[House Report 110-474]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-474
=====================================================================
PROVIDING FOR THE CONSIDERATION OF THE SENATE AMENDMENTS TO THE BILL
(H.R. 6) TO REDUCE OUR NATION'S DEPENDENCY ON FOREIGN OIL BY INVESTING
IN CLEAN, RENEWABLE, AND ALTERNATIVE ENERGY RESOURCES, PROMOTING NEW
EMERGING ENERGY TECHNOLOGIES, DEVELOPING GREATER EFFICIENCY, AND
CREATING A STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE TO INVEST
IN ALTERNATIVE ENERGY, AND FOR OTHER PURPOSES
_______
December 5, 2007.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Welch, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 846]
The Committee on Rules, having had under consideration
House Resolution 846, by a record vote 9-3, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for the consideration of the Senate
amendments to H.R. 6, to reduce our Nation's dependency on
foreign oil by investing in clean, renewable, and alternative
energy resources, promoting new emerging energy technologies,
developing greater efficiency, and creating a Strategic Energy
Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes. The resolution makes in order a
motion by the Majority Leader to concur in the Senate
amendments with the House amendments printed in this report.
The resolution waives all points of order against the motion
except clause 10 of rule XXI. The resolution provides that the
Senate amendments and the motion shall be considered as read.
The resolution provides one hour of debate on the motion
equally divided and controlled by the Majority Leader and the
Minority Leader. The resolution further provides that the Chair
may postpone further consideration of the motion to a time
designated by the Speaker.
EXPLANATION OF WAIVERS
Although the rule waives all points of order against
consideration of the motion (except for clause 10 of rule XXI)
the Committee is not aware of any points of order against the
motion. The waiver of all points of order against the motion is
prophylactic in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 402
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Diaz-Balart.
Summary of motion: To grant an open rule.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 403
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Shimkus (IL), #8, to amend
Section 211 of the Clean Air Act to create a limited
alternative fuel program that includes renewable fuel, coal-
derived fuel blended with renewable sources, fuel derived from
biologic materials, electricity derived from renewable
resources, and any other fuel that the Administrator determines
is derived by renewable resources, not derived from crude oil,
and would yield security or environmental benefits.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 404
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Sullivan (OK), #7, to strike
title II, subtitle A of the bill.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 405
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Upton (MI), #4, to strike
Title XIV, the Renewable Electricity Standard.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 406
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. McCrery (LA), #2, to strike
the revenue raising provisions.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 407
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. McCrery (LA), #1, to insert
AMT relief identical to what the House passed in H.R. 3996.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 408
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Hastings (WA).
Summary of motion: To allow any motion to strike any
provision of the amendment which qualifies as an earmark
pursuant to the definition of an earmark in clause 9 of rule
XXI.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 409
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Shuster (PA), #5, to allow a
one year tax credit for $500 ($1000 for a joint return) for
those earning 200% (or less) of the poverty line whose primary
source of heating energy is home heating oil.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 410
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Buyer (IN), #3, to strike the
language contained in Section 413, ``Energy code improvements
applicable to manufactured housing.''
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Diaz-Balart--Yea; Hastings (WA)--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 411
Date: December 5, 2007.
Measure: Senate amendments to H.R. 6.
Motion by: Mr. McGovern.
Summary of motion: To report the rule.
Results: Adopted 9-3.
Vote by Members: McGovern--Yea; Hastings (FL)--Yea;
Matsui--Yea; Cardoza--Yea; Welch--Yea; Castor--Yea; Arcuri--
Yea; Sutton--Yea; Diaz-Balart--Nay; Hastings (WA)--Nay;
Sessions--Nay; Slaughter--Yea.
SUMMARY OF THE HOUSE AMENDMENTS TO THE SENATE AMENDMENTS TO H.R. 6
Increases the fuel efficiency of vehicles to 35 miles per
gallon by 2020. Allows automakers to calculate the mileage
based on vehicle attributes and to distinguish between cars and
trucks. It requires manufacturers to achieve a fleet wide
average of 35 miles per gallon in 2020. The bill includes
incentives for the big American manufacturers to build small
cars in the U.S. It extends flex fuel vehicle credits for
automakers who produce vehicles that can run on E-85 through
2019.
Amends the current Renewable Fuel Standard in the Clean Air
Act to require the production and use of at least 36 billion
gallons of renewable fuel in this country by 2022, capping corn
ethanol at 15 billion gallons. This would represent more than
25% of the gasoline that we use in this country today. It also
requires that an increasing portion of renewable fuels must be
advanced biofuels until we reach 21 billion gallons in 2022. A
portion of the advanced biofuel mandate qualifies as cellulosic
biofuel that derives from a cellulosic feedstock. The bill also
requires the production and use of one billion gallons of
biodiesel in this country by 2012.
Requires that 15 percent of our electricity come from
renewable sources (Renewable Electricity Standard). The measure
exempts municipal and other publicly-owned power plants,
federal agencies and rural electric coops and small private
utilities, and it permits utilities to use energy efficiency
savings to meet up to 4 percent of the targeted 15 percent and
to give utilities more time to ramp-up renewable energy sales.
Includes new energy efficiency standards for a wide range
of products, appliances, lighting and buildings.
Includes tax incentives for renewable energy, including
solar, wind, biomass, geothermal technologies, clean coal, as
well as biodiesel and cellulosic ethanol. Also establishes a
new tax credit for plug-in and electric vehicles, and extends
energy efficiency tax credit for homes, commercial buildings,
and appliances.
Authorizes $2 billion of new clean renewable energy bonds
to finance facilities that generate electricity from wind,
closed- and open-loop biomass, geothermal, small irrigation,
hydropower, landfill gas, marine renewable, and trash
combustion facilities. The bond authority is divided between
qualifying projects of state/local/tribal governments, public
power providers, and electric cooperatives.
Creates a new category of tax credit bonds for State and
local governments to promote green community programs and
initiatives designed to reduce greenhouse gas emissions.
Promotes fiscal responsibility by fully paying for the
$21.5 billion bill with repeal of $13 billion in tax giveaways
for oil and gas companies, which were enacted during a time of
record profits, and with other revenue raisers from the
President's budget.
The bill includes energy research provisions in solar,
geothermal and marine renewable energy.
Authorizes a nationwide assessment of geological formations
capable of sequestering carbon dioxide underground. Includes
research and development in carbon sequestration, including
large-volume sequestration tests in a variety of different
geological formations.
The bill directs the federal government to promote U.S.
energy exports of clean, efficient technologies to India and
China and other developing countries.
Creates an Energy Efficiency and Renewable Energy Worker
Training Program to train a quality workforce for ``green''
collar jobs--such as solar panel manufacturer and green
building construction worker--created by federal renewable
energy and energy efficiency initiatives.
The bill increases loan limits to help small businesses
develop energy efficient technologies and purchases and
provides information to small businesses to reduce energy
costs.
Increases the federal share for CMAQ, promotes short-sea
shipping, and includes capital grants for railroads.
TEXT OF THE HOUSE AMENDMENTS TO THE SENATE AMENDMENTS TO H.R. 6
In lieu of the matter proposed to be inserted for the text
of the bill, H.R. 6, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Independence and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is
as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to other law.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy Standards
Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain
other vehicles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-
duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling
procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.
Subtitle B--Improved Vehicle Technology
Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts
manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive program.
Subtitle C--Federal Vehicle Fleets
Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric
vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations on
fuels and fuel additives.
Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.
Subtitle B--Biofuels Research and Development
Sec. 221. Biodiesel.
Sec. 222. Biogas.
Sec. 223. Grants for biofuel production research and development in
certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85
fuel.
Sec. 226. Study of engine durability and performance associated with the
use of biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of
appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.
Subtitle C--Biofuels Infrastructure
Sec. 241. Prohibition on franchise agreement restrictions related to
renewable fuel infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of domestically-
produced renewable fuel by railroads and other modes of
transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels infrastructure.
Subtitle D--Environmental Safeguards
Sec. 251. Waiver for fuel or fuel additives.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING
Subtitle A--Appliance Energy Efficiency
Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying State
authority.
Sec. 306. Regional standards for furnaces, central air conditioners, and
heat pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 310. Standby mode.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and
heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in
cold climates.
Sec. 316. Technical corrections.
Subtitle B--Lighting Energy Efficiency
Sec. 321. Efficient light bulbs.
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
Sec. 401. Definitions.
Subtitle A--Residential Building Efficiency
Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.
Subtitle B--High-Performance Commercial Buildings
Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.
Subtitle C--High-Performance Federal Buildings
Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal
buildings.
Sec. 433. Federal building energy efficiency performance standards.
Sec. 434. Management of Federal building efficiency .
Sec. 435. Leasing.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development
projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.
Subtitle D--Industrial Energy Efficiency
Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.
Subtitle E--Healthy High-Performance Schools
Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.
Subtitle F--Institutional Entities
Sec. 471. Energy sustainability and efficiency grants and loans for
institutions.
Subtitle G--Public and Assisted Housing
Sec. 481. Application of International Energy Conservation Code to
public and assisted housing.
Subtitle H--General Provisions
Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program
for local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A--United States Capitol Complex
Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master
plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power
plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility study
and demonstration projects.
Subtitle B--Energy Savings Performance Contracting
Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and
verifying savings.
Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy
efficiency contracts.
Sec. 518. Study of energy and cost savings in nonbuilding applications.
Subtitle C--Energy Efficiency in Federal Agencies
Sec. 521. Installation of photovoltaic system at Department of Energy
headquarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.
Subtitle D--Energy Efficiency of Public Institutions
Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.
Subtitle E--Energy Efficiency and Conservation Block Grants
Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 548. Funding.
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A--Solar Energy
Sec. 601. Short title.
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants.
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.
Subtitle B--Geothermal Energy
Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and
recovery and production of geopressured gas resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621. Reports.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
Sec. 631. Short title.
Sec. 632. Definition.
Sec. 633. Marine and hydrokinetic renewable energy research and
development.
Sec. 634. National Marine Renewable Energy Research, Development, and
Demonstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.
Subtitle D--Energy Storage for Transportation and Electric Power
Sec. 641. Energy storage competitiveness.
Subtitle E--Miscellaneous Provisions
Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION
Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration
Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research, development, and
demonstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework
Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous
oxide emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public land.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A--Management Improvements
Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources
to generate energy.
Sec. 807. Geothermal assessment, exploration information, and priority
activities.
Subtitle B--Prohibitions on Market Manipulation and False Information
Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 814. Penalties.
Sec. 815. Effect on other laws.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
Sec. 901. Definitions.
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China,
and other countries.
Sec. 913. United States trade missions to encourage private sector trade
and investment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy
technologies and investment in global energy markets.
Sec. 917. United States-Israel energy cooperation.
Subtitle B--International Clean Energy Foundation
Sec. 921. Definitions.
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.
Subtitle C--Miscellaneous Provisions
Sec. 931. Energy diplomacy and security within the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage
contingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.
TITLE X--GREEN JOBS
Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training
program.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A--Department of Transportation
Sec. 1101. Office of Climate Change and Environment.
Subtitle B--Railroads
Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.
Subtitle C--Marine Transportation
Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction fund.
Sec. 1123. Short sea transportation report.
Subtitle D--Highways
Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
Sec. 1133. Sense of Congress regarding use of complete streets design
techniques.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS
Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy
efficient technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy
efficient technologies and purchases.
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.
TITLE XIII--SMART GRID
Sec. 1301. Statement of policy on modernization of electricity grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task force.
Sec. 1304. Smart grid technology research, development, and
demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development
of combined heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.
TITLE XIV--RENEWABLE ELECTRICITY STANDARD
Sec. 1401. Renewable electricity standard.
TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007
Sec. 1500. Short title; amendment of 1986 Code; table of contents.
Subtitle A--Clean Renewable Energy Production Incentives
PART I--Provisions Relating to Renewable Energy
Sec. 1501. Extension and modification of renewable energy credit.
Sec. 1502. Production credit for electricity produced from marine
renewables.
Sec. 1503. Extension and modification of energy credit.
Sec. 1504. Extension and modification of credit for residential energy
efficient property.
Sec. 1505. Extension and modification of special rule to implement FERC
and State electric restructuring policy.
Sec. 1506. New clean renewable energy bonds.
PART II--Provisions Relating to Carbon Mitigation and Coal
Sec. 1507. Expansion and modification of advanced coal project
investment credit.
Sec. 1508. Expansion and modification of coal gasification investment
credit.
Sec. 1509. Seven-year applicable recovery period for depreciation of
qualified carbon dioxide pipeline property.
Sec. 1510. Special rules for refund of the coal excise tax to certain
coal producers and exporters.
Sec. 1511. Extension of temporary increase in coal excise tax.
Sec. 1512. Carbon audit of the tax code.
Subtitle B--Transportation and Domestic Fuel Security
PART I--Biofuels
Sec. 1521. Credit for production of cellulosic biomass alcohol.
Sec. 1522. Expansion of special allowance to cellulosic biomass alcohol
fuel plant property.
Sec. 1523. Modification of alcohol credit.
Sec. 1524. Extension and modification of credits for biodiesel and
renewable diesel.
Sec. 1525. Clarification of eligibility for renewable diesel credit.
Sec. 1526. Provisions clarifying treatment of fuels with no nexus to the
United States.
Sec. 1527. Comprehensive study of biofuels.
PART II--Advanced Technology Motor Vehicles
Sec. 1528. Credit for new qualified plug-in electric drive motor
vehicles.
Sec. 1529. Exclusion from heavy truck tax for idling reduction units and
advanced insulation.
PART III--Other Transportation Provisions
Sec. 1530. Restructuring of New York Liberty Zone tax credits.
Sec. 1531. Extension of transportation fringe benefit to bicycle
commuters.
Subtitle C--Energy Conservation and Efficiency
PART I--Conservation Tax Credit Bonds
Sec. 1541. Qualified energy conservation bonds.
Sec. 1542. Qualified forestry conservation bonds.
PART II--Efficiency
Sec. 1543. Extension and modification of energy efficient existing homes
credit.
Sec. 1544. Extension and modification of energy efficient commercial
buildings deduction.
Sec. 1545. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 1546. Seven-year applicable recovery period for depreciation of
qualified energy management devices.
Subtitle D--Other Provisions
PART I--Forestry Provisions
Sec. 1551. Deduction for qualified timber gain.
Sec. 1552. Excise tax not applicable to section 1203 deduction of real
estate investment trusts.
Sec. 1553. Timber REIT modernization.
Sec. 1554. Mineral royalty income qualifying income for timber REITs.
Sec. 1555. Modification of taxable REIT subsidiary asset test for timber
REITs.
Sec. 1556. Safe harbor for timber property.
PART II--Exxon Valdez
Sec. 1557. Income averaging for amounts received in connection with the
Exxon Valdez litigation.
Subtitle E--Revenue Provisions
Sec. 1561. Limitation of deduction for income attributable to domestic
production of oil, gas, or a primary products thereof .
Sec. 1562. Elimination of the different treatment of foreign oil and gas
extraction income and foreign oil related income for purposes
of the foreign tax credit.
Sec. 1563. 7-year amortization of geological and geophysical
expenditures for certain major integrated oil companies.
Sec. 1564. Broker reporting of customer's basis in securities
transactions.
Sec. 1565. Extension of additional 0.2 percent FUTA surtax.
Sec. 1566. Termination of treatment of natural gas distribution lines as
15-year property.
Sec. 1567. Time for payment of corporate estimated taxes.
Sec. 1568. Modification of penalty for failure to file partnership
returns.
Subtitle F--Secure Rural Schools
Sec. 1571. Secure rural schools and community self-determination
program.
SEC. 2. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
(3) Secretary.--The term ``Secretary'' means the
Secretary of Energy.
SEC. 3. RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or an
amendment made by this Act, nothing in this Act or an amendment
made by this Act supersedes, limits the authority provided or
responsibility conferred by, or authorizes any violation of any
provision of law (including a regulation), including any energy
or environmental law or regulation.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy Standards
SEC. 101. SHORT TITLE.
This subtitle may be cited as the ``Ten-in-Ten Fuel Economy
Act''.
SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN
OTHER VEHICLES.
(a) Increased Standards.--Section 32902 of title 49, United
States Code, is amended--
(1) in subsection (a)--
(A) by striking ``Non-Passenger
Automobiles.--'' and inserting ``Prescription
of Standards by Regulation.--'';
(B) by striking ``(except passenger
automobiles)'' in subsection (a); and
(C) by striking the last sentence;
(2) by striking subsection (b) and inserting the
following:
``(b) Standards for Automobiles and Certain Other Vehicles.--
``(1) In general.--The Secretary of Transportation,
after consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
shall prescribe separate average fuel economy standards
for--
``(A) passenger automobiles manufactured by
manufacturers in each model year beginning with
model year 2011 in accordance with this
subsection;
``(B) non-passenger automobiles manufactured
by manufacturers in each model year beginning
with model year 2011 in accordance with this
subsection;
``(C) work trucks in accordance with
subsection (k); and
``(D) commercial medium-duty or heavy-duty
on-highway vehicles in accordance with
subsection (l).
``(2) Fuel economy standards for automobiles.--
``(A) Automobile fuel economy average for
model years 2011 through 2020.--The Secretary
shall prescribe a separate average fuel economy
standard for passenger automobiles and a
separate average fuel economy standard for non-
passenger automobiles for each model year
beginning with model year 2011 to achieve a
combined fuel economy average for model year
2020 of at least 35 miles per gallon for the
total fleet of passenger and non-passenger
automobiles manufactured for sale in the United
States for that model year.
``(B) Automobile fuel economy average for
model years 2021 through 2030.--For model years
2021 through 2030, the average fuel economy
required to be attained by each fleet of
passenger and non-passenger automobiles
manufactured for sale in the United States
shall be the maximum feasible average fuel
economy standard for each fleet for that model
year.
``(C) Progress toward standard required.--In
prescribing average fuel economy standards
under subparagraph (A), the Secretary shall
prescribe annual fuel economy standard
increases that increase the applicable average
fuel economy standard ratably beginning with
model year 2011 and ending with model year
2020.
``(3) Authority of the secretary.--The Secretary
shall--
``(A) prescribe by regulation separate
average fuel economy standards for passenger
and non-passenger automobiles based on 1 or
more vehicle attributes related to fuel economy
and express each standard in the form of a
mathematical function; and
``(B) issue regulations under this title
prescribing average fuel economy standards for
at least 1, but not more than 5, model years.
``(4) Minimum standard.--In addition to any standard
prescribed pursuant to paragraph (3), each manufacturer
shall also meet the minimum standard for domestically
manufactured passenger automobiles, which shall be the
greater of--
``(A) 27.5 miles per gallon; or
``(B) 92 percent of the average fuel economy
projected by the Secretary for the combined
domestic and non-domestic passenger automobile
fleets manufactured for sale in the United
States by all manufacturers in the model year,
which projection shall be published in the
Federal Register when the standard for that
model year is promulgated in accordance with
this section.''; and
(3) in subsection (c)--
(A) by striking ``(1) Subject to paragraph
(2) of this subsection, the'' and inserting
``The''; and
(B) by striking paragraph (2).
(b) Fuel Economy Standard for Work Trucks.--Section 32902 of
title 49, United States Code, is amended by adding at the end
the following:
``(k) Work Trucks.--
``(1) Study.--Not later than 1 year after the date of
the enactment of the Ten-in-Ten Fuel Economy Act, the
Secretary of Transportation, in consultation with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency, shall examine the fuel
efficiency of work trucks and determine--
``(A) the appropriate test procedures and
methodologies for measuring the fuel efficiency
of work trucks;
``(B) the appropriate metric for measuring
and expressing work truck fuel efficiency
performance, taking into consideration, among
other things, the work performed by work trucks
and types of operations in which they are used;
``(C) the range of factors, including,
without limitation, design, functionality, use,
duty cycle, infrastructure, and total overall
energy consumption and operating costs that
affect work truck fuel efficiency; and
``(D) such other factors and conditions that
could have an impact on a program to improve
work truck fuel efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1),
the Secretary, in consultation with the Secretary of
Energy and the Administrator of the Environmental
Protection Agency, by regulation, shall determine in a
rulemaking proceeding how to implement a work truck
fuel efficiency improvement program designed to achieve
the maximum feasible improvement, and shall adopt and
implement appropriate test methods, measurement
metrics, fuel economy standards, and compliance and
enforcement protocols that are appropriate, cost-
effective, and technologically feasible for work
trucks. Any fuel economy standard prescribed under this
section shall be prescribed at least 18 months before
the model year to which it applies. The Secretary may
prescribe separate standards for different classes of
vehicles under this subsection.''.
(c) Fuel Economy Standard for Commercial Medium-Duty and
Heavy-Duty On-Highway Vehicles.--Section 32902 of title 49,
United States Code, as amended by subsection (b), is further
amended by adding at the end the following:
``(l) Commercial Medium- and Heavy-Duty On-Highway
Vehicles.--
``(1) Study.--Not later than 1 year after the
National Academy of Sciences publishes the results of
its study under section 108 of the Ten-in-Ten Fuel
Economy Act, the Secretary of Transportation, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
shall examine the fuel efficiency of commercial medium-
and heavy-duty on-highway vehicles and determine--
``(A) the appropriate test procedures and
methodologies for measuring the fuel efficiency
of such vehicles;
``(B) the appropriate metric for measuring
and expressing commercial medium- and heavy-
duty on-highway vehicle fuel efficiency
performance, taking into consideration, among
other things, the work performed by such on-
highway vehicles and types of operations in
which they are used;
``(C) the range of factors, including,
without limitation, design, functionality, use,
duty cycle, infrastructure, and total overall
energy consumption and operating costs that
affect commercial medium- and heavy-duty on-
highway vehicle fuel efficiency; and
``(D) such other factors and conditions that
could have an impact on a program to improve
commercial medium- and heavy-duty on-highway
vehicle fuel efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1),
the Secretary, in consultation with the Secretary of
Energy and the Administrator of the Environmental
Protection Agency, by regulation, shall determine in a
rulemaking proceeding how to implement a commercial
medium- and heavy-duty on-highway vehicle fuel
efficiency improvement program designed to achieve the
maximum feasible improvement, and shall adopt and
implement appropriate test methods, measurement
metrics, fuel economy standards, and compliance and
enforcement protocols that are appropriate, cost-
effective, and technologically feasible for commercial
medium- and heavy-duty on-highway vehicles. Any fuel
economy standard prescribed under this section shall be
prescribed at least 18 months before the model year to
which it applies. The Secretary may prescribe separate
standards for different classes of vehicles under this
subsection.
``(3) Lead-time; regulatory stability.--The first
commercial medium- and heavy-duty on-highway vehicle
fuel efficiency regulatory program adopted pursuant to
this subsection shall provide not less than--
``(A) 4 full model years of regulatory lead-
time; and
``(B) 3 full model years of regulatory
stability.''.
SEC. 103. DEFINITIONS.
(a) In General.--Section 32901(a) of title 49, United States
Code, is amended--
(1) by striking paragraph (3) and inserting the
following:
``(3) except as provided in section 32908 of this
title, `automobile' means a 4-wheeled vehicle that is
propelled by fuel, or by alternative fuel, manufactured
primarily for use on public streets, roads, and
highways and rated at less than 10,000 pounds gross
vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured in different
stages by 2 or more manufacturers, if no
intermediate or final-stage manufacturer of
that vehicle manufactures more than 10,000
multi-stage vehicles per year; or
``(C) a work truck.'';
(2) by redesignating paragraphs (7) through (16) as
paragraphs (8) through (17), respectively;
(3) by inserting after paragraph (6) the following:
``(7) `commercial medium- and heavy-duty on-highway
vehicle' means an on-highway vehicle with a gross
vehicle weight rating of 10,000 pounds or more.'';
(4) in paragraph (9)(A), as redesignated, by
inserting ``or a mixture of biodiesel and diesel fuel
meeting the standard established by the American
Society for Testing and Materials or under section
211(u) of the Clean Air Act (42 U.S.C. 7545(u)) for
fuel containing 20 percent biodiesel (commonly known as
`B20')'' after ``alternative fuel'';
(5) by redesignating paragraph (17), as redesignated,
as paragraph (18);
(6) by inserting after paragraph (16), as
redesignated, the following:
``(17) `non-passenger automobile' means an automobile
that is not a passenger automobile or a work truck.'';
and
(7) by adding at the end the following:
``(19) `work truck' means a vehicle that--
``(A) is rated at between 8,500 and 10,000
pounds gross vehicle weight; and
``(B) is not a medium-duty passenger vehicle
(as defined in section 86.1803-01 of title 40,
Code of Federal Regulations, as in effect on
the date of the enactment of the Ten-in-Ten
Fuel Economy Act).''.
SEC. 104. CREDIT TRADING PROGRAM.
(a) In General.--Section 32903 of title 49, United States
Code, is amended--
(1) by striking ``section 32902(b)-(d) of this
title'' each place it appears and inserting
``subsections (a) through (d) of section 32902'';
(2) in subsection (a)(2)--
(A) by striking ``3 consecutive model years''
and inserting ``5 consecutive model years'';
(B) by striking ``clause (1) of this
subsection,'' and inserting ``paragraph (1)'';
(3) by redesignating subsection (f) as subsection
(h); and
(4) by inserting after subsection (e) the following:
``(f) Credit Trading Among Manufacturers.--
``(1) In general.--The Secretary of Transportation
may establish, by regulation, a fuel economy credit
trading program to allow manufacturers whose
automobiles exceed the average fuel economy standards
prescribed under section 32902 to earn credits to be
sold to manufacturers whose automobiles fail to achieve
the prescribed standards such that the total oil
savings associated with manufacturers that exceed the
prescribed standards are preserved when trading credits
to manufacturers that fail to achieve the prescribed
standards.
``(2) Limitation.--The trading of credits by a
manufacturer to the category of passenger automobiles
manufactured domestically is limited to the extent that
the fuel economy level of such automobiles shall comply
with the requirements of section 32902(b)(4), without
regard to any trading of credits from other
manufacturers.
``(g) Credit Transferring Within a Manufacturer's Fleet.--
``(1) In general.--The Secretary of Transportation
shall establish by regulation a fuel economy credit
transferring program to allow any manufacturer whose
automobiles exceed any of the average fuel economy
standards prescribed under section 32902 to transfer
the credits earned under this section and to apply such
credits within that manufacturer's fleet to a
compliance category of automobiles that fails to
achieve the prescribed standards.
``(2) Years for which used.--Credits transferred
under this subsection are available to be used in the
same model years that the manufacturer could have
applied such credits under subsections (a), (b), (d),
and (e), as well as for the model year in which the
manufacturer earned such credits.
``(3) Maximum increase.--The maximum increase in any
compliance category attributable to transferred credits
is--
``(A) for model years 2011 through 2013, 1.0
mile per gallon;
``(B) for model years 2014 through 2017, 1.5
miles per gallon; and
``(C) for model year 2018 and subsequent
model years, 2.0 miles per gallon.
``(4) Limitation.--The transfer of credits by a
manufacturer to the category of passenger automobiles
manufactured domestically is limited to the extent that
the fuel economy level of such automobiles shall comply
with the requirements under section 32904(b)(4),
without regard to any transfer of credits from other
categories of automobiles described in paragraph
(6)(B).
``(5) Years available.--A credit may be transferred
under this subsection only if it is earned after model
year 2010.
``(6) Definitions.--In this subsection:
``(A) Fleet.--The term `fleet' means all
automobiles manufactured by a manufacturer in a
particular model year.
``(B) Compliance category of automobiles.--
The term `compliance category of automobiles'
means any of the following 3 categories of
automobiles for which compliance is separately
calculated under this chapter:
``(i) Passenger automobiles
manufactured domestically.
``(ii) Passenger automobiles not
manufactured domestically.
``(iii) Non-passenger automobiles.''.
(b) Conforming Amendments.--
(1) Limitations.--Section 32902(h) of title 49,
United States Code, is amended--
(A) in paragraph (1), by striking ``and'' at
the end;
(B) in paragraph (2), by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) may not consider, when prescribing a fuel
economy standard, the trading, transferring, or
availability of credits under section 32903.''.
(2) Separate calculations.--Section 32904(b)(1)(B) is
amended by striking ``chapter.'' and inserting
``chapter, except for the purposes of section 32903.''.
SEC. 105. CONSUMER INFORMATION.
Section 32908 of title 49, United States Code, is amended by
adding at the end the following:
``(g) Consumer Information.--
``(1) Program.--The Secretary of Transportation, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
shall develop and implement by rule a program to
require manufacturers--
``(A) to label new automobiles sold in the
United States with--
``(i) information reflecting an
automobile's performance on the basis
of criteria that the Administrator
shall develop, not later than 18 months
after the date of the enactment of the
Ten-in-Ten Fuel Economy Act, to reflect
fuel economy and greenhouse gas and
other emissions over the useful life of
the automobile;
``(ii) a rating system that would
make it easy for consumers to compare
the fuel economy and greenhouse gas and
other emissions of automobiles at the
point of purchase, including a
designation of automobiles--
``(I) with the lowest
greenhouse gas emissions over
the useful life of the
vehicles; and
``(II) the highest fuel
economy; and
``(iii) a permanent and prominent
display that an automobile is capable
of operating on an alternative fuel;
and
``(B) to include in the owner's manual for
vehicles capable of operating on alternative
fuels information that describes that
capability and the benefits of using
alternative fuels, including the renewable
nature and environmental benefits of using
alternative fuels.
``(2) Consumer education.--
``(A) In general.--The Secretary of
Transportation, in consultation with the
Secretary of Energy and the Administrator of
the Environmental Protection Agency, shall
develop and implement by rule a consumer
education program to improve consumer
understanding of automobile performance
described in paragraph (1)(A)(i) and to inform
consumers of the benefits of using alternative
fuel in automobiles and the location of
stations with alternative fuel capacity.
``(B) Fuel savings education campaign.--The
Secretary of Transportation shall establish a
consumer education campaign on the fuel savings
that would be recognized from the purchase of
vehicles equipped with thermal management
technologies, including energy efficient air
conditioning systems and glass.
``(3) Fuel tank labels for alternative fuel
automobiles.--The Secretary of Transportation shall by
rule require a label to be attached to the fuel
compartment of vehicles capable of operating on
alternative fuels, with the form of alternative fuel
stated on the label. A label attached in compliance
with the requirements of section 32905(h) is deemed to
meet the requirements of this paragraph.
``(4) Rulemaking deadline.--The Secretary of
Transportation shall issue a final rule under this
subsection not later than 42 months after the date of
the enactment of the Ten-in-Ten Fuel Economy Act.''.
SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.
Nothing in this subtitle, or the amendments made by this
subtitle, shall be construed to affect the application of
section 32902 of title 49, United States Code, to passenger
automobiles or non-passenger automobiles manufactured before
model year 2011.
SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to
develop a report evaluating vehicle fuel economy standards,
including--
(1) an assessment of automotive technologies and
costs to reflect developments since the Academy's 2002
report evaluating the corporate average fuel economy
standards was conducted;
(2) an analysis of existing and potential
technologies that may be used practically to improve
automobile and medium-duty and heavy-duty truck fuel
economy;
(3) an analysis of how such technologies may be
practically integrated into the automotive and medium-
duty and heavy-duty truck manufacturing process; and
(4) an assessment of how such technologies may be
used to meet the new fuel economy standards under
chapter 329 of title 49, United States Code, as amended
by this subtitle.
(b) Report.--The Academy shall submit the report to the
Secretary, the Committee on Commerce, Science, and
Transportation of the Senate, and the Committee on Energy and
Commerce of the House of Representatives, with its findings and
recommendations not later than 5 years after the date on which
the Secretary executes the agreement with the Academy.
(c) Quinquennial Updates.--After submitting the initial
report, the Academy shall update the report at 5 year intervals
thereafter through 2025.
SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-
DUTY TRUCK FUEL ECONOMY.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to
develop a report evaluating medium-duty and heavy-duty truck
fuel economy standards, including--
(1) an assessment of technologies and costs to
evaluate fuel economy for medium-duty and heavy-duty
trucks;
(2) an analysis of existing and potential
technologies that may be used practically to improve
medium-duty and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be
practically integrated into the medium-duty and heavy-
duty truck manufacturing process;
(4) an assessment of how such technologies may be
used to meet fuel economy standards to be prescribed
under section 32902(l) of title 49, United States Code,
as amended by this subtitle; and
(5) associated costs and other impacts on the
operation of medium-duty and heavy-duty trucks,
including congestion.
(b) Report.--The Academy shall submit the report to the
Secretary, the Committee on Commerce, Science, and
Transportation of the Senate, and the Committee on Energy and
Commerce of the House of Representatives, with its findings and
recommendations not later than 1 year after the date on which
the Secretary executes the agreement with the Academy.
SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.
(a) In General.--Section 32906 of title 49, United States
Code, is amended to read as follows:
``Sec. 32906. Maximum fuel economy increase for alternative fuel
automobiles
``(a) In General.--For each of model years 1993 through 2019
for each category of automobile (except an electric
automobile), the maximum increase in average fuel economy for a
manufacturer attributable to dual fueled automobiles is--
``(1) 1.2 miles a gallon for each of model years 1993
through 2014;
``(2) 1.0 miles per gallon for model year 2015;
``(3) 0.8 miles per gallon for model year 2016;
``(4) 0.6 miles per gallon for model year 2017;
``(5) 0.4 miles per gallon for model year 2018;
``(6) 0.2 miles per gallon for model year 2019; and
``(7) 0 miles per gallon for model years after 2019.
``(b) Calculation.--In applying subsection (a), the
Administrator of the Environmental Protection Agency shall
determine the increase in a manufacturer's average fuel economy
attributable to dual fueled automobiles by subtracting from the
manufacturer's average fuel economy calculated under section
32905(e) the number equal to what the manufacturer's average
fuel economy would be if it were calculated by the formula
under section 32904(a)(1) by including as the denominator for
each model of dual fueled automobiles the fuel economy when the
automobiles are operated on gasoline or diesel fuel.''.
(b) Conforming Amendments.--Section 32905 of title 49, United
States Code, is amended--
(1) in subsection (b), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(2) in subsection (d), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(3) by striking subsections (f) and (g); and
(4) by redesignating subsection (h) as subsection
(f).
(c) B20 Biodiesel Flexible Fuel Credit.--Section 32905(b)(2)
of title 49, United States Code, is amended to read as follows:
``(2) .5 divided by the fuel economy--
``(A) measured under subsection (a) when
operating the model on alternative fuel; or
``(B) measured based on the fuel content of
B20 when operating the model on B20, which is
deemed to contain 0.15 gallon of fuel.''.
SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING
PROCEDURES.
Beginning in December, 2009, and not less often than every 5
years thereafter, the Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Transportation, shall--
(1) reevaluate the fuel economy labeling procedures
described in the final rule published in the Federal
Register on December 27, 2006 (71 Fed. Reg. 77,872; 40
C.F.R. parts 86 and 600) to determine whether changes
in the factors used to establish the labeling
procedures warrant a revision of that process; and
(2) submit a report to the Committee on Commerce,
Science, and Transportation of the Senate and the
Committee on Energy and Commerce of the House of
Representatives that describes the results of the
reevaluation process.
SEC. 111. CONSUMER TIRE INFORMATION.
(a) In General.--Chapter 323 of title 49, United States Code,
is amended by inserting after section 32304 the following:
``Sec. 32304A. Consumer tire information
``(a) Rulemaking.--
``(1) In general.--Not later than 24 months after the
date of enactment of the Ten-in-Ten Fuel Economy Act,
the Secretary of Transportation shall, after notice and
opportunity for comment, promulgate rules establishing
a national tire fuel efficiency consumer information
program for replacement tires designed for use on motor
vehicles to educate consumers about the effect of tires
on automobile fuel efficiency, safety, and durability.
``(2) Items included in rule.--The rulemaking shall
include--
``(A) a national tire fuel efficiency rating
system for motor vehicle replacement tires to
assist consumers in making more educated tire
purchasing decisions;
``(B) requirements for providing information
to consumers, including information at the
point of sale and other potential information
dissemination methods, including the Internet;
``(C) specifications for test methods for
manufacturers to use in assessing and rating
tires to avoid variation among test equipment
and manufacturers; and
``(D) a national tire maintenance consumer
education program including, information on
tire inflation pressure, alignment, rotation,
and tread wear to maximize fuel efficiency,
safety, and durability of replacement tires.
``(3) Applicability.--This section shall apply only
to replacement tires covered under section 575.104(c)
of title 49, Code of Federal Regulations, in effect on
the date of the enactment of the Ten-in-Ten Fuel
Economy Act.
``(b) Consultation.--The Secretary shall consult with the
Secretary of Energy and the Administrator of the Environmental
Protection Agency on the means of conveying tire fuel
efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct
periodic assessments of the rules promulgated under this
section to determine the utility of such rules to consumers,
the level of cooperation by industry, and the contribution to
national goals pertaining to energy consumption. The Secretary
shall transmit periodic reports detailing the findings of such
assessments to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Energy and Commerce.
``(d) Tire Marking.--The Secretary shall not require
permanent labeling of any kind on a tire for the purpose of
tire fuel efficiency information.
``(e) Application With State and Local Laws and
Regulations.--Nothing in this section prohibits a State or
political subdivision thereof from enforcing a law or
regulation on tire fuel efficiency consumer information that
was in effect on January 1, 2006. After a requirement
promulgated under this section is in effect, a State or
political subdivision thereof may adopt or enforce a law or
regulation on tire fuel efficiency consumer information enacted
or promulgated after January 1, 2006, if the requirements of
that law or regulation are identical to the requirement
promulgated under this section. Nothing in this section shall
be construed to preempt a State or political subdivision
thereof from regulating the fuel efficiency of tires (including
establishing testing methods for determining compliance with
such standards) not otherwise preempted under this chapter.''.
(b) Enforcement.--Section 32308 of title 49, United States
Code, is amended--
(1) by redesignating subsections (c) and (d) as
subsections (d)and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Section 32304A.--Any person who fails to comply with
the national tire fuel efficiency information program under
section 32304A is liable to the United States Government for a
civil penalty of not more than $50,000 for each violation.''.
(c) Conforming Amendment.--The chapter analysis for chapter
323 of title 49, United States Code, is amended by inserting
after the item relating to section 32304 the following:
``32304A. Consumer tire information''.
SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended by
adding at the end the following:
``(e) Use of Civil Penalties.--For fiscal year 2008 and each
fiscal year thereafter, from the total amount deposited in the
general fund of the Treasury during the preceding fiscal year
from fines, penalties, and other funds obtained through
enforcement actions conducted pursuant to this section
(including funds obtained under consent decrees), the Secretary
of the Treasury, subject to the availability of appropriations,
shall--
``(1) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter,
which shall be used by the Secretary to support
rulemaking under this chapter; and
``(2) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter,
which shall be used by the Secretary to carry out a
program to make grants to manufacturers for retooling,
reequipping, or expanding existing manufacturing
facilities in the United States to produce advanced
technology vehicles and components.''.
SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.
(a) Repeal.--Paragraphs (6), (7), and (8) of section 32904(b)
of title 49, United States Code, are repealed.
(b) Effect of Repeal on Existing Exemptions.--Any exemption
granted under section 32904(b)(6) of title 49, United States
Code, prior to the date of the enactment of this Act shall
remain in effect subject to its terms through model year 2013.
(c) Accrual and Use of Credits.--Any manufacturer holding an
exemption under section 32904(b)(6) of title 49, United States
Code, prior to the date of the enactment of this Act may accrue
and use credits under sections 32903 and 32905 of such title
begining with model year 2011.
Subtitle B--Improved Vehicle Technology
SEC. 131. TRANSPORTATION ELECTRIFICATION.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means
the Administrator of the Environmental Protection
Agency.
(2) Battery.--The term ``battery'' means an
electrochemical energy storage system powered directly
by electrical current.
(3) Electric transportation technology.--The term
``electric transportation technology'' means--
(A) technology used in vehicles that use an
electric motor for all or part of the motive
power of the vehicles, including battery
electric, hybrid electric, plug-in hybrid
electric, fuel cell, and plug-in fuel cell
vehicles, or rail transportation; or
(B) equipment relating to transportation or
mobile sources of air pollution that use an
electric motor to replace an internal
combustion engine for all or part of the work
of the equipment, including--
(i) corded electric equipment linked
to transportation or mobile sources of
air pollution; and
(ii) electrification technologies at
airports, ports, truck stops, and
material-handling facilities.
(4) Nonroad vehicle.--The term ``nonroad vehicle''
means a vehicle--
(A) powered--
(i) by a nonroad engine, as that term
is defined in section 216 of the Clean
Air Act (42 U.S.C. 7550); or
(ii) fully or partially by an
electric motor powered by a fuel cell,
a battery, or an off-board source of
electricity; and
(B) that is not a motor vehicle or a vehicle
used solely for competition.
(5) Plug-in electric drive vehicle.--The term ``plug-
in electric drive vehicle'' means a vehicle that--
(A) draws motive power from a battery with a
capacity of at least 4 kilowatt-hours;
(B) can be recharged from an external source
of electricity for motive power; and
(C) is a light-, medium-, or heavy-duty motor
vehicle or nonroad vehicle (as those terms are
defined in section 216 of the Clean Air Act (42
U.S.C. 7550)).
