[House Report 111-185]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-185
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2454) TO CREATE CLEAN
ENERGY JOBS, ACHIEVE ENERGY INDEPENDENCE, REDUCE GLOBAL WARMING
POLLUTION AND TRANSITION TO A CLEAN ENERGY ECONOMY
_______
June 26, 2009 (legislative day of June 25), 2009.--Referred to the
House Calendar and ordered to be printed
_______
Ms. Matsui, from the Committee on Rules, submitted the following
R E P O R T
[To accompany 587]
The Committee on Rules, having had under consideration
House Resolution 587, by a record vote of 7 to 3, report the
same to the House with the recommendation that the resolution
be adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 2454, the
``American Clean Energy and Security Act of 2009,'' under a
structured rule. The resolution provides three hours of debate
with 2 and one half hours to be equally divided and controlled
by the chair and ranking minority member of the Committee on
Energy and Commerce and 30 minutes to be equally divided and
controlled by the chair and ranking minority member of the
Committee on Ways and Means. The resolution waives all points
of order against consideration of the bill except for clauses 9
and 10 of rule XXI.
The resolution provides that, in lieu of the amendment
recommended by the Committee on Energy and Commerce now printed
in the bill, an amendment in the nature of a substitute
consisting of the text of H.R. 2998, modified by the amendment
printed in part A of this report, shall be considered as
adopted. The resolution waives all points of order against the
bill, as amended. This waiver does not affect the point of
order available under clause 9 of rule XXI (regarding earmark
disclosure). The resolution provides that the bill, as amended,
shall be considered as read.
The resolution makes in order the further amendment in the
nature of a substitute printed in part B of the report of the
Committee on Rules, if offered by Representative Forbes of
Virginia or his designee, which shall be in order without
intervention of any point of order except those arising under
clause 9 or 10 of rule XXI, shall be considered as read, and
shall be separately debatable for 30 minutes equally divided
and controlled by the proponent and an opponent. The resolution
provides one motion to recommit with or without instructions.
EXPLANATION OF WAIVERS
Although the rule waives all points of order against
consideration of the bill (except for clauses 9 and 10 of rule
XXI) and all points of order against the bill, as amended, the
Committee is not aware of any points of order. The waivers of
all points of order are prophylactic.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 157
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment in the nature of a substitute by Rep.
Boehner (OH), #40, which would strike all after the enacting
clause and insert the text of H.R. 2846, the ``American Energy
Act,'' as introduced in the 111th Congress.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 158
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion By: Mr. Dreier.
Summary of motion: To make in order en bloc the following
amendments by Rep. Barton (TX) to be separately debatable for
10 minutes each: #212, which would strike the cap and trade
title; allows for the construction of new coal and natural gas
plants with certain regulatory standards, #213, which would
direct the Administrator, in consultation with the Secretary of
Energy, to annually prepare and certify a report to Congress on
the average retail price of gasoline in the United States. If
the Administrator determines that the average retail price of
gasoline (all grades) sold to retail customers in the United
States during the prior year exceeds $5 per gallon, including
taxes (in 2009 dollars), as a result of implementation of this
Act, the provisions of this Act shall cease to be effective,
#214, which include nuclear energy as a qualifying RES source,
and #215, which would include carbon-based fuel with carbon
sequestration or conversion as a qualifying RES source.
Results: Defeated 3-7.
Vote by Member: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 159
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion By: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Kucinich (OH), #165, which
would reduce emission allowances by a third each year.
Results: Defeated 3-7.
Vote by Member: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 160
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. DeFazio (OR), Rep. Kucinich
(OH), and Rep. Stark (CA), #174, which would strike the EPA's
authority to list a greenhouse gas as an air pollutant under
section 108 of the Clean Air Act.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 161
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Maffei (NY), #139, which would
provide that hydropower, other than that defined in the bill as
qualified hydropower, shall receive a credit worth 50% towards
the renewable electricity standard.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 162
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Richardson (CA), #70, which
would establish a competitive grant program to fund clean and
energy-efficient transportation vehicles and technology at
seaports.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 163
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order en bloc the following
amendments by Rep. Goodlatte (VA) to be separately debatable
for 10 minutes each: #157, which would allow the President to
suspend the Global Warming Pollution Reduction program in the
event of any national emergency or national disaster; Rep.
Goodlatte (VA), #158, which would allow a governor of any State
or an electricity provider in any State to petition the
Commission to waive, in whole or in part, the renewable
electric standard if a State does not have the renewable energy
resources to meet the mandate; and Rep. Goodlatte (VA), #177,
which would state that the administrator may only approve
higher ethanol blends, higher than 10%, in gasoline if the
administrator can certify that higher ethanol additives will
not contribute to failure of emission control devices in 80% of
vehicles inventory.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 164
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Kline, John (MN), #20, which
would expand eligibility under the Green Jobs Act to provide
that jobseekers and job-training partners are not excluded for
not being union affiliated.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 165
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Fallin (OK), #181, which would
exclude all businesses with fewer than 100 employees from the
restrictions in H.R. 2454.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 166
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Reps. Camp (MI)/Herger (CA)/
Johnson, Sam (TX)/Brady, Kevin (TX)/Linder (GA)/Tiberi (OH)/
Brown-Waite (FL)/Davis, Geoff (KY)/Boustany (LA)/Roskam (IL),
#37, which would delay the implementation of the Safe Climate
Act portion of the bill until the Comptroller General of the
United States determines that the bill would not result in a
net increase in costs for American families with household
income less than $200,000 for single filers or $250,000 for
joint filers. The Comptroller General must make a determination
within 3 months of enactment
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 167
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Biggert (IL), #217, which
would strike national building codes and national labels for
buildings. It also would insert the text of H.R. 2336, the
``Green Act of 2009,'' and H.R. 2246, the ``Community Building
Code Administration Grant Act,'' into the bill.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 168
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Roe (TN), #106, which would
require the United States to reach agreement on greenhouse gas
reductions with China and India before implementing the
legislation.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 169
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Souder (IN), #203, which would
exclude small farmers with $100,000 in annual sales from any
regulation or standard in the bill.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 170
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment in the nature of a substitute by Rep.
Bishop, Rob (UT)/Price, Tom (GA), #18, which would strike all
after the enacting clause and insert provisions regarding tax
exempt financing for qualified renewable energy facilities,
repeal of federal purchasing requirements, renewable
technologies, innovation in technology, national grid
efficiency, regulatory burdens, judicial review regarding
energy projects, carbon capture and clean coal technology,
natural gas, conservation, production, and job creation.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 171
Date: June 26, 2009 (legislative day of June 25, 2009).
Measure: H.R. 2454.
Motion by: Mr. McGovern.
Summary of motion: To report the rule.
Results: Adopted 7-3.
Vote by Members: McGovern--Yea; Cardoza--Yea; Arcuri--Yea;
Perlmutter--Yea; Pingree--Yea; Polis--Yea; Dreier--Nay; Diaz-
Balart--Nay; Sessions--Nay; Slaughter--Yea.
SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED
1. Waxman (CA): The amendment would make changes to
accommodate States that utilize a central purchasing model for
its renewable electricity standard, and makes additional
changes. It would provide FERC with siting authority for the
construction of certain high-priority interstate transmission
lines constructed in the Western Interconnection. It also would
amend the National Interest Electric Transmission Corridors.
It would require the Agriculture Secretary to establish a
list of types of domestic agricultural and forestry practices
that result in reductions or avoidance of greenhouse gas
emissions. It exempts the agriculture and forestry sectors from
the bill's emission caps. It redefines ``biomass.'' It
grandfathers existing biodiesel plants to exempt them from
lifecycle analysis under the RFS. It would permit states to
convey allowances in a SEED account directly to renewable
energy generators. It would require the Agriculture Secretary
to establish a carbon incentives program to achieve
supplemental greenhouse gas emissions reductions on private
agricultural and forestland.
It would establish a Renewable Electricity Standard (RES)
for Federal agencies. It also would provide Federal agencies
with the authority to enter into renewable energy power
purchase agreements for up to 20 years. It would make natural
gas fueled vehicles eligible for clean vehicle incentives, the
vehicle integration program, and the manufacturing incentives
for alternatively fueled vehicles. It would limit the cost of a
permit for a license for the construction of a solar energy
system. It would provide that noncompliance with permit cost
requirements disqualifies the entity from Community Development
Block Grants.
It would authorize a national education and awareness
program for the purpose of informing building, facility, and
industrial plant owners and managers and decisionmakers,
government leaders, and industry leaders about the large
energy-saving potential of greater use of mechanical insulation
and other benefits. It would amend the definition of a
``cluster,'' as it applies to Energy Innovation Hubs. It would
ensure that virtual connections qualify when defining a
cluster.
It would amend the Retrofit for Energy and Environmental
Performance (REEP) program to provide that funds provided to
disaster victims through the Robert T. Stafford Disaster Relief
and Emergency Assistance Act may qualify as the building
owners' contribution toward the matching requirements of the
REEP program. It requires the Federal agencies administering
assistance to disaster victims through the Robert T. Stafford
Disaster Relief and Emergency Assistance Act shall provide
information to disaster victims on the REEP program. It would
provide 10 percent of funding under the REEP program for
retrofits of public and assisted housing.
It would create a Community Building Code Administration
Grant program, providing $100 million over five years in
competitive, matching grants for local building code
enforcement. It would limit the Building Energy Performance
Labeling Program in sec. 204 of the bill to new construction
only. It would provide incentives to lenders and financial
institutions to provide lower interest loans and other benefits
to consumers who build, buy, or remodel homes and businesses to
improve their energy efficiency. It would direct HUD to issue
rules to prohibit private covenants that restrict or prohibit
the installation of solar energy systems.
It would authorize the Energy Secretary to develop a
research program to study the factors affecting whether
consumers adopt energy conservation practices or make energy
efficiency improvements. It would require the Energy Secretary
to report to Congress on a study on the use of thorium-fueled
nuclear reactors for national energy needs, including a
response to the IAEA study entitled ``Thorium fuel cycle--
Potential benefits and challenges.''
It would establish a clean energy career training
clearinghouse to aid institutions with Federal resources,
expertise, information and points of contact in establishing
and maintaining quality training programs. It would add a
provision seeking to ensure that minority- owned and women-
owned businesses can benefit from grants aimed at stimulating
business development. It would require the Labor Secretary to
monitor the potential growth of impacted and displaced workers
to ensure that the necessary funding continues to support the
number of workers affected. It would express the sense of
Congress that the United States should work with the
International Civil Aviation Organization.
SUMMARY OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE IN PART B TO BE
MADE IN ORDER
1. Forbes (VA): Would strike everything and insert the text
of H.R. 513, the ``New Manhattan Project for Energy
Independence.'' (30 minutes)
PART A--TEXT OF THE AMENDMENT TO BE CONSIDERED AS ADOPTED
Page 14, strike lines 1 through 3 and insert:
``(7) Central procurement state.--The term `central
procurement State' means a State that, as of January 1,
2009, had adopted and implemented a legally enforceable
mandate that, in lieu of requiring utilities to submit
credits or certificates issued based on generation of
electricity from (or to purchase or generate
electricity from) resources defined by the State as
renewable, requires retail electric suppliers to
collect payments from electricity ratepayers within the
State that are used for central procurement, by a State
agency or a public benefit corporation established
pursuant to State law, of credits or certificates
issued based on generation of electricity from
resources defined by the State as renewable.
Page 15, beginning line 8, strike paragraph (11), relating to
the definition of high conservation priority land.
Page 16, line 5, strike ``1992'' and insert ``1988''.
Page 16, line 13, strike ``1992'' and insert ``1988''.
Page 19, beginning line 13, strike paragraph (16), relating
to the definition of renewable biomass, and insert the
following new paragraph:
``(16) Renewable biomass.--The term `renewable
biomass' means any of the following:
``(A) Materials, pre-commercial thinnings, or
removed invasive species from National Forest
System land and public lands (as defined in
section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)),
including those that are byproducts of
preventive treatments (such as trees, wood,
brush, thinnings, chips, and slash), that are
removed as part of a federally recognized
timber sale, or that are removed to reduce
hazardous fuels, to reduce or contain disease
or insect infestation, or to restore ecosystem
health, and that are--
``(i) not from components of the
National Wilderness Preservation
System, Wilderness Study Areas,
Inventoried Roadless Areas, old growth
stands, late-successional stands
(except for dead, severely damaged, or
badly infested trees), components of
the National Landscape Conservation
System, National Monuments, National
Conservation Areas, Designated
Primitive Areas, or Wild and Scenic
Rivers corridors;
``(ii) harvested in environmentally
sustainable quantities, as determined
by the appropriate Federal land
manager; and
``(iii) harvested in accordance with
Federal and State law, and applicable
land management plans.
``(B) Any organic matter that is available on
a renewable or recurring basis from non-Federal
land or land belonging to an Indian or Indian
tribe that is held in trust by the United
States or subject to a restriction against
alienation imposed by the United States,
including--
``(i) renewable plant material,
including--
``(I) feed grains;
``(II) other agricultural
commodities;
``(III) other plants and
trees; and
``(IV) algae; and
``(ii) waste material, including--
``(I) crop residue;
``(II) other vegetative waste
material (including wood waste
and wood residues);
``(III) animal waste and
byproducts (including fats,
oils, greases, and manure);
``(IV) construction waste;
and
``(V) food waste and yard
waste.
``(C) Residues and byproducts from wood,
pulp, or paper products facilities.''.
Page 26, line 22, strike ``(g)'' and insert ``(h)''.
Page 31, line 6, strike ``Where'' and insert ``(A) Except as
provided in subparagraph (B), where''
Page 32, after line 4, insert:
``(B) In the case of a central procurement State that
pursuant to subsection (g) has assumed responsibility
for compliance with the requirements of subsection (b),
the Commission shall issue directly to the State
Federal renewable electricity credits for any renewable
electricity for which the State, pursuant to a mandate
described in subsection (a)(7), has centrally procured
credits or certificates issued based on generation of
such renewable electricity.
Page 32, line 6, strike ``When'' and insert ``Except as
otherwise provided in paragraph (2), when''.
Page 43, line 10, after ``supplier'' insert ``, or a central
procurement State that, pursuant to subsection (g), has assumed
responsibility for compliance with the requirements of
subsection (b),''.
Page 43, line 21, before the comma insert ``and paragraph
(4)''.
Page 44, line 5 strike ``(4)'' and insert ``(5) and with
paragraph (4) where applicable''.
Page 44, line 7, strike ``(4)'' and insert ``(5), or with
paragraph (4), where applicable''.
Page 44, after line 20, insert the following new paragraph
and redesignate the succeeding paragraph accordingly:
``(4) Central procurement states.--
``(A) In general.--A central procurement
State that, pursuant to subsection (g), has
assumed responsibility for compliance with the
requirements of subsection (b) shall deposit
any alternative compliance payments under this
subsection in a unique fund in the State
treasury created and used solely for this
purpose.
``(B) Requirements.--As a precondition of
making alternative compliance payments under
this subsection, a central procurement State
shall certify to the Commission, in accordance
with such requirements as the Commission may
prescribe, that--
``(i) making such payments is the
lowest cost alternative to meet the
requirements of subsection (b); and
``(ii) moneys used by the State to
make such payments are in addition to
any spending that the State, and any
separate entity charged with
administering the State central
procurement requirement identified
under subsection (a)(7), otherwise
collectively would direct to the
purposes identified in paragraph (3).
``(C) Uses.--A central procurement State that
makes alternative compliance payments under
this subsection shall certify to the Commission
that, in using such payments in accordance with
paragraph (3), it has, to the extent
practicable, maximized the level of deployment
of renewable electricity generation (measured
in megawatt hours) and electricity savings per
dollar that are achieved through such
expenditures.
Page 45, line 5 before the period insert ``and demonstrating
compliance with the requirements of this subsection''.
Page 45, after line 5, insert the following new subsection
and redesignate the succeeding subsections accordingly:
``(g) Central Procurement States.--
``(1) In general.--A central procurement State may,
upon submission of a written request by the Governor of
such State to the Commission, assume responsibility for
compliance with the requirements of subsection (b) on
behalf of retail electric suppliers located in such
State, exclusively with regard to the portion of such
retail electric suppliers' base amount that is sold
within the State.
``(2) Demonstration of electricity savings.--If a
central procurement State opts to meet any part of the
requirements of subsection (b) based on the achievement
of demonstrated total annual electricity savings,
regardless of whether such State has received delegated
authority pursuant to subsection (f)(5), such State
shall submit such demonstrated total annual electricity
savings to the Commission through an annual report in
accordance with requirements prescribed by the
Commission by regulation, which shall be of equivalent
stringency to those applicable to retail electric
suppliers under subsection (f).
``(3) Noncompliance.--If a central procurement State
that pursuant to this subsection has assumed
responsibility for compliance with the requirements of
subsection (b), fails to satisfy the requirements of
subsection (b) or (h) for any year, the State's
assumption of responsibility under this subsection
shall be discontinued immediately, and retail electric
suppliers located in such State henceforth shall be
directly subject to the requirements of this section.
Page 45, line 16, after ``person'' insert ``, other than any
central procurement State that pursuant to subsection (g) has
assumed responsibility for compliance with the requirements of
subsection (b),''.
Page 45, line 17, and page 46, line 3, strike ``(g)'' and
insert ``(h)''.
Page 45, line 21, strike ``(g)(1)'' and insert ``(h)(1)''.
Page 46, line 9, after ``person'' insert ``, other than any
central procurement State that pursuant to subsection (g) has
assumed responsibility for compliance with the requirements of
subsection (b),''.
Page 46, line 20, strike ``(i)'' and insert ``(j)''.
Page 49, after line 4, insert the following new section and
make the necessary conforming changes in the table of contents:
SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES.
(a) Requirement.--For each of calendar years 2012 through
2039, the President shall ensure that, of the total amount of
electricity Federal agencies consume in the United States
during each calendar year, the following percentage shall be
renewable electricity:
Calendar year Required annual percentage
2012................................... 6.0
2013................................... 6.0
2014................................... 9.5
2015................................... 9.5
2016................................... 13.0
2017................................... 13.0
2018................................... 16.5
2019................................... 16.5
2020................................... 20.0
2021 through 2039...................... 20.0
(b) Definitions.--For purposes of this section:
(1) Renewable electricity.--The term ``renewable
electricity'' shall have the meaning given in section
610 of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2601 and following).
(2) Renewable energy resource.--The term ``renewable
energy resource'' shall have the meaning given in
section 610 of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 and following).
(c) Modification of Requirement.--If the President determines
that the Federal Government cannot feasibly meet the
requirement established in subsection (a) in a specific
calendar year, the President may, by written order, reduce such
requirement for such calendar year to a percentage the
President determines the Federal Government can feasibly meet.
(d) Reports.--Not later than April 1, 2013, and each year
thereafter, the Secretary of Energy shall provide a report to
Congress on the percentage of each Federal agency's electricity
consumption in the United States that was renewable electricity
in the previous calendar year.
(e) Contracts for Renewable Energy.--(1) Notwithstanding
section 501(b)(1)(B) of title 40, United States Code, a
contract for the acquisition of electricity generated from a
renewable energy resource for the Federal Government may be
made for a period of not more than 20 years.
(2) Not later than 90 days after the date of enactment of
this subsection, the Secretary of Energy, through the Federal
Energy Management Program, shall publish a standardized
renewable energy purchase agreement, setting forth commercial
terms and conditions, that Federal agencies may use to acquire
electricity generated from a renewable energy resource.
(3) The Secretary of Energy shall provide technical
assistance to assist Federal agencies in implementing this
subsection.
Page 96, line 8, insert ``The limitation in the preceding
sentence shall not apply to projects that meet the eligibility
criteria in subsection (b)(1)(A)(iv)(I).'' after ``generating
capacity.''.
Page 110, strike lines 8 through 15 and insert ``subsection
(a) for the reconstruction or retooling of facilities for the
manufacture of plug-in electric drive vehicles or batteries for
such vehicles that are developed and produced in the United
States.''.
Page 116, beginning line 1, strike section 126 and insert the
following new section:
SEC. 126. DEFINITION OF RENEWABLE BIOMASS.
Section 211(o)(1)(I) of the Clean Air Act (42 U.S.C.
7545(o)(1)(I)) is amended to read as follows:
``(I) Renewable biomass.--The term `renewable
biomass' means any of the following:
``(i) Materials, pre-commercial
thinnings, or removed invasive species
from National Forest System land and
public lands (as defined in section 103
of the Federal Land Policy and
Management Act of 1976 (43 U.S.C.
1702)), including those that are
byproducts of preventive treatments
(such as trees, wood, brush, thinnings,
chips, and slash), that are removed as
part of a federally recognized timber
sale, or that are removed to reduce
hazardous fuels, to reduce or contain
disease or insect infestation, or to
restore ecosystem health, and that
are--
``(I) not from components of
the National Wilderness
Preservation System, Wilderness
Study Areas, Inventoried
Roadless Areas, old growth
stands, late-successional
stands (except for dead,
severely damaged, or badly
infested trees), components of
the National Landscape
Conservation System, National
Monuments, National
Conservation Areas, Designated
Primitive Areas, or Wild and
Scenic Rivers corridors;
``(II) harvested in
environmentally sustainable
quantities, as determined by
the appropriate Federal land
manager; and
``(III) harvested in
accordance with Federal and
State law, and applicable land
management plans.
``(ii) Any organic matter that is
available on a renewable or recurring
basis from non-Federal land or land
belonging to an Indian or Indian tribe
that is held in trust by the United
States or subject to a restriction
against alienation imposed by the
United States, including--
``(I) renewable plant
material, including--
``(aa) feed grains;
``(bb) other
agricultural
commodities;
``(cc) other plants
and trees; and
``(dd) algae; and
``(II) waste material,
including--
``(aa) crop residue;
``(bb) other
vegetative waste
material (including
wood waste and wood
residues);
``(cc) animal waste
and byproducts
(including fats, oils,
greases, and manure);
``(dd) construction
waste;
``(ee) food waste and
yard waste; and
``(ff) the non-fossil
biogenic portion of
municipal solid waste
and construction,
demolition, and
disaster debris.
``(iii) Residues and byproducts from
wood, pulp, or paper products
facilities.''.
Page 120, after line 16, insert the following new subsection:
(c) Reduction.--The last sentence of section 211(o)(7)(D) of
the Clean Air Act (42 U.S.C. 7545(o)(7)(D)) is amended to read
as follows: ``For any calendar year in which the Administrator
makes such a reduction, the Administrator shall also reduce the
applicable volume of renewable fuel and advanced biofuels
requirement established under paragraph (2)(B) by the same
volume.''.
Page 128, line 4, strike ``; and'' and insert a semicolon.
Page 128, line 17, strike the period at the end and insert
``; and''.
Page 128, after line 17, insert the following new paragraph:
(4) in section 797, by striking ``2011'' and
inserting ``2016''.
Page 129, after line 9, insert the following new sections and
make the necessary conforming changes in the table of contents:
SEC. 130. FLEET VEHICLES.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C.
13258) is amended as follows:
(1) By adding the following new paragraph at the end
of subsection (a):
``(6) Repowered or converted alternative fueled
vehicles.--As used in this paragraph, the term
`repowered or converted alternative fueled vehicle'
includes light-, medium- or heavy-duty motor vehicles
that have been modified with an EPA or CARB compliant
engine or vehicle or aftermarket system so that the
vehicle or engine is capable of operating on an
alternative fuel.''.
(2) By adding the following new paragraph at the end
of subsection (b):
``(3) Repowered or converted vehicles. Not later than
January 1, 2010, the Secretary shall allocate credits
to fleets that repower or convert an existing vehicle
so that it is capable of operating on an alternative
fuel. In the case of any medium- or heavy-duty vehicle
that is repowered or converted so that it is capable of
operating on an alternative fuel, the Secretary shall
allocate additional credits for such vehicles if he
determines that such vehicles displace more petroleum
than light duty alternative fueled vehicles. Such rules
shall also include a requirement that such vehicles
remain in the fleet for a period of no less than 2
years in order to continue to qualify for credit. The
Secretary also shall extend the flexibility afforded in
this paragraph to Federal fleets subject to the
purchase provisions contained in section 303 of this
Act.''.
SEC. 130A. REPORT ON NATURAL GAS VEHICLE EMISSIONS REDUCTIONS.
Within 360 days after the date of enactment of this Act, the
Administrator, in consultation with the Secretaries of Energy
and Transportation, and the Administrator of the General
Services Administration, and after an examination of available
scientific studies or analysis, shall submit to the Congress a
report on--
(1) the contribution that light and heavy duty
natural gas vehicles, by category and State, have made
during the last decade to the reduction of greenhouse
gases and criteria pollutants under the Clean Air Act,
and the reduced consumption of petroleum-based fuels;
(2) the contribution that light and heavy duty
natural gas vehicles are expected to make from 2010 to
2020 in reducing greenhouse gas and criteria pollutants
under the Clean Air Act based, among other things, on
additional Federal incentives for the manufacture and
deployment of natural gas vehicles provided in this
Act, and other Federal legislation; and
(3) additional Federal measures, including
legislation, that could, if implemented, maximize the
potential for natural gas used in both stationary and
mobile sources to contribute to the reduction of
greenhouse gases and criteria pollutants under the
Clean Air Act.
Page 140, line 17, strike ``5 percent'' and insert ``5.5
percent''.
Page 141, line 13, insert ``direct provision of allowances,''
after ``forgivable loans,''.
Page 164, strike line 10 and all that follows down through
line 19 on page 170, insert the following and make the
necessary conforming changes in the table of contents:
SEC. 151. TRANSMISSION PLANNING AND SITING.
(a) In General.--Section 216 of the Federal Power Act (16
U.S.C. 824p) is amended as follows:
(1) In subsection (b), in paragraph (5), by striking
``; and'' and inserting a semicolon, in paragraph (6)
by striking the period and inserting ``; and'' and by
adding the following at the end thereof:
``(7) the facility is interstate in nature or is an
intrastate segment integral to a proposed interstate
facility;''.
(2) In subsection (k), by inserting at the end the
following: ``Subsections (a), (b), (c), and (h) of this
section shall not apply in the Western
interconnection.''.
(3) In subsections (d) and (e), by striking
``subsection (b)'' in each place and inserting
``subsection (b) or section 216B'', and by striking
``permit'' and inserting ``permit or certificate'' in
each place it appears.
(b) New Sections.--The Federal Power Act (16 U.S.C. 824p) is
amended by inserting the following new sections after section
216:
``SEC. 216A TRANSMISSION PLANNING.
``(a) Federal Policy for Transmission Planning.--
``(1) Objectives.--It is the policy of the United
States that regional electric grid planning should
facilitate the deployment of renewable and other zero-
carbon and low-carbon energy sources for generating
electricity to reduce greenhouse gas emissions while
ensuring reliability, reducing congestion, ensuring
cyber-security, minimizing environmental harm, and
providing for cost-effective electricity services
throughout the United States, in addition to serving
the objectives stated in section 217(b)(4).
``(2) Options.--In addition to the policy under
paragraph (1), it is the policy of the United States
that regional electric grid planning to meet these
objectives should result from an open, inclusive and
transparent process, taking into account all
significant demand-side and supply-side options,
including energy efficiency, distributed generation,
renewable energy and zero-carbon electricity generation
technologies, smart-grid technologies and practices,
demand response, electricity storage, voltage
regulation technologies, high capacity conductors with
at least 25 percent greater efficiency than traditional
ACSR (aluminum stranded conductors steel reinforced)
conductors, superconductor technologies, underground
transmission technologies, and new conventional
electric transmission capacity and corridors.
``(b) Planning.--
``(1) Planning principles.--Not later than 1 year
after the date of enactment of this section, the
Commission shall adopt, after notice and opportunity
for comment, national electricity grid planning
principles derived from the Federal policy established
under subsection (a) to be applied in ongoing and
future transmission planning that may implicate
interstate transmission of electricity.
``(2) Regional planning entities.--Not later than 3
months after the date of adoption by the Commission of
national electricity grid planning principles pursuant
to paragraph (1), entities that conduct or may conduct
transmission planning pursuant to State, tribal, or
Federal law or regulation, including States, Indian
tribes, entities designated by States and Indian
tribes, Federal Power Marketing Administrations,
transmission providers, operators and owners, regional
organizations, and electric utilities, and that are
willing to incorporate the national electricity grid
planning principles adopted by the Commission in their
electric grid planning, shall identify themselves and
the regions for which they propose to develop plans to
the Commission.
``(3) Coordination of regional planning entities.--
The Commission shall encourage regional planning
entities described under paragraph (2) to cooperate and
coordinate across regions and to harmonize regional
electric grid planning with planning in adjacent or
overlapping jurisdictions to the maximum extent
feasible. The Commission shall work with States, Indian
tribes, Federal land management agencies, State energy,
environment, natural resources, and land management
agencies and commissions, Federal power marketing
administrations, electric utilities, transmission
providers, load-serving entities, transmission
operators, regional transmission organizations,
independent system operators, and other organizations
to resolve any conflict or competition among proposed
planning entities in order to build consensus and
promote the Federal policy established under subsection
(a). The Commission shall seek to ensure that planning
that is consistent with the national electricity grid
planning principles adopted pursuant to paragraph (1)
is conducted in all regions of the United States and
the territories, but in a manner that, to the extent
feasible, avoids uncoordinated planning by more than
one planning entity for the same area.
``(4) Relation to existing planning policy.--In
implementing the Federal policy established under
subsection (a), the Commission shall
``(A) incorporate and coordinate with any
ongoing planning efforts undertaken pursuant to
section 217 and Commission Order No. 890;
``(B) coordinate with the Secretary of Energy
in providing to the regional planning entities
an annual summary of national energy policy
priorities and goals;
``(C) coordinate with corridor designation
and planning functions carried out pursuant to
section 216 by the Secretary of Energy, who
shall provide financial support from available
funds to support the purposes of this section;
and
``(D) coordinate with the Secretaries of the
Interior and Agriculture and Indian tribes in
carrying out the Secretaries' or tribal
governments' existing responsibilities for the
planning or siting of transmission facilities
on Federal or tribal lands, consistent with
law, policy, and regulations relating to the
management of federal public lands .
``(5) Assistance.--
``(A) In general.--The Commission shall
provide support to and may participate if
invited to do so in the regional grid planning
processes conducted by regional planning
entities. The Secretary of Energy and the
Commission may provide planning resources and
assistance as required or as requested by
regional planning entities, including system
data, cost information, system analysis,
technical expertise, modeling support, dispute
resolution services, and other assistance to
regional planning entities, as appropriate.
``(B) Authorization.--There are authorized to
be appropriated such sums as may be necessary
to carry out this paragraph.
``(6) Conflict resolution.--In the event that
regional grid plans conflict, the Commission shall
assist the regional planning entities in resolving such
conflicts in order to achieve the objectives of the
Federal policy established under subsection (a).
``(7) Submission of plans.--The Commission shall
require regional planning entities to submit initial
regional electric grid plans to the Commission not
later than 18 months after the date the Commission
promulgates national electricity grid planning
principles pursuant to paragraph (1), with updates to
such plans not less than every 3 years thereafter. The
Commission shall review such plans for consistency with
the national grid planning principles and may return a
plan to one or more planning entities for further
consideration, along with the Commission's own
recommendations for resolution of any conflict or for
improvement.
``(8) Integration of plans.--Regional electric grid
plans should, in general, be developed from sub-
regional requirements and plans, including planning
input reflecting individual utility service areas.
Regional plans may then in turn be combined into larger
regional plans, up to interconnection-wide and national
plans, as appropriate and necessary as determined by
the Commission. In no case shall a multi-regional plan
impose inclusion of a facility on a region that has
submitted a valid plan that, after efforts to resolve
the conflict, does not include such facility. To the
extent practicable, all plans submitted to the
Commission shall be public documents and available on
the Commission's Web site.
``(9) Multi-regional meetings.--As regional grid
plans are submitted to the Commission, the Commission
may convene multi-regional meetings to discuss regional
grid plan consistency and integration, including
requirements for multi-regional projects, and to
resolve any conflicts that emerge from such multi-
regional projects. The Commission shall provide its
recommendations for eliminating any inter-regional
conflicts.
``(10) Report to congress.--Not later than 3 years
after the date of enactment of this section and each 3
years thereafter, the Commission shall provide a report
to Congress containing the results of the regional grid
planning process, including summaries of the adopted
regional plans and the extent to which the Federal
policy objectives in subsection (a) have been
successfully achieved. The Commission shall provide an
electronic version of its report on its website with
links to all regional and sub-regional plans taken into
account. The Commission shall note and provide its
recommended resolution for any conflicts not resolved
during the planning process. The Commission shall make
any recommendations to Congress on the appropriate
Federal role or support required to address the needs
of the electric grid, including recommendations for
addressing any needs that are beyond the reach of
existing State, tribal, and Federal authority.
``SEC. 216B. SITING AND CONSTRUCTION IN THE WESTERN INTERCONNECTION.
``(a) Applicability.--This section applies only to States
located in the Western Interconnection and does not apply to
States located in the Eastern Interconnection, to the States of
Alaska or Hawaii, or to ERCOT.
``(b) Certificate of Public Convenience and Necessity.--The
Commission may, after notice and opportunity for hearing, issue
a certificate of public convenience and necessity for the
construction or modification of a transmission facility if the
Commission finds that--
``(1) the facility was identified and included in one
or more relevant and final regional or interconnection-
wide electric grid plans submitted to the Commission
pursuant to subsection (b) of 216A;
``(2) any conflict among regional electric grid plans
concerning the need for the facility was resolved;
``(3) such relevant regional electric grid plans are
consistent with the national grid planning principles
adopted by the Commission pursuant to subsection (b);
``(4) the facility was identified as needed in
significant measure to meet demand for renewable energy
in such plans;
``(5) the facility is a multistate facility;
``(6) the developer of such facility filed a complete
application seeking approval for the siting of the
facility with a state commission or other entity that
has authority to approve the siting of the facility;
``(7) a State commission or other entity that has
authority to approve the siting of the facility--
``(A) did not issue a decision on an
application seeking approval for the siting of
the facility within 1 year after the date the
applicant submitted a completed application to
the State;
``(B) denied a complete application seeking
approval for the siting of the facility; or
``(C) authorized the siting of the facility
subject to conditions that unreasonably
interfere with the development of the facility;
and
``(8) the siting of the facility can be accomplished
in a manner consistent with the Federal policy
established in subsection (a) of section 216A and the
national grid planning principles adopted by the
Commission pursuant to subsection (b) of section 216A.
``(c) State Recommendations on Resource Protection.--In
issuing a final certificate of public convenience and necessity
pursuant to subsection (b), the Commission shall--
``(1) consider any siting constraints and mitigation
measures based on habitat protection, health and safety
considerations, environmental considerations, or
cultural site protection identified by relevant State
or local authorities; and
``(2) incorporate those identified siting constraints
or mitigation measures, including recommendations
related to project routing, as conditions in the final
certificate of public convenience and necessity, or if
the Commission determines that a recommended siting
constraint or mitigation measure is infeasible,
excessively costly, or inconsistent with the Federal
policy established in subsection (a) of section 216A or
the national grid planning principles adopted by the
Commission pursuant to subsection (b) of section 216A--
``(A) consult with State regulatory agencies
to seek to resolve the issue;
``(B) incorporate as conditions on the
certificate such recommended siting constraints
or mitigation measures as are determined to be
appropriate by the Commission, based on
consultation by the Commission with State
regulatory agencies, the Federal policy
established in subsection (a) of section 216A
and the national grid planning principles
adopted by the Commission pursuant to
subsection (b)of section 216A, and the record
before the Commission; and
``(C) if, after consultation, the Commission
does not adopt in whole or in part a
recommendation of an agency, publish a finding
that the adoption of the recommendation is
infeasible, not cost effective, or inconsistent
with this section or other applicable
provisions of law.
