federal share''; and
(3) by adding at the end the following:
``(2) CMAQ projects.--The Federal share payable on account
of a project or program carried out under section 149 with
funds obligated in fiscal year 2008 or 2009, or both, shall be
not less than 80 percent and, at the discretion of the State,
may be up to 100 percent of the cost thereof.''.
SEC. 1132. DISTRIBUTION OF RESCISSIONS.
(a) In General.--Any unobligated balances of amounts that are
appropriated from the Highway Trust Fund for a fiscal year, and
apportioned under chapter 1 of title 23, United States Code, before,
on, or after the date of enactment of this Act and that are rescinded
in fiscal year 2008 or fiscal year 2009 shall be distributed by the
Secretary of Transportation within each State (as defined in section
101 of such title) among all programs for which funds are apportioned
under such chapter for such fiscal year, to the extent sufficient funds
remain available for obligation, in the ratio that the amount of funds
apportioned for each program under such chapter for such fiscal year,
bears to the amount of funds apportioned for all such programs under
such chapter for such fiscal year.
(b) Adjustments.--A State may make adjustments to the distribution
of a rescission within the State for a fiscal year under subsection (a)
by transferring the amounts to be rescinded among the programs for
which funds are apportioned under chapter 1 of title 23, United States
Code, for such fiscal year, except that in making such adjustments the
State may not rescind from any such program more than 110 percent of
the funds to be rescinded from the program for the fiscal year as
determined by the Secretary of Transportation under subsection (a).
(c) Treatment of Transportation Enhancement Set-Aside and Funds
Suballocated to Substate Areas.--Funds set aside under sections
133(d)(2) and 133(d)(3) of title 23, United States Code, shall be
treated as being apportioned under chapter 1 of such title for purposes
of subsection (a).
SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COMPLETE STREETS DESIGN
TECHNIQUES.
It is the sense of Congress that in constructing new roadways or
rehabilitating existing facilities, State and local governments should
consider policies designed to accommodate all users, including
motorists, pedestrians, cyclists, transit riders, and people of all
ages and abilities, in order to--
(1) serve all surface transportation users by creating a
more interconnected and intermodal system;
(2) create more viable transportation options; and
(3) facilitate the use of environmentally friendly options,
such as public transportation, walking, and bicycling.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS
SEC. 1201. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY.
Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31))
is amended by adding at the end the following:
``(F) Express loans for renewable energy and energy
efficiency.--
``(i) Definitions.--In this subparagraph--
``(I) the term `biomass'--
``(aa) means any organic
material that is available on a
renewable or recurring basis,
including--
``(AA) agricultural
crops;
``(BB) trees grown
for energy production;
``(CC) wood waste
and wood residues;
``(DD) plants
(including aquatic
plants and grasses);
``(EE) residues;
``(FF) fibers;
``(GG) animal
wastes and other waste
materials; and
``(HH) fats, oils,
and greases (including
recycled fats, oils,
and greases); and
``(bb) does not include--
``(AA) paper that
is commonly recycled;
or
``(BB) unsegregated
solid waste;
``(II) the term `energy efficiency
project' means the installation or
upgrading of equipment that results in
a significant reduction in energy
usage; and
``(III) the term `renewable energy
system' means a system of energy
derived from--
``(aa) a wind, solar,
biomass (including biodiesel),
or geothermal source; or
``(bb) hydrogen derived
from biomass or water using an
energy source described in item
(aa).
``(ii) Loans.--The Administrator may make a
loan under the Express Loan Program for the
purpose of--
``(I) purchasing a renewable energy
system; or
``(II) carrying out an energy
efficiency project for a small business
concern.''.
SEC. 1202. PILOT PROGRAM FOR REDUCED 7(A) FEES FOR PURCHASE OF ENERGY
EFFICIENT TECHNOLOGIES.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is
amended by adding at the end the following:
``(32) Loans for energy efficient technologies.--
``(A) Definitions.--In this paragraph--
``(i) the term `cost' has the meaning given
that term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a);
``(ii) the term `covered energy efficiency
loan' means a loan--
``(I) made under this subsection;
and
``(II) the proceeds of which are
used to purchase energy efficient
designs, equipment, or fixtures, or to
reduce the energy consumption of the
borrower by 10 percent or more; and
``(iii) the term `pilot program' means the
pilot program established under subparagraph
(B)
``(B) Establishment.--The Administrator shall
establish and carry out a pilot program under which the
Administrator shall reduce the fees for covered energy
efficiency loans.
``(C) Duration.--The pilot program shall terminate
at the end of the second full fiscal year after the
date that the Administrator establishes the pilot
program.
``(D) Maximum participation.--A covered energy
efficiency loan shall include the maximum participation
levels by the Administrator permitted for loans made
under this subsection.
``(E) Fees.--
``(i) In general.--The fee on a covered
energy efficiency loan shall be equal to 50
percent of the fee otherwise applicable to that
loan under paragraph (18).
``(ii) Waiver.--The Administrator may waive
clause (i) for a fiscal year if--
``(I) for the fiscal year before
that fiscal year, the annual rate of
default of covered energy efficiency
loans exceeds that of loans made under
this subsection that are not covered
energy efficiency loans;
``(II) the cost to the
Administration of making loans under
this subsection is greater than zero
and such cost is directly attributable
to the cost of making covered energy
efficiency loans; and
``(III) no additional sources of
revenue authority are available to
reduce the cost of making loans under
this subsection to zero.
``(iii) Effect of waiver.--If the
Administrator waives the reduction of fees
under clause (ii), the Administrator--
``(I) shall not assess or collect
fees in an amount greater than
necessary to ensure that the cost of
the program under this subsection is
not greater than zero; and
``(II) shall reinstate the fee
reductions under clause (i) when the
conditions in clause (ii) no longer
apply.
``(iv) No increase of fees.--The
Administrator shall not increase the fees under
paragraph (18) on loans made under this
subsection that are not covered energy
efficiency loans as a direct result of the
pilot program.
``(F) GAO report.--
``(i) In general.--Not later than 1 year
after the date that the pilot program
terminates, the Comptroller General of the
United States shall submit to the Committee on
Small Business of the House of Representatives
and the Committee on Small Business and
Entrepreneurship of the Senate a report on the
pilot program.
``(ii) Contents.--The report submitted
under clause (i) shall include--
``(I) the number of covered energy
efficiency loans for which fees were
reduced under the pilot program;
``(II) a description of the energy
efficiency savings with the pilot
program;
``(III) a description of the impact
of the pilot program on the program
under this subsection;
``(IV) an evaluation of the
efficacy and potential fraud and abuse
of the pilot program; and
``(V) recommendations for improving
the pilot program.''.
SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``association'' means the association of small
business development centers established under section
21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A));
(3) the term ``disability'' has the meaning given that term
in section 3 of the Americans with Disabilities Act of 1990 (42
U.S.C. 12102);
(4) the term ``Efficiency Program'' means the Small
Business Energy Efficiency Program established under subsection
(c)(1);
(5) the term ``electric utility'' has the meaning given
that term in section 3 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2602);
(6) the term ``high performance green building'' has the
meaning given that term in section 401;
(7) the term ``on-bill financing'' means a low interest or
no interest financing agreement between a small business
concern and an electric utility for the purchase or
installation of equipment, under which the regularly scheduled
payment of that small business concern to that electric utility
is not reduced by the amount of the reduction in cost
attributable to the new equipment and that amount is credited
to the electric utility, until the cost of the purchase or
installation is repaid;
(8) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632);
(9) the term ``small business development center'' means a
small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648);
(10) the term ``telecommuting'' means the use of
telecommunications to perform work functions under
circumstances which reduce or eliminate the need to commute;
(11) the term ``Telecommuting Pilot Program'' means the
pilot program established under subsection (d)(1)(A); and
(12) the term ``veteran'' has the meaning given that term
in section 101 of title 38, United States Code.
(b) Implementation of Small Business Energy Efficiency Program.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall promulgate final
rules establishing the Government-wide program authorized under
subsection (d) of section 337 of the Energy Policy and
Conservation Act (42 U.S.C. 6307) that ensure compliance with
that subsection by not later than 6 months after such date of
enactment.
(2) Program required.--The Administrator shall develop and
coordinate a Government-wide program, building on the Energy
Star for Small Business program, to assist small business
concerns in--
(A) becoming more energy efficient;
(B) understanding the cost savings from improved
energy efficiency; and
(C) identifying financing options for energy
efficiency upgrades.
(3) Consultation and cooperation.--The program required by
paragraph (2) shall be developed and coordinated--
(A) in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection
Agency; and
(B) in cooperation with any entities the
Administrator considers appropriate, such as industry
trade associations, industry members, and energy
efficiency organizations.
(4) Availability of information.--The Administrator shall
make available the information and materials developed under
the program required by paragraph (2) to--
(A) small business concerns, including smaller
design, engineering, and construction firms; and
(B) other Federal programs for energy efficiency,
such as the Energy Star for Small Business program.
(5) Strategy and report.--
(A) Strategy required.--The Administrator shall
develop a strategy to educate, encourage, and assist
small business concerns in adopting energy efficient
building fixtures and equipment.
(B) Report.--Not later than December 31, 2008, the
Administrator shall submit to Congress a report
containing a plan to implement the strategy developed
under subparagraph (A).
(c) Small Business Sustainability Initiative.--
(1) Authority.--The Administrator shall establish a Small
Business Energy Efficiency Program to provide energy efficiency
assistance to small business concerns through small business
development centers.
(2) Small business development centers.--
(A) In general.--In carrying out the Efficiency
Program, the Administrator shall enter into agreements
with small business development centers under which
such centers shall--
(i) provide access to information and
resources on energy efficiency practices,
including on-bill financing options;
(ii) conduct training and educational
activities;
(iii) offer confidential, free, one-on-one,
in-depth energy audits to the owners and
operators of small business concerns regarding
energy efficiency practices;
(iv) give referrals to certified
professionals and other providers of energy
efficiency assistance who meet such standards
for educational, technical, and professional
competency as the Administrator shall
establish;
(v) to the extent not inconsistent with
controlling State public utility regulations,
act as a facilitator between small business
concerns, electric utilities, lenders, and the
Administration to facilitate on-bill financing
arrangements;
(vi) provide necessary support to small
business concerns to--
(I) evaluate energy efficiency
opportunities and opportunities to
design or construct high performance
green buildings;
(II) evaluate renewable energy
sources, such as the use of solar and
small wind to supplement power
consumption;
(III) secure financing to achieve
energy efficiency or to design or
construct high performance green
buildings; and
(IV) implement energy efficiency
projects;
(vii) assist owners of small business
concerns with the development and
commercialization of clean technology products,
goods, services, and processes that use
renewable energy sources, dramatically reduce
the use of natural resources, and cut or
eliminate greenhouse gas emissions through--
(I) technology assessment;
(II) intellectual property;
(III) Small Business Innovation
Research submissions under section 9 of
the Small Business Act (15 U.S.C. 638);
(IV) strategic alliances;
(V) business model development; and
(VI) preparation for investors; and
(viii) help small business concerns improve
environmental performance by shifting to less
hazardous materials and reducing waste and
emissions, including by providing assistance
for small business concerns to adapt the
materials they use, the processes they operate,
and the products and services they produce.
(B) Reports.--Each small business development
center participating in the Efficiency Program shall
submit to the Administrator and the Administrator of
the Environmental Protection Agency an annual report
that includes--
(i) a summary of the energy efficiency
assistance provided by that center under the
Efficiency Program;
(ii) the number of small business concerns
assisted by that center under the Efficiency
Program;
(iii) statistics on the total amount of
energy saved as a result of assistance provided
by that center under the Efficiency Program;
and
(iv) any additional information determined
necessary by the Administrator, in consultation
with the association.
(C) Reports to congress.--Not later than 60 days
after the date on which all reports under subparagraph
(B) relating to a year are submitted, the Administrator
shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives a report
summarizing the information regarding the Efficiency
Program submitted by small business development centers
participating in that program.
(3) Eligibility.--A small business development center shall
be eligible to participate in the Efficiency Program only if
that center is certified under section 21(k)(2) of the Small
Business Act (15 U.S.C. 648(k)(2)).
(4) Selection of participating state programs.--From among
small business development centers submitting applications to
participate in the Efficiency Program, the Administrator--
(A) shall, to the maximum extent practicable,
select small business development centers in such a
manner so as to promote a nationwide distribution of
centers participating in the Efficiency Program; and
(B) may not select more than 1 small business
development center in a State to participate in the
Efficiency Program.
(5) Matching requirement.--Subparagraphs (A) and (B) of
section 21(a)(4) of the Small Business Act (15 U.S.C.
648(a)(4)) shall apply to assistance made available under the
Efficiency Program.
(6) Grant amounts.--Each small business development center
selected to participate in the Efficiency Program under
paragraph (4) shall be eligible to receive a grant in an amount
equal to--
(A) not less than $100,000 in each fiscal year; and
(B) not more than $300,000 in each fiscal year.
(7) Evaluation and report.--The Comptroller General of the
United States shall--
(A) not later than 30 months after the date of
disbursement of the first grant under the Efficiency
Program, initiate an evaluation of that program; and
(B) not later than 6 months after the date of the
initiation of the evaluation under subparagraph (A),
submit to the Administrator, the Committee on Small
Business and Entrepreneurship of the Senate, and the
Committee on Small Business of the House of
Representatives, a report containing--
(i) the results of the evaluation; and
(ii) any recommendations regarding whether
the Efficiency Program, with or without
modification, should be extended to include the
participation of all small business development
centers.
(8) Guarantee.--To the extent not inconsistent with State
law, the Administrator may guarantee the timely payment of a
loan made to a small business concern through an on-bill
financing agreement on such terms and conditions as the
Administrator shall establish through a formal rule making,
after providing notice and an opportunity for comment.
(9) Implementation.--Subject to amounts approved in advance
in appropriations Acts and separate from amounts approved to
carry out section 21(a)(1) of the Small Business Act (15 U.S.C.
648(a)(1)), the Administrator may make grants or enter into
cooperative agreements to carry out this subsection.
(10) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to make grants
and enter into cooperative agreements to carry out this
subsection.
(11) Termination.--The authority under this subsection
shall terminate 4 years after the date of disbursement of the
first grant under the Efficiency Program.
(d) Small Business Telecommuting.--
(1) Pilot program.--
(A) In general.--The Administrator shall conduct,
in not more than 5 of the regions of the
Administration, a pilot program to provide information
regarding telecommuting to employers that are small
business concerns and to encourage such employers to
offer telecommuting options to employees.
(B) Special outreach to individuals with
disabilities.--In carrying out the Telecommuting Pilot
Program, the Administrator shall make a concerted
effort to provide information to--
(i) small business concerns owned by or
employing individuals with disabilities,
particularly veterans who are individuals with
disabilities;
(ii) Federal, State, and local agencies
having knowledge and expertise in assisting
individuals with disabilities, including
veterans who are individuals with disabilities;
and
(iii) any group or organization, the
primary purpose of which is to aid individuals
with disabilities or veterans who are
individuals with disabilities.
(C) Permissible activities.--In carrying out the
Telecommuting Pilot Program, the Administrator may--
(i) produce educational materials and
conduct presentations designed to raise
awareness in the small business community of
the benefits and the ease of telecommuting;
(ii) conduct outreach--
(I) to small business concerns that
are considering offering telecommuting
options; and
(II) as provided in subparagraph
(B); and
(iii) acquire telecommuting technologies
and equipment to be used for demonstration
purposes.
(D) Selection of regions.--In determining which
regions will participate in the Telecommuting Pilot
Program, the Administrator shall give priority
consideration to regions in which Federal agencies and
private-sector employers have demonstrated a strong
regional commitment to telecommuting.
(2) Report to congress.--Not later than 2 years after the
date on which funds are first appropriated to carry out this
subsection, the Administrator shall transmit to the Committee
on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a
report containing the results of an evaluation of the
Telecommuting Pilot Program and any recommendations regarding
whether the pilot program, with or without modification, should
be extended to include the participation of all regions of the
Administration.
(3) Termination.--The Telecommuting Pilot Program shall
terminate 4 years after the date on which funds are first
appropriated to carry out this subsection.
(4) Authorization of appropriations.--There is authorized
to be appropriated to the Administration $5,000,000 to carry
out this subsection.
(e) Encouraging Innovation in Energy Efficiency.--Section 9 of the
Small Business Act (15 U.S.C. 638) is amended by adding at the end the
following:
``(z) Encouraging Innovation in Energy Efficiency.--
``(1) Federal agency energy-related priority.--In carrying
out its duties under this section relating to SBIR and STTR
solicitations by Federal departments and agencies, the
Administrator shall--
``(A) ensure that such departments and agencies
give high priority to small business concerns that
participate in or conduct energy efficiency or
renewable energy system research and development
projects; and
``(B) include in the annual report to Congress
under subsection (b)(7) a determination of whether the
priority described in subparagraph (A) is being carried
out.
``(2) Consultation required.--The Administrator shall
consult with the heads of other Federal departments and
agencies in determining whether priority has been given to
small business concerns that participate in or conduct energy
efficiency or renewable energy system research and development
projects, as required by this subsection.
``(3) Guidelines.--The Administrator shall, as soon as is
practicable after the date of enactment of this subsection,
issue guidelines and directives to assist Federal agencies in
meeting the requirements of this subsection.
``(4) Definitions.--In this subsection--
``(A) the term `biomass'--
``(i) means any organic material that is
available on a renewable or recurring basis,
including--
``(I) agricultural crops;
``(II) trees grown for energy
production;
``(III) wood waste and wood
residues;
``(IV) plants (including aquatic
plants and grasses);
``(V) residues;
``(VI) fibers;
``(VII) animal wastes and other
waste materials; and
``(VIII) fats, oils, and greases
(including recycled fats, oils, and
greases); and
``(ii) does not include--
``(I) paper that is commonly
recycled; or
``(II) unsegregated solid waste;
``(B) the term `energy efficiency project' means
the installation or upgrading of equipment that results
in a significant reduction in energy usage; and
``(C) the term `renewable energy system' means a
system of energy derived from--
``(i) a wind, solar, biomass (including
biodiesel), or geothermal source; or
``(ii) hydrogen derived from biomass or
water using an energy source described in
clause (i).''.
SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP ENERGY
EFFICIENT TECHNOLOGIES AND PURCHASES.
(a) Eligibility for Energy Efficiency Projects.--Section 501(d)(3)
of the Small Business Investment Act of 1958 (15 U.S.C. 695(d)(3)) is
amended--
(1) in subparagraph (G) by striking ``or'' at the end;
(2) in subparagraph (H) by striking the period at the end
and inserting a comma;
(3) by inserting after subparagraph (H) the following:
``(I) reduction of energy consumption by at least
10 percent,
``(J) increased use of sustainable design,
including designs that reduce the use of greenhouse gas
emitting fossil fuels, or low-impact design to produce
buildings that reduce the use of non-renewable
resources and minimize environmental impact, or
``(K) plant, equipment and process upgrades of
renewable energy sources such as the small-scale
production of energy for individual buildings or
communities consumption, commonly known as micropower,
or renewable fuels producers including biodiesel and
ethanol producers.''; and
(4) by adding at the end the following: ``In subparagraphs
(J) and (K), terms have the meanings given those terms under
the Leadership in Energy and Environmental Design (LEED)
standard for green building certification, as determined by the
Administrator.''.
(b) Loans for Plant Projects Used for Energy-Efficient Purposes.--
Section 502(2)(A) of the Small Business Investment Act of 1958 (15
U.S.C. 696(2)(A)) is amended--
(1) in clause (ii) by striking ``and'' at the end;
(2) in clause (iii) by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(iv) $4,000,000 for each project that
reduces the borrower's energy consumption by at
least 10 percent; and
``(v) $4,000,000 for each project that
generates renewable energy or renewable fuels,
such as biodiesel or ethanol production.''.
SEC. 1205. ENERGY SAVING DEBENTURES.
(a) In General.--Section 303 of the Small Business Investment Act
of 1958 (15 U.S.C. 683) is amended by adding at the end the following:
``(k) Energy Saving Debentures.--In addition to any other authority
under this Act, a small business investment company licensed in the
first fiscal year after the date of enactment of this subsection or any
fiscal year thereafter may issue Energy Saving debentures.''.
(b) Definitions.--Section 103 of the Small Business Investment Act
of 1958 (15 U.S.C. 662) is amended--
(1) in paragraph (16), by striking ``and'' at the end;
(2) in paragraph (17), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(18) the term `Energy Saving debenture' means a deferred
interest debenture that--
``(A) is issued at a discount;
``(B) has a 5-year maturity or a 10-year maturity;
``(C) requires no interest payment or annual charge
for the first 5 years;
``(D) is restricted to Energy Saving qualified
investments; and
``(E) is issued at no cost (as defined in section
502 of the Credit Reform Act of 1990) with respect to
purchasing and guaranteeing the debenture; and
``(19) the term `Energy Saving qualified investment' means
investment in a small business concern that is primarily
engaged in researching, manufacturing, developing, or providing
products, goods, or services that reduce the use or consumption
of non-renewable energy resources.''.
SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.
(a) Maximum Leverage.--Section 303(b)(2) of the Small Business
Investment Act of 1958 (15 U.S.C. 303(b)(2)) is amended by adding at
the end the following:
``(D) Investments in energy saving small
businesses.--
``(i) In general.--Subject to clause (ii),
in calculating the outstanding leverage of a
company for purposes of subparagraph (A), the
Administrator shall exclude the amount of the
cost basis of any Energy Saving qualified
investment in a smaller enterprise made in the
first fiscal year after the date of enactment
of this subparagraph or any fiscal year
thereafter by a company licensed in the
applicable fiscal year.
``(ii) Limitations.--
``(I) Amount of exclusion.--The
amount excluded under clause (i) for a
company shall not exceed 33 percent of
the private capital of that company.
``(II) Maximum investment.--A
company shall not make an Energy Saving
qualified investment in any one entity
in an amount equal to more than 20
percent of the private capital of that
company.
``(III) Other terms.--The exclusion
of amounts under clause (i) shall be
subject to such terms as the
Administrator may impose to ensure that
there is no cost (as that term is
defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C.
661a)) with respect to purchasing or
guaranteeing any debenture involved.''.
(b) Maximum Aggregate Amount of Leverage.--Section 303(b)(4) of the
Small Business Investment Act of 1958 (15 U.S.C. 303(b)(4)) is amended
by adding at the end the following:
``(E) Investments in energy saving small
businesses.--
``(i) In general.--Subject to clause (ii),
in calculating the aggregate outstanding
leverage of a company for purposes of
subparagraph (A), the Administrator shall
exclude the amount of the cost basis of any
Energy Saving qualified investment in a smaller
enterprise made in the first fiscal year after
the date of enactment of this subparagraph or
any fiscal year thereafter by a company
licensed in the applicable fiscal year.
``(ii) Limitations.--
``(I) Amount of exclusion.--The
amount excluded under clause (i) for a
company shall not exceed 33 percent of
the private capital of that company.
``(II) Maximum investment.--A
company shall not make an Energy Saving
qualified investment in any one entity
in an amount equal to more than 20
percent of the private capital of that
company.
``(III) Other terms.--The exclusion
of amounts under clause (i) shall be
subject to such terms as the
Administrator may impose to ensure that
there is no cost (as that term is
defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C.
661a)) with respect to purchasing or
guaranteeing any debenture involved.''.
SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.
Title III of the Small Business Investment Act of 1958 (15 U.S.C.
681 et seq.) is amended by adding at the end the following:
``PART C--RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM
``SEC. 381. DEFINITIONS.
``In this part:
``(1) Operational assistance.--The term `operational
assistance' means management, marketing, and other technical
assistance that assists a small business concern with business
development.
``(2) Participation agreement.--The term `participation
agreement' means an agreement, between the Administrator and a
company granted final approval under section 384(e), that--
``(A) details the operating plan and investment
criteria of the company; and
``(B) requires the company to make investments in
smaller enterprises primarily engaged in researching,
manufacturing, developing, producing, or bringing to
market goods, products, or services that generate or
support the production of renewable energy.
``(3) Renewable energy.--The term `renewable energy' means
energy derived from resources that are regenerative or that
cannot be depleted, including solar, wind, ethanol, and
biodiesel fuels.
``(4) Renewable fuel capital investment company.--The term
`Renewable Fuel Capital Investment company' means a company--
``(A) that--
``(i) has been granted final approval by
the Administrator under section 384(e); and
``(ii) has entered into a participation
agreement with the Administrator; or
``(B) that has received conditional approval under
section 384(c).
``(5) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and any other
commonwealth, territory, or possession of the United States.
``(6) Venture capital.--The term `venture capital' means
capital in the form of equity capital investments, as that term
is defined in section 303(g)(4).
``SEC. 382. PURPOSES.
``The purposes of the Renewable Fuel Capital Investment Program
established under this part are--
``(1) to promote the research, development, manufacture,
production, and bringing to market of goods, products, or
services that generate or support the production of renewable
energy by encouraging venture capital investments in smaller
enterprises primarily engaged such activities; and
``(2) to establish a venture capital program, with the
mission of addressing the unmet equity investment needs of
smaller enterprises engaged in researching, developing,
manufacturing, producing, and bringing to market goods,
products, or services that generate or support the production
of renewable energy, to be administered by the Administrator--
``(A) to enter into participation agreements with
Renewable Fuel Capital Investment companies;
``(B) to guarantee debentures of Renewable Fuel
Capital Investment companies to enable each such
company to make venture capital investments in smaller
enterprises engaged in the research, development,
manufacture, production, and bringing to market of
goods, products, or services that generate or support
the production of renewable energy; and
``(C) to make grants to Renewable Fuel Investment
Capital companies, and to other entities, for the
purpose of providing operational assistance to smaller
enterprises financed, or expected to be financed, by
such companies.
``SEC. 383. ESTABLISHMENT.
``The Administrator shall establish a Renewable Fuel Capital
Investment Program, under which the Administrator may--
``(1) enter into participation agreements for the purposes
described in section 382; and
``(2) guarantee the debentures issued by Renewable Fuel
Capital Investment companies as provided in section 385.
``SEC. 384. SELECTION OF RENEWABLE FUEL CAPITAL INVESTMENT COMPANIES.
``(a) Eligibility.--A company is eligible to apply to be designated
as a Renewable Fuel Capital Investment company if the company--
``(1) is a newly formed for-profit entity or a newly formed
for-profit subsidiary of an existing entity;
``(2) has a management team with experience in alternative
energy financing or relevant venture capital financing; and
``(3) has a primary objective of investment in smaller
enterprises that research, manufacture, develop, produce, or
bring to market goods, products, or services that generate or
support the production of renewable energy.
``(b) Application.--A company desiring to be designated as a
Renewable Fuel Capital Investment company shall submit an application
to the Administrator that includes--
``(1) a business plan describing how the company intends to
make successful venture capital investments in smaller
enterprises primarily engaged in the research, manufacture,
development, production, or bringing to market of goods,
products, or services that generate or support the production
of renewable energy;
``(2) information regarding the relevant venture capital
qualifications and general reputation of the management of the
company;
``(3) a description of how the company intends to seek to
address the unmet capital needs of the smaller enterprises
served;
``(4) a proposal describing how the company intends to use
the grant funds provided under this part to provide operational
assistance to smaller enterprises financed by the company,
including information regarding whether the company has
employees with appropriate professional licenses or will
contract with another entity when the services of such an
individual are necessary;
``(5) with respect to binding commitments to be made to the
company under this part, an estimate of the ratio of cash to
in-kind contributions;
``(6) a description of whether and to what extent the
company meets the criteria under subsection (c)(2) and the
objectives of the program established under this part;
``(7) information regarding the management and financial
strength of any parent firm, affiliated firm, or any other firm
essential to the success of the business plan of the company;
and
``(8) such other information as the Administrator may
require.
``(c) Conditional Approval.--
``(1) In general.--From among companies submitting
applications under subsection (b), the Administrator shall
conditionally approve companies to operate as Renewable Fuel
Capital Investment companies.
``(2) Selection criteria.--In conditionally approving
companies under paragraph (1), the Administrator shall
consider--
``(A) the likelihood that the company will meet the
goal of its business plan;
``(B) the experience and background of the
management team of the company;
``(C) the need for venture capital investments in
the geographic areas in which the company intends to
invest;
``(D) the extent to which the company will
concentrate its activities on serving the geographic
areas in which it intends to invest;
``(E) the likelihood that the company will be able
to satisfy the conditions under subsection (d);
``(F) the extent to which the activities proposed
by the company will expand economic opportunities in
the geographic areas in which the company intends to
invest;
``(G) the strength of the proposal by the company
to provide operational assistance under this part as
the proposal relates to the ability of the company to
meet applicable cash requirements and properly use in-
kind contributions, including the use of resources for
the services of licensed professionals, when necessary,
whether provided by employees or contractors; and
``(H) any other factor determined appropriate by
the Administrator.
``(3) Nationwide distribution.--From among companies
submitting applications under subsection (b), the Administrator
shall consider the selection criteria under paragraph (2) and
shall, to the maximum extent practicable, approve at least one
company from each geographic region of the Administration.
``(d) Requirements To Be Met for Final Approval.--
``(1) In general.--The Administrator shall grant each
conditionally approved company 2 years to satisfy the
requirements of this subsection.
``(2) Capital requirement.--Each conditionally approved
company shall raise not less than $3,000,000 of private capital
or binding capital commitments from 1 or more investors (which
shall not be departments or agencies of the Federal Government)
who meet criteria established by the Administrator.
``(3) Nonadministration resources for operational
assistance.--
``(A) In general.--In order to provide operational
assistance to smaller enterprises expected to be
financed by the company, each conditionally approved
company shall have binding commitments (for
contribution in cash or in-kind)--
``(i) from sources other than the
Administration that meet criteria established
by the Administrator; and
``(ii) payable or available over a
multiyear period determined appropriate by the
Administrator (not to exceed 10 years).
``(B) Exception.--The Administrator may, in the
discretion of the Administrator and based upon a
showing of special circumstances and good cause,
consider an applicant to have satisfied the
requirements of subparagraph (A) if the applicant has--
``(i) a viable plan that reasonably
projects the capacity of the applicant to raise
the amount (in cash or in-kind) required under
subparagraph (A); and
``(ii) binding commitments in an amount
equal to not less than 20 percent of the total
amount required under paragraph (A).
``(C) Limitation.--The total amount of a in-kind
contributions by a company shall be not more than 50
percent of the total contributions by a company.