(6) Qualified electric transportation project.--The
term ``qualified electric transportation project''
means an electric transportation technology project
that would significantly reduce emissions of criteria
pollutants, greenhouse gas emissions, and petroleum,
including--
(A) shipside or shoreside electrification for
vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
(D) battery powered auxiliary power units for
trucks;
(E) electric airport ground support
equipment;
(F) electric material and cargo handling
equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to
supply electricity to the project; and
(I) any ancillary infrastructure, including
panel upgrades, battery chargers, in-situ
transformers, and trenching.
(b) Plug-in Electric Drive Vehicle Program.--
(1) Establishment.--The Secretary shall establish a
competitive program to provide grants on a cost-shared
basis to State governments, local governments,
metropolitan transportation authorities, air pollution
control districts, private or nonprofit entities, or
combinations of those governments, authorities,
districts, and entities, to carry out 1 or more
projects to encourage the use of plug-in electric drive
vehicles or other emerging electric vehicle
technologies, as determined by the Secretary.
(2) Administration.--The Secretary shall, in
consultation with the Secretary of Transportation and
the Administrator, establish requirements for
applications for grants under this section, including
reporting of data to be summarized for dissemination to
grantees and the public, including safety, vehicle, and
component performance, and vehicle and component life
cycle costs.
(3) Priority.--In making awards under this
subsection, the Secretary shall--
(A) give priority consideration to
applications that--
(i) encourage early widespread use of
vehicles described in paragraph (1);
and
(ii) are likely to make a significant
contribution to the advancement of the
production of the vehicles in the
United States; and
(B) ensure, to the maximum extent
practicable, that the program established under
this subsection includes a variety of
applications, manufacturers, and end-uses.
(4) Reporting.--The Secretary shall require a grant
recipient under this subsection to submit to the
Secretary, on an annual basis, data relating to safety,
vehicle performance, life cycle costs, and emissions of
vehicles demonstrated under the grant, including
emissions of greenhouse gases.
(5) Cost sharing.--Section 988 of the Energy Policy
Act of 2005 (42 U.S.C. 16352) shall apply to a grant
made under this subsection.
(6) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $90,000,000 for each of fiscal years 2008
through 2012, of which not less than \1/3\ of the total
amount appropriated shall be available each fiscal year
to make grants to local and municipal governments.
(c) Near-Term Transportation Sector Electrification
Program.--
(1) In general.--Not later than 1 year after the date
of enactment of this Act, the Secretary, in
consultation with the Secretary of Transportation and
the Administrator, shall establish a program to provide
grants for the conduct of qualified electric
transportation projects.
(2) Priority.--In providing grants under this
subsection, the Secretary shall give priority to large-
scale projects and large-scale aggregators of projects.
(3) Cost sharing.--Section 988 of the Energy Policy
Act of 2005 (42 U.S.C. 16352) shall apply to a grant
made under this subsection.
(4) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $95,000,000 for each of fiscal years 2008
through 2013.
(d) Education Program.--
(1) In general.--The Secretary shall develop a
nationwide electric drive transportation technology
education program under which the Secretary shall
provide--
(A) teaching materials to secondary schools
and high schools; and
(B) assistance for programs relating to
electric drive system and component engineering
to institutions of higher education.
(2) Electric vehicle competition.--The program
established under paragraph (1) shall include a plug-in
hybrid electric vehicle competition for institutions of
higher education, which shall be known as the ``Dr.
Andrew Frank Plug-In Electric Vehicle Competition''.
(3) Engineers.--In carrying out the program
established under paragraph (1), the Secretary shall
provide financial assistance to institutions of higher
education to create new, or support existing, degree
programs to ensure the availability of trained
electrical and mechanical engineers with the skills
necessary for the advancement of--
(A) plug-in electric drive vehicles; and
(B) other forms of electric drive
transportation technology vehicles.
(4) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be
necessary to carry out this subsection.
SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
Section 712 of the Energy Policy Act of 2005 (42 U.S.C.
16062) is amended to read as follows:
``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
``(a) Program.--
``(1) In general.--The Secretary shall establish a
program to encourage domestic production and sales of
efficient hybrid and advanced diesel vehicles and
components of those vehicles.
``(2) Inclusions.--The program shall include grants
to automobile manufacturers and suppliers and hybrid
component manufacturers to encourage domestic
production of efficient hybrid, plug-in electric
hybrid, plug-in electric drive, and advanced diesel
vehicles.
``(3) Priority.--Priority shall be given to the
refurbishment or retooling of manufacturing facilities
that have recently ceased operation or will cease
operation in the near future.
``(b) Coordination With State and Local Programs.--The
Secretary may coordinate implementation of this section with
State and local programs designed to accomplish similar goals,
including the retention and retraining of skilled workers from
the manufacturing facilities, including by establishing
matching grant arrangements.
``(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as may be
necessary to carry out this section.''.
SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C.
13258) is amended--
(1) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the following:
``(a) Definitions.--In this section:
``(1) Fuel cell electric vehicle.--The term `fuel
cell electric vehicle' means an on-road or nonroad
vehicle that uses a fuel cell (as defined in section
803 of the Spark M. Matsunaga Hydrogen Act of 2005 (42
U.S.C. 16152)).
``(2) Hybrid electric vehicle.--The term `hybrid
electric vehicle' means a new qualified hybrid motor
vehicle (as defined in section 30B(d)(3) of the
Internal Revenue Code of 1986).
``(3) Medium- or heavy-duty electric vehicle.--The
term `medium- or heavy-duty electric vehicle' means an
electric, hybrid electric, or plug-in hybrid electric
vehicle with a gross vehicle weight of more than 8,501
pounds.
``(4) Neighborhood electric vehicle.--The term
`neighborhood electric vehicle' means a 4-wheeled on-
road or nonroad vehicle that--
``(A) has a top attainable speed in 1 mile of
more than 20 mph and not more than 25 mph on a
paved level surface; and
``(B) is propelled by an electric motor and
on-board, rechargeable energy storage system
that is rechargeable using an off-board source
of electricity.
``(5) Plug-in electric drive vehicle.--The term
`plug-in electric drive vehicle' means a vehicle that--
``(A) draws motive power from a battery with
a capacity of at least 4 kilowatt-hours;
``(B) can be recharged from an external
source of electricity for motive power; and
``(C) is a light-, medium-, or heavy duty
motor vehicle or nonroad vehicle (as those
terms are defined in section 216 of the Clean
Air Act (42 U.S.C. 7550).'';
(3) in subsection (b) (as redesignated by paragraph
(1))--
(A) by striking ``The Secretary'' and
inserting the following:
``(1) Allocation.--The Secretary''; and
(B) by adding at the end the following:
``(2) Electric vehicles.--Not later than January 31,
2009, the Secretary shall--
``(A) allocate credit in an amount to be
determined by the Secretary for--
``(i) acquisition of--
``(I) a hybrid electric
vehicle;
``(II) a plug-in electric
drive vehicle;
``(III) a fuel cell electric
vehicle;
``(IV) a neighborhood
electric vehicle; or
``(V) a medium- or heavy-duty
electric vehicle; and
``(ii) investment in qualified
alternative fuel infrastructure or
nonroad equipment, as determined by the
Secretary; and
``(B) allocate more than 1, but not to exceed
5, credits for investment in an emerging
technology relating to any vehicle described in
subparagraph (A) to encourage--
``(i) a reduction in petroleum
demand;
``(ii) technological advancement; and
``(iii) a reduction in vehicle
emissions.'';
(4) in subsection (c) (as redesignated by paragraph
(1)), by striking ``subsection (a)'' and inserting
``subsection (b)''; and
(5) by adding at the end the following:
``(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2008 through 2013.''.
SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS
MANUFACTURERS.
(a) In General.--Section 712(a)(2) of the Energy Policy Act
of 2005 (42 U.S.C. 16062(a)(2)) (as amended by section 132) is
amended by inserting ``and loan guarantees under section 1703''
after ``grants''.
(b) Conforming Amendment.--Section 1703(b) of the Energy
Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by striking
paragraph (8) and inserting the following:
``(8) Production facilities for the manufacture of
fuel efficient vehicles or parts of those vehicles,
including electric drive vehicles and advanced diesel
vehicles.''.
SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.
(a) Establishment of Program.--The Secretary shall establish
a program to provide guarantees of loans by private
institutions for the construction of facilities for the
manufacture of advanced vehicle batteries and battery systems
that are developed and produced in the United States, including
advanced lithium ion batteries and hybrid electrical system and
component manufacturers and software designers.
(b) Requirements.--The Secretary may provide a loan guarantee
under subsection (a) to an applicant if--
(1) without a loan guarantee, credit is not available
to the applicant under reasonable terms or conditions
sufficient to finance the construction of a facility
described in subsection (a);
(2) the prospective earning power of the applicant
and the character and value of the security pledged
provide a reasonable assurance of repayment of the loan
to be guaranteed in accordance with the terms of the
loan; and
(3) the loan bears interest at a rate determined by
the Secretary to be reasonable, taking into account the
current average yield on outstanding obligations of the
United States with remaining periods of maturity
comparable to the maturity of the loan.
(c) Criteria.--In selecting recipients of loan guarantees
from among applicants, the Secretary shall give preference to
proposals that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the
greatest need for the facility.
(d) Maturity.--A loan guaranteed under subsection (a) shall
have a maturity of not more than 20 years.
(e) Terms and Conditions.--The loan agreement for a loan
guaranteed under subsection (a) shall provide that no provision
of the loan agreement may be amended or waived without the
consent of the Secretary.
(f) Assurance of Repayment.--The Secretary shall require that
an applicant for a loan guarantee under subsection (a) provide
an assurance of repayment in the form of a performance bond,
insurance, collateral, or other means acceptable to the
Secretary in an amount equal to not less than 20 percent of the
amount of the loan.
(g) Guarantee Fee.--The recipient of a loan guarantee under
subsection (a) shall pay the Secretary an amount determined by
the Secretary to be sufficient to cover the administrative
costs of the Secretary relating to the loan guarantee.
(h) Full Faith and Credit.--The full faith and credit of the
United States is pledged to the payment of all guarantees made
under this section. Any such guarantee made by the Secretary
shall be conclusive evidence of the eligibility of the loan for
the guarantee with respect to principal and interest. The
validity of the guarantee shall be incontestable in the hands
of a holder of the guaranteed loan.
(i) Reports.--Until each guaranteed loan under this section
has been repaid in full, the Secretary shall annually submit to
Congress a report on the activities of the Secretary under this
section.
(j) Authorization of Appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
section.
(k) Termination of Authority.--The authority of the Secretary
to issue a loan guarantee under subsection (a) terminates on
the date that is 10 years after the date of enactment of this
Act.
SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) Advanced technology vehicle.--The term ``advanced
technology vehicle'' means a light duty vehicle that
meets--
(A) the Bin 5 Tier II emission standard
established in regulations issued by the
Administrator of the Environmental Protection
Agency under section 202(i) of the Clean Air
Act (42 U.S.C. 7521(i)), or a lower-numbered
Bin emission standard;
(B) any new emission standard in effect for
fine particulate matter prescribed by the
Administrator under that Act (42 U.S.C. 7401 et
seq.); and
(C) at least 125 percent of the average base
year combined fuel economy for vehicles with
substantially similar attributes.
(2) Combined fuel economy.--The term ``combined fuel
economy'' means--
(A) the combined city/highway miles per
gallon values, as reported in accordance with
section 32904 of title 49, United States Code;
and
(B) in the case of an electric drive vehicle
with the ability to recharge from an off-board
source, the reported mileage, as determined in
a manner consistent with the Society of
Automotive Engineers recommended practice for
that configuration or a similar practice
recommended by the Secretary.
(3) Engineering integration costs.--The term
``engineering integration costs'' includes the cost of
engineering tasks relating to--
(A) incorporating qualifying components into
the design of advanced technology vehicles; and
(B) designing tooling and equipment and
developing manufacturing processes and material
suppliers for production facilities that
produce qualifying components or advanced
technology vehicles.
(4) Qualifying components.--The term ``qualifying
components'' means components that the Secretary
determines to be--
(A) designed for advanced technology
vehicles; and
(B) installed for the purpose of meeting the
performance requirements of advanced technology
vehicles.
(b) Advanced Vehicles Manufacturing Facility.--The Secretary
shall provide facility funding awards under this section to
automobile manufacturers and component suppliers to pay not
more than 30 percent of the cost of--
(1) reequipping, expanding, or establishing a
manufacturing facility in the United States to
produce--
(A) qualifying advanced technology vehicles;
or
(B) qualifying components; and
(2) engineering integration performed in the United
States of qualifying vehicles and qualifying
components.
(c) Period of Availability.--An award under subsection (b)
shall apply to--
(1) facilities and equipment placed in service before
December 30, 2020; and
(2) engineering integration costs incurred during the
period beginning on the date of enactment of this Act
and ending on December 30, 2020.
(d) Direct Loan Program.--
(1) In general.--Not later than 1 year after the date
of enactment of this Act, and subject to the
availability of appropriated funds, the Secretary shall
carry out a program to provide a total of not more than
$25,000,000,000 in loans to eligible individuals and
entities (as determined by the Secretary) for the costs
of activities described in subsection (b).
(2) Application.--An applicant for a loan under this
subsection shall submit to the Secretary an application
at such time, in such manner, and containing such
information as the Secretary may require, including a
written assurance that--
(A) all laborers and mechanics employed by
contractors or subcontractors during
construction, alteration, or repair that is
financed, in whole or in part, by a loan under
this section shall be paid wages at rates not
less than those prevailing on similar
construction in the locality, as determined by
the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40,
United States Code; and
(B) the Secretary of Labor shall, with
respect to the labor standards described in
this paragraph, have the authority and
functions set forth in Reorganization Plan
Numbered 14 of 1950 (5 U.S.C. App.) and section
3145 of title 40, United States Code.
(3) Selection of eligible projects.--The Secretary
shall select eligible projects to receive loans under
this subsection in cases in which, as determined by the
Secretary, the award recipient--
(A) is financially viable without the receipt
of additional Federal funding associated with
the proposed project;
(B) will provide sufficient information to
the Secretary for the Secretary to ensure that
the qualified investment is expended
efficiently and effectively; and
(C) has met such other criteria as may be
established and published by the Secretary.
(4) Rates, terms, and repayment of loans.--A loan
provided under this subsection--
(A) shall have an interest rate that, as of
the date on which the loan is made, is equal to
the cost of funds to the Department of the
Treasury for obligations of comparable
maturity;
(B) shall have a term equal to the lesser
of--
(i) the projected life, in years, of
the eligible project to be carried out
using funds from the loan, as
determined by the Secretary; and
(ii) 25 years;
(C) may be subject to a deferral in repayment
for not more than 5 years after the date on
which the eligible project carried out using
funds from the loan first begins operations, as
determined by the Secretary; and
(D) shall be made by the Federal Financing
Bank.
(e) Improvement.--The Secretary shall issue regulations that
require that, in order for an automobile manufacturer to be
eligible for an award or loan under this section during a
particular year, the adjusted average fuel economy of the
manufacturer for light duty vehicles produced by the
manufacturer during the most recent year for which data are
available shall be not less than the average fuel economy for
all light duty vehicles of the manufacturer for model year
2005. In order to determine fuel economy baselines for
eligibility of a new manufacturer or a manufacturer that has
not produced previously produced equivalent vehicles, the
Secretary may substitute industry averages.
(f) Fees.--Administrative costs shall be no more than
$100,000 or 10 basis point of the loan.
(g) Priority.--The Secretary shall, in making awards or loans
to those manufacturers that have existing facilities, give
priority to those facilities that are oldest or have been in
existence for at least 20 years. Such facilities can currently
be sitting idle.
(h) Set Aside for Small Automobile Manufacturers and
Component Suppliers.--
(1) Definition of covered firm.--In this subsection,
the term ``covered firm'' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures automobiles or components of
automobiles.
(2) Set aside.--Of the amount of funds that are used
to provide awards for each fiscal year under subsection
(b), the Secretary shall use not less than 10 percent
to provide awards to covered firms or consortia led by
a covered firm.
(i) Authorization of Appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2008 through 2012.
Subtitle C--Federal Vehicle Fleets
SEC. 141. FEDERAL VEHICLE FLEETS.
Section 303 of the Energy Policy Act of 1992 (42 U.S.C.
13212) is amended--
(1) by redesignating subsection (f) as subsection
(g); and
(2) by inserting after subsection (e) the following
new subsection:
``(f) Vehicle Emission Requirements.--
``(1) Definitions.--In this subsection:
``(A) Federal agency.--The term `Federal
agency' does not include any office of the
legislative branch, except that it does include
the House of Representatives with respect to an
acquisition described in paragraph (2)(C).
``(B) Medium duty passenger vehicle.--The
term `medium duty passenger vehicle' has the
meaning given that term section 523.2 of title
49 of the Code of Federal Regulations, as in
effect on the date of enactment of this
paragraph.
``(C) Member's representational allowance.--
The term `Member's Representational Allowance'
means the allowance described in section 101(a)
of the House of Representatives Administrative
Reform Technical Corrections Act (2 U.S.C.
57b(a)).
``(2) Prohibition.--
``(A) In general.--Except as provided in
subparagraph (B), no Federal agency shall
acquire a light duty motor vehicle or medium
duty passenger vehicle that is not a low
greenhouse gas emitting vehicle.
``(B) Exception.--The prohibition in
subparagraph (A) shall not apply to acquisition
of a vehicle if the head of the agency
certifies in writing, in a separate
certification for each individual vehicle
purchased, either--
``(i) that no low greenhouse gas
emitting vehicle is available to meet
the functional needs of the agency and
details in writing the functional needs
that could not be met with a low
greenhouse gas emitting vehicle; or
``(ii) that the agency has taken
specific alternative more cost-
effective measures to reduce petroleum
consumption that--
``(I) have reduced a measured
and verified quantity of
greenhouse gas emissions equal
to or greater than the quantity
of greenhouse gas reductions
that would have been achieved
through acquisition of a low
greenhouse gas emitting vehicle
over the lifetime of the
vehicle; or
``(II) will reduce each year
a measured and verified
quantity of greenhouse gas
emissions equal to or greater
than the quantity of greenhouse
gas reductions that would have
been achieved each year through
acquisition of a low greenhouse
gas emitting vehicle.
``(C) Special rule for vehicles provided by
funds contained in members' representational
allowance.--This paragraph shall apply to the
acquisition of a light duty motor vehicle or
medium duty passenger vehicle using any portion
of a Member's Representational Allowance,
including an acquisition under a long-term
lease.
``(3) Guidance.--
``(A) In general.--Each year, the
Administrator of the Environmental Protection
Agency shall issue guidance identifying the
makes and model numbers of vehicles that are
low greenhouse gas emitting vehicles.
``(B) Consideration.--In identifying vehicles
under subparagraph (A), the Administrator shall
take into account the most stringent standards
for vehicle greenhouse gas emissions applicable
to and enforceable against motor vehicle
manufacturers for vehicles sold anywhere in the
United States.
``(C) Requirement.--The Administrator shall
not identify any vehicle as a low greenhouse
gas emitting vehicle if the vehicle emits
greenhouse gases at a higher rate than such
standards allow for the manufacturer's fleet
average grams per mile of carbon dioxide-
equivalent emissions for that class of vehicle,
taking into account any emissions allowances
and adjustment factors such standards
provide.''.
SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.
Part J of title III of the Energy Policy and Conservation Act
(42 U.S.C. 6374 et seq.) is amended by adding at the end the
following:
``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.
``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In general.--Not later than 18 months after the
date of enactment of this section, the Secretary shall
issue regulations for Federal fleets subject to section
400AA to require that, beginning in fiscal year 2010,
each Federal agency shall reduce petroleum consumption
and increase alternative fuel consumption each year by
an amount necessary to meet the goals described in
paragraph (2).
``(2) Goals.--The goals of the requirements under
paragraph (1) are that not later than October 1, 2015,
and for each year thereafter, each Federal agency shall
achieve at least a 20 percent reduction in annual
petroleum consumption and a 10 percent increase in
annual alternative fuel consumption, as calculated from
the baseline established by the Secretary for fiscal
year 2005.
``(3) Milestones.--The Secretary shall include in the
regulations described in paragraph (1)--
``(A) interim numeric milestones to assess
annual agency progress towards accomplishing
the goals described in that paragraph; and
``(B) a requirement that agencies annually
report on progress towards meeting each of the
milestones and the 2015 goals.
``(b) Plan.--
``(1) Requirement.--
``(A) In general.--The regulations under
subsection (a) shall require each Federal
agency to develop a plan, and implement the
measures specified in the plan by dates
specified in the plan, to meet the required
petroleum reduction levels and the alternative
fuel consumption increases, including the
milestones specified by the Secretary.
``(B) Inclusions.--The plan shall--
``(i) identify the specific measures
the agency will use to meet the
requirements of subsection (a)(2); and
``(ii) quantify the reductions in
petroleum consumption or increases in
alternative fuel consumption projected
to be achieved by each measure each
year.
``(2) Measures.--The plan may allow an agency to meet
the required petroleum reduction level through--
``(A) the use of alternative fuels;
``(B) the acquisition of vehicles with higher
fuel economy, including hybrid vehicles,
neighborhood electric vehicles, electric
vehicles, and plug-in hybrid vehicles if the
vehicles are commercially available;
``(C) the substitution of cars for light
trucks;
``(D) an increase in vehicle load factors;
``(E) a decrease in vehicle miles traveled;
``(F) a decrease in fleet size; and
``(G) other measures.''.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
SEC. 201. DEFINITIONS.
Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is
amended to read as follows:
``(1) Definitions.--In this section:
``(A) Additional renewable fuel.--The term
`additional renewable fuel' means fuel that is
produced from renewable biomass and that is
used to replace or reduce the quantity of
fossil fuel present in home heating oil or jet
fuel.
``(B) Advanced biofuel.--
``(i) In general.--The term `advanced
biofuel' means renewable fuel, other
than ethanol derived from corn starch,
that has lifecycle greenhouse gas
emissions, as determined by the
Administrator, after notice and
opportunity for comment, that are at
least 50 percent less than baseline
lifecycle greenhouse gas emissions.
``(ii) Inclusions.--The types of
fuels eligible for consideration as
`advanced biofuel' may include any of
the following:
``(I) Ethanol derived from
cellulose, hemicellulose, or
lignin.
``(II) Ethanol derived from
sugar or starch (other than
corn starch).
``(III) Ethanol derived from
waste material, including crop
residue, other vegetative waste
material, animal waste, and
food waste and yard waste.
``(IV) Biomass-based diesel.
``(V) Biogas (including
landfill gas and sewage waste
treatment gas) produced through
the conversion of organic
matter from renewable biomass.
``(VI) Butanol or other
alcohols produced through the
conversion of organic matter
from renewable biomass.
``(VII) Other fuel derived
from cellulosic biomass.
``(C) Baseline lifecycle greenhouse gas
emissions.--The term `baseline lifecycle
greenhouse gas emissions' means the average
lifecycle greenhouse gas emissions, as
determined by the Administrator, after notice
and opportunity for comment, for gasoline or
diesel (whichever is being replaced by the
renewable fuel) sold or distributed as
transportation fuel in 2005.
``(D) Biomass-based diesel.--The term
`biomass-based diesel' means renewable fuel
that is biodiesel as defined in section 312(f)
of the Energy Policy Act of 1992 (42 U.S.C.
13220(f)) and that has lifecycle greenhouse gas
emissions, as determined by the Administrator,
after notice and opportunity for comment, that
are at least 50 percent less than the baseline
lifecycle greenhouse gas emissions.
Notwithstanding the preceding sentence,
renewable fuel derived from co-processing
biomass with a petroleum feedstock shall be
advanced biofuel if it meets the requirements
of subparagraph (B), but is not biomass-based
diesel.
``(E) Cellulosic biofuel.--The term
`cellulosic biofuel' means renewable fuel
derived from any cellulose, hemicellulose, or
lignin that is derived from renewable biomass
and that has lifecycle greenhouse gas
emissions, as determined by the Administrator,
that are at least 60 percent less than the
baseline lifecycle greenhouse gas emissions.
``(F) Conventional biofuel.--The term
`conventional biofuel' means renewable fuel
that is ethanol derived from corn starch
``(G) Greenhouse gas.--The term `greenhouse
gas' means carbon dioxide, hydrofluorocarbons,
methane, nitrous oxide, perfluorocarbons,
sulfur hexafluoride. The Administrator may
include any other anthropogenically-emitted gas
that is determined by the Administrator, after
notice and comment, to contribute to global
warming.
``(H) Lifecycle greenhouse gas emissions.--
The term `lifecycle greenhouse gas emissions'
means the aggregate quantity of greenhouse gas
emissions (including direct emissions and
significant indirect emissions such as
significant emissions from land use changes),
as determined by the Administrator, related to
the full fuel lifecycle, including all stages
of fuel and feedstock production and
distribution, from feedstock generation or
extraction through the distribution and
delivery and use of the finished fuel to the
ultimate consumer, where the mass values for
all greenhouse gases are adjusted to account
for their relative global warming potential.
``(I) Renewable biomass.--The term `renewable
biomass' means each of the following:
``(i) Planted crops and crop residue
harvested from agricultural land
cleared or cultivated at any time prior
to the enactment of this sentence that
is either actively managed or fallow,
and nonforested.
``(ii) Planted trees and tree residue
from actively managed tree plantations
on non-federal land cleared at any time
prior to enactment of this sentence,
including land belonging to an Indian
tribe or an Indian individual, that is
held in trust by the United States or
subject to a restriction against
alienation imposed by the United
States.
``(iii) Animal waste material and
animal byproducts.
``(iv) Slash and pre-commercial
thinnings that are from non-federal
forestlands, including forestlands
belonging to an Indian tribe or an
Indian individual, that are held in
trust by the United States or subject
to a restriction against alienation
imposed by the United States, but not
forests or forestlands that are
ecological communities with a global or
State ranking of critically imperiled,
imperiled, or rare pursuant to a State
Natural Heritage Program, old growth
forest, or late successional forest.
``(v) Biomass obtained from the
immediate vicinity of buildings and
other areas regularly occupied by
people, or of public infrastructure, at
risk from wildfire.
``(vi) Algae.
``(vii) Separated yard waste or food
waste, including recycled cooking and
trap grease.
``(J) Renewable fuel.--The term `renewable
fuel' means fuel that is produced from
renewable biomass and that is used to replace
or reduce the quantity of fossil fuel present
in a transportation fuel.
``(K) Small refinery.--The term `small
refinery' means a refinery for which the
average aggregate daily crude oil throughput
for a calendar year (as determined by dividing
the aggregate throughput for the calendar year
by the number of days in the calendar year)
does not exceed 75,000 barrels.
``(L) Transportation fuel.--The term
`transportation fuel' means fuel for use in
motor vehicles, motor vehicle engines, nonroad
vehicles, or nonroad engines (except for ocean-
going vessels).''.
SEC. 202. RENEWABLE FUEL STANDARD.
(a) Renewable Fuel Program.--Paragraph (2) of section 211(o)
(42 U.S.C. 7545(o)(2)) of the Clean Air Act is amended as
follows:
(1) Regulations.--Clause (i) of subparagraph (A) is
amended by adding the following at the end thereof:
``Not later than 1 year after the date of enactment of
this sentence, the Administrator shall revise the
regulations under this paragraph to ensure that
transportation fuel sold or introduced into commerce in
the United States (except in noncontiguous States or
territories), on an annual average basis, contains at
least the applicable volume of renewable fuel, advanced
biofuel, cellulosic biofuel, and biomass-based diesel,
determined in accordance with subparagraph (B) and, in
the case of any such renewable fuel produced from new
facilities that commence construction after the date of
enactment of this sentence, achieves at least a 20
percent reduction in lifecycle greenhouse gas emissions
compared to baseline lifecycle greenhouse gas
emissions.''
(2) Applicable volumes of renewable fuel.--
Subparagraph (B) is amended to read as follows:
``(B) Applicable volumes.--
``(i) Calendar years after 2005.--
``(I) Renewable fuel.--For
the purpose of subparagraph
(A), the applicable volume of
renewable fuel for the calendar
years 2006 through 2022 shall
be determined in accordance
with the following table:
Applicable volume of renewable fuel
``Calendar year: (in billions of gallons):
2006.......................................................... 4.0
2007.......................................................... 4.7
2008.......................................................... 9.0
2009.......................................................... 11.1
2010.......................................................... 12.95
2011.......................................................... 13.95
2012.......................................................... 15.2
2013.......................................................... 16.55
2014.......................................................... 18.15
2015.......................................................... 20.5
2016.......................................................... 22.25
2017.......................................................... 24.0
2018.......................................................... 26.0
2019.......................................................... 28.0
2020.......................................................... 30.0
2021.......................................................... 33.0
2022.......................................................... 36.0
``(II) Advanced biofuel.--For
the purpose of subparagraph
(A), of the volume of renewable
fuel required under subclause
(I), the applicable volume of
advanced biofuel for the
calendar years 2009 through
2022 shall be determined in
accordance with the following
table:
Applicable volume of advanced biofuel
``Calendar year: (in billions of gallons):
2009.......................................................... 0.6
2010.......................................................... 0.95
2011.......................................................... 1.35
2012.......................................................... 2.0
2013.......................................................... 2.75
2014.......................................................... 3.75
2015.......................................................... 5.5
2016.......................................................... 7.25
2017.......................................................... 9.0
2018.......................................................... 11.0
2019.......................................................... 13.0
2020.......................................................... 15.0
2021.......................................................... 18.0
2022.......................................................... 21.0
``(III) Cellulosic biofuel.--
For the purpose of subparagraph
(A), of the volume of advanced
biofuel required under
subclause (II), the applicable
volume of cellulosic biofuel
for the calendar years 2010
through 2022 shall be
determined in accordance with
the following table:
Applicable volume of cellulosic biofuel
``Calendar year: (in billions of gallons):
2010.......................................................... 0.1
2011.......................................................... 0.25
2012.......................................................... 0.5
2013.......................................................... 1.0
2014.......................................................... 1.75
2015.......................................................... 3.0
2016.......................................................... 4.25
2017.......................................................... 5.5
2018.......................................................... 7.0
2019.......................................................... 8.5
2020.......................................................... 10.5
2021.......................................................... 13.5
2022.......................................................... 16.0
``(IV) Biomass-based
diesel.--For the purpose of
subparagraph (A), of the volume
of advanced biofuel required
under subclause (II), the
applicable volume of biomass-
based diesel for the calendar
years 2009 through 2012 shall
be determined in accordance
with the following table:
Applicable volume of biomass-based diesel
``Calendar year: (in billions of gallons):
2009.......................................................... 0.5
2010.......................................................... 0.65
2011.......................................................... 0.80
2012.......................................................... 1.0
``(ii) Other calendar years.--For the
purposes of subparagraph (A), the
applicable volumes of each fuel
specified in the tables in clause (i)
for calendar years after the calendar
years specified in the tables shall be
determined by the Administrator, in
coordination with the Secretary of
Energy and the Secretary of
Agriculture, based on a review of the
implementation of the program during
calendar years specified in the tables,
and an analysis of--
``(I) the impact of the
production and use of renewable
fuels on the environment,
including on air quality,
climate change, conversion of
wet lands, eco-systems,
wildlife habitat, water
quality, and water supply;
``(II) the impact of
renewable fuels on the energy
security of the United States;
``(III) the expected annual
rate of future commercial
production of renewable fuels,
including advanced biofuels in
each category (cellulosic
biofuel and biomass-based
diesel);
``(IV) the impact of
renewable fuels on the
infrastructure of the United
States, including
deliverability of materials,
goods, and products other than
renewable fuel, and the
sufficiency of infrastructure
to deliver and use renewable
fuel;
``(V) the impact of the use
of renewable fuels on the cost
to consumers of transportation
fuel and on the cost to
transport goods; and
``(VI) the impact of the use
of renewable fuels on other
factors, including job
creation, the price and supply
of agricultural commodities,
rural economic development, and
food prices.
The Administrator shall promulgate
rules establishing the applicable
volumes under this clause no later than
14 months before the first year for
which such applicable volume will
apply.
``(iii) Applicable volume of advanced
biofuel.--For the purpose of making the
determinations in clause (ii), for each
calendar year, the applicable volume of
advanced biofuel shall be at least the
same percentage of the applicable
volume of renewable fuel as in calendar
year 2022.
``(iv) Applicable volume of
cellulosic biofuel.--For the purpose of
making the determinations in clause
(ii), for each calendar year, the
applicable volume of cellulosic biofuel
established by the Administrator shall
be based on the assumption that the
Administrator will not need to issue a
waiver for such years under paragraph
(7)(D).
``(v) Minimum applicable volume of
biomass-based diesel.--For the purpose
of making the determinations in clause
(ii), the applicable volume of biomass-
based diesel shall not be less than the
applicable volume listed in clause
(i)(IV) for calendar year 2012.''.
(b) Applicable Percentages.--Paragraph (3) of section 211(o)
of the Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as
follows:
(1) In subparagraph (A), by striking ``2011'' and
inserting ``2021.''
(2) In subparagraph (A), by striking ``gasoline'' and
inserting ``transportation fuel, biomass-based diesel,
and cellulosic biofuel''.
(3) In subparagraph (B), by striking ``2012'' and
inserting ``2021'' in clause (ii)(I).
(4) In subparagraph (B), by striking gasoline'' and
inserting ``transportation fuel'' in clause (ii)(II).
(c) Modification of Greenhouse Gas Percentages.--Paragraph
(4) of section 211(o) of the Clean Air Act (42 U.S.C.
7545(o)(4)) is amended to read as follows:
``(4) Modification of greenhouse gas reduction
percentages.--
``(A) In general.--The Administrator may, in
the regulations under the last sentence of
paragraph (2)(A)(i), adjust the 20 percent, 50
percent, and 60 percent reductions in lifecycle
greenhouse gas emissions specified in
paragraphs (2)(A)(i)(relating to renewable
fuel), (1)(D) (relating to biomass-based
diesel), (1)(B)(i)(relating to advanced
biofuel), and (1)(E) (relating to cellulosic
biofuel) to a lower percentage. For the 50 and
60 percent reductions, the Administrator may
make such an adjustment only if he determines
that generally such reduction is not
commercially feasible for fuels made using a
variety of feedstocks, technologies, and
processes to meet the applicable reduction.
``(B) Amount of adjustment.--In promulgating
regulations under this paragraph, the specified
50 percent reduction in greenhouse gas
emissions from advanced biofuel and in biomass-
based diesel may not be reduced below 40
percent. The specified 20 percent reduction in
greenhouse gas emissions from renewable fuel
may not be reduced below 10 percent, and the
specified 60 percent reduction in greenhouse
gas emissions from cellulosic biofuel may not
be reduced below 50 percent.
``(C) Adjusted reduction levels.--An
adjustment under this paragraph to a percent
less than the specified 20 percent greenhouse
gas reduction for renewable fuel shall be the
minimum possible adjustment, and the adjusted
greenhouse gas reduction shall be established
by the Administrator at the maximum achievable
level, taking cost in consideration, for
natural gas fired corn-based ethanol plants,
allowing for the use of a variety of
technologies and processes. An adjustment in
the 50 or 60 percent greenhouse gas levels
shall be the minimum possible adjustment for
the fuel or fuels concerned, and the adjusted
greenhouse gas reduction shall be established
at the maximum achievable level, taking cost in
consideration, allowing for the use of a
variety of feedstocks, technologies, and
processes.
``(D) 5-year review.--Whenever the
Administrator makes any adjustment under this
paragraph, not later than 5 years thereafter he
shall review and revise (based upon the same
criteria and standards as required for the
initial adjustment) the regulations
establishing the adjusted level.
``(E) Subsequent adjustments.--After the
Administrator has promulgated a final rule
under the last sentence of paragraph (2)(A)(i)
with respect to the method of determining
lifecycle greenhouse gas emissions, except as
provided in subparagraph (D), the Administrator
may not adjust the percent greenhouse gas
reduction levels unless he determines that
there has been a significant change in the
analytical methodology used for determining the
lifecycle greenhouse gas emissions. If he makes
such determination, he may adjust the 20, 50,
or 60 percent reduction levels through
rulemaking using the criteria and standards set
forth in this paragraph.
``(F) Limit on upward adjustments.--If, under
subparagraph (D) or (E), the Administrator
revises a percent level adjusted as provided in
subparagraph (A), (B), and (C) to a higher
percent, such higher percent may not exceed the
applicable percent specified in paragraph
(2)(A)(i), (1)(D),(1)(B)(i), or (1)(E).
``(G) Applicability of adjustments.--If the
Administrator adjusts, or revises, a percent
level referred to in this paragraph or makes a
change in the analytical methodology used for
determining the lifecycle greenhouse gas
emissions, such adjustment, revision, or change
(or any combination thereof) shall only apply
to renewable fuel from new facilities that
commence construction after the effective date
of such adjustment, revision, or change.''.
(d) Credits for Additional Renewable Fuel.--Paragraph (5) of
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is
amended by adding the following new subparagraph at the end
thereof:
``(E) Credits for additional renewable
fuel.--The Administrator may issue regulations
providing (i) for the generation of an
appropriate amount of credits by any person
that refines, blends, or imports additional
renewable fuels specified by the Administrator
and (ii) for the use of such credits by the
generator, or the transfer of all or a portion
of the credits to another person, for the
purpose of complying with paragraph (2).''.
(e) Waivers.--
(1) In general.--Paragraph (7)(A) of section 211(o)
of the Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is
amended by inserting ``, by any person subject to the
requirements of this subsection, or by the
Administrator on his own motion'' after ``one or more
States'' in subparagraph (A) and by striking out
``State'' in subparagraph (B).
(2) Cellulosic biofuel.--Paragraph (7) of section
211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)) is
amended by adding the following at the end thereof:
``(D) Cellulosic biofuel.--(i) For any
calendar year for which the projected volume of
cellulosic biofuel production is less than the
minimum applicable volume established under
paragraph (2)(B), as determined by the
Administrator based on the estimate provided
under paragraph (3)(A), not later than November
30 of the preceding calendar year, the
Administrator shall reduce the applicable
volume of cellulosic biofuel required under
paragraph (2)(B) to the projected volume
available during that calendar year. For any
calendar year in which the Administrator makes
such a reduction, the Administrator may also
reduce the applicable volume of renewable fuel
and advanced biofuels requirement established
under paragraph (2)(B) by the same or a lesser
volume.
``(ii) Whenever the Administrator reduces the
minimum cellulosic biofuel volume under this
subparagraph, the Administrator shall make
available for sale cellulosic biofuel credits
at the higher of $0.25 per gallon or the amount
by which $3.00 per gallon exceeds the average
wholesale price of a gallon of gasoline in the
United States. Such amounts shall be adjusted
for inflation by the Administrator for years
after 2008.
``(iii) 18 months after date of enactment of
this subparagraph, the Administrator shall
promulgate regulations to govern the issuance
of credits under this subparagraph. The
regulations shall set forth the method for
determining the exact price of credits in the
event of a waiver. The price of such credits
shall not be changed more frequently than once
each quarter. These regulations shall include
such provisions, including limiting the
credits' uses and useful life, as the
Administrator deems appropriate to assist
market liquidity and transparency, to provide
appropriate certainty for regulated entities
and renewable fuel producers, and to limit any
potential misuse of cellulosic biofuel credits
to reduce the use of other renewable fuels, and
for such other purposes as the Administrator
determines will help achieve the goals of this
subsection. The regulations shall limit the
number of cellulosic biofuel credits for any
calendar year to the minimum applicable volume
(as reduced under this subparagraph) of
cellulosic biofuel for that year.''.
(3) Biomass-based diesel.--Paragraph (7) of section
211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)) is
amended by adding the following at the end thereof:
``(E) Biomass-based diesel.--
``(i) Market evaluation.--The
Administrator, in consultation with the
Secretary of Energy and the Secretary
of Agriculture, shall periodically
evaluate the impact of the biomass-
based diesel requirements established
under this paragraph on the price of
diesel fuel.
``(ii) Waiver.--If the Administrator
determines that there is a significant
renewable feedstock disruption or other
market circumstances that would make
the price of biomass-based diesel fuel
increase significantly, the
Administrator, in consultation with the
Secretary of Energy and the Secretary
of Agriculture, shall issue an order to
reduce, for up to a 60-day period, the
quantity of biomass-based diesel
required under subparagraph (A) by an
appropriate quantity that does not
exceed 15 percent of the applicable
annual requirement for biomass-based
diesel. For any calendar year in which
the Administrator makes a reduction
under this subparagraph, the
Administrator may also reduce the
applicable volume of renewable fuel and
advanced biofuels requirement
established under paragraph (2)(B) by
the same or a lesser volume.