``(d) Certificate Applications.--(1) An application for a
preliminary or final certificate of public convenience and
necessity under this subsection shall be made in writing to the
Commission.
``(2) The Commission shall issue rules specifying--
``(A) the form of the application;
``(B) the information to be contained in the
application; and
``(C) the manner of service of notice of the
application on interested persons.
``(e) Coordination of Federal Authorizations for Transmission
Facilities.--
``(1) In this subsection, the term `Federal
authorization' shall have the same meaning and include
the same actions as in section 216(h).
``(2) The Federal Energy Regulatory Commission shall
act as the lead agency for purposes of coordinating all
applicable Federal authorizations and related
environmental reviews of the facility, provided,
however, that to the extent the facility is proposed to
be sited on Federal lands, the Department of the
Interior will assume such lead-agency duties as agreed
between the Commission and the Department of Interior.
``(3) To the maximum extent practicable under
applicable Federal law, the Commission, and to the
extent agreed, the Secretary of Interior, shall
coordinate the Federal authorization and review process
under this subsection with any Indian tribes,
multistate entities, and State agencies that are
responsible for conducting any separate permitting and
environmental reviews of the facility, to ensure timely
and efficient review and permit decisions.
``(4)(A) As head of the lead agency, the Chairman of
the Commission, in consultation with the Secretary of
Interior and with those entities referred to in
paragraph (3) that are willing to coordinate their own
separate permitting and environmental reviews with the
Federal authorization and environmental reviews, shall
establish prompt and binding intermediate milestones
and ultimate deadlines for the review of, and Federal
authorization decisions relating to, the proposed
facility.
``(B) The Chairman of the Commission, or the
Secretary of Interior, as agreed under paragraph (2),
shall ensure that, once an application has been
submitted with such data as the lead agency considers
necessary, all permit decisions and related
environmental reviews under all applicable Federal laws
shall be completed--
``(i) within 1 year; or
``(ii) if a requirement of another provision
of Federal law does not permit compliance with
clause (i), as soon thereafter as is
practicable.
``(C) The Commission shall provide an expeditious
pre-application mechanism for prospective applicants to
confer with the agencies involved to have each such
agency determine and communicate to the prospective
applicant not later than 60 days after the prospective
applicant submits a request for such information
concerning--
``(i) the likelihood of approval for a
potential facility; and
``(ii) key issues of concern to the agencies
and public.
``(5)(A) As lead agency head, the Chairman of the
Commission, in consultation with the affected agencies,
shall prepare a single environmental review document,
which shall be used as the basis for all decisions on
the proposed project under Federal law.
``(B) The Chairman of the Commission and the heads of
other agencies shall streamline the review and
permitting of transmission within corridors designated
under section 503 of the Federal Land Policy and
Management Act (43 U.S.C. 1763) by fully taking into
account prior analyses and decisions relating to the
corridors.
``(C) The document shall include consideration by the
relevant agencies of any applicable criteria or other
matters as required under applicable law.
``(6)(A) If any agency has denied a Federal
authorization required for a transmission facility, or
has failed to act by the deadline established by the
Commission pursuant to this section for deciding
whether to issue the authorization, the applicant or
any State in which the facility would be located may
file an appeal with the President, who shall, in
consultation with the affected agency, review the
denial or failure to take action on the pending
application.
``(B) Based on the overall record and in consultation
with the affected agency, the President may--
``(i) issue the necessary authorization with
any appropriate conditions; or
``(ii) deny the application.
``(C) The President shall issue a decision not later
than 90 days after the date of the filing of the
appeal.
``(D) In making a decision under this paragraph, the
President shall comply with applicable requirements of
Federal law, including any requirements of--
``(i) the National Forest Management Act of
1976 (16 U.S.C. 472a et seq.);
``(ii) the Endangered Species Act of 1973 (16
U.S.C. 1531 et seq.);
``(iii) the Federal Water Pollution Control
Act (33 U.S.C. 1251 et seq.);
``(iv) the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.); and
``(v) the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.).
``(7)(A) Not later than 18 months after August 8,
2005, the Commission or, as requested, the Secretary or
Interior, shall issue any regulations necessary to
implement this subsection.
``(B)(i) Not later than 1 year after August 8, 2005,
the Commission, the Secretary of Interior, and the
heads of all Federal agencies with authority to issue
Federal authorizations shall enter into a memorandum of
understanding to ensure the timely and coordinated
review and permitting of electricity transmission
facilities.
``(ii) Interested Indian tribes, multistate entities,
and State agencies may enter the memorandum of
understanding.
``(C) The head of each Federal agency with authority
to issue a Federal authorization shall designate a
senior official responsible for, and dedicate
sufficient other staff and resources to ensure, full
implementation of the regulations and memorandum
required under this paragraph.
``(8)(A) Each Federal land use authorization for an
electricity transmission facility shall be issued--
``(i) for a duration, as determined by the
Secretary of Interior, commensurate with the
anticipated use of the facility; and
``(ii) with appropriate authority to manage
the right-of-way for reliability and
environmental protection.
``(B) On the expiration of the authorization
(including an authorization issued before August 8,
2005), the authorization shall be reviewed for renewal
taking fully into account reliance on such electricity
infrastructure, recognizing the importance of the
authorization for public health, safety, and economic
welfare and as a legitimate use of Federal land.
``(9) In exercising the responsibilities under this
section, the Commission shall consult regularly with--
``(A) electric reliability organizations
(including related regional entities) approved
by the Commission; and
``(B) Transmission Organizations approved by
the Commission.''.
Page 218, line 12, strike ``concentration of firms'' and
insert ``network of entities''.
Page 243, after line 2, insert the following new section:
SEC. 175. HIGH EFFICIENCY GAS TURBINE RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.
(a) In General.--The Secretary of Energy shall carry out a
multiyear, multiphase program of research, development, and
technology demonstration to improve the efficiency of gas
turbines used in combined cycle power generation systems and to
identify the technologies that ultimately will lead to gas
turbine combined cycle efficiency of 65 percent.
(b) Program Elements.--The program under this section shall--
(1) support first-of-a-kind engineering and detailed
gas turbine design for utility-scale electric power
generation, including--
(A) high temperature materials, including
superalloys, coatings, and ceramics;
(B) improved heat transfer capability;
(C) manufacturing technology required to
construct complex three-dimensional geometry
parts with improved aerodynamic capability;
(D) combustion technology to produce higher
firing temperature while lowering nitrogen
oxide and carbon monoxide emissions per unit of
output;
(E) advanced controls and systems
integration;
(F) advanced high performance compressor
technology; and
(G) validation facilities for the testing of
components and subsystems;
(2) include technology demonstration through
component testing, subscale testing, and full scale
testing in existing fleets;
(3) include field demonstrations of the developed
technology elements so as to demonstrate technical and
economic feasibility; and
(4) assess overall combined cycle system performance.
(c) Program Goals.--The goals of the multiphase program
established under subsection (a) shall be--
(1) in phase I--
(A) to develop the conceptual design of
advanced high efficiency gas turbines that can
achieve at least 62 percent combined cycle
efficiency on a lower heating value basis; and
(B) to develop and demonstrate the technology
required for advanced high efficiency gas
turbines that can achieve at least 62 percent
combined cycle efficiency on a lower heating
value basis; and
(2) in phase II, to develop the conceptual design for
advanced high efficiency gas turbines that can achieve
at least 65 percent combined cycle efficiency on a
lower heating value basis.
(d) Proposals.--Within 180 days after the date of enactment
of this section, the Secretary shall solicit proposals for
conducting activities under this section. In selecting
proposals, the Secretary shall emphasize--
(1) the extent to which the proposal will stimulate
the creation or increased retention of jobs in the
United States; and
(2) the extent to which the proposal will promote and
enhance United States technology leadership.
(e) Cost Sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to an award of financial
assistance made under this section.
(f) Limits on Participation.--The limits on participation
applicable under section 999E of the Energy Policy Act of 2005
(42 U.S.C. 16375) shall apply to financial assistance awarded
under this section.
(g) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for carrying out this section
$65,000,000 for each of fiscal years 2011 through 2014.
Page 256, line 2, strike ``and''.
Page 256, after line 2, insert the following new paragraph:
(11) sufficient availability of financial services
and support to small businesses developing and
deploying clean energy technologies through
partnerships with private entities that have relevant
credit expertise; and
Page 256, line 3, redesignate paragraph (11) as paragraph
(12).
Page 285, lines 13 through 15, amend paragraph (4) to read as
follows:
``(4) The Clean Energy Deployment Administration
established under section 186 of the American Clean
Energy and Security Act of 2009.''.
Page 288, line 15, insert ``, including minority-owned and
woman-owned,'' after ``to entrepreneurs''.
Page 296, after line 6, insert the following new sections:
SEC. 199. DEVELOPMENT CORPORATION FOR RENEWABLE POWER BORROWING
AUTHORITY.
(a) Determination.--No later than 6 months after the date of
enactment of this Act, the Secretary of Energy, in coordination
with the Secretary of Commerce, shall--
(1) determine any geographic area within the
contiguous United States that lacks a Federal power
marketing agency;
(2) develop a plan or criteria for the geographic
areas identified in paragraph (1) regarding investment
in renewable energy and associated infrastructure
within an area identified in paragraph (1); and
(3) identify any Federal agency within an area in
paragraph (1) that has, or could develop, the ability
to facilitate the investment in paragraph (2).
(b) Report.--The Secretary of Energy, in coordination with
the Secretary of Commerce, shall provide the determinations
made under subsection (a) to the Committee on Energy and
Commerce of the House of Representatives.
(c) Establishment.--Based upon the determinations made
pursuant to subsection (a), the Secretary of Energy, in
coordination with the Secretary of Commerce, shall recommend to
the Committee on Energy and Commerce of the House of
Representatives the establishment of any new Federal lending
authority, including authorization of additional lending
authority for existing Federal agencies, not to exceed
$3,500,000,000 per geographic area identified in subsection
(a)(1).
(d) Authorization.--$25,000,000 is authorized to be
appropriated for fiscal year 2010 to carry out the provisions
of this section.
SEC. 199A. STUDY.
Not later than February 1, 2011, the Secretary of Energy
shall transmit to the Congress a report showing the results of
a study on the use of thorium-fueled nuclear reactors for
national energy needs. Such report shall include a response to
the International Atomic Energy Agency study entitled ``Thorium
fuel cycle - Potential benefits and challenges'' (IAEA-TECDOC-
1450).
Page 329, line 4, insert ``Owners of public housing or
assisted housing receiving funding through the REEP program
shall agree to continue to provide affordable housing
consistent with the provisions of the authorizing legislation
governing each program for an additional period commensurate
with the funding received, as determined in accordance with
guidelines established by the Secretary of Housing and Urban
Development.'' after ``Federal assistance.''.
Page 344, after line 10, insert the following new
subparagraph:
(C) Disaster damaged buildings.--Any source
of funds, including Federal funds provided
through the Robert T. Stafford Disaster Relief
and Emergency Assistance Act, shall qualify as
the building owner's 50 percent contribution,
in order to match the contribution of REEP
funds, so long as the REEP funds are only used
to improve the energy efficiency of the
buildings being reconstructed. In addition, the
appropriate Federal agencies providing
assistance to building owners through the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act shall make information
available, following a disaster, to building
owners rebuilding disaster damaged buildings
with assistance from the Act, that REEP funds
may be used for energy efficiency improvements.
Page 344, lines 11 and 18, redesignate subparagraphs (C) and
(D) as subparagraphs (D) and (E), respectively.
Page 335, line 19, strike ``and''.
Page 335, line 25, strike the period and insert ``; and''.
Page 335, after line 25, add the following new paragraph:
(3) agree to make not less than 10 percent of
allowance value received pursuant to section 132(c)(2)
for dedicated funding of its REEP program available on
a preferential basis for retrofit projects proposed for
public housing and assisted housing, provided that--
(A) none of such funds shall be used for
demolition of such housing;
(B) such retrofits not shall not be used to
justify any increase in rents charged to
residents of such housing; and
(C) owners of such housing shall agree to
continue to provide affordable housing
consistent with the provisions of the
authorizing legislation governing each program
for an additional period commensurate with the
funding received.
Page 345, lines 7 through 11, strike ``The Administrator,''
and all that follows through ``other residential buildings.''.
Page 367, after line 7, insert the following new subsection:
(m) New Construction.--This section shall apply only to
construction beginning after the date of enactment of this Act.
Page 382, after line 10, insert the following new sections:
SEC. 207. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.
(a) Grant Program Authorized.--
(1) Grant authorization.--The Secretary of Housing
and Urban Development shall to the extent amounts are
made available for grants under this section provide
grants to local building code enforcement departments.
(2) Competitive awards.--The Secretary shall award
grants under paragraph (1) on a competitive basis
taking into consideration the following:
(A) The financial need of each building code
enforcement department.
(B) The benefit to the jurisdiction of having
an adequately funded building code enforcement
department.
(C) The demonstrated ability of each building
code enforcement department to work
cooperatively with other local code enforcement
offices, health departments, and local
prosecutorial agencies.
(3) Maximum amount.--The maximum amount of any grant
awarded under this subsection shall not exceed
$1,000,000.
(4) Coordination.--The Secretary of Housing and Urban
Development shall coordinate with the Secretary of
Energy to ensure that any unnecessarily duplicative
funding through grants under this section of activities
otherwise funded through the Department of Energy is
minimized or eliminated.
(b) Required Elements in Grant Proposals.--In order to be
eligible for a grant under subsection (a), a building code
enforcement department of a jurisdiction shall submit to the
Secretary the following:
(1) A demonstration of the jurisdiction's needs in
executing building code enforcement administration.
(2) A plan for the use of any funds received from a
grant under this section that addresses the needs
discussed in paragraph (1) and that is consistent with
the authorized uses established in subsection (c).
(3) A plan for local governmental actions to be taken
to establish and sustain local building code
enforcement administration functions, without
continuing Federal support, at a level at least
equivalent to that proposed in the grant application.
(4) A plan to create and maintain a program of public
outreach that includes a regularly updated and readily
accessible means of public communication, interaction,
and reporting regarding the services and work of the
building code enforcement department to be supported by
the grant.
(5) A plan for ensuring the timely and effective
administrative enforcement of building safety and fire
prevention violations.
(c) Use of Funds; Matching Funds.--
(1) Authorized uses.--Amounts from grants awarded
under subsection (a) may be used by the grant recipient
to supplement existing State or local funding for
administration of building code enforcement, or to
supplement allowance value received pursuant to this
Act for implementation and enforcement of energy
efficiency building codes. Such amounts may be used to
increase staffing, provide staff training, increase
staff competence and professional qualifications, or
support individual certification or departmental
accreditation, or for capital expenditures specifically
dedicated to the administration of the building code
enforcement department.
(2) Additional requirement.--Each building code
enforcement department receiving a grant under
subsection (a) shall empanel a code administration and
enforcement team consisting of at least 1 full-time
building code enforcement officer, a city planner, and
a health planner or similar officer.
(3) Matching funds required.--
(A) In general.--To be eligible to receive a
grant under this section, a building code
enforcement department shall provide matching,
non-Federal funds in the following amount:
(i) In the case of a building code
enforcement department serving an area
with a population of more than 50,000,
an amount equal to not less than 50
percent of the total amount of any
grant to be awarded under this section.
(ii) In the case of a building code
enforcement department serving an area
with a population of between 20,001 and
50,000, an amount equal to not less
than 25 percent of the total amount of
any grant to be awarded under this
section.
(iii) In the case of a building code
enforcement department serving an area
with a population of less than 20,000,
an amount equal to not less than 12.5
percent of the total amount of any
grant to be awarded under this section.
(B) Economic distress.--
(i) In general.--The Secretary may
waive the matching fund requirements
under subparagraph (A), and institute,
by regulation, new matching fund
requirements based upon the level of
economic distress of the jurisdiction
in which the local building code
enforcement department seeking such
grant is located.
(ii) Content of regulations.--Any
regulations instituted under clause (i)
shall include--
(I) a method that allows for
a comparison of the degree of
economic distress among the
local jurisdictions of grant
applicants, as measured by the
differences in the extent of
growth lag, the extent of
poverty, and the adjusted age
of housing in such
jurisdiction; and
(II) any other factor
determined to be relevant by
the Secretary in assessing the
comparative degree of economic
distress among such
jurisdictions.
(4) In-kind contributions.--In determining the non-
Federal share required to be provided under paragraph
(3), the Secretary shall consider in-kind
contributions, not to exceed 50 percent of the amount
that the department contributes in non-Federal funds.
(5) Waiver of matching requirement.--The Secretary
shall waive the matching fund requirements under
paragraph (3) for any recipient jurisdiction that has
dedicated all building code permitting fees to the
conduct of local building code enforcement.
(d) Evaluation and Report.--
(1) In general.--Grant recipients under this section
shall--
(A) be obligated to fully account and report
for the use of all grants funds; and
(B) provide a report to the Secretary on the
effectiveness of the program undertaken by the
grantee and any other criteria requested by the
Secretary for the purpose of indicating the
effectiveness of, and ideas for, refinement of
the grant program.
(2) Report.--The report required under paragraph
(1)(B) shall include a discussion of--
(A) the specific capabilities and functions
in local building code enforcement
administration that were addressed using funds
received under this section;
(B) the lessons learned in carrying out the
plans supported by the grant; and
(C) the manner in which the programs
supported by the grant are to be maintained by
the grantee.
(3) Content of reports.--The Secretary shall--
(A) require each recipient of a grant under
this section to file interim and final reports
under paragraph (2) to ensure that grant funds
are being used as intended and to measure the
effectiveness and benefits of the grant
program; and
(B) develop and maintain a means whereby the
public can access such reports, at no cost, via
the Internet.
(e) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Building code enforcement.--The term ``building
code enforcement'' means the enforcement of any code,
adopted by a State or local government, that regulates
the construction of buildings and facilities to
mitigate hazards to life or property. Such term
includes building codes, electrical codes, energy
codes, fire codes, fuel gas codes, mechanical codes,
and plumbing codes.
(2) Building code enforcement department.--The term
``building code enforcement department'' means an
inspection or enforcement agency of a jurisdiction that
is responsible for conducting building code
enforcement.
(3) Jurisdiction.--The term ``jurisdiction'' means a
city, county, parish, city and county authority, or
city and parish authority having local authority to
enforce building codes and regulations and to collect
fees for building permits.
(4) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated $20,000,000 for each of fiscal years 2010
through 2014 to the Secretary of Housing and Urban
Development to carry out the provisions of this
section.
(2) Reservation.--From the amount made available
under paragraph (1), the Secretary may reserve not more
than 5 percent for administrative costs.
(3) Availability.--Any funds appropriated pursuant to
paragraph (1) shall remain available until expended.
SEC. 208. SOLAR ENERGY SYSTEMS BUILDING PERMIT REQUIREMENTS FOR RECEIPT
OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.
Section 104 of the Housing and Community Development Act of
1974 (42 U.S.C. 5304) is amended by adding at the end the
following new subsection:
``(n) Requirements for Building Permits Regarding Solar
Energy Systems.--
``(1) In general.--A grant under section 106 for a
fiscal year may be made only if the grantee certifies
to the Secretary that--
``(A) in the case of a grant under section
106(a) for any Indian tribe or insular area,
during such fiscal year the cost of any permit
or license, for construction or installation of
any solar energy system for any structure, that
is required by the tribe or insular area or by
any other unit of general local government or
other political subdivision of such tribe or
insular area, complies with paragraph (2);
``(B) in the case of a grant under section
106(b) for any metropolitan city or urban
county, during such fiscal year the cost of any
permit or license, for construction or
installation of any solar energy system for any
structure, that is required by the metropolitan
city or urban county, or by any other political
subdivision of such city or county, complies
with paragraph (2); and
``(C) in the case of a grant under section
106(d) for any State, during such fiscal year
the cost of any permit or license, for
construction or installation of any solar
energy system for any structure, that is
required by the State, or by any other unit of
general local government within any
nonentitlement area of such State, or other
political subdivision within any nonentitlement
area of such State or such a unit of general
local government, complies with paragraph (2).
``(2) Limitation on cost.--The cost of permit or
license for construction or installation of any solar
energy system complies with this paragraph only if such
cost does not exceed the following amount:
``(A) Residential structures.--In the case of
a structure primarily for residential use,
$500.
``(B) Nonresidential structures.--In the case
of a structure primarily for nonresidential
use, 1.0 percent of the total cost of the
installation or construction of the solar
energy system, but not in excess of $10,000.
``(3) Noncompliance.--If the Secretary determines
that a grantee of a grant made under section 106 is not
in compliance with a certification under paragraph
(1)--
``(A) the Secretary shall notify the grantee
of such determination; and
``(B) if the grantee has not corrected such
noncompliance before the expiration of the 6-
month period beginning upon notification under
subparagraph (A), such grantee shall not be
eligible for 5 percent of any amounts awarded
under a grant under section 106 for the first
fiscal year that commences after the expiration
of such 6-month period.
``(4) Solar energy system.--For purposes of this
subsection, the term `solar energy system' means, with
respect to a structure, equipment that uses solar
energy to generate electricity for, or to heat or cool
(or provide hot water for use in), such structure.''.
SEC. 209. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL INSTALLATION OF
SOLAR ENERGY SYSTEM.
(a) Regulations.--Within 180 days after the enactment of this
Act, the Secretary of Housing and Urban Development, in
consultation with the Secretary of Energy, shall issue
regulations--
(1) to prohibit any private covenant, contract
provision, lease provision, homeowners' association
rule or bylaw, or similar restriction, that impairs the
ability of the owner or lessee of any residential
structure designed for occupancy by 1 family to
install, construct, maintain, or use a solar energy
system on such residential property; and
(2) to require that whenever any such covenant,
provision, rule or bylaw, or restriction requires
approval for the installation or use of a solar energy
system, the application for approval shall be processed
and approved by the appropriate approving entity in the
same manner as an application for approval of an
architectural modification to the property, and shall
not be willfully avoided or delayed.
(b) Contents.--The regulations required under subsection (a)
shall provide that--
(1) such a covenant, provision, rule or bylaw, or
restriction impairs the installation, construction,
maintenance, or use of a solar energy system if it--
(A) unreasonably delays or prevents
installation, maintenance, or use;
(B) unreasonably increases the cost of
installation, maintenance, or use; or
(C) precludes use of such a system; and
(2) any fee or cost imposed on the owner or lessee of
such a residential structure by such a covenant,
provision, rule or bylaw, or restriction shall be
considered unreasonable if--
(A) such fee or cost is not reasonable in
comparison to the cost of the solar energy
system or the value of its use; or
(B) treatment of solar energy systems by the
covenant, provision, rule or bylaw, or
restriction is not reasonable in comparison
with treatment of comparable systems by the
same covenant, provision, rule or bylaw, or
restriction.
(c) Solar Energy System.--For purposes of this section, the
term ``solar energy system'' means, with respect to a
structure, equipment that uses solar energy to generate
electricity for, or to heat or cool (or provide hot water for
use in), such structure.
Page 387, line 8, strike ``2011'' and insert ``2016''.
Page 387, line 15, strike ``2013'' and insert ``2018''.
Page 387, line 21, through page 388, line 4, strike paragraph
(3).
Page 388, lines 5 and 13, redesignate paragraphs (4) and (5)
as paragraphs (3) and (4), respectively.
Page 388, line 7, strike ``2011'' and insert ``2016''.
Page 388, line 12, insert ``Outdoor luminaires used for
roadway lighting applications shall be exempt the 2 light level
requirement.'' after ``luminaire under test.''.
Page 388, line 13, strike ``2017'' and insert ``2022''.
Page 388, lines 15 and 16, strike ``paragraphs (3) and (4)''
and insert ``paragraph (3)''.
Page 389, line 1, strike ``(3)'' and insert ``(2)''.
Page 389, line 7, strike ``2020'' and insert ``2025''.
Page 389, line 12, strike ``2012'' and insert ``2017''.
Page 455, line 19, through page 459, line 13, amend section
217 to read as follows:
SEC. 217. EARLY ADOPTER WATER EFFICIENT PRODUCT INCENTIVE PROGRAMS.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''
means a State government, local or county government,
tribal government, wastewater or sewerage utility,
municipal water authority, energy utility, water
utility, or nonprofit organization that meets the
requirements of subsection (b).
(2) Incentive program.--The term ``incentive
program'' means a program for administering financial
incentives for consumer purchase and installation of
residential water efficient products and services as
described in subsection (b)(1).
(3) Residential water efficient product or service.--
The term ``residential water efficient product or
service'' means a product or service for a single-
family or multifamily residence or its landscape that
is rated for water efficiency and performance--
(A) by the WaterSense program; or
(B) where a WaterSense specification does not
exist, by an incentive program.
Categories of water efficient products and services may
include faucets, irrigation technologies and services,
point-of-use water treatment devices, reuse and
recycling technologies, toilets, and showerheads.
(4) Watersense program.--The term ``WaterSense
program'' means the program established by section 215
of this Act.
(b) Eligible Entities.--An entity shall be eligible to
receive an allocation under subsection (c) if the entity--
(1) establishes (or has established) an incentive
program to provide rebates, vouchers, other financial
incentives, or direct installs to consumers for the
purchase of residential water efficient products or
services;
(2) submits an application for the allocation at such
time, in such form, and containing such information as
the Administrator may require; and
(3) provides assurances satisfactory to the
Administrator that the entity will use the allocation
to supplement, but not supplant, funds made available
to carry out the incentive program.
(c) Amount of Allocations.--For each fiscal year, the
Administrator shall determine the amount to allocate to each
eligible entity to carry out subsection (d) taking into
consideration--
(1) the population served by the eligible entity in
the most recent calendar year for which data are
available;
(2) the targeted population of the eligible entity's
incentive program, such as general households, low-
income households, or first-time homeowners, and the
probable effectiveness of the incentive program for
that population;
(3) for existing programs, the effectiveness of the
incentive program in encouraging the adoption of water
efficient products and services; and
(4) any prior year's allocation to the eligible
entity that remains unused.
(d) Use of Allocated Funds.--Funds allocated to an entity
under subsection (c) may be used to pay up to 50 percent of the
cost of establishing and carrying out an incentive program.
(e) Fixture Recycling.--Entities are encouraged to promote or
implement fixture recycling programs to manage the disposal of
older fixtures replaced due to the incentive program under this
section.
(f) Issuance of Incentives.--Financial incentives may be
provided to consumers that meet the requirements of the
incentive program. The entity may issue all financial
incentives directly to consumers or, with approval of the
Administrator, delegate some or all financial incentives
administration to other organizations including, but not
limited to, local governments, municipal water authorities, and
water utilities. The amount of a financial incentives shall be
determined by the entity, taking into consideration--
(1) the amount of the allocation to the entity under
subsection (c);
(2) the amount of any Federal, State, or other
organization's tax or financial incentive available for
the purchase of the residential water efficient product
or service;
(3) the amount necessary to change consumer behavior
to purchase water efficient products and services; and
(4) the consumer expenditures for onsite preparation,
assembly, and original installation of the product.
(g) Authorization of Appropriations.--There are authorized to
be appropriated to the Administrator to carry out this section
$50,000,000 for fiscal year 2010, $100,000,000 for fiscal year
2011, $150,000,000 for fiscal year 2012, $100,000,000 for
fiscal year 2013, and $50,000,000 for fiscal year 2014.
Page 465, line 22, insert ``, including cost effectiveness
from the consumer's perspective, and relative length of time
for consumers to recover costs attributable to the energy
efficient features,'' after ``relative energy efficiency''.
Page 496, before line 13, insert the following new sections:
SEC. 246. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND PROGRAM.
The National Institute of Standards and Technology Act (15
U.S.C. 271 et seq.) is amended by inserting after section 26
the following:
``SEC. 27. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND PROGRAM.
``(a) Purposes.--The purposes of this section are as follows:
``(1) To develop the long-term manufacturing capacity
of the United States.
``(2) To create jobs through the retooling and
expansion of manufacturing facilities to produce clean
energy technology products and energy efficient
products.
``(3) To improve the long-term competitiveness of
domestic manufacturing by increasing the energy
efficiency of manufacturing facilities.
``(4) To assist small and medium-sized manufacturers
diversify operations to respond to emerging clean
energy technology product markets.
``(b) Definitions.--In this section:
``(1) Clean energy technology product.--The term
`clean energy technology product' means technology
products relating to the following:
``(A) Wind turbines.
``(B) Solar energy.
``(C) Fuel cells.
``(D) Advanced batteries, battery systems, or
storage devices.
``(E) Biomass equipment.
``(F) Geothermal equipment.
``(G) Advanced biofuels.
``(H) Ocean energy equipment.
``(I) Carbon capture and storage.
``(J) Such other products as the Secretary
determines--
``(i) relate to the production, use,
transmission, storage, control, or
conservation of energy;
``(ii) reduce greenhouse gas
concentrations;
``(iii) achieve the earliest and
maximum emission reductions within a
reasonable period per dollar invested;
``(iv) result in the fewest non-
greenhouse gas environmental impacts;
and
``(v) either--
``(I) reduce the need for
additional energy supplies by--
``(aa) using existing
energy supplies with
greater efficiency; or
``(bb) by
transmitting,
distributing, or
transporting energy
with greater
effectiveness through
the infrastructure of
the United States; or
``(II) diversity the sources
of energy supply of the United
States--
``(aa) to strengthen
energy security; and
``(bb) to increase
supplies with a
favorable balance of
environmental effects
if the entire
technology system is
considered.
``(2) Energy efficient product.--The term `energy
efficient product' means a product that, as determined
by the Secretary in consultation with the Secretary of
Energy--
``(A) consumes significantly less energy than
the average amount that all similar products
consumed on the day before the date of the
enactment of this Act; or
``(B) is a component, system, or group of
subsystems that is designed, developed, and
validated to optimize the energy efficiency of
a product.
``(3) Hollings manufacturing extension center.--The
term `Hollings Manufacturing Extension Center' means a
center established under section 25.
``(4) Hollings manufacturing partnership program.--
The term `Hollings Manufacturing Partnership Program'
means the program established under sections 25 and 26.
``(5) Program.--The term `Program' means the grant
program established pursuant to subsection (c)(1).
``(6) Revolving loan fund.--The term `revolving loan
fund' means a revolving loan fund described in
subsection (d).
``(7) Secretary.--Except as otherwise provided, the
term `Secretary' means the Secretary of Commerce.
``(8) Small or medium-sized manufacturer.--The term
`small or medium-sized manufacturer' means a
manufacturer that employs fewer than 500 full-time
equivalent employees at a manufacturing facility that
is not owned or controlled by an automobile
manufacturer.
``(c) Grant Program.--
``(1) Establishment.--Not later than 120 days after
the date of the enactment of this section, the
Secretary shall establish a program under which the
Secretary shall award grants to States to establish
revolving loan funds to provide loans to small and
medium-sized manufacturers to finance the cost of----
``(A) reequipping, expanding, or establishing
(including applicable engineering costs) a
manufacturing facility in the United States to
produce--
``(i) clean energy technology
products;
``(ii) energy efficient products; or
``(iii) integral component parts of
clean energy technology products or
energy efficient products; or
``(B) reducing the energy intensity or
greenhouse gas production of a manufacturing
facility in the United States, including using
energy intensive feedstocks.
``(2) Maximum amount.--The Secretary may not award a
grant under the Program in an amount that exceeds
$500,000,000 in any fiscal year.
``(d) Criteria for Awarding Grants.--
``(1) Matching funds.--The Secretary may make a grant
to a State under the Program only if the State agrees
to ensure that for each loan provided by the State
under the Program, not less than 20 percent of the
amount of each loan will come from a non-Federal
source.
``(2) Administrative costs.--A State receiving a
grant under the Program may only use such amount of the
grant for the costs of administering the revolving loan
fund as the Secretary shall provide in regulations.
``(3) Application.--Each State seeking a grant under
the Program shall submit to the Secretary an
application therefor in such form and in such manner as
the Secretary considers appropriate.
``(4) Evaluation.--The Secretary shall evaluate and
prioritize an application submitted by a State for a
grant under the Program on the basis of--
``(A) the description of the revolving loan
fund to be established with the grant and how
such revolving loan fund will achieve the
purposes described in subsection (a);
``(B) whether the State will be able to
provide loans from the revolving loan fund to
small or medium-sized manufacturers before the
date that is 120 days after the date on which
the State receives the grant;
``(C) a description of how the State will
administer the revolving loan fund in
coordination with other State and Federal
programs, including programs administered by
the Assistant Secretary for Economic
Development;
``(D) a description of the actual or
potential clean energy manufacturing supply
chains, including significant component parts,
in the region served by the revolving loan
fund;
``(E) how the State will target the provision
of loans under the Program to manufacturers
located in regions characterized by high
unemployment and sudden and severe economic
dislocation, in particular where mass layoffs
have resulted in a precipitous increase in
unemployment;
``(F) the availability of a skilled
manufacturing workforce in the region served by
the revolving loan fund and the capacity of the
region's workforce and education systems to
provide pathways for unemployed or low-income
workers into skilled manufacturing employment;
``(G) a description of how the State will
target loans to small or medium-sized
manufacturers who are--
``(i) manufacturers of automobile
components; and
``(ii) either--
``(I) increasing the energy
efficiency of their
manufacturing facilities; or
``(II) retooling to
manufacture clean energy
products or energy efficient
products, including
manufacturing components to
improve the compliance of an
automobile with fuel economy
standards prescribed under
section 32902 of title 49,
United States Code;
``(H) a description of how the State will use
the loan fund to achieve the earliest and
maximum greenhouse gas emission reductions
within a reasonable period of time per dollar
invested and with the fewest non-greenhouse gas
environmental impacts; and
``(I) such other factors as the Secretary
considers appropriate to ensure that grants
awarded under the Program effectively and
efficiently achieve the purposes described in
subsection (a).
``(e) Revolving Loan Funds.--
``(1) In general.--A State receiving a grant under
the Program shall establish, maintain, and administer a
revolving loan fund in accordance with this subsection.
``(2) Deposits.--A revolving loan fund shall consist
of the following:
``(A) Amounts from grants awarded under this
section.
``(B) All amounts held or received by the
State incident to the provision of loans
described in subsection (f), including all
collections of principal and interest.
``(3) Expenditures.--Amounts in the revolving loan
fund shall be available for the provision and
administration of loans in accordance with subsection
(f).
``(4) Limitation.--No funds provided pursuant to this
section may be leveraged through use of tax-exempt
bonding authority by a State or a political subdivision
of a State.
``(f) Loans.--
``(1) In general.--A State receiving a grant under
this section shall use the amount in the revolving loan
fund to provide loans to small and medium-sized
manufacturers as described in subsection (c)(1).
``(2) Loan terms and conditions.--The following shall
apply with respect to loans provided under paragraph
(1):
``(A) Terms.--Loans shall have a term
determined by the State receiving the grant as
follows:
``(i) For fixed assets, the term of
the loan shall not exceed the useful
life of the asset and shall be less
than 15 years.
``(ii) For working capital, the term
of the loan shall not exceed 36 months.