``(e) Final Approval; Designation.--The Administrator shall, with
respect to each applicant conditionally approved under subsection (c)--
``(1) grant final approval to the applicant to operate as a
Renewable Fuel Capital Investment company under this part and
designate the applicant as such a company, if the applicant--
``(A) satisfies the requirements of subsection (d)
on or before the expiration of the time period
described in that subsection; and
``(B) enters into a participation agreement with
the Administrator; or
``(2) if the applicant fails to satisfy the requirements of
subsection (d) on or before the expiration of the time period
described in paragraph (1) of that subsection, revoke the
conditional approval granted under that subsection.
``SEC. 385. DEBENTURES.
``(a) In General.--The Administrator may guarantee the timely
payment of principal and interest, as scheduled, on debentures issued
by any Renewable Fuel Capital Investment company.
``(b) Terms and Conditions.--The Administrator may make guarantees
under this section on such terms and conditions as it determines
appropriate, except that--
``(1) the term of any debenture guaranteed under this
section shall not exceed 15 years; and
``(2) a debenture guaranteed under this section--
``(A) shall carry no front-end or annual fees;
``(B) shall be issued at a discount;
``(C) shall require no interest payments during the
5-year period beginning on the date the debenture is
issued;
``(D) shall be prepayable without penalty after the
end of the 1-year period beginning on the date the
debenture is issued; and
``(E) shall require semiannual interest payments
after the period described in subparagraph (C).
``(c) Full Faith and Credit of the United States.--The full faith
and credit of the United States is pledged to pay all amounts that may
be required to be paid under any guarantee under this part.
``(d) Maximum Guarantee.--
``(1) In general.--Under this section, the Administrator
may guarantee the debentures issued by a Renewable Fuel Capital
Investment company only to the extent that the total face
amount of outstanding guaranteed debentures of such company
does not exceed 150 percent of the private capital of the
company, as determined by the Administrator.
``(2) Treatment of certain federal funds.--For the purposes
of paragraph (1), private capital shall include capital that is
considered to be Federal funds, if such capital is contributed
by an investor other than a department or agency of the Federal
Government.
``SEC. 386. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
``(a) Issuance.--The Administrator may issue trust certificates
representing ownership of all or a fractional part of debentures issued
by a Renewable Fuel Capital Investment company and guaranteed by the
Administrator under this part, if such certificates are based on and
backed by a trust or pool approved by the Administrator and composed
solely of guaranteed debentures.
``(b) Guarantee.--
``(1) In general.--The Administrator may, under such terms
and conditions as it determines appropriate, guarantee the
timely payment of the principal of and interest on trust
certificates issued by the Administrator or its agents for
purposes of this section.
``(2) Limitation.--Each guarantee under this subsection
shall be limited to the extent of principal and interest on the
guaranteed debentures that compose the trust or pool.
``(3) Prepayment or default.--If a debenture in a trust or
pool is prepaid, or in the event of default of such a
debenture, the guarantee of timely payment of principal and
interest on the trust certificates shall be reduced in
proportion to the amount of principal and interest such prepaid
debenture represents in the trust or pool. Interest on prepaid
or defaulted debentures shall accrue and be guaranteed by the
Administrator only through the date of payment of the
guarantee. At any time during its term, a trust certificate may
be called for redemption due to prepayment or default of all
debentures.
``(c) Full Faith and Credit of the United States.--The full faith
and credit of the United States is pledged to pay all amounts that may
be required to be paid under any guarantee of a trust certificate
issued by the Administrator or its agents under this section.
``(d) Fees.--The Administrator shall not collect a fee for any
guarantee of a trust certificate under this section, but any agent of
the Administrator may collect a fee approved by the Administrator for
the functions described in subsection (f)(2).
``(e) Subrogation and Ownership Rights.--
``(1) Subrogation.--If the Administrator pays a claim under
a guarantee issued under this section, it shall be subrogated
fully to the rights satisfied by such payment.
``(2) Ownership rights.--No Federal, State, or local law
shall preclude or limit the exercise by the Administrator of
its ownership rights in the debentures residing in a trust or
pool against which trust certificates are issued under this
section.
``(f) Management and Administration.--
``(1) Registration.--The Administrator may provide for a
central registration of all trust certificates issued under
this section.
``(2) Contracting of functions.--
``(A) In general.--The Administrator may contract
with an agent or agents to carry out on behalf of the
Administrator the pooling and the central registration
functions provided for in this section, including, not
withstanding any other provision of law--
``(i) maintenance, on behalf of and under
the direction of the Administrator, of such
commercial bank accounts or investments in
obligations of the United States as may be
necessary to facilitate the creation of trusts
or pools backed by debentures guaranteed under
this part; and
``(ii) the issuance of trust certificates
to facilitate the creation of such trusts or
pools.
``(B) Fidelity bond or insurance requirement.--Any
agent performing functions on behalf of the
Administrator under this paragraph shall provide a
fidelity bond or insurance in such amounts as the
Administrator determines to be necessary to fully
protect the interests of the United States.
``(3) Regulation of brokers and dealers.--The Administrator
may regulate brokers and dealers in trust certificates issued
under this section.
``(4) Electronic registration.--Nothing in this subsection
may be construed to prohibit the use of a book-entry or other
electronic form of registration for trust certificates issued
under this section.
``SEC. 387. FEES.
``(a) In General.--Except as provided in section 386(d), the
Administrator may charge such fees as it determines appropriate with
respect to any guarantee or grant issued under this part, in an amount
established annually by the Administrator, as necessary to reduce to
zero the cost (as defined in section 502 of the Federal Credit Reform
Act of 1990) to the Administration of purchasing and guaranteeing
debentures under this part, which amounts shall be paid to and retained
by the Administration.
``(b) Offset.--The Administrator may, as provided by section 388,
offset fees charged and collected under subsection (a).
``SEC. 388. FEE CONTRIBUTION.
``(a) In General.--To the extent that amounts are made available to
the Administrator for the purpose of fee contributions, the
Administrator shall contribute to fees paid by the Renewable Fuel
Capital Investment companies under section 387.
``(b) Annual Adjustment.--Each fee contribution under subsection
(a) shall be effective for 1 fiscal year and shall be adjusted as
necessary for each fiscal year thereafter to ensure that amounts under
subsection (a) are fully used. The fee contribution for a fiscal year
shall be based on the outstanding commitments made and the guarantees
and grants that the Administrator projects will be made during that
fiscal year, given the program level authorized by law for that fiscal
year and any other factors that the Administrator determines
appropriate.
``SEC. 389. OPERATIONAL ASSISTANCE GRANTS.
``(a) In General.--
``(1) Authority.--The Administrator may make grants to
Renewable Fuel Capital Investment companies to provide
operational assistance to smaller enterprises financed, or
expected to be financed, by such companies or other entities.
``(2) Terms.--A grant under this subsection shall be made
over a multiyear period not to exceed 10 years, under such
other terms as the Administrator may require.
``(3) Grant amount.--The amount of a grant made under this
subsection to a Renewable Fuel Capital Investment company shall
be equal to the lesser of--
``(A) 10 percent of the resources (in cash or in
kind) raised by the company under section 384(d)(2); or
``(B) $1,000,000.
``(4) Pro rata reductions.--If the amount made available to
carry out this section is insufficient for the Administrator to
provide grants in the amounts provided for in paragraph (3),
the Administrator shall make pro rata reductions in the amounts
otherwise payable to each company and entity under such
paragraph.
``(5) Grants to conditionally approved companies.--
``(A) In general.--Subject to subparagraphs (B) and
(C), upon the request of a company conditionally
approved under section 384(c), the Administrator shall
make a grant to the company under this subsection.
``(B) Repayment by companies not approved.--If a
company receives a grant under this paragraph and does
not enter into a participation agreement for final
approval, the company shall, subject to controlling
Federal law, repay the amount of the grant to the
Administrator.
``(C) Deduction of grant to approved company.--If a
company receives a grant under this paragraph and
receives final approval under section 384(e), the
Administrator shall deduct the amount of the grant from
the total grant amount the company receives for
operational assistance.
``(D) Amount of grant.--No company may receive a
grant of more than $100,000 under this paragraph.
``(b) Supplemental Grants.--
``(1) In general.--The Administrator may make supplemental
grants to Renewable Fuel Capital Investment companies and to
other entities, as authorized by this part, under such terms as
the Administrator may require, to provide additional
operational assistance to smaller enterprises financed, or
expected to be financed, by the companies.
``(2) Matching requirement.--The Administrator may require,
as a condition of any supplemental grant made under this
subsection, that the company or entity receiving the grant
provide from resources (in a cash or in kind), other then those
provided by the Administrator, a matching contribution equal to
the amount of the supplemental grant.
``(c) Limitation.--None of the assistance made available under this
section may be used for any overhead or general and administrative
expense of a Renewable Fuel Capital Investment company.
``SEC. 390. BANK PARTICIPATION.
``(a) In General.--Except as provided in subsection (b), any
national bank, any member bank of the Federal Reserve System, and (to
the extent permitted under applicable State law) any insured bank that
is not a member of such system, may invest in any Renewable Fuel
Capital Investment company, or in any entity established to invest
solely in Renewable Fuel Capital Investment companies.
``(b) Limitation.--No bank described in subsection (a) may make
investments described in such subsection that are greater than 5
percent of the capital and surplus of the bank.
``SEC. 391. FEDERAL FINANCING BANK.
``Notwithstanding section 318, the Federal Financing Bank may
acquire a debenture issued by a Renewable Fuel Capital Investment
company under this part.
``SEC. 392. REPORTING REQUIREMENT.
``Each Renewable Fuel Capital Investment company that participates
in the program established under this part shall provide to the
Administrator such information as the Administrator may require,
including--
``(1) information related to the measurement criteria that
the company proposed in its program application; and
``(2) in each case in which the company makes, under this
part, an investment in, or a loan or a grant to, a business
that is not primarily engaged in the research, development,
manufacture, or bringing to market or renewable energy sources,
a report on the nature, origin, and revenues of the business in
which investments are made.
``SEC. 393. EXAMINATIONS.
``(a) In General.--Each Renewable Fuel Capital Investment company
that participates in the program established under this part shall be
subject to examinations made at the direction of the Investment
Division of the Administration in accordance with this section.
``(b) Assistance of Private Sector Entities.--Examinations under
this section may be conducted with the assistance of a private sector
entity that has both the qualifications and the expertise necessary to
conduct such examinations.
``(c) Costs.--
``(1) Assessment.--
``(A) In general.--The Administrator may assess the
cost of examinations under this section, including
compensation of the examiners, against the company
examined.
``(B) Payment.--Any company against which the
Administrator assesses costs under this paragraph shall
pay such costs.
``(2) Deposit of funds.--Funds collected under this section
shall be deposited in the account for salaries and expenses of
the Administration.
``SEC. 394. MISCELLANEOUS.
``To the extent such procedures are not inconsistent with the
requirements of this part, the Administrator may take such action as
set forth in sections 309, 311, 312, and 314 and an officer, director,
employee, agent, or other participant in the management or conduct of
the affairs of a Renewable Fuel Capital Investment company shall be
subject to the requirements of such sections.
``SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.
``Using the procedures for removing or suspending a director or an
officer of a licensee set forth in section 313 (to the extent such
procedures are not inconsistent with the requirements of this part),
the Administrator may remove or suspend any director or officer of any
Renewable Fuel Capital Investment company.
``SEC. 396. REGULATIONS.
``The Administrator may issue such regulations as the Administrator
determines necessary to carry out the provisions of this part in
accordance with its purposes.
``SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) In General.--Subject to the availability of appropriations,
the Administrator is authorized to make $15,000,000 in operational
assistance grants under section 389 for each of fiscal years 2008 and
2009.
``(b) Funds Collected for Examinations.--Funds deposited under
section 393(c)(2) are authorized to be appropriated only for the costs
of examinations under section 393 and for the costs of other oversight
activities with respect to the program established under this part.
``SEC. 398. TERMINATION.
``The program under this part shall terminate at the end of the
second full fiscal year after the date that the Administrator
establishes the program under this part.''.
SEC. 1208. STUDY AND REPORT.
The Administrator of the Small Business Administration shall
conduct a study of the Renewable Fuel Capital Investment Program under
part C of title III of the Small Business Investment Act of 1958, as
added by this Act. Not later than 3 years after the date of enactment
of this Act, the Administrator shall complete the study under this
section and submit to Congress a report regarding the results of the
study.
TITLE XIII--SMART GRID
SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF ELECTRICITY GRID.
It is the policy of the United States to support the modernization
of the Nation's electricity transmission and distribution system to
maintain a reliable and secure electricity infrastructure that can meet
future demand growth and to achieve each of the following, which
together characterize a Smart Grid:
(1) Increased use of digital information and controls
technology to improve reliability, security, and efficiency of
the electric grid.
(2) Dynamic optimization of grid operations and resources,
with full cyber-security.
(3) Deployment and integration of distributed resources and
generation, including renewable resources.
(4) Development and incorporation of demand response,
demand-side resources, and energy-efficiency resources.
(5) Deployment of ``smart'' technologies (real-time,
automated, interactive technologies that optimize the physical
operation of appliances and consumer devices) for metering,
communications concerning grid operations and status, and
distribution automation.
(6) Integration of ``smart'' appliances and consumer
devices.
(7) Deployment and integration of advanced electricity
storage and peak-shaving technologies, including plug-in
electric and hybrid electric vehicles, and thermal-storage air
conditioning.
(8) Provision to consumers of timely information and
control options.
(9) Development of standards for communication and
interoperability of appliances and equipment connected to the
electric grid, including the infrastructure serving the grid.
(10) Identification and lowering of unreasonable or
unnecessary barriers to adoption of smart grid technologies,
practices, and services.
SEC. 1302. SMART GRID SYSTEM REPORT.
The Secretary, acting through the Assistant Secretary of the Office
of Electricity Delivery and Energy Reliability (referred to in this
section as the ``OEDER'') and through the Smart Grid Task Force
established in section 1303, shall, after consulting with any
interested individual or entity as appropriate, no later than one year
after enactment, and every two years thereafter, report to Congress
concerning the status of smart grid deployments nationwide and any
regulatory or government barriers to continued deployment. The report
shall provide the current status and prospects of smart grid
development, including information on technology penetration,
communications network capabilities, costs, and obstacles. It may
include recommendations for State and Federal policies or actions
helpful to facilitate the transition to a smart grid. To the extent
appropriate, it should take a regional perspective. In preparing this
report, the Secretary shall solicit advice and contributions from the
Smart Grid Advisory Committee created in section 1303; from other
involved Federal agencies including but not limited to the Federal
Energy Regulatory Commission (``Commission''), the National Institute
of Standards and Technology (``Institute''), and the Department of
Homeland Security; and from other stakeholder groups not already
represented on the Smart Grid Advisory Committee.
SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK FORCE.
(a) Smart Grid Advisory Committee.--
(1) Establishment.--The Secretary shall establish, within
90 days of enactment of this Part, a Smart Grid Advisory
Committee (either as an independent entity or as a designated
sub-part of a larger advisory committee on electricity
matters). The Smart Grid Advisory Committee shall include eight
or more members appointed by the Secretary who have sufficient
experience and expertise to represent the full range of smart
grid technologies and services, to represent both private and
non-Federal public sector stakeholders. One member shall be
appointed by the Secretary to Chair the Smart Grid Advisory
Committee.
(2) Mission.--The mission of the Smart Grid Advisory
Committee shall be to advise the Secretary, the Assistant
Secretary, and other relevant Federal officials concerning the
development of smart grid technologies, the progress of a
national transition to the use of smart-grid technologies and
services, the evolution of widely-accepted technical and
practical standards and protocols to allow interoperability and
inter-communication among smart-grid capable devices, and the
optimum means of using Federal incentive authority to encourage
such progress.
(3) Applicability of federal advisory committee act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall apply to
the Smart Grid Advisory Committee.
(b) Smart Grid Task Force.--
(1) Establishment.--The Assistant Secretary of the Office
of Electricity Delivery and Energy Reliability shall establish,
within 90 days of enactment of this Part, a Smart Grid Task
Force composed of designated employees from the various
divisions of that office who have responsibilities related to
the transition to smart-grid technologies and practices. The
Assistant Secretary or his designee shall be identified as the
Director of the Smart Grid Task Force. The Chairman of the
Federal Energy Regulatory Commission and the Director of the
National Institute of Standards and Technology shall each
designate at least one employee to participate on the Smart
Grid Task Force. Other members may come from other agencies at
the invitation of the Assistant Secretary or the nomination of
the head of such other agency. The Smart Grid Task Force shall,
without disrupting the work of the Divisions or Offices from
which its members are drawn, provide an identifiable Federal
entity to embody the Federal role in the national transition
toward development and use of smart grid technologies.
(2) Mission.--The mission of the Smart Grid Task Force
shall be to insure awareness, coordination and integration of
the diverse activities of the Office and elsewhere in the
Federal government related to smart-grid technologies and
practices, including but not limited to: smart grid research
and development; development of widely accepted smart-grid
standards and protocols; the relationship of smart-grid
technologies and practices to electric utility regulation; the
relationship of smart-grid technologies and practices to
infrastructure development, system reliability and security;
and the relationship of smart-grid technologies and practices
to other facets of electricity supply, demand, transmission,
distribution, and policy. The Smart Grid Task Force shall
collaborate with the Smart Grid Advisory Committee and other
Federal agencies and offices. The Smart Grid Task Force shall
meet at the call of its Director as necessary to accomplish its
mission.
(c) Authorization.--There are authorized to be appropriated for the
purposes of this section such sums as are necessary to the Secretary to
support the operations of the Smart Grid Advisory Committee and Smart
Grid Task Force for each of fiscal years 2008 through 2020.
SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.
(a) Power Grid Digital Information Technology.--The Secretary, in
consultation with the Federal Energy Regulatory Commission and other
appropriate agencies, electric utilities, the States, and other
stakeholders, shall carry out a program--
(1) to develop advanced techniques for measuring peak load
reductions and energy-efficiency savings from smart metering,
demand response, distributed generation, and electricity
storage systems;
(2) to investigate means for demand response, distributed
generation, and storage to provide ancillary services;
(3) to conduct research to advance the use of wide-area
measurement and control networks, including data mining,
visualization, advanced computing, and secure and dependable
communications in a highly-distributed environment;
(4) to test new reliability technologies, including those
concerning communications network capabilities, in a grid
control room environment against a representative set of local
outage and wide area blackout scenarios;
(5) to identify communications network capacity needed to
implement advanced technologies.
(6) to investigate the feasibility of a transition to time-
of-use and real-time electricity pricing;
(7) to develop algorithms for use in electric transmission
system software applications;
(8) to promote the use of underutilized electricity
generation capacity in any substitution of electricity for
liquid fuels in the transportation system of the United States;
and
(9) in consultation with the Federal Energy Regulatory
Commission, to propose interconnection protocols to enable
electric utilities to access electricity stored in vehicles to
help meet peak demand loads.
(b) Smart Grid Regional Demonstration Initiative.--
(1) In general.--The Secretary shall establish a smart grid
regional demonstration initiative (referred to in this
subsection as the ``Initiative'') composed of demonstration
projects specifically focused on advanced technologies for use
in power grid sensing, communications, analysis, and power flow
control. The Secretary shall seek to leverage existing smart
grid deployments.
(2) Goals.--The goals of the Initiative shall be--
(A) to demonstrate the potential benefits of
concentrated investments in advanced grid technologies
on a regional grid;
(B) to facilitate the commercial transition from
the current power transmission and distribution system
technologies to advanced technologies;
(C) to facilitate the integration of advanced
technologies in existing electric networks to improve
system performance, power flow control, and
reliability;
(D) to demonstrate protocols and standards that
allow for the measurement and validation of the energy
savings and fossil fuel emission reductions associated
with the installation and use of energy efficiency and
demand response technologies and practices; and
(E) to investigate differences in each region and
regulatory environment regarding best practices in
implementing smart grid technologies.
(3) Demonstration projects.--
(A) In general.--In carrying out the initiative,
the Secretary shall carry out smart grid demonstration
projects in up to 5 electricity control areas,
including rural areas and at least 1 area in which the
majority of generation and transmission assets are
controlled by a tax-exempt entity.
(B) Cooperation.--A demonstration project under
subparagraph (A) shall be carried out in cooperation
with the electric utility that owns the grid facilities
in the electricity control area in which the
demonstration project is carried out.
(C) Federal share of cost of technology
investments.--The Secretary shall provide to an
electric utility described in subparagraph (B)
financial assistance for use in paying an amount equal
to not more than 50 percent of the cost of qualifying
advanced grid technology investments made by the
electric utility to carry out a demonstration project.
(D) Ineligibility for grants.--No person or entity
participating in any demonstration project conducted
under this subsection shall be eligible for grants
under section 1306 for otherwise qualifying investments
made as part of that demonstration project.
(c) Authorization of Appropriations.--There are authorized to be
appropriated--
(1) to carry out subsection (a), such sums as are necessary
for each of fiscal years 2008 through 2012; and
(2) to carry out subsection (b), $100,000,000 for each of
fiscal years 2008 through 2012.
SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK.
(a) Interoperability Framework.--The Director of the National
Institute of Standards and Technology shall have primary responsibility
to coordinate the development of a framework that includes protocols
and model standards for information management to achieve
interoperability of smart grid devices and systems. Such protocols and
standards shall further align policy, business, and technology
approaches in a manner that would enable all electric resources,
including demand-side resources, to contribute to an efficient,
reliable electricity network. In developing such protocols and
standards--
(1) the Director shall seek input and cooperation from the
Commission, OEDER and its Smart Grid Task Force, the Smart Grid
Advisory Committee, other relevant Federal and State agencies;
and
(2) the Director shall also solicit input and cooperation
from private entities interested in such protocols and
standards, including but not limited to the Gridwise
Architecture Council, the International Electrical and
Electronics Engineers, the National Electric Reliability
Organization recognized by the Federal Energy Regulatory
Commission, and National Electrical Manufacturer's Association.
(b) Scope of Framework.--The framework developed under subsection
(a) shall be flexible, uniform and technology neutral, including but
not limited to technologies for managing smart grid information, and
designed--
(1) to accommodate traditional, centralized generation and
transmission resources and consumer distributed resources,
including distributed generation, renewable generation, energy
storage, energy efficiency, and demand response and enabling
devices and systems;
(2) to be flexible to incorporate--
(A) regional and organizational differences; and
(B) technological innovations;
(3) to consider the use of voluntary uniform standards for
certain classes of mass-produced electric appliances and
equipment for homes and businesses that enable customers, at
their election and consistent with applicable State and Federal
laws, and are manufactured with the ability to respond to
electric grid emergencies and demand response signals by
curtailing all, or a portion of, the electrical power consumed
by the appliances or equipment in response to an emergency or
demand response signal, including through--
(A) load reduction to reduce total electrical
demand;
(B) adjustment of load to provide grid ancillary
services; and
(C) in the event of a reliability crisis that
threatens an outage, short-term load shedding to help
preserve the stability of the grid; and
(4) such voluntary standards should incorporate appropriate
manufacturer lead time.
(c) Timing of Framework Development.--The Institute shall begin
work pursuant to this section within 60 days of enactment. The
Institute shall provide and publish an initial report on progress
toward recommended or consensus standards and protocols within one year
after enactment, further reports at such times as developments warrant
in the judgment of the Institute, and a final report when the Institute
determines that the work is completed or that a Federal role is no
longer necessary.
(d) Standards for Interoperability in Federal Jurisdiction.--At any
time after the Institute's work has led to sufficient consensus in the
Commission's judgment, the Commission shall institute a rulemaking
proceeding to adopt such standards and protocols as may be necessary to
insure smart-grid functionality and interoperability in interstate
transmission of electric power, and regional and wholesale electricity
markets.
(e) Authorization.--There are authorized to be appropriated for the
purposes of this section $5,000,000 to the Institute to support the
activities required by this subsection for each of fiscal years 2008
through 2012.
SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT COSTS.
(a) Matching Fund.--The Secretary shall establish a Smart Grid
Investment Matching Grant Program to provide reimbursement of one-fifth
(20 percent) of qualifying Smart Grid investments.
(b) Qualifying Investments.--Qualifying Smart Grid investments may
include any of the following made on or after the date of enactment of
this Act:
(1) In the case of appliances covered for purposes of
establishing energy conservation standards under part B of
title III of the Energy Policy and Conservation Act of 1975 (42
U.S.C. 6291 et seq.), the documented expenditures incurred by a
manufacturer of such appliances associated with purchasing or
designing, creating the ability to manufacture, and
manufacturing and installing for one calendar year, internal
devices that allow the appliance to engage in Smart Grid
functions.
(2) In the case of specialized electricity-using equipment,
including motors and drivers, installed in industrial or
commercial applications, the documented expenditures incurred
by its owner or its manufacturer of installing devices or
modifying that equipment to engage in Smart Grid functions.
(3) In the case of transmission and distribution equipment
fitted with monitoring and communications devices to enable
smart grid functions, the documented expenditures incurred by
the electric utility to purchase and install such monitoring
and communications devices.
(4) In the case of metering devices, sensors, control
devices, and other devices integrated with and attached to an
electric utility system or retail distributor or marketer of
electricity that are capable of engaging in Smart Grid
functions, the documented expenditures incurred by the electric
utility, distributor, or marketer and its customers to purchase
and install such devices.
(5) In the case of software that enables devices or
computers to engage in Smart Grid functions, the documented
purchase costs of the software.
(6) In the case of entities that operate or coordinate
operations of regional electric grids, the documented
expenditures for purchasing and installing such equipment that
allows Smart Grid functions to operate and be combined or
coordinated among multiple electric utilities and between that
region and other regions.
(7) In the case of persons or entities other than electric
utilities owning and operating a distributed electricity
generator, the documented expenditures of enabling that
generator to be monitored, controlled, or otherwise integrated
into grid operations and electricity flows on the grid
utilizing Smart Grid functions.
(8) In the case of electric or hybrid-electric vehicles,
the documented expenses for devices that allow the vehicle to
engage in Smart Grid functions (but not the costs of
electricity storage for the vehicle).
(9) The documented expenditures related to purchasing and
implementing Smart Grid functions in such other cases as the
Secretary shall identify. In making such grants, the Secretary
shall seek to reward innovation and early adaptation, even if
success is not complete, rather than deployment of proven and
commercially viable technologies.
(c) Investments Not Included.--Qualifying Smart Grid investments do
not include any of the following:
(1) Investments or expenditures for Smart Grid
technologies, devices, or equipment that are eligible for
specific tax credits or deductions under the Internal Revenue
Code, as amended.
(2) Expenditures for electricity generation, transmission,
or distribution infrastructure or equipment not directly
related to enabling Smart Grid functions.
(3) After the final date for State consideration of the
Smart Grid Information Standard under section 1307 (paragraph
(17) of section 111(d) of the Public Utility Regulatory
Policies Act of 1978), an investment that is not in compliance
with such standard.
(4) After the development and publication by the Institute
of protocols and model standards for interoperability of smart
grid devices and technologies, an investment that fails to
incorporate any of such protocols or model standards.
(5) Expenditures for physical interconnection of generators
or other devices to the grid except those that are directly
related to enabling Smart Grid functions.
(6) Expenditures for ongoing salaries, benefits, or
personnel costs not incurred in the initial installation,
training, or start up of smart grid functions.
(7) Expenditures for travel, lodging, meals or other
personal costs.
(8) Ongoing or routine operation, billing, customer
relations, security, and maintenance expenditures.
(9) Such other expenditures that the Secretary determines
not to be Qualifying Smart Grid Investments by reason of the
lack of the ability to perform Smart Grid functions or lack of
direct relationship to Smart Grid functions.
(d) Smart Grid Functions.--The term ``smart grid functions'' means
any of the following:
(1) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time of
use, nature of use, storage, or other information relevant to
device, grid, or utility operations, to or from or by means of
the electric utility system, through one or a combination of
devices and technologies.
(2) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time of
use, nature of use, storage, or other information relevant to
device, grid, or utility operations to or from a computer or
other control device.
(3) The ability to measure or monitor electricity use as a
function of time of day, power quality characteristics such as
voltage level, current, cycles per second, or source or type of
generation and to store, synthesize or report that information
by digital means.
(4) The ability to sense and localize disruptions or
changes in power flows on the grid and communicate such
information instantaneously and automatically for purposes of
enabling automatic protective responses to sustain reliability
and security of grid operations.
(5) The ability to detect, prevent, communicate with regard
to, respond to, or recover from system security threats,
including cyber-security threats and terrorism, using digital
information, media, and devices.
(6) The ability of any appliance or machine to respond to
such signals, measurements, or communications automatically or
in a manner programmed by its owner or operator without
independent human intervention.
(7) The ability to use digital information to operate
functionalities on the electric utility grid that were
previously electro-mechanical or manual.
(8) The ability to use digital controls to manage and
modify electricity demand, enable congestion management, assist
in voltage control, provide operating reserves, and provide
frequency regulation.
(9) Such other functions as the Secretary may identify as
being necessary or useful to the operation of a Smart Grid.
(e) The Secretary shall--
(1) establish and publish in the Federal Register, within
one year after the enactment of this Act procedures by which
applicants who have made qualifying Smart Grid investments can
seek and obtain reimbursement of one-fifth of their documented
expenditures;
(2) establish procedures to ensure that there is no
duplication or multiple reimbursement for the same investment
or costs, that the reimbursement goes to the party making the
actual expenditures for Qualifying Smart Grid Investments, and
that the grants made have significant effect in encouraging and
facilitating the development of a smart grid;
(3) maintain public records of reimbursements made,
recipients, and qualifying Smart Grid investments which have
received reimbursements;
(4) establish procedures to provide, in cases deemed by the
Secretary to be warranted, advance payment of moneys up to the
full amount of the projected eventual reimbursement, to
creditworthy applicants whose ability to make Qualifying Smart
Grid Investments may be hindered by lack of initial capital, in
lieu of any later reimbursement for which that applicant
qualifies, and subject to full return of the advance payment in
the event that the Qualifying Smart Grid investment is not
made; and
(5) have and exercise the discretion to deny grants for
investments that do not qualify in the reasonable judgment of
the Secretary.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary for the
administration of this section and the grants to be made pursuant to
this section for fiscal years 2008 through 2012.
SEC. 1307. STATE CONSIDERATION OF SMART GRID.