``(iii) Extensions.--If the
Administrator determines that the
feedstock disruption or circumstances
described in clause (ii) is continuing
beyond the 60-day period described in
clause (ii) or this clause, the
Administrator, in consultation with the
Secretary of Energy and the Secretary
of Agriculture, may issue an order to
reduce, for up to an additional 60-day
period, the quantity of biomass-based
diesel required under subparagraph (A)
by an appropriate quantity that does
not exceed an additional 15 percent of
the applicable annual requirement for
biomass-based diesel.
``(F) Modification of applicable volumes.--
For any of the tables in paragraph (2)(B), if
the Administrator waives--
``(i) at least 20 percent of the
applicable volume requirement set forth
in any such table for 2 consecutive
years; or
``(ii) at least 50 percent of such
volume requirement for a single year,
the Administrator shall promulgate a rule
(within one year after issuing such waiver)
that modifies the applicable volumes set forth
in the table concerned for all years following
the final year to which the waiver applies,
except that no such modification in applicable
volumes shall be made for any year before 2016.
In promulgating such a rule, the Administrator
shall comply with the processes, criteria, and
standards set forth in paragraph (2)(B)(ii).''.
SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.
(a) In General.--The Secretary of Energy, in consultation
with the Secretary of Agriculture and the Administrator of the
Environmental Protection Agency, shall enter into an
arrangement with the National Academy of Sciences under which
the Academy shall conduct a study to assess the impact of the
requirements described in section 211(o) of the Clean Air Act
on each industry relating to the production of feed grains,
livestock, food, forest products, and energy.
(b) Participation.--In conducting the study under this
section, the National Academy of Sciences shall seek the
participation, and consider the input, of--
(1) producers of feed grains;
(2) producers of livestock, poultry, and pork
products;
(3) producers of food and food products;
(4) producers of energy;
(5) individuals and entities interested in issues
relating to conservation, the environment, and
nutrition;
(6) users and consumer of renewable fuels;
(7) producers and users of biomass feedstocks; and
(8) land grant universities.
(c) Considerations.--In conducting the study, the National
Academy of Sciences shall consider--
(1) the likely impact on domestic animal agriculture
feedstocks that, in any crop year, are significantly
below current projections;
(2) policy options to alleviate the impact on
domestic animal agriculture feedstocks that are
significantly below current projections; and
(3) policy options to maintain regional agricultural
and silvicultural capability.
(d) Components.--The study shall include--
(1) a description of the conditions under which the
requirements described in section 211(o) of the Clean
Air Act should be suspended or reduced to prevent
adverse impacts to domestic animal agriculture
feedstocks described in subsection (c)(2) or regional
agricultural and silvicultural capability described in
subsection (c)(3); and
(2) recommendations for the means by which the
Federal Government could prevent or minimize adverse
economic hardships and impacts.
(e) Deadline for Completion of Study.--Not later than 18
months after the date of enactment of this Act, the Secretary
shall submit to Congress a report that describes the results of
the study under this section.
(f) Periodic Reviews.--Section 211(o) of the Clean Air Act is
amended by adding the following at the end thereof:
``(12) Periodic reviews.--To allow for the
appropriate adjustment of the requirements described in
subparagraph (B) of paragraph (2), the Administrator
shall conduct periodic reviews of--
``(A) existing technologies;
``(B) the feasibility of achieving compliance
with the requirements; and
``(C) the impacts of the requirements
described in subsection (a)(2) on each
individual and entity described in paragraph
(2).''.
SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.
(a) In General.--Not later than 3 years after the enactment
of this section and every 3 years thereafter, the Administrator
of the Environmental Protection Agency, in consultation with
the Secretary of Agriculture and the Secretary of Energy, shall
assess and report to Congress on the impacts to date and likely
future impacts of the requirements of section 211(o) of the
Clean Air Act on the following:
(1) Environmental issues, including air quality,
effects on hypoxia, pesticides, sediment, nutrient and
pathogen levels in waters, acreage and function of
waters, and soil environmental quality.
(2) Resource conservation issues, including soil
conservation, water availability, and ecosystem health
and biodiversity, including impacts on forests,
grasslands, and wetlands.
(3) The growth and use of cultivated invasive or
noxious plants and their impacts on the environment and
agriculture.
In advance of preparing the report required by this subsection,
the Administrator may seek the views of the National Academy of
Sciences or another appropriate independent research institute.
The report shall include the annual volume of imported
renewable fuels and feedstocks for renewable fuels, and the
environmental impacts outside the United States of producing
such fuels and feedstocks. The report required by this
subsection shall include recommendations for actions to address
any adverse impacts found.
(b) Effect on Air Quality and Other Environmental
Requirements.--Except as provided in section 211(o)(13) of the
Clean Air Act, nothing in the amendments made by this title to
section 211(o) of the Clean Air Act shall be construed as
superseding, or limiting, any more environmentally protective
requirement under the Clean Air Act, or under any other
provision of State or Federal law or regulation, including any
environmental law or regulation.
SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING.
(a) In General.--Each retail diesel fuel pump shall be
labeled in a manner that informs consumers of the percent of
biomass-based diesel or biodiesel that is contained in the
biomass-based diesel blend or biodiesel blend that is offered
for sale, as determined by the Federal Trade Commission.
(b) Labeling Requirements.--Not later than 180 days after the
date of enactment of this section, the Federal Trade Commission
shall promulgate biodiesel labeling requirements as follows:
(1) Biomass-based diesel blends or biodiesel blends
that contain less than or equal to 5 percent biomass-
based diesel or biodiesel by volume and that meet ASTM
D975 diesel specifications shall not require any
additional labels.
(2) Biomass based diesel blends or biodiesel blends
that contain more than 5 percent biomass-based diesel
or biodiesel by volume but not more than 20 percent by
volume shall be labeled ``contains biomass-based diesel
or biodiesel in quantities between 5 percent and 20
percent''.
(3) Biomass-based diesel or biodiesel blends that
contain more than 20 percent biomass based or biodiesel
by volume shall be labeled ``contains more than 20
percent biomass-based diesel or biodiesel''.
(c) Definitions.--In this section:
(1) Astm.--The term ``ASTM'' means the American
Society of Testing and Materials.
(2) Biomass-based diesel.--The term ``biomass-based
diesel'' means biodiesel as defined in section 312(f)
of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
(3) Biodiesel.--The term ``biodiesel'' means the
monoalkyl esters of long chain fatty acids derived from
plant or animal matter that meet--
(A) the registration requirements for fuels
and fuel additives under this section; and
(B) the requirements of ASTM standard D6751.
(4) Biomass-based diesel and biodiesel blends.--The
terms ``biomass-based diesel blend'' and ``biodiesel
blend'' means a blend of ``biomass-based diesel'' or
``biodiesel'' fuel that is blended with petroleum based
diesel fuel.
SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY IN ELECTRIC
VEHICLES.
(a) Definition of Electric Vehicle.--In this section, the
term ``electric vehicle'' means an electric motor vehicle (as
defined in section 601 of the Energy Policy Act of 1992 (42
U.S.C. 13271)) for which the rechargeable storage battery--
(1) receives a charge directly from a source of
electric current that is external to the vehicle; and
(2) provides a minimum of 80 percent of the motive
power of the vehicle.
(b) Study.--The Administrator of the Environmental Protection
Agency shall conduct a study on the feasibility of issuing
credits under the program established under section 211(o) of
the Clean Air Act to electric vehicles powered by electricity
produced from renewable energy sources.
(c) Report.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Energy and Natural Resources of the United States
Senate and the Committee on Energy and Commerce of the United
States House of Representatives a report that describes the
results of the study, including a description of--
(1) existing programs and studies on the use of
renewable electricity as a means of powering electric
vehicles; and
(2) alternatives for--
(A) designing a pilot program to determine
the feasibility of using renewable electricity
to power electric vehicles as an adjunct to a
renewable fuels mandate;
(B) allowing the use, under the pilot program
designed under subparagraph (A), of electricity
generated from nuclear energy as an additional
source of supply;
(C) identifying the source of electricity
used to power electric vehicles; and
(D) equating specific quantities of
electricity to quantities of renewable fuel
under section 211(o) of the Clean Air Act.
SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.
(a) In General.--The Secretary of Energy shall establish a
grant program to encourage the production of advanced biofuels.
(b) Requirements and Priority.--In making grants under this
section, the Secretary--
(1) shall make awards to the proposals for advanced
biofuels with the greatest reduction in lifecycle
greenhouse gas emissions compared to the comparable
motor vehicle fuel lifecycle emissions during calendar
year 2005; and
(2) shall not make an award to a project that does
not achieve at least a 80 percent reduction in such
lifecycle greenhouse gas emissions.
(c) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $500,000,000 for the
period of fiscal years 2008 through 2015.
SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN DETERMINATIONS
ON FUELS AND FUEL ADDITIVES.
Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1))
is amended as follows:
(1) By striking ``nonroad vehicle (A) if in the
judgment of the Administrator'' and inserting ``nonroad
vehicle if, in the judgment of the Administrator, any
fuel or fuel additive or'' ; and
(2) In subparagraph (A), by striking ``air pollution
which'' and inserting ``air pollution or water
pollution (including any degradation in the quality of
groundwater) that''.
SEC. 209. ANTI-BACKSLIDING.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended
by adding at the end the following:
``(v) Prevention of Air Quality Deterioration.--
``(1) Study.--
``(A) In general.--Not later than 18 months
after the date of enactment of this subsection,
the Administrator shall complete a study to
determine whether the renewable fuel volumes
required by this section will adversely impact
air quality as a result of changes in vehicle
and engine emissions of air pollutants
regulated under this Act.
``(B) Considerations.--The study shall
include consideration of--
``(i) different blend levels, types
of renewable fuels, and available
vehicle technologies; and
``(ii) appropriate national,
regional, and local air quality control
measures.
``(2) Regulations.--Not later than 3 years after the
date of enactment of this subsection, the Administrator
shall--
``(A) promulgate fuel regulations to
implement appropriate measures to mitigate, to
the greatest extent achievable, considering the
results of the study under paragraph (1), any
adverse impacts on air quality, as the result
of the renewable volumes required by this
section; or
``(B) make a determination that no such
measures are necessary.''.
SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND TRANSITION RULES.
(a) Transition Rules.--(1) For calendar year 2008,
transportation fuel sold or introduced into commerce in the
United States (except in noncontiguous States or territories),
that is produced from facilities that commence construction
after the date of enactment of this Act shall be treated as
renewable fuel within the meaning of section 211(o) of the
Clean Air Act only if it achieves at least a 20 percent
reduction in lifecycle greenhouse gas emissions compared to
baseline lifecycle greenhouse gas emissions. For calendar years
2008 and 2009, any ethanol plant that is fired with natural
gas, biomass, or any combination thereof is deemed to be in
compliance with such 20 percent reduction requirement and with
the 20 percent reduction requirement of section 211(o)(1) of
the Clean Air Act. The terms used in this subsection shall have
the same meaning as provided in the amendment made by this Act
to section 211(o) of the Clean Air Act.
(2) Until January 1, 2009, the Administrator of the
Environmental Protection Agency shall implement section 211(o)
of the Clean Air Act and the rules promulgated under that
section in accordance with the provisions of that section as in
effect before the enactment of this Act and in accordance with
the rules promulgated before the enactment of this Act, except
that for calendar year 2008, the number ``8.5'' shall be
substituted for the number ``5.4'' in the table in section
211(o)(2)(B) and in the corresponding rules promulgated to
carry out those provisions. The Administrator is authorized to
take such other actions as may be necessary to carry out this
paragraph notwithstanding any other provision of law.
(b) Savings Clause.--Section 211(o) of the Clean Air Act (42
U.S.C. 7545(o)) is amended by adding the following new
paragraph at the end thereof:
``(13) Effect on other provisions.--Nothing in this
subsection, or regulations issued pursuant to this
subsection, shall affect or be construed to affect the
regulatory status of carbon dioxide or any other
greenhouse gas, or to expand or limit regulatory
authority regarding carbon dioxide or any other
greenhouse gas, for purposes of other provisions
(including section 165) of this Act. The previous
sentence shall not affect implementation and
enforcement of this subsection.''.
(c) Effective Date.--The amendments made by this title to
section 211(o) of the Clean Air Act shall take effect January
1, 2009, except that the Administrator shall promulgate
regulations to carry out such amendments not later than one
year after the enactment of this Act.
Subtitle B--Biofuels Research and Development
SEC. 221. BIODIESEL.
(a) Biodiesel Study.--Not later than 180 days after the date
of enactment of this Act, the Secretary, in consultation with
the Administrator of the Environmental Protection Agency, shall
submit to Congress a report on any research and development
challenges inherent in increasing the proportion of diesel fuel
sold in the United States that is biodiesel.
(b) Material for the Establishment of Standards.--The
Director of the National Institute of Standards and Technology,
in consultation with the Secretary, shall make publicly
available the physical property data and characterization of
biodiesel and other biofuels as appropriate.
SEC. 222. BIOGAS.
Not later than 180 days after the date of enactment of this
Act, the Secretary, in consultation with the Administrator of
the Environmental Protection Agency, shall submit to Congress a
report on any research and development challenges inherent in
increasing the amount of transportation fuels sold in the
United States that are fuel with biogas or a blend of biogas
and natural gas.
SEC. 223. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND DEVELOPMENT IN
CERTAIN STATES.
(a) In General.--The Secretary shall provide grants to
eligible entities for research, development, demonstration, and
commercial application of biofuel production technologies in
States with low rates of ethanol production, including low
rates of production of cellulosic biomass ethanol, as
determined by the Secretary.
(b) Eligibility.--To be eligible to receive a grant under
this section, an entity shall--
(1)(A) be an institution of higher education (as
defined in section 2 of the Energy Policy Act of 2005
(42 U.S.C. 15801)), including tribally controlled
colleges or universities, located in a State described
in subsection (a); or
(B) be a consortium including at least 1 such
institution of higher education, and industry, State
agencies, Indian tribal agencies, National
Laboratories, or local government agencies located in
the State; and
(2) have proven experience and capabilities with
relevant technologies.
(c) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary to carry out this section
$25,000,000 for each of fiscal years 2008 through 2010.
SEC. 224. BIOREFINERY ENERGY EFFICIENCY.
Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232) is
amended by adding at the end the following new subsections:
``(g) Biorefinery Energy Efficiency.--The Secretary shall
establish a program of research, development, demonstration,
and commercial application for increasing energy efficiency and
reducing energy consumption in the operation of biorefinery
facilities.
``(h) Retrofit Technologies for the Development of Ethanol
From Cellulosic Materials.--The Secretary shall establish a
program of research, development, demonstration, and commercial
application on technologies and processes to enable
biorefineries that exclusively use corn grain or corn starch as
a feedstock to produce ethanol to be retrofitted to accept a
range of biomass, including lignocellulosic feedstocks.''.
SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES TO USE E-85
FUEL.
(a) In General.--The Secretary, in consultation with the
Secretary of Transportation and the Administrator of the
Environmental Protection Agency, shall conduct a study of
whether optimizing flexible fueled vehicles to operate using E-
85 fuel would increase the fuel efficiency of flexible fueled
vehicles.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Science and Technology and the Committee on Energy
and Commerce of the House of Representatives, and to the
Committee on Energy and Natural Resources, the Committee on
Environment and Public Works, and the Committee on Commerce,
Science, and Transportation of the Senate, a report that
describes the results of the study under this section,
including any recommendations of the Secretary.
SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORMANCE ASSOCIATED WITH
THE USE OF BIODIESEL.
(a) In General.--Not later than 30 days after the date of
enactment of this Act, the Secretary, in consultation with the
Administrator of the Environmental Protection Agency, shall
initiate a study on the effects of the use of biodiesel on the
performance and durability of engines and engine systems.
(b) Components.--The study under this section shall include--
(1) an assessment of whether the use of biodiesel
lessens the durability and performance of conventional
diesel engines and engine systems; and
(2) an assessment of the effects referred to in
subsection (a) with respect to biodiesel blends at
varying concentrations, including the following
percentage concentrations of biodiesel:
(A) 5 percent biodiesel.
(B) 10 percent biodiesel.
(C) 20 percent biodiesel.
(D) 30 percent biodiesel.
(E) 100 percent biodiesel.
(c) Report.--Not later than 24 months after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Science and Technology and the Committee on Energy
and Commerce of the House of Representatives, and to the
Committee on Energy and Natural Resources and the Committee on
Environment and Public Works of the Senate, a report that
describes the results of the study under this section,
including any recommendations of the Secretary.
SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS VEHICLES.
(a) In General.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency and the
Secretary of Transportation, shall conduct a study of methods
of increasing the fuel efficiency of vehicles using biogas by
optimizing natural gas vehicle systems that can operate on
biogas, including the advancement of vehicle fuel systems and
the combination of hybrid-electric and plug-in hybrid electric
drive platforms with natural gas vehicle systems using biogas.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources, the Committee on
Environment and Public Works, and the Committee on Commerce,
Science, and Transportation of the Senate, and to the Committee
on Science and Technology and the Committee on Energy and
Commerce of the House of Representatives, a report that
describes the results of the study, including any
recommendations of the Secretary.
SEC. 228. ALGAL BIOMASS.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Science and Technology of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report on the progress of the
research and development that is being conducted on the use of
algae as a feedstock for the production of biofuels.
(b) Contents.--The report shall identify continuing research
and development challenges and any regulatory or other barriers
found by the Secretary that hinder the use of this resource, as
well as recommendations on how to encourage and further its
development as a viable transportation fuel.
SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CENTER.
(a) In General.--The Secretary, in cooperation with the
Secretary of Agriculture, shall establish a biofuels and
biorefinery information center to make available to interested
parties information on--
(1) renewable fuel feedstocks, including the
varieties of fuel capable of being produced from
various feedstocks;
(2) biorefinery processing techniques related to
various renewable fuel feedstocks;
(3) the distribution, blending, storage, and retail
dispensing infrastructure necessary for the transport
and use of renewable fuels;
(4) Federal and State laws and incentives related to
renewable fuel production and use;
(5) renewable fuel research and development
advancements;
(6) renewable fuel development and biorefinery
processes and technologies;
(7) renewable fuel resources, including information
on programs and incentives for renewable fuels;
(8) renewable fuel producers;
(9) renewable fuel users; and
(10) potential renewable fuel users.
(b) Administration.--In administering the biofuels and
biorefinery information center, the Secretary shall--
(1) continually update information provided by the
center;
(2) make information available relating to processes
and technologies for renewable fuel production;
(3) make information available to interested parties
on the process for establishing a biorefinery; and
(4) make information and assistance provided by the
center available through a toll-free telephone number
and website.
(c) Coordination and Nonduplication.--To maximum extent
practicable, the Secretary shall ensure that the activities
under this section are coordinated with, and do not duplicate
the efforts of, centers at other government agencies.
(d) Authorization of Appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
section.
SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.
(a) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means--
(1) an 1890 Institution (as defined in section 2 of
the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7061));
(2) a part B institution (as defined in section 322
of the Higher Education Act of 1965 (20 U.S.C. 1061))
(commonly referred to as ``Historically Black Colleges
and Universities'');
(3) a tribal college or university (as defined in
section 316(b) of the Higher Education Act of 1965 (20
U.S.C. 1059c(b)); or
(4) a Hispanic-serving institution (as defined in
section 502(a) of the Higher Education Act of 1965 (20
U.S.C. 1101a(a)).
(b) Grants.--The Secretary shall make cellulosic ethanol and
biofuels research and development grants to 10 eligible
entities selected by the Secretary to receive a grant under
this section through a peer-reviewed competitive process.
(c) Collaboration.--An eligible entity that is selected to
receive a grant under subsection (b) shall collaborate with 1
of the Bioenergy Research Centers of the Office of Science of
the Department.
(d) Authorization of Appropriations.--There is authorized to
be appropriated to the Secretary to make grants described in
subsection (b) $50,000,000 for fiscal year 2008, to remain
available until expended.
SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION OF
APPROPRIATION.
Section 931 of the Energy Policy Act of 2005 (42 U.S.C.
16231) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``and'' at
the end;
(B) in paragraph (3), by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) $963,000,000 for fiscal year 2010.''; and
(2) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``$251,000,000'' and
inserting ``$377,000,000''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (3)--
(i) by striking ``$274,000,000'' and
inserting ``$398,000,000''; and
(ii) by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) $419,000,000 for fiscal year 2010, of which
$150,000,000 shall be for section 932(d).''.
SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.
(a) In General.--Section 977 of the Energy Policy Act of 2005
(42 U.S.C. 16317) is amended--
(1) in subsection (a)(1), by striking ``and
computational biology'' and inserting ``computational
biology, and environmental science''; and
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``in
sustainable production systems that reduce
greenhouse gas emissions'' after ``hydrogen'';
(B) in paragraph (3), by striking ``and'' at
the end;
(C) by redesignating paragraph (4) as
paragraph (5); and
(D) by inserting after paragraph (3) the
following:
``(4) develop cellulosic and other feedstocks that
are less resource and land intensive and that promote
sustainable use of resources, including soil, water,
energy, forests, and land, and ensure protection of
air, water, and soil quality; and''.
(b) Tools and Evaluation.--Section 307(d) of the Biomass
Research and Development Act of 2000 (7 U.S.C. 8606(d)) is
amended--
(1) in paragraph (3)(E), by striking ``and'' at the
end;
(2) in paragraph (4), by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following:
``(5) the improvement and development of analytical
tools to facilitate the analysis of life-cycle energy
and greenhouse gas emissions, including emissions
related to direct and indirect land use changes,
attributable to all potential biofuel feedstocks and
production processes; and
``(6) the systematic evaluation of the impact of
expanded biofuel production on the environment,
including forest lands, and on the food supply for
humans and animals.''.
(c) Small-Scale Production and Use of Biofuels.--Section
307(e) of the Biomass Research and Development Act of 2000 (7
U.S.C. 8606(e)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(4) to facilitate small-scale production, local,
and on-farm use of biofuels, including the development
of small-scale gasification technologies for production
of biofuel from cellulosic feedstocks.''.
SEC. 233. BIOENERGY RESEARCH CENTERS.
Section 977 of the Energy Policy Act of 2005 (42 U.S.C.
16317) is amended by adding at the end the following:
``(f) Bioenergy Research Centers.--
``(1) Establishment of centers.--In carrying out the
program under subsection (a), the Secretary shall
establish at least 7 bioenergy research centers, which
may be of varying size.
``(2) Geographic distribution.--The Secretary shall
establish at least 1 bioenergy research center in each
Petroleum Administration for Defense District or
Subdistrict of a Petroleum Administration for Defense
District.
``(3) Goals.--The goals of the centers established
under this subsection shall be to accelerate basic
transformational research and development of biofuels,
including biological processes.
``(4) Selection and duration.--
``(A) In general.--A center under this
subsection shall be selected on a competitive
basis for a period of 5 years.
``(B) Reapplication.--After the end of the
period described in subparagraph (A), a grantee
may reapply for selection on a competitive
basis.
``(5) Inclusion.--A center that is in existence on
the date of enactment of this subsection--
``(A) shall be counted towards the
requirement for establishment of at least 7
bioenergy research centers; and
``(B) may continue to receive support for a
period of 5 years beginning on the date of
establishment of the center.''.
SEC. 234. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.
(a) Establishment.--The Secretary shall establish a
competitive grant program, in a geographically diverse manner,
for projects submitted for consideration by institutions of
higher education to conduct research and development of
renewable energy technologies. Each grant made shall not exceed
$2,000,000.
(b) Eligibility.--Priority shall be given to institutions of
higher education with--
(1) established programs of research in renewable
energy;
(2) locations that are low income or outside of an
urbanized area;
(3) a joint venture with an Indian tribe; and
(4) proximity to trees dying of disease or insect
infestation as a source of woody biomass.
(c) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary $25,000,000 for carrying out
this section.
(d) Definitions.--In this section:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning as defined in section 126(c) of the Energy
Policy Act of 2005.
(2) Renewable energy.--The term ``renewable energy''
has the meaning as defined in section 902 of the Energy
Policy Act of 2005.
(3) Urbanized area.--The term ``urbanized area'' has
the mean as defined by the U.S. Bureau of the Census.
Subtitle C--Biofuels Infrastructure
SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS RELATED TO
RENEWABLE FUEL INFRASTRUCTURE.
(a) In General.--Title I of the Petroleum Marketing Practices
Act (15 U.S.C. 2801 et seq.) is amended by adding at the end
the following:
``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF RENEWABLE
FUEL PUMPS.
``(a) Definition.--In this section:
``(1) Renewable fuel.--The term `renewable fuel'
means any fuel--
``(A) at least 85 percent of the volume of
which consists of ethanol; or
``(B) any mixture of biodiesel and diesel or
renewable diesel (as defined in regulations
adopted pursuant to section 211(o) of the Clean
Air Act (40 CFR, Part 80)), determined without
regard to any use of kerosene and containing at
least 20 percent biodiesel or renewable diesel.
``(2) Franchise-related document.--The term
`franchise-related document' means--
``(A) a franchise under this Act; and
``(B) any other contract or directive of a
franchisor relating to terms or conditions of
the sale of fuel by a franchisee.
``(b) Prohibitions.--
``(1) In general.--No franchise-related document
entered into or renewed on or after the date of
enactment of this section shall contain any provision
allowing a franchisor to restrict the franchisee or any
affiliate of the franchisee from--
``(A) installing on the marketing premises of
the franchisee a renewable fuel pump or tank,
except that the franchisee's franchisor may
restrict the installation of a tank on leased
marketing premises of such franchisor;
``(B) converting an existing tank or pump on
the marketing premises of the franchisee for
renewable fuel use, so long as such tank or
pump and the piping connecting them are either
warranted by the manufacturer or certified by a
recognized standards setting organization to be
suitable for use with such renewable fuel;
``(C) advertising (including through the use
of signage) the sale of any renewable fuel;
``(D) selling renewable fuel in any specified
area on the marketing premises of the
franchisee (including any area in which a name
or logo of a franchisor or any other entity
appears);
``(E) purchasing renewable fuel from sources
other than the franchisor if the franchisor
does not offer its own renewable fuel for sale
by the franchisee;
``(F) listing renewable fuel availability or
prices, including on service station signs,
fuel dispensers, or light poles; or
``(G) allowing for payment of renewable fuel
with a credit card,
so long as such activities described in subparagraphs
(A) through (G) do not constitute mislabeling,
misbranding, willful adulteration, or other trademark
violations by the franchisee.
``(2) Effect of provision.--Nothing in this section
shall be construed to preclude a franchisor from
requiring the franchisee to obtain reasonable
indemnification and insurance policies.
``(c) Exception to 3-Grade Requirement.--No franchise-related
document that requires that 3 grades of gasoline be sold by the
applicable franchisee shall prevent the franchisee from selling
an renewable fuel in lieu of 1, and only 1, grade of
gasoline.''.
(b) Enforcement.--Section 105 of the Petroleum Marketing
Practices Act (15 U.S.C. 2805) is amended by striking ``102 or
103'' each place it appears and inserting ``102, 103, or 107''.
(c) Conforming Amendments.--
(1) In general.--Section 101(13) of the Petroleum
Marketing Practices Act (15 U.S.C. 2801(13)) is amended
by aligning the margin of subparagraph (C) with
subparagraph (B).
(2) Table of contents.--The table of contents of the
Petroleum Marketing Practices Act (15 U.S.C. 2801 note)
is amended--
(A) by inserting after the item relating to
section 106 the following:
``Sec. 107. Prohibition on restriction of installation of renewable fuel
pumps.''; and
(B) by striking the item relating to section
202 and inserting the following:
``Sec. 202. Automotive fuel rating testing and disclosure
requirements.''.
SEC. 242. RENEWABLE FUEL DISPENSER REQUIREMENTS.
(a) Market Penetration Reports.--The Secretary, in
consultation with the Secretary of Transportation, shall
determine and report to Congress annually on the market
penetration for flexible-fuel vehicles in use within geographic
regions to be established by the Secretary.
(b) Dispenser Feasibility Study.--Not later than 24 months
after the date of enactment of this Act, the Secretary, in
consultation with the Department of Transportation, shall
report to the Congress on the feasibility of requiring motor
fuel retailers to install E-85 compatible dispensers and
related systems at retail fuel facilities in regions where
flexible-fuel vehicle market penetration has reached 15 percent
of motor vehicles. In conducting such study, the Secretary
shall consider and report on the following factors:
(1) The commercial availability of E-85 fuel and the
number of competing E-85 wholesale suppliers in a given
region.
(2) The level of financial assistance provided on an
annual basis by the Federal Government, State
governments, and nonprofit entities for the
installation of E-85 compatible infrastructure.
(3) The number of retailers whose retail locations
are unable to support more than 2 underground storage
tank dispensers.
(4) The expense incurred by retailers in the
installation and sale of E-85 compatible dispensers and
related systems and any potential effects on the price
of motor vehicle fuel.
SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.
(a) In General.--The Secretary, in coordination with the
Secretary of Transportation, shall conduct a study of the
feasibility of the construction of pipelines dedicated to the
transportation of ethanol.
(b) Factors for Consideration.--In conducting the study under
subsection (a), the Secretary shall take into consideration--
(1) the quantity of ethanol production that would
make dedicated pipelines economically viable;
(2) existing or potential barriers to the
construction of pipelines dedicated to the
transportation of ethanol, including technical, siting,
financing, and regulatory barriers;
(3) market risk (including throughput risk) and means
of mitigating the risk;
(4) regulatory, financing, and siting options that
would mitigate the risk and help ensure the
construction of 1 or more pipelines dedicated to the
transportation of ethanol;
(5) financial incentives that may be necessary for
the construction of pipelines dedicated to the
transportation of ethanol, including the return on
equity that sponsors of the initial dedicated ethanol
pipelines will require to invest in the pipelines;
(6) technical factors that may compromise the safe
transportation of ethanol in pipelines, including
identification of remedial and preventive measures to
ensure pipeline integrity; and
(7) such other factors as the Secretary considers to
be appropriate.
(c) Report.--Not later than 15 months after the date of
enactment of this Act, the Secretary shall submit to Congress a
report describing the results of the study conducted under this
section.
(d) Authorization of Appropriations.--There is authorized to
be appropriated to the Secretary to carry out this section
$1,000,000 for each of fiscal years 2008 and 2009, to remain
available until expended.
SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS.
(a) Definition of Renewable Fuel Blend.--For purposes of this
section, the term ``renewable fuel blend'' means gasoline blend
that contain not less than 11 percent, and not more than 85
percent, renewable fuel or diesel fuel that contains at least
10 percent renewable fuel.
(b) Infrastructure Development Grants.--
(1) Establishment.--The Secretary shall establish a
program for making grants for providing assistance to
retail and wholesale motor fuel dealers or other
entities for the installation, replacement, or
conversion of motor fuel storage and dispensing
infrastructure to be used exclusively to store and
dispense renewable fuel blends.
(2) Selection criteria.--Not later than 12 months
after the date of enactment of this Act, the Secretary
shall establish criteria for evaluating applications
for grants under this subsection that will maximize the
availability and use of renewable fuel blends, and that
will ensure that renewable fuel blends are available
across the country. Such criteria shall provide for--
(A) consideration of the public demand for
each renewable fuel blend in a particular
geographic area based on State registration
records showing the number of flexible-fuel
vehicles;
(B) consideration of the opportunity to
create or expand corridors of renewable fuel
blend stations along interstate or State
highways;
(C) consideration of the experience of each
applicant with previous, similar projects;
(D) consideration of population, number of
flexible-fuel vehicles, number of retail fuel
outlets, and saturation of flexible-fuel
vehicles; and
(E) priority consideration to applications
that--
(i) are most likely to maximize
displacement of petroleum consumption,
measured as a total quantity and a
percentage;
(ii) are best able to incorporate
existing infrastructure while
maximizing, to the extent practicable,
the use of renewable fuel blends; and
(iii) demonstrate the greatest
commitment on the part of the applicant
to ensure funding for the proposed
project and the greatest likelihood
that the project will be maintained or
expanded after Federal assistance under
this subsection is completed.
(3) Limitations.--Assistance provided under this
subsection shall not exceed--
(A) 33 percent of the estimated cost of the
installation, replacement, or conversion of
motor fuel storage and dispensing
infrastructure; or
(B) $180,000 for a combination of equipment
at any one retail outlet location.
(4) Operation of renewable fuel blend stations.--The
Secretary shall establish rules that set forth
requirements for grant recipients under this section
that include providing to the public the renewable fuel
blends, establishing a marketing plan that informs
consumers of the price and availability of the
renewable fuel blends, clearly labeling the dispensers
and related equipment, and providing periodic reports
on the status of the renewable fuel blend sales, the
type and amount of the renewable fuel blends dispensed
at each location, and the average price of such fuel.
(5) Notification requirements.--Not later than the
date on which each renewable fuel blend station begins
to offer renewable fuel blends to the public, the grant
recipient that used grant funds to construct or upgrade
such station shall notify the Secretary of such
opening. The Secretary shall add each new renewable
fuel blend station to the renewable fuel blend station
locator on its Website when it receives notification
under this subsection.
(6) Double counting.--No person that receives a
credit under section 30C of the Internal Revenue Code
of 1986 may receive assistance under this section.
(7) Reservation of funds.--The Secretary shall
reserve funds appropriated for the renewable fuel
blends infrastructure development grant program for
technical and marketing assistance described in
subsection (c).
(c) Retail Technical and Marketing Assistance.--The Secretary
shall enter into contracts with entities with demonstrated
experience in assisting retail fueling stations in installing
refueling systems and marketing renewable fuel blends
nationally, for the provision of technical and marketing
assistance to recipients of grants under this section. Such
assistance shall include--
(1) technical advice for compliance with applicable
Federal and State environmental requirements;
(2) help in identifying supply sources and securing
long-term contracts; and
(3) provision of public outreach, education, and
labeling materials.
(d) Refueling Infrastructure Corridors.--
(1) In general.--The Secretary shall establish a
competitive grant pilot program (referred to in this
subsection as the ``pilot program''), to be
administered through the Vehicle Technology Deployment
Program of the Department, to provide not more than 10
geographically-dispersed project grants to State
governments, Indian tribal governments, local
governments, metropolitan transportation authorities,
or partnerships of those entities to carry out 1 or
more projects for the purposes described in paragraph
(2).
(2) Grant purposes.--A grant under this subsection
shall be used for the establishment of refueling
infrastructure corridors, as designated by the
Secretary, for renewable fuel blends, including--
(A) installation of infrastructure and
equipment necessary to ensure adequate
distribution of renewable fuel blends within
the corridor;
(B) installation of infrastructure and
equipment necessary to directly support
vehicles powered by renewable fuel blends; and
(C) operation and maintenance of
infrastructure and equipment installed as part
of a project funded by the grant.
(3) Applications.--
(A) Requirements.--
(i) In general.--Subject to clause
(ii), not later than 90 days after the
date of enactment of this Act, the
Secretary shall issue requirements for
use in applying for grants under the
pilot program.
(ii) Minimum requirements.--At a
minimum, the Secretary shall require
that an application for a grant under
this subsection--
(I) be submitted by--
(aa) the head of a
State, tribal, or local
government or a
metropolitan
transportation
authority, or any
combination of those
entities; and
(bb) a registered
participant in the
Vehicle Technology
Deployment Program of
the Department; and
(II) include--
(aa) a description of
the project proposed in
the application,
including the ways in
which the project meets
the requirements of
this subsection;
(bb) an estimate of
the degree of use of
the project, including
the estimated size of
fleet of vehicles
operated with renewable
fuels blend available
within the geographic
region of the corridor,
measured as a total
quantity and a
percentage;
(cc) an estimate of
the potential petroleum
displaced as a result
of the project
(measured as a total
quantity and a
percentage), and a plan
to collect and
disseminate petroleum
displacement and other
relevant data relating
to the project to be
funded under the grant,
over the expected life
of the project;
(dd) a description of
the means by which the
project will be
sustainable without
Federal assistance
after the completion of
the term of the grant;
(ee) a complete
description of the
costs of the project,
including acquisition,
construction,
operation, and
maintenance costs over
the expected life of
the project; and
(ff) a description of
which costs of the
project will be
supported by Federal
assistance under this
subsection.
(B) Partners.--An applicant under
subparagraph (A) may carry out a project under
the pilot program in partnership with public
and private entities.
(4) Selection criteria.--In evaluating applications
under the pilot program, the Secretary shall--
(A) consider the experience of each applicant
with previous, similar projects; and
(B) give priority consideration to
applications that--
(i) are most likely to maximize
displacement of petroleum consumption,
measured as a total quantity and a
percentage;
(ii) are best able to incorporate
existing infrastructure while
maximizing, to the extent practicable,
the use of advanced biofuels;
(iii) demonstrate the greatest
commitment on the part of the applicant
to ensure funding for the proposed
project and the greatest likelihood
that the project will be maintained or
expanded after Federal assistance under
this subsection is completed;
(iv) represent a partnership of
public and private entities; and
(v) exceed the minimum requirements
of paragraph (3)(A)(ii).
(5) Pilot project requirements.--
(A) Maximum amount.--The Secretary shall
provide not more than $20,000,000 in Federal
assistance under the pilot program to any
applicant.
(B) Cost sharing.--The non-Federal share of
the cost of any activity relating to renewable
fuel blend infrastructure development carried
out using funds from a grant under this
subsection shall be not less than 20 percent.
(C) Maximum period of grants.--The Secretary
shall not provide funds to any applicant under
the pilot program for more than 2 years.
(D) Deployment and distribution.--The
Secretary shall seek, to the maximum extent
practicable, to ensure a broad geographic
distribution of project sites funded by grants
under this subsection.
(E) Transfer of information and knowledge.--
The Secretary shall establish mechanisms to
ensure that the information and knowledge
gained by participants in the pilot program are
transferred among the pilot program
participants and to other interested parties,
including other applicants that submitted
applications.
(6) Schedule.--
(A) Initial grants.--
(i) In general.--Not later than 90
days after the date of enactment of
this Act, the Secretary shall publish
in the Federal Register, Commerce
Business Daily, and such other
publications as the Secretary considers
to be appropriate, a notice and request
for applications to carry out projects
under the pilot program.
(ii) Deadline.--An application
described in clause (i) shall be
submitted to the Secretary by not later
than 180 days after the date of
publication of the notice under that
clause.
(iii) Initial selection.--Not later
than 90 days after the date by which
applications for grants are due under
clause (ii), the Secretary shall select
by competitive, peer-reviewed proposal
up to 5 applications for projects to be
awarded a grant under the pilot
program.
(B) Additional grants.--
(i) In general.--Not later than 2
years after the date of enactment of
this Act, the Secretary shall publish
in the Federal Register, Commerce
Business Daily, and such other
publications as the Secretary considers
to be appropriate, a notice and request
for additional applications to carry
out projects under the pilot program
that incorporate the information and
knowledge obtained through the
implementation of the first round of
projects authorized under the pilot
program.
(ii) Deadline.--An application
described in clause (i) shall be
submitted to the Secretary by not later
than 180 days after the date of
publication of the notice under that
clause.
(iii) Initial selection.--Not later
than 90 days after the date by which
applications for grants are due under
clause (ii), the Secretary shall select
by competitive, peer-reviewed proposal
such additional applications for
projects to be awarded a grant under
the pilot program as the Secretary
determines to be appropriate.
(7) Reports to congress.--
(A) Initial report.--Not later than 60 days
after the date on which grants are awarded
under this subsection, the Secretary shall
submit to Congress a report containing--
(i) an identification of the grant
recipients and a description of the
projects to be funded under the pilot
program;
(ii) an identification of other
applicants that submitted applications
for the pilot program but to which
funding was not provided; and
(iii) a description of the mechanisms
used by the Secretary to ensure that
the information and knowledge gained by
participants in the pilot program are
transferred among the pilot program
participants and to other interested
parties, including other applicants
that submitted applications.
(B) Evaluation.--Not later than 2 years after
the date of enactment of this Act, and annually
thereafter until the termination of the pilot
program, the Secretary shall submit to Congress
a report containing an evaluation of the
effectiveness of the pilot program, including
an assessment of the petroleum displacement and
benefits to the environment derived from the
projects included in the pilot program.
(e) Restriction.--No grant shall be provided under subsection
(b) or (c) to a large, vertically integrated oil company.
(f) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for carrying out this section
$200,000,000 for each of the fiscal years 2008 through 2014.
SEC. 245. STUDY OF THE ADEQUACY OF TRANSPORTATION OF DOMESTICALLY-
PRODUCED RENEWABLE FUEL BY RAILROADS AND OTHER
MODES OF TRANSPORTATION.
(a) Study.--
(1) In general.--The Secretary, in coordination with
the Secretary of Transportation, shall jointly conduct
a study of the adequacy of transportation of
domestically-produced renewable fuels by railroad and
other modes of transportation as designated by the
Secretaries.