``(B) Interest rates.--Loans shall bear an
interest rate determined by the State receiving
the grant as follows:
``(i) The interest rate shall enable
the loan recipient to accomplish the
activities described in subparagraphs
(A) and (B) of subsection (c)(1).
``(ii) The interest rate may be set
below-market interest rates.
``(iii) The interest rate may not be
less than zero percent.
``(iv) The interest rate may not
exceed the current prime rate plus 500
basis points.
``(C) Description and budget for use of loan
funds.--Each recipient of a loan from a State
under the Program shall develop and submit to
the State and the Secretary a description and
budget for the use of loan amounts, including a
description of the following:
``(i) Any new business expected to be
developed with the loan.
``(ii) Any improvements to
manufacturing operations to be
developed with the loan.
``(iii) Any technology expected to be
commercialized with the loan.
``(D) Priority in review and preference in
selection for certain loan applicants.--
``(i) Review.--In reviewing
applications submitted by small or
medium-sized manufacturers for a loan,
a recipient of a grant under the
Program shall give priority to small or
medium-sized manufacturers described in
clause (iii).
``(ii) Selection.--In selecting small
or medium-sized manufacturers to
receive a loan, a recipient of a grant
under the Program shall give preference
to small or medium-sized manufacturers
described in clause (iii).
``(iii) Priority and preferred small
or medium-sized manufacturers.--A small
or medium-sized manufacturer described
in this clause is a manufacturer that--
``(I) is certified by a
Hollings Manufacturing
Extension Center or a
manufacturing-related local
intermediary designated by the
Secretary for purposes of
providing such certification;
or
``(II) provides individuals
employed at the manufacturing
facilities of the
manufacturer--
``(aa) pay in amounts
that are, on average,
equal to or more than
the average wage of an
individual working in a
manufacturing facility
in the State; and
``(bb) health
benefits.
``(iv) Certification by hollings
manufacturing extension center.--A
Hollings Manufacturing Extension Center
or other entity designated by the
Secretary for purposes of providing
certification under clause (iii)(I)
shall only certify applications for a
loan after carrying out a qualitative
and quantitative review of the
applicant's business strategy,
manufacturing operations, and
technological ability to contribute to
the purposes described in subsection
(a).
``(E) Repayment upon relocation outside
united states.--
``(i) In general.--If a person
receives a loan under paragraph (1) to
finance the cost of reequipping,
expanding, or establishing a
manufacturing facility as described in
subsection (c)(1)(A) or to reduce the
energy intensity of a manufacturing
facility and such person relocates the
production activities of such
manufacturing facility outside the
United States during the term of the
loan, the recipient shall repay such
loan in full with interest as described
in clause (ii) and for a duration
described in clause (iii).
``(ii) Payment of interest.--Any
amount owed by the recipient of a loan
under paragraph (1) who is required to
repay the loan under clause (i) shall
bear interest at a penalty rate
determined by the Secretary to deter
recipients of loans under paragraph (1)
from relocating production activities
as described in clause (i).
``(iii) Period of repayment.--
Repayment of a loan under clause (i)
shall be for a duration determined by
the Secretary.
``(F) Compliance with wage rate
requirements.--Each recipient of a loan shall
undertake and agree to incorporate or cause to
be incorporated into all contracts for
construction, alteration or repair, which are
paid for in whole or in part with funds
obtained pursuant to such loan, a requirement
that all laborers and mechanics employed by
contractors and subcontractors performing
construction, alteration or repair shall be
paid wages at rates not less than those
determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of
title 40, United States Code (known as the
`Davis-Bacon Act'), to be prevailing for the
corresponding classes of laborers and mechanics
employed on projects of a character similar to
the contract work in the same locality in which
the work is to be performed. The Secretary of
Labor shall have, with respect to the labor
standards specified in this subparagraph, the
authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (15
F.R. 3176; 64 Stat. 1267) and section 3145 of
title 40, United States Code.
``(G) Annual reports by loan recipients.--
Each recipient of a loan issued by a State
under paragraph (1) shall, not less frequently
than once each year during the term of the
loan, submit to such State a report containing
such information as the Secretary may specify
for purposes of the Program, including
information that the Secretary can use to
determine whether a recipient of a loan is
required to repay the loan under subparagraph
(E).
``(3) Annual reports by grant recipients.--Each
recipient of a grant under the Program shall, not less
frequently than once each year, submit to the Secretary
a report on the impact of each loan issued by the State
under the Program and the aggregate impact of all loans
so issued, including the following:
``(A) The sales increased or retained.
``(B) Cost savings or costs avoided.
``(C) Additional investment encouraged.
``(D) Jobs created or retained.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $15,000,000,000
for each of fiscal years 2010 and 2011.''.
SEC. 247. CLEAN ENERGY AND EFFICIENCY MANUFACTURING PARTNERSHIPS.
(a) Hollings Manufacturing Partnership Program.--Section
25(b) of the National Institute of Standards and Technology Act
(15 U.S.C. 278k(b)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(4) the establishment of a clean energy
manufacturing supply chain initiative--
``(A) to support manufacturers in their
identification of and diversification to new
markets, including support for manufacturers
transitioning to the use of clean energy supply
chains;
``(B) to assist manufacturers improve their
competitiveness by reducing energy intensity
and greenhouse gas production, including the
use of energy intensive feedstocks;
``(C) to increase adoption and implementation
of innovative manufacturing technologies;
``(D) to coordinate and leverage the
expertise of the National Laboratories and
Technology Centers and the Industrial
Assessment Centers of the Department of Energy
to meet the needs of manufacturers; and
``(E) to identify, assist, and certify
manufacturers seeking loans under section
27(e)(1).''.
(b) Reduction in Cost Share Requirements.--Section 25(c) of
such Act (15 U.S.C. 278k(c)) is amended--
(1) in paragraph (1), by inserting ``or as provided
in paragraph (5)'' after ``not to exceed six years'';
(2) in paragraph (3)(B), by striking ``not less than
50 percent of the costs incurred for the first 3 years
and an increasing share for each of the last 3 years''
and inserting ``50 percent of the costs incurred or
such lesser percentage of the costs incurred as
determined appropriate by the Secretary by rule''; and
(3) in paragraph (5)--
(A) by striking ``at declining levels'';
(B) by striking ``one third'' and inserting
``50 percent''; and
(C) by inserting ``, or such lesser
percentage as determined appropriate by the
Secretary by rule,'' after ``maintenance
costs''.
(c) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary of Commerce for the Hollings
Manufacturing Partnership Program authorized under sections 25
of the National Institute of Standards and Technology Act (15
U.S.C. 278k) and for the provision of assistance under section
26 of such Act (15 U.S.C. 278l)--
(1) $200,000,000 for fiscal year 2010;
(2) $250,000,000 for fiscal year 2011;
(3) $300,000,000 for fiscal year 2012;
(4) $350,000,000 for fiscal year 2013; and
(5) $400,000,000 for fiscal year 2014.
SEC. 248. TECHNICAL AMENDMENTS.
(a) Amendment to National Institute of Standards and
Technology Act.--Section 25 of the National Institute of
Standards and Technology Act (15 U.S.C. 278k(b)) is amended--
(1) in subsection (a), by striking ``(hereafter in
this Act referred to as the `Centers')''; and
(2) by adding at the end the following:
``(g) Designation.--
``(1) Hollings manufacturing partnership program.--
The program under this section shall be known as the
`Hollings Manufacturing Partnership Program'.
``(2) Hollings manufacturing extension centers.--The
Regional Centers for the Transfer of Manufacturing
Technology created and supported under subsection (a)
shall be known as the `Hollings Manufacturing Extension
Centers' (in this Act referred to as the `Centers').''.
(b) Amendment to Consolidated Appropriations Act, 2005.--
Division B of title II of the Consolidated Appropriations Act,
2005 (Public Law 108-447; 118 Stat. 2879; 15 U.S.C. 278k note)
is amended under the heading ``industrial technology services''
by striking ``2007: Provided further, That'' and all that
follows through ``Extension Centers.'' and inserting ``2007.''.
Page 504, after line 8, insert the following new section:
SEC. 265. CONSUMER BEHAVIOR RESEARCH.
(a) In General.--The Secretary of Energy is authorized to
establish a research program to identify the factors affecting
consumer actions to conserve energy and make improvements in
energy efficiency. Through the program the Secretary will make
grants to public and private institutions of higher education
to study the effects of consumer behavior on total energy use;
potential energy savings from changes in consumption habits;
the ability to reduce greenhouse gas emissions through changes
in energy consumption habits; increase public awareness of
Federal climate adaptation and mitigation programs; and the
potential for alterations in consumer behavior to further
American energy independence. Grants may also fund projects
that evaluate or inform public knowledge of the effects of
energy consumption habits on these topics.
(b) Grants.--The purpose of the program is to provide grants
to public and private institutions of higher education to carry
out projects which will improve understanding of the effects of
consumer behavior on energy consumption and conservation. The
Secretary shall make grants on a competitive basis for--
(1) studies of the effects of consumer habits on
energy consumption and conservation;
(2) development of strategies that communicate the
importance of energy efficiency and conservation to
consumers;
(3) identification of best practices to improve
consumer energy use habits;
(4) education programs that inform consumers about
the implications of consumption habits on energy use
and climate change;
(5) evaluation of the effectiveness of programs
designed to promote public awareness of Federal
Government climate adaptation and mitigation
activities; and
(6) other projects that advance the mission of the
program.
(c) Report.--The Secretary of Energy shall provide Congress
with a report on progress towards establishing the program
within 120 days after the date of enactment of this Act.
(d) Authorization of Appropriations.--There are authorized to
be appropriated such sums as may be necessary to carry out this
section.
Page 521, after line 3, insert the following:
SEC. 275. INDUSTRIAL ENERGY EFFICIENCY EDUCATION AND TRAINING
INITIATIVE.
(a) In General.--The Secretary of Energy shall carry out a
national education and awareness program for the purpose of
informing building, facility, and industrial plant owners and
managers and decisionmakers, government leaders, and industry
leaders about the large energy-saving potential of greater use
of mechanical insulation, and other benefits.
(b) Purpose and Goals.--
(1) Purpose.--The purpose of the initiative shall be
to increase the energy efficiency of the commercial and
industrial sectors through an ongoing program that will
include--
(A) education and training sessions;
(B) Web-based information; and
(C) advertising.
(2) Goals.--The goals of the initiative shall be to--
(A) educate and motivate commercial building
owners and industrial facility managers to
utilize mechanical insulation in new and
existing facilities;
(B) preserve and create jobs while reducing
energy and greenhouse gas emissions;
(C) create a safer working environment and
make businesses more competitive in a global
economy; and
(D) motivate and empower the industry to make
better use of mechanical insulation through
awareness, education, and training.
(c) Report.--Not later than July 1, 2013, the Secretary shall
submit to Congress a report describing the extent by which the
initiative has been enacted and the actual and projected
effectiveness of the program under this section, including the
energy efficiency, greenhouse gas emissions reductions, cost
savings, and safety benefits at manufacturing facilities, power
plants, refineries, hospitals, universities, government
buildings, and other commercial and industrial locations.
(d) Authorization of Appropriations.--There are authorized to
be appropriated $3,500,000 for each of fiscal years 2010
through 2014 to carry out this section. The Secretary may
enter into a cooperative agreement, including grant funding,
with an industry association and union working collaboratively
and having expertise on the installation, maintenance, measure
of efficiencies and standards, and certification of mechanical
insulation in buildings and facilities.
(e) Termination of Authority.--The program carried out under
this section shall terminate on December 31, 2014.
SEC. 276. SENSE OF CONGRESS.
It is the sense of Congress that the United States should--
(1) continue to actively promote, within the
International Civil Aviation Organization, the
development of a global framework for the regulation of
greenhouse gas emissions from civil aircraft that
recognizes the uniquely international nature of the
industry and treats commercial aviation industries in
all countries fairly; and
(2) work with foreign governments towards a global
agreement that reconciles foreign carbon emissions
reduction programs to minimize duplicative requirements
and avoids unnecessary complication for the aviation
industry, while still achieving the environmental
goals.
Subtitle H--Green Resources for Energy Efficient Neighborhoods
SEC. 281. SHORT TITLE.
This subtitle may be cited as the ``Green Resources for
Energy Efficient Neighborhoods Act of 2009'' or the ``GREEN Act
of 2009''.
SEC. 282. DEFINITIONS.
For purposes of this subtitle, the following definitions
shall apply:
(1) Green building standards.--The term ``green
building standards'' means standards to require use of
sustainable design principles to reduce the use of
nonrenewable resources, encourage energy-efficient
construction and rehabilitation and the use of
renewable energy resources, minimize the impact of
development on the environment, and improve indoor air
quality.
(2) HUD.--The term ``HUD'' means the Department of
Housing and Urban Development.
(3) HUD assistance.--The term ``HUD assistance''
means financial assistance that is awarded,
competitively or noncompetitively, allocated by
formula, or provided by HUD through loan insurance or
guarantee.
(4) Nonresidential structure.--The term
``nonresidential structures'' means only nonresidential
structures that are appurtenant to single-family or
multifamily housing residential structures, or those
that are funded by the Secretary of Housing and Urban
Development through the HUD Community Development Block
Grant program.
(5) Secretary.--The term ``Secretary'', unless
otherwise specified, means the Secretary of Housing and
Urban Development.
SEC. 283. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION INCENTIVES
FOR HUD PROGRAMS.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Secretary shall issue such
regulations as may be necessary to establish annual energy
efficiency participation incentives to encourage participants
in programs administered by the Secretary, including recipients
under programs for which HUD assistance is provided, to achieve
substantial improvements in energy efficiency.
(b) Requirement for Appropriation of Funds.--The requirement
under subsection (a) for the Secretary to provide annual energy
efficiency participation incentives pursuant to the provisions
of this subtitle shall be subject to the annual appropriation
of necessary funds.
SEC. 284. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS FOR
ADDITIONAL CREDIT.
(a) Basic HUD Standard.--
(1) Residential structures.--A residential single-
family or multifamily structure shall be considered to
comply with the energy efficiency standards under this
subsection if--
(A) the structure complies with an energy
efficiency building code that has been
certified as in compliance with section 304 of
the Energy Conservation and Production Act (42
U.S.C. 6833) as amended by section 201 of this
Act, or a national energy efficiency building
code adopted pursuant to that section;
(B) the structure complies with the
applicable provisions of the American Society
of Heating, Refrigerating, and Air-Conditioning
Engineers Standard 90.1-2007, as such standard
or successor standard is in effect for purposes
of this section pursuant subsection (c);
(C) the structure complies with the
applicable provisions of the 2009 International
Energy Conservation Code, as such standard or
successor standard is in effect for purposes of
this section pursuant subsection (c);
(D) in the case only of an existing
structure, where determined cost effective, the
structure has undergone rehabilitation or
improvements, completed after the date of the
enactment of this Act, and the energy
consumption for the structure has been reduced
by at least 20 percent from the previous level
of consumption, as determined in accordance
with energy audits performed both before and
after any rehabilitation or improvements
undertaken to reduce such consumption; or
(E) the structure complies with the
applicable provisions of such other energy
efficiency requirements, standards, checklists,
or ratings systems as the Secretary may adopt
and apply by regulation, as may be necessary,
for purposes of this section for specific types
of residential single-family or multifamily
structures or otherwise, except that the
Secretary shall make a determination regarding
whether to adopt and apply any such
requirements, standards, checklists, or rating
system for purposes of this section not later
than the expiration of the 180-day period
beginning upon the date of receipt of any
written request, made in such form as the
Secretary shall provide, for such adoption and
application.
In addition to compliance with any of subparagraphs (A)
through (E), the Secretary shall by regulation require,
for any newly constructed residential single-family or
multifamily structure to be considered to comply with
the energy efficiency standards under this subsection,
that the structure have appropriate electrical outlets
with the facility and capacity to recharge a standard
electric passenger vehicle, including an electric
hybrid vehicle, where such vehicle would normally be
parked.
(2) Nonresidential structures.--For purposes of this
section, the Secretary shall identify and adopt by
regulation, as may be necessary, energy efficiency
requirements, standards, checklists, or rating systems
applicable to nonresidential structures that are
constructed or rehabilitated with HUD assistance. A
nonresidential structure shall be considered to comply
with the energy efficiency standards under this
subsection if the structure complies with the
applicable provisions of any such energy efficiency
requirements, standards, checklist, or rating systems
identified and adopted by the Secretary pursuant to
this paragraph, as such standards are in effect for
purposes of this section pursuant to subsection (c).
(3) Effect.--Nothing in this subsection may be
construed to require any structure to comply with any
standard established or adopted pursuant to this
subsection, or identified in this subsection, or to
provide any benefit or credit under any Federal program
for any structure that complies with any such standard,
except to the extent that--
(A) any provision of law other than this
subsection provides a benefit or credit under a
Federal program for compliance with a standard
established or adopted pursuant to this
subsection, or identified in this subsection;
or
(B) the Secretary specifically provides
pursuant to subsection (c) for the
applicability of such standard.
(b) Enhanced Energy Efficiency Standards for Purposes of
Providing Additional Credit Under Certain Federally Assisted
Housing Programs.--
(1) Purpose and effect.--
(A) Purpose.--The purpose of this subsection
is to establish energy efficiency and
conservation standards and green building
standards that--
(i) provide for greater energy
efficiency and conservation in
structures than is required for
compliance with the energy efficiency
standards under subsection (a) and then
in effect;
(ii) provide for green and
sustainable building standards not
required by such standards; and
(iii) can be used in connection with
Federal housing, housing finance, and
development programs to provide
incentives for greater energy
efficiency and conservation and for
green and sustainable building methods,
elements, practices, and materials.
(B) Effect.--Nothing in this subsection may
be construed to require any structure to comply
with any standard established pursuant to this
subsection or to provide any benefit or credit
under any Federal program for any structure,
except to the extent that any provision of law
other than this subsection provides a benefit
or credit under a Federal program for
compliance with a standard established pursuant
to this subsection.
(2) Compliance.--A residential or nonresidential
structure shall be considered to comply with the
enhanced energy efficiency and conservation standards
or the green building standards under this subsection,
to the extent that such structure complies with the
applicable provisions of the standards under paragraph
(3) or (4), respectively (as such standards are in
effect for purposes of this section, pursuant to
paragraph (7)), in a manner that is not required for
compliance with the energy efficiency standards under
subsection (a) then in effect and subject to the
Secretary's determination of which standards are
applicable to which structures.
(3) Energy efficiency and conservation standards.--
The energy efficiency and conservation standards under
this paragraph are as follows:
(A) Residential structures.--With respect to
residential structures:
(i) New construction.--For new
construction, the Energy Star standards
established by the Environmental
Protection Agency, as such standards
are in effect for purposes of this
subsection pursuant to paragraph (7);
(ii) Existing structures.--For
existing structures, a reduction in
energy consumption from the previous
level of consumption for the structure,
as determined in accordance with energy
audits performed both before and after
any rehabilitation or improvements
undertaken to reduce such consumption,
that exceeds the reduction necessary
for compliance with the energy
efficiency standards under subsection
(a) then in effect and applicable to
existing structures.
(B) Nonresidential structures.--With respect
to nonresidential structures, such energy
efficiency and conservation requirements,
standards, checklists, or rating systems for
nonresidential structures as the Secretary
shall identify and adopt by regulation, as may
be necessary, for purposes of this paragraph.
(4) Green building standards.--The green building
standards under this paragraph are as follows:
(A) The national Green Communities criteria
checklist for residential construction that
provides criteria for the design, development,
and operation of affordable housing, as such
checklist or successor checklist is in effect
for purposes of this section pursuant to
paragraph (7).
(B) The gold certification level for the LEED
for New Construction rating system, the LEED
for Homes rating system, the LEED for Core and
Shell rating system, as applicable, as such
systems or successor systems are in effect for
purposes of this section pursuant to paragraph
(7).
(C) The Green Globes assessment and rating
system of the Green Buildings Initiative.
(D) For manufactured housing, energy star
rating with respect to fixtures, appliances,
and equipment in such housing, as such standard
or successor standard is in effect for purposes
of this section pursuant to paragraph (7).
(E) The National Green Building Standard.
(F) Any other requirements, standards,
checklists, or rating systems for green
building or sustainability as the Secretary may
identify and adopt by regulation, as may be
necessary for purposes of this paragraph,
except that the Secretary shall make a
determination regarding whether to adopt and
apply any such requirements, standards,
checklist, or rating system for purposes of
this section not later than the expiration of
the 180-day period beginning upon date of
receipt of any written request, made in such
form as the Secretary shall provide, for such
adoption and application.
(5) Green building.--For purposes of this subsection,
the term ``green building'' means, with respect to
standards for structures, standards to require use of
sustainable design principles to reduce the use of
nonrenewable resources, minimize the impact of
development on the environment, and to improve indoor
air quality.
(6) Energy audits.--The Secretary shall establish
standards and requirements for energy audits for
purposes of paragraph (3)(A)(ii) and, in establishing
such standards, may consult with any advisory
committees established pursuant to section 285(c)(2) of
this subtitle.
(7) Applicability and updating of standards.--
(A) Applicability.--Except as provided in
subparagraph (B), the requirements, standards,
checklists, and rating systems referred to in
this subsection that are in effect for purposes
of this subsection are such requirements,
standards, checklists, and systems are as in
existence upon the date of the enactment of
this Act.
(B) Updating.--For purposes of this section,
the Secretary may adopt and apply by
regulation, as may be necessary, future
amendments and supplements to, and editions of,
the requirements, standards, checklists, and
rating systems referred to in this subsection,
including applicable energy efficiency building
codes that are certified as in compliance with
section 304 of the Energy Conservation and
Production Act (42 U.S.C. 6833) as amended by
section 201 of this Act, or national energy
efficiency building codes adopted pursuant to
that section.
(c) Authority of Secretary To Apply Standards to Federally
Assisted Housing and Programs.--
(1) HUD housing and programs.--The Secretary of
Housing and Urban Development may, by regulation,
provide for the applicability of the energy efficiency
standards under subsection (a) or the enhanced energy
efficiency and conservation standards and green
building standards under subsection (b), or both, with
respect to any covered federally assisted housing
described in paragraph (3)(A) or any HUD assistance,
subject to minimum Federal codes or standards then in
effect.
(2) Rural housing.--The Secretary of Agriculture may,
by regulation, provide for the applicability of the
energy efficiency standards under subsection (a) or the
enhanced energy efficiency and conservation standards
and green building standards under subsection (b), or
both, with respect to any covered federally assisted
housing described in paragraph (3)(B) or any assistance
provided with respect to rural housing by the Rural
Housing Service of the Department of Agriculture,
subject to minimum Federal codes or standards then in
effect.
(3) Covered federally assisted housing.--For purposes
of this subsection, the term ``covered federally
assisted housing'' means--
(A) any residential or nonresidential
structure for which any HUD assistance is
provided; and
(B) any new construction of single-family
housing (other than manufactured homes) subject
to mortgages insured, guaranteed, or made by
the Secretary of Agriculture under title V of
the Housing Act of 1949 (42 U.S.C. 1471 et
seq.).
SEC. 285. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAM FOR
MULTIFAMILY HOUSING PROJECTS ASSISTED WITH PROJECT-
BASED RENTAL ASSISTANCE.
(a) Authority.--For multifamily housing projects for which
project-based rental assistance is provided under a covered
multifamily assistance program, the Secretary shall, subject to
the availability of amounts provided in advance in
appropriation Acts, carry out a program to demonstrate the
effectiveness of funding a portion of the costs of meeting the
enhanced energy efficiency standards under section 284(b). At
the discretion of the Secretary, the demonstration program may
include incentives for housing that is assisted with Indian
housing block grants provided pursuant to the Native American
Housing Assistance and Self-Determination Act of 1996, but only
to the extent that such inclusion does not violate such Act,
its regulations, and the goal of such Act of tribal self-
determination.
(b) Goals.--The demonstration program under this section
shall be carried out in a manner that--
(1) protects the financial interests of the Federal
Government;
(2) reduces the proportion of funds provided by the
Federal Government and by owners and residents of
multifamily housing projects that are used for costs of
utilities for the projects;
(3) encourages energy efficiency and conservation by
owners and residents of multifamily housing projects
and installation of renewable energy improvements, such
as improvements providing for use of solar, wind,
geothermal, or biomass energy sources;
(4) creates incentives for project owners to carry
out such energy efficiency renovations and improvements
by allowing a portion of the savings in operating costs
resulting from such renovations and improvements to be
retained by the project owner, notwithstanding
otherwise applicable limitations on dividends;
(5) promotes the installation, in existing
residential buildings, of energy-efficient and cost-
effective improvements and renewable energy
improvements, such as improvements providing for use of
solar, wind, geothermal, or biomass energy sources;
(6) tests the efficacy of a variety of energy
efficiency measures for multifamily housing projects of
various sizes and in various geographic locations;
(7) tests methods for addressing the various, and
often competing, incentives that impede owners and
residents of multifamily housing projects from working
together to achieve energy efficiency or conservation;
and
(8) creates a database of energy efficiency and
conservation, and renewable energy, techniques, energy-
savings management practices, and energy efficiency and
conservation financing vehicles.
(c) Approaches.--In carrying out the demonstration program
under this section, the Secretary may--
(1) enter into agreements with the Building America
Program of the Department of Energy and other consensus
committees under which such programs, partnerships, or
committees assume some or all of the functions,
obligations, and benefits of the Secretary with respect
to energy savings;
(2) establish advisory committees to advise the
Secretary and any such third-party partners on
technological and other developments in the area of
energy efficiency and the creation of an energy
efficiency and conservation credit facility and other
financing opportunities, which committees shall include
representatives of homebuilders, realtors, architects,
nonprofit housing organizations, environmental
protection organizations, renewable energy
organizations, and advocacy organizations for the
elderly and persons with disabilities; any advisory
committees established pursuant to this paragraph shall
not be subject to the Federal Advisory Committee Act (5
U.S.C. App.);
(3) approve, for a period not to exceed 10 years,
additional adjustments in the maximum monthly rents or
additional project rental assistance, or additional
Indian housing block grant funds under the Native
American Housing Assistance and Self-Determination Act
of 1996, as applicable, for dwelling units in
multifamily housing projects that are provided project-
based rental assistance under a covered multifamily
assistance program, in such amounts as may be necessary
to amortize a portion of the cost of energy efficiency
and conservation measures for such projects;
(4) develop a competitive process for the award of
such additional assistance for multifamily housing
projects seeking to implement energy efficiency,
renewable energy sources, or conservation measures; and
(5) waive or modify any existing statutory or
regulatory provision that would otherwise impair the
implementation or effectiveness of the demonstration
program under this section, including provisions
relating to methods for rent adjustments, comparability
standards, maximum rent schedules, and utility
allowances; notwithstanding the preceding provisions of
this paragraph, the Secretary may not waive any
statutory requirement relating to fair housing,
nondiscrimination, labor standards, or the environment,
except pursuant to existing authority to waive
nonstatutory environmental and other applicable
requirements.
(d) Requirement.--During the 4-year period beginning 12
months after the date of the enactment of this Act, the
Secretary shall carry out demonstration programs under this
section with respect to not fewer than 50,000 dwelling units.
(e) Selection.--
(1) Scope.--In order to provide a broad and
representative profile for use in designing a program
which can become operational and effective nationwide,
the Secretary shall carry out the demonstration program
under this section with respect to dwelling units
located in a wide variety of geographic areas and
project types assisted by the various covered
multifamily assistance programs and using a variety of
energy efficiency and conservation and funding
techniques to reflect differences in climate, types of
dwelling units and technical and scientific
methodologies, and financing options. The Secretary
shall ensure that the geographic areas included in the
demonstration program include dwelling units on Indian
lands (as such term is defined in section 2601 of the
Energy Policy Act of 1992 (25 U.S.C. 3501), to the
extent that dwelling units on Indian land have the type
of residential structures that are the focus of the
demonstration program.
(2) Priority.--The Secretary shall provide priority
for selection for participation in the program under
this section based on the extent to which, as a result
of assistance provided, the project will comply with
the energy efficiency standards under subsection (a),
(b), or (c) of section 284 of this subtitle.
(f) Use of Existing Partnerships.--To the extent feasible,
the Secretary shall--
(1) utilize the Partnership for Advancing Technology
in Housing of the Department of Housing and Urban
Development to assist in carrying out the requirements
of this section and to provide education and outreach
regarding the demonstration program authorized under
this section; and
(2) consult with the Secretary of Energy, the
Administrator of the Environmental Protection Agency,
and the Secretary of the Army regarding utilizing the
Building America Program of the Department of Energy,
the Energy Star Program, and the Army Corps of
Engineers, respectively, to determine the manner in
which they might assist in carrying out the goals of
this section and providing education and outreach
regarding the demonstration program authorized under
this section.
(g) Limitation.--No amounts made available under the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5) may be
used to carry out the demonstration program under this section.
(h) Reports.--
(1) Annual.--Not later than the expiration of the 2-
year beginning upon the date of the enactment of this
Act, and for each year thereafter during the term of
the demonstration program, the Secretary shall submit a
report to the Congress annually that describes and
assesses the demonstration program under this section.
(2) Final.--Not later than 6 months after the
expiration of the 4-year period described in subsection
(d), the Secretary shall submit a final report to the
Congress assessing the demonstration program, which--
(A) shall assess the potential for expanding
the demonstration program on a nationwide
basis; and
(B) shall include descriptions of--
(i) the size of each multifamily
housing project for which assistance
was provided under the program;
(ii) the geographic location of each
project assisted, by State and region;
(iii) the criteria used to select the
projects for which assistance is
provided under the program;
(iv) the energy efficiency and
conservation measures and financing
sources used for each project that is
assisted under the program;
(v) the difference, before and during
participation in the demonstration
program, in the amount of the monthly
assistance payments under the covered
multifamily assistance program for each
project assisted under the program;
(vi) the average length of the term
of the such assistance provided under
the program for a project;
(vii) the aggregate amount of savings
generated by the demonstration program
and the amount of savings expected to
be generated by the program over time
on a per-unit and aggregate program
basis;
(viii) the functions performed in
connection with the implementation of
the demonstration program that were
transferred or contracted out to any
third parties;
(ix) an evaluation of the overall
successes and failures of the
demonstration program; and
(x) recommendations for any actions
to be taken as a result of the such
successes and failures.
(3) Contents.--Each annual report pursuant to
paragraph (1) and the final report pursuant to
paragraph (2) shall include--
(A) a description of the status of each
multifamily housing project selected for
participation in the demonstration program
under this section; and
(B) findings from the program and
recommendations for any legislative actions.
(i) Covered Multifamily Assistance Program.--For purposes of
this section, the term ``covered multifamily assistance
program'' means--
(1) the program under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) for project-based
rental assistance;
(2) the program under section 202 of the Housing Act
of 1959 (12 U.S.C. 1701q) for assistance for supportive
housing for the elderly;
(3) the program under section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
8013) for supportive housing for persons with
disabilities;
(4) the program under section 236 of the National
Housing Act (12 U.S.C. 1715z-1 for assistance for
rental housing projects;
(5) the program under section 515 of the Housing Act
of 1949 (42 U.S.C. 1485) for rural rental housing; and
(6) the program for assistance under the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4111).
(j) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section, including providing
rent adjustments, additional project rental assistance, and
incentives, $50,000,000 for each fiscal year in which the
demonstration program under this section is carried out.
(k) Regulations.--Not later than the expiration of the 180-
day period beginning on the date of the enactment of this Act,
the Secretary shall issue any regulations necessary to carry
out this section.
SEC. 286. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC HOUSING
GOALS FOR ENERGY-EFFICIENT AND LOCATION-EFFICIENT
MORTGAGES.
Section 1336(a) of the Housing and Community Development Act
of 1992 (12 U.S.C. 4566(a)), as amended by the Federal Housing
Finance Regulatory Reform Act of 2008 (Public Law 110-289; 122
Stat. 2654), is amended--
(1) in paragraph (2), by striking ``paragraph (5)''
and inserting ``paragraphs (5) and (6)''; and
(2) by adding at the end the following new paragraph:
``(6) Additional credit.--
``(A) In general.--In assigning credit toward
achievement under this section of the housing
goals for mortgage purchase activities of the
enterprises, the Director shall assign--
``(i) more than 125 percent credit,
for any such purchase that both--
``(I) complies with the
requirements of such goals; and
``(II)(aa) supports housing
that meets the energy
efficiency standards under
section 284(a) of the Green
Resources for Energy Efficient
Neighborhoods Act of 2009; or
``(bb) is a location-
efficient mortgage, as such
term is defined in section
1335(e); and
``(ii) credit in addition to credit
under clause (i), for any such purchase
that both--
``(I) complies with the
requirements of such goals, and
``(II) supports housing that
complies with the enhanced
energy efficiency and
conservation standards, or the
green building standards, under
section 284(b) of such Act, or
both,
and such additional credit shall be
given based on the extent to which the
housing supported with such purchases
complies with such standards.
``(B) Treatment of additional credit.--The
availability of additional credit under this
paragraph shall not be used to increase any
housing goal, subgoal, or target established
under this subpart.''.
SEC. 287. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY-EFFICIENT AND
LOCATION-EFFICIENT MORTGAGES.
Section 1335 of Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C. 4565), as amended by the
Federal Housing Finance Regulatory Reform Act of 2008 (Public
Law 110-289; 122 Stat. 2654), is amended--
(1) in subsection (a)(1), by adding at the end the
following new subparagraph:
``(D) Markets for energy-efficient and
location-efficient mortgages.--
``(i) Duty.--Subject to clause (ii),
the enterprise shall develop loan
products and flexible underwriting
guidelines to facilitate a secondary
market for energy-efficient and
location-efficient mortgages on housing
for very low-, low-, and moderate-
income families, and for second and
junior mortgages made for purposes of
energy efficiency or renewable energy
improvements, or both.
``(ii) Authority to suspend.--
Notwithstanding any other provision of
this section, the Director may suspend
the applicability of the requirement
under clause (i) with respect to an
enterprise, for such period as is
necessary, if the Director determines
that exigent circumstances exist and
such suspension is appropriate to
ensure the safety and soundness of the
portfolio holdings of the
enterprise.'';
(2) by adding at the end the following new
subsection:
``(e) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Energy-efficient mortgage.--The term `energy-
efficient mortgage' means a mortgage loan under which
the income of the borrower, for purposes of
qualification for such loan, is considered to be
increased by not less than $1 for each $1 of savings
projected to be realized by the borrower as a result of
cost-effective energy-saving design, construction or
improvements (including use of renewable energy
sources, such as solar, geothermal, biomass, and wind,
super-insulation, energy-saving windows, insulating
glass and film, and radiant barrier) for the home for
which the loan is made.
``(2) Location-efficient mortgage.--The term
`location-efficient mortgage' means a mortgage loan
under which--
``(A) the income of the borrower, for
purposes of qualification for such loan, is
considered to be increased by not less than $1
for each $1 of savings projected to be realized
by the borrower because the location of the
home for which loan is made will result in
decreased transportation costs for the
household of the borrower; or
``(B) the sum of the principal, interest,
taxes, and insurance due under the mortgage
loan is decreased by not less than $1 for each
$1 of savings projected to be realized by the
borrower because the location of the home for
which loan is made will result in decreased
transportation costs for the household of the
borrower.''.
SEC. 288. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA MORTGAGE
INSURANCE PROGRAMS AND NATIVE AMERICAN AND NATIVE
HAWAIIAN LOAN GUARANTEE PROGRAMS.