(a) Section 111(d) of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:
``(16) Consideration of smart grid investments.--
``(A) In general.--Each State shall consider
requiring that, prior to undertaking investments in
nonadvanced grid technologies, an electric utility of
the State demonstrate to the State that the electric
utility considered an investment in a qualified smart
grid system based on appropriate factors, including--
``(i) total costs;
``(ii) cost-effectiveness;
``(iii) improved reliability;
``(iv) security;
``(v) system performance; and
``(vi) societal benefit.
``(B) Rate recovery.--Each State shall consider
authorizing each electric utility of the State to
recover from ratepayers any capital, operating
expenditure, or other costs of the electric utility
relating to the deployment of a qualified smart grid
system, including a reasonable rate of return on the
capital expenditures of the electric utility for the
deployment of the qualified smart grid system.
``(C) Obsolete equipment.--Each State shall
consider authorizing any electric utility or other
party of the State to deploy a qualified smart grid
system to recover in a timely manner the remaining
book-value costs of any equipment rendered obsolete by
the deployment of the qualified smart grid system,
based on the remaining depreciable life of the obsolete
equipment.
``(17) Smart grid information.--
``(A) Standard.--All electricity purchasers shall
be provided direct access, in written or electronic
machine-readable form as appropriate, to information
from their electricity provider as provided in
subparagraph (B).
``(B) Information.--Information provided under this
section, to the extent practicable, shall include:
``(i) Prices.--Purchasers and other
interested persons shall be provided with
information on--
``(I) time-based electricity prices
in the wholesale electricity market;
and
``(II) time-based electricity
retail prices or rates that are
available to the purchasers.
``(ii) Usage.--Purchasers shall be provided
with the number of electricity units, expressed
in kwh, purchased by them.
``(iii) Intervals and projections.--Updates
of information on prices and usage shall be
offered on not less than a daily basis, shall
include hourly price and use information, where
available, and shall include a day-ahead
projection of such price information to the
extent available.
``(iv) Sources.--Purchasers and other
interested persons shall be provided annually
with written information on the sources of the
power provided by the utility, to the extent it
can be determined, by type of generation,
including greenhouse gas emissions associated
with each type of generation, for intervals
during which such information is available on a
cost-effective basis.
``(C) Access.--Purchasers shall be able to access
their own information at any time through the internet
and on other means of communication elected by that
utility for Smart Grid applications. Other interested
persons shall be able to access information not
specific to any purchaser through the Internet.
Information specific to any purchaser shall be provided
solely to that purchaser.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding the following at the end thereof:
``(6)(A) Not later than 1 year after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated utility shall commence the consideration
referred to in section 111, or set a hearing date for
consideration, with respect to the standards established by
paragraphs (17) through (18) of section 111(d).
``(B) Not later than 2 years after the date of the
enactment of the this paragraph, each State regulatory
authority (with respect to each electric utility for which it
has ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to each
standard established by paragraphs (17) through (18) of section
111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding the following at the end:
``In the case of the standards established by paragraphs (16)
through (19) of section 111(d), the reference contained in this
subsection to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraphs.''.
(3) Prior state actions.--Section 112(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is
amended by inserting ``and paragraphs (17) through (18)''
before ``of section 111(d)''.
SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE DEVELOPMENT
OF COMBINED HEAT AND POWER FACILITIES.
(a) Study.--
(1) In general.--The Secretary, in consultation with the
States and other appropriate entities, shall conduct a study of
the laws (including regulations) affecting the siting of
privately owned electric distribution wires on and across
public rights-of-way.
(2) Requirements.--The study under paragraph (1) shall
include--
(A) an evaluation of--
(i) the purposes of the laws; and
(ii) the effect the laws have on the
development of combined heat and power
facilities;
(B) a determination of whether a change in the laws
would have any operating, reliability, cost, or other
impacts on electric utilities and the customers of the
electric utilities; and
(C) an assessment of--
(i) whether privately owned electric
distribution wires would result in duplicative
facilities; and
(ii) whether duplicative facilities are
necessary or desirable.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report that
describes the results of the study conducted under subsection (a).
SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID SYSTEMS.
(a) DOE Study.--The Secretary shall, within 18 months after the
date of enactment of this Act, submit a report to Congress that
provides a quantitative assessment and determination of the existing
and potential impacts of the deployment of Smart Grid systems on
improving the security of the Nation's electricity infrastructure and
operating capability. The report shall include but not be limited to
specific recommendations on each of the following:
(1) How smart grid systems can help in making the Nation's
electricity system less vulnerable to disruptions due to
intentional acts against the system.
(2) How smart grid systems can help in restoring the
integrity of the Nation's electricity system subsequent to
disruptions.
(3) How smart grid systems can facilitate nationwide,
interoperable emergency communications and control of the
Nation's electricity system during times of localized,
regional, or nationwide emergency.
(4) What risks must be taken into account that smart grid
systems may, if not carefully created and managed, create
vulnerability to security threats of any sort, and how such
risks may be mitigated.
(b) Consultation.--The Secretary shall consult with other Federal
agencies in the development of the report under this section, including
but not limited to the Secretary of Homeland Security, the Federal
Energy Regulatory Commission, and the Electric Reliability Organization
certified by the Commission under section 215(c) of the Federal Power
Act (16 U.S.C. 824o) as added by section 1211 of the Energy Policy Act
of 2005 (Public Law 109-58; 119 Stat. 941).
TITLE XIV--RENEWABLE ELECTRICITY STANDARD
SEC. 1401. RENEWABLE ELECTRICITY STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 is amended by adding at the end the following:
``SEC. 610. RENEWABLE ELECTRICITY STANDARD.
``(a) Definitions.--For purposes of this section:
``(1) Biomass.--
``(A) In general.--The term `biomass' means each of
the following:
``(i) Cellulosic (plant fiber) organic
materials from a plant that is planted for the
purpose of being used to produce energy.
``(ii) Nonhazardous, plant or algal matter
that is derived from any of the following:
``(I) An agricultural crop, crop
byproduct or residue resource.
``(II) Waste such as landscape or
right-of-way trimmings (but not
including municipal solid waste,
recyclable postconsumer waste paper,
painted, treated, or pressurized wood,
wood contaminated with plastic or
metals).
``(iii) Animal waste or animal byproducts.
``(iv) Landfill methane.
``(B) National forest lands and certain other
public lands.--With respect to organic material removed
from National Forest System lands or from public lands
administered by the Secretary of the Interior, the term
`biomass' covers only organic material from (i)
ecological forest restoration; (ii) pre-commercial
thinnings; (iii) brush; (iv) mill residues; and (v)
slash.
``(C) Exclusion of certain federal lands.--
Notwithstanding subparagraph (B), material or matter
that would otherwise qualify as biomass are not
included in the term biomass if they are located on the
following Federal lands:
``(i) Federal land containing old growth
forest or late successional forest unless the
Secretary of the Interior or the Secretary of
Agriculture determines that the removal of
organic material from such land is appropriate
for the applicable forest type and maximizes
the retention of late-successional and large
and old growth trees, late-successional and old
growth forest structure, and late-successional
and old growth forest composition.
``(ii) Federal land on which the removal of
vegetation is prohibited, including components
of the National Wilderness Preservation System.
``(iii) Wilderness Study Areas.
``(iv) Inventoried roadless areas.
``(v) Components of the National Landscape
Conservation System.
``(vi) National Monuments.
``(2) Eligible facility.--The term `eligible facility'
means--
``(A) a facility for the generation of electric
energy from a renewable energy resource that is placed
in service on or after January 1, 2001; or
``(B) a repowering or cofiring increment.
``(3) Existing facility.--The term `existing facility'
means a facility for the generation of electric energy from a
renewable energy resource that is not an eligible facility.
``(4) Incremental hydropower.--The term `incremental
hydropower' means additional generation that is achieved from
increased efficiency or additions of capacity made on or after
January 1, 2001, or the effective date of an existing
applicable State renewable portfolio standard program at a
hydroelectric facility that was placed in service before that
date.
``(5) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian
reservation, pueblo, or rancheria;
``(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which was on
the date of enactment of this paragraph either held by
the United States for the benefit of any Indian tribe
or individual or held by any Indian tribe or individual
subject to restriction by the United States against
alienation;
``(C) any dependent Indian community; or
``(D) any land conveyed to any Alaska Native
corporation under the Alaska Native Claims Settlement
Act.
``(6) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including any Alaskan Native village or regional or
village corporation as defined in or established pursuant to
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
``(7) Renewable energy.--The term `renewable energy' means
electric energy generated by a renewable energy resource.
``(8) Renewable energy resource.--The term `renewable
energy resource' means solar, wind, ocean, tidal, geothermal
energy, biomass, landfill gas, incremental hydropower, or
hydrokinetic energy.
``(9) Repowering or cofiring increment.--The term
`repowering or cofiring increment' means--
``(A) the additional generation from a modification
that is placed in service on or after January 1, 2001,
to expand electricity production at a facility used to
generate electric energy from a renewable energy
resource;
``(B) the additional generation above the average
generation in the 3 years preceding the date of
enactment of this section at a facility used to
generate electric energy from a renewable energy
resource or to cofire biomass that was placed in
service before the date of enactment of this section:
or
``(C) the portion of the electric generation from a
facility placed in service on or after January 1, 2001,
or a modification to a facility placed in service
before the date of enactment of this section made on or
after January 1, 2001, associated with cofiring
biomass.
``(10) Retail electric supplier.--(A) The term `retail
electric supplier' means a person that sells electric energy to
electric consumers (other than consumers in Hawaii) that sold
not less than 1,000,000 megawatt-hours of electric energy to
electric consumers for purposes other than resale during the
preceding calendar year. For purposes of this section, a person
that sells electric energy to electric consumers that, in
combination with the sales of any affiliate organized after the
date of enactment of this section, sells not less that
1,000,000 megawatt hours of electric energy to consumers for
purposes other than resale shall qualify as a retail electric
supplier. For purposes of this paragraph, sales by any person
to a parent company or to other affiliates of such person shall
not be treated as sales to electric consumers.
``(B) Such term does not include the United States, a State
or any political subdivision of a State, or any agency,
authority, or instrumentality of any one or more of the
foregoing, or a rural electric cooperative, except that a
political subdivision of a State, or an agency, authority or
instrumentality of the United States, a State or a political
subdivision of a State, or a rural electric cooperative that
sells electric energy to electric consumers or any other entity
that sells electric energy to electric consumers that would not
otherwise qualify as a retail electric supplier shall be deemed
a retail electric supplier if such entity notifies the
Secretary that it voluntarily agrees to participate in the
Federal renewable electricity standard program.
``(11) Retail electric supplier's base amount.--The term
`retail electric supplier's base amount' means the total amount
of electric energy sold by the retail electric supplier,
expressed in terms of kilowatt hours, to electric customers for
purposes other than resale during the most recent calendar year
for which information is available, excluding--
``(A) electric energy that is not incremental
hydropower generated by a hydroelectric facility; and
``(B) electricity generated through the
incineration of municipal solid waste.
``(b) Compliance.--For each calendar year beginning in calendar
year 2010, each retail electric supplier shall meet the requirements of
subsection (c) by submitting to the Secretary, not later than April 1
of the following calendar year, one or more of the following:
``(1) Federal renewable energy credits issued under
subsection (e).
``(2) Federal energy efficiency credits issued under
subsection (i), except that Federal energy efficiency credits
may not be used to meet more than 27 percent of the
requirements of subsection (c) in any calendar year. Energy
efficiency credits may only be used for compliance in a State
where the Governor has petitioned the Secretary pursuant to
subjection (i)(2).
``(3) Certification of the renewable energy generated and
electricity savings pursuant to the funds associated with State
compliance payments as specified in subsection (e)(3)(G).
``(4) Alternative compliance payments pursuant to
subsection (j).
``(c) Required Annual Percentage.--For calendar years 2010 through
2039, the required annual percentage of the retail electric supplier's
base amount that shall be generated from renewable energy resources, or
otherwise credited towards such percentage requirement pursuant to
subsection (d), shall be the percentage specified in the following
table:
Required annual
``Calendar Years percentage
2010....................................... 2.75
2011....................................... 2.75
2012....................................... 3.75
2013....................................... 4.5
2014....................................... 5.5
2015....................................... 6.5
2016....................................... 7.5
2017....................................... 8.25
2018....................................... 10.25
2019....................................... 12.25
2020 and thereafter through 2039........... 15
``(d) Renewable Energy and Energy Efficiency Credits.--(1) A retail
electric supplier may satisfy the requirements of subsection (b)(1)
through the submission of Federal renewable energy credits--
``(A) issued to the retail electric supplier under
subsection (e);
``(B) obtained by purchase or exchange under subsection (f)
or (g); or
``(C) borrowed under subsection (h).
``(2) A retail electric supplier may satisfy the requirements of
subsection (b)(2) through the submission of Federal energy efficiency
credits issued to the retail electric supplier obtained by purchase or
exchange pursuant to subsection (i).
``(3) A Federal renewable energy credit may be counted toward
compliance with subsection (b)(1) only once. A Federal energy
efficiency credit may be counted toward compliance with subsection
(b)(2) only once.
``(e) Issuance of Federal Renewable Energy Credits.--(1) The
Secretary shall establish by rule, not later than 1 year after the date
of enactment of this section, a program to verify and issue Federal
renewable energy credits to generators of renewable energy, track their
sale, exchange and retirement and to enforce the requirements of this
section. To the extent possible, in establishing such program, the
Secretary shall rely upon existing and emerging State or regional
tracking systems that issue and track non-Federal renewable energy
credits.
``(2) An entity that generates electric energy through the use of a
renewable energy resource may apply to the Secretary for the issuance
of renewable energy credits. The applicant must demonstrate that the
electric energy will be transmitted onto the grid or, in the case of a
generation offset, that the electric energy offset would have otherwise
been consumed on site. The application shall indicate--
``(A) the type of renewable energy resource used to produce
the electricity;
``(B) the location where the electric energy was produced;
and
``(C) any other information the Secretary determines
appropriate.
``(3)(A) Except as provided in subparagraphs (B), (C), and (D), the
Secretary shall issue to a generator of electric energy one Federal
renewable energy credit for each kilowatt hour of electric energy
generated by the use of a renewable energy resource at an eligible
facility.
``(B) For purpose of compliance with this section, Federal
renewable energy credits for incremental hydropower shall be based, on
the increase in average annual generation resulting from the efficiency
improvements or capacity additions. The incremental generation shall be
calculated using the same water flow information used to determine a
historic average annual generation baseline for the hydroelectric
facility and certified by the Secretary or the Federal Energy
Regulatory Commission. The calculation of the Federal renewable energy
credits for incremental hydropower shall not be based on any
operational changes at the hydroelectric facility not directly
associated with the efficiency improvements or capacity additions.
``(C) The Secretary shall issue 2 renewable energy credits for each
kilowatt hour of electric energy generated and supplied to the grid in
that calendar year through the use of a renewable energy resource at an
eligible facility located on Indian land. For purposes of this
paragraph, renewable energy generated by biomass cofired with other
fuels is eligible for two credits only if the biomass was grown on such
land.
``(D) For electric energy generated by a renewable energy resource
at an on-site eligible facility no larger than one megawatt in capacity
and used to offset part or all of the customer's requirements for
electric energy, the Secretary shall issue 3 renewable energy credits
to such customer for each kilowatt hour generated.
``(E) In the case of an on-site eligible facility on Indian land no
more than 3 credits per kilowatt hour may be issued.
``(F) If both a renewable energy resource and a non-renewable
energy resource are used to generate the electric energy, the Secretary
shall issue the Federal renewable energy credits based on the
proportion of the renewable energy resources used.
``(G) When a generator has sold electric energy generated through
the use of a renewable energy resource to a retail electric supplier
under a contract for power from an existing facility, and the contract
has not determined ownership of the Federal renewable energy credits
associated with such generation, the Secretary shall issue such Federal
renewable energy credits to the retail electric supplier for the
duration of the contract.
``(H) Payments made by a retail electricity supplier, directly or
indirectly, to a State for compliance with a State renewable portfolio
standard program, or for an alternative compliance mechanism, shall be
valued at one credit per kilowatt hour for the purpose of subsection
(b)(2) based on the amount of electric energy generation from renewable
resources and electricity savings up to 27 percent of the utility's
requirement that results from those payments.
``(f) Existing Facilities.--The Secretary shall ensure that a
retail electric supplier that acquires Federal renewable energy credits
associated with the generation of renewable energy from an existing
facility may use such credits for purpose of its compliance with
subsection (b)(1). Such credits may not be sold, exchanged, or
transferred for the purpose of compliance by another retail electric
supplier.
``(g) Renewable Energy Credit Trading.--(1) A Federal renewable
energy credit, may be sold, transferred or exchanged by the entity to
whom issued or by any other entity who acquires the Federal renewable
energy credit, except for those renewable energy credits from existing
facilities. A Federal renewable energy credit for any year that is not
submitted to satisfy the minimum renewable generation requirement of
subsection (c) for that year may be carried forward for use pursuant to
subsection (b)(1) within the next 3 years.
``(2) A Federally owned or cooperatively owned utility, or a State
or subdivision thereof, that is not a retail electric supplier that
generates electric energy by the use of a renewable energy resource at
an eligible facility may only sell, transfer or exchange a Federal
renewable energy credit to a cooperatively owned utility or an agency,
authority or instrumentality of a State or political subdivision of a
State that is a retail electric supplier that has acquired the electric
energy associated with the credit.
``(3) The Secretary may delegate to an appropriate market-making
entity the administration of a national tradeable renewable energy
credit market and a nation energy efficiency credit market for purposes
of creating a transparent national market for the sale or trade of
renewable energy credits and a transparent national market for the sale
or trade of Federal energy efficiency credits.
``(h) Renewable Energy Credit Borrowing.--At any time before the
end of calendar year 2012, a retail electric supplier that has reason
to believe it will not be able to fully comply with subsection (b)
may--
``(1) submit a plan to the Secretary demonstrating that the
retail electric supplier will earn sufficient Federal renewable
energy credits and Federal energy efficiency credits within the
next 3 calendar years which, when taken into account, will
enable the retail electric supplier to meet the requirements of
subsection (b) for calendar year 2012 and the subsequent
calendar years involved; and
``(2) upon the approval of the plan by the Secretary, apply
Federal renewable energy credits and Federal energy efficiency
credits that the plan demonstrates will be earned within the
next 3 calendar years to meet the requirements of subsection
(b) for each calendar year involved.
The retail electric supplier must repay all of the borrowed Federal
renewable energy credits and Federal energy efficiency credits by
submitting an equivalent number of Federal renewable energy credits and
Federal energy efficiency credits, in addition to those otherwise
required under subsection (b), by calendar year 2020 or any earlier
deadlines specified in the approved plan. Failure to repay the borrowed
Federal renewable energy credits and Federal energy efficiency credits
shall subject the retail electric supplier to civil penalties under
subsection (i) for violation of the requirements of subsection (b) for
each calendar year involved.
``(i) Energy Efficiency Credits.--
``(1) Definitions.--In this subsection--
``(A) Customer facility savings.--The term
`customer facility savings' means a reduction in end-
use electricity at a facility of an end-use consumer of
electricity served by a retail electric supplier, as
compared to--
``(i) consumption at the facility during a
base year;
``(ii) in the case of new equipment
(regardless of whether the new equipment
replaces existing equipment at the end of the
useful life of the existing equipment),
consumption by the new equipment of average
efficiency; or
``(iii) in the case of a new facility,
consumption at a reference facility.
``(B) Electricity savings.--The term `electricity
savings' means--
``(i) customer facility savings of
electricity consumption adjusted to reflect any
associated increase in fuel consumption at the
facility;
``(ii) reductions in distribution system
losses of electricity achieved by a retail
electricity distributor, as compared to losses
during the base years;
``(iii) the output of new combined heat and
power systems, to the extent provided under
paragraph (5); and
``(iv) recycled energy savings.
``(C) Qualifying electricity savings.--The term
`qualifying electricity savings' means electricity
saving that meet the measurement and verification
requirements of paragraph (4).
``(D) Recycled energy savings.--The term `recycled
energy savings' means a reduction in electricity
consumption that is attributable to electrical or
mechanical power, or both, produced by modifying an
industrial or commercial system that was in operation
before July 1, 2007, in order to recapture energy that
would otherwise be wasted.
``(2) Petition.--The Governor of a State may petition the
Secretary to allow up to 27 percent of the requirements of a
retail electric supplier under subsection (c) in the State to
be met by submitting Federal energy efficiency credits issued
pursuant to this subsection.
``(3) Issuance of credits.--(A) Upon petition by the
Governor, the Secretary shall issue energy efficiency credits
for electricity savings described in subparagraph (B) achieved
in States described in paragraph (2) in accordance with this
subsection.
``(B) In accordance with regulations promulgated by the
Secretary, the Secretary shall issue credits for--
``(i) qualified electricity savings achieved by a
retail electric supplier in a calendar year; and
``(ii) qualified electricity savings achieved by
other entities if--
``(I) the measures used to achieve the
qualifying electricity savings were installed
or place in operation by the entity seeking the
credit or the designated agent of the entity;
and
``(II) no retail electric supplier paid a
substantial portion of the cost of achieving
the qualified electricity savings (unless the
retail electric supplier has waived any
entitlement to the credit).
``(4) Measurement and verification of electricity
savings.--Not later than June 30, 2009, the Secretary shall
promulgate regulations regarding the measurement and
verification of electricity savings under this subsection,
including regulations covering--
``(A) procedures and standards for defining and
measuring electricity savings that will be eligible to
receive credits under paragraph (3), which shall--
``(i) specify the types of energy
efficiency and energy conservation that will be
eligible for the credits;
``(ii) require that energy consumption for
customer facilities or portions of facilities
in the applicable base and current years be
adjusted, as appropriate, to account for
changes in weather, level of production, and
building area;
``(iii) account for the useful life of
electricity savings measures;
``(iv) include specified electricity
savings values for specific, commonly-used
efficiency measures;
``(v) specify the extent to which
electricity savings attributable to measures
carried out before the date of enactment of
this section are eligible to receive credits
under this subsection; and
``(vi) exclude electricity savings that (I)
are not properly attributable to measures
carried out by the entity seeking the credit;
or (II) have already been credited under this
section to another entity;
``(B) procedures and standards for third-party
verification of reported electricity savings; and
``(C) such requirements for information, reports,
and access to facilities as may be necessary to carry
out this subsection.
``(5) Combined heat and power.--Under regulations
promulgated by the Secretary, the increment of electricity
output of a new combined heat and power system that is
attributable to the higher efficiency of the combined system
(as compared to the efficiency of separate production of the
electric and thermal outputs), shall be considered electricity
savings under this subsection.
``(j) Enforcement.--A retail electric supplier that does not comply
with subsection (b) shall be liable for the payment of a civil penalty.
That penalty shall be calculated on the basis of the number of
kilowatt-hours represented by the retail electric supplier's failure to
comply with subsection (b), multiplied by the lesser of 4.5 cents
(adjusted for inflation for such calendar year, based on the Gross
Domestic Product Implicit Price Deflator) or 300 percent of the average
market value of Federal renewable energy credits and energy efficiency
credits for the compliance period. Any such penalty shall be due and
payable without demand to the Secretary as provided in the regulations
issued under subsection (e).
``(k) Alternative Compliance Payments.--The Secretary shall accept
payment equal to the lesser of:
``(1) 200 percent of the average market value of Federal
renewable energy credits and Federal energy efficiency credits
for the applicable compliance period; or
``(2) 2.5 cents per kilowatt hour adjusted on January 1 of
each year following calendar year 2006 based on the Gross
Domestic Product Implicit Price Deflator,
as a means of compliance under subsection (b)(4)
``(l) Information Collection.--The Secretary may collect the
information necessary to verify and audit--
``(1) the annual renewable energy generation of any retail
electric supplier, Federal renewable energy credits submitted
by a retail electric supplier pursuant to subsection (b)(1) and
Federal energy efficiency credits submitted by a retail
electric supplier pursuant to subsection (b)(2);
``(2) annual electricity savings achieved pursuant to
subsection (i);
``(3) the validity of Federal renewable energy credits
submitted for compliance by a retail electric supplier to the
Secretary; and
``(4) the quantity of electricity sales of all retail
electric suppliers.
``(m) Environmental Savings Clause.--Incremental hydropower shall
be subject to all applicable environmental laws and licensing and
regulatory requirements.
``(n) State Programs.--(1) Nothing in this section diminishes any
authority of a State or political subdivision of a State to--
``(A) adopt or enforce any law or
regulation respecting renewable energy or
energy efficiency, including but not limited to
programs that exceed the required amount of
renewable energy or energy efficiency under
this section, or
``(B) regulate the acquisition and
disposition of Federal renewable energy credits
and Federal energy efficiency credits by retail
electric suppliers.
No law or regulation referred to in subparagraph (A) shall
relieve any person of any requirement otherwise applicable
under this section. The Secretary, in consultation with States
having renewable energy programs and energy efficiency
programs, shall preserve the integrity of such State programs,
including programs that exceed the required amount of renewable
energy and energy efficiency under this section, and shall
facilitate coordination between the Federal program and State
programs.
``(2) In the rule establishing the program under this section, the
Secretary shall incorporate common elements of existing renewable
energy and energy efficiency programs, including State programs, to
ensure administrative ease, market transparency and effective
enforcement. The Secretary shall work with the States to minimize
administrative burdens and costs to retail electric suppliers.
``(o) Recovery of Costs.--An electric utility whose sales of
electric energy are subject to rate regulation, including any utility
whose rates are regulated by the Commission and any State regulated
electric utility, shall not be denied the opportunity to recover the
full amount of the prudently incurred incremental cost of renewable
energy and energy efficiency obtained to comply with the requirements
of subsection (b). For purposes of this subsection, the definitions in
section 3 of this Act shall apply to the terms electric utility, State
regulated electric utility, State agency, Commission, and State
regulatory authority.
``(p) Program Review.--The Secretary shall enter into a contract
with the National Academy of Sciences to conduct a comprehensive
evaluation of all aspects of the program established under this
section, within 8 years of enactment of this section. The study shall
include an evaluation of--
``(1) the effectiveness of the program in increasing the
market penetration and lowering the cost of the eligible
renewable energy and energy efficiency technologies;
``(2) the opportunities for any additional technologies and
sources of renewable energy and energy efficiency emerging
since enactment of this section;
``(3) the impact on the regional diversity and reliability
of supply sources, including the power quality benefits of
distributed generation;
``(4) the regional resource development relative to
renewable potential and reasons for any under investment in
renewable resources; and
``(5) the net cost/benefit of the renewable electricity
standard to the national and State economies, including retail
power costs, economic development benefits of investment,
avoided costs related to environmental and congestion
mitigation investments that would otherwise have been required,
impact on natural gas demand and price, effectiveness of green
marketing programs at reducing the cost of renewable resources.
The Secretary shall transmit the results of the evaluation and any
recommendations for modifications and improvements to the program to
Congress not later than January 1, 2016.
``(q) State Renewable Energy and Energy Efficiency Account
Program.--(1) There is established in the Treasury a State renewable
energy and energy efficiency account program.
``(2) All money collected by the Secretary from the alternative
compliance payments under subsection (k) shall be deposited into the
State renewable energy and energy efficiency account established
pursuant to this subsection.
``(3) Proceeds deposited in the State renewable energy and energy
efficiency account shall be used by the Secretary, subject to annual
appropriations, for a program to provide grants to the State agency
responsible for administering a fund to promote renewable energy
generation and energy efficiency for customers of the State, or an
alternative agency designated by the State, or if no such agency
exists, to the State agency developing State energy conservation plans
under section 363 of the Energy Policy and Conservation Act (42 U.S.C.
6322) for the purposes of promoting renewable energy production and
providing energy assistance and weatherization services to low-income
consumers.
``(4) The Secretary may issue guidelines and criteria for grants
awarded under this subsection. At least 75 percent of the funds
provided to each State shall be used for promoting renewable energy
production and energy efficiency through grants, production incentives
or other state-approved funding mechanisms. The funds shall be
allocated to the States on the basis of retail electric sales subject
to the Renewable electricity Standard under this section or through
voluntary participation. State agencies receiving grants under this
section shall maintain such records and evidence of compliance as the
Secretary may require.''.
(b) Table of Contents.--The table of contents for such title is
amended by adding the following new item at the end:
``Sec. 610. Federal renewable electricity standard''.
(c) Sunset.--Section 610 of such title and the item relating to
such section 610 in the table of contents for such title are each
repealed as of December 31, 2039.
TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007
SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This title may be cited as the ``Clean Renewable
Energy and Conservation Tax Act of 2007''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
Subtitle A--Clean Renewable Energy Production Incentives
PART I--PROVISIONS RELATING TO RENEWABLE ENERGY
SEC. 1501. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY CREDIT.
(a) Extension of Credit.--Each of the following provisions of
section 45(d) (relating to qualified facilities) is amended by striking
``January 1, 2009'' and inserting ``January 1, 2013'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is
amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph
(1),'' in paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph (2)
the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified
facility originally placed in service after December
31, 2008, the amount of the credit determined under
subsection (a) for any taxable year with respect to
electricity produced at such facility shall not exceed
the product of--
``(i) the applicable percentage with
respect to such facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess
credit.--
``(i) Unused limitation.--If the limitation
imposed under subparagraph (A) with respect to
any facility for any taxable year exceeds the
prelimitation credit for such facility for such
taxable year, the limitation imposed under
subparagraph (A) with respect to such facility
for the succeeding taxable year shall be
increased by the amount of such excess.
``(ii) Excess credit.--If the prelimitation
credit with respect to any facility for any
taxable year exceeds the limitation imposed
under subparagraph (A) with respect to such
facility for such taxable year, the credit
determined under subsection (a) with respect to
such facility for the succeeding taxable year
(determined before the application of
subparagraph (A) for such succeeding taxable
year) shall be increased by the amount of such
excess. With respect to any facility, no amount
may carried forward under this clause to any
taxable year beginning after the 10-year period
described in subsection (a)(2)(A)(ii) with
respect to such facility.
``(iii) Prelimitation credit.--The term
`prelimitation credit' with respect to any
facility for a taxable year means the credit
determined under subsection (a) with respect to
such facility for such taxable year, determined
without regard to subparagraph (A) and after
taking into account any increase for such
taxable year under clause (ii).
``(C) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable
percentage' means, with respect to any
facility, the appropriate percentage prescribed
by the Secretary for the month in which such
facility is originally placed in service.