(2) Components.--In conducting the study under
paragraph (1), the Secretaries shall--
(A) consider the adequacy of existing
railroad and other transportation and
distribution infrastructure, equipment, service
and capacity to move the necessary quantities
of domestically-produced renewable fuel within
the timeframes;
(B)(i) consider the projected costs of moving
the domestically-produced renewable fuel by
railroad and other modes transportation; and
(ii) consider the impact of the projected
costs on the marketability of the domestically-
produced renewable fuel;
(C) identify current and potential
impediments to the reliable transportation and
distribution of adequate supplies of
domestically-produced renewable fuel at
reasonable prices, including practices
currently utilized by domestic producers,
shippers, and receivers of renewable fuels;
(D) consider whether adequate competition
exists within and between modes of
transportation for the transportation and
distribution of domestically-produced renewable
fuel and, whether inadequate competition leads
to an unfair price for the transportation and
distribution of domestically-produced renewable
fuel or unacceptable service for transportation
of domestically-produced renewable fuel;
(E) consider whether Federal agencies have
adequate legal authority to address instances
of inadequate competition when inadequate
competition is found to prevent domestic
producers for renewable fuels from obtaining a
fair and reasonable transportation price or
acceptable service for the transportation and
distribution of domestically-produced renewable
fuels;
(F) consider whether Federal agencies have
adequate legal authority to address railroad
and transportation service problems that may be
resulting in inadequate supplies of
domestically-produced renewable fuel in any
area of the United States;
(G) consider what transportation
infrastructure capital expenditures may be
necessary to ensure the reliable transportation
of adequate supplies of domestically-produced
renewable fuel at reasonable prices within the
United States and which public and private
entities should be responsible for making such
expenditures; and
(H) provide recommendations on ways to
facilitate the reliable transportation of
adequate supplies of domestically-produced
renewable fuel at reasonable prices.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretaries shall jointly submit to
the Committee on Commerce, Science and Transportation, the
Committee on Energy and Natural Resources, and the Committee on
Environment and Public Works of the Senate and the Committee on
Transportation and Infrastructure and the Committee on Energy
and Commerce of the House of Representatives a report that
describes the results of the study conducted under subsection
(a).
SEC. 246. FEDERAL FLEET FUELING CENTERS.
(a) In General.--Not later than January 1, 2010, the head of
each Federal agency shall install at least 1 renewable fuel
pump at each Federal fleet fueling center in the United States
under the jurisdiction of the head of the Federal agency.
(b) Report.--Not later than October 31 of the first calendar
year beginning after the date of the enactment of this Act, and
each October 31 thereafter, the President shall submit to
Congress a report that describes the progress toward complying
with subsection (a), including identifying--
(1) the number of Federal fleet fueling centers that
contain at least 1 renewable fuel pump; and
(2) the number of Federal fleet fueling centers that
do not contain any renewable fuel pumps.
(c) Department of Defense Facility.--This section shall not
apply to a Department of Defense fueling center with a fuel
turnover rate of less than 100,000 gallons of fuel per year.
(d) Authorization of Appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
section.
SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended
by redesignating subsection (s) as subsection (t),
redesignating subsection (r) (relating to conversion assistance
for cellulosic biomass, waste-derived ethanol, approved
renewable fuels) as subsection (s) and by adding the following
new subsection at the end thereof:
``(u) Standard Specifications for Biodiesel.--(1) Unless the
American Society for Testing and Materials has adopted a
standard for diesel fuel containing 20 percent biodiesel
(commonly known as `B20') within 1 year after the date of
enactment of this subsection, the Administrator shall initiate
a rulemaking to establish a uniform per gallon fuel standard
for such fuel and designate an identification number so that
vehicle manufacturers are able to design engines to use fuel
meeting such standard.
``(2) Unless the American Society for Testing and Materials
has adopted a standard for diesel fuel containing 5 percent
biodiesel (commonly known as `B5') within 1 year after the date
of enactment of this subsection, the Administrator shall
initiate a rulemaking to establish a uniform per gallon fuel
standard for such fuel and designate an identification so that
vehicle manufacturers are able to design engines to use fuel
meeting such standard.
``(3) Whenever the Administrator is required to initiate a
rulemaking under paragraph (1) or (2), the Administrator shall
promulgate a final rule within 18 months after the date of the
enactment of this subsection.
``(4) Not later than 180 days after the enactment of this
subsection, the Administrator shall establish an annual
inspection and enforcement program to ensure that diesel fuel
containing biodiesel sold or distributed in interstate commerce
meets the standards established under regulations under this
section, including testing and certification for compliance
with applicable standards of the American Society for Testing
and Materials. There are authorized to be appropriated to carry
out the inspection and enforcement program under this paragraph
$3,000,000 for each of fiscal years 2008 through 2010.
``(5) For purposes of this subsection, the term `biodiesel'
has the meaning provided by section 312(f) of Energy Policy Act
of 1992 (42 U.S.C. 13220(f)).''.
SEC. 248. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS INFRASTRUCTURE.
(a) In General.--The Secretary, in coordination with the
Secretary of Transportation and in consultation with the
Administrator of the Environmental Protection Agency, shall
carry out a program of research, development, and demonstration
relating to existing transportation fuel distribution
infrastructure and new alternative distribution infrastructure.
(b) Focus.--The program described in subsection (a) shall
focus on the physical and chemical properties of biofuels and
efforts to prevent or mitigate against adverse impacts of those
properties in the areas of--
(1) corrosion of metal, plastic, rubber, cork,
fiberglass, glues, or any other material used in pipes
and storage tanks;
(2) dissolving of storage tank sediments;
(3) clogging of filters;
(4) contamination from water or other adulterants or
pollutants;
(5) poor flow properties related to low temperatures;
(6) oxidative and thermal instability in long-term
storage and uses;
(7) microbial contamination;
(8) problems associated with electrical conductivity;
and
(9) such other areas as the Secretary considers
appropriate.
Subtitle D--Environmental Safeguards
SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES.
Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f)) is
amended to read as follows:
``(4) The Administrator, upon application of any manufacturer
of any fuel or fuel additive, may waive the prohibitions
established under paragraph (1) or (3) of this subsection or
the limitation specified in paragraph (2) of this subsection,
if he determines that the applicant has established that such
fuel or fuel additive or a specified concentration thereof, and
the emission products of such fuel or fuel additive or
specified concentration thereof, will not cause or contribute
to a failure of any emission control device or system (over the
useful life of the motor vehicle, motor vehicle engine, nonroad
engine or nonroad vehicle in which such device or system is
used) to achieve compliance by the vehicle or engine with the
emission standards with respect to which it has been certified
pursuant to sections 206 and 213(a). The Administrator shall
take final action to grant or deny an application submitted
under this paragraph, after public notice and comment, within
270 days of the receipt of such an application.''.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING
Subtitle A--Appliance Energy Efficiency
SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.
(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) is amended--
(1) in paragraph (36)--
(A) by striking ``(36) The'' and inserting
the following:
``(36) External power supply.--
``(A) In general.--The''; and
(B) by adding at the end the following:
``(B) Active mode.--The term `active mode'
means the mode of operation when an external
power supply is connected to the main
electricity supply and the output is connected
to a load.
``(C) Class a external power supply.--
``(i) In general.--The term `class A
external power supply' means a device
that--
``(I) is designed to convert
line voltage AC input into
lower voltage AC or DC output;
``(II) is able to convert to
only 1 AC or DC output voltage
at a time;
``(III) is sold with, or
intended to be used with, a
separate end-use product that
constitutes the primary load;
``(IV) is contained in a
separate physical enclosure
from the end-use product;
``(V) is connected to the
end-use product via a removable
or hard-wired male/female
electrical connection, cable,
cord, or other wiring; and
``(VI) has nameplate output
power that is less than or
equal to 250 watts.
``(ii) Exclusions.--The term `class A
external power supply' does not include
any device that--
``(I) requires Federal Food
and Drug Administration listing
and approval as a medical
device in accordance with
section 513 of the Federal
Food, Drug, and Cosmetic Act
(21 U.S.C. 360c); or
``(II) powers the charger of
a detachable battery pack or
charges the battery of a
product that is fully or
primarily motor operated.
``(D) No-load mode.--The term `no-load mode'
means the mode of operation when an external
power supply is connected to the main
electricity supply and the output is not
connected to a load.''; and
(2) by adding at the end the following:
``(52) Detachable battery.--The term `detachable
battery' means a battery that is--
``(A) contained in a separate enclosure from
the product; and
``(B) intended to be removed or disconnected
from the product for recharging.''.
(b) Test Procedures.--Section 323(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6293(b)) is amended by adding at
the end the following:
``(17) Class a external power supplies.--Test
procedures for class A external power supplies shall be
based on the `Test Method for Calculating the Energy
Efficiency of Single-Voltage External AC-DC and AC-AC
Power Supplies' published by the Environmental
Protection Agency on August 11, 2004, except that the
test voltage specified in section 4(d) of that test
method shall be only 115 volts, 60 Hz.''.
(c) Efficiency Standards for Class A External Power
Supplies.--Section 325(u) of the Energy Policy and Conservation
Act (42 U.S.C. 6295(u)) is amended by adding at the end the
following:
``(6) Efficiency standards for class a external power
supplies.--
``(A) In general.--Subject to subparagraphs
(B) through (D), a class A external power
supply manufactured on or after the later of
July 1, 2008, or the date of enactment of this
paragraph shall meet the following standards:
----------------------------------------------------------------------------------------------------------------
``Active Mode
-----------------------------------------------------------------------------------------------------------------
Required Efficiency (decimal equivalent of a
``Nameplate Output percentage)
----------------------------------------------------------------------------------------------------------------
Less than 1 watt 0.5 times the Nameplate Output
----------------------------------------------------------------------------------------------------------------
From 1 watt to not more than 51 watts The sum of 0.09 times the Natural Logarithm
of the Nameplate Output and 0.5
----------------------------------------------------------------------------------------------------------------
Greater than 51 watts 0.85
----------------------------------------------------------------------------------------------------------------
``No-Load Mode
``Nameplate Output Maximum Consumption
----------------------------------------------------------------------------------------------------------------
Not more than 250 watts 0.5 watts
----------------------------------------------------------------------------------------------------------------
``(B) Noncovered supplies.--A class A
external power supply shall not be subject to
subparagraph (A) if the class A external power
supply is--
``(i) manufactured during the period
beginning on July 1, 2008, and ending
on June 30, 2015; and
``(ii) made available by the
manufacturer as a service part or a
spare part for an end-use product--
``(I) that constitutes the
primary load; and
``(II) was manufactured
before July 1, 2008.
``(C) Marking.--Any class A external power
supply manufactured on or after the later of
July 1, 2008 or the date of enactment of this
paragraph shall be clearly and permanently
marked in accordance with the External Power
Supply International Efficiency Marking
Protocol, as referenced in the `Energy Star
Program Requirements for Single Voltage
External AC-DC and AC-AC Power Supplies,
version 1.1' published by the Environmental
Protection Agency.
``(D) Amendment of standards.--
``(i) Final rule by july 1, 2011.--
``(I) In general.--Not later
than July 1, 2011, the
Secretary shall publish a final
rule to determine whether the
standards established under
subparagraph (A) should be
amended.
``(II) Administration.--The
final rule shall--
``(aa) contain any
amended standards; and
``(bb) apply to
products manufactured
on or after July 1,
2013.
``(ii) Final rule by july 1, 2015.--
``(I) In general.--Not later
than July 1, 2015 the Secretary
shall publish a final rule to
determine whether the standards
then in effect should be
amended.
``(II) Administration.--The
final rule shall--
``(aa) contain any
amended standards; and
``(bb) apply to
products manufactured
on or after July 1,
2017.
``(7) End-use products.--An energy conservation
standard for external power supplies shall not
constitute an energy conservation standard for the
separate end-use product to which the external power
supplies is connected.''.
SEC. 302. UPDATING APPLIANCE TEST PROCEDURES.
(a) Consumer Appliances.--Section 323(b)(1) of the Energy
Policy and Conservation Act (42 U.S.C. 6293(b)(1)) is amended
by striking ``(1)'' and all that follows through the end of the
paragraph and inserting the following:
``(1) Test procedures.--
``(A) Amendment.--At least once every 7
years, the Secretary shall review test
procedures for all covered products and--
``(i) amend test procedures with
respect to any covered product, if the
Secretary determines that amended test
procedures would more accurately or
fully comply with the requirements of
paragraph (3); or
``(ii) publish notice in the Federal
Register of any determination not to
amend a test procedure.''.
(b) Industrial Equipment.--Section 343(a) of the Energy
Policy and Conservation Act (42 U.S.C. 6313(a)) is amended by
striking ``(a)'' and all that follows through the end of
paragraph (1) and inserting the following:
``(a) Prescription by Secretary; Requirements.--
``(1) Test procedures.--
``(A) Amendment.--At least once every 7
years, the Secretary shall conduct an
evaluation of each class of covered equipment
and--
``(i) if the Secretary determines
that amended test procedures would more
accurately or fully comply with the
requirements of paragraphs (2) and (3),
shall prescribe test procedures for the
class in accordance with this section;
or
``(ii) shall publish notice in the
Federal Register of any determination
not to amend a test procedure.''.
SEC. 303. RESIDENTIAL BOILERS.
Section 325(f) of the Energy Policy and Conservation Act (42
U.S.C. 6295(f)) is amended--
(1) in the subsection heading, by inserting ``and
Boilers'' after ``Furnaces'';
(2) by redesignating paragraph (3) as paragraph (4);
and
(3) by inserting after paragraph (2) the following:
``(3) Boilers.--
``(A) In general.--Subject to subparagraphs
(B) and (C), boilers manufactured on or after
September 1, 2012, shall meet the following
requirements:
----------------------------------------------------------------------------------------------------------------
Minimum Annual Fuel Utilization
Boiler Type Efficiency Design Requirements
----------------------------------------------------------------------------------------------------------------
Gas Hot Water......................... 82% No Constant Burning Pilot,
Automatic Means for Adjusting
Water Temperature
----------------------------------------------------------------------------------------------------------------
Gas Steam............................ 80% No Constant Burning Pilot
----------------------------------------------------------------------------------------------------------------
Oil Hot Water......................... 84% Automatic Means for Adjusting
Temperature
----------------------------------------------------------------------------------------------------------------
Oil Steam............................ 82% None
----------------------------------------------------------------------------------------------------------------
Electric Hot Water.................... None Automatic Means for Adjusting
Temperature
----------------------------------------------------------------------------------------------------------------
Electric Steam........................ None None
----------------------------------------------------------------------------------------------------------------
``(B) Automatic means for adjusting water
temperature.--
``(i) In general.--The manufacturer
shall equip each gas, oil, and electric
hot water boiler (other than a boiler
equipped with a tankless domestic water
heating coil) with automatic means for
adjusting the temperature of the water
supplied by the boiler to ensure that
an incremental change in inferred heat
load produces a corresponding
incremental change in the temperature
of water supplied.
``(ii) Single input rate.--For a
boiler that fires at 1 input rate, the
requirements of this subparagraph may
be satisfied by providing an automatic
means that allows the burner or heating
element to fire only when the means has
determined that the inferred heat load
cannot be met by the residual heat of
the water in the system.
``(iii) No inferred heat load.--When
there is no inferred heat load with
respect to a hot water boiler, the
automatic means described in clause (i)
and (ii) shall limit the temperature of
the water in the boiler to not more
than 140 degrees Fahrenheit.
``(iv) Operation.--A boiler described
in clause (i) or (ii) shall be operable
only when the automatic means described
in clauses (i), (ii), and (iii) is
installed.
``(C) Exception.--A boiler that is
manufactured to operate without any need for
electricity or any electric connection,
electric gauges, electric pumps, electric
wires, or electric devices shall not be
required to meet the requirements of this
paragraph.''.
SEC. 304. FURNACE FAN STANDARD PROCESS.
Paragraph (4)(D) of section 325(f) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(f)) (as redesignated by
section 303(4)) is amended by striking ``the Secretary may''
and inserting ``not later than December 31, 2013, the Secretary
shall''.
SEC. 305. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND CLARIFYING
STATE AUTHORITY.
(a) Consumer Appliances.--Section 325 of the Energy Policy
and Conservation Act (42 U.S.C. 6295) is amended by striking
subsection (m) and inserting the following:
``(m) Amendment of Standards.--
``(1) In general.--Not later than 6 years after
issuance of any final rule establishing or amending a
standard, as required for a product under this part,
the Secretary shall publish--
``(A) a notice of the determination of the
Secretary that standards for the product do not
need to be amended, based on the criteria
established under subsection (n)(2); or
``(B) a notice of proposed rulemaking
including new proposed standards based on the
criteria established under subsection (o) and
the procedures established under subsection
(p).
``(2) Notice.--If the Secretary publishes a notice
under paragraph (1), the Secretary shall--
``(A) publish a notice stating that the
analysis of the Department is publicly
available; and
``(B) provide an opportunity for written
comment.
``(3) Amendment of standard; new determination.--
``(A) Amendment of standard.--Not later than
2 years after a notice is issued under
paragraph (1)(B), the Secretary shall publish a
final rule amending the standard for the
product.
``(B) New determination.--Not later than 3
years after a determination under paragraph
(1)(A), the Secretary shall make a new
determination and publication under
subparagraph (A) or (B) of paragraph (1).
``(4) Application to products.--
``(A) In general.--Except as provided in
subparagraph (B), an amendment prescribed under
this subsection shall apply to--
``(i) with respect to refrigerators,
refrigerator-freezers, freezers, room
air conditioners, dishwashers, clothes
washers, clothes dryers, fluorescent
lamp ballasts, and kitchen ranges and
ovens, such a product that is
manufactured after the date that is 3
years after publication of the final
rule establishing an applicable
standard; and
``(ii) with respect to central air
conditioners, heat pumps, water
heaters, pool heaters, direct heating
equipment, and furnaces, such a product
that is manufactured after the date
that is 5 years after publication of
the final rule establishing an
applicable standard.
``(B) Other new standards.--A manufacturer
shall not be required to apply new standards to
a product with respect to which other new
standards have been required during the prior
6-year period.
``(5) Reports.--The Secretary shall promptly submit
to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate--
``(A) a progress report every 180 days on
compliance with this section, including a
specific plan to remedy any failures to comply
with deadlines for action established under
this section; and
``(B) all required reports to the Court or to
any party to the Consent Decree in State of New
York v Bodman, Consolidated Civil Actions No.05
Civ. 7807 and No.05 Civ. 7808.''.
(b) Industrial Equipment.--Section 342(a)(6) of the Energy
Policy and Conservation Act (42 U.S.C. 6313(a)(6)) is amended--
(1) by redesignating subparagraph (C) as subparagraph
(D); and
(2) by striking ``(6)(A)(i)'' and all that follows
through the end of subparagraph (B) and inserting the
following:
``(6) Amended energy efficiency standards.--
``(A) In general.--
``(i) Analysis of potential energy
savings.--If ASHRAE/IES Standard 90.1
is amended with respect to any small
commercial package air conditioning and
heating equipment, large commercial
package air conditioning and heating
equipment, very large commercial
package air conditioning and heating
equipment, packaged terminal air
conditioners, packaged terminal heat
pumps, warm-air furnaces, packaged
boilers, storage water heaters,
instantaneous water heaters, or unfired
hot water storage tanks, not later than
180 days after the amendment of the
standard, the Secretary shall publish
in the Federal Register for public
comment an analysis of the energy
savings potential of amended energy
efficiency standards.
``(ii) Amended uniform national
standard for products.--
``(I) In general.--Except as
provided in subclause (II), not
later than 18 months after the
date of publication of the
amendment to the ASHRAE/IES
Standard 90.1 for a product
described in clause (i), the
Secretary shall establish an
amended uniform national
standard for the product at the
minimum level specified in the
amended ASHRAE/IES Standard
90.1.
``(II) More stringent
standard.--Subclause (I) shall
not apply if the Secretary
determines, by rule published
in the Federal Register, and
supported by clear and
convincing evidence, that
adoption of a uniform national
standard more stringent than
the amended ASHRAE/IES Standard
90.1 for the product would
result in significant
additional conservation of
energy and is technologically
feasible and economically
justified.
``(B) Rule.--If the Secretary makes a
determination described in clause (ii)(II) for
a product described in clause (i), not later
than 30 months after the date of publication of
the amendment to the ASHRAE/IES Standard 90.1
for the product, the Secretary shall issue the
rule establishing the amended standard.
``(C) Amendment of standard.--
``(i) In general.--Not later than 6
years after issuance of any final rule
establishing or amending a standard, as
required for a product under this part,
the Secretary shall publish--
``(I) a notice of the
determination of the Secretary
that standards for the product
do not need to be amended,
based on the criteria
established under subparagraph
(A); or
``(II) a notice of proposed
rulemaking including new
proposed standards based on the
criteria and procedures
established under subparagraph
(B).
``(ii) Notice.--If the Secretary
publishes a notice under clause (i),
the Secretary shall--
``(I) publish a notice
stating that the analysis of
the Department is publicly
available; and
``(II) provide an opportunity
for written comment.
``(iii) Amendment of standard; new
determination.--
``(I) Amendment of
standard.--Not later than 2
years after a notice is issued
under clause (i)(II), the
Secretary shall publish a final
rule amending the standard for
the product.
``(II) New determination.--
Not later than 3 years after a
determination under clause
(i)(I), the Secretary shall
make a new determination and
publication under subclause (I)
or (II) of clause (i).
``(iv) Application to products.--An
amendment prescribed under this
subsection shall apply to products
manufactured after a date that is the
later of--
``(I) the date that is 3
years after publication of the
final rule establishing a new
standard; or
``(II) the date that is 6
years after the effective date
of the current standard for a
covered product.
``(v) Reports.--The Secretary shall
promptly submit to the Committee on
Energy and Commerce of the House of
Representatives and the Committee on
Energy and Natural Resources of the
Senate a progress report every 180 days
on compliance with this subparagraph,
including a specific plan to remedy any
failures to comply with deadlines for
action established under this
subparagraph.''.
SEC. 306. REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR CONDITIONERS,
AND HEAT PUMPS.
(a) In General.--Section 325(o) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(o)) is amended by adding at
the end the following:
``(6) Regional standards for furnaces, central air
conditioners, and heat pumps.--
``(A) In general.--In any rulemaking to
establish a new or amended standard, the
Secretary may consider the establishment of
separate standards by geographic region for
furnaces (except boilers), central air
conditioners, and heat pumps.
``(B) National and regional standards.--
``(i) National standard.--If the
Secretary establishes a regional
standard for a product, the Secretary
shall establish a base national
standard for the product.
``(ii) Regional standards.--If the
Secretary establishes a regional
standard for a product, the Secretary
may establish more restrictive
standards for the product by geographic
region as follows:
``(I) For furnaces, the
Secretary may establish 1
additional standard that is
applicable in a geographic
region defined by the
Secretary.
``(II) For any cooling
product, the Secretary may
establish 1 or 2 additional
standards that are applicable
in 1 or 2 geographic regions as
may be defined by the
Secretary.
``(C) Boundaries of geographic regions.--
``(i) In general.--Subject to clause
(ii), the boundaries of additional
geographic regions established by the
Secretary under this paragraph shall
include only contiguous States.
``(ii) Alaska and hawaii.--The States
of Alaska and Hawaii may be included
under this paragraph in a geographic
region that the States are not
contiguous to.
``(iii) Individual states.--
Individual States shall be placed only
into a single region under this
paragraph.
``(D) Prerequisites.--In establishing
additional regional standards under this
paragraph, the Secretary shall--
``(i) establish additional regional
standards only if the Secretary
determines that--
``(I) the establishment of
additional regional standards
will produce significant energy
savings in comparison to
establishing only a single
national standard; and
``(II) the additional
regional standards are
economically justified under
this paragraph; and
``(ii) consider the impact of the
additional regional standards on
consumers, manufacturers, and other
market participants, including product
distributors, dealers, contractors, and
installers.
``(E) Application; effective date.--
``(i) Base national standard.--Any
base national standard established for
a product under this paragraph shall--
``(I) be the minimum standard
for the product; and
``(II) apply to all products
manufactured or imported into
the United States on and after
the effective date for the
standard.
``(ii) Regional standards.--Any
additional and more restrictive
regional standard established for a
product under this paragraph shall
apply to any such product installed on
or after the effective date of the
standard in States in which the
Secretary has designated the standard
to apply.
``(F) Continuation of regional standards.--
``(i) In general.--In any subsequent
rulemaking for any product for which a
regional standard has been previously
established, the Secretary shall
determine whether to continue the
establishment of separate regional
standards for the product.
``(ii) Regional standard no longer
appropriate.--Except as provided in
clause (iii), if the Secretary
determines that regional standards are
no longer appropriate for a product,
beginning on the effective date of the
amended standard for the product--
``(I) there shall be 1 base
national standard for the
product with Federal
enforcement; and
``(II) State authority for
enforcing a regional standard
for the product shall
terminate.
``(iii) Regional standard appropriate
but standard or region changed.--
``(I) State no longer
contained in region.--Subject
to subclause (III), if a State
is no longer contained in a
region in which a regional
standard that is more stringent
than the base national standard
applies, the authority of the
State to enforce the regional
standard shall terminate.
``(II) Standard or region
revised so that existing
regional standard equals base
national standard.--If the
Secretary revises a base
national standard for a product
or the geographic definition of
a region so that an existing
regional standard for a State
is equal to the revised base
national standard--
``(aa) the authority
of the State to enforce
the regional standard
shall terminate on the
effective date of the
revised base national
standard; and
``(bb) the State
shall be subject to the
revised base national
standard.
``(III) Standard or region
revised so that existing
regional standard equals base
national standard.--If the
Secretary revises a base
national standard for a product
or the geographic definition of
a region so that the standard
for a State is lower than the
previously approved regional
standard, the State may
continue to enforce the
previously approved standard
level.
``(iv) Waiver of federal
preemption.--Nothing in this paragraph
diminishes the authority of a State to
enforce a State regulation for which a
waiver of Federal preemption has been
granted under section 327(d).
``(G) Enforcement.--
``(i) Base national standard.--
``(I) In general.--The
Secretary shall enforce any
base national standard.
``(II) Trade association
certification programs.--In
enforcing the base national
standard, the Secretary shall
use, to the maximum extent
practicable, national standard
nationally recognized
certification programs of trade
associations.
``(ii) Regional standards.--
``(I) Enforcement plan.--Not
later than 90 days after the
date of the issuance of a final
rule that establishes a
regional standard, the
Secretary shall initiate a
rulemaking to develop and
implement an effective
enforcement plan for regional
standards for the products that
are covered by the final rule.
``(II) Responsible
entities.--Any rules regarding
enforcement of a regional
standard shall clearly specify
which entities are legally
responsible for compliance with
the standards and for making
any required information or
labeling disclosures.
``(III) Final rule.--Not
later than 15 months after the
date of the issuance of a final
rule that establishes a
regional standard for a
product, the Secretary shall
promulgate a final rule
covering enforcement of
regional standards for the
product.
``(IV) Incorporation by
states and localities.--A State
or locality may incorporate any
Federal regional standard into
State or local building codes
or State appliance standards.
``(V) State enforcement.--A
State agency may seek
enforcement of a Federal
regional standard in a Federal
court of competent
jurisdiction.
``(H) Information disclosure.--
``(i) In general.--Not later than 90
days after the date of the publication
of a final rule that establishes a
regional standard for a product, the
Federal Trade Commission shall
undertake a rulemaking to determine the
appropriate 1 or more methods for
disclosing information so that
consumers, distributors, contractors,
and installers can easily determine
whether a specific piece of equipment
that is installed in a specific
building is in conformance with the
regional standard that applies to the
building.
``(ii) Methods.--A method of
disclosing information under clause (i)
may include--
``(I) modifications to the
Energy Guide label; or
``(II) other methods that
make it easy for consumers and
installers to use and
understand at the point of
installation.
``(iii) Completion of rulemaking.--
The rulemaking shall be completed not
later 15 months after the date of the
publication of a final rule that
establishes a regional standard for a
product.''.
(b) Prohibited Acts.--Section 332(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' after the
semicolon at the end;
(2) in paragraph (5), by striking ``part.'' and
inserting ``part, except to the extent that the new
covered product is covered by a regional standard that
is more stringent than the base national standard;
or''; and
(3) by adding at the end the following:
``(6) for any manufacturer or private labeler to
knowingly sell a product to a distributor, contractor,
or dealer with knowledge that the entity routinely
violates any regional standard applicable to the
product.''.
(c) Consideration of Prices and Operating Patterns.--Section
342(a)(6)(B) of the Energy Policy and Conservation Act (42
U.S.C. 6313(a)(6)(B)) is amended by adding at the end the
following:
``(iii) Consideration of prices and
operating patterns.--If the Secretary
is considering revised standards for
air-cooled 3-phase central air
conditioners and central air
conditioning heat pumps with less
65,000 Btu per hour (cooling capacity),
the Secretary shall use commercial
energy prices and operating patterns in
all analyses conducted by the
Secretary.''.
SEC. 307. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.
Section 325(p) of the Energy Policy and Conservation Act (42
U.S.C. 6925(p)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively.
SEC. 308. EXPEDITED RULEMAKINGS.
(a) Procedure for Prescribing New or Amended Standards.--
Section 325(p) of the Energy Policy and Conservation Act (42
U.S.C. 6295(p)) (as amended by section 307) is amended by
adding at the end the following:
``(4) Direct final rules.--
``(A) In general.--On receipt of a statement
that is submitted jointly by interested persons
that are fairly representative of relevant
points of view (including representatives of
manufacturers of covered products, States, and
efficiency advocates), as determined by the
Secretary, and contains recommendations with
respect to an energy or water conservation
standard--
``(i) if the Secretary determines
that the recommended standard contained
in the statement is in accordance with
subsection (o) or section 342(a)(6)(B),
as applicable, the Secretary may issue
a final rule that establishes an energy
or water conservation standard and is
published simultaneously with a notice
of proposed rulemaking that proposes a
new or amended energy or water
conservation standard that is identical
to the standard established in the
final rule to establish the recommended
standard (referred to in this paragraph
as a `direct final rule'); or
``(ii) if the Secretary determines
that a direct final rule cannot be
issued based on the statement, the
Secretary shall publish a notice of the
determination, together with an
explanation of the reasons for the
determination.
``(B) Public comment.--The Secretary shall
solicit public comment for a period of at least
110 days with respect to each direct final rule
issued by the Secretary under subparagraph
(A)(i).
``(C) Withdrawal of direct final rules.--
``(i) In general.--Not later than 120
days after the date on which a direct
final rule issued under subparagraph
(A)(i) is published in the Federal
Register, the Secretary shall withdraw
the direct final rule if--
``(I) the Secretary receives
1 or more adverse public
comments relating to the direct
final rule under subparagraph
(B)(i) or any alternative joint
recommendation; and
``(II) based on the
rulemaking record relating to
the direct final rule, the
Secretary determines that such
adverse public comments or
alternative joint
recommendation may provide a
reasonable basis for
withdrawing the direct final
rule under subsection (o),
section 342(a)(6)(B), or any
other applicable law.
``(ii) Action on withdrawal.--On
withdrawal of a direct final rule under
clause (i), the Secretary shall--
``(I) proceed with the notice
of proposed rulemaking
published simultaneously with
the direct final rule as
described in subparagraph
(A)(i); and
``(II) publish in the Federal
Register the reasons why the
direct final rule was
withdrawn.
``(iii) Treatment of withdrawn direct
final rules.--A direct final rule that
is withdrawn under clause (i) shall not
be considered to be a final rule for
purposes of subsection (o).
``(D) Effect of paragraph.--Nothing in this
paragraph authorizes the Secretary to issue a
direct final rule based solely on receipt of
more than 1 statement containing recommended
standards relating to the direct final rule.''.
(b) Conforming Amendment.--Section 345(b)(1) of the Energy
Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended
in the first sentence by inserting ``section 325(p)(5),'' after
``The provisions of''.
SEC. 309. BATTERY CHARGERS.
Section 325(u)(1)(E) of the Energy Policy and Conservation
Act (42 U.S.C. 6295(u)(1)(E)) is amended--
(1) by striking ``(E)(i) Not'' and inserting the
following:
``(E) External power supplies and battery
chargers.--
``(i) Energy conservation
standards.--
``(I) External power
supplies.--Not'';
(2) by striking ``3 years'' and inserting ``2
years'';
(3) by striking ``battery chargers and'' each place
it appears; and
(4) by adding at the end the following :
``(II) Battery chargers.--Not
later than July 1, 2011, the
Secretary shall issue a final
rule that prescribes energy
conservation standards for
battery chargers or classes of
battery chargers or determine
that no energy conservation
standard is technically
feasible and economically
justified.''.
SEC. 310. STANDBY MODE.
Section 325 of the Energy Policy and Conservation Act (42
U.S.C. 6295) is amended--
(1) in subsection (u)--
(A) by striking paragraphs (2), (3), and (4);
and
(B) by redesignating paragraph (5) and (6) as
paragraphs (2) and (3), respectively;
(2) by redesignating subsection (gg) as subsection
(hh);
(3) by inserting after subsection (ff) the following:
``(gg) Standby Mode Energy Use.--
``(1) Definitions.--
``(A) In general.--Unless the Secretary
determines otherwise pursuant to subparagraph
(B), in this subsection:
``(i) Active mode.--The term `active
mode' means the condition in which an
energy-using product--
``(I) is connected to a main
power source;
``(II) has been activated;
and
``(III) provides 1 or more
main functions.
``(ii) Off mode.--The term `off mode'
means the condition in which an energy-
using product--
``(I) is connected to a main
power source; and
``(II) is not providing any
standby or active mode
function.
``(iii) Standby mode.--The term
`standby mode' means the condition in
which an energy-using product--
``(I) is connected to a main
power source; and
``(II) offers 1 or more of
the following user-oriented or
protective functions:
``(aa) To facilitate
the activation or
deactivation of other
functions (including
active mode) by remote
switch (including
remote control),
internal sensor, or
timer.
``(bb) Continuous
functions, including
information or status
displays (including
clocks) or sensor-based
functions.
``(B) Amended definitions.--The Secretary
may, by rule, amend the definitions under
subparagraph (A), taking into consideration the
most current versions of Standards 62301 and
62087 of the International Electrotechnical
Commission.
``(2) Test procedures.--
``(A) In general.--Test procedures for all
covered products shall be amended pursuant to
section 323 to include standby mode and off
mode energy consumption, taking into
consideration the most current versions of
Standards 62301 and 62087 of the International
Electrotechnical Commission, with such energy
consumption integrated into the overall energy
efficiency, energy consumption, or other energy
descriptor for each covered product, unless the
Secretary determines that--
``(i) the current test procedures for
a covered product already fully account
for and incorporate the standby mode
and off mode energy consumption of the
covered product; or
``(ii) such an integrated test
procedure is technically infeasible for
a particular covered product, in which
case the Secretary shall prescribe a
separate standby mode and off mode
energy use test procedure for the
covered product, if technically
feasible.
``(B) Deadlines.--The test procedure
amendments required by subparagraph (A) shall
be prescribed in a final rule no later than the
following dates:
``(i) December 31, 2008, for battery
chargers and external power supplies.
``(ii) March 31, 2009, for clothes
dryers, room air conditioners, and
fluorescent lamp ballasts.
``(iii) June 30, 2009, for
residential clothes washers.
``(iv) September 30, 2009, for
residential furnaces and boilers.
``(v) March 31, 2010, for residential
water heaters, direct heating
equipment, and pool heaters.
``(vi) March 31, 2011, for
residential dishwashers, ranges and
ovens, microwave ovens, and
dehumidifiers.
``(C) Prior product standards.--The test
procedure amendments adopted pursuant to
subparagraph (B) shall not be used to determine
compliance with product standards established
prior to the adoption of the amended test
procedures.
``(3) Incorporation into standard.--
``(A) In general.--Subject to subparagraph
(B), based on the test procedures required
under paragraph (2), any final rule
establishing or revising a standard for a
covered product, adopted after July 1, 2010,
shall incorporate standby mode and off mode
energy use into a single amended or new
standard, pursuant to subsection (o), if
feasible.
``(B) Separate standards.--If not feasible,
the Secretary shall prescribe within the final
rule a separate standard for standby mode and
off mode energy consumption, if justified under
subsection (o).''; and
(4) in paragraph (2) of subsection (hh) (as
redesignated by paragraph (2)) , by striking ``(ff)''
each place it appears and inserting ``(gg)''.
SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES.
(a) Appliances.--
(1) Dehumidifiers.--Section 325(cc) of the Energy
Policy and Conservation Act (42 U.S.C. 6295(cc)) is
amended by striking paragraph (2) and inserting the
following:
``(2) Dehumidifiers manufactured on or after october
1, 2012.--Dehumidifiers manufactured on or after
October 1, 2012, shall have an Energy Factor that meets
or exceeds the following values:
``Product Capacity (pints/day): Minimum Energy Factor (liters/
KWh)
Up to 35.00.......................... 1.35
35.01-45.00.......................... 1.50
45.01-54.00.......................... 1.60
54.01-75.00.......................... 1.70
Greater than 75.00................... 2.5.''.
(2) Residential clothes washers and residential
dishwashers.--Section 325(g) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(g)) is amended by
adding at the end the following:
``(9) Residential clothes washers manufactured on or
after january 1, 2011.--
``(A) In general.--A top-loading or front-
loading standard-size residential clothes
washer manufactured on or after January 1,
2011, shall have--
``(i) a Modified Energy Factor of at
least 1.26; and
``(ii) a water factor of not more
than 9.5.
``(B) Amendment of standards.--
``(i) In general.--Not later than
December 31, 2011, the Secretary shall
publish a final rule determining
whether to amend the standards in
effect for clothes washers manufactured
on or after January 1, 2015.
``(ii) Amended standards.--The final
rule shall contain any amended
standards.
``(10) Residential dishwashers manufactured on or
after january 1, 2010.--
``(A) In general.--A dishwasher manufactured
on or after January 1, 2010, shall--
``(i) for a standard size dishwasher
not exceed 355 kwh/year and 6.5 gallon
per cycle; and
``(ii) for a compact size dishwasher
not exceed 260 kwh/year and 4.5 gallons
per cycle.
``(B) Amendment of standards.--
``(i) In general.--Not later than
January 1, 2015, the Secretary shall
publish a final rule determining
whether to amend the standards for
dishwashers manufactured on or after
January 1, 2018.
``(ii) Amended standards.--The final
rule shall contain any amended
standards.''.
(3) Refrigerators and freezers.--Section 325(b) of
the Energy Policy and Conservation Act (42 U.S.C.
6295(b)) is amended by adding at the end the following:
``(4) Refrigerators and freezers manufactured on or
after january 1, 2014.--
``(A) In general.--Not later than December
31, 2010, the Secretary shall publish a final
rule determining whether to amend the standards
in effect for refrigerators, refrigerator-
freezers, and freezers manufactured on or after
January 1, 2014.
``(B) Amended standards.--The final rule
shall contain any amended standards.''.
(b) Energy Star.--Section 324A(d)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294a(d)(2)) is amended by striking
``January 1, 2010'' and inserting ``July 1, 2009''.
SEC. 312. WALK-IN COOLERS AND WALK-IN FREEZERS.
(a) Definitions.--Section 340 of the Energy Policy and
Conservation Act (42 U.S.C. 6311) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (G)
through (K) as subparagraphs (H) through (L),
respectively; and
(B) by inserting after subparagraph (F) the
following:
``(G) Walk-in coolers and walk-in
freezers.'';
(2) by redesignating paragraphs (20) and (21) as
paragraphs (21) and (22), respectively; and
(3) by inserting after paragraph (19) the following:
``(20) Walk-in cooler; walk-in freezer.--
``(A) In general.--The terms `walk-in cooler'
and `walk-in freezer' mean an enclosed storage
space refrigerated to temperatures,
respectively, above, and at or below 32 degrees
Fahrenheit that can be walked into, and has a
total chilled storage area of less than 3,000
square feet.
``(B) Exclusion.--The terms `walk-in cooler'
and `walk-in freezer' do not include products
designed and marketed exclusively for medical,
scientific, or research purposes.''.
(b) Standards.--Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the
end the following:
``(f) Walk-in Coolers and Walk-in Freezers.--
``(1) In general.--Subject to paragraphs (2) through
(5), each walk-in cooler or walk-in freezer
manufactured on or after January 1, 2009, shall--
``(A) have automatic door closers that firmly
close all walk-in doors that have been closed
to within 1 inch of full closure, except that
this subparagraph shall not apply to doors
wider than 3 feet 9 inches or taller than 7
feet;
``(B) have strip doors, spring hinged doors,
or other method of minimizing infiltration when
doors are open;
``(C) contain wall, ceiling, and door
insulation of at least R-25 for coolers and R-
32 for freezers, except that this subparagraph
shall not apply to glazed portions of doors nor
to structural members;
``(D) contain floor insulation of at least R-
28 for freezers;
``(E) for evaporator fan motors of under 1
horsepower and less than 460 volts, use--
``(i) electronically commutated
motors (brushless direct current
motors); or
``(ii) 3-phase motors;
``(F) for condenser fan motors of under 1
horsepower, use--
``(i) electronically commutated
motors;
``(ii) permanent split capacitor-type
motors; or
``(iii) 3-phase motors; and
``(G) for all interior lights, use light
sources with an efficacy of 40 lumens per watt
or more, including ballast losses (if any),
except that light sources with an efficacy of
40 lumens per watt or less, including ballast
losses (if any), may be used in conjunction
with a timer or device that turns off the
lights within 15 minutes of when the walk-in
cooler or walk-in freezer is not occupied by
people.