(a) FHA Mortgage Insurance.--
(1) Requirement.--Title V of the National Housing Act
is amended by adding after section 542 (12 U.S.C.
1735f-20) the following new section:
``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.
``(a) Underwriting Standards.--The Secretary shall establish
a method to consider, in its underwriting standards for
mortgages on single-family housing meeting the energy
efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009 that
are insured under this Act, the impact that savings on utility
costs has on the income of the mortgagor.
``(b) Goal.--It is the sense of the Congress that, in
carrying out this Act, the Secretary should endeavor to insure
mortgages on single-family housing meeting the energy
efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009 such
that at least 50,000 such mortgages are insured during the
period beginning upon the date of the enactment of such Act and
ending on December 31, 2012.''.
(2) Reporting on defaults.--Section 540(b) of the
National Housing Act (12 U.S.C. 1735f-18(b)) is amended
by adding at the end the following new paragraph:
``(3) With respect to each collection period that
commences after December 31, 2011, the total number of
mortgages on single-family housing meeting the energy
efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of
2009 that are insured by the Secretary during the
applicable collection period, the number of defaults
and foreclosures occurring on such mortgages during
such period, the percentage of the total of such
mortgages insured during such period on which defaults
and foreclosure occurred, and the rate for such period
of defaults and foreclosures on such mortgages compared
to the overall rate for such period of defaults and
foreclosures on mortgages for single-family housing
insured under this Act by the Secretary.''.
(b) Indian Housing Loan Guarantees.--
(1) Requirement.--Section 184 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z-13a)
is amended--
(A) by redesignating subsection (l) as
subsection (m); and
(B) by inserting after subsection (k) the
following new subsection:
``(l) Consideration of Energy Efficiency.--The Secretary
shall establish a method to consider, in its underwriting
standards for loans for single-family housing meeting the
energy efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009 that
are guaranteed under this section, the impact that savings on
utility costs has on the income of the borrower.''.
(2) Reporting on defaults.--Section 540(b) of the
National Housing Act (12 U.S.C. 1735f-18(b)), as
amended by subsection (a)(2) of this section, is
further amended by adding at the end the following new
paragraph:
``(4) With respect to each collection period that
commences after December 31, 2011, the total number of
loans guaranteed under section 184 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z-13a)
on single-family housing meeting the energy efficiency
standards under section 284(a) of the Green Resources
for Energy Efficient Neighborhoods Act of 2009 that are
guaranteed by the Secretary during the applicable
collection period, the number of defaults and
foreclosures occurring on such loans during such
period, the percentage of the total of such loans
guaranteed during such period on which defaults and
foreclosure occurred, and the rate for such period of
defaults and foreclosures on such loans compared to the
overall rate for such period of defaults and
foreclosures on loans for single-family housing
guaranteed under such section 184 by the Secretary.''.
(c) Native Hawaiian Housing Loan Guarantees.--
(1) Requirement.--Section 184A of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z-13b)
is amended by inserting after subsection (l) the
following new subsection:
``(m) Energy-Efficient Housing Requirement.--The Secretary
shall establish a method to consider, in its underwriting
standards for loans for single-family housing meeting the
energy efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009 that
are guaranteed under this section, the impact that savings on
utility costs has on the income of the borrower.''.
(2) Reporting on defaults.--Section 540(b) of the
National Housing Act (12 U.S.C. 1735f-18(b)), as
amended by the preceding provisions of this section, is
further amended by adding at the end the following new
paragraph:
``(5) With respect to each collection period that
commences after December 31, 2011, the total number of
loans guaranteed under section 184A of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z-13b)
on single-family housing meeting the energy efficiency
standards under section 284(a) of the Green Resources
for Energy Efficient Neighborhoods Act of 2009 that are
guaranteed by the Secretary during the applicable
collection period, the number of defaults and
foreclosures occurring on such loans during such
period, the percentage of the total of such loans
guaranteed during such period on which defaults and
foreclosure occurred, and the rate for such period of
defaults and foreclosures on such loans compared to the
overall rate for such period of defaults and
foreclosures on loans for single-family housing
guaranteed under such section 184A by the Secretary.''.
SEC. 289. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EFFICIENT MORTGAGES
EDUCATION AND OUTREACH CAMPAIGN.
Section 106 of the Energy Policy Act of 1992 (12 U.S.C.
1701z-16) is amended by adding at the end the following new
subsection:
``(g) Education and Outreach Campaign.--
``(1) Development of energy- and location-efficient
mortgages outreach program.--
``(A) Commission.--The Secretary, in
consultation and coordination with the
Secretary of Energy, the Secretary of
Education, the Secretary of Agriculture, and
the Administrator of the Environmental
Protection Agency, shall establish a commission
to develop and recommend model mortgage
products and underwriting guidelines that
provide market-based incentives to prospective
home buyers, lenders, and sellers to
incorporate energy efficiency upgrades and
location efficiencies in new mortgage loan
transactions.
``(B) Report.--Not later than 24 months after
the date of the enactment of this Act, the
Secretary shall provide a written report to the
Congress on the results of work of the
commission established pursuant to subparagraph
(A) and that identifies model mortgage products
and underwriting guidelines that may encourage
energy and location efficiency.
``(2) Implementation.--After submission of the report
under paragraph (1)(B), the Secretary, in consultation
and coordination with the Secretary of Energy, the
Secretary of Education, and the Administrator of the
Environmental Protection Agency, shall carry out a
public awareness, education, and outreach campaign
based on the findings of the commission established
pursuant to paragraph (1) to inform and educate
residential lenders and prospective borrowers regarding
the availability, benefits, advantages, and terms of
energy-efficient mortgages and location-efficient
mortgages made available pursuant to this section,
energy-efficient and location-efficient mortgages that
meet the requirements of section 1335 of the Housing
and Community Development Act of 1992 (42 U.S.C. 4565),
and other mortgages, including mortgages for
multifamily housing, that have energy improvement
features or location efficiency features and to
publicize such availability, benefits, advantages, and
terms. Such actions may include entering into a
contract with an appropriate entity to publicize and
market such mortgages through appropriate media.
``(3) Renewable energy home product expos.--The
Congress hereby encourages the Secretary of Housing and
Urban Development to work with appropriate entities to
organize and hold renewable energy expositions that
provide an opportunity for the public to view and learn
about renewable energy products for the home that are
currently on the market.
``(4) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary to carry
out this subsection $5,000,000 for each of fiscal years
2010 through 2014.''.
SEC. 290. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND LOCATION-
EFFICIENT MORTGAGES THROUGH HOME MORTGAGE
DISCLOSURE ACT.
(a) In General.--Section 304(b) of the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following new
paragraphs:
``(5) the number and dollar amount of mortgage loans
for single-family housing and for multifamily housing
that are energy-efficient mortgages (as such term is
defined in section 1335 of Housing and Community
Development Act of 1992); and
``(6) the number and dollar amount of mortgage loans
for single-family housing and for multifamily housing
that are location-efficient mortgages (as such term is
defined in section 1335 of Housing and Community
Development Act of 1992).''.
(b) Applicability.--The amendment made by subsection (a)
shall apply with respect to the first calendar year that begins
after the expiration of the 30-day period beginning on the date
of the enactment of this Act.
SEC. 291. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR HOMES NOT
CONNECTED TO ELECTRICITY GRID.
(a) Congressional Intent.--The Congress intends that--
(1) consumers shall not be denied homeowners
insurance for a dwelling (as such term is defined in
subsection (c)) based solely on the fact that the
dwelling is not connected to or able to receive
electricity service from any wholesale or retail
electric power provider;
(2) States should ensure that consumers are able to
obtain homeowners insurance for such dwellings;
(3) States should support insurers that develop
voluntary incentives to provide such insurance; and
(4) States may not prohibit insurers from offering a
homeowners insurance product specifically designed for
such dwellings.
(b) Insuring Homes and Related Property in Indian Areas.--
Notwithstanding any other provision of law, dwellings located
in Indian areas (as such term is defined in section 4 of the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103)) and constructed or maintained using
assistance, loan guarantees, or other authority under the
Native American Housing Assistance and Self-Determination Act
of 1996 may be insured by any tribally owned self-insurance
risk pool approved by the Secretary of Housing and Urban
Development.
(c) Dwelling.--For purposes of this section, the term
``dwelling'' means a residential structure that--
(1) consists of one to four dwelling units;
(2) is provided electricity from renewable energy
sources; and
(3) is not connected to any wholesale or retail
electrical power grid.
SEC. 292. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT MULTIFAMILY HOUSING.
(a) In General.--The Secretary of Housing and Urban
Development shall establish incentives for increasing the
energy efficiency of multifamily housing that is subject to a
mortgage to be insured under title II of the National Housing
Act (12 U.S.C. 1707 et seq.) so that the housing meets the
energy efficiency standards under section 284(a) of this
subtitle and incentives to encourage compliance of such housing
with the energy efficiency and conservation standards, and the
green building standards, under section 284(b) of this
subtitle, to the extent that such incentives are based on the
impact that savings on utility costs has on the operating costs
of the housing, as determined by the Secretary.
(b) Incentives.--Such incentives may include, for any such
multifamily housing that complies with the energy efficiency
standards under section 284(a)--
(1) providing a discount on the chargeable premiums
for the mortgage insurance for such housing from the
amount otherwise chargeable for such mortgage
insurance;
(2) allowing mortgages to exceed the dollar amount
limits otherwise applicable under law to the extent
such additional amounts are used to finance
improvements or measures designed to meet the standards
referred to in subsection (a); and
(3) reducing the amount that the owner of such
multifamily housing meeting the standards referred to
in subsection (a) is required to contribute.
SEC. 293. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED HOUSING WITH
MORTGAGES.
Section 526 of the National Housing Act (12 U.S.C. 1735f-
4(a)) is amended--
(1) in subsection (a)--
(A) by striking ``, other than manufactured
homes,'' each place such term appears;
(B) by inserting after the period at the end
the following: ``The energy performance
requirements developed and established by the
Secretary under this section for manufactured
homes shall require energy star rating for wall
fixtures, appliances, and equipment in such
housing.'';
(C) by inserting ``(1)'' after ``(a)''; and
(D) by adding at the end the following new
paragraphs:
``(2) The Secretary shall require, with respect to any
single- or multi-family residential housing subject to a
mortgage insured under this Act, that any approval or
certification of the housing for meeting any energy efficiency
or conservation criteria, standards, or requirements pursuant
to this title and any approval or certification required
pursuant to this title with respect to energy-conserving
improvements or any renewable energy sources, such as wind,
solar energy geothermal, or biomass, shall be conducted only by
an individual certified by a home energy rating system provider
who has been accredited to conduct such ratings by the Home
Energy Ratings System Council, the Residential Energy Services
Network, or such other appropriate national organization, as
the Secretary may provide, or by licensed professional
architect or engineer. If any organization makes a request to
the Secretary for approval to accredit individuals to conduct
energy efficiency or conservation ratings, the Secretary shall
review and approve or disapprove such request not later than
the expiration of the 6-month period beginning upon receipt of
such request.
``(3) The Secretary shall periodically examine the method
used to conduct inspections for compliance with the
requirements under this section, analyze various other
approaches for conducting such inspections, and review the
costs and benefits of the current method compared with other
methods.''; and
(2) in subsection (b), by striking ``, other than a
manufactured home,''.
SEC. 294. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.
(a) Authority.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act, the
Secretary shall develop and implement a pilot program under
this section to facilitate the financing of cost-effective
capital improvements for covered assisted housing projects to
improve the energy efficiency and conservation of such
projects.
(b) Loans.--The pilot program under this section shall
involve not less than three and not more than five lenders, and
shall provide for a privately financed loan to be made for a
covered assisted housing project, which shall--
(1) finance capital improvements for the project that
meet such requirements as the Secretary shall
establish, and may involve contracts with third parties
to perform such capital improvements, including the
design of such improvements by licensed professional
architects or engineers;
(2) have a term to maturity of not more than 20
years, which shall be based upon the duration necessary
to realize cost savings sufficient to repay the loan;
(3) be secured by a mortgage subordinate to the
mortgage for the project that is insured under the
National Housing Act; and
(4) provide for a reduction in the remaining
principal obligation under the loan based on the actual
resulting cost savings realized from the capital
improvements financed with the loan.
(c) Underwriting Standards.--The Secretary shall establish
underwriting requirements for loans made under the pilot
program under this section, which shall--
(1) require the cost savings projected to be realized
from the capital improvements financed with the loan,
during the term of the loan, to exceed the costs of
repaying the loan;
(2) allow the designer or contractor involved in
designing capital improvements to be financed with a
loan under the program to carry out such capital
improvements; and
(3) include such energy, audit, property, financial,
ownership, and approval requirements as the Secretary
considers appropriate.
(d) Treatment of Savings.--The pilot program under this
section shall provide that the project owner shall receive the
full financial benefit from any reduction in the cost of
utilities resulting from capital improvements financed with a
loan made under the program.
(e) Covered Assisted Housing Projects.--For purposes of this
section, the term ``covered assisted housing project'' means a
housing project that--
(1) is financed by a loan or mortgage that is--
(A) insured by the Secretary under--
(i) subsection (d)(3) of section 221
of the National Housing Act (12 U.S.C.
1715l), and bears interest at a rate
determined under the proviso of section
221(d)(5) of such Act; or
(ii) subsection (d)(4) of such
section 221.
(B) insured or assisted under section 236 of
the National Housing Act (12 U.S.C. 1715z-1);
(2) at the time a loan under this section is made, is
provided project-based rental assistance under section
8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) for 50 percent or more of the dwelling units in
the project; and
(3) is not a housing project owned or held by the
Secretary, or subject to a mortgage held by the
Secretary.
SEC. 295. MAKING IT GREEN.
(a) Partnerships With Tree-Planting Organizations.--The
Secretary shall establish and provide incentives for developers
of housing for which any HUD financial assistance, as
determined by the Secretary, is provided for development,
maintenance, operation, or other costs, to enter into
agreements and partnerships with tree-planting organizations,
nurseries, and landscapers to certify that trees, shrubs,
grasses, and other plants are planted in the proper manner, are
provided adequate maintenance, and survive for at least 3 years
after planting or are replaced. The financial assistance
determined by the Secretary as eligible under this section
shall take into consideration such factors as cost
effectiveness and affordability.
(b) Making It Green Plan.--In the case of any new or
substantially rehabilitated housing for which HUD financial
assistance, as determined in accordance with subsection (a), is
provided by the Secretary for the development, construction,
maintenance, rehabilitation, improvement, operation, or costs
of the housing, including financial assistance provided through
the Community Development Block Grant program under title I of
the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.), the Secretary shall require the development of a
plan that provides for--
(1) in the case of new construction and improvements,
siting of such housing and improvements in a manner
that provides for energy efficiency and conservation to
the extent feasible, taking into consideration location
and project type;
(2) minimization of the effects of construction,
rehabilitation, or other development on the condition
of existing trees;
(3) selection and installation of indigenous trees,
shrubs, grasses, and other plants based upon applicable
design guidelines and standards of the International
Society for Arboriculture;
(4) post-planting care and maintenance of the
landscaping relating to or affected by the housing in
accordance with best management practices; and
(5) establishment of a goal for minimum greenspace or
tree canopy cover for the housing site for which such
financial assistance is provided, including guidelines
and timetables within which to achieve compliance with
such minimum requirements.
(c) Partnerships.--In carrying out this section, the
Secretary is encouraged to consult, as appropriate, with
national organizations dedicated to providing housing
assistance and related services to low-income families, such as
the Alliance for Community Trees and its affiliates, the
American Nursery and Landscape Association, the American
Society of Landscape Architects, and the National Arbor Day
Foundation.
SEC. 296. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.
Title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.) is amended by adding at the end the
following new section:
``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.
``(a) In General.--To the extent amounts are made available
for grants under this section, the Secretary shall make grants
under this section to States, metropolitan cities and urban
counties, Indian tribes, and insular areas to carry out energy
efficiency improvements in new and existing single-family and
multifamily housing.
``(b) Allocations.--
``(1) In general.--Of the total amount made available
for each fiscal year for grants under this section that
remains after reserving amounts pursuant to paragraph
(2), the Secretary shall allocate for insular areas,
for metropolitan cities and urban counties, and for
States, an amount that bears the same ratio to such
total amount as the amount allocated for such fiscal
year under section 106 for Indian tribes, for insular
areas, for metropolitan cities and urban counties, and
for States, respectively, bears to the total amount
made available for such fiscal year for grants under
section 106.
``(2) Set aside for indian tribes.--Of the total
amount made available for each fiscal year for grants
under this section, the Secretary shall allocate not
less than 1 percent to Indian tribes.
``(c) Grant Amounts.--
``(1) Entitlement communities.--From the amounts
allocated pursuant to subsection (b) for metropolitan
cities and urban counties for each fiscal year, the
Secretary shall make a grant for such fiscal year to
each metropolitan city and urban county that complies
with the requirement under subsection (d), in the
amount that bears the same ratio such total amount so
allocated as the amount of the grant for such fiscal
year under section 106 for such metropolitan city or
urban county bears to the aggregate amount of all
grants for such fiscal year under section 106 for all
metropolitan cities and urban counties.
``(2) States.--From the amounts allocated pursuant to
subsection (b) for States for each fiscal year, the
Secretary shall make a grant for such fiscal year to
each State that complies with the requirement under
subsection (d), in the amount that bears the same ratio
such total amount so allocated as the amount of the
grant for such fiscal year under section 106 for such
State bears to the aggregate amount of all grants for
such fiscal year under section 106 for all States.
Grant amounts received by a State shall be used only
for eligible activities under subsection (e) carried
out in nonentitlement areas of the State.
``(3) Indian tribes.--From the amounts allocated
pursuant to subsection (b) for Indian tribes, the
Secretary shall make grants to Indian tribes that
comply with the requirement under subsection (d) on the
basis of a competition conducted pursuant to specific
criteria, as the Secretary shall establish by
regulation, for the selection of Indian tribes to
receive such amount.
``(4) Insular areas.--From the amounts allocated
pursuant to subsection (b) for insular areas, the
Secretary shall make a grant to each insular area that
complies with the requirement under subsection (d) on
the basis of the ratio of the population of the insular
area to the aggregate population of all insular areas.
In determining the distribution of amounts to insular
areas, the Secretary may also include other statistical
criteria as data become available from the Bureau of
Census of the Department of Labor, but only if such
criteria are set forth by regulation issued after
notice and an opportunity for comment.
``(d) Statement of Activities.--
``(1) Requirement.--Before receipt the receipt in any
fiscal year of a grant under subsection (c) by any
grantee, the grantee shall have prepared a final
statement of housing energy efficiency objectives and
projected use of funds as the Secretary shall require
and shall have provided the Secretary with such
certifications regarding such objectives and use as the
Secretary may require. In the case of metropolitan
cities, urban counties, units of general local
government, and insular areas receiving grants, the
statement of projected use of funds shall consist of
proposed housing energy efficiency activities. In the
case of States receiving grants, the statement of
projected use of funds shall consist of the method by
which the States will distribute funds to units of
general local government.
``(2) Public participation.--The Secretary may
establish requirements to ensure the public
availability of information regarding projected use of
grant amounts and public participation in determining
such projected use.
``(e) Eligible Activities.--
``(1) Requirement.--Amounts from a grant under this
section may be used only to carry out activities for
single-family or multifamily housing that are designed
to improve the energy efficiency of the housing so that
the housing complies with the energy efficiency
standards under section 284(a) of the Green Resources
for Energy Efficient Neighborhoods Act of 2009,
including such activities to provide energy for such
housing from renewable sources, such as wind, waves,
solar, biomass, and geothermal sources.
``(2) Preference for compliance beyond basic
requirements.--In selecting activities to be funded
with amounts from a grant under this section, a grantee
shall give more preference to activities based on the
extent to which the activities will result in
compliance by the housing with the enhanced energy
efficiency and conservation standards, and the green
building standards, under section 284(b) of such Act.
``(f) Reports.--Each grantee of a grant under this section
for a fiscal year shall submit to the Secretary, at a time
determined by the Secretary, a performance and evaluation
report concerning the use of grant amounts, which shall contain
an assessment by the grantee of the relationship of such use to
the objectives identified in the grantees statement under
subsection (d).
``(g) Applicability of CDBG Provisions.--Sections 109, 110,
and 111 of the Housing and Community Development Act of 1974
(42 U.S.C. 5309, 5310, 5311) shall apply to assistance received
under this section to the same extent and in the same manner
that such sections apply to assistance received under title I
of such Act.
``(h) Authorization of Appropriations.--There is authorized
to be appropriated for grants under this section $2,500,000,000
for fiscal year 2010 and such sums as may be necessary for each
fiscal year thereafter.''.
SEC. 297. INCLUDING SUSTAINABLE DEVELOPMENT AND TRANSPORTATION
STRATEGIES IN COMPREHENSIVE HOUSING AFFORDABILITY
STRATEGIES.
Section 105(b) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12705(b)) is amended--
(1) by striking ``and'' at the end of paragraph (19);
(2) by striking the period at the end of paragraph
(20) and inserting ``; and'';
(3) and by inserting after paragraph (20) the
following new paragraphs:
``(21) describe the jurisdiction's strategies to
encourage sustainable development for affordable
housing, including single-family and multifamily
housing, as measured by--
``(A) greater energy efficiency and use of
renewable energy sources, including any
strategies regarding compliance with the energy
efficiency standards under section 284(a) of
the Green Resources for Energy Efficient
Neighborhoods Act of 2009 and with the enhanced
energy efficiency and conservation standards,
and the green building standards, under section
284(b) of such Act;
``(B) increased conservation, recycling, and
reuse of resources;
``(C) more effective use of existing
infrastructure;
``(D) use of building materials and methods
that are healthier for residents of the
housing, including use of building materials
that are free of added known carcinogens that
are classified as Group 1 Known Carcinogens by
the International Agency for Research on
Cancer; and
``(E) such other criteria as the Secretary
determines, in consultation with the Secretary
of Energy, the Secretary of Agriculture, and
the Administrator of the Environmental
Protection Agency, are in accordance with the
purposes of this paragraph; and
``(22) describe the jurisdiction's efforts to
coordinate its housing strategy with its transportation
planning strategies to ensure to the extent practicable
that residents of affordable housing have access to
public transportation.''.
SEC. 298. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME COMMUNITY
DEVELOPMENT CAPACITY.
(a) In General.--The Secretary may make grants to nonprofit
organizations to use for any of the following purposes:
(1) Training, educating, supporting, or advising an
eligible community development organization or
qualified youth service and conservation corps in
improving energy efficiency, resource conservation and
reuse, design strategies to maximize energy efficiency,
installing or constructing renewable energy
improvements (such as wind, wave, solar, biomass, and
geothermal energy sources), and effective use of
existing infrastructure in affordable housing and
economic development activities in low-income
communities, taking into consideration energy
efficiency standards under section 284(a) of this
subtitle and with the enhanced energy efficiency and
conservation standards, and the green building
standards, under section 284(b) of this subtitle.
(2) Providing loans, grants, or predevelopment
assistance to eligible community development
organizations or qualified youth service and
conservation corps to carry out energy efficiency
improvements that comply with the energy efficiency
standards under section 284(a) of this subtitle,
resource conservation and reuse, and effective use of
existing infrastructure in affordable housing and
economic development activities in low-income
communities. In providing assistance under this
paragraph, the Secretary shall give more preference to
activities based on the extent to which the activities
will result in compliance with the enhanced energy
efficiency and conservation standards, and the green
building standards, under section 284(b) of this
subtitle.
(3) Such other purposes as the Secretary determines
are in accordance with the purposes of this subsection.
(b) Application Requirement.--To be eligible for a grant
under this section, a nonprofit organization shall prepare and
submit to the Secretary an application at such time, in such
manner, and containing such information as the Secretary may
require.
(c) Award of Contracts.--Contracts for architectural or
engineering services funded with amounts from grants made under
this section shall be awarded in accordance with chapter 11 of
title 40, United States Code (relating to selection of
architects and engineers).
(d) Matching Requirement.--A grant made under this section
may not exceed the amount that the nonprofit organization
receiving the grant certifies, to the Secretary, will be
provided (in cash or in-kind) from nongovernmental sources to
carry out the purposes for which the grant is made.
(e) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) The term ``nonprofit organization'' has the
meaning given such term in section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12704).
(2) The term ``eligible community development
organization'' means--
(A) a unit of general local government (as
defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
12704));
(B) a community housing development
organization (as defined in section 104 of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12704));
(C) an Indian tribe or tribally designated
housing entity (as such terms are defined in
section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996
(25 U.S.C. 4103)); or
(D) a public housing agency, as such term is
defined in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437(b)).
(3) The term ``low-income community'' means a census
tract in which 50 percent or more of the households
have an income which is less than 80 percent of the
greater of--
(A) the median gross income for such year for
the area in which such census tract is located;
or
(B) the median gross income for such year for
the State in which such census tract is
located.
(f) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary to carry out this section
$10,000,000 for each of fiscal years 2010 through 2014.
SEC. 299. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.
(a) Mandatory Component.--Section 24(e) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by adding
at the end the following new paragraph:
``(4) Green developments requirement.--
``(A) Requirement.--The Secretary may not
make a grant under this section to an applicant
unless the proposed revitalization plan of the
applicant to be carried out with such grant
amounts meets the following requirements:
``(i) Green communities criteria
checklist.--All residential
construction under the proposed plan
complies with the national Green
Communities criteria checklist for
residential construction that provides
criteria for the design, development,
and operation of affordable housing, as
such checklist is in effect for
purposes of this paragraph pursuant to
subparagraph (D) at the date of the
application for the grant, or any
substantially equivalent standard or
standards as determined by the
Secretary, as follows:
``(I) The proposed plan shall
comply with all items of the
national Green Communities
criteria checklist for
residential construction that
are identified as mandatory.
``(II) The proposed plan
shall comply with such other
nonmandatory items of such
national Green Communities
criteria checklist so as to
result in a cumulative number
of points attributable to such
nonmandatory items under such
checklist of not less than--
``(aa) 25 points, in
the case of any
proposed plan (or
portion thereof)
consisting of new
construction; and
``(bb) 20 points, in
the case of any
proposed plan (or
portion thereof)
consisting of
rehabilitation.
``(ii) Green buildings certification
system.--All nonresidential
construction under the proposed plan
complies with all minimum required
levels of the green building rating
systems and levels identified by the
Secretary pursuant to subparagraph (C),
as such systems and levels are in
effect for purposes of this paragraph
pursuant to subparagraph (D) at the
time of the application for the grant.
``(B) Verification.--
``(i) In general.--The Secretary
shall verify, or provide for
verification, sufficient to ensure that
each proposed revitalization plan
carried out with amounts from a grant
under this section complies with the
requirements under subparagraph (A) and
that the revitalization plan is carried
out in accordance with such
requirements and plan.
``(ii) Timing.--In providing for such
verification, the Secretary shall
establish procedures to ensure such
compliance with respect to each
grantee, and shall report to the
Congress with respect to the compliance
of each grantee, at each of the
following times:
``(I) Not later than 6 months
after execution of the grant
agreement under this section
for the grantee.
``(II) Upon completion of the
revitalization plan of the
grantee.
``(C) Identification of green buildings
rating systems and levels.--
``(i) In general.--For purposes of
this paragraph, the Secretary shall
identify rating systems and levels for
green buildings that the Secretary
determines to be the most likely to
encourage a comprehensive and
environmentally sound approach to
ratings and standards for green
buildings. The identification of the
ratings systems and levels shall be
based on the criteria specified in
clause (ii), shall identify the highest
levels the Secretary determines are
appropriate above the minimum levels
required under the systems selected.
Within 90 days of the completion of
each study required by clause (iii),
the Secretary shall review and update
the rating systems and levels, or
identify alternative systems and levels
for purposes of this paragraph, taking
into account the conclusions of such
study.
``(ii) Criteria.--In identifying the
green rating systems and levels, the
Secretary shall take into
consideration--
``(I) the ability and
availability of assessors and
auditors to independently
verify the criteria and
measurement of metrics at the
scale necessary to implement
this paragraph;
``(II) the ability of the
applicable ratings system
organizations to collect and
reflect public comment;
``(III) the ability of the
standards to be developed and
revised through a consensus-
based process;
``(IV) An evaluation of the
robustness of the criteria for
a high-performance green
building, which shall give
credit for promoting--
``(aa) efficient and
sustainable use of
water, energy, and
other natural
resources;
``(bb) use of
renewable energy
sources;
``(cc) improved
indoor and outdoor
environmental quality
through enhanced indoor
and outdoor air
quality, thermal
comfort, acoustics,
outdoor noise
pollution, day
lighting, pollutant
source control,
sustainable
landscaping, and use of
building system
controls and low- or
no-emission materials,
including preference
for materials with no
added carcinogens that
are classified as Group
1 Known Carcinogens by
the International
Agency for Research on
Cancer; and
``(dd) such other
criteria as the
Secretary determines to
be appropriate; and
``(V) national recognition
within the building industry.
``(iii) 5-year evaluation.--At least
once every 5 years, the Secretary shall
conduct a study to evaluate and compare
available third-party green building
rating systems and levels, taking into
account the criteria listed in clause
(ii).
``(D) Applicability and updating of
standards.--
``(i) Applicability.--Except as
provided in clause (ii) of this
subparagraph, the national Green
Communities criteria checklist and
green building rating systems and
levels referred to in clauses (i) and
(ii) of subparagraph (A) that are in
effect for purposes of this paragraph
are such checklist systems, and levels
as in existence upon the date of the
enactment of the Green Resources for
Energy Efficient Neighborhoods Act of
2009.
``(ii) Updating.--The Secretary may,
by regulation, adopt and apply, for
purposes of this paragraph, future
amendments and supplements to, and
editions of, the national Green
Communities criteria checklist, any
standard or standards that the
Secretary has determined to be
substantially equivalent to such
checklist, and the green building
ratings systems and levels identified
by the Secretary pursuant to
subparagraph (C).''.
(b) Selection Criteria; Graded Component.--Section 24(e)(2)
of the United States Housing Act of 1937 (42 U.S.C.
1437v(e)(2)) is amended--
(1) in subparagraph (K), by striking ``and'' at the
end;
(2) by redesignating subparagraph (L) as subparagraph
(M); and
(3) by inserting after subparagraph (K) the following
new subparagraph:
``(L) the extent to which the proposed
revitalization plan--
``(i) in the case of residential
construction, complies with the
nonmandatory items of the national
Green Communities criteria checklist
identified in paragraph (4)(A)(i), or
any substantially equivalent standard
or standards as determined by the
Secretary, but only to the extent such
compliance exceeds the compliance
necessary to accumulate the number of
points required under such paragraph;
and
``(ii) in the case of nonresidential
construction, complies with the
components of the green building rating
systems and levels identified by the
Secretary pursuant to paragraph (4)(C),
but only to the extent such compliance
exceeds the minimum level required
under such systems and levels; and''.
SEC. 299A. CONSIDERATION OF ENERGY EFFICIENCY IMPROVEMENTS IN
APPRAISALS.
(a) Appraisals in Connection With Federally Related
Transactions.--
(1) Requirement.--Section 1110 of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3339) is amended--
(A) in paragraph (1), by striking ``and'' at
the end;
(B) by redesignating paragraph (2) as
paragraph (3); and
(C) by inserting after paragraph (1) the
following new paragraph:
``(2) that such appraisals be performed in accordance
with appraisal standards that require, in determining
the value of a property, consideration of any renewable
energy sources for, or energy efficiency or energy-
conserving improvements or features of, the property;
and''.
(2) Revision of appraisal standards.--Each Federal
financial institutions regulatory agency shall, not
later than 6 months after the date of the enactment of
this Act, revise its standards for the performance of
real estate appraisals in connection with federally
related transactions under the jurisdiction of the
agency to comply with the requirement under the
amendments made by paragraph (1) of this subsection.
(b) Appraiser Certification and Licensing Requirements.--
Section 1116 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3345) is amended--
(1) in subsection (a), by inserting before the period
at the end the following: ``, and meets the
requirements established pursuant to subsection (f) for
qualifications regarding consideration of any renewable
energy sources for, or energy efficiency or energy-
conserving improvements or features of, the property'';
(2) in subsection (c), by inserting before the period
at the end the following: ``, which shall include
compliance with the requirements established pursuant
to subsection (f) regarding consideration of any
renewable energy sources for, or energy efficiency or
energy-conserving improvements or features of, the
property'';
(3) in subsection (e), by striking ``The'' and
inserting ``Except as provided in subsection (f),
the''; and
(4) by adding at the end the following new
subsection:
``(f) Requirements for Appraisers Regarding Energy Efficiency
Features.--The Appraisal Subcommittee shall establish
requirements for State certification of State certified real
estate appraisers and for State licensing of State licensed
appraisers, to ensure that appraisers consider and are
qualified to consider, in determining the value of a property,
any renewable energy sources for, or energy efficiency or
energy-conserving improvements or features of, the property.''.
(c) Guidelines for Appraising Photovoltaic Measures and
Training of Appraisers.--Section 1122 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3351) is amended by adding at the end the following new
subsection:
``(g) Guidelines for Appraising Photovoltaic Measures and
Training of Appraisers.--The Appraisal Subcommittee shall, in
consultation with the Secretary of Housing and Urban
Development, the Federal National Mortgage Association, and the
Federal Home Loan Mortgage Corporation, establish specific
guidelines for--
``(1) appraising off- and on-grid photovoltaic
measures for compliance with the appraisal standards
prescribed pursuant to section 1110(2);
``(2) requirements under section 1116(f) for
certification of State certified real estate appraisers
and for State licensing of State licensed appraisers,
to ensure that appraisers consider, and are qualified
to consider, such photovoltaic measures in determining
the value of a property; and
``(3) training of appraisers to meet the requirements
established pursuant to paragraph (2) of this
subsection.''.
SEC. 299B. HOUSING ASSISTANCE COUNCIL.
The Secretary shall require the Housing Assistance Council--
(1) to encourage each organization that receives
assistance from the Council with any amounts made
available from the Secretary to provide that any
structures and buildings developed or assisted under
projects, programs, and activities funded with such
amounts complies with the energy efficiency standards
under section 284(a) of this subtitle; and
(2) to establish incentives to encourage each such
organization to provide that any such structures and
buildings comply with the energy efficiency and
conservation standards, and the green building
standards, under section 284(b) of such Act.
SEC. 299C. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.
The Secretary shall--
(1) require each tribe, agency, organization,
corporation, and other entity that receives any
assistance from the Office of Rural Housing and
Economic Development of the Department of Housing and
Urban Development to provide that any structures and
buildings developed or assisted under activities funded
with such amounts complies with the energy efficiency
standards under section 284(a) of this subtitle; and
(2) establish incentives to encourage each such
tribe, agency, organization, corporation, and other
entity to provide that any such structures and
buildings comply with the enhanced energy efficiency
and conservation standards, and the green building
standards, under section 284(b) of such Act.
SEC. 299D. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT RENEWABLE
ENERGY SOURCES ACTIVITIES.
(a) Establishment of Fund.--There is established in the
Treasury of the United States a fund, to be known as the
``Alternative Energy Sources State Loan Fund''.
(b) Expenditures.--
(1) In general.--Subject to paragraph (2), on request
by the Secretary, the Secretary of the Treasury shall
transfer from the Fund to the Secretary such amounts as
the Secretary determines are necessary to provide loans
under subsection (c)(1).
(2) Administrative expenses.--Of the amounts in the
Fund, not more than 5 percent shall be available for
each fiscal year to pay the administrative expenses of
the Department of Housing and Urban Development to
carry out this section.