``(ii) Method of prescribing applicable
percentages.--The applicable percentages
prescribed by the Secretary for any month under
clause (i) shall be percentages which yield
over a 10-year period amounts of limitation
under subparagraph (A) which have a present
value equal to 35 percent of the eligible basis
of the facility.
``(iii) Method of discounting.--The present
value under clause (ii) shall be determined--
``(I) as of the last day of the 1st
year of the 10-year period referred to
in clause (ii),
``(II) by using a discount rate
equal to the greater of 110 percent of
the Federal long-term rate as in effect
under section 1274(d) for the month
preceding the month for which the
applicable percentage is being
prescribed, or 4.5 percent, and
``(III) by taking into account the
limitation under subparagraph (A) for
any year on the last day of such year.
``(D) Eligible basis.--For purposes of this
paragraph--
``(i) In general.--The term `eligible
basis' means, with respect to any facility, the
sum of--
``(I) the basis of such facility
determined as of the time that such
facility is originally placed in
service, and
``(II) the portion of the basis of
any shared qualified property which is
properly allocable to such facility
under clause (ii).
``(ii) Rules for allocation.--For purposes
of subclause (II) of clause (i), the basis of
shared qualified property shall be allocated
among all qualified facilities which are
projected to be placed in service and which
require utilization of such property in
proportion to projected generation from such
facilities.
``(iii) Shared qualified property.--For
purposes of this paragraph, the term `shared
qualified property' means, with respect to any
facility, any property described in section
168(e)(3)(B)(vi)--
``(I) which a qualified facility
will require for utilization of such
facility, and
``(II) which is not a qualified
facility.
``(iv) Special rule relating to geothermal
facilities.--In the case of any qualified
facility using geothermal energy to produce
electricity, the basis of such facility for
purposes of this paragraph shall be determined
as though intangible drilling and development
costs described in section 263(c) were
capitalized rather than expensed.
``(E) Special rule for first and last year of
credit period.--In the case of any taxable year any
portion of which is not within the 10-year period
described in subsection (a)(2)(A)(ii) with respect to
any facility, the amount of the limitation under
subparagraph (A) with respect to such facility shall be
reduced by an amount which bears the same ratio to the
amount of such limitation (determined without regard to
this subparagraph) as such portion of the taxable year
which is not within such period bears to the entire
taxable year.
``(F) Election to treat all facilities placed in
service in a year as 1 facility.--At the election of
the taxpayer, all qualified facilities which are part
of the same project and which are placed in service
during the same calendar year shall be treated for
purposes of this section as 1 facility which is placed
in service at the mid-point of such year or the first
day of the following calendar year.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property
originally placed in service after December 31, 2008.
(2) Repeal of credit phaseout.--The amendments made by
subsection (b)(1) shall apply to taxable years ending after
December 31, 2008.
SEC. 1502. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE
RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) (relating to
resources) is amended by striking ``and'' at the end of subparagraph
(G), by striking the period at the end of subparagraph (H) and
inserting ``, and'', and by adding at the end the following new
subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is amended by
adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and
hydrokinetic renewable energy' means energy derived
from--
``(i) waves, tides, and currents in oceans,
estuaries, and tidal areas,
``(ii) free flowing water in rivers, lakes,
and streams,
``(iii) free flowing water in an irrigation
system, canal, or other man-made channel,
including projects that utilize nonmechanical
structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature
(ocean thermal energy conversion).
``(B) Exceptions.--Such term shall not include any
energy which is derived from any source which utilizes
a dam, diversionary structure (except as provided in
subparagraph (A)(iii)), or impoundment for electric
power production purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45 is
amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the taxpayer--
``(A) which has a nameplate capacity rating of at
least 150 kilowatts, and
``(B) which is originally placed in service on or
after the date of the enactment of this paragraph and
before January 1, 2013.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is amended
by striking ``or (9)'' and inserting ``(9), or (11)''.
(e) Coordination With Small Irrigation Power.--Paragraph (5) of
section 45(d), as amended by this Act, is amended by striking ``January
1, 2013'' and inserting ``the date of the enactment of paragraph
(11)''.
(f) Effective Date.--The amendments made by this section shall
apply to electricity produced and sold after the date of the enactment
of this Act, in taxable years ending after such date.
SEC. 1503. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are
each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is amended
by striking ``December 31, 2008'' and inserting ``December 31,
2016''.
(3) Microturbine property.--Subparagraph (E) of section
48(c)(2) (relating to qualified microturbine property) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2016''.
(b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified credits) is
amended by striking ``and'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, and'', and by adding
at the end the following new clause:
``(v) the credit determined under section
46 to the extent that such credit is
attributable to the energy credit determined
under section 48.''.
(c) Energy Credit for Combined Heat and Power System Property.--
(1) In general.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(iii), by inserting ``or'' at the end of clause (iv), and by
adding at the end the following new clause:
``(v) combined heat and power system
property,''.
(2) Combined heat and power system property.--Section 48
(relating to energy credit; reforestation credit) is amended by
adding at the end the following new subsection:
``(d) Combined Heat and Power System Property.--For purposes of
subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical
power, mechanical shaft power, or both, in combination
with the generation of steam or other forms of useful
thermal energy (including heating and cooling
applications),
``(B) which produces--
``(i) at least 20 percent of its total
useful energy in the form of thermal energy
which is not used to produce electrical or
mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total
useful energy in the form of electrical or
mechanical power (or combination thereof),
``(C) the energy efficiency percentage of which
exceeds 60 percent, and
``(D) which is placed in service before January 1,
2017.
``(2) Limitation.--
``(A) In general.--In the case of combined heat and
power system property with an electrical capacity in
excess of the applicable capacity placed in service
during the taxable year, the credit under subsection
(a)(1) (determined without regard to this paragraph)
for such year shall be equal to the amount which bears
the same ratio to such credit as the applicable
capacity bears to the capacity of such property.
``(B) Applicable capacity.--For purposes of
subparagraph (A), the term `applicable capacity' means
15 megawatts or a mechanical energy capacity of more
than 20,000 horsepower or an equivalent combination of
electrical and mechanical energy capacities.
``(C) Maximum capacity.--The term `combined heat
and power system property' shall not include any
property comprising a system if such system has a
capacity in excess of 50 megawatts or a mechanical
energy capacity in excess of 67,000 horsepower or an
equivalent combination of electrical and mechanical
energy capacities.
``(3) Special rules.--
``(A) Energy efficiency percentage.--For purposes
of this subsection, the energy efficiency percentage of
a system is the fraction--
``(i) the numerator of which is the total
useful electrical, thermal, and mechanical
power produced by the system at normal
operating rates, and expected to be consumed in
its normal application, and
``(ii) the denominator of which is the
lower heating value of the fuel sources for the
system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under
paragraph (1)(B) shall be determined on a Btu basis.
``(C) Input and output property not included.--The
term `combined heat and power system property' does not
include property used to transport the energy source to
the facility or to distribute energy produced by the
facility.
``(4) Systems using biomass.--If a system is designed to
use biomass (within the meaning of paragraphs (2) and (3) of
section 45(c) without regard to the last sentence of paragraph
(3)(A)) for at least 90 percent of the energy source--
``(A) paragraph (1)(C) shall not apply, but
``(B) the amount of credit determined under
subsection (a) with respect to such system shall not
exceed the amount which bears the same ratio to such
amount of credit (determined without regard to this
paragraph) as the energy efficiency percentage of such
system bears to 60 percent.''.
(d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking ``$500''
and inserting ``$1,500''.
(e) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by
striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by
striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(f) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of section
48(c) are each amended by striking ``paragraph (1)'' and inserting
``subsection (a)''.
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the enactment
of this Act and to carrybacks of such credits.
(3) Combined heat and power and fuel cell property.--The
amendments made by subsections (c) and (d) shall apply to
periods after the date of the enactment of this Act, in taxable
years ending after such date, under rules similar to the rules
of section 48(m) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
(4) Public electric utility property.--The amendments made
by subsection (e) shall apply to periods after June 20, 2007,
in taxable years ending after such date, under rules similar to
the rules of section 48(m) of the Internal Revenue Code of 1986
(as in effect on the day before the date of the enactment of
the Revenue Reconciliation Act of 1990).
SEC. 1504. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY
EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) (relating to termination) is amended
by striking ``December 31, 2008'' and inserting ``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) (relating to maximum
credit) is amended by striking ``$2,000'' and inserting
``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting ``$13,334''.
(c) Credit for Residential Wind Property.--
(1) In general.--Section 25D(a) (relating to allowance of
credit) is amended by striking ``and'' at the end of paragraph
(2), by striking the period at the end of paragraph (3) and
inserting ``, and'', and by adding at the end the following new
paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such year.''.
(2) Limitation.--Section 25D(b)(1) (relating to maximum
credit) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(D) $500 with respect to each half kilowatt of
capacity (not to exceed $4,000) of wind turbines for
which qualified small wind energy property expenditures
are made.''.
(3) Qualified small wind energy property expenditures.--
(A) In general.--Section 25D(d) (relating to
definitions) is amended by adding at the end the
following new paragraph:
``(4) Qualified small wind energy property expenditure.--
The term `qualified small wind energy property expenditure'
means an expenditure for property which uses a wind turbine to
generate electricity for use in connection with a dwelling unit
located in the United States and used as a residence by the
taxpayer.''.
(B) No double benefit.--Section 45(d)(1) (relating
to wind facility) is amended by adding at the end the
following new sentence: ``Such term shall not include
any facility with respect to which any qualified small
wind energy property expenditure (as defined in
subsection (d)(4) of section 25D) is taken into account
in determining the credit under such section.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) (relating to maximum expenditures) is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end the following new clause:
``(iv) $1,667 in the case of each half
kilowatt of capacity of wind turbines for which
qualified small wind energy property
expenditures are made.''.
(d) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of Unused
Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year shall
not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section) and section 27 for
the taxable year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits
allowed against regular and alternative minimum tax.--
In the case of a taxable year to which section 26(a)(2)
applies, if the credit allowable under subsection (a)
exceeds the limitation imposed by section 26(a)(2) for
such taxable year reduced by the sum of the credits
allowable under this subpart (other than this section),
such excess shall be carried to the succeeding taxable
year and added to the credit allowable under subsection
(a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a
taxable year to which section 26(a)(2) does not apply,
if the credit allowable under subsection (a) exceeds
the limitation imposed by paragraph (1) for such
taxable year, such excess shall be carried to the
succeeding taxable year and added to the credit
allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting
``and section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking
``and 25B'' and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking
``section 23'' and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and
25B'' and inserting ``25B, and 25D''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
expenditures after December 31, 2007.
(2) Allowance against alternative minimum tax.--
(A) In general.--The amendments made by subsection
(d) shall apply to taxable years beginning after the
date of the enactment of this Act.
(B) Application of egtrra sunset.--The amendments
made by subparagraphs (A) and (B) of subsection (d)(2)
shall be subject to title IX of the Economic Growth and
Tax Relief Reconciliation Act of 2001 in the same
manner as the provisions of such Act to which such
amendments relate.
SEC. 1505. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT FERC
AND STATE ELECTRIC RESTRUCTURING POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) (relating
to special rule for sales or dispositions to implement Federal
Energy Regulatory Commission or State electric restructuring
policy) is amended by inserting ``(before January 1, 2010, in
the case of a qualified electric utility)'' after ``January 1,
2008''.
(2) Qualified electric utility.--Subsection (i) of section
451 is amended by redesignating paragraphs (6) through (10) as
paragraphs (7) through (11), respectively, and by inserting
after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this
subsection, the term `qualified electric utility' means a
person that, as of the date of the qualifying electric
transmission transaction, is vertically integrated, in that it
is both--
``(A) a transmitting utility (as defined in section
3(23) of the Federal Power Act (16 U.S.C. 796(23)) with
respect to the transmission facilities to which the
election under this subsection applies, and
``(B) an electric utility (as defined in section
3(22) of the Federal Power Act (16 U.S.C. 796(22)).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is amended by
striking ``December 31, 2007'' and inserting ``the date which is 4
years after the close of the taxable year in which the transaction
occurs''.
(c) Property Located Outside the United States Not Treated as
Exempt Utility Property.--Paragraph (5) of section 451(i) is amended by
adding at the end the following new subparagraph:
``(C) Exception for property located outside the
united states.--The term `exempt utility property'
shall not include any property which is located outside
the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made
by subsection (b) shall take effect as if included in section
909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall apply to
transactions after the date of the enactment of this Act.
SEC. 1506. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Part IV of subchapter A of chapter 1 (relating to
credits against tax) is amended by adding at the end the following new
subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified tax
credit bond on one or more credit allowance dates of the bond during
any taxable year, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the sum
of the credits determined under subsection (b) with respect to such
dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified tax credit bond is 25 percent of the annual
credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tax credit bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate is 70 percent of the rate which
the Secretary estimates will permit the issuance of qualified
tax credit bonds with a specified maturity or redemption date
without discount and without interest cost to the qualified
issuer. The applicable credit rate with respect to any
qualified tax credit bond shall be determined as of the first
day on which there is a binding, written contract for the sale
or exchange of the bond.
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
part (other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this section--
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a new clean renewable energy bond which is
part of an issue that meets the requirements of paragraphs (2),
(3), (4), (5), and (6).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated as
meeting the requirements of this paragraph if, as of
the date of issuance, the issuer reasonably expects--
``(i) 100 percent or more of the available
project proceeds to be spent for 1 or more
qualified purposes within the 3-year period
beginning on such date of issuance, and
``(ii) a binding commitment with a third
party to spend at least 10 percent of such
available project proceeds will be incurred
within the 6-month period beginning on such
date of issuance.
``(B) Failure to spend required amount of bond
proceeds within 3 years.--
``(i) In general.--To the extent that less
than 100 percent of the available project
proceeds of the issue are expended by the close
of the expenditure period for 1 or more
qualified purposes, the issuer shall redeem all
of the nonqualified bonds within 90 days after
the end of such period. For purposes of this
paragraph, the amount of the nonqualified bonds
required to be redeemed shall be determined in
the same manner as under section 142.
``(ii) Expenditure period.--For purposes of
this subpart, the term `expenditure period'
means, with respect to any issue, the 3-year
period beginning on the date of issuance. Such
term shall include any extension of such period
under clause (iii).
``(iii) Extension of period.--Upon
submission of a request prior to the expiration
of the expenditure period (determined without
regard to any extension under this clause), the
Secretary may extend such period if the issuer
establishes that the failure to expend the
proceeds within the original expenditure period
is due to reasonable cause and the expenditures
for qualified purposes will continue to proceed
with due diligence.
``(C) Qualified purpose.--For purposes of this
paragraph, the term `qualified purpose' means a purpose
specified in section 54B(a)(1).
``(D) Reimbursement.--For purposes of this
subtitle, available project proceeds of an issue shall
be treated as spent for a qualified purpose if such
proceeds are used to reimburse the issuer for amounts
paid for a qualified purpose after the date that the
Secretary makes an allocation of bond limitation with
respect to such issue, but only if--
``(i) prior to the payment of the original
expenditure, the issuer declared its intent to
reimburse such expenditure with the proceeds of
a qualified tax credit bond,
``(ii) not later than 60 days after payment
of the original expenditure, the issuer adopts
an official intent to reimburse the original
expenditure with such proceeds, and
``(iii) the reimbursement is made not later
than 18 months after the date the original
expenditure is paid.
``(3) Reporting.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer of qualified tax
credit bonds submits reports similar to the reports required
under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated as
meeting the requirements of this paragraph if the
issuer satisfies the requirements of section 148 with
respect to the proceeds of the issue.
``(B) Special rule for investments during
expenditure period.--An issue shall not be treated as
failing to meet the requirements of subparagraph (A) by
reason of any investment of available project proceeds
during the expenditure period.
``(C) Special rule for reserve funds.--An issue
shall not be treated as failing to meet the
requirements of subparagraph (A) by reason of any fund
which is expected to be used to repay such issue if--
``(i) such fund is funded at a rate not
more rapid than equal annual installments,
``(ii) such fund is funded in a manner
reasonably expected to result in an amount not
greater than an amount necessary to repay the
issue, and
``(iii) the yield on such fund is not
greater than the discount rate determined under
paragraph (5)(B) with respect to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall be treated as
meeting the requirements of this paragraph if the
maturity of any bond which is part of such issue does
not exceed the maximum term determined by the Secretary
under subparagraph (B).
``(B) Maximum term.--During each calendar month,
the Secretary shall determine the maximum term
permitted under this paragraph for bonds issued during
the following calendar month. Such maximum term shall
be the term which the Secretary estimates will result
in the present value of the obligation to repay the
principal on the bond being equal to 50 percent of the
face amount of such bond. Such present value shall be
determined using as a discount rate the average annual
interest rate of tax-exempt obligations having a term
of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a
whole year, such term shall be rounded to the next
highest whole year.
``(6) Prohibition on financial conflicts of interest.--An
issue shall be treated as meeting the requirements of this
paragraph if the issuer certifies that--
``(A) applicable State and local law requirements
governing conflicts of interest are satisfied with
respect to such issue, and
``(B) if the Secretary prescribes additional
conflicts of interest rules governing the appropriate
Members of Congress, Federal, State, and local
officials, and their spouses, such additional rules are
satisfied with respect to such issue.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an
issue, over
``(ii) the issuance costs financed by the
issue (to the extent that such costs do not
exceed 2 percent of such proceeds), and
``(B) the proceeds from any investment of the
excess described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this subtitle,
the credit determined under subsection (a) shall be treated as interest
which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a tax credit
bond held by an S corporation or partnership, the allocation of the
credit allowed by this section to the shareholders of such corporation
or partners of such partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real Estate
Investment Trusts.--If any qualified tax credit bond is held by a
regulated investment company or a real estate investment trust, the
credit determined under subsection (a) shall be allowed to shareholders
of such company or beneficiaries of such trust (and any gross income
included under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries) under
procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit under
this section shall be allowed to the person who on the credit
allowance date holds the instrument evidencing the entitlement
to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a stripped
bond and to the credit under this section as if it were a
stripped coupon.
``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of this
subpart, the term `new clean renewable energy bond' means any bond
issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by
public power providers, governmental bodies, or cooperative
electric companies for one or more qualified renewable energy
facilities,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any
issuer shall not exceed the limitation amount allocated under
this subsection to such issuer.
``(2) National limitation on amount of bonds designated.--
There is a national new clean renewable energy bond limitation
of $2,000,000,000 which shall be allocated by the Secretary as
provided in paragraph (3), except that--
``(A) not more than 33 \1/3\ percent thereof may be
allocated to qualified projects of public power
providers,
``(B) not more than 33 \1/3\ percent thereof may be
allocated to qualified projects of governmental bodies,
and
``(C) not more than 33 \1/3\ percent thereof may be
allocated to qualified projects of cooperative electric
companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--
After the Secretary determines the qualified projects
of public power providers which are appropriate for
receiving an allocation of the national new clean
renewable energy bond limitation, the Secretary shall,
to the maximum extent practicable, make allocations
among such projects in such manner that the amount
allocated to each such project bears the same ratio to
the cost of such project as the limitation under
paragraph (2)(A) bears to the cost of all such
projects.
``(B) Allocation among governmental bodies and
cooperative electric companies.--The Secretary shall
make allocations of the amount of the national new
clean renewable energy bond limitation described in
paragraphs (2)(B) and (2)(C) among qualified projects
of governmental bodies and cooperative electric
companies, respectively, in such manner as the
Secretary determines appropriate.
``(c) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without regard to
paragraphs (8) and (10) thereof and to any placed in service
date) owned by a public power provider, a governmental body, or
a cooperative electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power Act
(as in effect on the date of the enactment of this paragraph).
``(3) Governmental body.--The term `governmental body'
means any State or Indian tribal government, or any political
subdivision thereof.
``(4) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C).
``(5) Clean renewable energy bond lender.--The term `clean
renewable energy bond lender' means a lender which is a
cooperative which is owned by, or has outstanding loans to, 100
or more cooperative electric companies and is in existence on
February 1, 2002, and shall include any affiliated entity which
is controlled by such lender.
``(6) Qualified issuer.--The term `qualified issuer' means
a public power provider, a governmental body, a cooperative
electric company, a clean renewable energy bond lender, or a
not-for-profit electric utility which has received a loan or
loan guarantee under the Rural Electrification Act.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to returns
regarding payments of interest) is amended by adding at the end the
following new paragraph:
``(9) Reporting of credit on qualified tax credit bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 54A and such amounts shall
be treated as paid on the credit allowance date (as
defined in section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ``subpart C'' and inserting ``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking ``subpart
H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and H'' and
inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter A of
chapter 1 is amended by striking ``Certain Bonds'' and
inserting ``Clean Renewable Energy Bonds''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by striking the item relating to subpart H
and inserting the following new items:
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(d) Application of Certain Labor Standards on Projects Financed
Under Tax Credit Bonds.--Subchapter IV of chapter 31 of title 40,
United States Code, shall apply to projects financed with the proceeds
of any tax credit bond (as defined in section 54A of the Internal
Revenue Code of 1986).
(e) Effective Dates.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
PART II--PROVISIONS RELATING TO CARBON MITIGATION AND COAL
SEC. 1507. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT
INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48A(a) (relating to
qualifying advanced coal project credit) is amended by striking ``and''
at the end of paragraph (1), by striking the period at the end of
paragraph (2) and inserting ``, and'', and by adding at the end the
following the paragraph:
``(3) 30 percent of the qualified investment for such
taxable year in the case of projects described in clauses (iii)
or (iv) of subsection (d)(3)(B).''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) (relating
to aggregate credits) is amended by striking ``$1,300,000,000'' and
inserting ``$2,800,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section 48A(d)(3)
(relating to aggregate credits) is amended to read as follows:
``(B) Particular projects.--Of the dollar amount in
subparagraph (A), the Secretary is authorized to
certify--
``(i) $800,000,000 for integrated
gasification combined cycle projects the
application for which is submitted during the
period described in paragraph (2)(A)(i),
``(ii) $500,000,000 for projects which use
other advanced coal-based generation
technologies the application for which is
submitted during the period described in
paragraph (2)(A)(i),
``(iii) $1,000,000,000 for integrated
gasification combined cycle projects the
application for which is submitted during the
period described in paragraph (2)(A)(ii), and
``(iv) $500,000,000 for other advanced
coal-based generation technology projects the
application for which is submitted during the
period described in paragraph (2)(A)(ii).''.
(2) Application period for additional projects.--
Subparagraph (A) of section 48A(d)(2) (relating to
certification) is amended to read as follows:
``(A) Application period.--Each applicant for
certification under this paragraph shall submit an
application meeting the requirements of subparagraph
(B). An applicant may only submit an application--
``(i) for an allocation from the dollar
amount specified in clause (i) or (ii) of
paragraph (3)(A) during the 3-year period
beginning on the date the Secretary establishes
the program under paragraph (1), and
``(ii) for an allocation from the dollar
amount specified in clause (iii) or (iv) of
paragraph (3)(A) during the 3-year period
beginning at the earlier of the termination of
the period described in clause (i) or the date
prescribed by the Secretary.''.
(3) Capture and sequestration of carbon dioxide emissions
requirement.--
(A) In general.--Section 48A(e)(1) (relating to
requirements) is amended by striking ``and'' at the end
of subparagraph (E), by striking the period at the end
of subparagraph (F) and inserting ``; and'', and by
adding at the end the following new subparagraph:
``(G) in the case of any project the application
for which is submitted during the period described in
subsection (d)(2)(A)(ii), the project includes
equipment which separates and sequesters at least 65
percent (70 percent in the case of an application for
reallocated credits under subsection (d)(4)) of such
project's total carbon dioxide emissions.''.
(B) Highest priority for projects which sequester
carbon dioxide emissions.--Section 48A(e)(3) is amended
by striking ``and'' at the end of subparagraph
(A)(iii), by striking the period at the end of
subparagraph (B)(3) and inserting ``, and'', and by
adding at the end the following new subparagraph:
``(C) give highest priority to projects with the
greatest separation and sequestration percentage of
total carbon dioxide emissions.''.
(C) Recapture of credit for failure to sequester.--
Section 48A (relating to qualifying advanced coal
project credit) is amended by adding at the end the
following new subsection:
``(h) Recapture of Credit for Failure to Sequester.--The Secretary
shall provide for recapturing the benefit of any credit allowable under
subsection (a) with respect to any project which fails to attain or
maintain the separation and sequestration requirements of subsection
(e)(1)(G).''.
(4) Additional priority for research partnerships.--Section
48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
(A) by striking ``and'' at the end of clause (ii),
(B) by redesignating clause (iii) as clause (iv),
and
(C) by inserting after clause (ii) the following
new clause:
``(iii) applicant participants who have a
research partnership with an eligible
educational institution (as defined in section
529(e)(5)), and''.
(5) Clerical amendment.--Section 48A(e)(3) is amended by
striking ``integrated gasification combined cycle'' in the
heading and inserting ``certain''.
(d) Competitive Certification Awards Modification Authority.--
Section 48A (relating to qualifying advanced coal project credit), as
amended by subsection (c)(3), is amended by adding at the end the
following new subsection:
``(i) Competitive Certification Awards Modification Authority.--In
implementing this section or section 48B, the Secretary is directed to
modify the terms of any competitive certification award and any
associated closing agreement where such modification--
``(1) is consistent with the objectives of such section,
``(2) is requested by the recipient of the competitive
certification award, and
``(3) involves moving the project site to improve the
potential to capture and sequester carbon dioxide emissions,
reduce costs of transporting feedstock, and serve a broader
customer base,
unless the Secretary determines that the dollar amount of tax credits
available to the taxpayer under such section would increase as a result
of the modification or such modification would result in such project
not being originally certified. In considering any such modification,
the Secretary shall consult with other relevant Federal agencies,
including the Department of Energy.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
credits the application for which is submitted during the
period described in section 48A(d)(2)(A)(ii) of the Internal
Revenue Code of 1986 and which are allocated or reallocated
after the date of the enactment of this Act.
(2) Competitive certification awards modification
authority.--The amendment made by subsection (d) shall take
effect on the date of the enactment of this Act and is
applicable to all competitive certification awards entered into
under section 48A or 48B of the Internal Revenue Code of 1986,
whether such awards were issued before, on, or after such date
of enactment.
(3) Technical amendment.--The amendment made by subsection
(c)(5) shall take effect as if included in the amendment made
by section 1307(b) of the Energy Tax Incentives Act of 2005.
SEC. 1508. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT
CREDIT.
(a) Credit Rate.--Section 48B(a) (relating to qualifying
gasification project credit) is amended by inserting ``(30 percent in
the case of credits allocated under subsection (d)(1)(B))'' after ``20
percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1) (relating to
qualifying gasification project program) is amended by striking ``shall
not exceed $350,000,000'' and all that follows and inserting ``shall
not exceed--
``(A) $350,000,000, plus
``(B) $500,000,000 for qualifying gasification
projects that include equipment which separates and
sequesters at least 75 percent of such a project's
total carbon dioxide emissions,
under rules similar to the rules of section 48A(d)(4).''.
(c) Recapture of Credit for Failure to Sequester.--Section 48B
(relating to qualifying gasification project credit) is amended by
adding at the end the following new subsection:
``(f) Recapture of Credit for Failure to Sequester.--The Secretary
shall provide for recapturing the benefit of any credit allowable under
subsection (a) with respect to any project which fails to attain or
maintain the separation and sequestration requirements for such project
under subsection (d)(1).''.
(d) Selection Priorities.--Section 48B(d) (relating to qualifying
gasification project program) is amended by adding at the end the
following new paragraph:
``(4) Selection priorities.--In determining which
qualifying gasification projects to certify under this section,
the Secretary shall--
``(A) give highest priority to projects with the
greatest separation and sequestration percentage of
total carbon dioxide emissions, and
``(B) give high priority to applicant participants
who have a research partnership with an eligible
educational institution (as defined in section
529(e)(5)).''.
(e) Effective Date.--The amendments made by this section shall
apply to credits described in section 48B(d)(1)(B) of the Internal
Revenue Code of 1986 which are allocated or reallocated after the date
of the enactment of this Act.
SEC. 1509. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED CARBON DIOXIDE PIPELINE PROPERTY.
(a) In General.--Section 168(e)(3)(C) (defining 7-year property) is
amended by striking ``and'' at the end of clause (iv), by redesignating
clause (v) as clause (vi), and by inserting after clause (iv) the
following new clause:
``(v) any qualified carbon dioxide pipeline
property--
``(I) the original use of which
commences with the taxpayer after the
date of the enactment of this clause,
``(II) the original purpose of
which is to transport carbon dioxide,
and
``(III) which is placed in service
before January 1, 2011, and''.
(b) Definition of Qualified Carbon Dioxide Pipeline Property.--
Section 168(e) (relating to classification of property) is amended by
inserting at the end the following new paragraph:
``(8) Qualified carbon dioxide pipeline property.--
``(A) In general.--The term `qualified carbon
dioxide pipeline property' means property which is used
in the United States solely to transmit qualified
carbon dioxide from the point of capture to a secure
geological storage or the point at which such qualified
carbon dioxide is used as a tertiary injectant.
``(B) Definitions and special rules.--For purposes
of this paragraph--
``(i) Qualified carbon dioxide.--The term
`qualified carbon dioxide' means carbon dioxide
captured from an industrial source which--
``(I) would otherwise be released
into the atmosphere as industrial
emission of greenhouse gas, and
``(II) is measured at the source of
capture and verified at the point of
disposal or injection.
``(ii) Secure geological storage.--The
Secretary, in consultation with the
Administrator of the Environmental Protection
Agency, shall establish regulations for
determining adequate security measures for the
geological storage of carbon dioxide under
subparagraph (A) such that the carbon dioxide
does not escape into the atmosphere. Such term
shall include storage at deep saline formations
and unminable coal seems under such conditions
as the Secretary may determine under such
regulations.
``(iii) Tertiary injectant.--The term
`tertiary injectant' has the same meaning as
when used within section 193(b)(1).''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 1510. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN
COAL PRODUCERS AND EXPORTERS.