``(2) Electronically commutated motors.--
``(A) In general.--The requirements of
paragraph (1)(E)(i) for electronically
commutated motors shall take effect January 1,
2009, unless, prior to that date, the Secretary
determines that such motors are only available
from 1 manufacturer.
``(B) Other types of motors.--In carrying out
paragraph (1)(E)(i) and subparagraph (A), the
Secretary may allow other types of motors if
the Secretary determines that, on average,
those other motors use no more energy in
evaporator fan applications than electronically
commutated motors.
``(C) Maximum energy consumption level.--The
Secretary shall establish the maximum energy
consumption level under subparagraph (B) not
later than January 1, 2010.
``(3) Additional specifications.--Each walk-in cooler
or walk-in freezer with transparent reach-in doors
manufactured on or after January 1, 2009, shall also
meet the following specifications:
``(A) Transparent reach-in doors for walk-in
freezers and windows in walk-in freezer doors
shall be of triple-pane glass with either heat-
reflective treated glass or gas fill.
``(B) Transparent reach-in doors for walk-in
coolers and windows in walk-in cooler doors
shall be--
``(i) double-pane glass with heat-
reflective treated glass and gas fill;
or
``(ii) triple-pane glass with either
heat-reflective treated glass or gas
fill.
``(C) If the appliance has an antisweat
heater without antisweat heat controls, the
appliance shall have a total door rail, glass,
and frame heater power draw of not more than
7.1 watts per square foot of door opening (for
freezers) and 3.0 watts per square foot of door
opening (for coolers).
``(D) If the appliance has an antisweat
heater with antisweat heat controls, and the
total door rail, glass, and frame heater power
draw is more than 7.1 watts per square foot of
door opening (for freezers) and 3.0 watts per
square foot of door opening (for coolers), the
antisweat heat controls shall reduce the energy
use of the antisweat heater in a quantity
corresponding to the relative humidity in the
air outside the door or to the condensation on
the inner glass pane.
``(4) Performance-based standards.--
``(A) In general.--Not later than January 1,
2012, the Secretary shall publish performance-
based standards for walk-in coolers and walk-in
freezers that achieve the maximum improvement
in energy that the Secretary determines is
technologically feasible and economically
justified.
``(B) Application.--
``(i) In general.--Except as provided
in clause (ii), the standards shall
apply to products described in
subparagraph (A) that are manufactured
beginning on the date that is 3 years
after the final rule is published.
``(ii) Delayed effective date.--If
the Secretary determines, by rule, that
a 3-year period is inadequate, the
Secretary may establish an effective
date for products manufactured
beginning on the date that is not more
than 5 years after the date of
publication of a final rule for the
products.
``(5) Amendment of standards.--
``(A) In general.--Not later than January 1,
2020, the Secretary shall publish a final rule
to determine if the standards established under
paragraph (4) should be amended.
``(B) Application.--
``(i) In general.--Except as provided
in clause (ii), the rule shall provide
that the standards shall apply to
products manufactured beginning on the
date that is 3 years after the final
rule is published.
``(ii) Delayed effective date.--If
the Secretary determines, by rule, that
a 3-year period is inadequate, the
Secretary may establish an effective
date for products manufactured
beginning on the date that is not more
than 5 years after the date of
publication of a final rule for the
products.''.
(c) Test Procedures.--Section 343(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6314(a)) is amended by adding at
the end the following:
``(9) Walk-in coolers and walk-in freezers.--
``(A) In general.--For the purpose of test
procedures for walk-in coolers and walk-in
freezers:
``(i) The R value shall be the 1/K
factor multiplied by the thickness of
the panel.
``(ii) The K factor shall be based on
ASTM test procedure C518-2004.
``(iii) For calculating the R value
for freezers, the K factor of the foam
at 20F (average foam temperature)
shall be used.
``(iv) For calculating the R value
for coolers, the K factor of the foam
at 55F (average foam temperature)
shall be used.
``(B) Test procedure.--
``(i) In general.--Not later than
January 1, 2010, the Secretary shall
establish a test procedure to measure
the energy-use of walk-in coolers and
walk-in freezers.
``(ii) Computer modeling.--The test
procedure may be based on computer
modeling, if the computer model or
models have been verified using the
results of laboratory tests on a
significant sample of walk-in coolers
and walk-in freezers.''.
(d) Labeling.--Section 344(e) of the Energy Policy and
Conservation Act (42 U.S.C. 6315(e)) is amended by inserting
``walk-in coolers and walk-in freezers,'' after ``commercial
clothes washers,'' each place it appears.
(e) Administration, Penalties, Enforcement, and Preemption.--
Section 345 of the Energy Policy and Conservation Act (42
U.S.C. 6316) is amended--
(1) by striking ``subparagraphs (B), (C), (D), (E),
and (F)'' each place it appears and inserting
``subparagraphs (B) through (G)''; and
(2) by adding at the end the following:
``(h) Walk-in Coolers and Walk-in Freezers.--
``(1) Covered types.--
``(A) Relationship to other law.--
``(i) In general.--Except as
otherwise provided in this subsection,
section 327 shall apply to walk-in
coolers and walk-in freezers for which
standards have been established under
paragraphs (1), (2), and (3) of section
342(f) to the same extent and in the
same manner as the section applies
under part A on the date of enactment
of this subsection.
``(ii) State standards.--Any State
standard prescribed before the date of
enactment of this subsection shall not
be preempted until the standards
established under paragraphs (1) and
(2) of section 342(f) take effect.
``(B) Administration.--In applying section
327 to equipment under subparagraph (A),
paragraphs (1), (2), and (3) of subsection (a)
shall apply.
``(2) Final rule not timely.--
``(A) In general.--If the Secretary does not
issue a final rule for a specific type of walk-
in cooler or walk-in freezer within the time
frame established under paragraph (4) or (5) of
section 342(f), subsections (b) and (c) of
section 327 shall no longer apply to the
specific type of walk-in cooler or walk-in
freezer during the period--
``(i) beginning on the day after the
scheduled date for a final rule; and
``(ii) ending on the date on which
the Secretary publishes a final rule
covering the specific type of walk-in
cooler or walk-in freezer.
``(B) State standards.--Any State standard
issued before the publication of the final rule
shall not be preempted until the standards
established in the final rule take effect.
``(3) California.--Any standard issued in the State
of California before January 1, 2011, under title 20 of
the California Code of Regulations, that refers to
walk-in coolers and walk-in freezers, for which
standards have been established under paragraphs (1),
(2), and (3) of section 342(f), shall not be preempted
until the standards established under section 342(f)(3)
take effect.''.
SEC. 313. ELECTRIC MOTOR EFFICIENCY STANDARDS.
(a) Definitions.--Section 340(13) of the Energy Policy and
Conservation Act (42 U.S.C. 6311(13)) is amended--
(1) by redesignating subparagraphs (B) through (H) as
subparagraphs (C) through (I), respectively; and
(2) by striking ``(13)(A)'' and all that follows
through the end of subparagraph (A) and inserting the
following:
``(13) Electric motor.--
``(A) General purpose electric motor (subtype
i).--The term `general purpose electric motor
(subtype I)' means any motor that meets the
definition of `General Purpose' as established
in the final rule issued by the Department of
Energy entitled `Energy Efficiency Program for
Certain Commercial and Industrial Equipment:
Test Procedures, Labeling, and Certification
Requirements for Electric Motors' (10 C.F.R.
431), as in effect on the date of enactment of
the Energy Independence and Security Act of
2007.
``(B) General purpose electric motor (subtype
ii).--The term `general purpose electric motor
(subtype II)' means motors incorporating the
design elements of a general purpose electric
motor (subtype I) that are configured as 1 of
the following:
``(i) A U-Frame Motor.
``(ii) A Design C Motor.
``(iii) A close-coupled pump motor.
``(iv) A Footless motor.
``(v) A vertical solid shaft normal
thrust motor (as tested in a horizontal
configuration).
``(vi) An 8-pole motor (900 rpm).
``(vii) A poly-phase motor with
voltage of not more than 600 volts
(other than 230 or 460 volts.''.
(b) Standards.--
(1) Amendment.--Section 342(b) of the Energy Policy
and Conservation Act (42 U.S.C. 6313(b)) is amended--
(A) by redesignating paragraphs (2) and (3)
as paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the
following:
``(2) Electric motors.--
``(A) General purpose electric motors
(subtype i).--Except as provided in
subparagraph (B), each general purpose electric
motor (subtype I) with a power rating of 1
horsepower or greater, but not greater than 200
horsepower, manufactured (alone or as a
component of another piece of equipment) after
the 3-year period beginning on the date of
enactment of the Energy Independence and
Security Act of 2007, shall have a nominal full
load efficiency that is not less than as
defined in NEMA MG-1 (2006) Table 12-12.
``(B) Fire pump motors.--Each fire pump motor
manufactured (alone or as a component of
another piece of equipment) after the 3-year
period beginning on the date of enactment of
the Energy Independence and Security Act of
2007 shall have nominal full load efficiency
that is not less than as defined in NEMA MG-1
(2006) Table 12-11.
``(C) General purpose electric motors
(subtype ii).--Each general purpose electric
motor (subtype II) with a power rating of 1
horsepower or greater, but not greater than 200
horsepower, manufactured (alone or as a
component of another piece of equipment) after
the 3-year period beginning on the date of
enactment of the Energy Independence and
Security Act of 2007, shall have a nominal full
load efficiency that is not less than as
defined in NEMA MG-1 (2006) Table 12-11.
``(D) NEMA design b, general purpose electric
motors.--Each NEMA Design B, general purpose
electric motor with a power rating of more than
200 horsepower, but not greater than 500
horsepower, manufactured (alone or as a
component of another piece of equipment) after
the 3-year period beginning on the date of
enactment of the Energy Independence and
Security Act of 2007, shall have a nominal full
load efficiency that is not less than as
defined in NEMA MG-1 (2006) Table 12-11.''.
(2) Effective date.--The amendments made by paragraph
(1) take effect on the date that is 3 years after the
date of enactment of this Act.
SEC. 314. STANDARDS FOR SINGLE PACKAGE VERTICAL AIR CONDITIONERS AND
HEAT PUMPS.
(a) Definitions.--Section 340 of the Energy Policy and
Conservation Act (42 U.S.C. 6311) is amended by adding at the
end the following:
``(22) Single package vertical air conditioner.--The
term `single package vertical air conditioner' means
air-cooled commercial package air conditioning and
heating equipment that--
``(A) is factory-assembled as a single
package that--
``(i) has major components that are
arranged vertically;
``(ii) is an encased combination of
cooling and optional heating
components; and
``(iii) is intended for exterior
mounting on, adjacent interior to, or
through an outside wall;
``(B) is powered by a single- or 3-phase
current;
``(C) may contain 1 or more separate indoor
grilles, outdoor louvers, various ventilation
options, indoor free air discharges, ductwork,
well plenum, or sleeves; and
``(D) has heating components that may include
electrical resistance, steam, hot water, or
gas, but may not include reverse cycle
refrigeration as a heating means.
``(23) Single package vertical heat pump.--The term
`single package vertical heat pump' means a single
package vertical air conditioner that--
``(A) uses reverse cycle refrigeration as its
primary heat source; and
``(B) may include secondary supplemental
heating by means of electrical resistance,
steam, hot water, or gas.''.
(b) Standards.--Section 342(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)) is amended--
(1) in the first sentence of each of paragraphs (1)
and (2), by inserting ``(including single package
vertical air conditioners and single package vertical
heat pumps)'' after ``heating equipment'' each place it
appears;
(2) in paragraph (1), by striking ``but before
January 1, 2010,'';
(3) in the first sentence of each of paragraphs (7),
(8), and (9), by inserting ``(other than single package
vertical air conditioners and single package vertical
heat pumps)'' after ``heating equipment'' each place it
appears;
(4) in paragraph (7)--
(A) by striking ``manufactured on or after
January 1, 2010,'';
(B) in each of subparagraphs (A), (B), and
(C), by striking ``The'' and inserting ``For
equipment manufactured on or after January 1,
2010, the''; and
(C) by adding at the end the following:
``(D) For equipment manufactured on or after the
later of January 1, 2008, or the date that is 180 days
after the date of enactment of the Energy Independence
and Security Act of 2007--
``(i) the minimum seasonal energy efficiency
ratio of air-cooled 3-phase electric central
air conditioners and central air conditioning
heat pumps less than 65,000 Btu per hour
(cooling capacity), split systems, shall be
13.0;
``(ii) the minimum seasonal energy efficiency
ratio of air-cooled 3-phase electric central
air conditioners and central air conditioning
heat pumps less than 65,000 Btu per hour
(cooling capacity), single package, shall be
13.0;
``(iii) the minimum heating seasonal
performance factor of air-cooled 3-phase
electric central air conditioning heat pumps
less than 65,000 Btu per hour (cooling
capacity), split systems, shall be 7.7; and
``(iv) the minimum heating seasonal
performance factor of air-cooled three-phase
electric central air conditioning heat pumps
less than 65,000 Btu per hour (cooling
capacity), single package, shall be 7.7.''; and
(5) by adding at the end the following:
``(10) Single package vertical air conditioners and
single package vertical heat pumps.--
``(A) In general.--Single package vertical
air conditioners and single package vertical
heat pumps manufactured on or after January 1,
2010, shall meet the following standards:
``(i) The minimum energy efficiency
ratio of single package vertical air
conditioners less than 65,000 Btu per
hour (cooling capacity), single-phase,
shall be 9.0.
``(ii) The minimum energy efficiency
ratio of single package vertical air
conditioners less than 65,000 Btu per
hour (cooling capacity), three-phase,
shall be 9.0.
``(iii) The minimum energy efficiency
ratio of single package vertical air
conditioners at or above 65,000 Btu per
hour (cooling capacity) but less than
135,000 Btu per hour (cooling
capacity), shall be 8.9.
``(iv) The minimum energy efficiency
ratio of single package vertical air
conditioners at or above 135,000 Btu
per hour (cooling capacity) but less
than 240,000 Btu per hour (cooling
capacity), shall be 8.6.
``(v) The minimum energy efficiency
ratio of single package vertical heat
pumps less than 65,000 Btu per hour
(cooling capacity), single-phase, shall
be 9.0 and the minimum coefficient of
performance in the heating mode shall
be 3.0.
``(vi) The minimum energy efficiency
ratio of single package vertical heat
pumps less than 65,000 Btu per hour
(cooling capacity), three-phase, shall
be 9.0 and the minimum coefficient of
performance in the heating mode shall
be 3.0.
``(vii) The minimum energy efficiency
ratio of single package vertical heat
pumps at or above 65,000 Btu per hour
(cooling capacity) but less than
135,000 Btu per hour (cooling
capacity), shall be 8.9 and the minimum
coefficient of performance in the
heating mode shall be 3.0.
``(viii) The minimum energy
efficiency ratio of single package
vertical heat pumps at or above 135,000
Btu per hour (cooling capacity) but
less than 240,000 Btu per hour (cooling
capacity), shall be 8.6 and the minimum
coefficient of performance in the
heating mode shall be 2.9.
``(B) Review.--Not later than 3 years after
the date of enactment of this paragraph, the
Secretary shall review the most recently
published ASHRAE/IES Standard 90.1 with respect
to single package vertical air conditioners and
single package vertical heat pumps in
accordance with the procedures established
under paragraph (6).''.
SEC. 315. IMPROVED ENERGY EFFICIENCY FOR APPLIANCES AND BUILDINGS IN
COLD CLIMATES.
(a) Research.--Section 911(a)(2) of the Energy Policy Act of
2005 (42 U.S.C. 16191(a)(2)) is amended--
(1) in subparagraph (C), by striking ``and'' at the
end;
(2) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(E) technologies to improve the energy
efficiency of appliances and mechanical systems
for buildings in cold climates, including
combined heat and power units and increased use
of renewable resources, including fuel.''.
(b) Rebates.--Section 124 of the Energy Policy Act of 2005
(42 U.S.C. 15821) is amended--
(1) in subsection (b)(1), by inserting ``, or
products with improved energy efficiency in cold
climates,'' after ``residential Energy Star products'';
and
(2) in subsection (e), by inserting ``or product with
improved energy efficiency in a cold climate'' after
``residential Energy Star product'' each place it
appears.
SEC. 316. TECHNICAL CORRECTIONS.
(a) Definition of F96T12 Lamp.--
(1) In general.--Section 135(a)(1)(A)(ii) of the
Energy Policy Act of 2005 (Public Law 109-58; 119 Stat.
624) is amended by striking ``C78.1-1978(R1984)'' and
inserting ``C78.3-1978(R1984)''.
(2) Effective date.--The amendment made by paragraph
(1) takes effect on August 8, 2005.
(b) Definition of Fluorescent Lamp.--Section 321(30)(B)(viii)
of the Energy Policy and Conservation Act (42 U.S.C.
6291(30)(B)(viii)) is amended by striking ``82'' and inserting
``87''.
(c) Mercury Vapor Lamp Ballasts.--
(1) Definitions.--Section 321 of the Energy Policy
and Conservation Act (42 U.S.C. 6291) (as amended by
section 301(a)(2)) is amended--
(A) by striking paragraphs (46) through (48)
and inserting the following:
``(46) High intensity discharge lamp.--
``(A) In general.--The term `high intensity
discharge lamp' means an electric-discharge
lamp in which--
``(i) the light-producing arc is
stabilized by the arc tube wall
temperature; and
``(ii) the arc tube wall loading is
in excess of 3 Watts/cm\2\.
``(B) Inclusions.--The term `high intensity
discharge lamp' includes mercury vapor, metal
halide, and high-pressure sodium lamps
described in subparagraph (A).
``(47) Mercury vapor lamp.--
``(A) In general.--The term `mercury vapor
lamp' means a high intensity discharge lamp in
which the major portion of the light is
produced by radiation from mercury typically
operating at a partial vapor pressure in excess
of 100,000 Pa (approximately 1 atm).
``(B) Inclusions.--The term `mercury vapor
lamp' includes clear, phosphor-coated, and
self-ballasted screw base lamps described in
subparagraph (A).
``(48) Mercury vapor lamp ballast.--The term `mercury
vapor lamp ballast' means a device that is designed and
marketed to start and operate mercury vapor lamps
intended for general illumination by providing the
necessary voltage and current.''; and
(B) by adding at the end the following:
``(53) Specialty application mercury vapor lamp
ballast.--The term `specialty application mercury vapor
lamp ballast' means a mercury vapor lamp ballast that--
``(A) is designed and marketed for operation
of mercury vapor lamps used in quality
inspection, industrial processing, or
scientific use, including fluorescent
microscopy and ultraviolet curing; and
``(B) in the case of a specialty application
mercury vapor lamp ballast, the label of
which--
``(i) provides that the specialty
application mercury vapor lamp ballast
is `For specialty applications only,
not for general illumination'; and
``(ii) specifies the specific
applications for which the ballast is
designed.''.
(2) Standard setting authority.--Section 325(ee) of
the Energy Policy and Conservation Act (42 U.S.C.
6295(ee)) is amended by inserting ``(other than
specialty application mercury vapor lamp ballasts)''
after ``ballasts''.
(d) Energy Conservation Standards.--Section 325 of the Energy
Policy and Conservation Act (42 U.S.C. 6295) is amended--
(1) in subsection (v)--
(A) in the subsection heading, by striking
``Ceiling Fans and'';
(B) by striking paragraph (1); and
(C) by redesignating paragraphs (2) through
(4) as paragraphs (1) through (3),
respectively; and
(2) in subsection (ff)--
(A) in paragraph (1)(A)--
(i) by striking clause (iii);
(ii) by redesignating clause (iv) as
clause (iii); and
(iii) in clause (iii)(II) (as so
redesignated), by inserting ``fans sold
for'' before ``outdoor''; and
(B) in paragraph (4)(C)--
(i) in the matter preceding clause
(i), by striking ``subparagraph (B)''
and inserting ``subparagraph (A)''; and
(ii) by striking clause (ii) and
inserting the following:
``(ii) shall be packaged with lamps to fill all
sockets.'';
(C) in paragraph (6), by redesignating
subparagraphs (C) and (D) as clauses (i) and
(ii), respectively, of subparagraph (B); and
(D) in paragraph (7), by striking ``327'' the
second place it appears and inserting ``324''.
Subtitle B--Lighting Energy Efficiency
SEC. 321. EFFICIENT LIGHT BULBS.
(a) Energy Efficiency Standards for General Service
Incandescent Lamps.--
(1) Definition of general service incandescent
lamp.--Section 321(30) of the Energy Policy and
Conservation Act (42 U.S.C. 6291(30)) is amended--
(A) by striking subparagraph (D) and
inserting the following:
``(D) General service incandescent lamp.--
``(i) In general.--The term `general
service incandescent lamp' means a
standard incandescent or halogen type
lamp that--
``(I) is intended for general
service applications;
``(II) has a medium screw
base;
``(III) has a lumen range of
not less than 310 lumens and
not more than 2,600 lumens; and
``(IV) is capable of being
operated at a voltage range at
least partially within 110 and
130 volts.
``(ii) Exclusions.--The term `general
service incandescent lamp' does not
include the following incandescent
lamps:
``(I) An appliance lamp.
``(II) A black light lamp.
``(III) A bug lamp.
``(IV) A colored lamp.
``(V) An infrared lamp.
``(VI) A left-hand thread
lamp.
``(VII) A marine lamp.
``(VIII) A marine signal
service lamp.
``(IX) A mine service lamp.
``(X) A plant light lamp.
``(XI) A reflector lamp.
``(XII) A rough service lamp.
``(XIII) A shatter-resistant
lamp (including a shatter-proof
lamp and a shatter-protected
lamp).
``(XIV) A sign service lamp.
``(XV) A silver bowl lamp.
``(XVI) A showcase lamp.
``(XVII) A 3-way incandescent
lamp.
``(XVIII) A traffic signal
lamp.
``(XIX) A vibration service
lamp.
``(XX) A G shape lamp (as
defined in ANSI C78.20 -2003
andC79.1-2002with a diameter of
5 inches or more.
``(XXI) A T shape lamp (as
defined in ANSIC78.20-2003 and
C79.1-2002) and that uses not
more than 40 watts or has a
length of more than 10 inches.
``(XXII) A B, BA, CA, F, G16-
1/2,G-25,G30, S, or M-14 lamp
(as defined in ANSI C79.1-2002
and ANSI C78.20-2003) of 40
watts or less.''; and
(B) by adding at the end the following:
``(T) Appliance lamp.--The term `appliance
lamp' means any lamp that--
``(i) is specifically designed to
operate in a household appliance, has a
maximum wattage of 40 watts, and is
sold at retail, including an oven lamp,
refrigerator lamp, and vacuum cleaner
lamp; and
``(ii) is designated and marketed for
the intended application, with--
``(I) the designation on the
lamp packaging; and
``(II) marketing materials
that identify the lamp as being
for appliance use.
``(U) Candelabra base incandescent lamp.--The
term `candelabra base incandescent lamp' means
a lamp that uses candelabra screw base as
described in ANSI C81.61-2006, Specifications
for Electric Bases, common designations E11 and
E12.
``(V) Intermediate base incandescent lamp.--
The term `intermediate base incandescent lamp'
means a lamp that uses an intermediate screw
base as described in ANSI C81.61-2006,
Specifications for Electric Bases, common
designation E17.
``(W) Modified spectrum.--The term `modified
spectrum' means, with respect to an
incandescent lamp, an incandescent lamp that--
``(i) is not a colored incandescent
lamp; and
``(ii) when operated at the rated
voltage and wattage of the incandescent
lamp--
``(I) has a color point with
(x,y) chromaticity coordinates
on the Commission
Internationale de l'Eclairage
(C.I.E.) 1931 chromaticity
diagram that lies below the
black-body locus; and
``(II) has a color point with
(x,y) chromaticity coordinates
on the C.I.E. 1931 chromaticity
diagram that lies at least 4
MacAdam steps (as referenced in
IESNA LM16) distant from the
color point of a clear lamp
with the same filament and bulb
shape, operated at the same
rated voltage and wattage.
``(X) Rough service lamp.--The term `rough
service lamp' means a lamp that--
``(i) has a minimum of 5 supports
with filament configurations that are
C-7A, C-11, C-17, and C-22 as listed in
Figure 6-12 of the 9th edition of the
IESNA Lighting handbook, or similar
configurations where lead wires are not
counted as supports; and
``(ii) is designated and marketed
specifically for `rough service'
applications, with--
``(I) the designation
appearing on the lamp
packaging; and
``(II) marketing materials
that identify the lamp as being
for rough service.
``(Y) 3-way incandescent lamp.--The term `3-
way incandescent lamp' includes an incandescent
lamp that--
``(i) employs 2 filaments, operated
separately and in combination, to
provide 3 light levels; and
``(ii) is designated on the lamp
packaging and marketing materials as
being a 3-way incandescent lamp.
``(Z) Shatter-resistant lamp, shatter-proof
lamp, or shatter-protected lamp.--The terms
`shatter-resistant lamp', `shatter-proof lamp',
and `shatter-protected lamp' mean a lamp that--
``(i) has a coating or equivalent
technology that is compliant with NSF/
ANSI 51 and is designed to contain the
glass if the glass envelope of the lamp
is broken; and
``(ii) is designated and marketed for
the intended application, with--
``(I) the designation on the
lamp packaging; and
``(II) marketing materials
that identify the lamp as being
shatter-resistant, shatter-
proof, or shatter-protected.
``(AA) Vibration service lamp.--The term
`vibration service lamp' means a lamp that--
``(i) has filament configurations
that are C-5, C-7A, or C-9, as listed
in Figure 6-12 of the 9th Edition of
the IESNA Lighting Handbook or similar
configurations;
``(ii) has a maximum wattage of 60
watts;
``(iii) is sold at retail in packages
of 2 lamps or less; and
``(iv) is designated and marketed
specifically for vibration service or
vibration-resistant applications,
with--
``(I) the designation
appearing on the lamp
packaging; and
``(II) marketing materials
that identify the lamp as being
vibration service only.
``(BB) General service lamp.--
``(i) In general.--The term `general
service lamp' includes--
``(I) general service
incandescent lamps;
``(II) compact fluorescent
lamps;
``(III) general service
light-emitting diode (LED or
OLED) lamps; and
``(IV) any other lamps that
the Secretary determines are
used to satisfy lighting
applications traditionally
served by general service
incandescent lamps.
``(ii) Exclusions.--The term `general
service lamp' does not include--
``(I) any lighting
application or bulb shape
described in any of subclauses
(I) through (XXII) of
subparagraph (D)(ii); or
``(II) any general service
fluorescent lamp or
incandescent reflector lamp.
``(CC) Light-emitting diode; led.--
``(i) In general.--The terms `light-
emitting diode' and `LED' means a p-n
junction solid state device the
radiated output of which is a function
of the physical construction, material
used, and exciting current of the
device.
``(ii) Output.--The output of a
light-emitting diode may be in--
``(I) the infrared region;
``(II) the visible region; or
``(III) the ultraviolet
region.
``(DD) Organic light-emitting diode; oled.--
The terms `organic light-emitting diode' and
`OLED' mean a thin-film light-emitting device
that typically consists of a series of organic
layers between 2 electrical contacts
(electrodes).
``(EE) Colored incandescent lamp.--The term
`colored incandescent lamp' means an
incandescent lamp designated and marketed as a
colored lamp that has--
``(i) a color rendering index of less
than 50, as determined according to the
test method given in C.I.E. publication
13.3-1995; or
``(ii) a correlated color temperature
of less than 2,500K, or greater than
4,600K, where correlated temperature is
computed according to the Journal of
Optical Society of America, Vol. 58,
pages 1528-1595 (1986).''.
(2) Coverage.--Section 322(a)(14) of the Energy
Policy and Conservation Act (42 U.S.C. 6292(a)(14)) is
amended by inserting ``, general service incandescent
lamps,'' after ``fluorescent lamps''.
(3) Energy conservation standards.--Section 325 of
the Energy Policy and Conservation Act (42 U.S.C. 6295)
is amended--
(A) in subsection (i)--
(i) in the section heading, by
inserting ``, General Service
Incandescent Lamps, Intermediate Base
Incandescent Lamps, Candelabra Base
Incandescent Lamps,'' after
``Fluorescent Lamps'';
(ii) in paragraph (1)--
(I) in subparagraph (A)--
(aa) by inserting ``,
general service
incandescent lamps,
intermediate base
incandescent lamps,
candelabra base
incandescent lamps,''
after ``fluorescent
lamps'';
(bb) by inserting ``,
new maximum wattage,''
after ``lamp
efficacy''; and
(cc) by inserting
after the table
entitled ``incandescent
reflector lamps'' the
following:
``GENERAL SERVICE INCANDESCENT LAMPS
------------------------------------------------------------------------
Minimum Rate Effective
Rated Lumen Ranges Maximum Rate Wattage Lifetime Date
------------------------------------------------------------------------
1490-2600 72 1,000 hrs 1/1/2012
1050-1489 53 1,000 hrs 1/1/2013
750-1049 43 1,000 hrs 1/1/2014
310-749 29 1,000 hrs 1/1/2014
------------------------------------------------------------------------
``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
------------------------------------------------------------------------
Minimum Rate Effective
Rated Lumen Ranges Maximum Rate Wattage Lifetime Date
------------------------------------------------------------------------
1118-1950 72 1,000 hrs 1/1/2012
788-1117 53 1,000 hrs 1/1/2013
563-787 43 1,000 hrs 1/1/2014
232-562 29 1,000 hrs 1/1/2014'';
------------------------------------------------------------------------
and
(II) by striking subparagraph
(B) and inserting the
following:
``(B) Application.--
``(i) Application criteria.--This
subparagraph applies to each lamp
that--
``(I) is intended for a
general service or general
illumination application
(whether incandescent or not);
``(II) has a medium screw
base or any other screw base
not defined in ANSI C81.61-
2006;
``(III) is capable of being
operated at a voltage at least
partially within the range of
110 to 130 volts; and
``(IV) is manufactured or
imported after December 31,
2011.
``(ii) Requirement.--For purposes of
this paragraph, each lamp described in
clause (i) shall have a color rendering
index that is greater than or equal
to--
``(I) 80 for nonmodified
spectrum lamps; or
``(II) 75 for modified
spectrum lamps.
``(C) Candelabra incandescent lamps and
intermediate base incandescent lamps.--
``(i) Candelabra base incandescent
lamps.--A candelabra base incandescent
lamp shall not exceed 60 rated watts.
``(ii) Intermediate base incandescent
lamps.--An intermediate base
incandescent lamp shall not exceed 40
rated watts.
``(D) Exemptions.--
``(i) Petition.--Any person may
petition the Secretary for an exemption
for a type of general service lamp from
the requirements of this subsection.
``(ii) Criteria.--The Secretary may
grant an exemption under clause (i)
only to the extent that the Secretary
finds, after a hearing and opportunity
for public comment, that it is not
technically feasible to serve a
specialized lighting application (such
as a military, medical, public safety,
or certified historic lighting
application) using a lamp that meets
the requirements of this subsection.
``(iii) Additional criterion.--To
grant an exemption for a product under
this subparagraph, the Secretary shall
include, as an additional criterion,
that the exempted product is unlikely
to be used in a general service
lighting application.
``(E) Extension of coverage.--
``(i) Petition.--Any person may
petition the Secretary to establish
standards for lamp shapes or bases that
are excluded from the definition of
general service lamps.
``(ii) Increased sales of exempted
lamps.--The petition shall include
evidence that the availability or sales
of exempted incandescent lamps have
increased significantly since the date
on which the standards on general
service incandescent lamps were
established.
``(iii) Criteria.--The Secretary
shall grant a petition under clause (i)
if the Secretary finds that--
``(I) the petition presents
evidence that demonstrates that
commercial availability or
sales of exempted incandescent
lamp types have increased
significantly since the
standards on general service
lamps were established and
likely are being widely used in
general lighting applications;
and
``(II) significant energy
savings could be achieved by
covering exempted products, as
determined by the Secretary
based on sales data provided to
the Secretary from
manufacturers and importers.
``(iv) No presumption.--The grant of
a petition under this subparagraph
shall create no presumption with
respect to the determination of the
Secretary with respect to any criteria
under a rulemaking conducted under this
section.
``(v) Expedited proceeding.--If the
Secretary grants a petition for a lamp
shape or base under this subparagraph,
the Secretary shall--
``(I) conduct a rulemaking to
determine standards for the
exempted lamp shape or base;
and
``(II) complete the
rulemaking not later than 18
months after the date on which
notice is provided granting the
petition.
``(F) Definition of effective date.--In this
paragraph, except as otherwise provided in a
table contained in subparagraph (A), the term
`effective date' means the last day of the
month specified in the table that follows
October 24, 1992.'';
(iii) in paragraph (5), in the first
sentence, by striking ``and general
service incandescent lamps'';
(iv) by redesignating paragraphs (6)
and (7) as paragraphs (7) and (8),
respectively; and
(v) by inserting after paragraph (5)
the following:
``(6) Standards for general service lamps.--
``(A) Rulemaking before january 1, 2014.--
``(i) In general.--Not later than
January 1, 2014, the Secretary shall
initiate a rulemaking procedure to
determine whether--
``(I) standards in effect for
general service lamps should be
amended to establish more
stringent standards than the
standards specified in
paragraph (1)(A); and
``(II) the exemptions for
certain incandescent lamps
should be maintained or
discontinued based, in part, on
exempted lamp sales collected
by the Secretary from
manufacturers.
``(ii) Scope.--The rulemaking--
``(I) shall not be limited to
incandescent lamp technologies;
and
``(II) shall include
consideration of a minimum
standard of 45 lumens per watt
for general service lamps.
``(iii) Amended standards.--If the
Secretary determines that the standards
in effect for general service
incandescent lamps should be amended,
the Secretary shall publish a final
rule not later than January 1, 2017,
with an effective date that is not
earlier than 3 years after the date on
which the final rule is published.
``(iv) Phased-in effective dates.--
The Secretary shall consider phased-in
effective dates under this subparagraph
after considering--
``(I) the impact of any
amendment on manufacturers,
retiring and repurposing
existing equipment, stranded
investments, labor contracts,
workers, and raw materials; and
``(II) the time needed to
work with retailers and
lighting designers to revise
sales and marketing strategies.
``(v) Backstop requirement.--If the
Secretary fails to complete a
rulemaking in accordance with clauses
(i) through (iv) or if the final rule
does not produce savings that are
greater than or equal to the savings
from a minimum efficacy standard of 45
lumens per watt, effective beginning
January 1, 2020, the Secretary shall
prohibit the sale of any general
service lamp that does not meet a
minimum efficacy standard of 45 lumens
per watt.
``(vi) State preemption.--Neither
section 327(b) nor any other provision
of law shall preclude California or
Nevada from adopting, effective
beginning on or after January 1, 2018--
``(I) a final rule adopted by
the Secretary in accordance
with clauses (i) through (iv);
``(II) if a final rule
described in subclause (I) has
not been adopted, the backstop
requirement under clause (v);
or
``(III) in the case of
California, if a final rule
described in subclause (I) has
not been adopted, any
California regulations relating
to these covered products
adopted pursuant to State
statute in effect as of the
date of enactment of the Energy
Independence and Security Act
of 2007.
``(B) Rulemaking before january 1, 2020.--
``(i) In general.--Not later than
January 1, 2020, the Secretary shall
initiate a rulemaking procedure to
determine whether--
``(I) standards in effect for
general service incandescent
lamps should be amended to
reflect lumen ranges with more
stringent maximum wattage than
the standards specified in
paragraph (1)(A); and
``(II) the exemptions for
certain incandescent lamps
should be maintained or
discontinued based, in part, on
exempted lamp sales data
collected by the Secretary from
manufacturers.
``(ii) Scope.--The rulemaking shall
not be limited to incandescent lamp
technologies.
``(iii) Amended standards.--If the
Secretary determines that the standards
in effect for general service
incandescent lamps should be amended,
the Secretary shall publish a final
rule not later than January 1, 2022,
with an effective date that is not
earlier than 3 years after the date on
which the final rule is published.
``(iv) Phased-in effective dates.--
The Secretary shall consider phased-in
effective dates under this subparagraph
after considering--
``(I) the impact of any
amendment on manufacturers,
retiring and repurposing
existing equipment, stranded
investments, labor contracts,
workers, and raw materials; and
``(II) the time needed to
work with retailers and
lighting designers to revise
sales and marketing
strategies.''; and
(B) in subsection (l), by adding at the end
the following:
``(4) Energy efficiency standards for certain
lamps.--
``(A) In general.--The Secretary shall
prescribe an energy efficiency standard for
rough service lamps, vibration service lamps,
3-way incandescent lamps, 2,601-3,300 lumen
general service incandescent lamps, and
shatter-resistant lamps only in accordance with
this paragraph.
``(B) Benchmarks.--Not later than 1 year
after the date of enactment of this paragraph,
the Secretary, in consultation with the
National Electrical Manufacturers Association,
shall--
``(i) collect actual data for United
States unit sales for each of calendar
years 1990 through 2006 for each of the
5 types of lamps described in
subparagraph (A) to determine the
historical growth rate of the type of
lamp; and
``(ii) construct a model for each
type of lamp based on coincident
economic indicators that closely match
the historical annual growth rate of
the type of lamp to provide a neutral
comparison benchmark to model future
unit sales after calendar year 2006.
``(C) Actual sales data.--
``(i) In general.--Effective for each
of calendar years 2010 through 2025,
the Secretary, in consultation with the
National Electrical Manufacturers
Association, shall--
``(I) collect actual United
States unit sales data for each
of 5 types of lamps described
in subparagraph (A); and
``(II) not later than 90 days
after the end of each calendar
year, compare the lamp sales in
that year with the sales
predicted by the comparison
benchmark for each of the 5
types of lamps described in
subparagraph (A).
``(ii) Continuation of tracking.--
``(I) Determination.--Not
later than January 1, 2023, the
Secretary shall determine if
actual sales data should be
tracked for the lamp types
described in subparagraph (A)
after calendar year 2025.
``(II) Continuation.--If the
Secretary finds that the market
share of a lamp type described
in subparagraph (A) could
significantly erode the market
share for general service
lamps, the Secretary shall
continue to track the actual
sales data for the lamp type.
``(D) Rough service lamps.--
``(i) In general.--Effective
beginning with the first year that the
reported annual sales rate for rough
service lamps demonstrates actual unit
sales of rough service lamps that
achieve levels that are at least 100
percent higher than modeled unit sales
for that same year, the Secretary
shall--
``(I) not later than 90 days
after the end of the previous
calendar year, issue a finding
that the index has been
exceeded; and
``(II) not later than the
date that is 1 year after the
end of the previous calendar
year, complete an accelerated
rulemaking to establish an
energy conservation standard
for rough service lamps.
``(ii) Backstop requirement.--If the
Secretary fails to complete an
accelerated rulemaking in accordance
with clause (i)(II), effective
beginning 1 year after the date of the
issuance of the finding under clause
(i)(I), the Secretary shall require
rough service lamps to--
``(I) have a shatter-proof
coating or equivalent
technology that is compliant
with NSF/ANSI 51 and is
designed to contain the glass
if the glass envelope of the
lamp is broken and to provide
effective containment over the
life of the lamp;
``(II) have a maximum 40-watt
limitation; and
``(III) be sold at retail
only in a package containing 1
lamp.
``(E) Vibration service lamps.--
``(i) In general.--Effective
beginning with the first year that the
reported annual sales rate for
vibration service lamps demonstrates
actual unit sales of vibration service
lamps that achieve levels that are at
least 100 percent higher than modeled
unit sales for that same year, the
Secretary shall--
``(I) not later than 90 days
after the end of the previous
calendar year, issue a finding
that the index has been
exceeded; and
``(II) not later than the
date that is 1 year after the
end of the previous calendar
year, complete an accelerated
rulemaking to establish an
energy conservation standard
for vibration service lamps.
``(ii) Backstop requirement.--If the
Secretary fails to complete an
accelerated rulemaking in accordance
with clause (i)(II), effective
beginning 1 year after the date of the
issuance of the finding under clause
(i)(I), the Secretary shall require
vibration service lamps to--
``(I) have a maximum 40-watt
limitation; and
``(II) be sold at retail only
in a package containing 1 lamp.
``(F) 3-way incandescent lamps.--
``(i) In general.--Effective
beginning with the first year that the
reported annual sales rate for 3-way
incandescent lamps demonstrates actual
unit sales of 3-way incandescent lamps
that achieve levels that are at least
100 percent higher than modeled unit
sales for that same year, the Secretary
shall--
``(I) not later than 90 days
after the end of the previous
calendar year, issue a finding
that the index has been
exceeded; and
``(II) not later than the
date that is 1 year after the
end of the previous calendar
year, complete an accelerated
rulemaking to establish an
energy conservation standard
for 3-way incandescent lamps.