(c) Loans to States and Indian Tribes.--
(1) In general.--The Secretary shall use amounts in
the Fund to provide loans to States and Indian tribes
to provide incentives to owners of single-family and
multifamily housing, commercial properties, and public
buildings to provide--
(A) renewable energy sources for such
structures, such as wind, wave, solar, biomass,
or geothermal energy sources, including
incentives to companies and business to change
their source of energy to such renewable energy
sources and for changing the sources of energy
for public buildings to such renewable energy
sources;
(B) energy efficiency and energy conserving
improvements and features for such structures;
or
(C) infrastructure related to the delivery of
electricity and hot water for structures
lacking such amenities.
(2) Eligibility.--To be eligible to receive a loan
under this subsection, a State or Indian tribe,
directly or through an appropriate State or tribal
agency, shall submit to the Secretary an application at
such time, in such manner, and containing such
information as the Secretary may require.
(3) Criteria for approval.--The Secretary may approve
an application of a State or Indian tribe under
paragraph (2) only if the Secretary determines that the
State or tribe will use the funds from the loan under
this subsection to carry out a program to provide
incentives described in paragraph (1) that--
(A) requires that any such renewable energy
sources, and energy efficiency and energy
conserving improvements and features, developed
pursuant to assistance under the program result
in compliance of the structure so improved with
energy efficiency requirements determined by
the Secretary; and
(B) includes such compliance and audit
requirements as the Secretary determines are
necessary to ensure that the program is
operated in a sound and effective manner.
(4) Preference.--In making loans during each fiscal
year, the Secretary shall give preference to States and
Indian tribes that have not previously received a loan
under this subsection.
(5) Maximum amount.--The aggregate outstanding
principal amount from loans under this subsection to
any single State or Indian tribe may not exceed
$500,000,000.
(6) Loan terms.--Each loan under this subsection
shall have a term to maturity of not more than 10 years
and shall bear interest at annual rate, determined by
the Secretary, that shall not exceed interest rate
charged by the Federal Reserve Bank of New York to
commercial banks and other depository institutions for
very short-term loans under the primary credit program,
as most recently published in the Federal Reserve
Statistical Release on selected interest rates (daily
or weekly), and commonly referred to as the H.15
release, preceding the date of a determination for
purposes of applying this paragraph.
(7) Loan repayment.--The Secretary shall require full
repayment of each loan made under this section.
(d) Investment of Amounts.--
(1) In general.--The Secretary of the Treasury shall
invest such amounts in the Fund that are not, in the
judgment of the Secretary of the Treasury, required to
meet needs for current withdrawals.
(2) Obligations of united states.--Investments may be
made only in interest-bearing obligations of the United
States.
(e) Reports.--
(1) Reports to secretary.--For each year during the
term of a loan made under subsection (c), the State or
Indian tribe that received the loan shall submit to the
Secretary a report describing the State or tribal
alternative energy sources program for which the loan
was made and the activities conducted under the program
using the loan funds during that year.
(2) Report to congress.--Not later than September 30
of each year that loans made under subsection (c) are
outstanding, the Secretary shall submit a report to the
Congress describing the total amount of such loans
provided under subsection (c) to each eligible State
and Indian tribe during the fiscal year ending on such
date, and an evaluation on effectiveness of the Fund.
(f) Authorization of Appropriations.--There is authorized to
be appropriated to the Fund $5,000,000,000.
(g) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 4 of the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103).
(2) State.--The term ``State'' means each of the
several States, the Commonwealth of Puerto Rico, the
District of Columbia, the Commonwealth of the Northern
Mariana Islands, Guam, the Virgin Islands, American
Samoa, the Trust Territories of the Pacific, or any
other possession of the United States.
SEC. 299E. GREEN BANKING CENTERS.
(a) Insured Depository Institutions.--Section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by
adding at the end the following new subsection:
``(x) `Green Banking' Centers.--
``(1) In general.--The Federal banking agencies shall
prescribe guidelines encouraging the establishment and
maintenance of `green banking' centers by insured
depository institutions to provide any consumer who
seeks information on obtaining a mortgage, home
improvement loan, home equity loan, or renewable energy
lease with additional information on--
``(A) obtaining an home energy rating or
audit for the residence for which such mortgage
or loan is sought;
``(B) obtaining financing for cost-effective
energy-saving improvements to such property;
and
``(C) obtaining beneficial terms for any
mortgage or loan, or qualifying for a larger
mortgage or loan, secured by a residence which
meets or will meet energy efficiency standards.
``(2) Information and referrals.--The information
made available to consumers under paragraph (1) may
include--
``(A) information on obtaining a home energy
rating and contact information on qualified
energy raters in the area of the residence;
``(B) information on the secondary market
guidelines that permit lenders to provide more
favorable terms by allowing lenders to increase
the ratio on debt-to-income requirements or to
use the projected utility savings as a
compensating factor;
``(C) information including eligibility
information about, and contact information for,
any conservation or renewable energy programs,
grants, or loans offered by the Secretary of
Housing and Urban Development, including the
Energy Efficient Mortgage Program;
``(D) information including eligibility
information about, and contact information for,
any conservation or renewable energy programs,
grants, or loans offered for qualified military
personal, reservists, and veterans by the
Secretary of Veterans Affairs;
``(E) information about, and contact
information for, the Office of Efficiency and
Renewable Energy at the Department of Energy,
including the weatherization assistance
program;
``(F) information about, and contact
information for, the Energy Star Program of the
Environmental Protection Agency;
``(G) information from, and contact
information for, the Federal Citizen
Information Center of the General Services
Administration on energy-efficient mortgages
and loans, home energy rating systems, and the
availability of energy-efficient mortgage
information from a variety of Federal agencies;
and
``(H) such other information as the agencies
or the insured depository institution may
determine to be appropriate or useful.''.
(b) Insured Credit Unions.--Section 206 of the Federal Credit
Union Act (12 U.S.C. 1786) is amended by adding at the end the
following new subsection:
``(x) `Green Banking' Centers.--
``(1) In general.--The Board shall prescribe
guidelines encouraging the establishment and
maintenance of `green banking' centers by insured
credit unions to provide any member who seeks
information on obtaining a mortgage, home improvement
loan, home equity loan, or renewable energy lease with
additional information on--
``(A) obtaining an home energy rating or
audit for the residence for which such mortgage
or loan is sought;
``(B) obtaining financing for cost-effective
energy-saving improvements to such property;
and
``(C) obtaining beneficial terms for any
mortgage or loan, or qualifying for a larger
mortgage or loan, secured by a residence which
meets or will meet energy efficiency standards.
``(2) Information and referrals.--The information
made available to members under paragraph (1) may
include--
``(A) information on obtaining a home energy
rating and contact information on qualified
energy raters in the area of the residence;
``(B) information on the secondary market
guidelines that permit lenders to provide more
favorable terms by allowing lenders to increase
the ratio on debt-to-income requirements or to
use the projected utility savings as a
compensating factor;
``(C) information including eligibility
information about, and contact information for,
any conservation or renewable energy programs,
grants, or loans offered by the Secretary of
Housing and Urban Development, including the
Energy Efficient Mortgage Program;
``(D) information including eligibility
information about, and contact information for,
any conservation or renewable energy programs,
grants, or loans offered for qualified military
personal, reservists, and veterans by the
Secretary of Veterans Affairs;
``(E) information about, and contact
information for, the Office of Efficiency and
Renewable Energy at the Department of Energy,
including the weatherization assistance
program;
``(F) information from, and contact
information for, the Federal Citizen
Information Center of the General Services
Administration on energy-efficient mortgages
and loans, home energy rating systems, and the
availability of energy-efficient mortgage
information from a variety of Federal agencies;
and
``(G) such other information as the Board or
the insured credit union may determine to be
appropriate or useful.''.
SEC. 299F. GAO REPORTS ON AVAILABILITY OF AFFORDABLE MORTGAGES.
(a) Study.--The Comptroller General of the United States
shall periodically, as necessary to comply with subsection (b),
examine the impact of this subtitle and the amendments made by
this subtitle on the availability of affordable mortgages in
various areas throughout the United States, including cities
having older infrastructure and limited space for the
development of new housing.
(b) Triennial Reports.--The Comptroller General shall submit
a report once every 3 years to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate that shall
include--
(1) a detailed statement of the most recent findings
pursuant to subsection (a); and
(2) if the Comptroller General finds that this
subtitle or the amendments made by this subtitle have
directly or indirectly resulted in consequences that
limit the availability or affordability of mortgages in
any area or areas within the United States, including
any city having older infrastructure and limited space
for the development of new housing, any recommendations
for any additional actions at the Federal, State, or
local levels that the Comptroller General considers
necessary or appropriate to mitigate such effects.
The first report under this subsection shall be submitted not
later than the expiration of the 3-year period beginning on the
date of the enactment of this Act.
SEC. 299G. PUBLIC HOUSING ENERGY COST REPORT.
(a) Collection of Information by HUD.--The Secretary of
Housing and Urban Development shall obtain from each public
housing agency, by such time as may be necessary to comply with
the reporting requirement under subsection (b), information
regarding the energy costs for public housing administered or
operated by the agency. For each public housing agency, such
information shall include the monthly energy costs associated
with each separate building and development of the agency, for
the most recently completed 12-month period for which such
information is available, and such other information as the
Secretary determines is appropriate in determining which public
housing buildings and developments are most in need of repairs
and improvements to reduce energy needs and costs and become
more energy efficient.
(b) Report.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit a
report to the Congress setting forth the information collected
pursuant to subsection (a).
SEC. 299H. SECONDARY MARKET FOR RESIDENTIAL RENEWABLE ENERGY LEASE
INSTRUMENTS.
(a) Purposes.--The purposes of this section are--
(1) to encourage residential use of renewable energy
systems by minimizing up-front costs and providing
immediate utility cost savings to consumers through
leasing of such systems to homeowners;
(2) to reduce carbon emissions and the use of
nonrenewable resources;
(3) to encourage energy-efficient residential
construction and rehabilitation;
(4) to encourage the use of renewable resources by
homeowners;
(5) to minimize the impact of development on the
environment;
(6) to reduce consumer utility costs; and
(7) to encourage private investment in the green
economy.
(b) Residual Value of Renewable Energy Asset.--The Secretary
of Housing and Urban Development shall establish a means of
determining the residual value of a renewable energy asset such
that a secondary market for residential renewable energy lease
instruments may be facilitated. Such means may include, without
limitation, the calculation of residual value based on the net
present value of projected future energy production of the
renewable energy asset.
SEC. 299I. GREEN GUARANTEES.
(a) Authority To Guarantee ``Green Portion'' of Eligible
Mortgages.--
(1) In general.--The Secretary of Housing and Urban
Development may make commitments to guarantee under
this section and may guarantee, the repayment of the
portions of the principal obligations of eligible
mortgages that are used to finance eligible sustainable
building elements for the housing that is subject to
the mortgage.
(2) Amount of guarantee.--A guarantee under this
section by the Secretary in connection with an eligible
mortgage shall not exceed a percentage of the green
portion (as such term is defined in subsection (g)) of
the mortgage, as shall be established by the Secretary
and may be established on a regional basis as the
Secretary determines appropriate.
(b) Eligible Mortgages.--To be considered an eligible
mortgage for purposes of this section, a mortgage shall comply
with all of the following requirements:
(1) Acquisition or construction of housing.--The
mortgage shall be made for the acquisition or
construction of single- or multifamily housing and
repayment of the mortgage shall be secured by an
interest in such housing.
(2) Financing of eligible sustainable building
elements through green portion of mortgage.--A portion
of the principal obligation of the mortgage, which
meets the requirements under subsection (c), shall be
used only for financing the provision of eligible
sustainable building elements for the housing for which
the mortgage was made.
(3) Maximum mortgage amount.--The principal
obligation of the mortgage (including the eligible
portion of such mortgage, and such initial service
charges, appraisal, inspection, and other fees as the
Secretary shall approve) may not exceed the following
amounts:
(A) Single-family housing.--Such dollar
amounts for single-family housing as the
Secretary shall establish, which may be
established on the basis of the number of
dwelling units in the housing, as the Secretary
considers appropriate.
(B) Multifamily housing.--Such dollar amounts
for multifamily housing as the Secretary shall
establish, which may be established on the
basis of the number of dwelling units in the
housing and the number of bedrooms in such
dwelling units, as the Secretary considers
appropriate.
(4) Repayment.--The mortgage meets such requirements
as the Secretary shall establish to ensure that there
is a reasonable prospect of repayment of the principal
and interest on the obligation by the mortgagor.
(5) Mortgage terms.--The mortgage shall meet such
requirements with respect to loan-to-value ratio,
mortgagor credit scores, debt-to-income ratio, and
other underwriting standards, term to maturity,
interest rates and amortization, including amortization
of the green portion of the mortgage, and other
mortgage terms as the Secretary shall establish.
(c) Limitations on Green Portion of Mortgage.--The
requirements under this subsection with respect to the green
portion of an eligible mortgage are as follows:
(1) Percentage limitation.--Such portion shall not
exceed, in the case of single-family or multifamily
housing, 10 percent of the total principal obligation
of the mortgage.
(2) Dollar amount limitation.--Such portion shall not
exceed--
(A) in the case of single-family housing,
such maximum dollar amount limitation as the
Secretary shall establish, which may be
established on the basis of the number of
dwelling units in the housing, as the Secretary
considers appropriate; and
(B) in the case of multifamily housing, such
maximum dollar amount limitation as the
Secretary shall establish, which limitation may
be established on the basis of the number of
dwelling units in the housing and the number of
bedrooms in such dwelling units, as the
Secretary considers appropriate.
(3) Cost-effectiveness limitation.--Such portion
shall not exceed the total present value of the savings
(as determined in accordance with subsection (d))
attributable to the incorporation of the eligible
sustainable building elements to be financed with the
green portion of the mortgage that are to be realized
over the useful life of such elements.
(d) Eligible Sustainable Building Elements.--The Secretary
may not guarantee any eligible mortgage under this section
unless the mortgagor has demonstrated, in accordance with such
requirements as the Secretary shall establish, the amount of
savings attributable to incorporation of the sustainable
building elements to be financed with the green portion of the
mortgage, as measured by the National Green Building Standard
for all residential construction developed by the National
Association of Home Builders and the U.S. Green Building
Council, and approved by the American National Standards
Institute, as updated and in effect at the time of such
demonstration.
(e) Guarantee Fee.--
(1) Assessment and collection.--The Secretary shall
assess and collect fees for guarantees under this
section in amounts that the Secretary determines are
sufficient to cover the costs (as such term is defined
in section 502 of the Federal Credit Reform Act of 1990
(2 U.S.C. 661a)) of such guarantees.
(2) Availability.--Fees collected under this
subsection shall be deposited by the Secretary in the
Treasury of the United States and shall remain
available until expended, subject to such other
conditions as are contained in annual appropriations
Acts.
(f) Payment of Guarantee.--
(1) Default.--
(A) Right to payment.--If a mortgagor under a
mortgage guaranteed under this section defaults
(as defined in regulations issued by the
Secretary and specified in the guarantee
contract) on the obligation under the
mortgage--
(i) the holder of the guarantee shall
have the right to demand payment of the
unpaid amount of the guaranteed portion
of the mortgage, to the extent provided
under subsection (a)(2), from the
Secretary; and
(ii) within such period as may be
specified in the guarantee or related
agreements, the Secretary shall pay to
the holder of the guarantee, to the
extent provided under subsection
(a)(2), the unpaid interest on, and
unpaid principal of the portion of
guaranteed portion of the mortgage with
respect to which the borrower has
defaulted, unless the Secretary finds
that there was no default by the
borrower in the payment of interest or
principal or that the default has been
remedied.
(B) Forbearance.--Nothing in this paragraph
precludes any forbearance by the holder of an
eligible mortgage for the benefit of the
mortgagor which may be agreed upon by the
parties to the mortgage and approved by the
Secretary.
(2) Subrogation.--
(A) In general.--If the Secretary makes a
payment under paragraph (1), the Secretary
shall be subrogated to the rights of the
recipient of the payment as specified in the
guarantee or related agreements including, if
appropriate, the authority (notwithstanding any
other provision of law)--
(i) to complete, maintain, operate,
lease, or otherwise dispose of any
property acquired pursuant to such
guarantee or related agreements; or
(ii) to permit the mortgagor,
pursuant to an agreement with the
Secretary, to continue to occupy the
property subject to the mortgage, if
the Secretary determines such occupancy
to be appropriate.
(B) Superiority of rights.--The rights of the
Secretary, with respect to any property
acquired pursuant to a guarantee or related
agreements, shall be superior to the rights of
any other person with respect to the property.
(C) Terms and conditions.--A guarantee
agreement shall include such detailed terms and
conditions as the Secretary determines
appropriate to protect the interests of the
United States in the case of default.
(3) Full faith and credit.--The full faith and credit
of the United States is pledged to the payment of all
guarantees issued under this section with respect to
principal and interest.
(g) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Eligible mortgage.--The term ``eligible
mortgage'' means a mortgage that meets the requirements
under subsection (b).
(2) Green portion.--The term ``green portion'' means,
with respect to an eligible mortgage, the portion of
the mortgage principal referred to in subsection (b)(2)
that is attributable, as determined in accordance with
regulations issued by the Secretary, to the increased
costs incurred in financing provision of sustainable
building elements for the housing for which the
mortgage was made, as compared to the costs that would
have been incurred in financing the provision of other
building elements for the housing for the same purposes
that are commonly or conventionally used but are not
sustainable building elements.
(3) Guaranteed portion.--The term ``guaranteed
portion'' means, with respect to an eligible mortgage
guaranteed under this section, the green portion of the
mortgage that is so guaranteed.
(4) Mortgage.--The term ``mortgage'' has the meaning
given such term in section 201 of the National Housing
Act (12 U.S.C. 1707).
(5) Multifamily housing.--The term ``multifamily
housing'' means a residential property consisting of
five or more dwelling units.
(6) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
(7) Single-family housing.--The term ``single-family
housing'' means a residential property consisting of
one to four dwelling units.
(8) Sustainable building element.--The term
``sustainable building element'' means such building
elements, as the Secretary shall define, that have
energy efficiency or environmental sustainability
qualities that are superior to such qualities for other
building elements for the same purposes that are
commonly or conventionally used.
(h) Authorization of Appropriations.--There is authorized to
be appropriated for costs (as such term is defined in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of
guarantees under this section $500,000,000 for each of fiscal
years 2010 through 2014.
(i) Regulations.--The Secretary shall issue any regulations
necessary to carry out this section.
Page 566, line 22, insert ``offset'' before ``credit''.
Page 567, line 8, strike ``allowances or offset credits'' and
insert ``allowances, offset credits, or term offset credits''.
Page 567, line 11, strike ``allowances or offset credits''
and insert ``allowances, offset credits, or term offset
credits''.
Page 577, line 16, insert ``offset'' before ``credits''.
Page 578, line 3, insert ``offset'' before ``credits''.
Page 586, after line 13, insert the following new paragraph:
``(2) Term offset credits.--
``(A) In general.--Covered entities may, in
accordance with this paragraph, use non-expired
term offset credits instead of domestic offset
credits for purposes of temporarily
demonstrating compliance with this section.
``(B) Amount.--The combined quantity of term
offset credits and domestic offset credits used
by a covered entity to demonstrate compliance
for its emissions or attributable greenhouse
gas emissions in any given year shall not
exceed the quantity of domestic offset credits
that a covered entity is entitled to use for
that year to demonstrate compliance in
accordance with paragraph (1).
``(C) Expiration.--A term offset credit shall
expire in the year after its term ends. The
term of a term offset credit shall be
calculated by adding to the year of issuance
the number of years equal to the length of the
crediting period for the practice or project
for which the term offset credit was issued,
but in no case shall be later than the date 5
years from the date of issuance.
``(D) Demonstrating compliance upon
expiration of term offset credit.--With respect
to the emissions for which a covered entity is
using term offset credits to demonstrate
compliance temporarily with this section, the
owner or operator of a covered entity shall not
be considered to be in compliance with the
prohibition in subsection (a) unless, as of
12:01 a.m. on April 1 (or a later date
established by the Administrator under
subsection (j)) of the calendar year in which a
term offset credit expires, the owner or
operator holds--
``(i) for purposes of finally
demonstrating compliance, an allowance
or a domestic offset credit; or
``(ii) for purposes of temporarily
demonstrating compliance, a non-expired
term offset credit.
Domestic offset credits used for purposes of
finally demonstrating compliance under this
subparagraph shall not be subject to the
percentage limitations in subparagraph (B).
``(E) Financial assurance.--A covered entity
may not use a term offset credit to demonstrate
compliance temporarily unless it simultaneously
provides to the Administrator financial
assurance that, at the end of the term offset
credit's crediting term, the covered entity
will have sufficient resources to obtain the
quantity of allowances or credits necessary to
demonstrate final compliance. The Administrator
shall issue regulations establishing
requirements for such financial assurance,
which shall take into account the increased
risk associated with longer crediting terms.
These regulations shall take into account the
total number of tons of carbon dioxide
equivalent of greenhouse gas emissions for
which a covered entity is demonstrating
compliance temporarily, and may set a limit on
this amount. In the event that a covered entity
that used term offset credits to demonstrate
compliance temporarily fails to meet the
requirements of subparagraph (D) at the end of
the term offset credits' crediting term, if the
financial assurance mechanism fails to provide
to the Administrator the number of allowances
or offset credits for which the crediting term
has expired, then the Administrator shall
retire that number of allowances with the
vintage year 2 years after the year in which
the term offset credit expires in the same
amount. Allowances so retired shall not be
counted as emission allowances established for
that calendar year under section 721(a).
Page 586, lines 14 and 19, redesignate paragraphs (2) and (3)
as paragraphs (3) and (4), respectively.
Page 590, line 12, insert ``In the event that a covered
entity fails to demonstrates compliance at the expiration of a
term offset credit's crediting term as required by section
722(d)(2)(D), the year of the violation shall be the year in
which the term offset credit expires.'' after ``a separate
violation.''.
Page 590, line 16, insert ``, (d)(2),'' after ``section
722(a)''.
Page 591, line 25, insert ``, (d)(2),'' after ``section
722(a)''.
Page 593, line 2, strike ``allowance or offset credit'' and
insert ``allowance, offset credit, or term offset credit''.
Page 593, lines 10 and 11, strike ``allowances and offset
credits'' and insert ``allowances, offset credits, and term
offset credits''.
Page 594, lines 2 through 4, strike ``allowance or offset
credit established or issued by the Administrator under this
title,'' and insert ``allowance, offset credit, or term offset
credit, established or issued under the American Clean Energy
and Security Act of 2009 or the amendments made thereby,''.
Page 594, line 7, strike ``allowances or offset credits'' and
insert ``allowances, offset credits, or term offset credits''.
Page 594, lines 9 through 11, strike ``allowance or offset
credit established or issued by the Administrator under this
title'' and insert ``allowance, offset credit, or term offset
credit, established or issued under the American Clean Energy
and Security Act of 2009 or the amendments made thereby,''.
Page 609, line 8, insert ``by promulgating new regulations''
after ``subsection (i)''.
Page 690, lines 18 and 19, strike ``allowances or offset
credits'' and insert ``allowances, offset credits, or term
offset credits''.
Page 691, lines 9 through 12, amend paragraph (17) to read as
follows:
``(17) Domestic offset credit.--For purposes of part
D, the term `domestic offset credit' means an offset
credit issued under part D, other than an international
offset credit. For purposes of part C, the term means
any offset credit issued under the American Clean
Energy and Security Act of 2009, or the amendments made
thereby. The term does not include a term offset
credit.
Page 693, beginning line 13, strike paragraph (29), relating
to the definition of high conservation priority land.
Page 693, line 24, strike ``allowance or offset credit'' and
insert ``allowance, offset credit, or term offset credit''.
Page 696, lines 1 and 2, amend paragraph (38) to read as
follows:
``(38) Offset credit.--For purposes of this section
and part D, the term `offset credit' means an offset
credit issued under part D. For purposes of part C, the
term means any offset credit issued under the American
Clean Energy and Security Act of 2009, or the
amendments made thereby. The term does not include a
term offset credit.
Page 696, beginning line 15, strike paragraph (42), relating
to the definition of renewable biomass, and insert the
following new paragraph:
``(42) Renewable biomass.--The term `renewable
biomass' means any of the following:
``(A) Materials, pre-commercial thinnings, or
removed invasive species from National Forest
System land and public lands (as defined in
section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)),
including those that are byproducts of
preventive treatments (such as trees, wood,
brush, thinnings, chips, and slash), that are
removed as part of a federally recognized
timber sale, or that are removed to reduce
hazardous fuels, to reduce or contain disease
or insect infestation, or to restore ecosystem
health, and that are--
``(i) not from components of the
National Wilderness Preservation
System, Wilderness Study Areas,
Inventoried Roadless Areas, old growth
stands, late-successional stands
(except for dead, severely damaged, or
badly infested trees), components of
the National Landscape Conservation
System, National Monuments, National
Conservation Areas, Designated
Primitive Areas, or Wild and Scenic
Rivers corridors;
``(ii) harvested in environmentally
sustainable quantities, as determined
by the appropriate Federal land
manager; and
``(iii) harvested in accordance with
Federal and State law, and applicable
land management plans.
``(B) Any organic matter that is available on
a renewable or recurring basis from non-Federal
land or land belonging to an Indian or Indian
tribe that is held in trust by the United
States or subject to a restriction against
alienation imposed by the United States,
including--
``(i) renewable plant material,
including--
``(I) feed grains;
``(II) other agricultural
commodities;
``(III) other plants and
trees; and
``(IV) algae; and
``(ii) waste material, including--
``(I) crop residue;
``(II) other vegetative waste
material (including wood waste
and wood residues);
``(III) animal waste and
byproducts (including fats,
oils, greases, and manure);
``(IV) construction waste;
and
``(V) food waste and yard
waste.
``(C) Residues and byproducts from wood,
pulp, or paper products facilities.''.
Page 700, lines 2 and 3, strike ``allowance or offset credit
established or issued under this title,'' and insert
``allowance, offset credit, or term offset credit, established
or issued under the American Clean Energy and Security Act of
2009 or the amendments made thereby,''.
Page 700, lines 6 and 7, strike ``allowance or offset
credit'' and insert ``allowance, offset credit, or term offset
credit''.
Page 704, line 1, strike ``entities''.
Page 705, after line 24, insert the following new paragraph:
``(3) For vintage year 2012, the Administrator shall allocate
0.35 percent of emission allowances established for such year
under section 721(a) to avoid disincentives to the continued
use of existing energy-efficient cogeneration facilities at
industrial parks, to be distributed in accordance with section
783(f).
Page 713, after line 12, insert the following new paragraph:
``(3) To be distributed among the States in
accordance with the formula in section 132(b) of the
American Clean Energy and Security Act of 2009 and to
be used exclusively for the purposes of section 202 of
the American Clean Energy and Security Act of 2009 in
the following amounts:
``(A) For vintage years 2012 through 2017,
0.05 percent of the emission allowances
established for each year under section 721(a).
``(B) For vintage years 2018 through 2050,
0.03 percent of the emission allowances
established for each year under section 721(a).
Page 715, lines 12 and 15, redesignate paragraphs (1) and (2)
as subparagraphs (A) and (B), respectively, and move them 2 ems
to the right.
Page 715, lines 18 through 24, move the matter 2 ems to the
right.
Page 715, after line 24, insert the following new paragraph:
``(2) The Administrator shall auction, pursuant to
section 791, 0.75 percent of the emission allowances
established for each of vintage years 2012 and 2013
under section 721(a), and shall deposit the proceeds in
the Energy Efficiency and Renewable Energy Worker
Training Fund established by section 422 of the
American Clean Energy and Security Act of 2009.
Page 720, line 10, insert ``and subsections (s) and (t)''
after ``(a) through (o)''.
Page 720, line 15, insert ``and subsections (s) and (t)''
after ``(a) through (o)''.
Page 722, line 3, strike ``or''.
Page 722, line 5, insert ``or supplemental agriculture and
renewable energy pursuant to subsection (u)(2) of this
section,'' after ``of this section,''.
Page 723, line 10, strike ``(e)(2) and (f)(2)'' and insert
``(e)(2), (f)(2), and (u)(2)''.
Page 723, lines 23 and 24, strike ``(e)(2) and (f)(2)'' and
insert ``(e)(2), (f)(2), and (u)(2)''.
Page 724, after line 8, insert the following new subsections:
``(t) Compensation for Early Actors.--For vintage year 2012,
the Administrator shall allocate for compensation for early
actors 1 percent of emission allowances established under
section 721(a), to be distributed in accordance with section
795 of the American Clean Energy and Security Act of 2009.
``(u) Supplemental Agriculture and Renewable Energy.--
``(1) In general.--For vintage years 2012 through
2016, the Administrator shall allocate 0.28 percent of
emission allowances established under section 721(a),
to be distributed in accordance with section 788 of the
American Clean Energy and Security Act of 2009.
``(2) Carryover.--After the Administrator distributes
emission allowances pursuant to section 788 for any
given vintage year, any emission allowances allocated
to supplemental agriculture and renewable energy
pursuant to this subsection that have not been so
distributed shall, in accordance with subsection (s),
be exchanged for allowances from the following vintage
year and treated as part of the allocation to such
entities for that later vintage year.
Page 729, line 4, strike ``September 30, 2012'' and insert
``January 1, 2013''.
Page 729, lines 9 and 10, strike ``September 30, 2012'' and
insert ``January 1, 2013''.
Page 733, line 3, page 738, line 21, page 741, line 14, page
743, line 13, page 756, line 8, strike ``(f)'' and insert
``(g)''.
Page 747, lines 21, through 23, strike ``provided that such
year shall not be any year after 2012; or'' and insert ``if
such unit commences operation before January 1, 2012;''.
Page 748, line 3, strike the period and insert ``, and before
October 1, 2012; or''.
Page 748, after line 3, insert the following new clause:
``(iii) calendar year 2013, if such
unit commences operation on or after
October 1, 2012, and before January 1,
2013.
Page 757, after line 19, insert the following new subsection:
(f) Certain Cogeneration Facilities.--
(1) Eligible cogeneration facilities.--For purposes
of this subsection, an ``eligible cogeneration
facility'' is a facility that--
(A) is a qualifying co-generation facility
(as that term is defined in section 3(18)(B) of
the Federal Power Act (16 U.S.C. 796(18)(B));
(B) derives 80 percent or more of its heat
input from coal, petroleum coke, or any
combination of these 2 fuels;
(C) has a nameplate capacity of 100 megawatts
or greater;
(D) was in operation as of January 1, 2009,
and remains in operation as of the date of any
distribution of emission allowances under this
subsection;
(E) in calendar years 2006 through 2008 sold,
and as of the date of any distribution of
emission allowances under this section sells,
steam or electricity directly and solely to
multiple, separately-owned industrial or
commercial facilities co-located at the same
site with the cogeneration facility; and
(F) is not eligible to receive allowances
under any other subsection of this section or
under part F of this title.
(2) Distribution.--The Administrator shall distribute
the emission allowances allocated pursuant to section
782(a)(3) to owners or operators of eligible
cogeneration facilities ratably based on the carbon
dioxide emissions of each such facility in calendar
years 2006 through 2008. The Administrator--
(A) shall not, in any year, distribute
emission allowances under this subsection to
the owner or operator of any eligible
cogeneration facility in excess of the amount
necessary to offset such facility's cost of
compliance with the requirements of this title
in that year; and
(B) may distribute such allowances over a
period of years if annual distributions under
this subsection would otherwise exceed the
limitation in subparagraph (A), provided that
in no event shall distributions be made under
this subsection after calendar year 2025.
(3) Requirements.--The Administrator shall, by
regulation, establish requirements to ensure that the
value of any emission allowances distributed pursuant
to this subsection are passed through, on an equitable
basis, to the facilities to which the relevant
cogeneration facility provides electricity or steam
deliveries, including any facility owned or operated by
the owner or operator of the cogeneration facility.
Page 757, line 20, redesignate subsection (f) as subsection
(g).
Page 774, line 16, amend section 788 to read as follows:
``SEC. 788. SUPPLEMENTAL AGRICULTURE AND RENEWABLE ENERGY INCENTIVES
PROGRAMS.
``(a) In General.--Emission allowances allocated pursuant to
section 782(u) shall be distributed by the Administrator at the
direction of the Secretary of Energy and the Secretary of
Agriculture in accordance with this section. Not less than 50
percent of the allowances shall be available for the program
established pursuant to subsection (b).
``(b) Agriculture Incentives Program.--
``(1) Establishment.--The Secretary of Agriculture
shall establish by rule a program to provide incentives
in the form of emission allowances for activities
undertaken in the agriculture sector that reduce
greenhouse gas emissions or sequester carbon. Under
this program, the Secretary of Agriculture shall
provide incentives for projects and activities that--
``(A) reduce or avoid greenhouse gas
emissions, or sequester greenhouse gases, but
do not meet the criteria for offset credits
established under the American Clean Energy and
Security Act of 2009;
``(B) support actions to adapt to climate
change; or
``(C) prevent conversion of land that would
increase greenhouse gas emissions (including
projects and activities that complement or
supplement conservation programs administered
by the Secretary).
``(2) Considerations.--In designing this program, the
Secretary shall ensure that it provides support for--
``(A) development and demonstration of
practices to reduce greenhouse gas emissions or
sequester carbon in agricultural operations
where there are limited recognized
opportunities to achieve such emissions
reductions or sequestration; and
``(B) projects that reduce greenhouse gas
emissions or increase sequestration of
greenhouse gases and also achieve other
significant environmental benefits, such as the
improvement of water or air quality.
``(3) Research.--The Secretary shall establish by
rule a program to conduct research to develop
additional projects and activities for crops to find
additional techniques and methods to reduce greenhouse
gas emissions or sequester greenhouse gases that may or
may not meet the criteria for offset credits
established under the American Clean Energy and
Security Act of 2009.
``(4) Use of information.--Information and data
generated by this program should, where relevant, be
used to inform the development of additional offset
practices and methodologies.
``(c) Renewable Energy Incentives Program.--The Secretary of
Energy and the Administrator shall establish by rule a program
to provide allowances to State and local governments to support
the deployment of renewable energy infrastructure.''.
Page 776, line 4, strike ``and''.
Page 776, line 8, strike the period and insert ``; and''.
Page 776, after line 8, insert the following new paragraph:
``(4) require that, once exchanged, the credit or
other instrument be retired for purposes of use under
the program by or for which it was originally issued.
Page 785, line 16, strike the closing quotation mark and the
second period.
Page 785, after line 16, insert the following new section:
``SEC. 795. EXCHANGE FOR EARLY ACTION OFFSET CREDITS.
``(a) In General.--Emission allowances allocated pursuant to
section 782(t) shall be distributed by the Administrator in
accordance with this section. Not later than one year after the
date of enactment of this title, the Administrator shall issue
regulations allowing--
``(1) any person in the United States to exchange
instruments in the nature of offset credits issued
before January 1, 2009, by a State or voluntary offset
program with respect to which the Administrator has
made an affirmative determination under section
740(a)(2), for emissions allowances established by the
Administrator under section 721(a); and
``(2) the Administrator to provide compensation in
the form of emission allowances to entities that do not
meet the criteria of paragraph (1) and meet the
criteria of this paragraph for documented early
reductions or avoidance of greenhouse gas emissions or
greenhouse gases sequestered before January 1, 2009,
from projects begun before January 1, 2009, where--
``(A) the entity publicly stated greenhouse
gas reduction goals and publicly reported
against those goals;
``(B) the entity demonstrated entity-wide net
greenhouse gas reductions; and
``(C) the entity demonstrates the actual
projects undertaken to make reductions and
documents the reductions (e.g., through
documentation of engineering projects).