(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections (a)(1)
and (c) of section 6416 and section 6511 of the
Internal Revenue Code of 1986, if--
(i) a coal producer establishes that such
coal producer, or a party related to such coal
producer, exported coal produced by such coal
producer to a foreign country or shipped coal
produced by such coal producer to a possession
of the United States, the export or shipment of
which was other than through an exporter who
has filed a claim for a refund under paragraph
(2),
(ii) such coal producer filed a return on
or after October 1, 1990, and on or before the
date of the enactment of this Act, and
(iii) such coal producer files a claim for
refund not later than the close of the 30-day
period beginning on the date of the enactment
of this Act,
then the Secretary of the Treasury shall pay to such
coal producer an amount equal to the tax paid under
section 4121 of such Code on such coal exported by the
coal producer or a party related to such coal producer.
(B) Special rules for certain taxpayers.--For
purposes of this section--
(i) Establishment of export.--If a coal
producer or a party related to a coal producer
has received a judgment described in clause
(iii), such coal producer shall be deemed to
have established the export of coal to a
foreign country or shipment of coal to a
possession of the United States under
subparagraph (A)(i).
(ii) Amount of payment.--If a taxpayer
described in clause (i) is entitled to a
payment under subparagraph (A), the amount of
such payment shall be reduced by any amount
awarded under the judgment described in clause
(iii).
(iii) Judgment described.--A judgment is
described in this subparagraph if such
judgment--
(I) is made by a court of competent
jurisdiction within the United States,
(II) relates to the
constitutionality of any tax paid on
exported coal under section 4121 of the
Internal Revenue Code of 1986, and
(III) is in favor of the coal
producer or the party related to the
coal producer.
(iv) Recapture.--In the case any judgment
described in clause (iii) is overturned, the
coal producer shall pay to the Secretary the
amount of any payment received under
subparagraph (A) unless the coal producer
establishes the export of the coal to a foreign
country or shipment of coal to a possession of
the United States.
(2) Exporters.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, and a judgment described in paragraph (1)(B)(iii) of
this subsection, if--
(A) an exporter establishes that such exporter
exported coal to a foreign country or shipped coal to a
possession of the United States, or caused such coal to
be so exported or shipped,
(B) such exporter filed a return on or after
October 1, 1990, and on or before the date of the
enactment of this Act, and
(C) such exporter files a claim for refund not
later than the close of the 30-day period beginning on
the date of the enactment of this Act,
then the Secretary of the Treasury shall pay to such exporter
an amount equal to $0.825 per ton of such coal exported by the
exporter or caused to be exported by the exporter.
(b) Limitations.--Subsection (a) shall not apply with respect to
exported coal if a credit or refund of tax imposed by section 4121 of
such Code on such coal has been allowed or made to, or if a settlement
with the Federal Government has been made with and accepted by, the
coal producer, a party related to such coal producer, or the exporter,
of such coal, as of the date that the claim is filed under this section
with respect to such exported coal. For purposes of this subsection,
the term ``settlement with the Federal Government'' shall not include
any settlement or stipulation entered into as of the date of the
enactment of this Act, the terms of which contemplate a judgment
concerning which any party has reserved the right to file an appeal, or
has filed an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made under
this section to the extent that a credit or refund of such tax on such
exported coal has been paid to any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means the
person in whom is vested ownership of the coal immediately
after the coal is severed from the ground, without regard to
the existence of any contractual arrangement for the sale or
other disposition of the coal or the payment of any royalties
between the producer and third parties. The term includes any
person who extracts coal from coal waste refuse piles or from
the silt waste product which results from the wet washing (or
similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person, other
than a coal producer, who does not have a contract, fee
arrangement, or any other agreement with a producer or seller
of such coal to sell or export such coal to a third party on
behalf of the producer or seller of such coal and--
(A) is indicated in the shipper's export
declaration or other documentation as the exporter of
record, or
(B) actually exported such coal to a foreign
country or shipped such coal to a possession of the
United States, or caused such coal to be so exported or
shipped.
(3) Related party.--The term ``a party related to such coal
producer'' means a person who--
(A) is related to such coal producer through any
degree of common management, stock ownership, or voting
control,
(B) is related (within the meaning of section
144(a)(3) of such Code) to such coal producer, or
(C) has a contract, fee arrangement, or any other
agreement with such coal producer to sell such coal to
a third party on behalf of such coal producer.
(e) Timing of Refund.--With respect to any claim for refund filed
pursuant to this section, the Secretary of the Treasury shall determine
whether the requirements of this section are met not later than 180
days after such claim is filed. If the Secretary determines that the
requirements of this section are met, the claim for refund shall be
paid not later than 180 days after the Secretary makes such
determination.
(f) Interest.--Any refund paid pursuant to this section shall be
paid by the Secretary of the Treasury with interest from the date of
overpayment determined by using the overpayment rate and method under
section 6621 of such Code.
(g) Denial of Double Benefit.--The payment under subsection (a)
with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the amount
of tax paid under section 4121 of the Internal Revenue Code of
1986 with respect to such coal by such coal producer or a party
related to such coal producer, and
(2) in the case of a payment to an exporter, an amount
equal to $0.825 per ton with respect to such coal exported by
the exporter or caused to be exported by the exporter.
(h) Application of Section.--This section applies only to claims on
coal exported on or after October 1, 1990, through the date of the
enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this section
shall not confer standing upon an exporter to commence, or
intervene in, any judicial or administrative proceeding
concerning a claim for refund by a coal producer of any Federal
or State tax, fee, or royalty paid by the coal producer.
(2) Coal producers.--With respect to coal producers, this
section shall not confer standing upon a coal producer to
commence, or intervene in, any judicial or administrative
proceeding concerning a claim for refund by an exporter of any
Federal or State tax, fee, or royalty paid by the producer and
alleged to have been passed on to an exporter.
SEC. 1511. EXTENSION OF TEMPORARY INCREASE IN COAL EXCISE TAX.
Paragraph (2) of section 4121(e) (relating to temporary increase
termination date) is amended--
(1) by striking ``January 1, 2014'' in clause (i) and
inserting ``December 31, 2017'', and
(2) by striking ``January 1 after 1981'' in clause (ii) and
inserting ``December 31 after 2007''.
SEC. 1512. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into an
agreement with the National Academy of Sciences to undertake a
comprehensive review of the Internal Revenue Code of 1986 to identify
the types of and specific tax provisions that have the largest effects
on carbon and other greenhouse gas emissions and to estimate the
magnitude of those effects.
(b) Report.--Not later than 2 years after the date of enactment of
this Act, the National Academy of Sciences shall submit to Congress a
report containing the results of study authorized under this section.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,500,000 for the period of
fiscal years 2008 and 2009.
Subtitle B--Transportation and Domestic Fuel Security
PART I--BIOFUELS
SEC. 1521. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS ALCOHOL.
(a) In General.--Subsection (a) of section 40 (relating to alcohol
used as fuel) is amended by striking ``plus'' at the end of paragraph
(2), by striking the period at the end of paragraph (3) and inserting
``, plus'', and by adding at the end the following new paragraph:
``(4) the cellulosic alcohol producer credit.''.
(b) Cellulosic Alcohol Producer Credit.--
(1) In general.--Subsection (b) of section 40 is amended by
redesignating paragraph (5) as paragraph (6) and by inserting
after paragraph (4) the following new paragraph:
``(5) Cellulosic alcohol producer credit.--
``(A) In general.--The cellulosic alcohol producer
credit for the taxable year is an amount equal to the
applicable amount for each gallon of qualified
cellulosic alcohol production.
``(B) Applicable amount.--For purposes of
subparagraph (A), the applicable amount means the
excess of--
``(i) $1.01, over
``(ii) the amount of the credit in effect
for alcohol which is ethanol under subsection
(b)(1) (without regard to subsection (b)(3)) at
the time of the qualified cellulosic alcohol
production.
``(C) Limitation.--
``(i) In general.--No credit shall be
allowed to any taxpayer under subparagraph (A)
with respect to any qualified cellulosic
alcohol production during the taxable year in
excess of 60,000,000 gallons.
``(ii) Aggregation rule.--For purposes of
clause (i), all members of the same controlled
group of corporations (within the meaning of
section 267(f)) and all persons under common
control (within the meaning of section 52(b)
but determined by treating an interest of more
than 50 percent as a controlling interest)
shall be treated as 1 person.
``(iii) Partnership, s corporations, and
other pass-thru entities.--In the case of a
partnership, trust, S corporation, or other
pass-thru entity, the limitation contained in
clause (i) shall be applied at the entity level
and at the partner or similar level.
``(D) Qualified cellulosic alcohol production.--For
purposes of this section, the term `qualified
cellulosic alcohol production' means any cellulosic
biomass alcohol which is produced by the taxpayer and
which during the taxable year--
``(i) is sold by the taxpayer to another
person--
``(I) for use by such other person
in the production of a qualified
alcohol mixture in such other person's
trade or business (other than casual
off-farm production),
``(II) for use by such other person
as a fuel in a trade or business, or
``(III) who sells such cellulosic
biomass alcohol at retail to another
person and places such cellulosic
biomass alcohol in the fuel tank of
such other person, or
``(ii) is used or sold by the taxpayer for
any purpose described in clause (i).
The qualified cellulosic alcohol production of any
taxpayer for any taxable year shall not include any
alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of
the alcohol by additional distillation.
``(E) Cellulosic biomass alcohol.--
``(i) In general.--The term `cellulosic
biomass alcohol' has the meaning given such
term under section 168(l)(3), but does not
include any alcohol with a proof of less than
150.
``(ii) Determination of proof.--The
determination of the proof of any alcohol shall
be made without regard to any added
denaturants.
``(F) Coordination with small ethanol producer
credit.--No small ethanol producer credit shall be
allowed with respect to any qualified cellulosic
alcohol production if credit is determined with respect
to such production under this paragraph.
``(G) Allocation of cellulosic producer credit to
patrons of cooperative.--Rules similar to the rules
under subsection (g)(6) shall apply for purposes of
this paragraph.
``(H) Application of paragraph.--This paragraph
shall apply with respect to qualified cellulosic
alcohol production after December 31, 2007, and before
January 1, 2014.''.
(2) Termination date not to apply.--Subsection (e) of
section 40 (relating to termination) is amended--
(A) by inserting ``or subsection (b)(5)(H)'' after
``by reason of paragraph (1)'' in paragraph (2), and
(B) by adding at the end the following new
paragraph:
``(3) Exception for cellulosic alcohol producer credit.--
Paragraph (1) shall not apply to the portion of the credit
allowed under this section by reason of subsection (a)(4).''.
(c) Alcohol Not Used as a Fuel, etc.--
(1) In general.--Paragraph (3) of section 40(d) is amended
by redesignating subparagraph (D) as subparagraph (E) and by
inserting after subparagraph (C) the following new
subparagraph:
``(D) Cellulosic alcohol producer credit.--If--
``(i) any credit is determined under
subsection (a)(4), and
``(ii) any person does not use such fuel
for a purpose described in subsection
(b)(5)(D),
then there is hereby imposed on such person a tax equal
to the applicable amount for each gallon of such
cellulosic biomass alcohol.''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 40(d)(3) is amended
by striking ``producer'' in the heading and inserting
``small ethanol producer''.
(B) Subparagraph (E) of section 40(d)(3), as
redesignated by paragraph (1), is amended by striking
``or (C)'' and inserting ``(C), or (D)''.
(d) Limitation to Cellulosic Alcohol With Connection to the United
States.--Subsection (d) of section 40, as amended by this Act, is
amended by adding at the end the following new paragraph:
``(7) Limitation to cellulosic alcohol with connection to
the united states.--No cellulosic alcohol producer credit shall
be determined under subsection (a) with respect to any alcohol
unless such alcohol is produced in the United States.''.
(e) Effective Date.--The amendments made by this section shall
apply to fuel produced after December 31, 2007.
SEC. 1522. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOMASS ALCOHOL
FUEL PLANT PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) (relating to
special allowance for cellulosic biomass ethanol plant property) is
amended to read as follows:
``(3) Cellulosic biomass alcohol.--For purposes of this
subsection, the term `cellulosic biomass alcohol' means any
alcohol produced from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring basis.''.
(b) Conforming Amendments.--
(1) Subsection (l) of section 168 is amended by striking
``cellulosic biomass ethanol'' each place it appears and
inserting ``cellulosic biomass alcohol''.
(2) The heading of section 168(l) is amended by striking
``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic
Biomass Alcohol''.
(3) The heading of paragraph (2) of section 168(l) is
amended by striking ``cellulosic biomass ethanol'' and
inserting ``cellulosic biomass alcohol''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 1523. MODIFICATION OF ALCOHOL CREDIT.
(a) Income Tax Credit.--Subsection (h) of section 40 (relating to
reduced credit for ethanol blenders) is amended by adding at the end
the following new paragraph:
``(3) Reduced amount after sale of 7,500,000,000 gallons.--
``(A) In general.--In the case of any calendar year
beginning after the calendar year described in
subparagraph (B), the last row in the table in
paragraph (2) shall be applied by substituting `46
cents' for `51 cents'.
``(B) Calendar year described.--The calendar year
described in this subparagraph is the first calendar
year beginning after 2007 during which 7,500,000,000
gallons of ethanol (including cellulosic ethanol) have
been produced in or imported into the United States, as
certified by the Secretary, in consultation with the
Administrator of the Environmental Protection
Agency.''.
(b) Excise Tax Credit.--
(1) In general.--Paragraph (2) of section 6426(b) (relating
to alcohol fuel mixture credit) is amended by adding at the end
the following new subparagraph:
``(C) Reduced amount after sale of 7,500,000,000
gallons.--In the case of any alcohol fuel mixture
produced in a calendar year beginning after the
calendar year described in section 40(h)(3)(B),
subparagraph (A) shall be applied by substituting `46
cents' for `51 cents'.''.
(2) Conforming amendment.--Subparagraph (A) of section
6426(b)(2) is amended by striking ``subparagraph (B)'' and
inserting ``subparagraphs (B) and (C)''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 1524. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND
RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are
each amended by striking ``December 31, 2008'' and inserting ``December
31, 2010''.
(b) Uniform Treatment of Diesel Produced From Biomass.--Paragraph
(3) of section 40A(f) is amended--
(1) by striking ``using a thermal depolymerization
process'', and
(2) by striking ``or D396'' in subparagraph (B) and
inserting ``or other equivalent standard approved by the
Secretary for fuels to be used in diesel-powered highway
vehicles''.
(c) Eligibility of Certain Aviation Fuel.--Paragraph (3) of section
40A(f) (defining renewable diesel) is amended by adding at the end the
following new flush sentence:
``The term `renewable diesel' also means fuel derived from
biomass which meets the requirements of a Department of Defense
specification for military jet fuel or an American Society of
Testing and Materials specification for aviation turbine
fuel.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after the date of the enactment of this Act.
(2) Uniform treatment of diesel produced from biomass.--The
amendments made by subsection (b) shall apply to fuel produced,
and sold or used, after the date which is 30 days after the
date of the enactment of this Act.
SEC. 1525. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL CREDIT.
(a) Coproduction With Petroleum Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining
renewable diesel), as amended by this Act, is amended by adding
at the end the following sentence: ``Such term does not include
any fuel derived from coprocessing biomass with a feedstock
which is not biomass. For purposes of this paragraph, the term
`biomass' has the meaning given such term by section
45K(c)(3).''
(2) Conforming amendment.--Paragraph (3) of section 40A(f)
is amended by striking ``(as defined in section 45K(c)(3))''.
(b) Clarification of Eligibility for Alternative Fuel Credit.--
(1) In general.--Subparagraph (F) of section 6426(d)(2) is
amended by striking ``hydrocarbons'' and inserting ``fuel''.
(2) Conforming amendment.--Section 6426 is amended by
adding at the end the following new subsection:
``(h) Denial of Double Benefit.--No credit shall be determined
under subsection (d) or (e) with respect to any fuel with respect to
which credit may be determined under subsection (b) or (c) or under
section 40 or 40A.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after December 31, 2007.
(2) Clarification of eligibility for alternative fuel
credit.--The amendment made by subsection (b) shall take effect
as if included in section 11113 of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for
Users.
SEC. 1526. PROVISIONS CLARIFYING TREATMENT OF FUELS WITH NO NEXUS TO
THE UNITED STATES.
(a) Alcohol Fuels Credit.--Subsection (d) of section 40 is amended
by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section with
respect to any alcohol which is produced outside the United
States for use as a fuel outside the United States. For
purposes of this paragraph, the term `United States' includes
any possession of the United States.''.
(b) Biodiesel Fuels Credit.--Subsection (d) of section 40A is
amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section with
respect to any biodiesel which is produced outside the United
States for use as a fuel outside the United States. For
purposes of this paragraph, the term `United States' includes
any possession of the United States.''.
(c) Excise Tax Credit.--
(1) In general.--Section 6426, as amended by this Act, is
amended by adding at the end the following new subsection:
``(i) Limitation to Fuels With Connection to the United States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel or
alternative fuel which is produced outside the United States
for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any
possession of the United States.''.
(2) Conforming amendment.--Subsection (e) of section 6427
is amended by redesignating paragraph (5) as paragraph (6) and
by inserting after paragraph (4) the following new paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or (2)
with respect to any mixture or alternative fuel if credit is
not allowed with respect to such mixture or alternative fuel by
reason of section 6426(i).''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect as if included in section 301 of the American Jobs
Creation Act of 2004.
(2) Alternative fuel credits.--So much of the amendments
made by this section as relate to the alternative fuel credit
or the alternative fuel mixture credit shall take effect as if
included in section 11113 of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users.
(3) Renewable diesel.--So much of the amendments made by
this section as relate to renewable diesel shall take effect as
if included in section 1346 of the Energy Policy Act of 2005.
SEC. 1527. COMPREHENSIVE STUDY OF BIOFUELS.
(a) Study.--The Secretary of the Treasury, in consultation with the
Secretary of Agriculture, the Secretary of Energy, and the
Administrator of the Environmental Protection Agency, shall enter into
an agreement with the National Academy of Sciences to produce an
analysis of current scientific findings to determine--
(1) current biofuels production, as well as projections for
future production,
(2) the maximum amount of biofuels production capable on
United States farmland,
(3) the domestic effects of a dramatic increase in biofuels
production on, for example--
(A) the price of fuel,
(B) the price of land in rural and suburban
communities,
(C) crop acreage and other land use,
(D) the environment, due to changes in crop
acreage, fertilizer use, runoff, water use, emissions
from vehicles utilizing biofuels, and other factors,
(E) the price of feed,
(F) the selling price of grain crops,
(G) exports and imports of grains,
(H) taxpayers, through cost or savings to commodity
crop payments, and
(I) the expansion of refinery capacity,
(4) the ability to convert corn ethanol plants for other
uses, such as cellulosic ethanol or biodiesel,
(5) a comparative analysis of corn ethanol versus other
biofuels and renewable energy sources, considering cost, energy
output, and ease of implementation, and
(6) the need for additional scientific inquiry, and
specific areas of interest for future research.
(b) Report.--The National Academy of Sciences shall submit an
initial report of the findings of the report required under subsection
(a) to the Congress not later than 3 months after the date of the
enactment of this Act, and a final report not later than 6 months after
such date of enactment.
PART II--ADVANCED TECHNOLOGY MOTOR VEHICLES
SEC. 1528. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
(relating to other credits) is amended by adding at the end the
following new section:
``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of the credit amounts determined under subsection (b)
with respect to each new qualified plug-in electric drive motor vehicle
placed in service by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any new qualified plug-in electric
drive motor vehicle is the sum of the amounts determined under
paragraphs (2) and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $3,000.
``(3) Battery capacity.--In the case of a vehicle which
draws propulsion energy from a battery with not less than 5
kilowatt hours of capacity, the amount determined under this
paragraph is $200, plus $200 for each kilowatt hour of capacity
in excess of 5 kilowatt hours. The amount determined under this
paragraph shall not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable
year (determined after application of paragraph (1))
shall be treated as a credit allowable under subpart A
for such taxable year.
``(B) Limitation based on amount of tax.--In the
case of a taxable year to which section 26(a)(2) does
not apply, the credit allowed under subsection (a) for
any taxable year (determined after application of
paragraph (1)) shall not exceed the excess of--
``(i) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax
imposed by section 55, over
``(ii) the sum of the credits allowable
under subpart A (other than this section and
sections 23 and 25D) and section 27 for the
taxable year.
``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--For
purposes of this section--
``(1) In general.--The term `new qualified plug-in electric
drive motor vehicle' means a motor vehicle (as defined in
section 30(c)(2))--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the
taxpayer and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating of
less than 14,000 pounds,
``(E) which has received a certificate of
conformity under the Clean Air Act and meets or exceeds
the Bin 5 Tier II emission standard established in
regulations prescribed by the Administrator of the
Environmental Protection Agency under section 202(i) of
the Clean Air Act for that make and model year vehicle,
and
``(F) which is propelled to a significant extent by
an electric motor which draws electricity from a
battery which--
``(i) has a capacity of not less than 4
kilowatt hours, and
``(ii) is capable of being recharged from
an external source of electricity.
``(2) Exception.--The term `new qualified plug-in electric
drive motor vehicle' shall not include any vehicle which is not
a passenger automobile or light truck if such vehicle has a
gross vehicle weight rating of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given such
terms in regulations prescribed by the Administrator of the
Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C. 7521
et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours, as
measured from a 100 percent state of charge to a 0 percent
state of charge.
``(e) Limitation on Number of New Qualified Plug-in Electric Drive
Motor Vehicles Eligible for Credit.--
``(1) In general.--In the case of a new qualified plug-in
electric drive motor vehicle sold during the phaseout period,
only the applicable percentage of the credit otherwise
allowable under subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which includes
the first date on which the number of new qualified plug-in
electric drive motor vehicles manufactured by the manufacturer
of the vehicle referred to in paragraph (1) sold for use in the
United States after the date of the enactment of this section,
is at least 60,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters
of the phaseout period,
``(B) 25 percent for the 3d and 4th calendar
quarters of the phaseout period, and
``(C) 0 percent for each calendar quarter
thereafter.
``(4) Controlled groups.--Rules similar to the rules of
section 30B(f)(4) shall apply for purposes of this subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit (determined without regard to
subsection (c)).
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b)(1) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(4) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(5) Property used by tax-exempt entity; interaction with
air quality and motor vehicle safety standards.--Rules similar
to the rules of paragraphs (6) and (10) of section 30B(h) shall
apply for purposes of this section.''.
(b) Coordination With Alternative Motor Vehicle Credit.--Section
30B(d)(3) is amended by adding at the end the following new
subparagraph:
``(D) Exclusion of plug-in vehicles.--Any vehicle
with respect to which a credit is allowable under
section 30D (determined without regard to subsection
(c) thereof) shall not be taken into account under this
section.''.
(c) Credit Made Part of General Business Credit.--Section 38(b), as
amended by this Act, is amended--
(1) by striking ``and'' each place it appears at the end of
any paragraph,
(2) by striking ``plus'' each place it appears at the end
of any paragraph,
(3) by striking the period at the end of paragraph (31) and
inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(32) the portion of the new qualified plug-in electric
drive motor vehicle credit to which section 30D(c)(1)
applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act, is
amended by striking ``and 25D'' and inserting ``25D, and 30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by this Act, is amended
by striking ``and 25D'' and inserting ``, 25D, and 30D''.
(D) Section 26(a)(1), as amended by this Act, is amended by
striking ``and 25D'' and inserting ``25D, and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (36), by striking the period at the end of
paragraph (37) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(38) to the extent provided in section 30D(f)(1).''.
(3) Section 6501(m) is amended by inserting ``30D(f)(4),''
after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a Personal
Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is amended
to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) for any taxable year (after application of paragraph (1))
shall be treated as a credit allowable under subpart A for such
taxable year.''.
(2) Conforming amendments.--
(A) Subparagraph (A) of section 30C(d)(2) is
amended by striking ``sections 27, 30, and 30B'' and
inserting ``sections 27 and 30''.
(B) Paragraph (3) of section 55(c) is amended by
striking ``30B(g)(2),''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2007.
(2) Treatment of alternative motor vehicle credit as
personal credit.--The amendments made by subsection (e) shall
apply to taxable years beginning after December 31, 2006.
(g) Application of EGTRRA Sunset.--The amendment made by subsection
(d)(1)(A) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the provision
of such Act to which such amendment relates.
SEC. 1529. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS
AND ADVANCED INSULATION.
(a) In General.--Section 4053 (relating to exemptions) is amended
by adding at the end the following new paragraphs:
``(9) Idling reduction device.--Any device or system of
devices which--
``(A) is designed to provide to a vehicle those
services (such as heat, air conditioning, or
electricity) that would otherwise require the operation
of the main drive engine while the vehicle is
temporarily parked or remains stationary using either--
``(i) an all electric unit, such as a
battery powered unit or from grid-supplied
electricity, or
``(ii) a dual fuel unit powered by diesel
or other fuels, and capable of providing such
services from grid-supplied electricity or on-
truck batteries alone, and
``(B) is certified by the Secretary of Energy, in
consultation with the Administrator of the
Environmental Protection Agency and the Secretary of
Transportation, to reduce long-duration idling of such
vehicle at a motor vehicle rest stop or other location
where such vehicles are temporarily parked or remain
stationary.
For purposes of subparagraph (B), the term `long-duration
idling' means the operation of a main drive engine, for a
period greater than 15 consecutive minutes, where the main
drive engine is not engaged in gear. Such term does not apply
to routine stoppages associated with traffic movement or
congestion.
``(10) Advanced insulation.--Any insulation that has an R
value of not less than R35 per inch.''.
(b) Effective Date.--The amendment made by this section shall apply
to sales or installations after December 31, 2007.
PART III--OTHER TRANSPORTATION PROVISIONS
SEC. 1530. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is amended by
redesignating section 1400L as section 1400K and by adding at the end
the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against any taxes
imposed for any payroll period by section 3402 for which such
governmental unit is liable under section 3403 an amount equal to so
much of the portion of the qualifying project expenditure amount
allocated under subsection (b)(3) to such governmental unit for the
calendar year as is allocated by such governmental unit to such period
under subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes of this
section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum of--
``(A) the total expenditures paid or incurred
during such calendar year by all New York Liberty Zone
governmental units and the Port Authority of New York
and New Jersey for any portion of qualifying projects
located wholly within the City of New York, New York,
and
``(B) any such expenditures--
``(i) paid or incurred in any preceding
calendar year which begins after the date of
enactment of this section, and
``(ii) not previously allocated under
paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports, and
waterways, in or connecting with the New York Liberty Zone (as
defined in section 1400K(h)), which is designated as a
qualifying project under this section jointly by the Governor
of the State of New York and the Mayor of the City of New York,
New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New
York and the Mayor of the City of New York, New York,
shall jointly allocate to each New York Liberty Zone
governmental unit the portion of the qualifying project
expenditure amount which may be taken into account by
such governmental unit under subsection (a) for any
calendar year in the credit period.
``(B) Aggregate limit.--The aggregate amount which
may be allocated under subparagraph (A) for all
calendar years in the credit period shall not exceed
$2,000,000,000.
``(C) Annual limit.--The aggregate amount which may
be allocated under subparagraph (A) for any calendar
year in the credit period shall not exceed the sum of--
``(i) $115,000,000 ($425,000,000 in the
case of the last 2 years in the credit period),
plus
``(ii) the aggregate amount authorized to
be allocated under this paragraph for all
preceding calendar years in the credit period
which was not so allocated.
``(D) Unallocated amounts at end of credit
period.--If, as of the close of the credit period, the
amount under subparagraph (B) exceeds the aggregate
amount allocated under subparagraph (A) for all
calendar years in the credit period, the Governor of
the State of New York and the Mayor of the City of New
York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year
in the 5-year period following the credit period an
amount equal to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project
expenditure amount for such calendar
year, reduced by
``(ii) the aggregate amount allocated under
this subparagraph for all preceding calendar
years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it under
subsection (b)(3) within the time prescribed by the Governor of
the State of New York and the Mayor of the City of New York,
New York, then such amount shall after such time be treated for
purposes of subsection (b)(3) in the same manner as if it had
never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
12-year period beginning on January 1, 2008.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State
or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for the
purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having paid
to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit allowed
to such entity under subsection (a) with respect to such wages,
but only if such governmental unit deducts and withholds wages
for such payroll period under section 3401 (relating to wage
withholding).
``(e) Reporting.--The Governor of the State of New York and the
Mayor of the City of New York, New York, shall jointly submit to the
Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for
the calendar year, and
``(B) the amount allocated to each New York Liberty
Zone governmental unit under subsection (b)(3) for the
calendar year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance as may
be necessary or appropriate to ensure compliance with the purposes of
this section.''.
(b) Termination of Special Allowance and Expensing.--Subparagraph
(A) of section 1400K(b)(2), as redesignated by subsection (a), is
amended by striking the parenthetical therein and inserting ``(in the
case of nonresidential real property and residential rental property,
the date of the enactment of the Clean Renewable Energy and
Conservation Tax Act of 2007 or, if acquired pursuant to a binding
contract in effect on such enactment date, December 31, 2009)''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``section 1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by redesignating the item relating to
section 1400L as an item relating to section 1400K and by
inserting after such item the following new item:
``Sec. 1400L. New York Liberty Zone tax credits.''.
(d) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 1531. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE
COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) of the Internal
Revenue Code of 1986 (relating to general rule for qualified
transportation fringe) is amended by adding at the end the following:
``(D) Any qualified bicycle commuting
reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section 132(f) of
such Code is amended by striking ``and'' at the end of subparagraph
(A), by striking the period at the end of subparagraph (B) and
inserting ``, and'', and by adding at the end the following new
subparagraph:
``(C) the applicable annual limitation in the case
of any qualified bicycle commuting reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) of such Code
(relating to definitions) is amended by adding at the end the
following:
``(F) Definitions related to bicycle commuting
reimbursement.--
``(i) Qualified bicycle commuting
reimbursement.--The term `qualified bicycle
commuting reimbursement' means, with respect to
any calendar year, any employer reimbursement
during the 15-month period beginning with the
first day of such calendar year for reasonable
expenses incurred by the employee during such
calendar year for the purchase of a bicycle and
bicycle improvements, repair, and storage, if
such bicycle is regularly used for travel
between the employee's residence and place of
employment.
``(ii) Applicable annual limitation.--The
term `applicable annual limitation' means, with
respect to any employee for any calendar year,
the product of $20 multiplied by the number of
qualified bicycle commuting months during such
year.