``(ii) Backstop requirement.--If the
Secretary fails to complete an
accelerated rulemaking in accordance
with clause (i)(II), effective
beginning 1 year after the date of
issuance of the finding under clause
(i)(I), the Secretary shall require
that--
``(I) each filament in a 3-
way incandescent lamp meet the
new maximum wattage
requirements for the respective
lumen range established under
subsection (i)(1)(A); and
``(II) 3-way lamps be sold at
retail only in a package
containing 1 lamp.
``(G) 2,601-3,300 lumen general service
incandescent lamps.--Effective beginning with
the first year that the reported annual sales
rate demonstrates actual unit sales of 2,601-
3,300 lumen general service incandescent lamps
in the lumen range of 2,601 through 3,300
lumens (or, in the case of a modified spectrum,
in the lumen range of 1,951 through 2,475
lumens) that achieve levels that are at least
100 percent higher than modeled unit sales for
that same year, the Secretary shall impose--
``(i) a maximum 95-watt limitation on
general service incandescent lamps in
the lumen range of 2,601 through 3,300
lumens; and
``(ii) a requirement that those lamps
be sold at retail only in a package
containing 1 lamp.
``(H) Shatter-resistant lamps.--
``(i) In general.--Effective
beginning with the first year that the
reported annual sales rate for shatter-
resistant lamps demonstrates actual
unit sales of shatter-resistant lamps
that achieve levels that are at least
100 percent higher than modeled unit
sales for that same year, the Secretary
shall--
``(I) not later than 90 days
after the end of the previous
calendar year, issue a finding
that the index has been
exceeded; and
``(II) not later than the
date that is 1 year after the
end of the previous calendar
year, complete an accelerated
rulemaking to establish an
energy conservation standard
for shatter-resistant lamps.
``(ii) Backstop requirement.--If the
Secretary fails to complete an
accelerated rulemaking in accordance
with clause (i)(II), effective
beginning 1 year after the date of
issuance of the finding under clause
(i)(I), the Secretary shall impose--
``(I) a maximum wattage
limitation of 40 watts on
shatter resistant lamps; and
``(II) a requirement that
those lamps be sold at retail
only in a package containing 1
lamp.
``(I) Rulemakings before january 1, 2025.--
``(i) In general.--Except as provided
in clause (ii), if the Secretary issues
a final rule prior to January 1, 2025,
establishing an energy conservation
standard for any of the 5 types of
lamps for which data collection is
required under any of subparagraphs (D)
through (G), the requirement to collect
and model data for that type of lamp
shall terminate unless, as part of the
rulemaking, the Secretary determines
that continued tracking is necessary.
``(ii) Backstop requirement.--If the
Secretary imposes a backstop
requirement as a result of a failure to
complete an accelerated rulemaking in
accordance with clause (i)(II) of any
of subparagraphs (D) through (G), the
requirement to collect and model data
for the applicable type of lamp shall
continue for an additional 2 years
after the effective date of the
backstop requirement.''.
(b) Consumer Education and Lamp Labeling.--Section
324(a)(2)(C) of the Energy Policy and Conservation Act (42
U.S.C. 6294(a)(2)(C)) is amended by adding at the end the
following:
``(iii) Rulemaking to consider
effectiveness of lamp labeling.--
``(I) In general.--Not later
than 1 year after the date of
enactment of this clause, the
Commission shall initiate a
rulemaking to consider--
``(aa) the
effectiveness of
current lamp labeling
for power levels or
watts, light output or
lumens, and lamp
lifetime; and
``(bb) alternative
labeling approaches
that will help
consumers to understand
new high-efficiency
lamp products and to
base the purchase
decisions of the
consumers on the most
appropriate source that
meets the requirements
of the consumers for
lighting level, light
quality, lamp lifetime,
and total lifecycle
cost.
``(II) Completion.--The
Commission shall--
``(aa) complete the
rulemaking not later
than the date that is
30 months after the
date of enactment of
this clause; and
``(bb) consider
reopening the
rulemaking not later
than 180 days before
the effective dates of
the standards for
general service
incandescent lamps
established under
section 325(i)(1)(A),
if the Commission
determines that further
labeling changes are
needed to help
consumers understand
lamp alternatives.''.
(c) Market Assessments and Consumer Awareness Program.--
(1) In general.--In cooperation with the
Administrator of the Environmental Protection Agency,
the Secretary of Commerce, the Federal Trade
Commission, lighting and retail industry associations,
energy efficiency organizations, and any other entities
that the Secretary of Energy determines to be
appropriate, the Secretary of Energy shall--
(A) conduct an annual assessment of the
market for general service lamps and compact
fluorescent lamps--
(i) to identify trends in the market
shares of lamp types, efficiencies, and
light output levels purchased by
residential and nonresidential
consumers; and
(ii) to better understand the degree
to which consumer decisionmaking is
based on lamp power levels or watts,
light output or lumens, lamp lifetime,
and other factors, including
information required on labels mandated
by the Federal Trade Commission;
(B) provide the results of the market
assessment to the Federal Trade Commission for
consideration in the rulemaking described in
section 324(a)(2)(C)(iii) of the Energy Policy
and Conservation Act (42 U.S.C.
6294(a)(2)(C)(iii)); and
(C) in cooperation with industry trade
associations, lighting industry members,
utilities, and other interested parties, carry
out a proactive national program of consumer
awareness, information, and education that
broadly uses the media and other effective
communication techniques over an extended
period of time to help consumers understand the
lamp labels and make energy-efficient lighting
choices that meet the needs of consumers.
(2) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $10,000,000 for each of fiscal years 2009
through 2012.
(d) General Rule of Preemption for Energy Conservation
Standards Before Federal Standard Becomes Effective for a
Product.--Section 327(b)(1) of the Energy Policy and
Conservation Act (42 U.S.C. 6297(b)(1)) is amended--
(1) by inserting ``(A)'' after ``(1)'';
(2) by inserting ``or'' after the semicolon at the
end; and
(3) by adding at the end the following:
``(B) in the case of any portion of any regulation
that establishes requirements for general service
incandescent lamps, intermediate base incandescent
lamps, or candelabra base lamps, was enacted or adopted
by the States of California or Nevada before December
4, 2007, except that--
``(i) the regulation adopted by the
California Energy Commission with an effective
date of January 1, 2008, shall only be
effective until the effective date of the
Federal standard for the applicable lamp
category under subparagraphs (A), (B), and (C)
of section 325(i)(1);
``(ii) the States of California and Nevada
may, at any time, modify or adopt a State
standard for general service lamps to conform
with Federal standards with effective dates no
earlier than 12 months prior to the Federal
effective dates prescribed under subparagraphs
(A), (B), and (C) of section 325(i)(1), at
which time any prior regulations adopted by the
States of California or Nevada shall no longer
be effective; and
``(iii) all other States may, at any time,
modify or adopt a State standard for general
service lamps to conform with Federal standards
and effective dates.''.
(e) Prohibited Acts.--Section 332(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following:
``(6) for any manufacturer, distributor, retailer, or
private labeler to distribute in commerce an adapter
that--
``(A) is designed to allow an incandescent
lamp that does not have a medium screw base to
be installed into a fixture or lampholder with
a medium screw base socket; and
``(B) is capable of being operated at a
voltage range at least partially within 110 and
130 volts.''.
(f) Enforcement.--Section 334 of the Energy Policy and
Conservation Act (42 U.S.C. 6304) is amended by inserting after
the second sentence the following: ``Any such action to
restrain any person from distributing in commerce a general
service incandescent lamp that does not comply with the
applicable standard established under section 325(i) or an
adapter prohibited under section 332(a)(6) may also be brought
by the attorney general of a State in the name of the State.''.
(g) Research and Development Program.--
(1) In general.--The Secretary may carry out a
lighting technology research and development program--
(A) to support the research, development,
demonstration, and commercial application of
lamps and related technologies sold, offered
for sale, or otherwise made available in the
United States; and
(B) to assist manufacturers of general
service lamps in the manufacturing of general
service lamps that, at a minimum, achieve the
wattage requirements imposed as a result of the
amendments made by subsection (a).
(2) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $10,000,000 for each of fiscal years 2008
through 2013.
(3) Termination of authority.--The program under this
subsection shall terminate on September 30, 2015.
(h) Reports to Congress.--
(1) Report on mercury use and release.--Not later
than 1 year after the date of enactment of this Act,
the Secretary , in cooperation with the Administrator
of the Environmental Protection Agency, shall submit to
Congress a report describing recommendations relating
to the means by which the Federal Government may reduce
or prevent the release of mercury during the
manufacture, transportation, storage, or disposal of
light bulbs.
(2) Report on rulemaking schedule.--Beginning on July
1, 2013 and semiannually through July 1, 2016, the
Secretary shall submit to the Committee on Energy and
Commerce of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate
a report on--
(A) whether the Secretary will meet the
deadlines for the rulemakings required under
this section;
(B) a description of any impediments to
meeting the deadlines; and
(C) a specific plan to remedy any failures,
including recommendations for additional
legislation or resources.
(3) National academy review.--
(A) In general.--Not later than December 31,
2009, the Secretary shall enter into an
arrangement with the National Academy of
Sciences to provide a report by December 31,
2013, and an updated report by July 31, 2015.
The report should include--
(i) the status of advanced solid
state lighting research, development,
demonstration and commercialization;
(ii) the impact on the types of
lighting available to consumers of an
energy conservation standard requiring
a minimum of 45 lumens per watt for
general service lighting effective in
2020; and
(iii) the time frame for the
commercialization of lighting that
could replace current incandescent and
halogen incandescent lamp technology
and any other new technologies
developed to meet the minimum standards
required under subsection (a) (3) of
this section.
(B) Reports.--The reports shall be
transmitted to the Committee on Energy and
Commerce of the House of Representatives and
the Committee on Energy and Natural Resources
of the Senate.
SEC. 322. INCANDESCENT REFLECTOR LAMP EFFICIENCY STANDARDS.
(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by section
316(c)(1)(D)) is amended--
(1) in paragraph (30)(C)(ii)--
(A) in the matter preceding subclause (I)--
(i) by striking ``or similar bulb
shapes (excluding ER or BR)'' and
inserting ``ER, BR, BPAR, or similar
bulb shapes''; and
(ii) by striking ``2.75'' and
inserting ``2.25''; and
(B) by striking ``is either--'' and all that
follows through subclause (II) and inserting
``has a rated wattage that is 40 watts or
higher''; and
(2) by adding at the end the following:
``(54) BPAR incandescent reflector lamp.--The term
`BPAR incandescent reflector lamp' means a reflector
lamp as shown in figure C78.21-278 on page 32 of ANSI
C78.21-2003.
``(55) BR incandescent reflector lamp; br30; br40.--
``(A) BR incandescent reflector lamp.--The
term `BR incandescent reflector lamp' means a
reflector lamp that has--
``(i) a bulged section below the
major diameter of the bulb and above
the approximate baseline of the bulb,
as shown in figure 1 (RB) on page 7 of
ANSI C79.1-1994, incorporated by
reference in section 430.22 of title
10, Code of Federal Regulations (as in
effect on the date of enactment of this
paragraph); and
``(ii) a finished size and shape
shown in ANSI C78.21-1989, including
the referenced reflective
characteristics in part 7 of ANSI
C78.21-1989, incorporated by reference
in section 430.22 of title 10, Code of
Federal Regulations (as in effect on
the date of enactment of this
paragraph).
``(B) BR30.--The term `BR30' means a BR
incandescent reflector lamp with a diameter of
30/8ths of an inch.
``(C) BR40.--The term `BR40' means a BR
incandescent reflector lamp with a diameter of
40/8ths of an inch.
``(56) ER incandescent reflector lamp; er30; er40.--
``(A) ER incandescent reflector lamp.--The
term `ER incandescent reflector lamp' means a
reflector lamp that has--
``(i) an elliptical section below the
major diameter of the bulb and above
the approximate baseline of the bulb,
as shown in figure 1 (RE) on page 7 of
ANSI C79.1-1994, incorporated by
reference in section 430.22 of title
10, Code of Federal Regulations (as in
effect on the date of enactment of this
paragraph); and
``(ii) a finished size and shape
shown in ANSI C78.21-1989, incorporated
by reference in section 430.22 of title
10, Code of Federal Regulations (as in
effect on the date of enactment of this
paragraph).
``(B) ER30.--The term `ER30' means an ER
incandescent reflector lamp with a diameter of
30/8ths of an inch.
``(C) ER40.--The term `ER40' means an ER
incandescent reflector lamp with a diameter of
40/8ths of an inch.
``(57) R20 incandescent reflector lamp.--The term
`R20 incandescent reflector lamp' means a reflector
lamp that has a face diameter of approximately 2.5
inches, as shown in figure 1(R) on page 7 of ANSI
C79.1-1994.''.
(b) Standards for Fluorescent Lamps and Incandescent
Reflector Lamps.--Section 325(i) of the Energy Policy and
Conservation Act (42 U.S.C. 6995(i)) is amended by striking
paragraph (1) and inserting the following:
``(1) Standards.--
``(A) Definition of effective date.--In this
paragraph (other than subparagraph (D)), the
term `effective date' means, with respect to
each type of lamp specified in a table
contained in subparagraph (B), the last day of
the period of months corresponding to that type
of lamp (as specified in the table) that
follows October 24, 1992.
``(B) Minimum standards.--Each of the
following general service fluorescent lamps and
incandescent reflector lamps manufactured after
the effective date specified in the tables
contained in this paragraph shall meet or
exceed the following lamp efficacy and CRI
standards:
``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Effective Date
Lamp Type Nominal Lamp Minimum CRI Minimum Average Lamp (Period of
Wattage Efficacy (LPW) Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin........... >35 W 69 75.0 36
35 W 45 75.0 36
2-foot U-shaped................ >35 W 69 68.0 36
35 W 45 64.0 36
8-foot slimline................ 65 W 69 80.0 18
65 W 45 80.0 18
8-foot high output............. >100 W 69 80.0 18
100 W 45 80.0 18
----------------------------------------------------------------------------------------------------------------
``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
Effective Date
Nominal Lamp Wattage Minimum Average Lamp (Period of
Efficacy (LPW) Months)
------------------------------------------------------------------------
40-50....................... 10.5 36
51-66....................... 11.0 36
67-85....................... 12.5 36
86-115...................... 14.0 36
116-155...................... 14.5 36
156-205...................... 15.0 36
------------------------------------------------------------------------
``(C) Exemptions.--The standards specified in
subparagraph (B) shall not apply to the
following types of incandescent reflector
lamps:
``(i) Lamps rated at 50 watts or less
that are ER30, BR30, BR40, or ER40
lamps.
``(ii) Lamps rated at 65 watts that
are BR30, BR40, or ER40 lamps.
``(iii) R20 incandescent reflector
lamps rated 45 watts or less.
``(D) Effective dates.--
``(i) ER, br, and bpar lamps.--The
standards specified in subparagraph (B)
shall apply with respect to ER
incandescent reflector lamps, BR
incandescent reflector lamps, BPAR
incandescent reflector lamps, and
similar bulb shapes on and after
January 1, 2008.
``(ii) Lamps between 2.25-2.75 inches
in diameter.--The standards specified
in subparagraph (B) shall apply with
respect to incandescent reflector lamps
with a diameter of more than 2.25
inches, but not more than 2.75 inches,
on and after the later of January 1,
2008, or the date that is 180 days
after the date of enactment of the
Energy Independence and Security Act of
2007.''.
SEC. 323. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE ENERGY
SYSTEMS.
(a) Estimate of Energy Performance in Prospectus.--Section
3307(b) of title 40, United States Code, is amended--
(1) by striking ``and'' at the end of paragraph (5);
(2) by striking the period at the end of paragraph
(6) and inserting ``; and''; and
(3) by inserting after paragraph (6) the following:
``(7) with respect to any prospectus for the
construction, alteration, or acquisition of any
building or space to be leased, an estimate of the
future energy performance of the building or space and
a specific description of the use of energy efficient
and renewable energy systems, including photovoltaic
systems, in carrying out the project.''.
(b) Minimum Performance Requirements for Leased Space.--
Section 3307 of such of title is amended--
(1) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f) Minimum Performance Requirements for Leased Space.--
With respect to space to be leased, the Administrator shall
include, to the maximum extent practicable, minimum performance
requirements requiring energy efficiency and the use of
renewable energy.''.
(c) Use of Energy Efficient Lighting Fixtures and Bulbs.--
(1) In general.--Chapter 33 of such title is
amended--
(A) by redesignating sections 3313, 3314, and
3315 as sections 3314, 3315, and 3316,
respectively; and
(B) by inserting after section 3312 the
following:
``Sec. 3313. Use of energy efficient lighting fixtures and bulbs
``(a) Construction, Alteration, and Acquisition of Public
Buildings.--Each public building constructed, altered, or
acquired by the Administrator of General Services shall be
equipped, to the maximum extent feasible as determined by the
Administrator, with lighting fixtures and bulbs that are energy
efficient.
``(b) Maintenance of Public Buildings.--Each lighting fixture
or bulb that is replaced by the Administrator in the normal
course of maintenance of public buildings shall be replaced, to
the maximum extent feasible, with a lighting fixture or bulb
that is energy efficient.
``(c) Considerations.--In making a determination under this
section concerning the feasibility of installing a lighting
fixture or bulb that is energy efficient, the Administrator
shall consider--
``(1) the life-cycle cost effectiveness of the
fixture or bulb;
``(2) the compatibility of the fixture or bulb with
existing equipment;
``(3) whether use of the fixture or bulb could result
in interference with productivity;
``(4) the aesthetics relating to use of the fixture
or bulb; and
``(5) such other factors as the Administrator
determines appropriate.
``(d) Energy Star.--A lighting fixture or bulb shall be
treated as being energy efficient for purposes of this section
if--
``(1) the fixture or bulb is certified under the
Energy Star program established by section 324A of the
Energy Policy and Conservation Act (42 U.S.C. 6294a);
``(2) in the case of all light-emitting diode (LED)
luminaires, lamps, and systems whose efficacy (lumens
per watt) and Color Rendering Index (CRI) meet the
Department of Energy requirements for minimum luminaire
efficacy and CRI for the Energy Star certification, as
verified by an independent third-party testing
laboratory that the Administrator and the Secretary of
Energy determine conducts its tests according to the
procedures and recommendations of the Illuminating
Engineering Society of North America, even if the
luminaires, lamps, and systems have not received such
certification; or
``(3) the Administrator and the Secretary of Energy
have otherwise determined that the fixture or bulb is
energy efficient.
``(e) Additional Energy Efficient Lighting Designations.--The
Administrator of the Environmental Protection Agency and the
Secretary of Energy shall give priority to establishing Energy
Star performance criteria or Federal Energy Management Program
designations for additional lighting product categories that
are appropriate for use in public buildings.
``(f) Guidelines.--The Administrator shall develop guidelines
for the use of energy efficient lighting technologies that
contain mercury in child care centers in public buildings.
``(g) Applicability of Buy American Act.--Acquisitions
carried out pursuant to this section shall be subject to the
requirements of the Buy American Act (41 U.S.C. 10c et seq.).
``(h) Effective Date.--The requirements of subsections (a)
and (b) shall take effect one year after the date of enactment
of this subsection.''.
(2) Clerical amendment.--The analysis for such
chapter is amended by striking the items relating to
sections 3313, 3314, and 3315 and inserting the
following:
``3313. Use of energy efficient lighting fixtures and bulbs.
``3314. Delegation.
``3315. Report to Congress.
``3316. Certain authority not affected.''.
(d) Evaluation Factor.--Section 3310 of such title is
amended--
(1) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) shall include in the solicitation for any lease
requiring a prospectus under section 3307 an evaluation
factor considering the extent to which the offeror will
promote energy efficiency and the use of renewable
energy;''.
SEC. 324. METAL HALIDE LAMP FIXTURES.
(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by section
322(a)(2)) is amended by adding at the end the following:
``(58) Ballast.--The term `ballast' means a device
used with an electric discharge lamp to obtain
necessary circuit conditions (voltage, current, and
waveform) for starting and operating.
``(59) Ballast efficiency.--
``(A) In general.--The term `ballast
efficiency' means, in the case of a high
intensity discharge fixture, the efficiency of
a lamp and ballast combination, expressed as a
percentage, and calculated in accordance with
the following formula: Efficiency =
Pout/Pin.
``(B) Efficiency formula.--For the purpose of
subparagraph (A)--
``(i) Pout shall equal the
measured operating lamp wattage;
``(ii) Pin shall equal the
measured operating input wattage;
``(iii) the lamp, and the capacitor
when the capacitor is provided, shall
constitute a nominal system in
accordance with the ANSI Standard
C78.43-2004;
``(iv) for ballasts with a frequency
of 60 Hz, Pin and
Pout shall be measured after
lamps have been stabilized according to
section 4.4 of ANSI Standard C82.6-2005
using a wattmeter with accuracy
specified in section 4.5 of ANSI
Standard C82.6-2005; and
``(v) for ballasts with a frequency
greater than 60 Hz, Pin and
Pout shall have a basic
accuracy of 0.5 percent
at the higher of--
``(I) 3 times the output
operating frequency of the
ballast; or
``(II) 2 kHz for ballast with
a frequency greater than 60 Hz.
``(C) Modification.--The Secretary may, by
rule, modify the definition of `ballast
efficiency' if the Secretary determines that
the modification is necessary or appropriate to
carry out the purposes of this Act.
``(60) Electronic ballast.--The term `electronic
ballast' means a device that uses semiconductors as the
primary means to control lamp starting and operation.
``(61) General lighting application.--The term
`general lighting application' means lighting that
provides an interior or exterior area with overall
illumination.
``(62) Metal halide ballast.--The term `metal halide
ballast' means a ballast used to start and operate
metal halide lamps.
``(63) Metal halide lamp.--The term `metal halide
lamp' means a high intensity discharge lamp in which
the major portion of the light is produced by radiation
of metal halides and their products of dissociation,
possibly in combination with metallic vapors.
``(64) Metal halide lamp fixture.--The term `metal
halide lamp fixture' means a light fixture for general
lighting application designed to be operated with a
metal halide lamp and a ballast for a metal halide
lamp.
``(65) Probe-start metal halide ballast.--The term
`probe-start metal halide ballast' means a ballast
that--
``(A) starts a probe-start metal halide lamp
that contains a third starting electrode
(probe) in the arc tube; and
``(B) does not generally contain an igniter
but instead starts lamps with high ballast open
circuit voltage.
``(66) Pulse-start metal halide ballast.--
``(A) In general.--The term `pulse-start
metal halide ballast' means an electronic or
electromagnetic ballast that starts a pulse-
start metal halide lamp with high voltage
pulses.
``(B) Starting process.--For the purpose of
subparagraph (A)--
``(i) lamps shall be started by first
providing a high voltage pulse for
ionization of the gas to produce a glow
discharge; and
``(ii) to complete the starting
process, power shall be provided by the
ballast to sustain the discharge
through the glow-to-arc transition.''.
(b) Coverage.--Section 322(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6292(a)) is amended--
(1) by redesignating paragraph (19) as paragraph
(20); and
(2) by inserting after paragraph (18) the following:
``(19) Metal halide lamp fixtures.''.
(c) Test Procedures.--Section 323(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6293(b)) (as amended by section
301(b)) is amended by adding at the end the following:
``(18) Metal halide lamp ballasts.--Test procedures
for metal halide lamp ballasts shall be based on ANSI
Standard C82.6-2005, entitled `Ballasts for High
Intensity Discharge Lamps--Method of Measurement'.''.
(d) Labeling.--Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended--
(1) by redesignating subparagraphs (C) through (G) as
subparagraphs (D) through (H), respectively; and
(2) by inserting after subparagraph (B) the
following:
``(C) Metal halide lamp fixtures.--
``(i) In general.--The Commission
shall issue labeling rules under this
section applicable to the covered
product specified in section 322(a)(19)
and to which standards are applicable
under section 325.
``(ii) Labeling.--The rules shall
provide that the labeling of any metal
halide lamp fixture manufactured on or
after the later of January 1, 2009, or
the date that is 270 days after the
date of enactment of this subparagraph,
shall indicate conspicuously, in a
manner prescribed by the Commission
under subsection (b) by July 1, 2008, a
capital letter `E' printed within a
circle on the packaging of the fixture,
and on the ballast contained in the
fixture.''.
(e) Standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) (as amended by section 310)
is amended--
(1) by redesignating subsection (hh) as subsection
(ii);
(2) by inserting after subsection (gg) the following:
``(hh) Metal Halide Lamp Fixtures.--
``(1) Standards.--
``(A) In general.--Subject to subparagraphs
(B) and (C), metal halide lamp fixtures
designed to be operated with lamps rated
greater than or equal to 150 watts but less
than or equal to 500 watts shall contain--
``(i) a pulse-start metal halide
ballast with a minimum ballast
efficiency of 88 percent;
``(ii) a magnetic probe-start ballast
with a minimum ballast efficiency of 94
percent; or
``(iii) a nonpulse-start electronic
ballast with--
``(I) a minimum ballast
efficiency of 92 percent for
wattages greater than 250
watts; and
``(II) a minimum ballast
efficiency of 90 percent for
wattages less than or equal to
250 watts.
``(B) Exclusions.--The standards established
under subparagraph (A) shall not apply to--
``(i) fixtures with regulated lag
ballasts;
``(ii) fixtures that use electronic
ballasts that operate at 480 volts; or
``(iii) fixtures that--
``(I) are rated only for 150
watt lamps;
``(II) are rated for use in
wet locations, as specified by
the National Electrical Code
2002, section 410.4(A); and
``(III) contain a ballast
that is rated to operate at
ambient air temperatures above
50\o\ C, as specified by UL
1029-2001.
``(C) Application.--The standards established
under subparagraph (A) shall apply to metal
halide lamp fixtures manufactured on or after
the later of--
``(i) January 1, 2009; or
``(ii) the date that is 270 days
after the date of enactment of this
subsection.
``(2) Final rule by january 1, 2012.--
``(A) In general.--Not later than January 1,
2012, the Secretary shall publish a final rule
to determine whether the standards established
under paragraph (1) should be amended.
``(B) Administration.--The final rule shall--
``(i) contain any amended standard;
and
``(ii) apply to products manufactured
on or after January 1, 2015.
``(3) Final rule by january 1, 2019.--
``(A) In general.--Not later than January 1,
2019, the Secretary shall publish a final rule
to determine whether the standards then in
effect should be amended.
``(B) Administration.--The final rule shall--
``(i) contain any amended standards;
and
``(ii) apply to products manufactured
after January 1, 2022.
``(4) Design and performance requirements.--
Notwithstanding any other provision of law, any
standard established pursuant to this subsection may
contain both design and performance requirements.'';
and
(3) in paragraph (2) of subsection (ii) (as
redesignated by paragraph (2)), by striking ``(gg)''
each place it appears and inserting ``(hh)''.
(f) Effect on Other Law.--Section 327(c) of the Energy Policy
and Conservation Act (42 U.S.C. 6297(c)) is amended--
(1) in paragraph (8)(B), by striking the period at
the end and inserting ``; and''; and
(2) by adding at the end the following:
``(9) is a regulation concerning metal halide lamp
fixtures adopted by the California Energy Commission on
or before January 1, 2011, except that--
``(A) if the Secretary fails to issue a final
rule within 180 days after the deadlines for
rulemakings in section 325(hh), notwithstanding
any other provision of this section, preemption
shall not apply to a regulation concerning
metal halide lamp fixtures adopted by the
California Energy Commission--
``(i) on or before July 1, 2015, if
the Secretary fails to meet the
deadline specified in section
325(hh)(2); or
``(ii) on or before July 1, 2022, if
the Secretary fails to meet the
deadline specified in section
325(hh)(3).''.
SEC. 325. ENERGY EFFICIENCY LABELING FOR CONSUMER ELECTRONIC PRODUCTS.
(a) In General.--Section 324(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)) (as amended by section
324(d)) is amended--
(1) in paragraph (2), by adding at the end the
following:
``(I) Labeling requirements.--
``(i) In general.--Subject to clauses
(ii) through (iv), not later than 18
months after the date of issuance of
applicable Department of Energy testing
procedures, the Commission, in
consultation with the Secretary and the
Administrator of the Environmental
Protection Agency (acting through the
Energy Star program), shall, by
regulation, prescribe labeling or other
disclosure requirements for the energy
use of--
``(I) televisions;
``(II) personal computers;
``(III) cable or satellite
set-top boxes;
``(IV) stand-alone digital
video recorder boxes; and
``(V) personal computer
monitors.
``(ii) Alternate testing
procedures.--In the absence of
applicable testing procedures described
in clause (i) for products described in
subclauses (I) through (V) of that
clause, the Commission may, by
regulation, prescribe labeling or other
disclosure requirements for a consumer
product category described in clause
(i) if the Commission--
``(I) identifies adequate
non-Department of Energy
testing procedures for those
products; and
``(II) determines that
labeling of, or other
disclosures relating to, those
products is likely to assist
consumers in making purchasing
decisions.
``(iii) Deadline and requirements for
labeling.--
``(I) Deadline.--Not later
than 18 months after the date
of promulgation of any
requirements under clause (i)
or (ii), the Commission shall
require labeling of, or other
disclosure requirements for,
electronic products described
in clause (i).
``(II) Requirements.--The
requirements prescribed under
clause (i) or (ii) may include
specific requirements for each
electronic product to be
labeled with respect to the
placement, size, and content of
Energy Guide labels.
``(iv) Determination of
feasibility.--Clause (i) or (ii) shall
not apply in any case in which the
Commission determines that labeling in
accordance with this subsection--
``(I) is not technologically
or economically feasible; or
``(II) is not likely to
assist consumers in making
purchasing decisions.''; and
(2) by adding at the end the following:
``(6) Authority to include additional product
categories.--The Commission may, by regulation, require
labeling or other disclosures in accordance with this
subsection for any consumer product not specified in
this subsection or section 322 if the Commission
determines that labeling for the product is likely to
assist consumers in making purchasing decisions.''.
(b) Content of Label.--Section 324(c) of the Energy Policy
and Conservation Act (42 U.S.C. 6924(c)) is amended by adding
at the end the following:
``(9) Discretionary application.--The Commission may
apply paragraphs (1), (2), (3), (5), and (6) of this
subsection to the labeling of any product covered by
paragraph (2)(I) or (6) of subsection (a).''.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
SEC. 401. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator'' means
the Administrator of General Services.
(2) Advisory committee.--The term ``Advisory
Committee'' means the Green Building Advisory Committee
established under section 484.
(3) Commercial director.--The term ``Commercial
Director'' means the individual appointed to the
position established under section 421.
(4) Consortium.--The term ``Consortium'' means the
High-Performance Green Building Partnership Consortium
created in response to section 436(c)(1) to represent
the private sector in a public-private partnership to
promote high-performance green buildings and zero-net-
energy commercial buildings.
(5) Cost-effective lighting technology.--
(A) In general.--The term ``cost-effective
lighting technology'' means a lighting
technology that--
(i) will result in substantial
operational cost savings by ensuring an
installed consumption of not more than
1 watt per square foot; or
(ii) is contained in a list under--
(I) section 553 of Public Law
95-619 (42 U.S.C. 8259b);
(II) Federal acquisition
regulation 23-203; and
(III) is at least as energy-
conserving as required by other
provisions of this Act,
including the requirements of
this title and title III which
shall be applicable to the
extent that they would achieve
greater energy savings than
provided under clause (i) or
this clause.
(B) Inclusions.--The term ``cost-effective
lighting technology'' includes--
(i) lamps;
(ii) ballasts;
(iii) luminaires;
(iv) lighting controls;
(v) daylighting; and
(vi) early use of other highly cost-
effective lighting technologies.
(6) Cost-effective technologies and practices.--The
term ``cost-effective technologies and practices''
means a technology or practice that--
(A) will result in substantial operational
cost savings by reducing electricity or fossil
fuel consumption, water, or other utility
costs, including use of geothermal heat pumps;
(B) complies with the provisions of section
553 of Public Law 95-619 (42 U.S.C. 8259b) and
Federal acquisition regulation 23-203; and
(C) is at least as energy and water
conserving as required under this title,
including sections 431 through 435, and title
V, including section 511 through 525, which
shall be applicable to the extent that they are
more stringent or require greater energy or
water savings than required by this section.
(7) Federal director.--The term ``Federal Director''
means the individual appointed to the position
established under section 436(a).
(8) Federal facility.--The term ``Federal facility''
means any building that is constructed, renovated,
leased, or purchased in part or in whole for use by the
Federal Government.
(9) Operational cost savings.--
(A) In general.--The term ``operational cost
savings'' means a reduction in end-use
operational costs through the application of
cost-effective technologies and practices or
geothermal heat pumps, including a reduction in
electricity consumption relative to consumption
by the same customer or at the same facility in
a given year, as defined in guidelines
promulgated by the Administrator pursuant to
section 329(b) of the Clean Air Act, that
achieves cost savings sufficient to pay the
incremental additional costs of using cost-
effective technologies and practices including
geothermal heat pumps by not later than the
later of the date established under sections
431 through 434, or--
(i) for cost-effective technologies
and practices, the date that is 5 years
after the date of installation; and
(ii) for geothermal heat pumps, as
soon as practical after the date of
installation of the applicable
geothermal heat pump.
(B) Inclusions.--The term ``operational cost
savings'' includes savings achieved at a
facility as a result of--
(i) the installation or use of cost-
effective technologies and practices;
or
(ii) the planting of vegetation that
shades the facility and reduces the
heating, cooling, or lighting needs of
the facility.
(C) Exclusion.--The term ``operational cost
savings'' does not include savings from
measures that would likely be adopted in the
absence of cost-effective technology and
practices programs, as determined by the
Administrator.
(10) Geothermal heat pump.--The term ``geothermal
heat pump'' means any heating or air conditioning
technology that--
(A) uses the ground or ground water as a
thermal energy source to heat, or as a thermal
energy sink to cool, a building; and
(B) meets the requirements of the Energy Star
program of the Environmental Protection Agency
applicable to geothermal heat pumps on the date
of purchase of the technology.
(11) GSA facility.--
(A) In general.--The term ``GSA facility''
means any building, structure, or facility, in
whole or in part (including the associated
support systems of the building, structure, or
facility) that--
(i) is constructed (including
facilities constructed for lease),
renovated, or purchased, in whole or in
part, by the Administrator for use by
the Federal Government; or
(ii) is leased, in whole or in part,
by the Administrator for use by the
Federal Government--
(I) except as provided in
subclause (II), for a term of
not less than 5 years; or
(II) for a term of less than
5 years, if the Administrator
determines that use of cost-
effective technologies and
practices would result in the
payback of expenses.
(B) Inclusion.--The term ``GSA facility''
includes any group of buildings, structures, or
facilities described in subparagraph (A)
(including the associated energy-consuming
support systems of the buildings, structures,
and facilities).
(C) Exemption.--The Administrator may exempt
from the definition of ``GSA facility'' under
this paragraph a building, structure, or
facility that meets the requirements of section
543(c) of Public Law 95-619 (42 U.S.C.
8253(c)).
(12) High-performance building.--The term ``high
performance building'' means a building that integrates
and optimizes on a life cycle basis all major high
performance attributes, including energy conservation,
environment, safety, security, durability,
accessibility, cost-benefit, productivity,
sustainability, functionality, and operational
considerations.
(13) High-performance green building.--The term
``high-performance green building'' means a high-
performance building that, during its life-cycle, as
compared with similar buildings (as measured by
Commercial Buildings Energy Consumption Survey or
Residential Energy Consumption Survey data from the
Energy Information Agency)--
(A) reduces energy, water, and material
resource use;
(B) improves indoor environmental quality,
including reducing indoor pollution, improving
thermal comfort, and improving lighting and
acoustic environments that affect occupant
health and productivity;
(C) reduces negative impacts on the
environment throughout the life-cycle of the
building, including air and water pollution and
waste generation;
(D) increases the use of environmentally
preferable products, including biobased,
recycled content, and nontoxic products with
lower life-cycle impacts;
(E) increases reuse and recycling
opportunities;
(F) integrates systems in the building;
(G) reduces the environmental and energy
impacts of transportation through building
location and site design that support a full
range of transportation choices for users of
the building; and
(H) considers indoor and outdoor effects of
the building on human health and the
environment, including--
(i) improvements in worker
productivity;
(ii) the life-cycle impacts of
building materials and operations; and
(iii) other factors that the Federal
Director or the Commercial Director
consider to be appropriate.
(14) Life-cycle.--The term ``life-cycle'', with
respect to a high-performance green building, means all
stages of the useful life of the building (including
components, equipment, systems, and controls of the
building) beginning at conception of a high-performance
green building project and continuing through site
selection, design, construction, landscaping,
commissioning, operation, maintenance, renovation,
deconstruction or demolition, removal, and recycling of
the high-performance green building.
(15) Life-cycle assessment.--The term ``life-cycle
assessment'' means a comprehensive system approach for
measuring the environmental performance of a product or
service over the life of the product or service,
beginning at raw materials acquisition and continuing
through manufacturing, transportation, installation,
use, reuse, and end-of-life waste management.
(16) Life-cycle costing.--The term ``life-cycle
costing'', with respect to a high-performance green
building, means a technique of economic evaluation
that--
(A) sums, over a given study period, the
costs of initial investment (less resale
value), replacements, operations (including
energy use), and maintenance and repair of an
investment decision; and
(B) is expressed--
(i) in present value terms, in the
case of a study period equivalent to
the longest useful life of the
building, determined by taking into
consideration the typical life of such
a building in the area in which the
building is to be located; or
(ii) in annual value terms, in the
case of any other study period.
(17) Office of commercial high-performance green
buildings.--The term ``Office of Commercial High-
Performance Green Buildings'' means the Office of
Commercial High-Performance Green Buildings established
under section 421(a).
(18) Office of federal high-performance green
buildings.--The term ``Office of Federal High-
Performance Green Buildings'' means the Office of
Federal High-Performance Green Buildings established
under section 436(a).
(19) Practices.--The term ``practices'' means design,
financing, permitting, construction, commissioning,
operation and maintenance, and other practices that
contribute to achieving zero-net-energy buildings or
facilities.
(20) Zero-net-energy commercial building.--The term
``zero-net-energy commercial building'' means a
commercial building that is designed, constructed, and
operated to--
(A) require a greatly reduced quantity of
energy to operate;
(B) meet the balance of energy needs from
sources of energy that do not produce
greenhouse gases;
(C) therefore result in no net emissions of
greenhouse gases; and
(D) be economically viable.
Subtitle A--Residential Building Efficiency
SEC. 411. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.
(a) In General.--Section 422 of the Energy Conservation and
Production Act (42 U.S.C. 6872) is amended by striking ``
appropriated $500,000,000 for fiscal year 2006, $600,000,000
for fiscal year 2007, and $700,000,000 for fiscal year 2008''
and inserting ``appropriated--
``(1) $750,000,000 for fiscal year 2008;
``(2) $900,000,000 for fiscal year 2009;
``(3) $1,050,000,000 for fiscal year 2010;
``(4) $1,200,000,000 for fiscal year 2011; and
``(5) $1,400,000,000 for fiscal year 2012.''.
(b) Sustainable Energy Resources for Consumers Grants.--
(1) In general.--The Secretary may make funding
available to local weatherization agencies from amounts
authorized under the amendment made by subsection (a)
to expand the weatherization assistance program for
residential buildings to include materials, benefits,
and renewable and domestic energy technologies not
covered by the program (as of the date of enactment of
this Act), if the State weatherization grantee
certifies that the applicant has the capacity to carry
out the proposed activities and that the grantee will
include the project in the financial oversight of the
grantee of the weatherization assistance program.
(2) Priority.--In selecting grant recipients under
this subsection, the Secretary shall give priority to--
(A) the expected effectiveness and benefits
of the proposed project to low- and moderate-
income energy consumers;
(B) the potential for replication of
successful results;
(C) the impact on the health and safety and
energy costs of consumers served; and
(D) the extent of partnerships with other
public and private entities that contribute to
the resources and implementation of the
program, including financial partnerships.
(3) Funding.--
(A) In general.--Except as provided in
paragraph (2), the amount of funds used for
projects described in paragraph (1) may equal
up to 2 percent of the amount of funds made
available for any fiscal year under section 422
of the Energy Conservation and Production Act
(42 U.S.C. 6872).
(B) Exception.--No funds may be used for
sustainable energy resources for consumers
grants for a fiscal year under this subsection
if the amount of funds made available for the
fiscal year to carry out the Weatherization
Assistance Program for Low-Income Persons
established under part A of title IV of the
Energy Conservation and Production Act (42
U.S.C. 6861 et seq.) is less than $275,000,000.
(c) Definition of State.--Section 412 of the Energy
Conservation and Production Act (42 U.S.C. 6862) is amended by
striking paragraph (8) and inserting the following:
``(8) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of
the United States.''.
SEC. 412. STUDY OF RENEWABLE ENERGY REBATE PROGRAMS.
(a) In General.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall conduct, and submit
to Congress a report on, a study regarding the rebate programs
established under sections 124 and 206(c) of the Energy Policy
Act of 2005 (42 U.S.C. 15821, 15853).