``(b) Regulations.--Regulations issued under subsection (a)
shall--
``(1) provide that a person exchanging credits under
subsection (a)(1) receive emission allowances
established under section 721(a) in an amount for which
the monetary value is equivalent to the average
monetary value of the credits during the period from
January 1, 2006, to January 1, 2009, as adjusted for
inflation to reflect current dollar values at the time
of the exchange;
``(2) provide that a person receiving compensation
for documented early action under subsection (a)(2)
shall receive emission allowances established under
section 721(a) in an amount that is approximately
equivalent in value to the carbon dioxide equivalent
per ton value received by entities in exchange for
credits under paragraph (1) (as adjusted for inflation
to reflect current dollar values at the time of the
exchange), as determined by the Administrator;
``(3) provide that only reductions or avoidance of
greenhouse gas emissions, or sequestration of
greenhouse gases, achieved by activities in the United
States between January 1, 2001, and January 1, 2009,
may be compensated under this section, and only credits
issued for such activities may be exchanged under this
section;
``(4) provide that only credits that have not been
retired or otherwise used to meet a voluntary or
mandatory commitment, and have not expired, may be
exchanged under subsection (a)(1);
``(5) require that, once exchanged, the credit be
retired for purposes of use under the program by or for
which it was originally issued; and
``(6) establish a deadline by which persons must
exchange the credits or request compensation for early
action under this section.
``(c) Participation.--Participation in an exchange of credits
for allowances or compensation for early action authorized by
this section shall not preclude any person from participation
in an offset credit program established under the American
Clean Energy and Security Act of 2009.
``(d) Distribution.--Of the emission allowances distributed
under this section, a quantity equal to 0.75 percent of vintage
year 2012 emission allowances established under section 721(a)
shall be distributed pursuant to subsection (a)(1), and a
quantity equal to 0.25 percent of vintage year 2012 emission
allowances established under section 721(a) shall be
distributed pursuant to subsection (a)(2).''.
Page 856, after line 8, insert the following new section:
SEC. 340. REDUCING ACID RAIN AND MERCURY POLLUTION.
Not later than 18 months after the date of enactment of this
Act, the Administrator shall submit to Congress a report that
analyzes the effects of different carbon dioxide reduction
strategies and technologies on the emissions of mercury, sulfur
dioxide, and nitrogen oxide, which cause acid rain, particulate
matter, ground level ozone, mercury contamination, and other
environmental problems. The report shall assess a variety of
carbon reduction technologies, including the application of
various carbon capture and sequestration technologies for both
new and existing power plants. The report shall assess the
current scientific and technical understanding of the interplay
between the various technologies and emissions of air
pollutants, identify hurdles to strategies that could cost-
effectively reduce emissions of multiple pollutants, and make
appropriate recommendations.
Page 856, strike lines 19 through 21.
Page 856, line 22, strike ``(2)'' and insert ``(1)''.
Page 857, strike lines 1 through 8.
Page 857, line 9, strike ``(5)'' and insert ``(2)''.
Page 857, strike line 15 and all that follows through line 7
on page 858.
Page 858, line 8, strike ``(7)'' and insert ``(3)''.
Page 858, beginning on line 23, strike ``(including an
entity's fraudulent or manipulative conduct with respect to
regulated allowance derivatives that benefits the entity in
regulated allowance markets)''.
Page 860, line 3, strike ``over-the-counter trading'' and
insert ``trading regulated allowances outside of trading
facilities''.
Page 870, strike line 18 and all that follows through line 5
on page 871.
Page 871, line 6, strike ``(7)'' and insert ``(6)''.
Page 871, strike line 20 and all that follows through line 2
on page 876.
Page 876, line 3, strike ``(d)'' and insert ``(c)''.
Page 876, line 10, strike ``President'' and insert
``Commodity Futures Trading Commission''.
Page 876, line 19, strike ``President'' and insert
``Commodity Futures Trading Commission''.
Page 877, strike lines 1 through 11.
Page 877, line 12, strike ``(f)'' and insert ``(d)''.
Page 877, line 21, strike ``(g)'' and insert ``(e)''.
Page 878, line 4, strike ``(h)'' and insert ``(f)''.
Page 878, beginning on line 7, strike ``Federal agency with
jurisdiction over regulated allowance derivatives pursuant to
subsection (c)(1)'' and insert ``Commodity Futures Trading
Commission''.
Page 878, line 9, strike ``collect and''.
Page 878, strike line 24 and all that follows through line 7
on page 879.
Page 879, line 8, strike ``(E)'' and insert ``(D)''.
Page 879, line 12, strike ``(F)'' and insert ``(E)''.
Page 879, line 14, strike ``(G)'' and insert ``(F)''.
Page 879, line 17, strike ``(H)'' and insert ``(G)''.
Page 879, beginning on line 18, strike ``in conjunction with
the entities, deems'' and insert ``and the Commodity Futures
Trading Commission deem''.
Page 879, line 23, strike ``Federal agency'' and insert
``Commodity Futures Trading Commission''.
Page 879, line 24, insert ``Committee on Agriculture and''
before ``Committee''.
Page 879, line 25, insert ``Committee on Agriculture,
Nutrition, and Forestry and'' before ``Committee''.
Page 880, beginning on line 5, strike ``, in conjunction with
the Federal agency, considers'' and insert ``and the Commodity
Futures Trading Commission consider''.
Page 880, strike lines 12 through 22.
Page 880, line 23, strike ``(c)'' and insert ``(b)''.
Page 881, line 5, strike ``(d)'' and insert ``(c)''.
Page 881, line 6, strike ``401(f)'' and insert ``401(d)''.
Page 882, before line 5, insert the following:
SEC. 342. CARBON DERIVATIVE MARKETS.
(a) Section 1a(14) of the Commodity Exchange Act (7 U.S.C.
1a(14)) is amended by striking ``or an agricultural commodity''
and inserting ``, an agricultural commodity, or any emission
allowance, compensatory allowance, offset credit, or Federal
renewable electricity credit established or issued under the
American Clean Energy and Security Act of 2009''.
(b) Section 4(c) of such Act (7 U.S.C. 6(c)) is amended by
adding at the end the following:
``(6) This subsection does not apply to any
agreement, contract, or transaction for any emission
allowance, compensatory allowance, offset credit, or
Federal renewable electricity credit established or
issued under the American Clean Energy and Security Act
of 2009.''.
Page 913, strike line 6 and all that follows through line 8
on page 914 and insert the following:
SEC. 358. EFFECT OF DERIVATIVES REGULATORY REFORM LEGISLATION.
(a) Statutes.--Upon the passage of legislation that includes
derivatives regulatory reform, sections 351, 352, 354, 355,
356, and 357 shall be repealed.
(b) Regulations.--Upon the passage of legislation that
includes derivatives regulatory reform, any regulations
promulgated under section 351, 352, 354, 355, 356, or 357 shall
be considered null and void.
Page 923, after line 13, insert the following new section:
SEC. 360. PRESIDENTIAL REVIEW OF REGULATIONS.
Not later than 24 months after the date of enactment of this
Act, the President shall review the offset regulations and
derivatives regulations promulgated pursuant to the American
Clean Energy and Security Act of 2009. The President shall
determine whether such regulations adequately protect the
United States financial system from systemic risk.
Page 923, line 16, through page 951, line 13, amend subtitle
A to read as follows:
Subtitle A--Ensuring Real Reductions in Industrial Emissions
SEC. 401. ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS.
Title VII of the Clean Air Act is amended by inserting after
part E the following new part:
``PART F--ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS
``SEC. 761. PURPOSES.
``(a) Purposes of Part.--The purposes of this part are--
``(1) to promote a strong global effort to
significantly reduce greenhouse gas emissions, and,
through this global effort, stabilize greenhouse gas
concentrations in the atmosphere at a level that will
prevent dangerous anthropogenic interference with the
climate system; and
``(2) to prevent an increase in greenhouse gas
emissions in countries other than the United States as
a result of direct and indirect compliance costs
incurred under this title.
``(b) Purposes of Subpart 1.--The purposes of subpart 1 are
additionally--
``(1) to provide a rebate to the owners and operators
of entities in domestic eligible industrial sectors for
their greenhouse gas emission costs incurred under this
title, but not for costs associated with other related
or unrelated market dynamics;
``(2) to design such rebates in a way that will
prevent carbon leakage while also rewarding innovation
and facility-level investments in energy efficiency
performance improvements; and
``(3) to eliminate or reduce distribution of emission
allowances under subpart 1 when such distribution is no
longer necessary to prevent carbon leakage from
eligible industrial sectors.
``(c) Purposes of Subpart 2.--The purposes of subpart 2 are
additionally--
``(1) to induce foreign countries, and, in
particular, fast-growing developing countries, to take
substantial action with respect to their greenhouse gas
emissions consistent with the Bali Action Plan
developed under the United Nations Framework Convention
on Climate Change; and
``(2) to ensure that the measures described in
subpart 2 are designed and implemented in a manner
consistent with applicable international agreements to
which the United States is a party.
``SEC. 762. DEFINITIONS.
``In this part:
``(1) Carbon leakage.--The term `carbon leakage'
means any substantial increase (as determined by the
Administrator) in greenhouse gas emissions by
industrial entities located in other countries if such
increase is caused by an incremental cost of production
increase in the United States resulting from the
implementation of this title.
``(2) Covered good.--The term `covered good' means a
good that, as identified by the Administrator by
regulation, is either--
``(A) entered under a heading or subheading
of the Harmonized Tariff Schedule of the United
States that corresponds to the NAICS code for
an eligible industrial sector, as established
in the concordance between NAICS codes and the
Harmonized Tariff Schedule of the United States
prepared by the United States Census Bureau; or
``(B) a manufactured item for consumption.
``(3) Eligible industrial sector.--The term `eligible
industrial sector' means an industrial sector
determined by the Administrator under section 763(b) to
be eligible to receive emission allowance rebates under
subpart 1.
``(4) Industrial sector.--The term `industrial
sector' means any sector that is in the manufacturing
sector (as defined in NAICS codes 31, 32, and 33) or
that beneficiates or otherwise processes (including
agglomeration) metal ores, including iron and copper
ores, soda ash, or phosphate. The extraction of metal
ores, soda ash, or phosphate shall not be considered to
be an industrial sector.
``(5) Manufactured item for consumption.--
``(A) In general.--The term `manufactured
item for consumption' means any good--
``(i) that includes in substantial
amounts one or more goods like the
goods produced by an eligible
industrial sector;
``(ii) with respect to which an
international reserve allowance program
pursuant to subpart 2 is in effect with
regard to the eligible industrial
sector and the quantity of
international reserve allowances is not
zero pursuant to section 768(b);
``(iii) with respect to which the
trade intensity of the industrial
sector that produces the good, as
measured consistent with section
763(b)(2)(A)(iii), is at least 15
percent; and
``(iv) for which the domestic
producers of the good have
demonstrated, and the Administrator has
determined, that the application of the
international reserve allowance program
pursuant to subpart 2 is technically
and administratively feasible and
appropriate to achieve the purposes of
this part, taking into account the
energy and greenhouse gas intensity of
the industrial sector that produces the
good, as measured consistent with
section 763(b)(2)(A)(ii), and the
ability of such producers to pass on
cost increases and other appropriate
factors.
``(B) Rule of construction.--A determination
of the Administrator under subparagraph (A)(iv)
shall not be considered to be a determination
of the President under section 767(b).
``(6) NAICS.--The term `NAICS' means the North
American Industrial Classification System of 2002.
``(7) Output.--The term `output' means the total
tonnage or other standard unit of production (as
determined by the Administrator) produced by an entity
in an industrial sector. The output of the cement
sector is hydraulic cement, and not clinker.
``Subpart 1--Emission Allowance Rebate Program
``SEC. 763. ELIGIBLE INDUSTRIAL SECTORS.
``(a) List.--
``(1) Initial list.--Not later than June 30, 2011,
the Administrator shall publish in the Federal Register
a list of eligible industrial sectors pursuant to
subsection (b). Such list shall include the amount of
the emission allowance rebate per unit of production
that shall be provided to entities in each eligible
industrial sector in the following two calendar years
pursuant to section 764.
``(2) Subsequent lists.--Not later than February 1,
2013, and every four years thereafter, the
Administrator shall publish in the Federal Register an
updated version of the list published under paragraph
(1).
``(b) Eligible Industrial Sectors.--
``(1) In general.--Not later than June 30, 2011, the
Administrator shall promulgate a rule designating,
based on the criteria under paragraph (2), the
industrial sectors eligible for emission allowance
rebates under this subpart.
``(2) Presumptively eligible industrial sectors.--
``(A) Eligibility criteria.--
``(i) In general.--An owner or
operator of an entity shall be eligible
to receive emission allowance rebates
under this subpart if such entity is in
an industrial sector that is included
in a six-digit classification of the
NAICS that meets the criteria in both
clauses (ii) and (iii), or the criteria
in clause (iv).
``(ii) Energy or greenhouse gas
intensity.--As determined by the
Administrator, the industrial sector
had--
``(I) an energy intensity of
at least 5 percent, calculated
by dividing the cost of
purchased electricity and fuel
costs of the sector by the
value of the shipments of the
sector, based on data described
in subparagraph (D); or
``(II) a greenhouse gas
intensity of at least 5
percent, calculated by
dividing--
``(aa) the number 20
multiplied by the
number of tons of
carbon dioxide
equivalent greenhouse
gas emissions
(including direct
emissions from fuel
combustion, process
emissions, and indirect
emissions from the
generation of
electricity used to
produce the output of
the sector) of the
sector based on data
described in
subparagraph (D); by
``(bb) the value of
the shipments of the
sector, based on data
described in
subparagraph (D).
``(iii) Trade intensity.--As
determined by the Administrator, the
industrial sector had a trade intensity
of at least 15 percent, calculated by
dividing the value of the total imports
and exports of such sector by the value
of the shipments plus the value of
imports of such sector, based on data
described in subparagraph (D).
``(iv) Very high energy or greenhouse
gas intensity.--As determined by the
Administrator, the industrial sector
had an energy or greenhouse gas
intensity, as calculated under clause
(ii)(I) or (II), of at least 20
percent.
``(B) Metal and phosphate production
classified under more than one naics code.--For
purposes of this section, the Administrator
shall--
``(i) aggregate data for the
beneficiation or other processing
(including agglomeration) of metal
ores, including iron and copper ores,
soda ash, or phosphate with subsequent
steps in the process of metal and
phosphate manufacturing, regardless of
the NAICS code under which such
activity is classified; and
``(ii) aggregate data for the
manufacturing of steel with the
manufacturing of steel pipe and tube
made from purchased steel in a
nonintegrated process.
``(C) Exclusion.--The petroleum refining
sector shall not be an eligible industrial
sector.
``(D) Data sources.--
``(i) Electricity and fuel costs,
value of shipments.--The Administrator
shall determine electricity and fuel
costs and the value of shipments under
this subsection from data from the
United States Census Annual Survey of
Manufacturers. The Administrator shall
take the average of data from as many
of the years of 2004, 2005, and 2006
for which such data are available. If
such data are unavailable, the
Administrator shall make a
determination based upon 2002 or 2006
data from the most detailed industrial
classification level of Energy
Information Agency's Manufacturing
Energy Consumption Survey (using 2006
data if it is available) and the 2002
or 2007 Economic Census of the United
States (using 2007 data if it is
available). If data from the
Manufacturing Energy Consumption Survey
or Economic Census are unavailable for
any sector at the six-digit
classification level in the NAICS, then
the Administrator may extrapolate the
information necessary to determine the
eligibility of a sector under this
paragraph from available Manufacturing
Energy Consumption Survey or Economic
Census data pertaining to a broader
industrial category classified in the
NAICS. If data relating to the
beneficiation or other processing
(including agglomeration) of metal
ores, including iron and copper ores,
soda ash, or phosphate are not
available from the specified data
sources, the Administrator shall use
the best available Federal or State
government data and may use, to the
extent necessary, representative data
submitted by entities that perform such
beneficiation or other processing
(including agglomeration), in making a
determination. Fuel cost data shall not
include the cost of fuel used as
feedstock by an industrial sector.
``(ii) Imports and exports.--The
Administrator shall base the value of
imports and exports under this
subsection on United States
International Trade Commission data.
The Administrator shall take the
average of data from as many of the
years of 2004, 2005, and 2006 for which
such data are available. If data from
the United States International Trade
Commission are unavailable for any
sector at the six-digit classification
level in the NAICS, then the
Administrator may extrapolate the
information necessary to determine the
eligibility of a sector under this
paragraph from available United States
International Trade Commission data
pertaining to a broader industrial
category classified in the NAICS.
``(iii) Percentages.--The
Administrator shall round the energy
intensity, greenhouse gas intensity,
and trade intensity percentages under
subparagraph (A) to the nearest whole
number.
``(iv) Greenhouse gas emission
calculations.--When calculating the
tons of carbon dioxide equivalent
greenhouse gas emissions for each
sector under subparagraph
(A)(ii)(II)(aa), the Administrator--
``(I) shall use the best
available data from as many of
the years 2004, 2005, and 2006
for which such data is
available; and
``(II) may, to the extent
necessary with respect to a
sector, use economic and
engineering models and the best
available information on
technology performance levels
for such sector.
``(3) Administrative determination of additional
eligible industrial sectors.--
``(A) Updated trade intensity data.--The
Administrator shall designate as eligible to
receive emission allowance rebates under this
subpart an industrial sector that--
``(i) met the energy or greenhouse
gas intensity criteria in paragraph
(2)(A)(ii) as of the date of
promulgation of the rule under
paragraph (1); and
``(ii) meets the trade intensity
criteria in paragraph (2)(A)(iii),
using data from any year after 2006.
``(B) Individual showing petition.--
``(i) Petition.--In addition to
designation under paragraph (2) or
subparagraph (A) of this paragraph, the
owner or operator of an entity in an
industrial sector may petition the
Administrator to designate as eligible
industrial sectors under this subpart
an entity or a group of entities that--
``(I) represent a subsector
of a six-digit section of the
NAICS code; and
``(II) meet the eligibility
criteria in both clauses (ii)
and (iii) of paragraph (2)(A),
or the eligibility criteria in
clause (iv) of paragraph
(2)(A).
``(ii) Data.--In making a
determination under this subparagraph,
the Administrator shall consider data
submitted by the petitioner that is
specific to the entity, data solicited
by the Administrator from other
entities in the subsector, if such
other entities exist, and data
specified in paragraph (2)(D).
``(iii) Basis of subsector
determination.--The Administrator shall
determine an entity or group of
entities to be a subsector of a six-
digit section of the NAICS code based
only upon the products manufactured and
not the industrial process by which the
products are manufactured, except that
the Administrator may determine an
entity or group of entities that
manufacture a product from primarily
virgin material to be a separate
subsector from another entity or group
of entities that manufacture the same
product primarily from recycled
material.
``(iv) Use of most recent data.--In
determining whether to designate a
sector or subsector as an eligible
industrial sector under this
subparagraph, the Administrator shall
use the most recent data available from
the sources described in paragraph
(2)(D), rather than the data from the
years specified in paragraph (2)(D), to
determine the trade intensity of such
sector or subsector, but only for
determining such trade intensity.
``(v) Final action.--The
Administrator shall take final action
on such petition no later than 6 months
after the petition is received by the
Administrator.
``SEC. 764. DISTRIBUTION OF EMISSION ALLOWANCE REBATES.
``(a) Distribution Schedule.--
``(1) In general.--For each vintage year, the
Administrator shall distribute pursuant to this section
emission allowances made available under section
782(e), no later than October 31 of the preceding
calendar year. The Administrator shall make such annual
distributions to the owners and operators of each
entity in an eligible industrial sector in the amount
of emission allowances calculated under subsection (b),
except that--
``(A) for vintage years 2012 and 2013, the
distribution for a covered entity shall be
pursuant to the entity's indirect carbon factor
as calculated under subsection (b)(3);
``(B) for vintage year 2026 and thereafter,
the distribution shall be pursuant to the
amount calculated under subsection (b)
multiplied by, except as modified by the
President pursuant to section 767(d)(1)(C) for
a sector--
``(i) 90 percent for vintage year
2026;
``(ii) 80 percent for vintage year
2027;
``(iii) 70 percent for vintage year
2028;
``(iv) 60 percent for vintage year
2029;
``(v) 50 percent for vintage year
2030;
``(vi) 40 percent for vintage year
2031;
``(vii) 30 percent for vintage year
2032;
``(viii) 20 percent for vintage year
2033;
``(ix) 10 percent for vintage year
2034; and
``(x) 0 percent for vintage year 2035
and thereafter.
``(2) Resumption of reduction.--If the President has
modified the percentage stated in paragraph (1)(B)
under section 767(d)(1)(C), and the President
subsequently makes a determination under section 767(c)
for an eligible industrial sector that more than 85
percent of United States imports for that sector are
produced or manufactured in countries that have met at
least one of the criteria in that section, then the 10-
year reduction schedule set forth in paragraph (1)(B)
of this subsection shall begin in the next vintage
year, with the percentage reduction based on the amount
of the distribution of emission allowances under this
section in the previous year.
``(3) Newly eligible sectors.--In addition to
receiving a distribution of emission allowances under
this section in the first distribution occurring after
an industrial sector is designated as eligible under
section 763(b)(3), the owner or operator of an entity
in that eligible industrial sector may receive a
prorated share of any emission allowances made
available for distribution under this section that were
not distributed for the year in which the petition for
eligibility was granted under section 763(b)(3)(A).
``(4) Cessation of qualifying activities.--If, as
determined by the Administrator, a facility is no
longer in an eligible industrial sector designated
under section 763--
``(A) the Administrator shall not distribute
emission allowances to the owner or operator of
such facility under this section; and
``(B) the owner or operator of such facility
shall return to the Administrator all
allowances that have been distributed to it for
future vintage years and a pro-rated amount of
allowances distributed to the facility under
this section for the vintage year in which the
facility ceases to be in an eligible industrial
sector designated under section 763.
``(b) Calculation of Direct and Indirect Carbon Factors.--
``(1) In general.--
``(A) Covered entities.--Except as provided
in subsection (a), for covered entities that
are in eligible industrial sectors, the amount
of emission allowance rebates shall be based on
the sum of the covered entity's direct and
indirect carbon factors.
``(B) Other eligible entities.--For entities
that are in eligible industrial sectors but are
not covered entities, the amount of emission
allowance rebates shall be based on the
entity's indirect carbon factor.
``(C) New entities.--Not later than 2 years
after the date of enactment of this title, the
Administrator shall issue regulations governing
the distribution of emission allowance rebates
for the first and second years of operation of
a new entity in an eligible industrial sector.
These regulations shall provide for--
``(i) the distribution of emission
allowance rebates to such entities
based on comparable entities in the
same sector; and
``(ii) an adjustment in the third and
fourth years of operation to reconcile
the total amount of emission allowance
rebates received during the first and
second years of operation to the amount
the entity would have received during
the first and second years of operation
had the appropriate data been
available.
``(2) Direct carbon factor.--The direct carbon factor
for a covered entity for a vintage year is the product
of--
``(A) the average annual output of the
covered entity for the two years preceding the
year of the distribution; and
``(B) the most recent calculation of the
average direct greenhouse gas emissions
(expressed in tons of carbon dioxide
equivalent) per unit of output for all covered
entities in the sector, as determined by the
Administrator under paragraph (4).
``(3) Indirect carbon factor.--
``(A) In general.--The indirect carbon factor
for an entity for a vintage year is the product
obtained by multiplying the average annual
output of the entity for the two years
preceding the year of the distribution by both
the electricity emissions intensity factor
determined pursuant to subparagraph (B) and the
electricity efficiency factor determined
pursuant to subparagraph (C) for the year
concerned.
``(B) Electricity emissions intensity
factor.--
``(i) In general.--Each person
selling electricity to the owner or
operator of an entity in any sector
designated as an eligible industrial
sector under section 763(b) shall
provide the owner or operator of the
entity and the Administrator, on an
annual basis, the electricity emissions
intensity factor for the entity. The
electricity emissions intensity factor
for the entity, expressed in tons of
carbon dioxide equivalents per kilowatt
hour, is determined by dividing--
``(I) the annual sum of the
hourly product of--
``(aa) the
electricity purchased
by the entity from that
person in each hour
(expressed in kilowatt
hours); multiplied by
``(bb) the marginal
or weighted average
tons of carbon dioxide
equivalent per kilowatt
hour that are reflected
in the electricity
charges to the entity,
as determined by the
entity's retail rate
arrangements; by
``(II) the total kilowatt
hours of electricity purchased
by the entity from that person
during that year.
``(ii) Use of other data to determine
factor.--Where it is not possible to
determine the precise electricity
emissions intensity factor for an
entity using the methodology in clause
(i), the person selling electricity
shall use the monthly average data
reported by the Energy Information
Administration or collected and
reported by the Administrator for the
utility serving the entity to determine
the electricity emissions intensity
factor.
``(C) Electricity efficiency factor.--The
electricity efficiency factor is the average
amount of electricity (in kilowatt hours) used
per unit of output for all entities in the
relevant sector, as determined by the
Administrator based on the best available data,
including data provided under paragraph (6).
``(D) Indirect carbon factor reduction.--If
an electricity provider received a free
allocation of emission allowances pursuant to
section 782(a), the Administrator shall adjust
the indirect carbon factor to avoid rebates to
the eligible entity for costs that the
Administrator determines were not incurred by
the eligible entity because the allowances were
freely allocated to the eligible entity's
electricity provider and used for the benefit
of industrial consumers.
``(4) Greenhouse gas intensity calculations.--The
Administrator shall calculate the average direct
greenhouse gas emissions (expressed in tons of carbon
dioxide equivalent) per unit of output and the
electricity efficiency factor for all covered entities
in each eligible industrial sector every four years,
using an average of the four most recent years of the
best available data. For purposes of the lists required
to be published no later than February 1, 2013, the
Administrator shall use the best available data for the
maximum number of years, up to 4 years, for which data
are available.
``(5) Ensuring efficiency improvements.--When making
greenhouse gas calculations, the Administrator shall--
``(A) limit the average direct greenhouse gas
emissions per unit of output, calculated under
paragraph (4), for any eligible industrial
sector to an amount that is not greater than it
was in any previous calculation under this
subsection;
``(B) limit the electricity emissions
intensity factor, calculated under paragraph
(3)(B) and resulting from a change in
electricity supply, for any entity to an amount
that is not greater than it was during any
previous year; and
``(C) limit the electricity efficiency
factor, calculated under paragraph (3)(C), for
any eligible industrial sector to an amount
that is not greater than it was in any previous
calculation under this subsection.
``(6) Data sources.--For the purposes of this
subsection--
``(A) the Administrator shall use data from
the greenhouse gas registry established under
section 713, where it is available; and
``(B) each owner or operator of an entity in
an eligible industrial sector and each
department, agency, and instrumentality of the
United States shall provide the Administrator
with such information as the Administrator
finds necessary to determine the direct carbon
factor and the indirect carbon factor for each
entity subject to this section.
``(c) Total Maximum Distribution.--Notwithstanding
subsections (a) and (b), the Administrator shall not distribute
more allowances for any vintage year pursuant to this section
than are allocated for use under this subpart pursuant to
section 782(e) for that vintage year. For any vintage year for
which the total emission allowance rebates calculated pursuant
to this section exceed the number of allowances allocated
pursuant to section 782(e), the Administrator shall reduce each
entity's distribution on a pro rata basis so that the total
distribution under this section equals the number of allowances
allocated under section 782(e).
``(d) Iron and Steel Sector.--For purposes of this section,
the Administrator shall consider as in different industrial
sectors--
``(1) entities using integrated iron and steelmaking
technologies (including coke ovens, blast furnaces, and
other iron-making technologies); and
``(2) entities using electric arc furnace
technologies.
``(e) Metal, Soda Ash, or Phosphate Production Classified
Under More Than One Naics Code.--For purposes of this section,
the Administrator shall not aggregate data for the
beneficiation or other processing (including agglomeration) of
metal ores, soda ash, or phosphate with subsequent steps in the
process of metal, soda ash, or phosphate manufacturing. The
Administrator shall consider the beneficiation or other
processing (including agglomeration) of metal ores, soda ash,
or phosphate to be in separate industrial sectors from the
metal, soda ash, or phosphate manufacturing sectors. Industrial
sectors that beneficiate or otherwise process (including
agglomeration) metal ores, soda ash, or phosphate shall not
receive emission allowance rebates under this section related
to the activity of extracting metal ores, soda ash, or
phosphate.
``(f) Combined Heat and Power.--For purposes of this section,
and to achieve the purpose set forth in section 761(b)(2), the
Administrator may consider entities to be in different
industrial sectors or otherwise take into account the
differences among entities in the same industrial sector, based
upon the extent to which such entities use combined heat and
power technologies.
``Subpart 2--Promoting International Reductions in Industrial Emissions
``SEC. 765. INTERNATIONAL NEGOTIATIONS.
``(a) Finding.--Congress finds that the purposes of this
subpart, as set forth in section 761(c), can be most
effectively addressed and achieved through agreements
negotiated between the United States and foreign countries.
``(b) Statement of Policy.--It is the policy of the United
States to work proactively under the United Nations Framework
Convention on Climate Change, and in other appropriate fora, to
establish binding agreements, including sectoral agreements,
committing all major greenhouse gas-emitting nations to
contribute equitably to the reduction of global greenhouse gas
emissions.
``(c) Notification of Foreign Countries.--
``(1) In general.--As soon as practicable after the
date of the enactment of this title, the President
shall provide a notification on climate change
described in paragraph (2) to each foreign country the
products of which are not exempted under section
768(a)(1)(E).
``(2) Notification described.--A notification
described in this paragraph is a notification that
consists of--
``(A) a statement of the policy of the United
States described in subsection (b); and
``(B) a declaration--
``(i) requesting the foreign country
to take appropriate measures to limit
the greenhouse gas emissions of the
foreign country; and
``(ii) indicating that, beginning on
January 1, 2020, the international
reserve requirements of this subpart
may apply to a covered good.
``SEC. 766. UNITED STATES NEGOTIATING OBJECTIVES WITH RESPECT TO
MULTILATERAL ENVIRONMENTAL NEGOTIATIONS.
``(a) In General.--The negotiating objectives of the United
States with respect to multilateral environmental negotiations
described in this subpart are--
``(1) to reach an internationally binding agreement
in which all major greenhouse gas-emitting countries
contribute equitably to the reduction of global
greenhouse gas emissions;
``(2)(A) to include in such international agreement
provisions that recognize and address the competitive
imbalances that lead to carbon leakage and may be
created between parties and non-parties to the
agreement in domestic and export markets; and
``(B) not to prevent parties to such agreement from
addressing the competitive imbalances that lead to
carbon leakage and may be created by the agreement
among parties to the agreement in domestic and export
markets ; and
``(3) to include in such international agreement
agreed remedies for any party to the agreement that
fails to meet its greenhouse gas reduction obligations
in the agreement.
``(b) Rule of Construction.--Nothing in subsection (a)(2)
shall be construed to require the United States to alter the
provisions of section 764 .
``SEC. 767. PRESIDENTIAL REPORTS AND DETERMINATIONS.
``(a) Report.--Not later than January 1, 2017, and every 2
years thereafter, the President shall submit a report to
Congress on the effectiveness of the distribution of emission
allowance rebates under subpart 1 in mitigating carbon leakage
in eligible industrial sectors. Such report shall also
include--
``(1) an assessment, for each eligible industrial
sector receiving emission allowance rebates, as to
whether, and by how much, the per unit cost of
production has increased for that sector as a result of
compliance with section 722 (as determined in a manner
consistent with section 764(b)), taking into account
the provision of the emission allowance rebates to that
industrial sector and the benefit received by that
industrial sector from the provision of free allowances
to electricity providers pursuant to section 782(a);
``(2) recommendations on how to better achieve the
purposes of this subpart, including an assessment of
the feasibility and usefulness of an international
reserve allowance program for the eligible industrial
sector under section 768;
``(3) to the extent the President determines that an
international reserve allowance program would not be
useful for the eligible industrial sector because its
exposure to carbon leakage is the result of competition
in export markets with goods produced in countries not
implementing similar greenhouse gas emission reduction
policies, an identification of, and to the extent
appropriate a description of how the President will
implement, alternative actions or programs consistent
with the purposes of this subpart (and, in such case,
the President may determine not to apply an
international reserve allowance program to the eligible
industrial sector under subsection (b)); and
``(4) an assessment of the amount and duration of
assistance, including distribution of free allowances,
being provided to industrial sectors in other developed
countries to mitigate costs of compliance with domestic
greenhouse gas reduction programs in such countries.
``(b) Presidential Determination.--
``(1) In general.--If, by January 1, 2018, a
multilateral agreement consistent with the negotiating
objectives set forth in section 766 has not entered
into force with respect to the United States, the
President shall establish an international reserve
allowance program for each eligible industrial sector
to the extent provided under section 768 unless--
``(A) the President determines and certifies
to the Congress with respect to such eligible
industrial sector that such program would not
be in the national economic interest or
environmental interest of the United States;
and
``(B) not later than 90 days after the
President transmits the certification described
in subparagraph (A), a joint resolution is
enacted into law that approves the
determination of the President described in
subparagraph (A).
``(2) Contents of joint resolution.--For purposes of
this subsection, the term `joint resolution' means only
a joint resolution of the two Houses of Congress, the
matter after the resolving clause of which is as
follows: `That the Congress approves the determination
of the President under section 768(b)(1)(A) of the
Clean Air Act transmitted to the Congress on ______.',
the blank space being filled with the appropriate date.
``(3) Congressional procedures.--Subsections (c),
(d), (e), and (f) of section 152 of the Trade Act of
1974 (19 U.S.C. 2192 (c), (d), (e), and (f)) shall
apply to a joint resolution under this subsection to
the same extent as such subsections apply to a joint
resolution under section 152 of such Act.
``(4) Rule of construction.--For purposes of this
section and section 768, if the President transmits a
multilateral agreement to Congress (regardless of
whether it is transmitted as a treaty for ratification
by the Senate or another international agreement for
implementation by law enacted by the Congress)
indicating that the agreement is consistent with the
negotiating objectives set forth in section 766, such
agreement will be considered to be consistent with such
negotiating objectives as of the date on which the
Senate ratifies the treaty, or legislation is enacted
implementing such other agreement, unless the Senate
(in the case of ratification) or the implementing
legislation expressly provides that the multilateral
agreement shall not be treated as consistent with such
negotiating objectives for purposes of this section and
section 768.
``(c) Determinations With Respect to Eligible Industrial
Sectors.--If the President establishes an international reserve
allowance program pursuant to subsection (b), then not later
than June 30, 2018, and every four years thereafter, the
President, in consultation with the Administrator and other
appropriate agencies, shall determine, for each eligible
industrial sector, whether or not more than 85 percent of
United States imports of covered goods with respect to that
sector are produced or manufactured in countries that have met
at least one of the following criteria:
``(1) The country is a party to an international
agreement to which the United States is a party that
includes a nationally enforceable and economy-wide
greenhouse gas emissions reduction commitment for that
country that is at least as stringent as that of the
United States.