``(iii) Qualified bicycle commuting
month.--The term `qualified bicycle commuting
month' means, with respect to any employee, any
month during which such employee--
``(I) regularly uses the bicycle
for a substantial portion of the travel
between the employee's residence and
place of employment, and
``(II) does not receive any benefit
described in subparagraph (A), (B), or
(C) of paragraph (1).''.
(d) Constructive Receipt of Benefit.--Paragraph (4) of section
132(f) is amended by inserting ``(other than a qualified bicycle
commuting reimbursement)'' after ``qualified transportation fringe''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
Subtitle C--Energy Conservation and Efficiency
PART I--CONSERVATION TAX CREDIT BONDS
SEC. 1541. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1,
as added by this title, is amended by adding at the end the following
new section:
``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of this
subchapter, the term `qualified energy conservation bond' means any
bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for one or more qualified conservation
purposes,
``(2) the bond is issued by a State or local government,
and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under subsection
(a) by any issuer shall not exceed the limitation amount allocated to
such issuer under subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified energy conservation bond limitation of
$3,000,000,000.
``(d) Allocations.--
``(1) In general.--The limitation applicable under
subsection (c) shall be allocated by the Secretary among the
States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in
which there is a large local government, each such
local government shall be allocated a portion of such
State's allocation which bears the same ratio to the
State's allocation (determined without regard to this
subparagraph) as the population of such large local
government bears to the population of such State.
``(B) Allocation of unused limitation to state.--
The amount allocated under this subsection to a large
local government may be reallocated by such local
government to the State in which such local government
is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county
has a population of 100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection to a
State or large local government shall be allocated by such
State or large local government to issuers within the State in
a manner that results in not less than 70 percent of the
allocation to such State or large local government being used
to designate bonds which are not private activity bonds.
``(e) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for purposes
of--
``(i) reducing energy consumption in
publicly-owned buildings by at least 20
percent,
``(ii) implementing green community
programs, or
``(iii) rural development involving the
production of electricity from renewable energy
resources.
``(B) Expenditures with respect to research
facilities, and research grants, to support research
in--
``(i) development of cellulosic ethanol or
other nonfossil fuels,
``(ii) technologies for the capture and
sequestration of carbon dioxide produced
through the use of fossil fuels,
``(iii) increasing the efficiency of
existing technologies for producing nonfossil
fuels,
``(iv) automobile battery technologies and
other technologies to reduce fossil fuel
consumption in transportation, or
``(v) technologies to reduce energy use in
buildings.
``(C) Mass commuting facilities and related
facilities that reduce the consumption of energy,
including expenditures to reduce pollution from
vehicles used for mass commuting.
``(D) Demonstration projects designed to promote
the commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste for
use in the production of fuel or otherwise,
``(iii) advanced battery manufacturing
technologies,
``(iv) technologies to reduce peak use of
electricity, or
``(v) technologies for the capture and
sequestration of carbon dioxide emitted from
combusting fossil fuels in order to produce
electricity.
``(E) Public education campaigns to promote energy
efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private activity
bond, the term `qualified conservation purposes' shall not
include any expenditure which is not a capital expenditure.
``(f) Population.--
``(1) In general.--The population of any State or local
government shall be determined for purposes of this section as
provided in section 146(j) for the calendar year which includes
the date of the enactment of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section, any
population of such county which is taken into account in
determining the population of any municipality which is a large
local government shall not be taken into account in determining
the population of such county.
``(g) Application to Indian Tribal Governments.--An Indian tribal
government shall be treated for purposes of this section in the same
manner as a large local government, except that--
``(1) an Indian tribal government shall be treated for
purposes of subsection (d) as located within a State to the
extent of so much of the population of such government as
resides within such State, and
``(2) any bond issued by an Indian tribal government shall
be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of
which are used for purposes for which such Indian tribal
government could issue bonds to which section 103(a)
applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by this
title, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a new clean renewable energy bond, or
``(B) a qualified energy conservation bond,
which is part of an issue that meets requirements of paragraphs
(2), (3), (4), and (5).''.
(2) Subparagraph (C) of section 54A(d)(2), as added by this
title, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this
paragraph, the term `qualified purpose' means--
``(i) in the case of a new clean renewable
energy bond, a purpose specified in section
54B(a)(1), and
``(ii) in the case of a qualified energy
conservation bond, a purpose specified in
section 54C(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by this title, is amended
by adding at the end the following new item:
``Sec. 54C. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 1542. QUALIFIED FORESTRY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1,
as added by this title, is amended by adding at the end the following
new section:
``SEC. 54D. QUALIFIED FORESTRY CONSERVATION BONDS.
``(a) Qualified Forestry Conservation Bond.--For purposes of this
subchapter, the term `qualified forestry conservation bond' means any
bond issued as part of an issue if--
``(1) 100 percent of the available proceeds of such issue
are to be used for one or more qualified forestry conservation
projects,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under subsection
(a) by any issuer shall not exceed the limitation amount allocated to
such issuer under subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified forestry conservation bond limitation of
$500,000,000.
``(d) Allocations.--
``(1) In general.--The Secretary shall make allocations of
the amount of the national qualified forestry conservation bond
limitation described in subsection (c) among qualified forestry
conservation projects in such manner as the Secretary
determines appropriate so as to ensure that all of such
limitation is allocated before the date which is 24 months
after the date of the enactment of this section.
``(2) Solicitation of applications.--The Secretary shall
solicit applications for allocations of the national qualified
forestry conservation bond limitation described in subsection
(c) not later than 90 days after the date of the enactment of
this section.
``(e) Qualified Forestry Conservation Project.--For purposes of
this section, the term `qualified forestry conservation project' means
the acquisition by a State or 501(c)(3) organization (as defined in
section 150(a)(4)) from an unrelated person of forest and forest land
that meets the following qualifications:
``(1) Some portion of the land acquired must be adjacent to
United States Forest Service Land.
``(2) At least half of the land acquired must be
transferred to the United States Forest Service at no net cost
to the United States and not more than half of the land
acquired may either remain with or be donated to a State.
``(3) All of the land must be subject to a native fish
habitat conservation plan approved by the United States Fish
and Wildlife Service.
``(4) The amount of acreage acquired must be at least
40,000 acres.
``(f) Qualified Issuer.--For purposes of this section, the term
`qualified issuer' means a State or 501(c)(3) organization (as defined
in section 150(a)(4)).
``(g) Special Arbitrage Rule.--In the case of any qualified
forestry conservation bond issued as part of an issue, section
54A(d)(4)(C) shall be applied to such issue without regard to clause
(i).''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by this
title, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a new clean renewable energy bond,
``(B) a qualified energy conservation bond, or
``(C) a qualified forestry conservation bond,
which is part of an issue that meets requirements of paragraphs
(2), (3), (4), and (5).''.
(2) Subparagraph (C) of section 54A(d)(2), as added by this
title, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this
paragraph, the term `qualified purpose' means--
``(i) in the case of a new clean renewable
energy bond, a purpose specified in section
54B(a)(1),
``(ii) in the case of a qualified energy
conservation bond, a purpose specified in
section 54C(a)(1), and
``(iii) in the case of a qualified forestry
conservation bond, a purpose specified in
section 54D(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by this title, is amended
by adding at the end the following new item:
``Sec. 54C. Qualified forestry conservation bonds.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
PART II--EFFICIENCY
SEC. 1543. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT EXISTING
HOMES CREDIT.
(a) Extension of Credit.--Section 25C(g) (relating to termination)
is amended by striking ``December 31, 2007'' and inserting ``December
31, 2008''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph
(D),
(B) by striking the period at the end of
subparagraph (E) and inserting ``, and'', and
(C) by adding at the end the following new
subparagraph:
``(F) a stove which uses the burning of biomass
fuel to heat a dwelling unit located in the United
States and used as a residence by the taxpayer, or to
heat water for use in such a dwelling unit, and which
has a thermal efficiency rating of at least 75
percent.''.
(2) Biomass fuel.--Section 25C(d) (relating to residential
energy property expenditures) is amended by adding at the end
the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any
plant-derived fuel available on a renewable or recurring basis,
including agricultural crops and trees, wood and wood waste and
residues (including wood pellets), plants (including aquatic
plants), grasses, residues, and fibers.''.
(c) Effective Date.--The amendments made this section shall apply
to expenditures made after December 31, 2007.
SEC. 1544. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL
BUILDINGS DEDUCTION.
Subsection (h) of section 179D (relating to termination) is amended
by striking ``December 31, 2008'' and inserting ``December 31, 2013''.
SEC. 1545. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR
APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is
manufactured in calendar year 2008 or 2009 and which
uses no more than 324 kilowatt hours per year and 5.8
gallons per cycle, and
``(B) $75 in the case of a dishwasher which is
manufactured in calendar year 2008, 2009, or 2010 and
which uses no more than 307 kilowatt hours per year and
5.0 gallons per cycle (5.5 gallons per cycle for
dishwashers designed for greater than 12 place
settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading
clothes washer manufactured in calendar year 2008 which
meets or exceeds a 1.72 modified energy factor and does
not exceed a 8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading
clothes washer manufactured in calendar year 2008 or
2009 which meets or exceeds a 1.8 modified energy
factor and does not exceed a 7.5 water consumption
factor,
``(C) $150 in the case of a residential or
commercial clothes washer manufactured in calendar year
2008, 2009 or 2010 which meets or exceeds 2.0 modified
energy factor and does not exceed a 6.0 water
consumption factor, and
``(D) $250 in the case of a residential or
commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.2 modified
energy factor and does not exceed a 4.5 water
consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at
least 20 percent but not more than 22.9 percent less
kilowatt hours per year than the 2001 energy
conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and
consumes at least 23 percent but no more than 24.9
percent less kilowatt hours per year than the 2001
energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9
percent less kilowatt hours per year than the 2001
energy conservation standards, and
``(D) $200 in the case of a refrigerator
manufactured in calendar year 2008, 2009, or 2010 and
which consumes at least 30 percent less energy than the
2001 energy conservation standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that
follows through ``the eligible'' and inserting ``The
eligible'', and
(C) by moving the text of such subsection in line
with the subsection heading and redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2),
respectively.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1) of this section, is amended
by striking ``3-calendar year'' and inserting ``2-calendar
year''.
(c) Types of Energy Efficient Appliances.--Subsection (d) of
section 45M (defining types of energy efficient appliances) is amended
to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of this
section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to
read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to a
taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior taxable
years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read as
follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not be
taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection
(b)(1),
``(B) any clothes washer described in subsection
(b)(2), and
``(C) any refrigerator described in subsection
(b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes
washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M (relating to definitions) is amended by redesignating
paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7),
and (8), respectively, and by inserting after paragraph (3) the
following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the machine
and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(7), as
redesignated by paragraph (3), is amended to read as follows:
``(7) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section
45M(f) (relating to definitions) is amended by adding at the
end the following:
``(9) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of a
dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water consumption
divided by the cubic foot (or liter) capacity of the clothes
washer.''.
(f) Effective Date.--The amendments made by this section shall
apply to appliances produced after December 31, 2007.
SEC. 1546. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED ENERGY MANAGEMENT DEVICES.
(a) In General.--Section 168(e)(3)(C) (relating to 7-year
property), as amended by this Act, is amended by striking ``and'' at
the end of clause (v), by redesignating clause (vi) as clause (vii),
and by inserting after clause (v) the following new clause:
``(vi) any qualified energy management
device, and''.
(b) Definition of Qualified Energy Management Device.--Section
168(i) (relating to definitions and special rules) is amended by
inserting at the end the following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy
management device' means any energy management device
which is installed on real property of a customer of
the taxpayer and is placed in service by a taxpayer
who--
``(i) is a supplier of electric energy or a
provider of electric energy services, and
``(ii) provides all commercial and
residential customers of such supplier or
provider with net metering upon the request of
such customer.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device'
means any time-based meter and related communication
equipment which is capable of being used by the
taxpayer as part of a system that--
``(i) measures and records electricity
usage data on a time-differentiated basis in at
least 24 separate time segments per day,
``(ii) provides for the exchange of
information between supplier or provider and
the customer's energy management device in
support of time-based rates or other forms of
demand response, and
``(iii) provides data to such supplier or
provider so that the supplier or provider can
provide energy usage information to customers
electronically.
``(C) Net metering.--For purposes of subparagraph
(A), the term `net metering' means allowing customers a
credit for providing electricity to the supplier or
provider.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2007.
Subtitle D--Other Provisions
PART I--FORESTRY PROVISIONS
SEC. 1551. DEDUCTION FOR QUALIFIED TIMBER GAIN.
(a) In General.--Part I of subchapter P of chapter 1 is amended by
adding at the end the following new section:
``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.
``(a) In General.--In the case of a taxpayer which elects the
application of this section for a taxable year, there shall be allowed
a deduction against gross income in an amount equal to 60 percent of
the lesser of--
``(1) the taxpayer's qualified timber gain for such year,
or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section, the
term `qualified timber gain' means, with respect to any taxpayer for
any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(2) the sum of the taxpayer's losses described in such
subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--
``(1) In the case of any qualified timber gain of a pass-
thru entity (as defined in section 1(h)(10)) other than a real
estate investment trust, the election under this section shall
be made separately by each taxpayer subject to tax on such
gain.
``(2) In the case of any qualified timber gain of a real
estate investment trust, the election under this section shall
be made by the real estate investment trust.
``(d) Election.--An election under this section may be made only
with respect to the first taxable year beginning after the date of the
enactment of this section.''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2) of
section 1(h) is amended to read as follows:
``(2) Reduction of net capital gain.--For purposes of this
subsection, the net capital gain for any taxable year shall be
reduced (but not below zero) by the sum of--
``(A) the amount which the taxpayer takes into
account as investment income under section
163(d)(4)(B)(iii), and
``(B) in the case of a taxable year with respect to
which an election is in effect under section 1203, the
taxpayer's qualified timber gain (as defined in section
1203(b)).''.
(2) Corporations.--Section 1201 is amended by redesignating
subsection (b) as subsection (c) and inserting after subsection
(a) the following new subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For purposes
of this section, in the case of a corporation with respect to which an
election is in effect under section 1203, the net capital gain for any
taxable year shall be reduced (but not below zero) by the corporation's
qualified timber gain (as defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes Other
Deductions.--Subsection (a) of section 62 is amended by inserting
before the last sentence the following new paragraph:
``(22) Qualified timber gains.--The deduction allowed by
section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current Earnings.--
Subparagraph (C) of section 56(g)(4) is amended by adding at the end
the following new clause:
``(vii) Deduction for qualified timber
gain.--Clause (i) shall not apply to any
deduction allowed under section 1203.''.
(e) Deduction Allowed in Computing Taxable Income of Electing Small
Business Trusts.--Subparagraph (C) of section 641(c)(2) is amended by
inserting after clause (iv) the following new clause:
``(v) The deduction allowed under section
1203.''.
(f) Treatment of Qualified Timber Gain of Real Estate Investment
Trusts.--Paragraph (3) of section 857(b) is amended by inserting after
subparagraph (F) the following new subparagraph:
``(G) Treatment of qualified timber gain.--For
purposes of this part, in the case of a real estate
investment trust with respect to which an election is
in effect under section 1203--
``(i) Reduction of net capital gain.--The
net capital gain of the real estate investment
trust for any taxable year shall be reduced
(but not below zero) by the real estate
investment trust's qualified timber gain (as
defined in section 1203(b)).
``(ii) Adjustment to shareholder's basis
attributable to deduction for qualified timber
gains.--
``(I) In general.--The adjusted
basis of shares in the hands of the
shareholder shall be increased by the
amount of the deduction allowable under
section 1203(a) as provided in
subclauses (II) and (III).
``(II) Allocation of basis increase
for distributions made during taxable
year.--For any taxable year of a real
estate investment trust for which an
election is in effect under section
1203, in the case of a distribution
made with respect to shares during such
taxable year of amounts attributable to
the deduction allowable under section
1203(a), the adjusted basis of such
shares shall be increased by the amount
of such distributions.
``(III) Allocation of excess.--If
the deduction allowable under section
1203(a) for a taxable year exceeds the
amount of distributions described in
subclause (II), the excess shall be
allocated to every shareholder of the
real estate investment trust at the
close of the trust's taxable year in
the same manner as if a distribution of
such excess were made with respect to
such shares.
``(IV) Designations.--To the extent
provided in regulations, a real estate
investment trust shall designate the
amounts described in subclauses (II)
and (III) in a manner similar to the
designations provided with respect to
capital gains described in
subparagraphs (C) and (D).
``(V) Definitions.--As used in this
subparagraph, the terms `share' and
`shareholder' shall include beneficial
interests and holders of beneficial
interests, respectively.
``(iii) Earnings and profits deduction for
qualified timber gains.--The deduction
allowable under section 1203(a) for a taxable
year shall be allowed as a deduction in
computing the earnings and profits of the real
estate investment trust for such taxable year.
The earnings and profits of any such
shareholder which is a corporation shall be
appropriately adjusted in accordance with
regulations prescribed by the Secretary.''.
(g) Loss Attributable to Basis Adjustment for Deduction for
Qualified Timber Gain of Real Estate Investment Trusts.--
(1) Section 857(b)(8) is amended by redesignating
subparagraphs (B) and (C) as subparagraphs (C) and (D),
respectively, and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Loss attributable to basis adjustment for
deduction for qualified timber gain.--If--
``(i) a shareholder of a real estate
investment trust receives a basis adjustment
provided under subsection (b)(3)(G)(ii), and
``(ii) the taxpayer has held such share or
interest for 6 months or less,
then any loss on the sale or exchange of such share or
interest shall, to the extent of the amount described
in clause (i), be disallowed.''.
(2) Subparagraph (D) of section 857(b)(8), as redesignated
by paragraph (1), is amended by striking ``subparagraph (A)''
and inserting ``subparagraphs (A) and (B)''.
(h) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the exclusion under section 1202, and the
deduction under section 1203, shall not be allowed.''.
(2) Paragraph (4) of section 642(c) is amended by striking
the first sentence and inserting ``To the extent that the
amount otherwise allowable as a deduction under this subsection
consists of gain described in section 1202(a) or qualified
timber gain (as defined in section 1203(b)), proper adjustment
shall be made for any exclusion allowable to the estate or
trust under section 1202 and for any deduction allowable to the
estate or trust under section 1203.''
(3) Paragraph (3) of section 643(a) is amended by striking
the last sentence and inserting ``The exclusion under section
1202 and the deduction under section 1203 shall not be taken
into account.''.
(4) Subparagraph (C) of section 643(a)(6) is amended to
read as follows:
``(C) Paragraph (3) shall not apply to a foreign
trust. In the case of such a trust--
``(i) there shall be included gains from
the sale or exchange of capital assets, reduced
by losses from such sales or exchanges to the
extent such losses do not exceed gains from
such sales or exchanges, and
``(ii) the deduction under section 1203
shall not be taken into account.''.
(5) Paragraph (4) of section 691(c) is amended by inserting
``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by inserting
``or 1203,'' after ``1202,''.
(7) The table of sections for part I of subchapter P of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 1203. Deduction for qualified timber gain.''.
(i) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 1552. EXCISE TAX NOT APPLICABLE TO SECTION 1203 DEDUCTION OF REAL
ESTATE INVESTMENT TRUSTS.
(a) In General.--
(1) Ordinary income.--Subparagraph (B) of section
4981(e)(1) is amended to read as follows:
``(B) by not taking into account--
``(i) any gain or loss from the sale or
exchange of capital assets (determined without
regard to any reduction that would be applied
for purposes of section 857(b)(3)(G)(i)), and
``(ii) any deduction allowable under
section 1203, and''.
(2) Capital gain net income.--Section 4981(e)(2) is amended
by adding at the end the following new subparagraph:
``(D) Qualified timber gain.--The amount determined
under subparagraph (A) shall be determined without
regard to any reduction that would be applied for
purposes of section 857(b)(3)(G)(i) but shall be
reduced for any deduction allowable under section 1203
for such calendar year.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 1553. TIMBER REIT MODERNIZATION.
(a) In General.--Section 856(c)(5) is amended by adding after
subparagraph (G) the following new subparagraph:
``(H) Treatment of timber gains.--
``(i) In general.--Gain from the sale of
real property described in paragraph (2)(D) and
(3)(C) shall include gain which is--
``(I) recognized by an election
under section 631(a) from timber owned
by the real estate investment trust,
the cutting of which is provided by a
taxable REIT subsidiary of the real
estate investment trust;
``(II) recognized under section
631(b); or
``(III) income which would
constitute gain under subclause (I) or
(II) but for the failure to meet the 1-
year holding period requirement.
``(ii) Special rules.--
``(I) For purposes of this
subtitle, cut timber, the gain of which
is recognized by a real estate
investment trust pursuant to an
election under section 631(a) described
in clause (i)(I) or so much of clause
(i)(III) as relates to clause (i)(I),
shall be deemed to be sold to the
taxable REIT subsidiary of the real
estate investment trust on the first
day of the taxable year.
``(II) For purposes of this
subtitle, income described in this
subparagraph shall not be treated as
gain from the sale of property
described in section 1221(a)(1).
``(iii) Termination.--This subparagraph
shall not apply to dispositions after the
termination date.''.
(b) Termination Date.--Subsection (c) of section 856 is amended by
adding at the end the following new paragraph:
``(8) Termination date.--For purposes of this subsection,
the term `termination date' means the last day of the first
taxable year beginning after the date of the enactment of this
paragraph.''.
(c) Effective Date.--The amendments made by subsection (a) shall
apply to dispositions in taxable years beginning after the date of the
enactment of this Act.
SEC. 1554. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.
(a) In General.--Section 856(c)(2) is amended by striking ``and''
at the end of subparagraph (G), by inserting ``and'' at the end of
subparagraph (H), and by adding after subparagraph (H) the following
new subparagraph:
``(I) mineral royalty income earned in the first
taxable year beginning after the date of the enactment
of this subparagraph from real property owned by a
timber real estate investment trust held, or once held,
in connection with the trade or business of producing
timber by such real estate investment trust;''.
(b) Timber Real Estate Investment Trust.--Section 856(c)(5), as
amended by this Act, is amended by adding after subparagraph (H) the
following new subparagraph:
``(I) Timber real estate investment trust.--The
term `timber real estate investment trust' means a real
estate investment trust in which more than 50 percent
in value of its total assets consists of real property
held in connection with the trade or business of
producing timber.''.
(c) Effective Date.--The amendments by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
SEC. 1555. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST FOR
TIMBER REITS.
(a) In General.--Section 856(c)(4)(B)(ii) is amended by inserting
``(in the case of a quarter which closes on or before the termination
date, 25 percent in the case of a timber real estate investment
trust)'' after ``not more than 20 percent of the value of its total
assets is represented by securities of one or more taxable REIT
subsidiaries''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 1556. SAFE HARBOR FOR TIMBER PROPERTY.
(a) In General.--Section 857(b)(6) (relating to income from
prohibited transactions) is amended by adding at the end the following
new subparagraph:
``(G) Special rules for sales to qualified
organizations.--
``(i) In general.--In the case of sale of a
real estate asset (as defined in section
856(c)(5)(B)) to a qualified organization (as
defined in section 170(h)(3)) exclusively for
conservation purposes (within the meaning of
section 170(h)(1)(C)), subparagraph (D) shall
be applied--
``(I) by substituting `2 years' for
`4 years' in clause (i), and
``(II) by substituting `2-year
period' for `4-year period' in clauses
(ii) and (iii).
``(ii) Termination.--This subparagraph
shall not apply to sales after the termination
date.''.
(b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is amended by
inserting ``or, in the case of a sale on or before the termination
date, a taxable REIT subsidiary'' after ``independent contractor (as
defined in section 856(d)(3)) from whom the trust itself does not
derive or receive any income''.
(c) Sales That Are Not Prohibited Transactions.--Section 857(b)(6),
as amended by subsection (a), is amended by adding at the end the
following new subparagraph:
``(H) Sales of property that are not a prohibited
transaction.--In the case of a sale on or before the
termination date, the sale of property which is not a
prohibited transaction through application of
subparagraph (D) shall be considered property held for
investment or for use in a trade or business and not
property described in section 1221(a)(1) for all
purposes of this subtitle.''.
(d) Termination Date.--Section 857(b)(6), as amended by subsections
(a) and (c), is amended by adding at the end the following new
subparagraph:
``(I) Termination date.--For purposes of this
paragraph, the term `termination date' means the last
day of the first taxable year beginning after the date
of the enactment of this subparagraph.''.
(e) Effective Date.--The amendments made by this section shall
apply to dispositions in taxable years beginning after the date of the
enactment of this Act.
PART II--EXXON VALDEZ
SEC. 1557. INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION WITH THE
EXXON VALDEZ LITIGATION.
(a) Income Averaging of Amounts Received From the Exxon Valdez
Litigation.--For purposes of section 1301 of the Internal Revenue Code
of 1986--
(1) any qualified taxpayer who receives any qualified
settlement income in any taxable year shall be treated as
engaged in a fishing business (determined without regard to the
commercial nature of the business), and
(2) such qualified settlement income shall be treated as
income attributable to such a fishing business for such taxable
year.
(b) Contributions of Amounts Received to Retirement Accounts.--
(1) In general.--Any qualified taxpayer who receives
qualified settlement income during the taxable year may, at any
time before the end of the taxable year in which such income
was received, make one or more contributions to an eligible
retirement plan of which such qualified taxpayer is a
beneficiary in an aggregate amount not to exceed the lesser
of--
(A) $100,000 (reduced by the amount of qualified
settlement income contributed to an eligible retirement
plan in prior taxable years pursuant to this
subsection), or
(B) the amount of qualified settlement income
received by the individual during the taxable year.
(2) Time when contributions deemed made.--For purposes of
paragraph (1), a qualified taxpayer shall be deemed to have
made a contribution to an eligible retirement plan on the last
day of the taxable year in which such income is received if the
contribution is made on account of such taxable year and is
made not later than the time prescribed by law for filing the
return for such taxable year (not including extensions
thereof).
(3) Treatment of contributions to eligible retirement
plans.--For purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with respect to
qualified settlement income, then--
(A) except as provided in paragraph (4)--
(i) to the extent of such contribution, the
qualified settlement income shall not be
included in taxable income, and
(ii) for purposes of section 72 of such
Code, such contribution shall not be considered
to be investment in the contract,
(B) the qualified taxpayer shall, to the extent of
the amount of the contribution, be treated--
(i) as having received the qualified
settlement income--
(I) in the case of a contribution
to an individual retirement plan (as
defined under section 7701(a)(37) of
such Code), in a distribution described
in section 408(d)(3) of such Code, and
(II) in the case of any other
eligible retirement plan, in an
eligible rollover distribution (as
defined under section 402(f)(2) of such
Code), and
(ii) as having transferred the amount to
the eligible retirement plan in a direct
trustee to trustee transfer within 60 days of
the distribution,
(C) section 408(d)(3)(B) of the Internal Revenue
Code of 1986 shall not apply with respect to amounts
treated as a rollover under this paragraph, and
(D) section 408A(c)(3)(B) of the Internal Revenue
Code of 1986 shall not apply with respect to amounts
contributed to a Roth IRA (as defined under section
408A(b) of such Code) or a designated Roth contribution
to an applicable retirement plan (within the meaning of
section 402A of such Code) under this paragraph.
(4) Special rule for roth iras and roth 401(k)s.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with respect to
qualified settlement income to a Roth IRA (as defined under
section 408A(b) of such Code) or as a designated Roth
contribution to an applicable retirement plan (within the
meaning of section 402A of such Code), then--
(A) the qualified settlement income shall be
includible in taxable income, and
(B) for purposes of section 72 of such Code, such
contribution shall be considered to be investment in
the contract.
(5) Eligible retirement plan.--For purpose of this
subsection, the term ``eligible retirement plan'' has the
meaning given such term under section 402(c)(8)(B) of the
Internal Revenue Code of 1986.
(c) Treatment of Qualified Settlement Income Under Employment
Taxes.--
(1) SECA.--For purposes of chapter 2 of the Internal
Revenue Code of 1986 and section 211 of the Social Security
Act, no portion of qualified settlement income received by a
qualified taxpayer shall be treated as self-employment income.
(2) FICA.--For purposes of chapter 21 of the Internal
Revenue Code of 1986 and section 209 of the Social Security
Act, no portion of qualified settlement income received by a
qualified taxpayer shall be treated as wages.
(d) Qualified Taxpayer.--For purposes of this section, the term
``qualified taxpayer'' means--
(1) any individual who is a plaintiff in the civil action
In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D.
Alaska); or
(2) any individual who is a beneficiary of the estate of
such a plaintiff who--
(A) acquired the right to receive qualified
settlement income from that plaintiff; and
(B) was the spouse or an immediate relative of that
plaintiff.
(e) Qualified Settlement Income.--For purposes of this section, the
term ``qualified settlement income'' means any interest and punitive
damage awards which are--
(1) otherwise includible in taxable income, and
(2) received (whether as lump sums or periodic payments) in
connection with the civil action In re Exxon Valdez, No. 89-
095-CV (HRH) (Consolidated) (D. Alaska) (whether pre- or post-
judgment and whether related to a settlement or judgment).
Subtitle E--Revenue Provisions
SEC. 1561. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC
PRODUCTION OF OIL, GAS, OR A PRIMARY PRODUCTS THEREOF.
(a) Denial of Deduction for Major Integrated Oil Companies for
Income Attributable to Domestic Production of Oil, Gas, or Primary
Products Thereof.--
(1) In general.--Subparagraph (B) of section 199(c)(4)
(relating to exceptions) is amended by striking ``or'' at the
end of clause (ii), by striking the period at the end of clause
(iii) and inserting ``, or'', and by inserting after clause
(iii) the following new clause:
``(iv) in the case of any major integrated
oil company (as defined in section
167(h)(5)(B)), the production, refining,
processing, transportation, or distribution of
oil, gas, or any primary product thereof during
any taxable year described in section
167(h)(5)(B).''.
(2) Primary product.--Section 199(c)(4)(B) is amended by
adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary
product' has the same meaning as when used in section
927(a)(2)(C), as in effect before its repeal.''.
(b) Limitation on Oil Related Qualified Production Activities
Income for Taxpayers Other Than Major Integrated Oil Companies.--
(1) In general.--Section 199(d) is amended by redesignating
paragraph (9) as paragraph (10) and by inserting after
paragraph (8) the following new paragraph:
``(9) Special rule for taxpayers with oil related qualified
production activities income.--
``(A) In general.--If a taxpayer (other than a
major integrated oil company (as defined in section
167(h)(5)(B))) has oil related qualified production
activities income for any taxable year beginning after
2009, the amount of the deduction under subsection (a)
shall be reduced by 3 percent of the least of--
``(i) the oil related qualified production
activities income of the taxpayer for the
taxable year,
``(ii) the qualified production activities
income of the taxpayer for the taxable year, or
``(iii) taxable income (determined without
regard to this section).