(b) Components.--In conducting the study, the Secretary
shall--
(1) develop a plan for how the rebate programs would
be carried out if the programs were funded; and
(2) determine the minimum amount of funding the
program would need to receive in order to accomplish
the goals of the programs.
SEC. 413. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED HOUSING.
(a) Establishment of Standards.--
(1) In general.--Not later than 4 years after the
date of enactment of this Act, the Secretary shall by
regulation establish standards for energy efficiency in
manufactured housing.
(2) Notice, comment, and consultation.--Standards
described in paragraph (1) shall be established after--
(A) notice and an opportunity for comment by
manufacturers of manufactured housing and other
interested parties; and
(B) consultation with the Secretary of
Housing and Urban Development, who may seek
further counsel from the Manufactured Housing
Consensus Committee.
(b) Requirements.--
(1) International energy conservation code.--The
energy conservation standards established under this
section shall be based on the most recent version of
the International Energy Conservation Code (including
supplements), except in cases in which the Secretary
finds that the code is not cost-effective, or a more
stringent standard would be more cost-effective, based
on the impact of the code on the purchase price of
manufactured housing and on total life-cycle
construction and operating costs.
(2) Considerations.--The energy conservation
standards established under this section may--
(A) take into consideration the design and
factory construction techniques of manufactured
homes;
(B) be based on the climate zones established
by the Department of Housing and Urban
Development rather than the climate zones under
the International Energy Conservation Code; and
(C) provide for alternative practices that
result in net estimated energy consumption
equal to or less than the specified standards.
(3) Updating.--The energy conservation standards
established under this section shall be updated not
later than--
(A) 1 year after the date of enactment of
this Act; and
(B) 1 year after any revision to the
International Energy Conservation Code.
(c) Enforcement.--Any manufacturer of manufactured housing
that violates a provision of the regulations under subsection
(a) is liable to the United States for a civil penalty in an
amount not exceeding 1 percent of the manufacturer's retail
list price of the manufactured housing.
Subtitle B--High-Performance Commercial Buildings
SEC. 421. COMMERCIAL HIGH-PERFORMANCE GREEN BUILDINGS.
(a) Director of Commercial High-Performance Green
Buildings.--Notwithstanding any other provision of law, the
Secretary, acting through the Assistant Secretary of Energy
Efficiency and Renewable Energy, shall appoint a Director of
Commercial High-Performance Green Buildings to a position in
the career-reserved Senior Executive service, with the
principal responsibility to--
(1) establish and manage the Office of Commercial
High-Performance Green Buildings; and
(2) carry out other duties as required under this
subtitle.
(b) Qualifications.--The Commercial Director shall be an
individual, who by reason of professional background and
experience, is specifically qualified to carry out the duties
required under this subtitle.
(c) Duties.--The Commercial Director shall, with respect to
development of high-performance green buildings and zero-energy
commercial buildings nationwide--
(1) coordinate the activities of the Office of
Commercial High-Performance Green Buildings with the
activities of the Office of Federal High-Performance
Green Buildings;
(2) develop the legal predicates and agreements for,
negotiate, and establish one or more public-private
partnerships with the Consortium, members of the
Consortium, and other capable parties meeting the
qualifications of the Consortium, to further such
development;
(3) represent the public and the Department in
negotiating and performing in accord with such public-
private partnerships;
(4) use appropriated funds in an effective manner to
encourage the maximum investment of private funds to
achieve such development;
(5) promote research and development of high
performance green buildings, consistent with section
423; and
(6) jointly establish with the Federal Director a
national high-performance green building clearinghouse
in accordance with section 423(1), which shall provide
high-performance green building information and
disseminate research results through--
(A) outreach;
(B) education; and
(C) the provision of technical assistance.
(d) Reporting.--The Commercial Director shall report directly
to the Assistant Secretary for Energy Efficiency and Renewable
Energy, or to other senior officials in a way that facilitates
the integrated program of this subtitle for both energy
efficiency and renewable energy and both technology development
and technology deployment.
(e) Coordination.--The Commercial Director shall ensure full
coordination of high-performance green building information and
activities, including activities under this subtitle, within
the Federal Government by working with the General Services
Administration and all relevant agencies, including, at a
minimum--
(1) the Environmental Protection Agency;
(2) the Office of the Federal Environmental
Executive;
(3) the Office of Federal Procurement Policy;
(4) the Department of Energy, particularly the
Federal Energy Management Program;
(5) the Department of Health and Human Services;
(6) the Department of Housing and Urban Development;
(7) the Department of Defense;
(8) the National Institute of Standards and
Technology;
(9) the Department of Transportation;
(10) the Office of Science Technology and Policy; and
(11) such nonprofit high-performance green building
rating and analysis entities as the Commercial Director
determines can offer support, expertise, and review
services.
(f) High-Performance Green Building Partnership Consortium.--
(1) Recognition.--Not later than 90 days after the
date of enactment of this Act, the Commercial Director
shall formally recognize one or more groups that
qualify as a high-performance green building
partnership consortium.
(2) Representation to qualify.--To qualify under this
section, any consortium shall include representation
from--
(A) the design professions, including
national associations of architects and of
professional engineers;
(B) the development, construction, financial,
and real estate industries;
(C) building owners and operators from the
public and private sectors;
(D) academic and research organizations,
including at least one national laboratory with
extensive commercial building energy expertise;
(E) building code agencies and organizations,
including a model energy code-setting
organization;
(F) independent high-performance green
building associations or councils;
(G) experts in indoor air quality and
environmental factors;
(H) experts in intelligent buildings and
integrated building information systems;
(I) utility energy efficiency programs;
(J) manufacturers and providers of equipment
and techniques used in high performance green
buildings;
(K) public transportation industry experts;
and
(L) nongovernmental energy efficiency
organizations.
(3) Funding.--The Secretary may make payments to the
Consortium pursuant to the terms of a public-private
partnership for such activities of the Consortium
undertaken under such a partnership as described in
this subtitle directly to the Consortium or through one
or more of its members.
(g) Report.--Not later than 2 years after the date of
enactment of this Act, and biennially thereafter, the
Commercial Director, in consultation with the Consortium, shall
submit to Congress a report that--
(1) describes the status of the high-performance
green building initiatives under this subtitle and
other Federal programs affecting commercial high-
performance green buildings in effect as of the date of
the report, including--
(A) the extent to which the programs are
being carried out in accordance with this
subtitle; and
(B) the status of funding requests and
appropriations for those programs; and
(2) summarizes and highlights development, at the
State and local level, of high-performance green
building initiatives, including executive orders,
policies, or laws adopted promoting high-performance
green building (including the status of implementation
of those initiatives).
SEC. 422. ZERO NET ENERGY COMMERCIAL BUILDINGS INITIATIVE.
(a) Definitions.--In this section:
(1) Consortium.--The term ``consortium'' means a
High-Performance Green Building Consortium selected by
the Commercial Director.
(2) Initiative.--The term ``initiative'' means the
Zero-Net-Energy Commercial Buildings Initiative
established under subsection (b)(1).
(3) Zero-net-energy commercial building.--The term
``zero-net-energy commercial building'' means a high-
performance commercial building that is designed,
constructed, and operated--
(A) to require a greatly reduced quantity of
energy to operate;
(B) to meet the balance of energy needs from
sources of energy that do not produce
greenhouse gases;
(C) in a manner that will result in no net
emissions of greenhouse gases; and
(D) to be economically viable.
(b) Establishment.--
(1) In general.--The Commercial Director shall
establish an initiative, to be known as the ``Zero-Net-
Energy Commercial Buildings Initiative''--
(A) to reduce the quantity of energy consumed
by commercial buildings located in the United
States; and
(B) to achieve the development of zero net
energy commercial buildings in the United
States.
(2) Consortium.--
(A) In general.--Not later than 180 days
after the date of enactment of this Act, the
Commercial Director shall competitively select,
and enter into an agreement with, a consortium
to develop and carry out the initiative.
(B) Agreements.--In entering into an
agreement with a consortium under subparagraph
(A), the Commercial Director shall use the
authority described in section 646(g) of the
Department of Energy Organization Act (42
U.S.C. 7256(g)), to the maximum extent
practicable.
(c) Goal of Initiative.--The goal of the initiative shall be
to develop and disseminate technologies, practices, and
policies for the development and establishment of zero net
energy commercial buildings for--
(1) any commercial building newly constructed in the
United States by 2030;
(2) 50 percent of the commercial building stock of
the United States by 2040; and
(3) all commercial buildings in the United States by
2050.
(d) Components.--In carrying out the initiative, the
Commercial Director, in consultation with the consortium, may--
(1) conduct research and development on building
science, design, materials, components, equipment and
controls, operation and other practices, integration,
energy use measurement, and benchmarking;
(2) conduct pilot programs and demonstration projects
to evaluate replicable approaches to achieving energy
efficient commercial buildings for a variety of
building types in a variety of climate zones;
(3) conduct deployment, dissemination, and technical
assistance activities to encourage widespread adoption
of technologies, practices, and policies to achieve
energy efficient commercial buildings;
(4) conduct other research, development,
demonstration, and deployment activities necessary to
achieve each goal of the initiative, as determined by
the Commercial Director, in consultation with the
consortium;
(5) develop training materials and courses for
building professionals and trades on achieving cost-
effective high-performance energy efficient buildings;
(6) develop and disseminate public education
materials to share information on the benefits and
cost-effectiveness of high-performance energy efficient
buildings;
(7) support code-setting organizations and State and
local governments in developing minimum performance
standards in building codes that recognize the ready
availability of many technologies utilized in high-
performance energy efficient buildings;
(8) develop strategies for overcoming the split
incentives between builders and purchasers, and
landlords and tenants, to ensure that energy efficiency
and high-performance investments are made that are
cost-effective on a lifecycle basis; and
(9) develop improved means of measurement and
verification of energy savings and performance for
public dissemination.
(e) Cost Sharing.--In carrying out this section, the
Commercial Director shall require cost sharing in accordance
with section 988 of the Energy Policy Act of 2005 (42 U.S.C.
16352).
(f) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section--
(1) $20,000,000 for fiscal year 2008;
(2) $50,000,000 for each of fiscal years 2009 and
2010;
(3) $100,000,000 for each of fiscal years 2011 and
2012; and
(4) $200,000,000 for each of fiscal years 2013
through 2018.
SEC. 423. PUBLIC OUTREACH.
The Commercial Director and Federal Director, in coordination
with the Consortium, shall carry out public outreach to inform
individuals and entities of the information and services
available Governmentwide by--
(1) establishing and maintaining a national high-
performance green building clearinghouse, including on
the internet, that--
(A) identifies existing similar efforts and
coordinates activities of common interest; and
(B) provides information relating to high-
performance green buildings, including
hyperlinks to internet sites that describe the
activities, information, and resources of--
(i) the Federal Government;
(ii) State and local governments;
(iii) the private sector (including
nongovernmental and nonprofit entities
and organizations); and
(iv) international organizations;
(2) identifying and recommending educational
resources for implementing high-performance green
building practices, including security and emergency
benefits and practices;
(3) providing access to technical assistance, tools,
and resources for constructing high-performance green
buildings, particularly tools to conduct life-cycle
costing and life-cycle assessment;
(4) providing information on application processes
for certifying a high-performance green building,
including certification and commissioning;
(5) providing to the public, through the Commercial
Director, technical and research information or other
forms of assistance or advice that would be useful in
planning and constructing high-performance green
buildings;
(6) using such additional methods as are determined
by the Commercial Director to be appropriate to conduct
public outreach;
(7) surveying existing research and studies relating
to high-performance green buildings; and
(8) coordinating activities of common interest.
Subtitle C--High-Performance Federal Buildings
SEC. 431. ENERGY REDUCTION GOALS FOR FEDERAL BUILDINGS.
Section 543(a)(1) of the National Energy Conservation Policy
Act (42 U.S.C. 8253(a)(1)) is amended by striking the table and
inserting the following:
``Fiscal Year Percentage reduction
2006...................................................... 2
2007...................................................... 4
2008...................................................... 9
2009...................................................... 12
2010...................................................... 15
2011...................................................... 18
2012...................................................... 21
2013...................................................... 24
2014...................................................... 27
2015...................................................... 30.''
SEC. 432. MANAGEMENT OF ENERGY AND WATER EFFICIENCY IN FEDERAL
BUILDINGS.
Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is amended by adding at the end the following:
``(f) Use of Energy and Water Efficiency Measures in Federal
Buildings.--
``(1) Definitions.--In this subsection:
``(A) Commissioning.--The term
`commissioning', with respect to a facility,
means a systematic process--
``(i) of ensuring, using appropriate
verification and documentation, during
the period beginning on the initial day
of the design phase of the facility and
ending not earlier than 1 year after
the date of completion of construction
of the facility, that all facility
systems perform interactively in
accordance with--
``(I) the design
documentation and intent of the
facility; and
``(II) the operational needs
of the owner of the facility,
including preparation of
operation personnel; and
``(ii) the primary goal of which is
to ensure fully functional systems that
can be properly operated and maintained
during the useful life of the facility.
``(B) Energy manager.--
``(i) In general.--The term `energy
manager', with respect to a facility,
means the individual who is responsible
for--
``(I) ensuring compliance
with this subsection by the
facility; and
``(II) reducing energy use at
the facility.
``(ii) Inclusions.--The term `energy
manager' may include--
``(I) a contractor of a
facility;
``(II) a part-time employee
of a facility; and
``(III) an individual who is
responsible for multiple
facilities.
``(C) Facility.--
``(i) In general.--The term
`facility' means any building,
installation, structure, or other
property (including any applicable
fixtures) owned or operated by, or
constructed or manufactured and leased
to, the Federal Government.
``(ii) Inclusions.--The term
`facility' includes--
``(I) a group of facilities
at a single location or
multiple locations managed as
an integrated operation; and
``(II) contractor-operated
facilities owned by the Federal
Government.
``(iii) Exclusions.--The term
`facility' does not include any land or
site for which the cost of utilities is
not paid by the Federal Government.
``(D) Life cycle cost-effective.--The term
`life cycle cost-effective', with respect to a
measure, means a measure the estimated savings
of which exceed the estimated costs over the
lifespan of the measure, as determined in
accordance with section 544.
``(E) Payback period.--
``(i) In general.--Subject to clause
(ii), the term `payback period', with
respect to a measure, means a value
equal to the quotient obtained by
dividing--
``(I) the estimated initial
implementation cost of the
measure (other than financing
costs); by
``(II) the annual cost
savings resulting from the
measure, including--
``(aa) net savings in
estimated energy and
water costs; and
``(bb) operations,
maintenance, repair,
replacement, and other
direct costs.
``(ii) Modifications and
exceptions.--The Secretary, in
guidelines issued pursuant to paragraph
(6), may make such modifications and
provide such exceptions to the
calculation of the payback period of a
measure as the Secretary determines to
be appropriate to achieve the purposes
of this Act.
``(F) Recommissioning.--The term
`recommissioning' means a process--
``(i) of commissioning a facility or
system beyond the project development
and warranty phases of the facility or
system; and
``(ii) the primary goal of which is
to ensure optimum performance of a
facility, in accordance with design or
current operating needs, over the
useful life of the facility, while
meeting building occupancy
requirements.
``(G) Retrocommissioning.--The term
`retrocommissioning' means a process of
commissioning a facility or system that was not
commissioned at time of construction of the
facility or system.
``(2) Facility energy managers.--
``(A) In general.--Each Federal agency shall
designate an energy manager responsible for
implementing this subsection and reducing
energy use at each facility that meets criteria
under subparagraph (B).
``(B) Covered facilities.--The Secretary
shall develop criteria, after consultation with
affected agencies, energy efficiency advocates,
and energy and utility service providers, that
cover, at a minimum, Federal facilities,
including central utility plants and
distribution systems and other energy intensive
operations, that constitute at least 75 percent
of facility energy use at each agency.
``(3) Energy and water evaluations.--
``(A) Evaluations.--Effective beginning on
the date that is 180 days after the date of
enactment of this subsection and annually
thereafter, energy managers shall complete, for
each calendar year, a comprehensive energy and
water evaluation for approximately 25 percent
of the facilities of each agency that meet the
criteria under paragraph (2)(B) in a manner
that ensures that an evaluation of each such
facility is completed at least once every 4
years.
``(B) Recommissioning and
retrocommissioning.--As part of the evaluation
under subparagraph (A), the energy manager
shall identify and assess recommissioning
measures (or, if the facility has never been
commissioned, retrocommissioning measures) for
each such facility.
``(4) Implementation of identified energy and water
efficiency measures.--Not later than 2 years after the
completion of each evaluation under paragraph (3), each
energy manager may--
``(A) implement any energy- or water-saving
measure that the Federal agency identified in
the evaluation conducted under paragraph (3)
that is life cycle cost-effective; and
``(B) bundle individual measures of varying
paybacks together into combined projects.
``(5) Follow-up on implemented measures.--For each
measure implemented under paragraph (4), each energy
manager shall ensure that--
``(A) equipment, including building and
equipment controls, is fully commissioned at
acceptance to be operating at design
specifications;
``(B) a plan for appropriate operations,
maintenance, and repair of the equipment is in
place at acceptance and is followed;
``(C) equipment and system performance is
measured during its entire life to ensure
proper operations, maintenance, and repair; and
``(D) energy and water savings are measured
and verified.
``(6) Guidelines.--
``(A) In general.--The Secretary shall issue
guidelines and necessary criteria that each
Federal agency shall follow for implementation
of--
``(i) paragraphs (2) and (3) not
later than 180 days after the date of
enactment of this subsection; and
``(ii) paragraphs (4) and (5) not
later than 1 year after the date of
enactment of this subsection.
``(B) Relationship to funding source.--The
guidelines issued by the Secretary under
subparagraph (A) shall be appropriate and
uniform for measures funded with each type of
funding made available under paragraph (10),
but may distinguish between different types of
measures project size, and other criteria the
Secretary determines are relevant.
``(7) Web-based certification.--
``(A) In general.--For each facility that
meets the criteria established by the Secretary
under paragraph (2)(B), the energy manager
shall use the web-based tracking system under
subparagraph (B) to certify compliance with the
requirements for--
``(i) energy and water evaluations
under paragraph (3);
``(ii) implementation of identified
energy and water measures under
paragraph (4); and
``(iii) follow-up on implemented
measures under paragraph (5).
``(B) Deployment.--
``(i) In general.--Not later than 1
year after the date of enactment of
this subsection, the Secretary shall
develop and deploy a web-based tracking
system required under this paragraph in
a manner that tracks, at a minimum--
``(I) the covered facilities;
``(II) the status of meeting
the requirements specified in
subparagraph (A);
``(III) the estimated cost
and savings for measures
required to be implemented in a
facility;
``(IV) the measured savings
and persistence of savings for
implemented measures; and
``(V) the benchmarking
information disclosed under
paragraph (8)(C).
``(ii) Ease of compliance.--The
Secretary shall ensure that energy
manager compliance with the
requirements in this paragraph, to the
maximum extent practicable--
``(I) can be accomplished
with the use of streamlined
procedures and templates that
minimize the time demands on
Federal employees; and
``(II) is coordinated with
other applicable energy
reporting requirements.
``(C) Availability.--
``(i) In general.--Subject to clause
(ii), the Secretary shall make the web-
based tracking system required under
this paragraph available to Congress,
other Federal agencies, and the public
through the Internet.
``(ii) Exemptions.--At the request of
a Federal agency, the Secretary may
exempt specific data for specific
facilities from disclosure under clause
(i) for national security purposes.
``(8) Benchmarking of federal facilities.--
``(A) In general.--The energy manager shall
enter energy use data for each metered building
that is (or is a part of) a facility that meets
the criteria established by the Secretary under
paragraph (2)(B) into a building energy use
benchmarking system, such as the Energy Star
Portfolio Manager.
``(B) System and guidance.--Not later than 1
year after the date of enactment of this
subsection, the Secretary shall--
``(i) select or develop the building
energy use benchmarking system required
under this paragraph for each type of
building; and
``(ii) issue guidance for use of the
system.
``(C) Public disclosure.--Each energy manager
shall post the information entered into, or
generated by, a benchmarking system under this
subsections, on the web-based tracking system
under paragraph (7)(B). The energy manager
shall update such information each year, and
shall include in such reporting previous years'
information to allow changes in building
performance to be tracked over time.
``(9) Federal agency scorecards.--
``(A) In general.--The Director of the Office
of Management and Budget shall issue semiannual
scorecards for energy management activities
carried out by each Federal agency that
includes--
``(i) summaries of the status of
implementing the various requirements
of the agency and its energy managers
under this subsection; and
``(ii) any other means of measuring
performance that the Director considers
appropriate.
``(B) Availability.--The Director shall make
the scorecards required under this paragraph
available to Congress, other Federal agencies,
and the public through the Internet.
``(10) Funding and implementation.--
``(A) Authorization of appropriations.--There
are authorized to be appropriated such sums as
are necessary to carry out this subsection.
``(B) Funding options.--
``(i) In general.--To carry out this
subsection, a Federal agency may use
any combination of--
``(I) appropriated funds made
available under subparagraph
(A); and
``(II) private financing
otherwise authorized under
Federal law, including
financing available through
energy savings performance
contracts or utility energy
service contracts.
``(ii) Combined funding for same
measure.--A Federal agency may use any
combination of appropriated funds and
private financing described in clause
(i) to carry out the same measure under
this subsection.
``(C) Implementation.--Each Federal agency
may implement the requirements under this
subsection itself or may contract out
performance of some or all of the requirements.
``(11) Rule of construction.--This subsection shall
not be construed to require or to obviate any
contractor savings guarantees.''.
SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.
(a) Standards.--Section 305(a)(3) of the Energy Conservation
and Production Act (42 U.S.C. 6834(a)(3)) is amended by adding
at the end the following new subparagraph:
``(D) Not later than 1 year after the date of enactment of
the Energy Independence and Security Act of 2007, the Secretary
shall establish, by rule, revised Federal building energy
efficiency performance standards that require that:
``(i) For new Federal buildings and Federal buildings
undergoing major renovations, with respect to which the
Administrator of General Services is required to
transmit a prospectus to Congress under section 3307 of
title 40, United States Code, in the case of public
buildings (as defined in section 3301 of title 40,
United States Code), or of at least $2,500,000 in costs
adjusted annually for inflation for other buildings:
``(I) The buildings shall be designed so that
the fossil fuel-generated energy consumption of
the buildings is reduced, as compared with such
energy consumption by a similar building in
fiscal year 2003 (as measured by Commercial
Buildings Energy Consumption Survey or
Residential Energy Consumption Survey data from
the Energy Information Agency), by the
percentage specified in the following table:
``Fiscal Year Percentage Reduction
2010...................................................... 55
2015...................................................... 65
2020...................................................... 80
2025...................................................... 90
2030...................................................... 100
``(II) Upon petition by an agency subject to
this subparagraph, the Secretary may adjust the
applicable numeric requirement under subclause
(I) downward with respect to a specific
building, if the head of the agency designing
the building certifies in writing that meeting
such requirement would be technically
impracticable in light of the agency's
specified functional needs for that building
and the Secretary concurs with the agency's
conclusion. This subclause shall not apply to
the General Services Administration.
``(III) Sustainable design principles shall
be applied to the siting, design, and
construction of such buildings. Not later than
90 days after the date of enactment of the
Energy Independence and Security Act of 2007,
the Secretary, after reviewing the findings of
the Federal Director under section 436(h) of
that Act, in consultation with the
Administrator of General Services, and in
consultation with the Secretary of Defense for
considerations relating to those facilities
under the custody and control of the Department
of Defense, shall identify a certification
system and level for green buildings that the
Secretary determines to be the most likely to
encourage a comprehensive and environmentally-
sound approach to certification of green
buildings. The identification of the
certification system and level shall be based
on a review of the Federal Director's findings
under section 436(h) of the Energy Independence
and Security Act of 2007 and the criteria
specified in clause (iii), shall identify the
highest level the Secretary determines is
appropriate above the minimum level required
for certification under the system selected,
and shall achieve results at least comparable
to the system used by and highest level
referenced by the General Services
Administration as of the date of enactment of
the Energy Independence and Security Act of
2007. Within 90 days of the completion of each
study required by clause (iv), the Secretary,
in consultation with the Administrator of
General Services, and in consultation with the
Secretary of Defense for considerations
relating to those facilities under the custody
and control of the Department of Defense, shall
review and update the certification system and
level, taking into account the conclusions of
such study.
``(ii) In establishing criteria for identifying major
renovations that are subject to the requirements of
this subparagraph, the Secretary shall take into
account the scope, degree, and types of renovations
that are likely to provide significant opportunities
for substantial improvements in energy efficiency.
``(iii) In identifying the green building
certification system and level, the Secretary shall
take into consideration--
``(I) the ability and availability of
assessors and auditors to independently verify
the criteria and measurement of metrics at the
scale necessary to implement this subparagraph;
``(II) the ability of the applicable
certification organization to collect and
reflect public comment;
``(III) the ability of the standard to be
developed and revised through a consensus-based
process;
``(IV) an evaluation of the robustness of the
criteria for a high-performance green building,
which shall give credit for promoting--
``(aa) efficient and sustainable use
of water, energy, and other natural
resources;
``(bb) use of renewable energy
sources;
``(cc) improved indoor environmental
quality through enhanced indoor air
quality, thermal comfort, acoustics,
day lighting, pollutant source control,
and use of low-emission materials and
building system controls; and
``(dd) such other criteria as the
Secretary determines to be appropriate;
and
``(V) national recognition within the
building industry.
``(iv) At least once every five years, and in
accordance with section 436 of the Energy Independence
and Security Act of 2007, the Administrator of General
Services shall conduct a study to evaluate and compare
available third-party green building certification
systems and levels, taking into account the criteria
listed in clause (iii).
``(v) The Secretary may by rule allow Federal
agencies to develop internal certification processes,
using certified professionals, in lieu of certification
by the certification entity identified under clause
(i)(III). The Secretary shall include in any such rule
guidelines to ensure that the certification process
results in buildings meeting the applicable
certification system and level identified under clause
(i)(III). An agency employing an internal certification
process must continue to obtain external certification
by the certification entity identified under clause
(i)(III) for at least 5 percent of the total number of
buildings certified annually by the agency.
``(vi) With respect to privatized military housing,
the Secretary of Defense, after consultation with the
Secretary may, through rulemaking, develop alternative
criteria to those established by subclauses (I) and
(III) of clause (i) that achieve an equivalent result
in terms of energy savings, sustainable design, and
green building performance.
``(vii) In addition to any use of water conservation
technologies otherwise required by this section, water
conservation technologies shall be applied to the
extent that the technologies are life-cycle cost-
effective.''.
(b) Definitions.--Section 303(6) of the Energy Conservation
and Production Act (42 U.S.C. 6832(6)) is amended by striking
``which is not legally subject to State or local building codes
or similar requirements.'' and inserting ``. Such term shall
include buildings built for the purpose of being leased by a
Federal agency, and privatized military housing.''.
(c) Revision of Federal Acquisition Regulation.--Not later
than 2 years after the date of the enactment of this Act, the
Federal Acquisition Regulation shall be revised to require
Federal officers and employees to comply with this section and
the amendments made by this section in the acquisition,
construction, or major renovation of any facility. The members
of the Federal Acquisition Regulatory Council (established
under section 25 of the Office of Federal Procurement Policy
Act (41 U.S.C. 421)) shall consult with the Federal Director
and the Commercial Director before promulgating regulations to
carry out this subsection.
(d) Guidance.--Not later than 90 days after the date of
promulgation of the revised regulations under subsection (c),
the Administrator for Federal Procurement Policy shall issue
guidance to all Federal procurement executives providing
direction and instructions to renegotiate the design of
proposed facilities and major renovations for existing
facilities to incorporate improvements that are consistent with
this section.
SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY .
(a) Large Capital Energy Investments.--Section 543 of the
National Energy Conservation Policy Act (42 U.S.C. 8253) is
amended by adding at the end the following:
``(f) Large Capital Energy Investments.--
``(1) In general.--Each Federal agency shall ensure
that any large capital energy investment in an existing
building that is not a major renovation but involves
replacement of installed equipment (such as heating and
cooling systems), or involves renovation,
rehabilitation, expansion, or remodeling of existing
space, employs the most energy efficient designs,
systems, equipment, and controls that are life-cycle
cost effective.
``(2) Process for review of investment decisions.--
Not later than 180 days after the date of enactment of
this subsection, each Federal agency shall--
``(A) develop a process for reviewing each
decision made on a large capital energy
investment described in paragraph (1) to ensure
that the requirements of this subsection are
met; and
``(B) report to the Director of the Office of
Management and Budget on the process
established.
``(3) Compliance report.--Not later than 1 year after
the date of enactment of this subsection, the Director
of the Office of Management and Budget shall evaluate
and report to Congress on the compliance of each agency
with this subsection.''.
(b) Metering.--Section 543(e)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(e)(1)) is amended by
inserting after the second sentence the following: ``Not later
than October 1, 2016, each agency shall provide for equivalent
metering of natural gas and steam, in accordance with
guidelines established by the Secretary under paragraph (2).''.
SEC. 435. LEASING.
(a) In General.--Except as provided in subsection (b),
effective beginning on the date that is 3 years after the date
of enactment of this Act, no Federal agency shall enter into a
contract to lease space in a building that has not earned the
Energy Star label in the most recent year.
(b) Exception.--
(1) Application.--This subsection applies if--
(A) no space is available in a building
described in subsection (a) that meets the
functional requirements of an agency, including
locational needs;
(B) the agency proposes to remain in a
building that the agency has occupied
previously;
(C) the agency proposes to lease a building
of historical, architectural, or cultural
significance (as defined in section 3306(a)(4)
of title 40, United States Code) or space in
such a building; or
(D) the lease is for not more than 10,000
gross square feet of space.
(2) Buildings without energy star label.--If 1 of the
conditions described in paragraph (2) is met, the
agency may enter into a contract to lease space in a
building that has not earned the Energy Star label in
the most recent year if the lease contract includes
provisions requiring that, prior to occupancy or, in
the case of a contract described in paragraph (1)(B),
not later than 1 year after signing the contract, the
space will be renovated for all energy efficiency and
conservation improvements that would be cost effective
over the life of the lease, including improvements in
lighting, windows, and heating, ventilation, and air
conditioning systems.
(c) Revision of Federal Acquisition Regulation.--
(1) In general.--Not later than 3 years after the
date of the enactment of this Act, the Federal
Acquisition Regulation described in section 6(a) of the
Office of Federal Procurement Policy Act (41 U.S.C.
405(a)) shall be revised to require Federal officers
and employees to comply with this section in leasing
buildings.
(2) Consultation.--The members of the Federal
Acquisition Regulatory Council established under
section 25 of the Office of Federal Procurement Policy
Act (41 U.S.C. 421)) shall consult with the Federal
Director and the Commercial Director before
promulgating regulations to carry out this subsection.
SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.
(a) Establishment of Office.--Not later than 60 days after
the date of enactment of this Act, the Administrator shall
establish within the General Services Administration an Office
of Federal High-Performance Green Buildings, and appoint an
individual to serve as Federal Director in, a position in the
career-reserved Senior Executive service, to--
(1) establish and manage the Office of Federal High-
Performance Green Buildings; and
(2) carry out other duties as required under this
subtitle.
(b) Compensation.--The compensation of the Federal Director
shall not exceed the maximum rate of basic pay for the Senior
Executive Service under section 5382 of title 5, United States
Code, including any applicable locality-based comparability
payment that may be authorized under section 5304(h)(2)(C) of
that title.
(c) Duties.--The Federal Director shall--
(1) coordinate the activities of the Office of
Federal High-Performance Green Buildings with the
activities of the Office of Commercial High-Performance
Green Buildings, and the Secretary, in accordance with
section 305(a)(3)(D) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(D));
(2) ensure full coordination of high-performance
green building information and activities within the
General Services Administration and all relevant
agencies, including, at a minimum--
(A) the Environmental Protection Agency;
(B) the Office of the Federal Environmental
Executive;
(C) the Office of Federal Procurement Policy;
(D) the Department of Energy;
(E) the Department of Health and Human
Services;
(F) the Department of Defense;
(G) the Department of Transportation;
(H) the National Institute of Standards and
Technology; and
(I) the Office of Science and Technology
Policy;
(3) establish a senior-level Federal Green Building
Advisory Committee under section 474, which shall
provide advice and recommendations in accordance with
that section and subsection (d);
(4) identify and every 5 years reassess improved or
higher rating standards recommended by the Advisory
Committee;
(5) ensure full coordination, dissemination of
information regarding, and promotion of the results of
research and development information relating to
Federal high-performance green building initiatives;
(6) identify and develop Federal high-performance
green building standards for all types of Federal
facilities, consistent with the requirements of this
subtitle and section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C.
6834(a)(3)(D));
(7) establish green practices that can be used
throughout the life of a Federal facility;
(8) review and analyze current Federal budget
practices and life-cycle costing issues, and make
recommendations to Congress, in accordance with
subsection (d); and
(9) identify opportunities to demonstrate innovative
and emerging green building technologies and concepts.
(d) Additional Duties.--The Federal Director, in consultation
with the Commercial Director and the Advisory Committee, and
consistent with the requirements of section 305(a)(3)(D) of the
Energy Conservation and Production Act (42 U.S.C.
6834(a)(3)(D)) shall--
(1) identify, review, and analyze current budget and
contracting practices that affect achievement of high-
performance green buildings, including the
identification of barriers to high-performance green
building life-cycle costing and budgetary issues;
(2) develop guidance and conduct training sessions
with budget specialists and contracting personnel from
Federal agencies and budget examiners to apply life-
cycle cost criteria to actual projects;
(3) identify tools to aid life-cycle cost
decisionmaking; and
(4) explore the feasibility of incorporating the
benefits of high-performance green buildings, such as
security benefits, into a cost-budget analysis to aid
in life-cycle costing for budget and decisionmaking
processes.
(e) Incentives.--Within 90 days after the date of enactment
of this Act, the Federal Director shall identify incentives to
encourage the expedited use of high-performance green buildings
and related technology in the operations of the Federal
Government, in accordance with the requirements of section
305(a)(3)(D) of the Energy Conservation and Production Act (42
U.S.C. 6834(a)(3)(D)), including through--
(1) the provision of recognition awards; and
(2) the maximum feasible retention of financial
savings in the annual budgets of Federal agencies for
use in reinvesting in future high-performance green
building initiatives.
(f) Report.--Not later than 2 years after the date of
enactment of this Act, and biennially thereafter, the Federal
Director, in consultation with the Secretary, shall submit to
Congress a report that--
(1) describes the status of compliance with this
subtitle, the requirements of section 305(a)(3)(D) of
the Energy Conservation and Production Act (42 U.S.C.
6834(a)(3)(D)), and other Federal high-performance
green building initiatives in effect as of the date of
the report, including--
(A) the extent to which the programs are
being carried out in accordance with this
subtitle and the requirements of section
305(a)(3)(D) of that Act; and
(B) the status of funding requests and
appropriations for those programs;
(2) identifies within the planning, budgeting, and
construction process all types of Federal facility
procedures that may affect the certification of new and
existing Federal facilities as high-performance green
buildings under the provisions of section 305(a)(3)(D)
of that Act and the criteria established in subsection
(h);
(3) identifies inconsistencies, as reported to the
Advisory Committee, in Federal law with respect to
product acquisition guidelines and high-performance
product guidelines;
(4) recommends language for uniform standards for use
by Federal agencies in environmentally responsible
acquisition;
(5) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs
with respect to alternatives for--
(A) restructuring of budgets to require the
use of complete energy and environmental cost
accounting;
(B) using operations expenditures in budget-
related decisions while simultaneously
incorporating productivity and health measures
(as those measures can be quantified by the
Office of Federal High-Performance Green
Buildings, with the assistance of universities
and national laboratories);
(C) streamlining measures for permitting
Federal agencies to retain all identified
savings accrued as a result of the use of life-
cycle costing for future high-performance green
building initiatives; and
(D) identifying short-term and long-term cost
savings that accrue from high-performance green
buildings, including those relating to health
and productivity;
(6) identifies green, self-sustaining technologies to
address the operational needs of Federal facilities in
times of national security emergencies, natural
disasters, or other dire emergencies;
(7) summarizes and highlights development, at the
State and local level, of high-performance green
building initiatives, including executive orders,
policies, or laws adopted promoting high-performance
green building (including the status of implementation
of those initiatives); and
(8) includes, for the 2-year period covered by the
report, recommendations to address each of the matters,
and a plan for implementation of each recommendation,
described in paragraphs (1) through (7).
(g) Implementation.--The Office of Federal High-Performance
Green Buildings shall carry out each plan for implementation of
recommendations under subsection (f)(8).
(h) Identification of Certification System.--
(1) In general.--For the purpose of this section, not
later than 60 days after the date of enactment of this
Act, the Federal Director shall identify and shall
provide to the Secretary pursuant to section
305(a)(3)(D) of the Energy Conservation and Production
Act (42 U.S.C. 6834(a)(3)(D)), a certification system
that the Director determines to be the most likely to
encourage a comprehensive and environmentally-sound
approach to certification of green buildings.
(2) Basis.--The system identified under paragraph (1)
shall be based on--
(A) a study completed every 5 years and
provided to the Secretary pursuant to section
305(a)(3)(D) of that Act, which shall be
carried out by the Federal Director to compare
and evaluate standards;
(B) the ability and availability of assessors
and auditors to independently verify the
criteria and measurement of metrics at the
scale necessary to implement this subtitle;
(C) the ability of the applicable standard-
setting organization to collect and reflect
public comment;
(D) the ability of the standard to be
developed and revised through a consensus-based
process;
(E) an evaluation of the robustness of the
criteria for a high performance green building,
which shall give credit for promoting--
(i) efficient and sustainable use of
water, energy, and other natural
resources;
(ii) use of renewable energy sources;
(iii) improved indoor environmental
quality through enhanced indoor air
quality, thermal comfort, acoustics,
day lighting, pollutant source control,
and use of low-emission materials and
building system controls;
(iv) reduced impacts from
transportation through building
location and site design that promote
access by public transportation; and
(v) such other criteria as the
Federal Director determines to be
appropriate; and
(F) national recognition within the building
industry.
SEC. 437. FEDERAL GREEN BUILDING PERFORMANCE.
(a) In General.--Not later than October 31 of each of the 2
fiscal years following the fiscal year in which this Act is
enacted, and at such times thereafter as the Comptroller
General of the United States determines to be appropriate, the
Comptroller General of the United States shall, with respect to
the fiscal years that have passed since the preceding report--
(1) conduct an audit of the implementation of this
subtitle, section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C.
6834(a)(3)(D)), and section 435; and
(2) submit to the Federal Director, the Advisory
Committee, the Administrator, and Congress a report
describing the results of the audit.
(b) Contents.--An audit under subsection (a) shall include a
review, with respect to the period covered by the report under
subsection (a)(2), of--
(1) budget, life-cycle costing, and contracting
issues, using best practices identified by the
Comptroller General of the United States and heads of
other agencies in accordance with section 436(d);
(2) the level of coordination among the Federal
Director, the Office of Management and Budget, the
Department of Energy, and relevant agencies;
(3) the performance of the Federal Director and other
agencies in carrying out the implementation plan;
(4) the design stage of high-performance green
building measures;
(5) high-performance building data that were
collected and reported to the Office; and
(6) such other matters as the Comptroller General of
the United States determines to be appropriate.
(c) Environmental Stewardship Scorecard.--The Federal
Director shall consult with the Advisory Committee to enhance,
and assist in the implementation of, the Office of Management
and Budget government efficiency reports and scorecards under
section 528 and the Environmental Stewardship Scorecard
announced at the White House summit on Federal sustainable
buildings in January 2006, to measure the implementation by
each Federal agency of sustainable design and green building
initiatives.
SEC. 438. STORM WATER RUNOFF REQUIREMENTS FOR FEDERAL DEVELOPMENT
PROJECTS.
The sponsor of any development or redevelopment project
involving a Federal facility with a footprint that exceeds
5,000 square feet shall use site planning, design,
construction, and maintenance strategies for the property to
maintain or restore, to the maximum extent technically
feasible, the predevelopment hydrology of the property with
regard to the temperature, rate, volume, and duration of flow.
SEC. 439. COST-EFFECTIVE TECHNOLOGY ACCELERATION PROGRAM.
(a) Definition of Administrator.--In this section, the term
``Administrator'' means the Administrator of General Services.
(b) Establishment.--
(1) In general.--The Administrator shall establish a
program to accelerate the use of more cost-effective
technologies and practices at GSA facilities.
(2) Requirements.--The program established under this
subsection shall--
(A) ensure centralized responsibility for the
coordination of cost reduction-related
recommendations, practices, and activities of
all relevant Federal agencies;
(B) provide technical assistance and
operational guidance to applicable tenants to
achieve the goal identified in subsection
(c)(2)(B)(ii);
(C) establish methods to track the success of
Federal departments and agencies with respect
to that goal; and
(D) be fully coordinated with and no less
stringent nor less energy-conserving or water-
conserving than required by other provisions of
this Act and other applicable law, including
sections 321 through 324, 431 through 438, 461,
511 through 518, and 523 through 525 and
amendments made by those sections.