``(2) The country is a party to a multilateral or
bilateral emission reduction agreement for that sector
to the which the United States is a party.
``(3) The country has an annual energy or greenhouse
gas intensity, as described in section
763(b)(2)(A)(ii), for the sector that is equal to or
less than the energy or greenhouse gas intensity for
such industrial sector in the United States in the most
recent calendar year for which data are available.
``(d) Effect of Presidential Determination.--
``(1) Required actions.--If the President makes a
determination under subsection (c) with respect to an
eligible industrial sector that 85 percent or less of
United States imports of covered goods with respect to
the sector are produced or manufactured in countries
that have met one or more of the criteria in subsection
(c), then the President shall, not later than June 30,
2018, and every four years thereafter--
``(A) assess the extent to which the emission
allowance rebates provided pursuant to subpart
1 and the benefit received by that industrial
sector from the provision of free allowances to
electricity providers pursuant to section
782(a) have mitigated or addressed, or could
mitigate or address, carbon leakage in that
sector;
``(B) assess the extent to which an
international reserve allowance program has
mitigated or addressed, or could mitigate or
address, carbon leakage in that sector; and
``(C) with respect to that sector--
``(i) modify the percentage by which
direct and indirect carbon factors will
be multiplied under section
764(a)(1)(B); and
``(ii) apply or continue to apply an
international reserve allowance program
under section 768 with respect to
imports of covered goods with respect
to that sector.
``(2) Prohibited actions.--If the President makes a
determination under subsection (c) with respect to an
eligible industrial sector that more than 85 percent of
United States imports of covered goods with respect to
the sector are produced or manufactured in countries
that have met one or more of the criteria in subsection
(c), then the President may not apply or continue to
apply an international reserve allowance program under
section 768 with respect to imports of covered goods
with respect to that sector.
``(e) Report to Congress.--Not later than June 30, 2018, and
every four years thereafter, the President shall transmit to
the Congress a report providing notice of any determination
made under subsection (c), explaining the reasons for such
determination, and identifying the actions taken by the
President under subsection (d).
``SEC. 768. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.
``(a) Establishment.--
``(1) In general.--The Administrator, with the
concurrence of Commissioner responsible for U.S.
Customs and Border Protection, shall issue
regulations--
``(A) establishing an international reserve
allowance program for the sale, exchange,
purchase, transfer, and banking of
international reserve allowances for covered
goods with respect to the eligible industrial
sector;
``(B) ensuring that the price for purchasing
the international reserve allowances from the
United States on a particular day is equivalent
to the auction clearing price for emission
allowances under section 722 for the most
recent emission allowance auction;
``(C) establishing a general methodology for
calculating the quantity of international
reserve allowances that a United States
importer of any covered good must submit;
``(D) requiring the submission of appropriate
amounts of such allowances for covered goods
with respect to the eligible industrial sector
that enter the customs territory of the United
States;
``(E) exempting from the requirements of
subparagraph (D) such products that are the
origin of--
``(i) any country determined to meet
any of the standards provided in
section 767(c);
``(ii) any foreign country that the
United Nations has identified as among
the least developed of developing
countries; or
``(iii) any foreign country that the
President has determined to be
responsible for less than 0.5 percent
of total global greenhouse gas
emissions and less than 5 percent of
United States imports of covered goods
with respect to the eligible industrial
sector;
``(F) specifying the procedures that U.S.
Customs and Border Protection will apply for
the declaration and entry of covered goods with
respect to the eligible industrial sector into
the customs territory of the United States; and
``(G) establishing procedures that prevent
circumvention of the international reserve
allowance requirement for covered goods with
respect to the eligible industrial sector that
are manufactured or processed in more than one
foreign country.
``(2) Purpose of program.--The Administrator shall
establish the program under paragraph (1) consistent
with international agreements to which the United
States is a party, in a manner that minimizes the
likelihood of carbon leakage as a result of differences
between--
``(A) the direct and indirect costs of
complying with section 722; and
``(B) the direct and indirect costs, if any,
of complying in other countries with greenhouse
gas regulatory programs, requirements, export
tariffs, or other measures adopted or imposed
to reduce greenhouse gas emissions.
``(b) Emission Allowance Rebates.--In establishing a general
methodology for purposes of subsection (a)(1)(C), the
Administrator shall include an adjustment to the quantity of
international reserve allowances based on the value of emission
allowance rebates distributed under subpart 1 and the benefit
received by the eligible industrial sector concerned from the
provision of free allowances to electricity providers pursuant
to section 782(a) and may, if appropriate, determine that the
quantity of international reserve allowances should be reduced
as low as to zero.
``(c) Effective Date.--The international reserve allowance
program may not apply to imports of covered goods entering the
customs territory of the United States before January 1, 2020.
``(d) Covered Entities.--International reserve allowances may
not be used by covered entities to comply with section 722.
``SEC. 769. IRON AND STEEL SECTOR.
``For purposes of this subpart, the Administrator shall
consider to be in the same eligible industrial sector--
``(1) entities using integrated iron and steelmaking
technologies (including coke ovens, blast furnaces, and
other iron-making technologies); and
``(2) entities using electric arc furnace
technologies.''.
Page 955, lines 15 through 19, amend section 422 to read as
follows:
SEC. 422. INCREASED FUNDING FOR ENERGY WORKER TRAINING PROGRAM.
(a) Authorization.--Section 171(e)(8) of the Workforce
Investment Act of 1998 (29 U.S.C. 2916(e)(8)) is amended by
striking ``$125,000,000'' and inserting ``$150,000,000''.
(b) Establishment of Fund.--There is hereby established in
the Treasury a separate account that shall be known as the
Energy Efficiency and Renewable Energy Worker Training Fund.
(c) Availability of Amounts.--Subject to subtitle F of title
IV, all amounts deposited into the Energy Efficiency and
Renewable Energy Worker Training Fund shall be available to the
Secretary to carry out section 171(e)(8) of the Workforce
Investment Act of 1998 (29 U.S.C. 2916(e)(8)) subject to
further appropriation.
Page 955, after line 19, insert the following new sections:
SEC. 423. DEVELOPMENT OF INFORMATION AND RESOURCES CLEARINGHOUSE FOR
VOCATIONAL EDUCATION AND JOB TRAINING IN RENEWABLE
ENERGY SECTORS.
(a) Development of Clearinghouse.--Not later than 18 months
after the date of enactment of this Act, the Secretary of
Labor, in collaboration with the Secretary of Energy and the
Secretary of Education, shall develop an internet based
information and resources clearinghouse to aid career and
technical education and job training programs for the renewable
energy sectors. In establishing the clearinghouse, the
Secretary shall--
(1) collect and provide information that addresses
the consequences of rapid changes in technology and
regional disparities for renewable energy training
programs and provides best practices for training and
education in light of such changes and disparities;
(2) place an emphasis on facilitating collaboration
between the renewable energy industry and job training
programs and on identifying industry and technological
trends and best practices, to better help job training
programs maintain quality and relevance; and
(3) place an emphasis on assisting programs that
cater to high-demand middle-skill, trades,
manufacturing, contracting, and consulting careers.
(b) Solicitation and Consultation.--In developing the
clearinghouse pursuant to subsection (a), the Secretary shall
solicit information and expertise from businesses and
organizations in the renewable energy sector and from
institutions of higher education, career and technical schools,
and community colleges that provide training in the renewable
energy sectors. The Secretary shall solicit a comprehensive
peer review of the clearinghouse by such entities not less than
once every 2 years. Nothing in this subsection should be
interpreted to require the divulgence of proprietary or
competitive information.
(c) Contents of Clearinghouse.--
(1) Separate section for each renewable energy
sector.--The clearinghouse shall contain separate
sections developed for each of the following renewable
energy sectors:
(A) Solar energy systems.
(B) Wind energy systems.
(C) Energy transmission systems.
(D) Geothermal systems of energy and heating.
(E) Energy efficiency technical training.
(2) Additional requirements.--In addition to the
information required in subsection (a), each section of
the clearinghouse shall include information on basic
environmental science and processes needed to
understand renewable energy systems, Federal government
and industry resources, and points of contact to aid
institutions in the development of placement programs
for apprenticeships and post graduation opportunities,
and information and tips about a green workplace,
energy efficiency, and relevant environmental topics
and information on available industry recognized
certifications in each area.
(d) Dissemination.--The clearinghouse shall be made available
via the Internet to the general public. Notice of the completed
clearinghouse and any major revisions thereto shall also be
provided--
(1) to each Member of Congress; and
(2) on the websites of the Departments of Education,
Energy, and Labor.
(e) Revision.--The Secretary of Labor shall revise and update
the clearinghouse on a regular basis to ensure its relevance.
SEC. 424. MONITORING PROGRAM EFFECTIVENESS.
The Secretary of Labor shall monitor the potential growth of
affected and displaced workers to ensure that the necessary
funding continues to support the number of workers affected.
SEC. 424A. GREEN CONSTRUCTION CAREERS DEMONSTRATION PROJECT.
(a) Establishment and Authority.--The Secretary of Labor, in
consultation with the Secretary of Energy, shall, not later
than 180 days after the enactment of this Act, establish a
Green Construction Careers demonstration project by rules,
regulations, and guidance in accordance with the provisions of
this section. The purpose of the demonstration project shall be
to promote middle class careers and quality employment
practices in the green construction sector among targeted
workers and to advance efficiency and performance on
construction projects related to this Act. In order to advance
these purposes, the Secretary shall identify projects,
including residential retrofitting projects, funded directly by
or assisted in whole or in part by or through the Federal
Government pursuant to this Act or by any other entity
established in accordance with this Act, to which all of the
following shall apply.
(b) Requirements.--The Secretaries may establish such terms
and conditions for the demonstration projects as the
Secretaries determine are necessary to meet the purposes of
subsection (a), including establishing minimum proportions of
hours to be worked by targeted workers on such projects. The
Secretaries may require the contractors and subcontractors
performing construction services on the project to comply with
the terms and conditions as a condition of receiving funding or
assistance from the Federal Government under this Act.
(c) Evaluation.--The Secretaries shall evaluate the
demonstration projects against the purposes of this section at
the end of 3 years from initiation of the demonstration
project. If the Secretaries determine that the demonstration
projects have been successful, the Secretaries may identify
further projects to which of the provisions of this section
shall apply.
(d) GAO Report.--The Comptroller General shall prepare and
submit a report to the Committee on Health, Education, Labor
and Pensions and the Committee on Energy and Natural Resources
of the Senate and the Committee on Education and Labor and the
Committee on Energy and Commerce of the House of
Representatives not later than 5 years after the date of
enactment of this Act, which shall advise the committees of the
results of the demonstration projects and make appropriate
recommendations.
(e) Definition and Designation of Targeted Workers.--As used
in this section, the term ``targeted worker'' means an
individual who resides in the same labor market area (as
defined in section 101(18) of the Workforce Investment Act of
1998 (29 U.S.C. 2801(18))) as the project and who--
(1) is a member of a targeted group, within the
meaning of section 51 of the Internal Revenue Code of
1986, other than an individual described in subsection
(d)(1)(C) of such section;
(2)(A) resides in a census tract in which not less
than 20 percent of the households have incomes below
the Federal poverty guidelines; or
(B) is a member of a family that received a total
family income that, during the 2-year period prior to
employment on the project or admission to the pre-
apprenticeship program, did not exceed 200 percent of
the Federal poverty guidelines (exclusive of
unemployment compensation, child support payments,
payments described in section 101(25)(A) of the
Workforce Investment Act (29 U.S.C. 2801(25)(A)), and
old-age and survivors insurance benefits received under
section 202 of the Social Security Act (42 U.S.C. 402);
or
(3) is a displaced homemaker, as such term is defined
in section 3(10) of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2302(10)).
(f) Qualified Pre-Apprenticeship Program.--A qualified pre-
apprenticeship program is a pre-apprenticeship program that has
demonstrated an ability to recruit, train, and prepare for
admission to apprenticeship programs individuals who are
targeted workers.
(g) Qualified Apprenticeship and Other Training Programs.--
(1) Participation by each contractor required.--Each
contractor and subcontractor that seeks to provide
construction services on projects identified by the
Secretaries pursuant to subsection (a) shall submit
adequate assurances with its bid or proposal that it
participates in a qualified apprenticeship or other
training program, with a written arrangement with a
qualified pre-apprenticeship program, for each craft or
trade classification of worker that it intends to
employ to perform work on the project.
(2) Definition of qualified apprentice ship or other
training program.--
(A) In general.--For purposes of this
section, the term ``qualified apprenticeship or
other training program'' means an
apprenticeship or other training program that
qualifies as an employee welfare benefit plan,
as defined in section 3(1) of the Employee
Retirement Income Security Act of 1974 (29
U.S.C. 1002(1)).
(B) Certification of other programs in
certain localities.--In the event that the
Secretary of Labor certifies that a qualified
apprenticeship or other training program (as
defined in subparagraph (A)) for a craft or
trade classification of workers that a
prospective contractor or subcontractor intends
to employ, is not operated in the locality
where the project will be performed, an
apprenticeship or other training program that
is not an employee welfare benefit plan (as
defined in such section) may be certified by
the Secretary as a qualified apprenticeship or
other training program provided it is
registered with the Office of Apprenticeship of
the Department of Labor, or a State
apprenticeship agency recognized by the Office
of Apprenticeship for Federal purposes.
(h) Facilitating Compliance.--The Secretary may require
Federal contracting agencies, recipients of Federal assistance,
and any other entity established in accordance with this Act to
require contractors to enter into an agreement in a manner
comparable with the standards set forth in sections 3 and 4 of
Executive Order 13502 in order to achieve the purposes of this
section, including any requirements established by subsection
(b).
(i) Limitation.--The requirements of this section shall not
apply to any project funded under this Act in American Samoa,
Guam, the Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, or the United States Virgin
Islands, unless participation is requested by the governor of
such territories within 1 year of the promulgation of rules
under this Act.
Page 1007, line 23, through page 1008, line 14, strike
paragraph (3).
Page 1019, line 23, through page 1020, line 6, amend
subparagraph (B) to read as follows:
``(B) Without regard to section 553 of title
5 of such Code, the Administrator may by rule
promulgate as final, to be effective until no
later than two years after the date of the
enactment of the American Clean Energy and
Security Act of 2009, any procedures that are
substantially the same as the procedures
governing the Supplemental Nutrition Assistance
Program in section 273.2, 273.12, or 273.15 of
title 7, Code of Federal Regulations.
Page 1025, line 1, through page 1026, line 11, amend section
432 to read as follows:
SEC. 432. MODIFICATION OF EARNED INCOME CREDIT AMOUNT FOR INDIVIDUALS
WITH NO QUALIFYING CHILDREN.
(a) In General.--Subsection (b) of section 32 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(4) Special rule for individuals with no qualifying
children who are affected by the american clean energy
and security act of 2009.--
``(A) In general.--In the case of any
household which the Secretary determines
experienced a reduction in purchasing power as
a result of the provisions of, or amendments
made by, the American Clean Energy and Security
Act of 2009 (determined without regard to this
paragraph and section 2201 of the Social
Security Act)--
``(i) Increase in credit percentage
and phaseout percentage.--The table
contained in paragraph (1)(A) shall be
applied by substituting `15.3' for
`7.65'.
``(ii) Increase in beginning phaseout
amount.--The table contained in
paragraph (2)(A) shall be applied by
substituting `$11,640' for `$5,280'.
``(B) Inflation adjustment.--
``(i) In general.--In the case of any
taxable year beginning after 2012, the
$11,640 amount in subparagraph (A)(ii)
shall be increased by an amount equal
to--
``(I) such dollar amount,
multiplied by
``(II) the cost of living
adjustment determined under
section 1(f)(3) for the
calendar year in which the
taxable year begins determined
by substituting `calendar year
2011' for `calendar year 1992'
in subparagraph (B) thereof.
``(ii) Rounding.--Subparagraph (A) of
subsection (j)(2) shall apply after
taking into account any increase under
clause (i) in the same manner as if
such increase were under paragraph (1)
of subsection (j).
``(iii) Coordination with other
inflation adjustments.--Paragraph (1)
of subsection (j) shall not apply to
the dollar amount substituted under
subparagraph (A)(ii).''.
(b) Effective Date.--The amendment made by this section shall
apply to taxable years beginning after December 31, 2011.
Page 1033, lines 7 and 8, strike ``from the International
Clean Technology Account'' and insert ``under this subtitle''.
Page 1033, lines 11 through 13, strike ``distributions from
the International Clean Technology Account'' and insert ``the
program established under this subtitle''.
Page 1033, lines 14 through 18, strike paragraph (7) (and
redesignate the subsequent paragraphs accordingly).
Page 1034, lines 11 and 12, strike ``from the International
Clean Technology Account'' and insert ``allocated under section
782(o) of the Clean Air Act (as added by section 321 of this
Act) for distribution pursuant to this subtitle''.
Page 1034, lines 14 and 15, strike ``International Clean
Technology Account'' and insert ``program established under
this subtitle''.
Page 1035, line 7, strike ``from the International Clean
Technology Account'' and insert ``pursuant to this subtitle''.
Page 1039, lines 5 through 7, strike ``, from the
International Clean Technology Account for qualifying
activities that take place in eligible countries'' and insert
``allocated for such purpose under section 782(o) of the Clean
Air Act (as added by section 321 of this Act) for qualifying
activities that take place in eligible countries, in accordance
with the requirements of this subtitle''.
Page 1039, line 8, through page 1040, line 13, amend
subsection (b) to read as follows:
(b) Definition.--For the purposes of this section the term
``clean technology'' means any technology or service related to
the qualifying activities identified in section 445.
Page 1040, lines 18 and 19, strike ``from the International
Clean Technology Account'' and insert ``under this subtitle''.
Page 1046, lines 11 through 14, amend subsection (f) to read
as follows:
(f) Annual Reports.--Not later than March 1, 2012, and
annually thereafter, the President shall submit to the
appropriate congressional committees a report on the assistance
provided under this subtitle during the prior fiscal year. Such
report shall include--
(1) a description of the amount and value of
allowances distributed during the prior fiscal year;
(2) a description of each activity that received
assistance during the prior fiscal year, and a
description of the anticipated and actual outcomes;
(3) an assessment of any adverse effects to human
health, safety, or welfare, the environment, or natural
resources as a result of activities supported under
this subtitle;
(4) an assessment of the success of the assistance
provided under this subtitle to improving the technical
and institutional capacity to implement substantial
emissions reductions;
(5) an estimate of the greenhouse gas emissions
reductions, sequestration, or avoidance achieved by
assistance provided under this subtitle during the
prior fiscal year; and
(6) an assessment whether any funds expended for the
benefit of any qualifying activity undermined the
protection of intellectual property rights for clean
technology, as formulated in the Agreement on Trade-
Related Aspects of Intellectual Property Rights,
referred to in section 101(d)(15) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(15)) and applicable
intellectual property provisions of bilateral trade
agreements.
Page 1046, after line 14, insert the following new
subsection:
(g) Not Eligible for Offset Credit.--Activities that receive
support under this subtitle shall not be issued offset credits
for the greenhouse gas emissions reductions or avoidance, or
greenhouse gas sequestration, produced by such activities.
Page 1113, after line 11, insert the following new paragraph:
(5) Research on hurricanes.--The authorized uses of
allowances under this section shall include
establishment of projects or programs to conduct
research and monitoring on the effect of ongoing
climate change on the frequency and intensity of
hurricanes.
Page 1130, line 22, strike ``There'' and insert ``Subject to
subtitle F of title IV, there''.
Page 1131, line 1, strike ``All'' and insert ``Subject to
subtitle F of title IV, all''.
Page 1161, line 24, strike ``There'' and insert ``Subject to
subtitle F of title IV, there''.
Page 1162, line 4, strike ``There'' and insert ``Subject to
subtitle F of title IV, there''.
Page 1162, lines 10 through 12, strike ``Such
appropriations'' and all that follows through ``Clean Air
Act.''.
Page 1165, line 2, insert ``and in accordance with the Indian
Self-Determination and Educational Assistance Act (25 U.S.C.
450(f)'' after ``Wildlife Service''.
Page 1166, lines 3 through 5, strike ``Such appropriations''
and all that follows through ``782(m)''.
Page 1169, line 2, before the period, insert ``and for
natural resource adaptation activities on State and private
forest lands carried out under the Cooperative Forestry
Assistance Act of 1978''.
Page 1201, after line 6, add the following new subtitle:
Subtitle F--Deficit Neutral Budgetary Treatment
SEC. 496. DEFICIT NEUTRALITY.
(a) Funds Established.--Funds established under sections 422,
467, and 480 of this Act are to be treated as separate accounts
in the Treasury and shall be known as ``the Funds''.
(b) Availability.--Funds appropriated or made available
pursuant to sections 422(b), 467(b), and 480(b)(2) are only
available for the purposes set forth under this Act. Receipts
in the Funds and appropriations therefrom shall not be
available and are precluded from obligation for any other
purpose.
(c) Estimation of Budgetary Impact.--For the purposes of
estimating the revenue and spending effects of this Act;
(1) the revenue assumed to be deposited into the
Funds established under sections 422, 467, and 480,
shall be attributed to this Act; and
(2) the authorization or availability of
appropriations from the Funds shall be treated as new
direct spending and attributed to this Act.
(d) Budgetary Treatment.--For the purposes of section 257 of
the Balanced Budget and Emergency Deficit Control Act of 1985,
the Funds, and amounts subsequently appropriated or made
available for the purposes for which such Funds were
established, shall be deemed to be included on the list of
appropriations referenced under section 250(c)(17) of that Act.
Such appropriations from each Fund shall not be in excess of
the amounts deposited into the respective Fund in the previous
year.
At the end of the bill, add the following new title:
TITLE V--AGRICULTURAL AND FORESTRY RELATED OFFSETS
Subtitle A--Offset Credit Program From Domestic Agricultural and
Forestry Sources
SEC. 501. DEFINITIONS.
(a) In General.--In this title:
(1) Additional.--The term ``additional'', when used
with respect to reductions or avoidance of greenhouse
gas emissions, or to sequestration of greenhouse gases,
means reductions, avoidance, or sequestration that
result in a lower level of net greenhouse gas emissions
or atmospheric concentrations than would occur in the
absence of an offset project.
(2) Additionality.--The term ``additionality'' means
the extent to which reductions or avoidance of
greenhouse gas emissions, or sequestration of
greenhouse gases, are additional.
(3) Administrator.--The term ``Administrator'' means
the Administrator of the Environmental Protection
Agency.
(4) Advisory committee.--The term ``Advisory
Committee'' means the USDA Greenhouse Gas Emission
Reduction and Sequestration Advisory Committee
established under section 1245(f) of the Food Security
Act of 1985 (16 U.S.C. 3845).
(5) Greenhouse gas.--The term ``greenhouse gas''
means any of the following:
(A) Carbon dioxide.
(B) Methane.
(C) Nitrous oxide.
(D) Sulfur hexafluoride.
(E) Hydrofluorocarbons from a chemical
manufacturing process at an industrial
stationary source.
(F) Any perfluorocarbon.
(G) Nitrogen trifluoride.
(H) Any other anthropogenic gas designated as
a greenhouse gas by the Administrator.
(6) Leakage.--The term ``leakage'' means a
significant and quantifiable increase in greenhouse gas
emissions, or a significant and quantifiable decrease
in sequestration, which is caused by an offset practice
and occurs outside the boundaries of the offset
practice.
(7) Offset credit.--The term ``offset credit'' means
a tradeable compliance instrument that--
(A) represents the reduction, avoidance, or
sequestration of 1 ton of carbon dioxide
equivalent; and
(B) is issued pursuant to this title.
(8) Offset practice.--The term ``offset practice''
means an activity that reduces, avoids, or sequesters
greenhouse gas emissions, and for which offset credits
may be issued pursuant to this title.
(9) Offset producer.--The term ``offset producer''
means an owner, operator, landlord, tenant, or
sharecropper who has or shares responsibility for
ensuring that an offset practice is established and
maintained during the crediting period for purposes of
an offset credit.
(10) Offset project.--The term ``offset project''
means a practice or set of practices that reduce or
avoid greenhouse gas emissions, or sequester greenhouse
gases as implemented by an offset producer.
(11) Offset project developer.--The term ``offset
project developer'' means the offset producer or
designee of the offset producer.
(12) Practice type.--The term ``practice type'' means
a discrete category of offset practices for which the
Secretary develops a standardized methodology to
accurately estimate the amount of greenhouse gas
emissions reduced or avoided or greenhouse gases
sequestered.
(13) Reversal.--The term ``reversal'' means an
intentional or unintentional loss of sequestered
greenhouse gases to the atmosphere.
(14) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture.
(15) Sequestration and sequestered.--The terms
``sequestered'' and ``sequestration'' mean the
separation, isolation, or removal of greenhouse gases
from the atmosphere, as determined by the Secretary.
The terms include biological sequestration, but do not
include ocean fertilization techniques.
(16) Term offset credit.--The term ``term offset
credit'' means a compliance instrument authorized under
section 504(d).
(b) Agricultural and Forestry Exception to Definition of
Capped Sector.--For purposes of this title and title III of
this Act, and amendments made by such titles, the term ``capped
sector'' means a sector of economic activity that directly
emits capped emissions, including the industrial sector, the
electricity generation sector, the transportation sector, and
the residential and commercial sectors (to the extent they burn
oil or natural gas), but not including the agricultural or
forestry sectors.
SEC. 502. ESTABLISHMENT OF OFFSET CREDIT PROGRAM FROM DOMESTIC
AGRICULTURAL AND FORESTRY SOURCES.
(a) Establishment.--Not later than 1 year after the date of
enactment of this title, the Secretary shall establish a
program governing the generation of offset credits from
domestic agricultural and forestry sources.
(b) Requirements.--The program described in subsection (a)
shall--
(1) ensure that offset credits represent verifiable
and additional greenhouse gas emission reductions or
avoidance, or increases in sequestration; and
(2) ensure that offset credits issued for
sequestration offset projects are only issued for
greenhouse gas reductions that result in a permanent
net reduction in atmospheric greenhouse gases.
(c) Duties of Secretary.--In addition to the duties described
in subsection (a) and section 1245 of the Food Security Act of
1985 (16 U.S.C. 3845), the Secretary shall, with respect to
practices relating to offset credits from agricultural and
forestry sources--
(1) establish by rule methodologies by practice types
for quantifying greenhouse gas benefits;
(2) establish by rule methodologies for each practice
type for establishing activity baselines and
determining additionality;
(3) establish by rule methodologies by practice types
for accounting for and mitigating potential leakage;
(4) establish rules to account for and address
reversals;
(5) establish rules to require third-party
verification;
(6) provide technical assistance to offset project
developers using funds appropriated to the Conservation
Operations account;
(7) establish rules for approval of offset project
plans;
(8) establish rules for certification of
implementation of offset project plans;
(9) establish by rule requirements for reporting and
record keeping; and
(10) conduct audits.
SEC. 503. LIST OF ELIGIBLE DOMESTIC AGRICULTURAL AND FORESTRY OFFSET
PRACTICE TYPES.
(a) List Required.--
(1) Preparation and publication.--Not later than 1
year after the date of enactment of this title, the
Secretary shall prepare and publish in the Federal
Register a list of domestic agricultural and forestry
practice types that are eligible to generate offset
credits under this title because the practices avoid or
reduce greenhouse gas emissions or sequester greenhouse
gases.
(2) Recommendations.--In preparing the list under
paragraph (1), the Secretary shall take into
consideration the recommendations of the Advisory
Committee.
(b) Initial List.--At a minimum, the list prepared under this
section shall include those practices that avoid or reduce
greenhouse gas emissions or sequester greenhouse gases, such
as--
(1) agricultural, grassland, and rangeland
sequestration and management practices, including--
(A) altered tillage practices;
(B) winter cover cropping, continuous
cropping, and other means to increase biomass
returned to soil in lieu of planting followed
by fallowing;
(C) reduction of nitrogen fertilizer use or
increase in nitrogen use efficiency;
(D) reduction in the frequency and duration
of flooding of rice paddies;
(E) reduction in carbon emissions from
organic soils;
(F) reduction in greenhouse gas emissions
from manure and effluent; and
(G) reduction in greenhouse gas emissions due
to changes in animal management practices,
including dietary modifications;
(2) changes in carbon stocks attributed to land use
change and forestry activities, including--
(A) afforestation or reforestation of acreage
that is not forested;
(B) forest management resulting in an
increase in forest carbon stores including but
not limited to harvested wood products;
(C) management of peatland or wetland;
(D) conservation of grassland and forested
land;
(E) improved forest management, including
accounting for carbon stored in wood products;
(F) reduced deforestation or avoided forest
conversion;
(G) urban tree-planting and maintenance;
(H) agroforestry; and
(I) adaptation of plant traits or new
technologies that increase sequestration by
forests; and
(3) manure management and disposal, including--
(A) waste aeration;
(B) biogas capture and combustion; and
(C) application to fields as a substitute for
commercial fertilizer.
(c) Additions and Revisions to List.--
(1) Periodic revision.--Not later than 2 years after
the date of enactment of this title, and every 2 years
thereafter, the Secretary, after public notice and
opportunity for comment, shall add to and revise the
types of offset practices to the list established under
subsection (a) if those types of practices meet the
standards for environmental integrity that are
consistent with the purposes of this title.
(2) Consideration of petitions.--The Secretary
shall--
(A) consider petitions to add types of offset
practices to the list established under
subsection (a); and
(B) add those types of offset practices to
the list if the types of offset practices meet
standards for environmental integrity
consistent with the purposes of this title.
(3) Time for consideration of petitions.--Not later
than 1 year after the receipt of a petition under
paragraph (2), the Secretary shall make a decision to
either grant or deny the petition and publish a written
explanation of the reasons for the Secretary's
decision. The Secretary may not deny a petition under
this subsection on the basis of inadequate Department
of Agriculture resources at the time of the review.
SEC. 504. REQUIREMENTS FOR DOMESTIC AGRICULTURAL AND FORESTRY
PRACTICES.
(a) Methodologies.--
(1) In general; condition.--In promulgating
regulations under section 502, the Secretary shall
establish methodologies for domestic agricultural and
forestry practices listed under section 503, if the
Secretary determines that methodologies can be
established for such practices that meet each of the
requirements of this section. The Secretary shall only
issue offset credits under this title pursuant to
promulgated methodologies applicable to the offset
practice that avoided or reduced greenhouse gas
emissions or sequestered greenhouse gases.
(2) Specified methodologies.--The Secretary shall
establish the following methodologies under this
section:
(A) Activity baselines.--A standardized
methodology for establishing activity baselines
for an offset practice of that type. The
Secretary shall set activity baselines to
reflect a conservative estimate of performance
or activities for the relevant type of practice
(excluding changes in performance or activities
due to the availability of offset credits) such
that the baseline provides an adequate margin
of safety to ensure the environmental integrity
of offset credits calculated in reference to
such baseline.
(B) Additionality.--A standardized
methodology for determining the additionality
of greenhouse gas emissions reduction or
avoidance, or greenhouse gas sequestration,
achieved by an offset practice of that type.
Such methodology shall ensure, at a minimum,
that any greenhouse gas emission reduction or
avoidance, or any greenhouse gas sequestration,
is considered additional only to the extent
that it results from activities that--
(i) are not required by existing
government regulations, as determined
by the Secretary;
(ii) were not commenced prior to
January 1, 2009, except in the case
of--
(I) offset project activities
that commenced after January 1,
2001, and were registered as of
the date of enactment of this
title under an offset program
with respect to which an
affirmative determination has
been made under section 740 of
the Clean Air Act; or
(II) activities that are
readily reversible, with
respect to which the Secretary
may set an alternative earlier
date under this subparagraph
that is not earlier than
January 1, 2001, where the
Secretary determines that
setting such an alternative
date may produce an
environmental benefit by
removing an incentive to cease
and then reinitiate activities
that began prior to January 1,
2009; and
(iii) exceed the applicable activity
baseline established under paragraph
(2).
(C) Quantification methods.--A standardized
methodology for determining the extent to which
greenhouse gas emission reductions or
avoidance, or greenhouse gas sequestration,
achieved by an offset practice of that type
exceeded a relevant activity baseline,
including methods for monitoring and accounting
for uncertainty.
(D) Leakage.--A standardized methodology for
accounting for and mitigating potential
leakage, if any, from an offset practice of
that type, taking uncertainty into account,
excluding international indirect land use
changes unless a positive determination is made
under section 211(o)(13)(C)(iii) of the Clean
Air Act.
(b) Special Considerations.--
(1) Existing offset practices.--In establishing the
methodologies under subsection (a), the Secretary shall
give due consideration to methodologies for offset
practices existing as of the date of the enactment of
this title.
(2) Certain factors.--As part of the methodologies
established under subsection (a), the Secretary shall
establish a formula that takes into account the
components of the practice, the characteristics of the
land on which the practice is applied, the crop
produced, and such other factors as determined
appropriate by the Secretary.
(c) Accounting for Reversals.--
(1) In general.--Except as provided in subsection (d)
with respect to issuance of a term offset credit, for
each type of practice listed under section 503, the
Secretary shall establish requirements to account for
and address reversals, including--
(A) a requirement to report any reversal with
respect to an offset practice for which offset
credits have been issued under this title;
(B) provisions to require emission allowances
or offset credits to be held in amounts to
fully compensate for greenhouse gas emissions
attributable to reversals, and to assign
responsibility for holding such emission
allowances; and
(C) any other provisions that the Secretary
determines to be necessary to account for and
address reversals.
(2) Mechanisms.--
(A) In general.--The Secretary shall
prescribe mechanisms to ensure that any
sequestration of greenhouse gases, with respect
to which an offset credit is issued under this
title, results in a permanent net increase in
sequestration of greenhouse gases, and that
full account is taken of any actual or
potential reversal of such sequestration, with
an adequate margin of safety.
(B) Specific mechanisms.--The Secretary shall
make available one or more of the following
mechanisms to meet the requirements of this
paragraph:
(i) An offsets reserve, pursuant to
paragraph (3).
(ii) Insurance that provides for
purchase and provision to the Secretary
for retirement of a quantity of offset
credits or emission allowances equal in
number to the tons of carbon dioxide
equivalents of greenhouse gas emissions
released due to reversal.
(iii) Another mechanism if the
Secretary determines it is necessary to
satisfy the requirements of this title,
taking into account whether the
reversal was intentional or
unintentional.
(3) Offsets reserve.--
(A) In general.--An offsets reserve referred
to in paragraph (2)(B)(i) is a program under
which, before issuance of offset credits under
this title, the Secretary shall--
(i) subtract and reserve from the
quantity to be issued a quantity of
offset credits based on the risk of
reversal;
(ii) hold those reserved offset
credits in the offsets reserve; and
(iii) register the holding of the
reserved offset credits in an offset
registry.
(B) Practice reversal.--
(i) In general.--If a reversal has
occurred with respect to an offset
practice within an offset project, for
which offset credits are reserved under
this paragraph, the Secretary shall
retire offset credits from the offsets
reserve to fully account for the tons
of carbon dioxide equivalent that are
no longer sequestered.
(ii) Intentional reversals.--If the
Secretary determines that a reversal
was intentional, the offset practice
developer for the relevant offset
practice shall place into the offsets
reserve a quantity of offset credits,
or combination of offset credits and
emission allowances, equal in number to
the number of reserve offset credits
that were retired pursuant to clause
(i).