``(B) Oil related qualified production activities
income.--The term `oil related qualified production
activities income' means for any taxable year the
qualified production activities income which is
attributable to the production, refining, processing,
transportation, or distribution of oil, gas, or any
primary product thereof during such taxable year.''.
(2) Conforming amendment.--Section 199(d)(2) (relating to
application to individuals) is amended by striking ``subsection
(a)(1)(B)'' and inserting ``subsections (a)(1)(B) and
(d)(9)(A)(iii)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 1562. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN OIL AND
GAS EXTRACTION INCOME AND FOREIGN OIL RELATED INCOME FOR
PURPOSES OF THE FOREIGN TAX CREDIT.
(a) In General.--Subsections (a) and (b) of section 907 (relating
to special rules in case of foreign oil and gas income) are amended to
read as follows:
``(a) Reduction in Amount Allowed as Foreign Tax Under Section
901.--In applying section 901, the amount of any foreign oil and gas
taxes paid or accrued (or deemed to have been paid) during the taxable
year which would (but for this subsection) be taken into account for
purposes of section 901 shall be reduced by the amount (if any) by
which the amount of such taxes exceeds the product of--
``(1) the amount of the combined foreign oil and gas income
for the taxable year,
``(2) multiplied by--
``(A) in the case of a corporation, the percentage
which is equal to the highest rate of tax specified
under section 11(b), or
``(B) in the case of an individual, a fraction the
numerator of which is the tax against which the credit
under section 901(a) is taken and the denominator of
which is the taxpayer's entire taxable income.
``(b) Combined Foreign Oil and Gas Income; Foreign Oil and Gas
Taxes.--For purposes of this section--
``(1) Combined foreign oil and gas income.--The term
`combined foreign oil and gas income' means, with respect to
any taxable year, the sum of--
``(A) foreign oil and gas extraction income, and
``(B) foreign oil related income.
``(2) Foreign oil and gas taxes.--The term `foreign oil and
gas taxes' means, with respect to any taxable year, the sum
of--
``(A) oil and gas extraction taxes, and
``(B) any income, war profits, and excess profits
taxes paid or accrued (or deemed to have been paid or
accrued under section 902 or 960) during the taxable
year with respect to foreign oil related income
(determined without regard to subsection (c)(4)) or
loss which would be taken into account for purposes of
section 901 without regard to this section.''.
(b) Recapture of Foreign Oil and Gas Losses.--Paragraph (4) of
section 907(c) (relating to recapture of foreign oil and gas extraction
losses by recharacterizing later extraction income) is amended to read
as follows:
``(4) Recapture of foreign oil and gas losses by
recharacterizing later combined foreign oil and gas income.--
``(A) In general.--The combined foreign oil and gas
income of a taxpayer for a taxable year (determined
without regard to this paragraph) shall be reduced--
``(i) first by the amount determined under
subparagraph (B), and
``(ii) then by the amount determined under
subparagraph (C).
The aggregate amount of such reductions shall be
treated as income (from sources without the United
States) which is not combined foreign oil and gas
income.
``(B) Reduction for pre-2008 foreign oil extraction
losses.--The reduction under this paragraph shall be
equal to the lesser of--
``(i) the foreign oil and gas extraction
income of the taxpayer for the taxable year
(determined without regard to this paragraph),
or
``(ii) the excess of--
``(I) the aggregate amount of
foreign oil extraction losses for
preceding taxable years beginning after
December 31, 1982, and before January
1, 2008, over
``(II) so much of such aggregate
amount as was recharacterized under
this paragraph (as in effect before and
after the date of the enactment of the
Clean Renewable Energy and Conservation
Tax Act of 2007) for preceding taxable
years beginning after December 31,
1982.
``(C) Reduction for post-2007 foreign oil and gas
losses.--The reduction under this paragraph shall be
equal to the lesser of--
``(i) the combined foreign oil and gas
income of the taxpayer for the taxable year
(determined without regard to this paragraph),
reduced by an amount equal to the reduction
under subparagraph (A) for the taxable year, or
``(ii) the excess of--
``(I) the aggregate amount of
foreign oil and gas losses for
preceding taxable years beginning after
December 31, 2007, over
``(II) so much of such aggregate
amount as was recharacterized under
this paragraph for preceding taxable
years beginning after December 31,
2007.
``(D) Foreign oil and gas loss defined.--
``(i) In general.--For purposes of this
paragraph, the term `foreign oil and gas loss'
means the amount by which--
``(I) the gross income for the
taxable year from sources without the
United States and its possessions
(whether or not the taxpayer chooses
the benefits of this subpart for such
taxable year) taken into account in
determining the combined foreign oil
and gas income for such year, is
exceeded by
``(II) the sum of the deductions
properly apportioned or allocated
thereto.
``(ii) Net operating loss deduction not
taken into account.--For purposes of clause
(i), the net operating loss deduction allowable
for the taxable year under section 172(a) shall
not be taken into account.
``(iii) Expropriation and casualty losses
not taken into account.--For purposes of clause
(i), there shall not be taken into account--
``(I) any foreign expropriation
loss (as defined in section 172(h) (as
in effect on the day before the date of
the enactment of the Revenue
Reconciliation Act of 1990)) for the
taxable year, or
``(II) any loss for the taxable
year which arises from fire, storm,
shipwreck, or other casualty, or from
theft,
to the extent such loss is not compensated for
by insurance or otherwise.
``(iv) Foreign oil extraction loss.--For
purposes of subparagraph (B)(ii)(I), foreign
oil extraction losses shall be determined under
this paragraph as in effect on the day before
the date of the enactment of the Clean
Renewable Energy and Conservation Tax Act of
2007.''.
(c) Carryback and Carryover of Disallowed Credits.--Section 907(f)
(relating to carryback and carryover of disallowed credits) is
amended--
(1) by striking ``oil and gas extraction taxes'' each place
it appears and inserting ``foreign oil and gas taxes'', and
(2) by adding at the end the following new paragraph:
``(4) Transition rules for pre-2008 and 2008 disallowed
credits.--
``(A) Pre-2008 credits.--In the case of any unused
credit year beginning before January 1, 2008, this
subsection shall be applied to any unused oil and gas
extraction taxes carried from such unused credit year
to a year beginning after December 31, 2007--
``(i) by substituting `oil and gas
extraction taxes' for `foreign oil and gas
taxes' each place it appears in paragraphs (1),
(2), and (3), and
``(ii) by computing, for purposes of
paragraph (2)(A), the limitation under
subparagraph (A) for the year to which such
taxes are carried by substituting `foreign oil
and gas extraction income' for `foreign oil and
gas income' in subsection (a).
``(B) 2008 credits.--In the case of any unused
credit year beginning in 2008, the amendments made to
this subsection by the Clean Renewable Energy and
Conservation Tax Act of 2007 shall be treated as being
in effect for any preceding year beginning before
January 1, 2008, solely for purposes of determining how
much of the unused foreign oil and gas taxes for such
unused credit year may be deemed paid or accrued in
such preceding year.''.
(d) Conforming Amendment.--Section 6501(i) is amended by striking
``oil and gas extraction taxes'' and inserting ``foreign oil and gas
taxes''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 1563. SEVEN-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES.
(a) In General.--Subparagraph (A) of section 167(h)(5) (relating to
special rule for major integrated oil companies) is amended by striking
``5-year'' and inserting ``7-year''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred after the date of the enactment of this
Act.
SEC. 1564. BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES
TRANSACTIONS.
(a) In General.--
(1) Broker reporting for securities transactions.--Section
6045 (relating to returns of brokers) is amended by adding at
the end the following new subsection:
``(g) Additional Information Required in the Case of Securities
Transactions.--
``(1) In general.--If a broker is otherwise required to
make a return under subsection (a) with respect to the gross
proceeds of the sale of a covered security, the broker shall
include in such return the information described in paragraph
(2).
``(2) Additional information required.--
``(A) In general.--The information required under
paragraph (1) to be shown on a return with respect to a
covered security of a customer shall include the
customer's adjusted basis in such security and whether
any gain or loss with respect to such security is long-
term or short-term (within the meaning of section
1222).
``(B) Determination of adjusted basis.--For
purposes of subparagraph (A)--
``(i) In general.--The customer's adjusted
basis shall be determined--
``(I) in the case of any stock
(other than any stock in an open-end
fund), in accordance with the first-in
first-out method unless the customer
notifies the broker by means of making
an adequate identification of the stock
sold or transferred,
``(II) in the case of any stock in
an open-end fund acquired before
January 1, 2011, in accordance with any
acceptable method under section 1012
with respect to the account in which
such interest is held,
``(III) in the case of any stock in
an open-end fund acquired after
December 31, 2010, in accordance with
the broker's default method unless the
customer notifies the broker that he
elects another acceptable method under
section 1012 with respect to the
account in which such interest is held,
and
``(IV) in any other case, under the
method for making such determination
under section 1012.
``(ii) Exception for wash sales.--Except as
otherwise provided by the Secretary, the
customer's adjusted basis shall be determined
without regard to section 1091 (relating to
loss from wash sales of stock or securities)
unless the transactions occur in the same
account with respect to identical securities.
``(3) Covered security.--For purposes of this subsection--
``(A) In general.--The term `covered security'
means any specified security acquired on or after the
applicable date if such security--
``(i) was acquired through a transaction in
the account in which such security is held, or
``(ii) was transferred to such account from
an account in which such security was a covered
security, but only if the broker received a
statement under section 6045A with respect to
the transfer.
``(B) Specified security.--The term `specified
security' means--
``(i) any share of stock in a corporation,
``(ii) any note, bond, debenture, or other
evidence of indebtedness,
``(iii) any commodity, or contract or
derivative with respect to such commodity, if
the Secretary determines that adjusted basis
reporting is appropriate for purposes of this
subsection, and
``(iv) any other financial instrument with
respect to which the Secretary determines that
adjusted basis reporting is appropriate for
purposes of this subsection.
``(C) Applicable date.--The term `applicable date'
means--
``(i) January 1, 2009, in the case of any
specified security which is stock in a
corporation, and
``(ii) January 1, 2011, or such later date
determined by the Secretary in the case of any
other specified security.
``(4) Open-end fund.--For purposes of this subsection, the
term `open-end fund' means a regulated investment company (as
defined in section 851) which is offering for sale or has
outstanding any redeemable security of which it is the issuer
and the shares of which are not traded on an established
securities exchange.
``(5) Treatment of s corporations.--In the case of the sale
of a covered security acquired by an S corporation (other than
a financial institution) after December 31, 2010, such S
corporation shall be treated in the same manner as a
partnership for purposes of this section.
``(6) Special rules for short sales.--
``(A) In general.--Notwithstanding subsection (a),
in the case of a short sale under section 1233,
reporting under this section shall be made for the year
in which such sale is closed.
``(B) Exception for constructive sales.--
Subparagraph (A) shall not apply to any short sale
which results in a constructive sale under section 1259
with respect to property held in the account in which
the short sale is entered into.''.
(2) Broker information required with respect to options.--
Section 6045, as amended by subsection (a), is amended by
adding at the end the following new subsection:
``(h) Application to Options on Securities.--
``(1) Exercise of option.--For purposes of this section, in
the case of any exercise of an option on a covered security
where the option was granted or acquired in the same account as
the covered security, the amount received or paid with respect
to such exercise shall be treated as an adjustment to gross
proceeds or as an adjustment to basis, as the case may be.
``(2) Lapse or closing transaction.--For purposes of this
section, in the case of the lapse (or closing transaction (as
defined in section 1234(b)(2)(A))) of an option on a specified
security where the taxpayer is the grantor of the option, this
section shall apply as if the premium received for such option
were gross proceeds received on the date of the lapse or
closing transaction, and the cost (if any) of the closing
transaction shall be taken into account as adjusted basis. In
the case of an option on a specified security where the
taxpayer is the grantee of such option, this section shall
apply as if the grantee received gross proceeds of zero on the
date of the lapse.
``(3) Prospective application.--Paragraphs (1) and (2)
shall not apply to any option which is granted or acquired
before January 1, 2011.
``(4) Definitions.--For purposes of this subsection, the
terms `covered security' and `specified security' shall have
the meanings given such terms in subsection (g)(3).''.
(3) Extension of period for statements sent to customers.--
(A) In general.--Subsection (b) of section 6045 is
amended by striking ``January 31'' and inserting
``February 15 (January 31 in the case of returns for
calendar years before 2010)''.
(B) Statements related to substitute payments.--
Subsection (d) of section 6045 is amended--
(i) by striking ``at such time and'', and
(ii) by inserting after ``other item.'' the
following new sentence: ``In the case of a
payment made during any calendar year after
2009, the written statement required under the
preceding sentence shall be furnished on or
before February 15 of the year following the
calendar year in which the payment was made.''.
(C) Other statements.--Subsection (b) of section
6045 is amended by adding at the end the following:
``In the case of a consolidated reporting statement (as
defined in regulations) with respect to any account
which includes the statement required by this
subsection, any statement which would otherwise be
required to be furnished on or before January 31 of a
calendar year after 2010 under section 6042(c),
6049(c)(2)(A), or 6050N(b) with respect to any item in
such account shall instead be required to be furnished
on or before February 15 of such calendar year if
furnished as part of such consolidated reporting
statement.''.
(b) Determination of Basis of Certain Securities on Account by
Account Method.--Section 1012 (relating to basis of property-cost) is
amended--
(1) by striking ``The basis of property'' and inserting the
following:
``(a) In General.--The basis of property'',
(2) by striking ``The cost of real property'' and inserting
the following:
``(b) Special Rule for Apportioned Real Estate Taxes.--The cost of
real property'', and
(3) by adding at the end the following new subsection:
``(c) Determinations by Account.--
``(1) In general.--In the case of the sale, exchange, or
other disposition of a specified security on or after the
applicable date, the conventions prescribed by regulations
under this section shall be applied on an account by account
basis.
``(2) Application to open-end funds.--
``(A) In general.--Except as provided in
subparagraph (B), any stock in an open-end fund
acquired before January 1, 2009, shall be treated as a
separate account from any such stock acquired on or
after such date.
``(B) Election by open-end fund for treatment as
single account.--If an open-end fund elects (at such
time and in such form and manner as the Secretary may
prescribe) to have this subparagraph apply with respect
to one or more of its stockholders--
``(i) subparagraph (A) shall not apply with
respect to any stock in such fund held by such
stockholders, and
``(ii) all stock in such fund which is held
by such stockholders shall be treated as
covered securities described in section
6045(g)(3) without regard to the date of the
acquisition of such stock.
A rule similar to the rule of the preceding sentence
shall apply with respect to a broker holding stock in
an open-end fund as a nominee.
``(3) Definitions.--For purposes of this section, the terms
`specified security', `applicable date', and `open-end fund'
shall have the meaning given such terms in section 6045(g).''.
(c) Information by Transferors To Aid Brokers.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6045 the
following new section:
``SEC. 6045A. INFORMATION REQUIRED IN CONNECTION WITH TRANSFERS OF
COVERED SECURITIES TO BROKERS.
``(a) Furnishing of Information.--Every applicable person which
transfers to a broker (as defined in section 6045(c)(1)) a security
which is a covered security (as defined in section 6045(g)(3)) in the
hands of such applicable person shall furnish to such broker a written
statement in such manner and setting forth such information as the
Secretary may by regulations prescribe for purposes of enabling such
broker to meet the requirements of section 6045(g).
``(b) Applicable Person.--For purposes of subsection (a), the term
`applicable person' means--
``(1) any broker (as defined in section 6045(c)(1)), and
``(2) any other person as provided by the Secretary in
regulations.
``(c) Time for Furnishing Statement.--Any statement required by
subsection (a) shall be furnished not later than the earlier of--
``(1) 45 days after the date of the transfer described in
subsection (a), or
``(2) January 15 of the year following the calendar year
during which such transfer occurred.''.
(2) Assessable penalties.--Paragraph (2) of section 6724(d)
(defining payee statement) is amended by redesignating
subparagraphs (I) through (CC) as subparagraphs (J) through
(DD), respectively, and by inserting after subparagraph (H) the
following new subparagraph:
``(I) section 6045A (relating to information
required in connection with transfers of covered
securities to brokers).''.
(3) Clerical amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6045 the following
new item:
``Sec. 6045A. Information required in connection with transfers of
covered securities to brokers.''.
(d) Additional Issuer Information to Aid Brokers.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986, as amended by
subsection (b), is amended by inserting after section 6045A the
following new section:
``SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING BASIS OF SPECIFIED
SECURITIES.
``(a) In General.--According to the forms or regulations prescribed
by the Secretary, any issuer of a specified security shall make a
return setting forth--
``(1) a description of any organizational action which
affects the basis of such specified security of such issuer,
``(2) the quantitative effect on the basis of such
specified security resulting from such action, and
``(3) such other information as the Secretary may
prescribe.
``(b) Time for Filing Return.--Any return required by subsection
(a) shall be filed not later than the earlier of--
``(1) 45 days after the date of the action described in
subsection (a), or
``(2) January 15 of the year following the calendar year
during which such action occurred.
``(c) Statements To Be Furnished to Holders of Specified Securities
or Their Nominees.--According to the forms or regulations prescribed by
the Secretary, every person required to make a return under subsection
(a) with respect to a specified security shall furnish to the nominee
with respect to the specified security (or certificate holder if there
is no nominee) a written statement showing--
``(1) the name, address, and phone number of the
information contact of the person required to make such return,
``(2) the information required to be shown on such return
with respect to such security, and
``(3) such other information as the Secretary may
prescribe.
The written statement required under the preceding sentence shall be
furnished to the holder on or before January 15 of the year following
the calendar year during which the action described in subsection (a)
occurred.
``(d) Specified Security.--For purposes of this section, the term
`specified security' has the meaning given such term by section
6045(g)(3)(B). No return shall be required under this section with
respect to actions described in subsection (a) with respect to a
specified security which occur before the applicable date (as defined
in section 6045(g)(3)(C)) with respect to such security.
``(e) Public Reporting in Lieu of Return.--The Secretary may waive
the requirements under subsections (a) and (c) with respect to a
specified security, if the person required to make the return under
subsection (a) makes publicly available, in such form and manner as the
Secretary determines necessary to carry out the purposes of this
section--
``(1) the name, address, phone number, and email address of
the information contact of such person, and
``(2) the information described in paragraphs (1), (2), and
(3) of subsection (a).''.
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1) of such
Code (defining information return) is amended by
redesignating clauses (iv) through (xix) as clauses (v)
through (xx), respectively, and by inserting after
clause (iii) the following new clause:
``(iv) section 6045B(a) (relating to
returns relating to actions affecting basis of
specified securities),''.
(B) Paragraph (2) of section 6724(d) of such Code
(defining payee statement), as amended by subsection
(c)(2), is amended by redesignating subparagraphs (J)
through (DD) as subparagraphs (K) through (EE),
respectively, and by inserting after subparagraph (I)
the following new subparagraph:
``(J) subsections (c) and (e) of section 6045B
(relating to returns relating to actions affecting
basis of specified securities).''.
(3) Clerical amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 of such Code, as
amended by subsection (b)(3), is amended by inserting after the
item relating to section 6045A the following new item:
``Sec. 6045B. Returns relating to actions affecting basis of specified
securities.''.
(e) Effective Date.--The amendments made by this section shall take
effect on January 1, 2009.
(f) Study Regarding Information Returns.--
(1) In general.--The Secretary of the Treasury shall study
the effect and feasibility of delaying the date for furnishing
statements under sections 6042(c), 6045, 6049(c)(2)(A), and
6050N(b) of the Internal Revenue Code of 1986 until February 15
following the year to which such statements relate.
(2) Report.--Not later than 6 months after the date of the
enactment of this Act, the Secretary of the Treasury shall
report to Congress on the results of the study conducted under
paragraph (1). Such report shall include the Secretary's
findings regarding--
(A) the effect on tax administration of such delay,
and
(B) other administrative or legislative options to
improve compliance and ease burdens on taxpayers and
brokers with respect to such statements.
SEC. 1565. EXTENSION OF ADDITIONAL 0.2 PERCENT FUTA SURTAX.
(a) In General.--Section 3301 (relating to rate of tax) is
amended--
(1) by striking ``2007'' in paragraph (1) and inserting
``2008'', and
(2) by striking ``2008'' in paragraph (2) and inserting
``2009''.
(b) Effective Date.--The amendments made by this section shall
apply to wages paid after December 31, 2007.
SEC. 1566. TERMINATION OF TREATMENT OF NATURAL GAS DISTRIBUTION LINES
AS 15-YEAR PROPERTY.
(a) In General.--Section 168(e)(3)(E)(viii) of the Internal Revenue
Code of 1986 is amended by striking ``January 1, 2011'' and inserting
``December 4, 2007''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to property placed in service after December 3, 2007.
(2) Exception.--The amendments made by this section shall
not apply to any property with respect to which the taxpayer or
a related party has entered into a binding contract for the
construction thereof on or before December 3, 2007, or, in the
case of self-constructed property, has started construction on
or before such date.
SEC. 1567. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under subparagraph (B) of section 401(1) of the Tax
Increase Prevention and Reconciliation Act of 2005 in effect on the
date of the enactment of this Act is increased by 6.25 percentage
points.
SEC. 1568. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP
RETURNS.
(a) Extension of Time Limitation.--Section 6698(a) (relating to
failure to file partnership returns) is amended by striking ``5
months'' and inserting ``12 months''.
(b) Increase in Penalty Amount.--Paragraph (1) of section 6698(b)
is amended by striking ``$50'' and inserting ``$80''.
(c) Effective Date.--The amendments made by this section shall
apply to returns required to be filed after the date of the enactment
of this Act.
Subtitle F--Secure Rural Schools
SEC. 1571. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION
PROGRAM.
(a) Reauthorization of the Secure Rural Schools and Community Self-
Determination Act of 2000.--The Secure Rural Schools and Community
Self-Determination Act of 2000 (16 U.S.C. 500 note; Public Law 106-393)
is amended by striking sections 1 through 403 and inserting the
following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Secure Rural Schools and Community
Self-Determination Act of 2000'.
``SEC. 2. PURPOSES.
``The purposes of this Act are--
``(1) to stabilize and transition payments to counties to
provide funding for schools and roads that supplements other
available funds;
``(2) to make additional investments in, and create
additional employment opportunities through, projects that--
``(A)(i) improve the maintenance of existing
infrastructure;
``(ii) implement stewardship objectives that
enhance forest ecosystems; and
``(iii) restore and improve land health and water
quality;
``(B) enjoy broad-based support; and
``(C) have objectives that may include--
``(i) road, trail, and infrastructure
maintenance or obliteration;
``(ii) soil productivity improvement;
``(iii) improvements in forest ecosystem
health;
``(iv) watershed restoration and
maintenance;
``(v) the restoration, maintenance, and
improvement of wildlife and fish habitat;
``(vi) the control of noxious and exotic
weeds; and
``(vii) the reestablishment of native
species; and
``(3) to improve cooperative relationships among--
``(A) the people that use and care for Federal
land; and
``(B) the agencies that manage the Federal land.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Adjusted share.--The term `adjusted share' means the
number equal to the quotient obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the base share for the eligible
county; by
``(ii) the income adjustment for the
eligible county; by
``(B) the number equal to the sum of the quotients
obtained under subparagraph (A) and paragraph (8)(A)
for all eligible counties.
``(2) Base share.--The term `base share' means the number
equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land
described in paragraph (7)(A) in each eligible
county; by
``(ii) the total number acres of Federal
land in all eligible counties in all eligible
States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of
the 3 highest 25-percent payments and safety
net payments made to each eligible State for
each eligible county during the eligibility
period; by
``(ii) the amount equal to the sum of the
amounts calculated under clause (i) and
paragraph (9)(B)(i) for all eligible counties
in all eligible States during the eligibility
period.
``(3) County payment.--The term `county payment' means the
payment for an eligible county calculated under section 101(b).
``(4) Eligible county.--The term `eligible county' means
any county that--
``(A) contains Federal land (as defined in
paragraph (7)); and
``(B) elects to receive a share of the State
payment or the county payment under section 102(b).
``(5) Eligibility period.--The term `eligibility period'
means fiscal year 1986 through fiscal year 1999.
``(6) Eligible state.--The term `eligible State' means a
State or territory of the United States that received a 25-
percent payment for 1 or more fiscal years of the eligibility
period.
``(7) Federal land.--The term `Federal land' means--
``(A) land within the National Forest System, as
defined in section 11(a) of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C.
1609(a)) exclusive of the National Grasslands and land
utilization projects designated as National Grasslands
administered pursuant to the Act of July 22, 1937 (7
U.S.C. 1010-1012); and
``(B) such portions of the revested Oregon and
California Railroad and reconveyed Coos Bay Wagon Road
grant land as are or may hereafter come under the
jurisdiction of the Department of the Interior, which
have heretofore or may hereafter be classified as
timberlands, and power-site land valuable for timber,
that shall be managed, except as provided in the former
section 3 of the Act of August 28, 1937 (50 Stat. 875;
43 U.S.C. 1181c), for permanent forest production.
``(8) 50-Percent adjusted share.--The term `50-percent
adjusted share' means the number equal to the quotient obtained
by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the 50-percent base share for the
eligible county; by
``(ii) the income adjustment for the
eligible county; by
``(B) the number equal to the sum of the quotients
obtained under subparagraph (A) and paragraph (1)(A)
for all eligible counties.
``(9) 50-Percent base share.--The term `50-percent base
share' means the number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land
described in paragraph (7)(B) in each eligible
county; by
``(ii) the total number acres of Federal
land in all eligible counties in all eligible
States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of
the 3 highest 50-percent payments made to each
eligible county during the eligibility period;
by
``(ii) the amount equal to the sum of the
amounts calculated under clause (i) and
paragraph (2)(B)(i) for all eligible counties
in all eligible States during the eligibility
period.
``(10) 50-percent payment.--The term `50-percent payment'
means the payment that is the sum of the 50-percent share
otherwise paid to a county pursuant to title II of the Act of
August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f),
and the payment made to a county pursuant to the Act of May 24,
1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
``(11) Full funding amount.--The term `full funding amount'
means--
``(A) $500,000,000 for fiscal year 2008; and
``(B) for fiscal year 2009 and each fiscal year
thereafter, the amount that is equal to 85 percent of
the full funding amount for the preceding fiscal year.
``(12) Income adjustment.--The term `income adjustment'
means the square of the quotient obtained by dividing--
``(A) the per capita personal income for each
eligible county; by
``(B) the median per capita personal income of all
eligible counties.
``(13) Per capita personal income.--The term `per capita
personal income' means the most recent per capita personal
income data, as determined by the Bureau of Economic Analysis.
``(14) Safety net payments.--The term `safety net payments'
means the special payment amounts paid to States and counties
required by section 13982 or 13983 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500
note; 43 U.S.C. 1181f note).
``(15) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture or the designee
of the Secretary of Agriculture with respect to the
Federal land described in paragraph (7)(A); and
``(B) the Secretary of the Interior or the designee
of the Secretary of the Interior with respect to the
Federal land described in paragraph (7)(B).
``(16) State payment.--The term `State payment' means the
payment for an eligible State calculated under section 101(a).
``(17) 25-Percent payment.--The term `25-percent payment'
means the payment to States required by the sixth paragraph
under the heading of `FOREST SERVICE' in the Act of May 23,
1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act
of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL
LAND
``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL LAND.
``(a) State Payment.--For each of fiscal years 2008 through 2011,
the Secretary of Agriculture shall calculate for each eligible State an
amount equal to the sum of the products obtained by multiplying--
``(1) the adjusted share for each eligible county within
the eligible State; by
``(2) the full funding amount for the fiscal year.
``(b) County Payment.--For each of fiscal years 2008 through 2011,
the Secretary of the Interior shall calculate for each eligible county
that received a 50-percent payment during the eligibility period an
amount equal to the product obtained by multiplying--
``(1) the 50-percent adjusted share for the eligible
county; by
``(2) the full funding amount for the fiscal year.
``SEC. 102. PAYMENTS TO STATES AND COUNTIES.
``(a) Payment Amounts.--Except as provided in section 103, the
Secretary of the Treasury shall pay to--
``(1) a State or territory of the United States an amount
equal to the sum of the amounts elected under subsection (b) by
each county within the State or territory for--
``(A) if the county is eligible for the 25-percent
payment, the share of the 25-percent payment; or
``(B) the share of the State payment of the
eligible county; and
``(2) a county an amount equal to the amount elected under
subsection (b) by each county for--
``(A) if the county is eligible for the 50-percent
payment, the 50-percent payment; or
``(B) the county payment for the eligible county.
``(b) Election To Receive Payment Amount.--
``(1) Election; submission of results.--
``(A) In general.--The election to receive a share
of the State payment, the county payment, a share of
the State payment and the county payment, a share of
the 25-percent payment, the 50-percent payment, or a
share of the 25-percent payment and the 50-percent
payment, as applicable, shall be made at the discretion
of each affected county by August 1, 2008, and August 1
of each second fiscal year thereafter, in accordance
with paragraph (2), and transmitted to the Secretary
concerned by the Governor of each eligible State.
``(B) Failure to transmit.--If an election for an
affected county is not transmitted to the Secretary
concerned by the date specified under subparagraph (A),
the affected county shall be considered to have elected
to receive a share of the State payment, the county
payment, or a share of the State payment and the county
payment, as applicable.
``(2) Duration of election.--
``(A) In general.--A county election to receive a
share of the 25-percent payment or 50-percent payment,
as applicable, shall be effective for 2 fiscal years.
``(B) Full funding amount.--If a county elects to
receive a share of the State payment or the county
payment, the election shall be effective for all
subsequent fiscal years through fiscal year 2011.
``(3) Source of payment amounts.--The payment to an
eligible State or eligible county under this section for a
fiscal year shall be derived from--
``(A) any revenues, fees, penalties, or
miscellaneous receipts, exclusive of deposits to any
relevant trust fund, special account, or permanent
operating funds, received by the Federal Government
from activities by the Bureau of Land Management or the
Forest Service on the applicable Federal land; and
``(B) to the extent of any shortfall, out of any
amounts in the Treasury of the United States not
otherwise appropriated.