(iii) Unintentional reversals.--If
the Secretary determines that a
reversal was unintentional, the offset
project developer for the relevant
offset project shall place into the
offsets reserve a quantity of offset
credits, or combination of offset
credits and emission allowances, equal
in number to half the number of offset
credits that were reserved for that
offset project, or half the number of
reserve offset credits that were
canceled due to the reversal pursuant
to clause (i), whichever is less,
except that the Secretary may lower
this amount based on undue hardship in
the event of a catastrophic occurrence.
(C) Use of reserved offset credits.--Offset
credits placed into the offsets reserve under
this paragraph may not be used to comply with
section 722 of the Clean Air Act.
(d) Term Offset Credits.--
(1) Applicability.--With respect to a practice listed
under section 503 that sequesters greenhouse gases and
has a crediting period of no more than five years, the
Secretary may address reversals pursuant to this
subsection in lieu of permanently accounting for
reversals pursuant to subsection (c).
(2) Accounting for reversals.--For such practices or
projects implementing such practices, the Secretary
shall require only reversals that occur during the
crediting period to be accounted for and addressed
pursuant to subsection (c).
(3) Credits issued.--For practices or projects
regulated pursuant to paragraph (2), the Secretary
shall issue under section 507 a term offset credit, in
lieu of an offset credit, for each ton of carbon
dioxide equivalent that has been sequestered.
(e) Crediting Periods.--
(1) In general.--For each offset practice type within
an offset project, the Secretary shall specify a
crediting period, and establish provisions for
reenrollment for a subsequent crediting period, in
accordance with this subsection.
(2) Duration.--The crediting period shall have a term
of up to--
(A) 5 years for agricultural sequestration
practices;
(B) 20 years for forestry sequestration
practices; and
(C) 10 years for other practice types that
reduce or avoid greenhouse gas emissions or
sequester greenhouse gases.
(3) Eligibility.--An offset practice, within an
offset project, shall--
(A) be eligible to generate offset credits
under this title only during the crediting
period of the offset practice; and
(B) remain eligible to generate offset
credits, only during the crediting period,
subject to the methodologies and practice type
eligibility list that applied as of the date of
the project approval.
(4) Reenrollment for subsequent crediting period.--
(A) Reenrollment authorized; time for
reenrollment.--An offset project developer may
reenroll for a subsequent crediting period, to
commence after termination of the current
crediting period, subject to the methodologies
and practice type eligibility list in effect at
the time of reenrollment. Reenrollment may not
occur more than 18 months before the end of the
crediting period then in effect.
(B) Limitation.--The Secretary may limit the
number of subsequent crediting periods
available for a particular practice type.
(f) Environmental Integrity.--In establishing the
requirements under this section, the Secretary shall apply
conservative assumptions or methods to ensure the environmental
integrity of the cap established under section 703 of the Clean
Air Act is not compromised.
SEC. 505. PROJECT PLAN SUBMISSION AND APPROVAL.
(a) Project Plan Required.--An offset project developer shall
submit to the Secretary an offset project plan for approval.
(b) Requirements.--As part of the regulations promulgated
under this title, the Secretary shall include provisions for,
and shall specify, the required components of an offset project
plan, including--
(1) designation of an offset project developer;
(2) a list and schedule of the practices to be
implemented;
(3) any other information that the Secretary
considers to be necessary--
(A) to determine whether the offset practice,
within the offset project, is eligible for
issuance of offset credits under regulations
promulgated under this title; and
(B) to achieve the purposes of this title.
(c) Time for Consideration; Notification.--Not later than 90
days after receiving a complete offset project plan under
subsection (a), the Secretary shall--
(1) approve the plan in writing and include an
estimate of the offset project credits that will be
earned if the plan is implemented, subject to
verification of all project-specific variables; or
(2) if the plan is denied, provide the reasons for
denial in writing.
(d) Appeal.--The Secretary shall establish procedures for
appeal and review of determinations made under this section.
(e) Resubmission.--After an offset project plan is approved,
the offset project developer shall not be required to resubmit
a project plan during the crediting period.
SEC. 506. VERIFICATION OF OFFSET PRACTICES.
(a) In General.--As part of the regulations promulgated under
this title, the Secretary shall establish requirements to
verify--
(1) that offset practices in an approved offset
project plan have been implemented; and
(2) the quantity of greenhouse gas emission
reductions or avoidance, or sequestration of greenhouse
gases, resulting from an offset practice and project.
(b) Verification Reports.--
(1) In general.--The regulations described in
subsection (a) shall require an offset project
developer to submit a report, prepared by a third-party
verifier accredited under subsection (c).
(2) Requirements.--The Secretary shall specify the
components of a verification report required under
paragraph (1), including--
(A) the name and contact information for the
offset project developer;
(B) a certification that the project plan has
been implemented;
(C) the quantity of greenhouse gases reduced,
avoided, or sequestered;
(D) a certification establishing that the
conflict of interest requirements in the
regulations promulgated under this title have
been complied with;
(E) any other information that the Secretary
requires to determine the quantity of
greenhouse gas emission reduction or avoidance,
or sequestration of greenhouse gases, resulting
from the offset practice and project; and
(F) any other information that the Secretary
considers to be necessary to achieve the
purposes of this title.
(c) Verifier Accreditation.--
(1) In general.--As part of the regulations
promulgated under this title, the Secretary shall
establish a process and requirements for periodic
accreditation of third-party verifiers for offset
credits under this program to ensure that those
verifiers are professionally qualified and have no
conflicts of interest.
(2) Public accessibility.--Each verifier meeting the
requirements for accreditation in accordance with this
subsection shall be listed in a publicly accessible
database, which shall be maintained and updated by the
Secretary.
SEC. 507. CERTIFICATION OF OFFSET CREDITS.
(a) Determination and Notification.--Not later than 90 days
after receiving a complete verification report, the Secretary
shall--
(1) make a determination of the quantity of
greenhouse gas emissions that have been reduced or
avoided, or greenhouse gases that have been
sequestered, by the offset practice in an approved and
verified offset project plan; and
(2) notify the offset project developer in writing of
the determination.
(b) Issuance of Offset Credits.--The Secretary shall issue 1
offset credit to an offset project developer for each ton of
carbon dioxide equivalent that the Secretary determines has
been reduced, avoided, or sequestered during the crediting
period. Offset credits may be issued only for greenhouse gas
emissions reduced, avoided, or sequestered after January 1,
2009.
(c) Appeal.--The Secretary shall establish procedures for
appeal and review of determinations made under subsection (a).
(d) Timing.--Offset credits meeting the criteria described in
subsection (b) shall be issued by the Secretary not later than
14 days after the date on which the Secretary makes a
determination under subsection (a).
(e) Registration.--The Secretary shall obtain from the
Administrator a unique serial number to allow for the
registration of each offset credit to be issued under this
title.
SEC. 508. OWNERSHIP AND TRANSFER OF OFFSET CREDITS.
(a) Ownership.--Initial ownership of an offset credit shall
lie with the offset project developer, unless otherwise
specified in a legally binding contract or agreement.
(b) Transferability.--An offset credit issued under this
title may be sold, traded, or transferred, unless the offset
credit has expired or been retired.
SEC. 509. PROGRAM REVIEW AND REVISION.
At least once every 5 years, the Secretary shall review and,
based on new or updated information and taking into
consideration the recommendations of the Advisory Board, update
and revise--
(1) the list of eligible practice types established
under section 503;
(2) the methodologies established, including specific
activity baselines, under section 504(a);
(3) the reversal requirements and mechanisms
established or prescribed under subsections (c) and (d)
of section 504;
(4) measures to improve the accountability of the
offsets program; and
(5) any other requirements established under this
title to ensure the environmental integrity and
effective operation of this title.
SEC. 510. ENVIRONMENTAL CONSIDERATIONS.
If the Secretary lists forestry practices as eligible offset
practice types under section 503, the Secretary, in
consultation with appropriate Federal agencies, shall
promulgate regulations for the selection and use of species in
forestry and other relevant land management-related offset
practices--
(1) to ensure that native species are given primary
consideration in such practices;
(2) to encourage the conservation of biological
diversity in such practices;
(3) to prohibit the use of federally designated or
State-designated noxious weeds;
(4) to prohibit the use of a species listed by a
regional or State invasive plant authority within the
applicable region or State; and
(5) in accordance with widely accepted,
environmentally sustainable forestry practices.
SEC. 511. AUDITS.
(a) Audits Required.--The Secretary shall conduct, on an
annual basis, random audits of offset projects, offset credits,
and the practices of third-party verifiers. At a minimum, the
Secretary shall conduct audits each year for a representative
sample of practice types and geographical areas.
(b) Additional Authority.--Nothing in this section prevents
the Secretary from conducting any audit the Secretary considers
to be necessary.
Subtitle B--USDA Greenhouse Gas Emission Reduction and Sequestration
Advisory Committee
SEC. 531. ESTABLISHMENT OF USDA GREENHOUSE GAS EMISSION REDUCTION AND
SEQUESTRATION ADVISORY COMMITTEE.
Section 1245 of the Food Security Act of 1985 (16 U.S.C.
3854), as added by section 2709 of the Food, Conservation, and
Energy Act of 2008 (Public Law 110-246; 122 Stat. 1809), is
amended by adding at the end the following new subsection:
``(f) USDA Greenhouse Gas Emission Reduction and
Sequestration Advisory Committee.--
``(1) Establishment.--Not later than 30 days after
the date of the enactment of the American Clean Energy
and Security Act of 2009, the Secretary shall establish
an independent advisory committee, to be known as the
`USDA Greenhouse Gas Emission Reduction and
Sequestration Advisory Committee', to provide
scientific and technical advice on establishing,
implementing, and ensuring the overall environmental
integrity of an offset program for domestic
agricultural and forestry practices that reduce or
avoid greenhouse gas emissions, or sequester greenhouse
gases.
``(2) Membership.--The Advisory Committee shall be
comprised of nine members, including a chairperson and
vice-chairperson, appointed by the Secretary. Each
member shall be qualified by education, training, and
experience to evaluate scientific and technical
information for domestic agricultural and forestry
offset practices that reduce or avoid greenhouse gas
emissions or sequester greenhouse gases.
``(3) Terms.--Terms shall be 3 years in length,
except for the initial terms, which may be up to 5
years in length to allow staggered terms. Members may
be reappointed only once for an additional 3-year term,
and such term may follow directly after a first term.
``(4) Duties.--The Advisory Committee shall--
``(A) provide options and recommendations,
not later than 180 days after the date of the
enactment of the American Clean Energy and
Security Act of 2009, to the Secretary
regarding the establishment of methodologies as
described in section 504 of such Act, taking
into account relevant scientific information,
including--
``(i) the availability of
representative data for use in
developing an activity baseline for a
land area, forest, soil, industry
sector, and facility type;
``(ii) the potential for accurate
quanitification of greenhouse gas
reduction, or sequestration for an
offset practice type;
``(iii) the potential level of
scientific and measurement uncertainty
associated with an offset practice
type; and
``(iv) the use of practice
methodologies that account for common
practice or other direct comparisons
within a relevant land area, industry
sector, forest, soil, or facility type;
``(B) make available to the Secretary options
and recommendations for the program as a whole
and on offset methodologies for each practice
type that should be considered under
regulations promulgated pursuant to section 504
of the American Clean Energy and Security Act
of 2009, including methodologies to address the
issues of additionality, activity baselines,
measurement, leakage, including the application
of sector specific leakage factors,
uncertainty, permanence, and environmental
integrity;
``(C) make available to the Secretary advice
and comment on areas where further knowledge is
required to appraise the adequacy of existing,
revised, or proposed methodologies and describe
the research efforts necessary to provide the
required information;
``(D) make available to the Secretary advice
and comments on other ways to improve or
safeguard the environmental integrity of the
offset practice types listed under section 503
of the American Clean Energy and Security Act
of 2009; and
``(E) provide options and recommendations
regarding new practice types.
``(5) Scientific review of offset program.--Not later
than January 1, 2017, and at 5-year intervals
thereafter, the Advisory Committee shall--
``(A) submit to the Secretary and make
available to the public an analysis of relevant
scientific and technical information regarding
agricultural and forestry offset practices that
reduce or avoid greenhouse gas emissions or
sequester greenhouse gases;
``(B) review approved and potential practice
types, methodologies, scientific studies,
offset project monitoring, offset project
verification reports, reporting of reversals,
audits related to the offset program, and other
relevant information needed to evaluate the
offset program;
``(C) evaluate the net emission effects of
implemented offset projects; and
``(D) recommend changes to offset
methodologies, procedures, practice types, or
the overall program to ensure that--
``(i) the offset practices result in
reduced or avoided greenhouse gas
emissions or sequestration of
greenhouse gases;
``(ii) the offset credits issued by
the Secretary do not compromise the
integrity of the annual emissions
reductions established under section
703 of the Clean Air Act; and
``(iii) the offset program avoids or
minimizes adverse affects to human
health and the environment.
``(6) Coordination.--To avoid duplication, the
Advisory Committee shall coordinate its activities with
those of any other Federal advisory committees working
in related areas, and shall to the maximum extent
possible use research data and services of the
research, education, extension agencies of the
Department of Agriculture.
``(7) Consultation.--On a periodic basis, the
Advisory Committee shall consult with, and be informed
by the views of, the Offsets Integrity Advisory Board
established under section 731 of the Clean Air Act.
``(8) Meeting.--The Advisory Committee shall meet on
at least a quarterly basis each year.
``(9) Administrative support and funding.--The
Secretary may provide such administrative and funding
support as necessary to enable the Advisory Committee
to carry out its duties under this section.
``(10) Report.--For each fiscal year, the Secretary
shall submit to Congress a report on--
``(A) the status and progress on the offset
practices;
``(B) the general status of cooperation and
research and development; and
``(C) the plans for addressing future issues
and concerns.''.
Subtitle C--Miscellaneous
SEC. 551. INTERNATIONAL INDIRECT LAND USE CHANGES.
Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is
amended by adding at the end the following
``(13) International indirect land use changes.--
``(A) Exclusion from regulatory requirements
regarding lifecycle greenhouse gas emissions.--
Notwithstanding the definition of `lifecycle
greenhouse gas emissions' in paragraph (1)(H),
for purposes of determining whether the fuel
meets a definition in paragraph (1) or complies
with paragraph (2)(A)(i), the Administrator
shall exclude emissions from indirect land use
changes outside the renewable fuel's
feedstock's country of origin.
``(B) National academies of science report.--
(i) Not later than 6 months after the date of
enactment of this paragraph, the Administrator
and the Secretary of Agriculture shall jointly
arrange for the National Academies of Science
to review and report on specified issues
related to indirect greenhouse gas emissions
related to transportation fuels.
``(ii) The report shall evaluate and report
on whether there are economic and environmental
models and methodologies that individually, or
as a system, can project with reliability,
predictability, and confidence--
``(I) for purposes of determining
whether the fuel meets a definition in
paragraph (1) or complies with
paragraph (2)(A)(i), indirect land use
changes that are related to the
production of renewable fuels and that
may occur outside the country in which
the feedstocks are grown, and the
impacts of these changes on greenhouse
gas emissions; and
``(II) indirect effects, both
domestic and international, related to
the production and importation of non-
renewable transportation fuels that
have significant greenhouse gas
emissions, and the impact of these
effects on greenhouse gas emissions.
``(iii) The report shall include a review and
assessment of all pertinent scientific studies,
methodologies and data, shall evaluate
potential methodologies for calculating such
emissions (including an evaluation of methods
for annualizing emissions associated with
forest degradation or land conversion), and
shall make appropriate recommendations. The
recommendations shall address indirect effects,
both domestic and international, related to the
production and importation of non-renewable
transportation fuels that have significant
greenhouse gas emissions. The report shall use
appropriate validation procedures, including
sensitivity analyses, of how results change as
assumptions change. The evaluation shall
include for a model, a methodology, or a system
of models--
``(I) an assessment of how reliably
the models, methodologies, or systems
track actual outcomes over historical
periods using available historical
data; and
``(II) an assessment of how reliably
the models, methodologies or systems
will project future outcomes.
``(iv) The report shall be publicly available
and shall include sufficient information and
data such that economists and other scientists
with relevant expertise that are not on the
National Academies of Science panel can fully
evaluate the conclusions of the report.
``(v) The report shall be completed within
three years of the date of enactment of this
paragraph.
``(C) Determination.--(i) The Administrator
and the Secretary of Agriculture shall, after
notice and an opportunity for public comment,
determine whether, for purposes of determining
compliance with the percent reductions in
lifecycle greenhouse gas emissions specified in
paragraph (1) for various renewable fuels,
scientifically valid models and methodologies
exist to project indirect land use changes that
are related to the production of renewable
fuels and that occur outside the country in
which the feedstocks are grown, and the impact
of these changes on greenhouse gas emissions.
``(ii) The determination shall take into
account the findings and recommendations of the
report required under subparagraph (B), as well
as other available scientific, economic, and
other relevant information. The Administrator
and the Secretary may also consider methods
used by the Environmental Protection Agency,
the Department of Agriculture, and other
Federal agencies to assess or guide their
related policies.
``(iii) The Administrator and the Secretary
of Agriculture shall publish a proposed
determination not later than 4 years after date
of enactment of this paragraph, and shall
publish a final determination not later than 5
years after date of enactment of this
paragraph. An explanation and justification of
the determination shall be included in the
proposed and final actions, together with a
response to comments received.
``(D) Response to determination.--(i) In the
event of a positive determination under
subparagraph (C), the Administrator and the
Secretary of Agriculture shall, after notice
and an opportunity for public comment, by the
same date jointly establish a methodology (or
methodologies) to calculate greenhouse gas
emissions from indirect land use changes that
are attributable to the production of renewable
fuels and that occur outside the country in
which feedstocks are grown for purposes of
calculating a renewable fuel's lifecycle
greenhouse gas emissions to determine whether
the fuel meets a definition in paragraph (1) or
complies with paragraph (2)(A)(i). The
exclusion in subparagraph (A) shall end, and
the Administrator shall issue a regulation by
the same date that shall include emissions from
indirect land use changes outside the renewable
fuel's feedstock's country of origin for
purposes of calculating a renewable fuel's
lifecycle greenhouse gas emissions to determine
whether the fuel meets a definition in
paragraph (1) or complies with paragraph
(2)(A)(i) for renewable fuels sold in the
calendar year following the year of the
positive determination. The effective date of
the regulation shall be six years after the
date of enactment of this paragraph.
``(ii) A negative determination under
subparagraph (C) shall include a statement of
the basis for the determination.
``(E) Accountability.--The joint duties and
actions of the Administrator and the Secretary
of Agriculture shall be subject to sections 304
and 307 of this Act as if they were the duties
and actions of the Administrator alone.''.
SEC. 552. BIOMASS-BASED DIESEL.
Section 211(o)(2)(A) of the Clean Air Act (42 U.S.C.
7545(o)(2)(A)) is amended by adding at the end the following
new clause:
``(v) Grandfathering biomass-based
diesel.--The Administrator shall
promulgate regulations exempting from
the lifecycle greenhouse gas
requirements in subparagraphs (B) and
(D) of paragraph (1) up to the greater
of 1 billion gallons or the volume
mandate adopted pursuant to
subparagraph (B)(ii) of biomass-based
diesel annually from facilities that
commenced construction before the date
of enactment of the Energy Independence
and Security Act of 2007.''.
SEC. 553. MODIFICATION OF DEFINITION OF RENEWABLE BIOMASS.
(a) National Academy of Sciences Report.--Not later than 1
year after the date of enactment of this Act, the Administrator
of the Environmental Protection Agency, the Secretary of
Agriculture, and the Federal Energy Regulatory Commission shall
jointly arrange for the National Academy of Sciences to
evaluate how sources of renewable biomass contribute to the
goals of increasing America's energy independence, protecting
the environment, and reducing global warming pollution.
(b) Modification.--
(1) EPA modification authority.--After reviewing the
report required by subsection (a), the Administrator of
the Environmental Protection Agency, in concurrence
with the Secretary of Agriculture, may, by regulation
and after public notice and comment, modify the non-
Federal lands portion of the definition of ``renewable
biomass'' in sections 211(o)(1)(I) and 700 of the Clean
Air Act in order to advance the goals of increasing
America's energy independence, protecting the
environment, and reducing global warming pollution.
(2) FERC modification authority.--After reviewing the
report required by subsection (a), the Federal Energy
Regulatory Commission, in concurrence with the
Secretary of Agriculture, may, by regulation and after
public notice and comment, modify the non-Federal lands
portion of the definition of ``renewable biomass'' in
section 610 of the Public Utility Regulatory Policies
Act of 1978 in order to advance the goals of increasing
America's energy independence, protecting the
environment, and reducing global warming pollution.
(c) Federal Lands.--
(1) Scientific review.--The Secretary of the
Interior, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency
shall conduct a joint scientific review, within one
year after the date of enactment of this Act, to
evaluate how sources of biomass from Federal lands
could contribute to the goals of increasing America's
energy independence, protecting the environment, and
reducing global warming pollution.
(2) Modification authority.--Based on the scientific
review, the agencies may, by rule, modify the
definition of ``renewable biomass'' from Federal lands
in sections 211(o)(1)(I) and 700 of the Clean Air Act
and section 610 of the Public Utility Regulatory
Policies Act of 1978 as appropriate to advance the
goals of increasing America's energy independence,
protecting the environment, and reducing global warming
pollution.
----------
PART B--TEXT OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE TO BE MADE
IN ORDER
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``New Manhattan Project for
Energy Independence''.
SEC. 2. DEFINITIONS.
In this Act--
(1) Commission.--The term ``Commission'' means the
Commission established under section 7.
(2) Research.--The term ``research'' includes
research on the technologies, materials, and
manufacturing processes required to achieve the goals
described in section 3.
SEC. 3. GOALS.
(a) In General.--The purpose of this Act is to enable the
achievement of each of the following goals:
(1) Vehicle fuel efficiencies and alternative fuel
sources.--Development and manufacturing of a plug-in
hybrid vehicle, alternative fuel vehicle, electric
vehicle, hydrogen fuel cell vehicle, or other
alternative technology vehicle--
(A) that is not more than 10 percent more
expensive than a comparable model vehicle of
the same model year;
(B) with--
(i) equal acceleration, horsepower,
and top speed performance; and
(ii) not more than 20 percent
reduction in cargo space,
as compared to a comparable model vehicle of
the same model year;
(C) that meets or exceeds Federal safety
standards;
(D) that can travel at least 750 miles
between refueling; and
(E) in the case of a gasoline powered
vehicle, that can travel at least 70 miles per
gallon of gasoline.
(2) Green buildings.--Develop and build an energy
efficient residential or commercial building that--
(A) uses no more than 50 percent of the
energy of the average new building of similar
size and type;
(B) costs no more than 15 percent more to
construct than the cost of a building of
similar size and type; and
(C) can be effectively reproduced in a
variety of climate environments found in the
United States.
(3) Solar power.--Construction of a large scale solar
thermal power plant or solar photovoltaic power plant
capable of generating 300 megawatts or more at a cost
of 10 cents or less per kilowatt-hour when all capital
and operating expenses are calculated into the cost.
(4) Biofuels.--Development and production of a
biofuel that, when mass produced, does not exceed 105
percent of the cost for the energy equivalent of
unleaded gasoline when all capital and operating
expenses are calculated into the cost of the biofuel.
(5) Carbon sequestration.--Development and
implementation of a carbon capture and storage system
for a large scale coal-burning power plant that does
not increase operating costs more than 15 percent
compared to a baseline design without carbon capture
and storage while providing an estimated chance of
carbon dioxide escape no greater than 1 percent over
5,000 years.
(6) Nuclear waste.--Development of both--
(A) a validated process for remediation of
the radioactive waste form so it is no longer
harmful to the health or welfare of the
environment or individuals for a period to be
determined by the Commission, which shall be
not less than 5,000 years; and
(B) a model that accounts for all the effects
of nuclear waste in that process.
(7) Nuclear fusion.--Development of a sustainable
nuclear fusion reaction capable of providing a large-
scale (greater than 300 megawatts), sustainable source
of electricity for residential, commercial, or
government entities.
(b) Amendment of Goals.--The Secretary of Energy may amend a
goal described in subsection (a) pursuant to a recommendation
from the Commission under section 7(b)(5), or on his own
initiative, if such amendment serves the purpose of achieving
the goal of United States energy independence through the
development of technologies that lead to the widespread
adoption of improvements that increase energy supply or energy
efficiency.
SEC. 4. SUMMIT.
(a) In General.--Not later than 60 days after the date of
enactment of this Act, the President shall convene a summit
that includes--
(1) the principal advisors and directors of all
programs in the Federal Government related to the
achievement of the goals described in section 3;
(2) the members of the Commission; and
(3) leading researchers at the Federal laboratories
and representatives of private sector partners engaged
in the production and manufacturing of technologies
necessary to achieve the goals described in section 3.
(b) Purpose.--The summit shall be for the purpose of
reviewing the progress and promise for each of these
technologies, the interrelationship of these technologies to
each other, and additional funding resources needed to
accelerate the progress of these programs toward achieving the
goals described in section 3.
SEC. 5. GRANT PROGRAM.
(a) In General.--The Secretary of Energy, in consultation
with the Secretary of Defense, the Secretary of Transportation,
the Administrator of the Environmental Protection Agency, and
other Federal agencies as appropriate, shall carry out a
program consisting of a collaborative effort with industry,
government, and academia to support research, development,
demonstration, and commercial application activities related to
achieving the goals described in section 3.
(b) Grants.--Such program shall consist of grants to
researchers, large and small businesses, National Laboratories,
institutions of higher education, or any other qualified
applicant, including veterans.
(c) Limitation on Amount.--No grant shall be made under this
section in an amount that exceeds 5 percent of the amount
authorized under section 8(1) for prizes for the achievement of
the same goal.
(d) Cost Sharing.--The Federal share of the costs of a
project for which a grant is made under this section shall not
exceed 15 percent.
SEC. 6. PRIZE PROGRAM.
(a) Prize Authority.--
(1) In general.--The Secretary of Energy shall carry
out a program to competitively award cash prizes in
conformity with this section to advance the research,
development, demonstration, and commercial application
necessary to achieve the goals described in section 3.
(2) Advertising and solicitation of competitors.--
(A) Advertising.--The Secretary shall widely
advertise prize competitions under this section
to encourage broad participation by
researchers, large and small businesses,
institutions of higher education, and any other
qualified applicants, including veterans.
(B) Announcement through federal register
notice.--The Secretary shall announce each
prize competition under this section by
publishing a notice in the Federal Register.
This notice shall include essential elements of
the competition such as the subject of the
competition, the duration of the competition,
the eligibility requirements for participation
in the competition, the process for
participants to register for the competition,
the amount of the prize, and the criteria for
awarding the prize, which shall include, at a
minimum, the achievement of one of the goals
described in section 3.
(3) Announcement of prizes.--The Secretary may not
issue a notice required by paragraph (2)(B) until all
the funds needed to pay out the announced amount of the
prize have been appropriated.
(b) Prize Categories.--
(1) Categories.--The Secretary of Energy shall
establish a single prize under this section for each of
the goals described in paragraphs (1) through (7) of
section 3.
(2) Criteria.--In establishing the criteria required
by this section, the Secretary--
(A) shall consult with other Federal
agencies, including the National Science
Foundation; and
(B) may consult with other experts such as
private organizations, including professional
societies, industry associations, and the
National Academy of Sciences and the National
Academy of Engineering.
(c) Eligibility.--To be eligible to win a prize under this
section, an individual or entity--
(1) shall have complied with all the requirements in
accordance with the Federal Register notice required
under subsection (a)(2)(B);
(2) in the case of a private entity, shall be
incorporated in and maintain a primary place of
business in the United States, and in the case of an
individual, whether participating singly or in a group,
shall be a citizen of, or an alien lawfully admitted
for permanent residence in, the United States; and
(3) shall not be a Federal entity, a Federal employee
acting within the scope of his employment, or an
employee of a national laboratory acting within the
scope of his employment.
(d) Award Selection.--
(1) In general.--The Secretary of Energy shall award
prizes under this section on the basis of the criteria
published in the notice required under subsection
(a)(2)(B), after receiving the recommendations of the
Commission under section 7(b)(3).
(2) Congressional notification.--If the Secretary
awards a prize under paragraph (1) in a manner that
does not conform to the recommendations of the
Commission, the Secretary shall transmit a report to
the Congress explaining the reasons for such action.
(e) Intellectual Property.--The Federal Government shall not,
by virtue of offering or awarding a prize under this section,
be entitled to any intellectual property rights derived as a
consequence of, or direct relation to, the participation by a
registered participant in a competition authorized by this
section. This subsection shall not be construed to prevent the
Federal Government from negotiating a license for the use of
intellectual property developed for a prize competition under
this section.
(f) Liability.--
(1) Waiver of liability.--The Secretary of Energy may
require registered participants to waive claims against
the Federal Government (except claims for willful
misconduct) for any injury, death, damage, or loss of
property, revenue, or profits arising from the
registered participants' participation in a competition
under this section. The Secretary shall give notice of
any waiver required under this paragraph in the notice
required by subsection (a)(2)(B).
(2) Liability insurance.--
(A) Requirements.--Registered participants in
a prize competition under this section shall be
required to obtain liability insurance or
demonstrate financial responsibility, in
amounts determined by the Secretary, for claims
by--
(i) a third party for death, bodily
injury, or property damage or loss
resulting from an activity carried out
in connection with participation in a
competition under this section; and
(ii) the Federal Government for
damage or loss to Government property
resulting from such an activity.
(B) Federal government insured.--The Federal
Government shall be named as an additional
insured under a registered participant's
insurance policy required under subparagraph
(A) with respect to claims described in clause
(i) of that subparagraph, and registered
participants shall be required to agree to
indemnify the Federal Government against third
party claims for damages arising from or
related to competition activities under this
section.
(g) Nonsubstitution.--The programs created under this section
shall not be considered a substitute for Federal research and
development programs.
SEC. 7. COMMISSION.
(a) Establishment.--There shall be established the New
Manhattan Project Commission on Energy Independence.
(b) Functions.--The Commission shall--
(1) not later than 1 year after the date of enactment
of this Act, submit to Congress and the President a
report containing--
(A) recommendations on steps that must be
taken in order for the United States to achieve
50 percent energy independence within 10 years
and 100 percent energy independence within 20
years; and
(B) an assessment of the impact of foreign
energy dependence on United States national
security;
(2) advise the Secretary of Energy on the design and
operation of the grant program established under
section 5;
(3) make recommendations to the Secretary of Energy
on the design and operation, including selection
criteria, of the prize program carried out under
section 6;
(4) make recommendations to the Secretary of Energy
selecting participants who have achieved a goal for
which a prize will be awarded under section 6; and
(5) submit recommendations to Congress for any
amendments to make the goals described in section 3
more stringent, as appropriate because of changing
circumstances, if such amendments serve the purpose of
achieving the goal of United States energy independence
through the development of technologies that lead to
the widespread adoption of improvements that increase
energy supply or energy efficiency.
(c) Membership.--The Commission shall be composed of 13
members as follows:
(1) The Under Secretary for Science of the Department
of Energy.
(2) The Administrator of the Research and Innovative
Technology Administration.
(3) The Director of the National Science Foundation.
(4) The Chairman of the Federal Laboratory Consortium
for Technology Transfer.
(5) The President of the National Academy of
Sciences.
(6) 2 members appointed by the Speaker of the House
of Representatives.
(7) 2 members appointed by the minority leader of the
House of Representatives.
(8) 2 members appointed by the majority leader of the
Senate.
(9) 2 members appointed by the minority leader of the
Senate.
(d) Terms of Membership.--Each member of the Commission
appointed under subsection (c)(6) through (9) shall be
appointed for a term of two years, except that of the members
first appointed, one under each of those paragraphs shall be
appointed for a term of one year. A member of the Commission
may serve after the expiration of the member's term until a
successor has taken office.
(e) Vacancies.--A vacancy in the Commission shall not affect
its powers but, in the case of a member appointed under
subsection (c)(6) through (9), shall be filled in the same
manner as the original appointment was made. Any member
appointed to fill a vacancy for an unexpired term shall be
appointed for the remainder of such term.
(f) Quorum.--Seven members of the Commission shall constitute
a quorum.
(g) Meetings.--The Commission shall meet at the call of the
Chairman or a majority of its members.
(h) Compensation.--(1) Each member of the Commission shall
serve without compensation.
(2) While away from their homes or regular places of business
in the performance of duties for the Commission, members of the
Commission shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees of
agencies under sections 5702 and 5703 of title 5, United States
Code.
(i) Staff.--Subject to rules prescribed by the Commission,
the Commission may appoint personnel as it considers
appropriate.
(j) Applicability of Certain Civil Service Laws.--The staff
of the Commission shall be appointed subject to the provisions
of title 5, United States Code, governing appointments in the
competitive service, and shall be paid in accordance with the
provisions of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General Schedule pay
rates.
(k) Experts and Consultants.--The Commission may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code.
(l) Hearings and Sessions.--The Commission may, for the
purpose of carrying out this Act, hold hearings, sit and act at
times and places, take testimony, and receive evidence as the
Commission considers appropriate.
(m) Powers of Members and Agents.--Any member or agent of the
Commission may, if authorized by the Commission, take any
action which the Commission is authorized to take by this
section.
(n) Obtaining Official Data.--The Commission may secure
directly from any department or agency of the United States
information necessary to enable it to carry out this Act. Upon
request of the Commission, the head of that department or
agency shall furnish that information to the Commission.
(o) Subpoena Power.--
(1) In general.--The Commission may issue subpoenas
requiring the attendance and testimony of witnesses and
the production of any evidence relating to any matter
under investigation by the Commission. The attendance
of witnesses and the production of evidence may be
required from any place within the United States at any
designated place of hearing within the United States.
(2) Failure to obey a subpoena.--If a person refuses
to obey a subpoena issued under paragraph (1), the
Commission may apply to a United States district court
for an order requiring that person to appear before the
Commission to give testimony, produce evidence, or
both, relating to the matter under investigation. The
application may be made within the judicial district
where the hearing is conducted or where that person is
found, resides, or transacts business. Any failure to
obey the order of the court may be punished by the
court as civil contempt.
(3) Service of subpoenas.--The subpoenas of the
Commission shall be served in the manner provided for
subpoenas issued by a United States district court
under the Federal Rules of Civil Procedure for the
United States district courts.
(4) Service of process.--All process of any court to
which application is made under paragraph (2) may be
served in the judicial district in which the person
required to be served resides or may be found.
(p) Federal Advisory Committee Act.--Section 14 of the
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply
to the Commission.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of
Energy--
(1) for the period encompassing fiscal years 2010
through 2019--
(A) $500,000,000 for awarding the prize under
section 6 for meeting the goal described in
section 3(1);
(B) $250,000,000 for awarding the prize under
section 6 for meeting the goal described in
section 3(2);
(C) $250,000,000 for awarding the prize under
section 6 for meeting the goal described in
section 3(3);
(D) $1,000,000,000 for awarding the prize
under section 6 for meeting the goal described
in section 3(4);
(E) $1,000,000,000 for awarding the prize
under section 6 for meeting the goal described
in section 3(5);
(F) $1,000,000,000 for awarding the prize
under section 6 for meeting the goal described
in section 3(6);
(G) $10,000,000,000 for awarding the prize
under section 6 for meeting the goal described
in section 3(7); and
(H) $10,000,000,000 for carrying out the
grant program under section 5; and
(2) such sums as may be necessary for carrying out
this Act for subsequent fiscal years.