``(c) Distribution and Expenditure of Payments.--
``(1) Distribution method.--A State that receives a payment
under subsection (a) for Federal land described in section
3(7)(A) shall distribute the appropriate payment amount among
the appropriate counties in the State in accordance with--
``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
``(B) section 13 of the Act of March 1, 1911 (36
Stat. 963; 16 U.S.C. 500).
``(2) Expenditure purposes.--Subject to subsection (d),
payments received by a State under subsection (a) and
distributed to counties in accordance with paragraph (1) shall
be expended as required by the laws referred to in paragraph
(1).
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) Use of portion in same manner as 25-percent
payment or 50-percent payment, as applicable.--Except
as provided in paragraph (3)(B), if an eligible county
elects to receive its share of the State payment or the
county payment, not less than 80 percent, but not more
than 85 percent, of the funds shall be expended in the
same manner in which the 25-percent payments or 50-
percent payment, as applicable, are required to be
expended.
``(B) Election as to use of balance.--Except as
provided in subparagraph (C), an eligible county shall
elect to do 1 or more of the following with the balance
of any funds not expended pursuant to subparagraph (A):
``(i) Reserve any portion of the balance
for projects in accordance with title II.
``(ii) Reserve not more than 7 percent of
the total share for the eligible county of the
State payment or the county payment for
projects in accordance with title III.
``(iii) Return the portion of the balance
not reserved under clauses (i) and (ii) to the
Treasury of the United States.
``(C) Counties with modest distributions.--In the
case of each eligible county to which more than
$100,000, but less than $350,000, is distributed for
any fiscal year pursuant to either or both of
paragraphs (1)(B) and (2)(B) of subsection (a), the
eligible county, with respect to the balance of any
funds not expended pursuant to subparagraph (A) for
that fiscal year, shall--
``(i) reserve any portion of the balance
for--
``(I) carrying out projects under
title II;
``(II) carrying out projects under
title III; or
``(III) a combination of the
purposes described in subclauses (I)
and (II); or
``(ii) return the portion of the balance
not reserved under clause (i) to the Treasury
of the United States.
``(2) Distribution of funds.--
``(A) In general.--Funds reserved by an eligible
county under subparagraph (B)(i) or (C)(i) of paragraph
(1) for carrying out projects under title II shall be
deposited in a special account in the Treasury of the
United States.
``(B) Availability.--Amounts deposited under
subparagraph (A) shall--
``(i) be available for expenditure by the
Secretary concerned, without further
appropriation; and
``(ii) remain available until expended in
accordance with title II.
``(3) Election.--
``(A) Notification.--
``(i) In general.--An eligible county shall
notify the Secretary concerned of an election
by the eligible county under this subsection
not later than September 30 of each fiscal
year.
``(ii) Failure to elect.--Except as
provided in subparagraph (B), if the eligible
county fails to make an election by the date
specified in clause (i), the eligible county
shall--
``(I) be considered to have elected
to expend 85 percent of the funds in
accordance with paragraph (1)(A); and
``(II) return the balance to the
Treasury of the United States.
``(B) Counties with minor distributions.--In the
case of each eligible county to which less than
$100,000 is distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B) of
subsection (a), the eligible county may elect to expend
all the funds in the same manner in which the 25-
percent payments or 50-percent payments, as applicable,
are required to be expended.
``(e) Time for Payment.--The payments required under this section
for a fiscal year shall be made as soon as practicable after the end of
that fiscal year.
``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA, OREGON,
AND WASHINGTON.
``(a) Definitions.--In this section:
``(1) Adjusted amount.--The term `adjusted amount' means,
with respect to a covered State--
``(A) for fiscal year 2008, 90 percent of--
``(i) the sum of the amounts paid for
fiscal year 2006 under section 102(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the covered State that have elected
under section 102(b) to receive a share of the
State payment for fiscal year 2008; and
``(ii) the sum of the amounts paid for
fiscal year 2006 under section 103(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the State of Oregon that have
elected under section 102(b) to receive the
county payment for fiscal year 2008;
``(B) for fiscal year 2009, 76 percent of--
``(i) the sum of the amounts paid for
fiscal year 2006 under section 102(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the covered State that have elected
under section 102(b) to receive a share of the
State payment for fiscal year 2009; and
``(ii) the sum of the amounts paid for
fiscal year 2006 under section 103(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the State of Oregon that have
elected under section 102(b) to receive the
county payment for fiscal year 2009; and
``(C) for fiscal year 2010, 65 percent of--
``(i) the sum of the amounts paid for
fiscal year 2006 under section 102(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the covered State that have elected
under section 102(b) to receive a share of the
State payment for fiscal year 2010; and
``(ii) the sum of the amounts paid for
fiscal year 2006 under section 103(a)(2) (as in
effect on September 29, 2006) for the eligible
counties in the State of Oregon that have
elected under section 102(b) to receive the
county payment for fiscal year 2010.
``(2) Covered state.--The term `covered State' means each
of the States of California, Oregon, and Washington.
``(b) Transition Payments.--For each of fiscal years 2008 through
2010, in lieu of the payment amounts that otherwise would have been
made under paragraphs (1)(B) and (2)(B) of section 102(a), the
Secretary of the Treasury shall pay the adjusted amount to each covered
State and the eligible counties within the covered State, as
applicable.
``(c) Distribution of Adjusted Amount in Oregon and Washington.--It
is the intent of Congress that the method of distributing the payments
under subsection (b) among the counties in the States of Oregon and
Washington for each of fiscal years 2008 through 2010 be in the same
proportion that the payments were distributed to the eligible counties
in fiscal year 2006.
``(d) Distribution of Payments in California.--The following
payments shall be distributed among the eligible counties in the State
of California in the same proportion that payments under section
102(a)(2) (as in effect on September 29, 2006) were distributed to the
eligible counties for fiscal year 2006:
``(1) Payments to the State of California under subsection
(b).
``(2) The shares of the eligible counties of the State
payment for California under section 102 for fiscal year 2011.
``(e) Treatment of Payments.--For purposes of this Act, any payment
made under subsection (b) shall be considered to be a payment made
under section 102(a).
``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND
``SEC. 201. DEFINITIONS.
``In this title:
``(1) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received under
section 102 in accordance with this title.
``(2) Project funds.--The term `project funds' means all
funds an eligible county elects under section 102(d) to reserve
for expenditure in accordance with this title.
``(3) Resource advisory committee.--The term `resource
advisory committee' means--
``(A) an advisory committee established by the
Secretary concerned under section 205; or
``(B) an advisory committee determined by the
Secretary concerned to meet the requirements of section
205.
``(4) Resource management plan.--The term `resource
management plan' means--
``(A) a land use plan prepared by the Bureau of
Land Management for units of the Federal land described
in section 3(7)(B) pursuant to section 202 of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1712); or
``(B) a land and resource management plan prepared
by the Forest Service for units of the National Forest
System pursuant to section 6 of the Forest and
Rangeland Renewable Resources Planning Act of 1974l (16
U.S.C. 1604).
``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.
``(a) Limitation.--Project funds shall be expended solely on
projects that meet the requirements of this title.
``(b) Authorized Uses.--Project funds may be used by the Secretary
concerned for the purpose of entering into and implementing cooperative
agreements with willing Federal agencies, State and local governments,
private and nonprofit entities, and landowners for protection,
restoration, and enhancement of fish and wildlife habitat, and other
resource objectives consistent with the purposes of this Act on Federal
land and on non-Federal land where projects would benefit the resources
on Federal land.
``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.
``(a) Submission of Project Proposals to Secretary Concerned.--
``(1) Projects funded using project funds.--Not later than
September 30 for fiscal year 2008, and each September 30
thereafter for each succeeding fiscal year through fiscal year
2011, each resource advisory committee shall submit to the
Secretary concerned a description of any projects that the
resource advisory committee proposes the Secretary undertake
using any project funds reserved by eligible counties in the
area in which the resource advisory committee has geographic
jurisdiction.
``(2) Projects funded using other funds.--A resource
advisory committee may submit to the Secretary concerned a
description of any projects that the committee proposes the
Secretary undertake using funds from State or local
governments, or from the private sector, other than project
funds and funds appropriated and otherwise available to do
similar work.
``(3) Joint projects.--Participating counties or other
persons may propose to pool project funds or other funds,
described in paragraph (2), and jointly propose a project or
group of projects to a resource advisory committee established
under section 205.
``(b) Required Description of Projects.--In submitting proposed
projects to the Secretary concerned under subsection (a), a resource
advisory committee shall include in the description of each proposed
project the following information:
``(1) The purpose of the project and a description of how
the project will meet the purposes of this title.
``(2) The anticipated duration of the project.
``(3) The anticipated cost of the project.
``(4) The proposed source of funding for the project,
whether project funds or other funds.
``(5)(A) Expected outcomes, including how the project will
meet or exceed desired ecological conditions, maintenance
objectives, or stewardship objectives.
``(B) An estimate of the amount of any timber, forage, and
other commodities and other economic activity, including jobs
generated, if any, anticipated as part of the project.
``(6) A detailed monitoring plan, including funding needs
and sources, that--
``(A) tracks and identifies the positive or
negative impacts of the project, implementation, and
provides for validation monitoring; and
``(B) includes an assessment of the following:
``(i) Whether or not the project met or
exceeded desired ecological conditions; created
local employment or training opportunities,
including summer youth jobs programs such as
the Youth Conservation Corps where appropriate.
``(ii) Whether the project improved the use
of, or added value to, any products removed
from land consistent with the purposes of this
title.
``(7) An assessment that the project is to be in the public
interest.
``(c) Authorized Projects.--Projects proposed under subsection (a)
shall be consistent with section 2.
``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.
``(a) Conditions for Approval of Proposed Project.--The Secretary
concerned may make a decision to approve a project submitted by a
resource advisory committee under section 203 only if the proposed
project satisfies each of the following conditions:
``(1) The project complies with all applicable Federal laws
(including regulations).
``(2) The project is consistent with the applicable
resource management plan and with any watershed or subsequent
plan developed pursuant to the resource management plan and
approved by the Secretary concerned.
``(3) The project has been approved by the resource
advisory committee in accordance with section 205, including
the procedures issued under subsection (e) of that section.
``(4) A project description has been submitted by the
resource advisory committee to the Secretary concerned in
accordance with section 203.
``(5) The project will improve the maintenance of existing
infrastructure, implement stewardship objectives that enhance
forest ecosystems, and restore and improve land health and
water quality.
``(b) Environmental Reviews.--
``(1) Request for payment by county.--The Secretary
concerned may request the resource advisory committee
submitting a proposed project to agree to the use of project
funds to pay for any environmental review, consultation, or
compliance with applicable environmental laws required in
connection with the project.
``(2) Conduct of environmental review.--If a payment is
requested under paragraph (1) and the resource advisory
committee agrees to the expenditure of funds for this purpose,
the Secretary concerned shall conduct environmental review,
consultation, or other compliance responsibilities in
accordance with Federal laws (including regulations).
``(3) Effect of refusal to pay.--
``(A) In general.--If a resource advisory committee
does not agree to the expenditure of funds under
paragraph (1), the project shall be deemed withdrawn
from further consideration by the Secretary concerned
pursuant to this title.
``(B) Effect of withdrawal.--A withdrawal under
subparagraph (A) shall be deemed to be a rejection of
the project for purposes of section 207(c).
``(c) Decisions of Secretary Concerned.--
``(1) Rejection of projects.--
``(A) In general.--A decision by the Secretary
concerned to reject a proposed project shall be at the
sole discretion of the Secretary concerned.
``(B) No administrative appeal or judicial
review.--Notwithstanding any other provision of law, a
decision by the Secretary concerned to reject a
proposed project shall not be subject to administrative
appeal or judicial review.
``(C) Notice of rejection.--Not later than 30 days
after the date on which the Secretary concerned makes
the rejection decision, the Secretary concerned shall
notify in writing the resource advisory committee that
submitted the proposed project of the rejection and the
reasons for rejection.
``(2) Notice of project approval.--The Secretary concerned
shall publish in the Federal Register notice of each project
approved under subsection (a) if the notice would be required
had the project originated with the Secretary.
``(d) Source and Conduct of Project.--Once the Secretary concerned
accepts a project for review under section 203, the acceptance shall be
deemed a Federal action for all purposes.
``(e) Implementation of Approved Projects.--
``(1) Cooperation.--Notwithstanding chapter 63 of title 31,
United States Code, using project funds the Secretary concerned
may enter into contracts, grants, and cooperative agreements
with States and local governments, private and nonprofit
entities, and landowners and other persons to assist the
Secretary in carrying out an approved project.
``(2) Best value contracting.--
``(A) In general.--For any project involving a
contract authorized by paragraph (1) the Secretary
concerned may elect a source for performance of the
contract on a best value basis.
``(B) Factors.--The Secretary concerned shall
determine best value based on such factors as--
``(i) the technical demands and complexity
of the work to be done;
``(ii)(I) the ecological objectives of the
project; and
``(II) the sensitivity of the resources
being treated;
``(iii) the past experience by the
contractor with the type of work being done,
using the type of equipment proposed for the
project, and meeting or exceeding desired
ecological conditions; and
``(iv) the commitment of the contractor to
hiring highly qualified workers and local
residents.
``(3) Merchantable timber contracting pilot program.--
``(A) Establishment.--The Secretary concerned shall
establish a pilot program to implement a certain
percentage of approved projects involving the sale of
merchantable timber using separate contracts for--
``(i) the harvesting or collection of
merchantable timber; and
``(ii) the sale of the timber.
``(B) Annual percentages.--Under the pilot program,
the Secretary concerned shall ensure that, on a
nationwide basis, not less than the following
percentage of all approved projects involving the sale
of merchantable timber are implemented using separate
contracts:
``(i) For fiscal year 2008, 35 percent.
``(ii) For fiscal year 2009, 45 percent.
``(iii) For each of fiscal years 2010 and
2011, 50 percent.
``(C) Inclusion in pilot program.--The decision
whether to use separate contracts to implement a
project involving the sale of merchantable timber shall
be made by the Secretary concerned after the approval
of the project under this title.
``(D) Assistance.--
``(i) In general.--The Secretary concerned
may use funds from any appropriated account
available to the Secretary for the Federal land
to assist in the administration of projects
conducted under the pilot program.
``(ii) Maximum amount of assistance.--The
total amount obligated under this subparagraph
may not exceed $1,000,000 for any fiscal year
during which the pilot program is in effect.
``(E) Review and report.--
``(i) Initial report.--Not later than
September 30, 2010, the Comptroller General
shall submit to the Committees on Agriculture,
Nutrition, and Forestry and Energy and Natural
Resources of the Senate and the Committees on
Agriculture and Natural Resources of the House
of Representatives a report assessing the pilot
program.
``(ii) Annual report.--The Secretary
concerned shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy
and Natural Resources of the Senate and the
Committees on Agriculture and Natural Resources
of the House of Representatives an annual
report describing the results of the pilot
program.
``(f) Requirements for Project Funds.--The Secretary shall ensure
that at least 50 percent of all project funds be used for projects that
are primarily dedicated--
``(1) to road maintenance, decommissioning, or
obliteration; or
``(2) to restoration of streams and watersheds.
``SEC. 205. RESOURCE ADVISORY COMMITTEES.
``(a) Establishment and Purpose of Resource Advisory Committees.--
``(1) Establishment.--The Secretary concerned shall
establish and maintain resource advisory committees to perform
the duties in subsection (b), except as provided in paragraph
(4).
``(2) Purpose.--The purpose of a resource advisory
committee shall be--
``(A) to improve collaborative relationships; and
``(B) to provide advice and recommendations to the
land management agencies consistent with the purposes
of this title.
``(3) Access to resource advisory committees.--To ensure
that each unit of Federal land has access to a resource
advisory committee, and that there is sufficient interest in
participation on a committee to ensure that membership can be
balanced in terms of the points of view represented and the
functions to be performed, the Secretary concerned may,
establish resource advisory committees for part of, or 1 or
more, units of Federal land.
``(4) Existing advisory committees.--
``(A) In general.--An advisory committee that meets
the requirements of this section, a resource advisory
committee established before September 29, 2006, or an
advisory committee determined by the Secretary
concerned before September 29, 2006, to meet the
requirements of this section may be deemed by the
Secretary concerned to be a resource advisory committee
for the purposes of this title.
``(B) Charter.--A charter for a committee described
in subparagraph (A) that was filed on or before
September 29, 2006, shall be considered to be filed for
purposes of this Act.
``(C) Bureau of land management advisory
committees.--The Secretary of the Interior may deem a
resource advisory committee meeting the requirements of
subpart 1784 of part 1780 of title 43, Code of Federal
Regulations, as a resource advisory committee for the
purposes of this title.
``(b) Duties.--A resource advisory committee shall--
``(1) review projects proposed under this title by
participating counties and other persons;
``(2) propose projects and funding to the Secretary
concerned under section 203;
``(3) provide early and continuous coordination with
appropriate land management agency officials in recommending
projects consistent with purposes of this Act under this title;
``(4) provide frequent opportunities for citizens,
organizations, tribes, land management agencies, and other
interested parties to participate openly and meaningfully,
beginning at the early stages of the project development
process under this title;
``(5)(A) monitor projects that have been approved under
section 204; and
``(B) advise the designated Federal official on the
progress of the monitoring efforts under subparagraph (A); and
``(6) make recommendations to the Secretary concerned for
any appropriate changes or adjustments to the projects being
monitored by the resource advisory committee.
``(c) Appointment by the Secretary.--
``(1) Appointment and term.--
``(A) In general.--The Secretary concerned, shall
appoint the members of resource advisory committees for
a term of 4 years beginning on the date of appointment.
``(B) Reappointment.--The Secretary concerned may
reappoint members to subsequent 4-year terms.
``(2) Basic requirements.--The Secretary concerned shall
ensure that each resource advisory committee established meets
the requirements of subsection (d).
``(3) Initial appointment.--Not later than 180 days after
the date of the enactment of this Act, the Secretary concerned
shall make initial appointments to the resource advisory
committees.
``(4) Vacancies.--The Secretary concerned shall make
appointments to fill vacancies on any resource advisory
committee as soon as practicable after the vacancy has
occurred.
``(5) Compensation.--Members of the resource advisory
committees shall not receive any compensation.
``(d) Composition of Advisory Committee.--
``(1) Number.--Each resource advisory committee shall be
comprised of 15 members.
``(2) Community interests represented.--Committee members
shall be representative of the interests of the following 3
categories:
``(A) 5 persons that--
``(i) represent organized labor or non-
timber forest product harvester groups;
``(ii) represent developed outdoor
recreation, off highway vehicle users, or
commercial recreation activities;
``(iii) represent--
``(I) energy and mineral
development interests; or
``(II) commercial or recreational
fishing interests;
``(iv) represent the commercial timber
industry; or
``(v) hold Federal grazing or other land
use permits, or represent nonindustrial private
forest land owners, within the area for which
the committee is organized.
``(B) 5 persons that represent--
``(i) nationally recognized environmental
organizations;
``(ii) regionally or locally recognized
environmental organizations;
``(iii) dispersed recreational activities;
``(iv) archaeological and historical
interests; or
``(v) nationally or regionally recognized
wild horse and burro interest groups, wildlife
or hunting organizations, or watershed
associations.
``(C) 5 persons that--
``(i) hold State elected office (or a
designee);
``(ii) hold county or local elected office;
``(iii) represent American Indian tribes
within or adjacent to the area for which the
committee is organized;
``(iv) are school officials or teachers; or
``(v) represent the affected public at
large.
``(3) Balanced representation.--In appointing committee
members from the 3 categories in paragraph (2), the Secretary
concerned shall provide for balanced and broad representation
from within each category.
``(4) Geographic distribution.--The members of a resource
advisory committee shall reside within the State in which the
committee has jurisdiction and, to extent practicable, the
Secretary concerned shall ensure local representation in each
category in paragraph (2).
``(5) Chairperson.--A majority on each resource advisory
committee shall select the chairperson of the committee.
``(e) Approval Procedures.--
``(1) In general.--Subject to paragraph (3), each resource
advisory committee shall establish procedures for proposing
projects to the Secretary concerned under this title.
``(2) Quorum.--A quorum must be present to constitute an
official meeting of the committee.
``(3) Approval by majority of members.--A project may be
proposed by a resource advisory committee to the Secretary
concerned under section 203(a), if the project has been
approved by a majority of members of the committee from each of
the 3 categories in subsection (d)(2).
``(f) Other Committee Authorities and Requirements.--
``(1) Staff assistance.--A resource advisory committee may
submit to the Secretary concerned a request for periodic staff
assistance from Federal employees under the jurisdiction of the
Secretary.
``(2) Meetings.--All meetings of a resource advisory
committee shall be announced at least 1 week in advance in a
local newspaper of record and shall be open to the public.
``(3) Records.--A resource advisory committee shall
maintain records of the meetings of the committee and make the
records available for public inspection.
``SEC. 206. USE OF PROJECT FUNDS.
``(a) Agreement Regarding Schedule and Cost of Project.--
``(1) Agreement between parties.--The Secretary concerned
may carry out a project submitted by a resource advisory
committee under section 203(a) using project funds or other
funds described in section 203(a)(2), if, as soon as
practicable after the issuance of a decision document for the
project and the exhaustion of all administrative appeals and
judicial review of the project decision, the Secretary
concerned and the resource advisory committee enter into an
agreement addressing, at a minimum, the following:
``(A) The schedule for completing the project.
``(B) The total cost of the project, including the
level of agency overhead to be assessed against the
project.
``(C) For a multiyear project, the estimated cost
of the project for each of the fiscal years in which it
will be carried out.
``(D) The remedies for failure of the Secretary
concerned to comply with the terms of the agreement
consistent with current Federal law.
``(2) Limited use of federal funds.--The Secretary
concerned may decide, at the sole discretion of the Secretary
concerned, to cover the costs of a portion of an approved
project using Federal funds appropriated or otherwise available
to the Secretary for the same purposes as the project.
``(b) Transfer of Project Funds.--
``(1) Initial transfer required.--As soon as practicable
after the agreement is reached under subsection (a) with regard
to a project to be funded in whole or in part using project
funds, or other funds described in section 203(a)(2), the
Secretary concerned shall transfer to the applicable unit of
National Forest System land or Bureau of Land Management
District an amount of project funds equal to--
``(A) in the case of a project to be completed in a
single fiscal year, the total amount specified in the
agreement to be paid using project funds, or other
funds described in section 203(a)(2); or
``(B) in the case of a multiyear project, the
amount specified in the agreement to be paid using
project funds, or other funds described in section
203(a)(2) for the first fiscal year.
``(2) Condition on project commencement.--The unit of
National Forest System land or Bureau of Land Management
District concerned, shall not commence a project until the
project funds, or other funds described in section 203(a)(2)
required to be transferred under paragraph (1) for the project,
have been made available by the Secretary concerned.
``(3) Subsequent transfers for multiyear projects.--
``(A) In general.--For the second and subsequent
fiscal years of a multiyear project to be funded in
whole or in part using project funds, the unit of
National Forest System land or Bureau of Land
Management District concerned shall use the amount of
project funds required to continue the project in that
fiscal year according to the agreement entered into
under subsection (a).
``(B) Suspension of work.--The Secretary concerned
shall suspend work on the project if the project funds
required by the agreement in the second and subsequent
fiscal years are not available.
``SEC. 207. AVAILABILITY OF PROJECT FUNDS.
``(a) Submission of Proposed Projects to Obligate Funds.--By
September 30 of each fiscal year through fiscal year 2011, a resource
advisory committee shall submit to the Secretary concerned pursuant to
section 203(a)(1) a sufficient number of project proposals that, if
approved, would result in the obligation of at least the full amount of
the project funds reserved by the participating county in the preceding
fiscal year.
``(b) Use or Transfer of Unobligated Funds.--Subject to section
208, if a resource advisory committee fails to comply with subsection
(a) for a fiscal year, any project funds reserved by the participating
county in the preceding fiscal year and remaining unobligated shall be
available for use as part of the project submissions in the next fiscal
year.
``(c) Effect of Rejection of Projects.--Subject to section 208, any
project funds reserved by a participating county in the preceding
fiscal year that are unobligated at the end of a fiscal year because
the Secretary concerned has rejected one or more proposed projects
shall be available for use as part of the project submissions in the
next fiscal year.
``(d) Effect of Court Orders.--
``(1) In general.--If an approved project under this Act is
enjoined or prohibited by a Federal court, the Secretary
concerned shall return the unobligated project funds related to
the project to the participating county or counties that
reserved the funds.
``(2) Expenditure of funds.--The returned funds shall be
available for the county to expend in the same manner as the
funds reserved by the county under subparagraph (B) or (C)(i)
of section 102(d)(1).
``SEC. 208. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under this
title shall terminate on September 30, 2011.
``(b) Deposits in Treasury.--Any project funds not obligated by
September 30, 2012, shall be deposited in the Treasury of the United
States.
``TITLE III--COUNTY FUNDS
``SEC. 301. DEFINITIONS.
``In this title:
``(1) County funds.--The term `county funds' means all
funds an eligible county elects under section 102(d) to reserve
for expenditure in accordance with this title.
``(2) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received under
section 102 in accordance with this title.
``SEC. 302. USE.
``(a) Authorized Uses.--A participating county, including any
applicable agencies of the participating county, shall use county
funds, in accordance with this title, only--
``(1) to carry out activities under the Firewise
Communities program to provide to homeowners in fire-sensitive
ecosystems education on, and assistance with implementing,
techniques in home siting, home construction, and home
landscaping that can increase the protection of people and
property from wildfires;
``(2) to reimburse the participating county for search and
rescue and other emergency services, including firefighting,
that are--
``(A) performed on Federal land after the date on
which the use was approved under subsection (b);
``(B) paid for by the participating county; and
``(3) to develop community wildfire protection plans in
coordination with the appropriate Secretary concerned.
``(b) Proposals.--A participating county shall use county funds for
a use described in subsection (a) only after a 45-day public comment
period, at the beginning of which the participating county shall--
``(1) publish in any publications of local record a
proposal that describes the proposed use of the county funds;
and
``(2) submit the proposal to any resource advisory
committee established under section 205 for the participating
county.
``SEC. 303. CERTIFICATION.
``(a) In General.--Not later than February 1 of the year after the
year in which any county funds were expended by a participating county,
the appropriate official of the participating county shall submit to
the Secretary concerned a certification that the county funds expended
in the applicable year have been used for the uses authorized under
section 302(a), including a description of the amounts expended and the
uses for which the amounts were expended.
``(b) Review.--The Secretary concerned shall review the
certifications submitted under subsection (a) as the Secretary
concerned determines to be appropriate.
``SEC. 304. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under this
title terminates on September 30, 2011.
``(b) Availability.--Any county funds not obligated by September
30, 2012, shall be returned to the Treasury of the United States.
``TITLE IV--MISCELLANEOUS PROVISIONS
``SEC. 401. REGULATIONS.
``The Secretary of Agriculture and the Secretary of the Interior
shall issue regulations to carry out the purposes of this Act.
``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this Act for each of fiscal years 2008 through
2011.
``SEC. 403. TREATMENT OF FUNDS AND REVENUES.
``(a) Relation to Other Appropriations.--Funds made available under
section 402 and funds made available to a Secretary concerned under
section 206 shall be in addition to any other annual appropriations for
the Forest Service and the Bureau of Land Management.
``(b) Deposit of Revenues and Other Funds.--All revenues generated
from projects pursuant to title II, including any interest accrued from
the revenues, shall be deposited in the Treasury of the United
States.''.
(b) Forest Receipt Payments to Eligible States and Counties.--
(1) Act of may 23, 1908.--The sixth paragraph under the
heading ``FOREST SERVICE'' in the Act of May 23, 1908 (16
U.S.C. 500) is amended in the first sentence by striking
``twenty-five percentum'' and all that follows through ``shall
be paid'' and inserting the following: ``an amount equal to the
annual average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal years
from each national forest shall be paid''.
(2) Weeks law.--Section 13 of the Act of March 1, 1911
(commonly known as the ``Weeks Law'') (16 U.S.C. 500) is
amended in the first sentence by striking ``twenty-five
percentum'' and all that follows through ``shall be paid'' and
inserting the following: ``an amount equal to the annual
average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal years
from each national forest shall be paid''.
(c) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United States
Code, is amended to read as follows:
``Sec. 6906. Funding
``For fiscal year 2009--
``(1) each county or other eligible unit of local
government shall be entitled to payment under this chapter; and
``(2) sums shall be made available to the Secretary of the
Interior for obligation or expenditure in accordance with this
chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended by
striking the item relating to section 6906 and inserting the
following:
``6906. Funding.''.
(3) Budget scorekeeping.--
(A) In general.--Notwithstanding the Budget
Scorekeeping Guidelines and the accompanying list of
programs and accounts set forth in the joint
explanatory statement of the committee of conference
accompanying Conference Report 105-217, the amendment
made by paragraph (1) shall be treated in the baseline
for purposes of section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 907)
(as in effect before September 30, 2002), by the
Chairpersons of the Committee on the Budget of the
House of Representatives and the Committee on the
Budget of the Senate, as appropriate, for purposes of
budget enforcement in the House of Representatives and
the Senate, and under the Congressional Budget Act of
1974 (2 U.S.C. 601 et seq.) as if Payment in Lieu of
Taxes (14-1114-0-1-806) were an account designated as
Appropriated Entitlements and Mandatories for Fiscal
Year 1997 in the joint explanatory statement of the
committee of conference accompanying Conference Report
105-217.
(B) Effective date.--This paragraph shall--
(i) be effective beginning on the date of
enactment of this Act; and
(ii) remain in effect for any fiscal year
for which the entitlement in section 6906 of
title 31, United States Code (as amended by
paragraph (1)), applies.
In lieu of the matter proposed to be inserted by the
amendment of the Senate to the title of the bill, amend the
title so as to read: ``An Act to move the United States toward
greater energy independence and security, to increase the
production of clean renewable fuels, to protect consumers, to
increase the efficiency of products, buildings, and vehicles,
to promote research on and deploy greenhouse gas capture and
storage options, and to improve the energy performance of the
Federal Government, and for other purposes.''.
Attest:
Clerk.
110th CONGRESS
1st Session
H.R. 6
_______________________________________________________________________
HOUSE AMENDMENTS TO SENATE AMENDMENTS