(c) Accelerated Use of Technologies.--
(1) Review.--
(A) In general.--As part of the program under
this section, not later than 90 days after the
date of enactment of this Act, the
Administrator shall conduct a review of--
(i) current use of cost-effective
lighting technologies and geothermal
heat pumps in GSA facilities; and
(ii) the availability to managers of
GSA facilities of cost-effective
lighting technologies and geothermal
heat pumps.
(B) Requirements.--The review under
subparagraph (A) shall--
(i) examine the use of cost-effective
lighting technologies, geothermal heat
pumps, and other cost-effective
technologies and practices by Federal
agencies in GSA facilities; and
(ii) as prepared in consultation with
the Administrator of the Environmental
Protection Agency, identify cost-
effective lighting technology and
geothermal heat pump technology
standards that could be used for all
types of GSA facilities.
(2) Replacement.--
(A) In general.--As part of the program under
this section, not later than 180 days after the
date of enactment of this Act, the
Administrator shall establish, using available
appropriations and programs implementing
sections 432 and 525 (and amendments made by
those sections), a cost-effective lighting
technology and geothermal heat pump technology
acceleration program to achieve maximum
feasible replacement of existing lighting,
heating, cooling technologies with cost-
effective lighting technologies and geothermal
heat pump technologies in each GSA facility.
Such program shall fully comply with the
requirements of sections 321 through 324, 431
through 438, 461, 511 through 518, and 523
through 525 and amendments made by those
sections and any other provisions of law, which
shall be applicable to the extent that they are
more stringent or would achieve greater energy
savings than required by this section.
(B) Acceleration plan timetable.--
(i) In general.--To implement the
program established under subparagraph
(A), not later than 1 year after the
date of enactment of this Act, the
Administrator shall establish a
timetable of actions to comply with the
requirements of this section and
sections 431 through 435, whichever
achieves greater energy savings most
expeditiously, including milestones for
specific activities needed to replace
existing lighting, heating, cooling
technologies with cost-effective
lighting technologies and geothermal
heat pump technologies, to the maximum
extent feasible (including at the
maximum rate feasible), at each GSA
facility.
(ii) Goal.--The goal of the timetable
under clause (i) shall be to complete,
using available appropriations and
programs implementing sections 431
through 435 (and amendments made by
those sections), maximum feasible
replacement of existing lighting,
heating, and cooling technologies with
cost-effective lighting technologies
and geothermal heat pump technologies
consistent with the requirements of
this section and sections 431 through
435, whichever achieves greater energy
savings most expeditiously.
Notwithstanding any provision of this
section, such program shall fully
comply with the requirements of the Act
including sections 321 through 324, 431
through 438, 461, 511 through 518, and
523 through 525 and amendments made by
those sections and other provisions of
law, which shall be applicable to the
extent that they are more stringent or
would achieve greater energy or water
savings than required by this section.
(d) GSA Facility Technologies and Practices.--
(1) In general.--Not later than 180 days after the
date of enactment of this Act, and annually thereafter,
the Administrator shall--
(A) ensure that a manager responsible for
implementing section 432 and for accelerating
the use of cost-effective technologies and
practices is designated for each GSA facility;
and
(B) submit to Congress a plan to comply with
section 432, this section, and other applicable
provisions of this Act and applicable law with
respect to energy and water conservation at GSA
facilities.
(2) Measures.--The plan shall implement measures
required by such other provisions of law in accordance
with those provisions, and shall implement the measures
required by this section to the maximum extent feasible
(including at the maximum rate feasible) using
available appropriations and programs implementing
sections 431 through 435 and 525 (and amendments made
by those sections), by not later than the date that is
5 years after the date of enactment of this Act.
(3) Contents of plan.--The plan shall--
(A) with respect to cost-effective
technologies and practices--
(i) identify the specific activities
needed to comply with sections 431
through 435;
(ii) identify the specific activities
needed to achieve at least a 20-percent
reduction in operational costs through
the application of cost-effective
technologies and practices from 2003
levels at GSA facilities by not later
than 5 years after the date of
enactment of this Act;
(iii) describe activities required
and carried out to estimate the funds
necessary to achieve the reduction
described in clauses (i) and (ii);
(B) include an estimate of the funds
necessary to carry out this section;
(C) describe the status of the implementation
of cost-effective technologies and practices at
GSA facilities, including--
(i) the extent to which programs,
including the program established under
subsection (b), are being carried out
in accordance with this subtitle; and
(ii) the status of funding requests
and appropriations for those programs;
(D) identify within the planning, budgeting,
and construction processes, all types of GSA
facility-related procedures that inhibit new
and existing GSA facilities from implementing
cost-effective technologies;
(E) recommend language for uniform standards
for use by Federal agencies in implementing
cost-effective technologies and practices;
(F) in coordination with the Office of
Management and Budget, review the budget
process for capital programs with respect to
alternatives for--
(i) implementing measures that will
assure that Federal agencies retain all
identified savings accrued as a result
of the use of cost-effective
technologies, consistent with section
543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C.
8253(a)(1), and other applicable law;
and
(ii) identifying short- and long-term
cost savings that accrue from the use
of cost-effective technologies and
practices;
(G) with respect to cost-effective
technologies and practices, achieve substantial
operational cost savings through the
application of the technologies; and
(H) include recommendations to address each
of the matters, and a plan for implementation
of each recommendation, described in
subparagraphs (A) through (G).
(4) Administration.--Notwithstanding any provision of
this section, the program required under this section
shall fully comply with the requirements of sections
321 through 324, 431 through 438, 461, 511 through 518,
and 523 through 525 and amendments made by those
sections, which shall be applicable to the extent that
they are more stringent or would achieve greater energy
or water savings than required by this section.
(e) Authorization of Appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
section, to remain available until expended.
SEC. 440. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out sections
434 through 439 and 482 $4,000,000 for each of fiscal years
2008 through 2012, to remain available until expended.
SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.
Section 544(a)(1) of the National Energy Conservation Policy
Act (42 U.S.C. 8254(a)(1)) is amended by striking ``25'' and
inserting ``40''.
Subtitle D--Industrial Energy Efficiency
SEC. 451. INDUSTRIAL ENERGY EFFICIENCY.
(a) In General.--Title III of the Energy Policy and
Conservation Act (42 U.S.C. 6291 et seq.) is amended by
inserting after part D the following:
``PART E--INDUSTRIAL ENERGY EFFICIENCY
``SEC. 371. DEFINITIONS.
``In this part:
``(1) Administrator.--The term `Administrator' means
the Administrator of the Environmental Protection
Agency.
``(2) Combined heat and power.--The term `combined
heat and power system' means a facility that--
``(A) simultaneously and efficiently produces
useful thermal energy and electricity; and
``(B) recovers not less than 60 percent of
the energy value in the fuel (on a higher-
heating-value basis) in the form of useful
thermal energy and electricity.
``(3) Net excess power.--The term `net excess power'
means, for any facility, recoverable waste energy
recovered in the form of electricity in quantities
exceeding the total consumption of electricity at the
specific time of generation on the site at which the
facility is located.
``(4) Project.--The term `project' means a
recoverable waste energy project or a combined heat and
power system project.
``(5) Recoverable waste energy.--The term
`recoverable waste energy' means waste energy from
which electricity or useful thermal energy may be
recovered through modification of an existing facility
or addition of a new facility.
``(6) Registry.--The term `Registry' means the
Registry of Recoverable Waste Energy Sources
established under section 372(d).
``(7) Useful thermal energy.--The term `useful
thermal energy' means energy--
``(A) in the form of direct heat, steam, hot
water, or other thermal form that is used in
production and beneficial measures for heating,
cooling, humidity control, process use, or
other valid thermal end-use energy
requirements; and
``(B) for which fuel or electricity would
otherwise be consumed.
``(8) Waste energy.--The term `waste energy' means--
``(A) exhaust heat or flared gas from any
industrial process;
``(B) waste gas or industrial tail gas that
would otherwise be flared, incinerated, or
vented;
``(C) a pressure drop in any gas, excluding
any pressure drop to a condenser that
subsequently vents the resulting heat; and
``(D) such other forms of waste energy as the
Administrator may determine.
``(9) Other terms.--The terms `electric utility',
`nonregulated electric utility', `State regulated
electric utility', and other terms have the meanings
given those terms in title I of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2611 et
seq.).
``SEC. 372. SURVEY AND REGISTRY.
``(a) Recoverable Waste Energy Inventory Program.--
``(1) In general.--The Administrator, in cooperation
with the Secretary and State energy offices, shall
establish a recoverable waste energy inventory program.
``(2) Survey.--The program shall include--
``(A) an ongoing survey of all major
industrial and large commercial combustion
sources in the United States (as defined by the
Administrator) and the sites at which the
sources are located; and
``(B) a review of each source for the
quantity and quality of waste energy produced
at the source.
``(b) Criteria.--
``(1) In general.--Not later than 270 days after the
date of enactment of the Energy Independence and
Security Act of 2007, the Administrator shall publish a
rule for establishing criteria for including sites in
the Registry.
``(2) Inclusions.--The criteria shall include--
``(A) a requirement that, to be included in
the Registry, a project at the site shall be
determined to be economically feasible by
virtue of offering a payback of invested costs
not later than 5 years after the date of first
full project operation (including incentives
offered under this part);
``(B) standards to ensure that projects
proposed for inclusion in the Registry are not
developed or used for the primary purpose of
making sales of excess electric power under the
regulatory provisions of this part; and
``(C) procedures for contesting the listing
of any source or site on the Registry by any
State, utility, or other interested person.
``(c) Technical Support.--On the request of the owner or
operator of a source or site included in the Registry, the
Secretary shall--
``(1) provide to owners or operators of combustion
sources technical support; and
``(2) offer partial funding (in an amount equal to
not more than \1/2\ of total costs) for feasibility
studies to confirm whether or not investment in
recovery of waste energy or combined heat and power at
a source would offer a payback period of 5 years or
less.
``(d) Registry.--
``(1) Establishment.--
``(A) In general.--Not later than 1 year
after the date of enactment of the Energy
Independence and Security Act of 2007, the
Administrator shall establish a Registry of
Recoverable Waste Energy Sources, and sites on
which the sources are located, that meet the
criteria established under subsection (b).
``(B) Updates; availability.--The
Administrator shall--
``(i) update the Registry on a
regular basis; and
``(ii) make the Registry available to
the public on the website of the
Environmental Protection Agency.
``(C) Contesting listing.--Any State,
electric utility, or other interested person
may contest the listing of any source or site
by submitting a petition to the Administrator.
``(2) Contents.--
``(A) In general.--The Administrator shall
register and include on the Registry all sites
meeting the criteria established under
subsection (b).
``(B) Quantity of recoverable waste energy.--
The Administrator shall--
``(i) calculate the total quantities
of potentially recoverable waste energy
from sources at the sites, nationally
and by State; and
``(ii) make public--
``(I) the total quantities
described in clause (i); and
``(II) information on the
criteria pollutant and
greenhouse gas emissions
savings that might be achieved
with recovery of the waste
energy from all sources and
sites listed on the Registry.
``(3) Availability of information.--
``(A) In general.--The Administrator shall
notify owners or operators of recoverable waste
energy sources and sites listed on the Registry
prior to publishing the listing.
``(B) Detailed quantitative information.--
``(i) In general.--Except as provided
in clause (ii), the owner or operator
of a source at a site may elect to have
detailed quantitative information
concerning the site not made public by
notifying the Administrator of the
election.
``(ii) Limited availability.--The
information shall be made available
to--
``(I) the applicable State
energy office; and
``(II) any utility requested
to support recovery of waste
energy from the source pursuant
to the incentives provided
under section 374.
``(iii) State totals.--Information
concerning the site shall be included
in the total quantity of recoverable
waste energy for a State unless there
are fewer than 3 sites in the State.
``(4) Removal of projects from registry.--
``(A) In general.--Subject to subparagraph
(B), as a project achieves successful recovery
of waste energy, the Administrator shall--
``(i) remove the related sites or
sources from the Registry; and
``(ii) designate the removed projects
as eligible for incentives under
section 374.
``(B) Limitation.--No project shall be
removed from the Registry without the consent
of the owner or operator of the project if--
``(i) the owner or operator has
submitted a petition under section 374;
and
``(ii) the petition has not been
acted on or denied.
``(5) Ineligibility of certain sources.--The
Administrator shall not list any source constructed
after the date of the enactment of the Energy
Independence and Security Act of 2007 on the Registry
if the Administrator determines that the source--
``(A) was developed for the primary purpose
of making sales of excess electric power under
the regulatory provisions of this part; or
``(B) does not capture at least 60 percent of
the total energy value of the fuels used (on a
higher-heating-value basis) in the form of
useful thermal energy, electricity, mechanical
energy, chemical output, or any combination
thereof.
``(e) Self-Certification.--
``(1) In general.--Subject to any procedures that are
established by the Administrator, an owner, operator,
or third-party developer of a recoverable waste energy
project that qualifies under standards established by
the Administrator may self-certify the sites or sources
of the owner, operator, or developer to the
Administrator for inclusion in the Registry.
``(2) Review and approval.--To prevent a fraudulent
listing, a site or source shall be included on the
Registry only if the Administrator reviews and approves
the self-certification.
``(f) New Facilities.--As a new energy-consuming industrial
facility is developed after the date of enactment of the Energy
Independence and Security Act of 2007, to the extent the
facility may constitute a site with recoverable waste energy
that may qualify for inclusion on the Registry, the
Administrator may elect to include the facility on the
Registry, at the request of the owner, operator, or developer
of the facility, on a conditional basis with the site to be
removed from the Registry if the development ceases or the site
fails to qualify for listing under this part.
``(g) Optimum Means of Recovery.--For each site listed in the
Registry, at the request of the owner or operator of the site,
the Administrator shall offer, in cooperation with Clean Energy
Application Centers operated by the Secretary of Energy,
suggestions for optimum means of recovery of value from waste
energy stream in the form of electricity, useful thermal
energy, or other energy-related products.
``(h) Revision.--Each annual report of a State under section
548(a) of the National Energy Conservation Policy Act (42
U.S.C. 8258(a)) shall include the results of the survey for the
State under this section.
``(i) Authorization of Appropriations.--There are authorized
to be appropriated to--
``(1) the Administrator to create and maintain the
Registry and services authorized by this section,
$1,000,000 for each of fiscal years 2008 through 2012;
and
``(2) the Secretary--
``(A) to assist site or source owners and
operators in determining the feasibility of
projects authorized by this section, $2,000,000
for each of fiscal years 2008 through 2012; and
``(B) to provide funding for State energy
office functions under this section,
$5,000,000.
``SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM.
``(a) Establishment.--The Secretary shall establish in the
Department of Energy a waste energy recovery incentive grant
program to provide incentive grants to--
``(1) owners and operators of projects that
successfully produce electricity or incremental useful
thermal energy from waste energy recovery;
``(2) utilities purchasing or distributing the
electricity; and
``(3) States that have achieved 80 percent or more of
recoverable waste heat recovery opportunities.
``(b) Grants to Projects and Utilities.--
``(1) In general.--The Secretary shall make grants
under this section--
``(A) to the owners or operators of waste
energy recovery projects; and
``(B) in the case of excess power purchased
or transmitted by a electric utility, to the
utility.
``(2) Proof.--Grants may only be made under this
section on receipt of proof of waste energy recovery or
excess electricity generation, or both, from the
project in a form prescribed by the Secretary.
``(3) Excess electric energy.--
``(A) In general.--In the case of waste
energy recovery, a grant under this section
shall be made at the rate of $10 per megawatt
hour of documented electricity produced from
recoverable waste energy (or by prevention of
waste energy in the case of a new facility) by
the project during the first 3 calendar years
of production, beginning on or after the date
of enactment of the Energy Independence and
Security Act of 2007.
``(B) Utilities.--If the project produces net
excess power and an electric utility purchases
or transmits the excess power, 50 percent of so
much of the grant as is attributable to the net
excess power shall be paid to the electric
utility purchasing or transporting the net
excess power.
``(4) Useful thermal energy.--In the case of waste
energy recovery that produces useful thermal energy
that is used for a purpose different from that for
which the project is principally designed, a grant
under this section shall be made to the owner or
operator of the waste energy recovery project at the
rate of $10 for each 3,412,000 Btus of the excess
thermal energy used for the different purpose.
``(c) Grants to States.--In the case of any State that has
achieved 80 percent or more of waste heat recovery
opportunities identified by the Secretary under this part, the
Administrator shall make a 1-time grant to the State in an
amount of not more than $1,000 per megawatt of waste-heat
capacity recovered (or a thermal equivalent) to support State-
level programs to identify and achieve additional energy
efficiency.
``(d) Eligibility.--The Secretary shall--
``(1) establish rules and guidelines to establish
eligibility for grants under subsection (b);
``(2) publicize the availability of the grant program
known to owners or operators of recoverable waste
energy sources and sites listed on the Registry; and
``(3) award grants under the program on the basis of
the merits of each project in recovering or preventing
waste energy throughout the United States on an
impartial, objective, and not unduly discriminatory
basis.
``(e) Limitation.--The Secretary shall not award grants to
any person for a combined heat and power project or a waste
heat recovery project that qualifies for specific Federal tax
incentives for combined heat and power or for waste heat
recovery.
``(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary--
``(1) to make grants to projects and utilities under
subsection (b)--
``(A) $100,000,000 for fiscal year 2008 and
$200,000,000 for each of fiscal years 2009
through 2012; and
``(B) such additional amounts for fiscal year
2008 and each fiscal year thereafter as may be
necessary for administration of the waste
energy recovery incentive grant program; and
``(2) to make grants to States under subsection (b),
$10,000,000 for each of fiscal years 2008 through 2012,
to remain available until expended.
``SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE, AND PREVENTION OF
INDUSTRIAL WASTE ENERGY.
``(a) Consideration of Standard.--
``(1) In general.--Not later than 180 days after the
receipt by a State regulatory authority (with respect
to each electric utility for which the authority has
ratemaking authority), or nonregulated electric
utility, of a request from a project sponsor or owner
or operator, the State regulatory authority or
nonregulated electric utility shall--
``(A) provide public notice and conduct a
hearing respecting the standard established by
subsection (b); and
``(B) on the basis of the hearing, consider
and make a determination whether or not it is
appropriate to implement the standard to carry
out the purposes of this part.
``(2) Relationship to state law.--For purposes of any
determination under paragraph (1) and any review of the
determination in any court, the purposes of this
section supplement otherwise applicable State law.
``(3) Nonadoption of standard.--Nothing in this part
prohibits any State regulatory authority or
nonregulated electric utility from making any
determination that it is not appropriate to adopt any
standard described in paragraph (1), pursuant to
authority under otherwise applicable State law.
``(b) Standard for Sales of Excess Power.--For purposes of
this section, the standard referred to in subsection (a) shall
provide that an owner or operator of a waste energy recovery
project identified on the Registry that generates net excess
power shall be eligible to benefit from at least 1 of the
options described in subsection (c) for disposal of the net
excess power in accordance with the rate conditions and
limitations described in subsection (d).
``(c) Options.--The options referred to in subsection (b) are
as follows:
``(1) Sale of net excess power to utility.--The
electric utility shall purchase the net excess power
from the owner or operator of the eligible waste energy
recovery project during the operation of the project
under a contract entered into for that purpose.
``(2) Transport by utility for direct sale to third
party.--The electric utility shall transmit the net
excess power on behalf of the project owner or operator
to up to 3 separate locations on the system of the
utility for direct sale by the owner or operator to
third parties at those locations.
``(3) Transport over private transmission lines.--The
State and the electric utility shall permit, and shall
waive or modify such laws as would otherwise prohibit,
the construction and operation of private electric
wires constructed, owned, and operated by the project
owner or operator, to transport the power to up to 3
purchasers within a 3-mile radius of the project,
allowing the wires to use or cross public rights-of-
way, without subjecting the project to regulation as a
public utility, and according the wires the same
treatment for safety, zoning, land use, and other legal
privileges as apply or would apply to the wires of the
utility, except that--
``(A) there shall be no grant of any power of
eminent domain to take or cross private
property for the wires; and
``(B) the wires shall be physically
segregated and not interconnected with any
portion of the system of the utility, except on
the customer side of the revenue meter of the
utility and in a manner that precludes any
possible export of the electricity onto the
utility system, or disruption of the system.
``(4) Agreed on alternatives.--The utility and the
owner or operator of the project may reach agreement on
any alternate arrangement and payments or rates
associated with the arrangement that is mutually
satisfactory and in accord with State law.
``(d) Rate Conditions and Criteria.--
``(1) Definitions.--In this subsection:
``(A) Per unit distribution costs.--The term
`per unit distribution costs' means (in
kilowatt hours) the quotient obtained by
dividing--
``(i) the depreciated book-value
distribution system costs of a utility;
by
``(ii) the volume of utility
electricity sales or transmission
during the previous year at the
distribution level.
``(B) Per unit distribution margin.--The term
`per unit distribution margin' means--
``(i) in the case of a State-
regulated electric utility, a per-unit
gross pretax profit equal to the
product obtained by multiplying--
``(I) the State-approved
percentage rate of return for
the utility for distribution
system assets; by
``(II) the per unit
distribution costs; and
``(ii) in the case of a nonregulated
utility, a per unit contribution to net
revenues determined multiplying--
``(I) the percentage (but not
less than 10 percent) obtained
by dividing--
``(aa) the amount of
any net revenue payment
or contribution to the
owners or subscribers
of the nonregulated
utility during the
prior year; by
``(bb) the gross
revenues of the utility
during the prior year
to obtain a percentage;
by
``(II) the per unit
distribution costs.
``(C) Per unit transmission costs.--The term
`per unit transmission costs' means the total
cost of those transmission services purchased
or provided by a utility on a per-kilowatt-hour
basis as included in the retail rate of the
utility.
``(2) Options.--The options described in paragraphs
(1) and (2) in subsection (c) shall be offered under
purchase and transport rate conditions that reflect the
rate components defined under paragraph (1) as
applicable under the circumstances described in
paragraph (3).
``(3) Applicable rates.--
``(A) Rates applicable to sale of net excess
power.--
``(i) In general.--Sales made by a
project owner or operator of a facility
under the option described in
subsection (c)(1) shall be paid for on
a per kilowatt hour basis that shall
equal the full undiscounted retail rate
paid to the utility for power purchased
by the facility minus per unit
distribution costs, that applies to the
type of utility purchasing the power.
``(ii) Voltages exceeding 25
kilovolts.--If the net excess power is
made available for purchase at voltages
that must be transformed to or from
voltages exceeding 25 kilovolts to be
available for resale by the utility,
the purchase price shall further be
reduced by per unit transmission costs.
``(B) Rates applicable to transport by
utility for direct sale to third parties.--
``(i) In general.--Transportation by
utilities of power on behalf of the
owner or operator of a project under
the option described in subsection
(c)(2) shall incur a transportation
rate that shall equal the per unit
distribution costs and per unit
distribution margin, that applies to
the type of utility transporting the
power.
``(ii) Voltages exceeding 25
kilovolts.--If the net excess power is
made available for transportation at
voltages that must be transformed to or
from voltages exceeding 25 kilovolts to
be transported to the designated third-
party purchasers, the transport rate
shall further be increased by per unit
transmission costs.
``(iii) States with competitive
retail markets for electricity.--In a
State with a competitive retail market
for electricity, the applicable
transportation rate for similar
transportation shall be applied in lieu
of any rate calculated under this
paragraph.
``(4) Limitations.--
``(A) In general.--Any rate established for
sale or transportation under this section
shall--
``(i) be modified over time with
changes in the underlying costs or
rates of the electric utility; and
``(ii) reflect the same time-
sensitivity and billing periods as are
established in the retail sales or
transportation rates offered by the
utility.
``(B) Limitation.--No utility shall be
required to purchase or transport a quantity of
net excess power under this section that
exceeds the available capacity of the wires,
meter, or other equipment of the electric
utility serving the site unless the owner or
operator of the project agrees to pay necessary
and reasonable upgrade costs.
``(e) Procedural Requirements for Consideration and
Determination.--
``(1) Public notice and hearing.--
``(A) In general.--The consideration referred
to in subsection (a) shall be made after public
notice and hearing.
``(B) Administration.--The determination
referred to in subsection (a) shall be--
``(i) in writing;
``(ii) based on findings included in
the determination and on the evidence
presented at the hearing; and
``(iii) available to the public.
``(2) Intervention by administrator.--The
Administrator may intervene as a matter of right in a
proceeding conducted under this section--
``(A) to calculate--
``(i) the energy and emissions likely
to be saved by electing to adopt 1 or
more of the options; and
``(ii) the costs and benefits to
ratepayers and the utility; and
``(B) to advocate for the waste-energy
recovery opportunity.
``(3) Procedures.--
``(A) In general.--Except as otherwise
provided in paragraphs (1) and (2), the
procedures for the consideration and
determination referred to in subsection (a)
shall be the procedures established by the
State regulatory authority or the nonregulated
electric utility.
``(B) Multiple projects.--If there is more
than 1 project seeking consideration
simultaneously in connection with the same
utility, the proceeding may encompass all such
projects, if full attention is paid to
individual circumstances and merits and an
individual judgment is reached with respect to
each project.
``(f) Implementation.--
``(1) In general.--The State regulatory authority
(with respect to each electric utility for which the
authority has ratemaking authority) or nonregulated
electric utility may, to the extent consistent with
otherwise applicable State law--
``(A) implement the standard determined under
this section; or
``(B) decline to implement any such standard.
``(2) Nonimplementation of standard.--
``(A) In general.--If a State regulatory
authority (with respect to each electric
utility for which the authority has ratemaking
authority) or nonregulated electric utility
declines to implement any standard established
by this section, the authority or nonregulated
electric utility shall state in writing the
reasons for declining to implement the
standard.
``(B) Availability to public.--The statement
of reasons shall be available to the public.
``(C) Annual report.--The Administrator shall
include in an annual report submitted to
Congress a description of the lost
opportunities for waste-heat recovery from the
project described in subparagraph (A),
specifically identifying the utility and
stating the quantity of lost energy and
emissions savings calculated.
``(D) New petition.--If a State regulatory
authority (with respect to each electric
utility for which the authority has ratemaking
authority) or nonregulated electric utility
declines to implement the standard established
by this section, the project sponsor may submit
a new petition under this section with respect
to the project at any time after the date that
is 2 years after the date on which the State
regulatory authority or nonregulated utility
declined to implement the standard.
``SEC. 375. CLEAN ENERGY APPLICATION CENTERS.
``(a) Renaming.--
``(1) In general.--The Combined Heat and Power
Application Centers of the Department of Energy are
redesignated as Clean Energy Application Centers.
``(2) References.--Any reference in any law, rule,
regulation, or publication to a Combined Heat and Power
Application Center shall be treated as a reference to a
Clean Energy Application Center.
``(b) Relocation.--
``(1) In general.--In order to better coordinate
efforts with the separate Industrial Assessment Centers
and to ensure that the energy efficiency and, when
applicable, the renewable nature of deploying mature
clean energy technology is fully accounted for, the
Secretary shall relocate the administration of the
Clean Energy Application Centers to the Office of
Energy Efficiency and Renewable Energy within the
Department of Energy.
``(2) Office of electricity delivery and energy
reliability.--The Office of Electricity Delivery and
Energy Reliability shall--
``(A) continue to perform work on the role of
technology described in paragraph (1) in
support of the grid and the reliability and
security of the technology; and
``(B) shall assist the Clean Energy
Application Centers in the work of the Centers
with regard to the grid and with electric
utilities.
``(c) Grants.--
``(1) In general.--The Secretary shall make grants to
universities, research centers, and other appropriate
institutions to ensure the continued operations and
effectiveness of 8 Regional Clean Energy Application
Centers in each of the following regions (as designated
for such purposes as of the date of the enactment of
the Energy Independence and Security Act of 2007):
``(A) Gulf Coast.
``(B) Intermountain.
``(C) Mid-Atlantic.
``(D) Midwest.
``(E) Northeast.
``(F) Northwest.
``(G) Pacific.
``(H) Southeast.
``(2) Establishment of goals and compliance.--In
making grants under this subsection, the Secretary
shall ensure that sufficient goals are established and
met by each Center throughout the program duration
concerning outreach and technology deployment.
``(d) Activities.--
``(1) In general.--Each Clean Energy Application
Center shall--
``(A) operate a program to encourage
deployment of clean energy technologies through
education and outreach to building and
industrial professionals; and other individuals
and organizations with an interest in efficient
energy use; and
``(B) provide project specific support to
building and industrial professionals through
assessments and advisory activities.
``(2) Types of activities.--Funds made available
under this section may be used--
``(A) to develop and distribute informational
materials on clean energy technologies,
including continuation of the 8 websites in
existence on the date of enactment of the
Energy Independence and Security Act of 2007;
``(B) to develop and conduct target market
workshops, seminars, internet programs, and
other activities to educate end users,
regulators, and stakeholders in a manner that
leads to the deployment of clean energy
technologies;
``(C) to provide or coordinate onsite
assessments for sites and enterprises that may
consider deployment of clean energy technology;
``(D) to perform market research to identify
high profile candidates for clean energy
deployment;
``(E) to provide consulting support to sites
considering deployment of clean energy
technologies;
``(F) to assist organizations developing
clean energy technologies to overcome barriers
to deployment; and
``(G) to assist companies and organizations
with performance evaluations of any clean
energy technology implemented.
``(e) Duration.--
``(1) In general.--A grant awarded under this section
shall be for a period of 5 years
``(2) Annual evaluations.--Each grant shall be
evaluated annually for the continuation of the grant
based on the activities and results of the grant.
``(f) Authorization.--There is authorized to be appropriated
to carry out this section $10,000,000 for each of fiscal years
2008 through 2012.''.
(b) Table of Contents.--The table of contents of the Energy
Policy and Conservation Act (42 U.S.C. prec. 6201) is amended
by inserting after the items relating to part D of title III
the following:
``Part E--Industrial Energy Efficiency
``Sec. 371. Definitions.
``Sec. 372. Survey and Registry.
``Sec. 373.Waste energy recovery incentive grant program.
``Sec. 374. Additional incentives for recovery, utilization and
prevention of industrial waste energy.
``Sec. 375. Clean Energy Application Centers.''.
SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''
means--
(A) an energy-intensive industry;
(B) a national trade association representing
an energy-intensive industry; or
(C) a person acting on behalf of 1 or more
energy-intensive industries or sectors, as
determined by the Secretary.
(2) Energy-intensive industry.--The term ``energy-
intensive industry'' means an industry that uses
significant quantities of energy as part of its primary
economic activities, including--
(A) information technology, including data
centers containing electrical equipment used in
processing, storing, and transmitting digital
information;
(B) consumer product manufacturing;
(C) food processing;
(D) materials manufacturers, including--
(i) aluminum;
(ii) chemicals;
(iii) forest and paper products;
(iv) metal casting;
(v) glass;
(vi) petroleum refining;
(vii) mining; and
(viii) steel;
(E) other energy-intensive industries, as
determined by the Secretary.
(3) Feedstock.--The term ``feedstock'' means the raw
material supplied for use in manufacturing, chemical,
and biological processes.
(4) Partnership.--The term ``partnership'' means an
energy efficiency partnership established under
subsection (c)(1)(A).
(5) Program.--The term ``program'' means the energy-
intensive industries program established under
subsection (b).
(b) Establishment of Program.--The Secretary shall establish
a program under which the Secretary, in cooperation with
energy-intensive industries and national industry trade
associations representing the energy-intensive industries,
shall support, research, develop, and promote the use of new
materials processes, technologies, and techniques to optimize
energy efficiency and the economic competitiveness of the
United States' industrial and commercial sectors.
(c) Partnerships.--
(1) In general.--As part of the program, the
Secretary shall establish energy efficiency
partnerships between the Secretary and eligible
entities to conduct research on, develop, and
demonstrate new processes, technologies, and operating
practices and techniques to significantly improve the
energy efficiency of equipment and processes used by
energy-intensive industries, including the conduct of
activities to--
(A) increase the energy efficiency of
industrial processes and facilities;
(B) research, develop, and demonstrate
advanced technologies capable of energy
intensity reductions and increased
environmental performance; and
(C) promote the use of the processes,
technologies, and techniques described in
subparagraphs (A) and (B).
(2) Eligible activities.--Partnership activities
eligible for funding under this subsection include--
(A) feedstock and recycling research,
development, and demonstration activities to
identify and promote--
(i) opportunities for meeting
industry feedstock requirements with
more energy efficient and flexible
sources of feedstock or energy supply;
(ii) strategies to develop and deploy
technologies that improve the quality
and quantity of feedstocks recovered
from process and waste streams; and
(iii) other methods using recycling,
reuse, and improved industrial
materials;
(B) research to develop and demonstrate
technologies and processes that utilize
alternative energy sources to supply heat,
power, and new feedstocks for energy-intensive
industries;
(C) research to achieve energy efficiency in
steam, power, control system, and process heat
technologies, and in other manufacturing
processes; and
(D) industrial and commercial energy
efficiency and sustainability assessments to--
(i) assist individual industrial and
commercial sectors in developing tools,
techniques, and methodologies to
assess--
(I) the unique processes and
facilities of the sectors;
(II) the energy utilization
requirements of the sectors;
and
(III) the application of new,
more energy efficient
technologies; and
(ii) conduct energy savings
assessments;
(E) the incorporation of technologies and
innovations that would significantly improve
the energy efficiency and utilization of
energy-intensive commercial applications; and
(F) any other activities that the Secretary
determines to be appropriate.
(3) Proposals.--
(A) In general.--To be eligible for funding
under this subsection, a partnership shall
submit to the Secretary a proposal that
describes the proposed research, development,
or demonstration activity to be conducted by
the partnership.
(B) Review.--After reviewing the scientific,
technical, and commercial merit of a proposals
submitted under subparagraph (A), the Secretary
shall approve or disapprove the proposal.
(C) Competitive awards.--The provision of
funding under this subsection shall be on a
competitive basis.
(4) Cost-sharing requirement.--In carrying out this
section, the Secretary shall require cost sharing in
accordance with section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352).
(d) Grants.--The Secretary may award competitive grants for
innovative technology research, development and demonstrations
to universities, individual inventors, and small companies,
based on energy savings potential, commercial viability, and
technical merit.
(e) Institution of Higher Education-Based Industrial Research
and Assessment Centers.--The Secretary shall provide funding to
institution of higher education-based industrial research and
assessment centers, whose purpose shall be--
(1) to identify opportunities for optimizing energy
efficiency and environmental performance;
(2) to promote applications of emerging concepts and
technologies in small and medium-sized manufacturers;
(3) to promote research and development for the use
of alternative energy sources to supply heat, power,
and new feedstocks for energy-intensive industries;
(4) to coordinate with appropriate Federal and State
research offices, and provide a clearinghouse for
industrial process and energy efficiency technical
assistance resources; and
(5) to coordinate with State-accredited technical
training centers and community colleges, while ensuring
appropriate services to all regions of the United
States.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to the Secretary to carry out this
section--
(A) $184,000,000 for fiscal year 2008;
(B) $190,000,000 for fiscal year 2009;
(C) $196,000,000 for fiscal year 2010;
(D) $202,000,000 for fiscal year 2011;
(E) $208,000,000 for fiscal year 2012; and
(F) such sums as are necessary for fiscal
year 2013 and each fiscal year thereafter.
(2) Partnership activities.--Of the amounts made
available under paragraph (1), not less than 50 percent
shall be used to pay the Federal share of partnership
activities under subsection (c).
(3) Coordination and nonduplication.--The Secretary
shall coordinate efforts under this section with other
programs of the Department and other Federal agencies
to avoid duplication of effort.
SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.
(a) Definitions.--In this section:
(1) Data center.--The term ``data center'' means any
facility that primarily contains electronic equipment
used to process, store, and transmit digital
information, which may be--
(A) a free-standing structure; or
(B) a facility within a larger structure,
that uses environmental control equipment to
maintain the proper conditions for the
operation of electronic equipment.
(2) Data center operator.--The term ``data center
operator'' means any person or government entity that
builds or operates a data center or purchases data
center services, equipment, and facilities.
(b) Voluntary National Information Program.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Secretary and the
Administrator of the Environmental Protection Agency
shall, after consulting with information technology
industry and other interested parties, initiate a
voluntary national information program for those types
of data centers and data center equipment and
facilities that are widely used and for which there is
a potential for significant data center energy savings
as a result of the program.
(2) Requirements.--The program described in paragraph
(1) shall--
(A) address data center efficiency
holistically, reflecting the total energy
consumption of data centers as whole systems,
including both equipment and facilities;
(B) consider prior work and studies
undertaken in this area, including by the
Environmental Protection Agency and the
Department of Energy;
(C) consistent with the objectives described
in paragraph (1), determine the type of data
center and data center equipment and facilities
to be covered under the program;
(D) produce specifications, measurements,
best practices, and benchmarks that will enable
data center operators to make more informed
decisions about the energy efficiency and costs
of data centers, and that take into account--
(i) the performance and use of
servers, data storage devices, and
other information technology equipment;
(ii) the efficiency of heating,
ventilation, and air conditioning,
cooling, and power conditioning
systems, provided that no modification
shall be required of a standard then in
effect under the Energy Policy and
Conservation Act (42 U.S.C. 6201 et
seq.) for any covered heating,
ventilation, air-conditioning, cooling
or power-conditioning product;
(iii) energy savings from the
adoption of software and data
management techniques; and
(iv) other factors determined by the
organization described in subsection
(c);
(E) allow for creation of separate
specifications, measurements, and benchmarks
based on data center size and function, as well
as other appropriate characteristics;
(F) advance the design and implementation of
efficiency technologies to the maximum extent
economically practical;
(G) provide to data center operators in the
private sector and the Federal Government
information about best practices and purchasing
decisions that reduce the energy consumption of
data centers; and
(H) publish the information described in
subparagraph (G), which may be disseminated
through catalogs, trade publications, the
Internet, or other mechanisms, that will allow
data center operators to assess the energy
consumption and potential cost savings of
alternative data centers and data center
equipment and facilities.
(3) Procedures.--The program described in paragraph
(1) shall be developed in consultation with and
coordinated by the organization described in subsection
(c) according to commonly accepted procedures for the
development of specifications, measurements, and
benchmarks.
(c) Data Center Efficiency Organization.--
(1) In general.--After the establishment of the
program described in subsection (b), the Secretary and
the Administrator shall jointly designate an
information technology industry organization to consult
with and to coordinate the program.
(2) Requirements.--The organization designated under
paragraph (1), whether preexisting or formed
specifically for the purposes of subsection (b),
shall--
(A) consist of interested parties that have
expertise in energy efficiency and in the
development, operation, and functionality of
computer data centers, information technology
equipment, and software, as well as
representatives of hardware manufacturers, data
center operators, and facility managers;
(B) obtain and address input from Department
of Energy National Laboratories or any college,
university, research institution, industry
association, company, or public interest group
with applicable expertise in any of the areas
listed in paragraph (1);
(C) follow commonly accepted procedures for
the development of specifications and
accredited standards development processes;
(D) have a mission to develop and promote
energy efficiency for data centers and
information technology; and
(E) have the primary responsibility to
consult in the development and publishing of
the information, measurements, and benchmarks
described in subsection (b) and transmission of
the information to the Secretary and the
Administrator for consideration under
subsection (d).
(d) Measurements and Specifications.--
(1) In general.--The Secretary and the Administrator
shall consider the specifications, measurements, and
benchmarks described in subsection (b) for use by the
Federal Energy Management Program, the Energy Star
Program, and other efficiency programs of the
Department of Energy and Environmental Protection
Agency, respectively.
(2) Rejections.--If the Secretary or the
Administrator rejects 1 or more specifications,
measurements, or benchmarks described in subsection
(b), the rejection shall be made consistent with
section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (15 U.S.C. 272 note; Public Law
104-113).
(3) Determination of impracticability.--A
determination that a specification, measurement, or
benchmark described in subsection (b) is impractical
may include consideration of the maximum efficiency
that is technologically feasible and economically
justified.
(e) Monitoring.--The Secretary and the Administrator shall--
(1) monitor and evaluate the efforts to develop the
program described in subsection (b); and
(2) not later than 3 years after the date of
enactment of this Act, make a determination as to
whether the program is consistent with the objectives
of subsection (b).
(f) Alternative System.--If the Secretary and the
Administrator make a determination under subsection (e) that a
voluntary national information program for data centers
consistent with the objectives of subsection (b) has not been
developed, the Secretary and the Administrator shall, after
consultation with the National Institute of Standards and
Technology and not later than 2 years after the determination,
develop and implement the program under subsection (b).
(g) Protection of Proprietary Information.--The Secretary,
the Administrator, or the data center efficiency organization
shall not disclose any proprietary information or trade secrets
provided by any individual or company for the purposes of
carrying out this section or the program established under this
section.
Subtitle E--Healthy High-Performance Schools
SEC. 461. HEALTHY HIGH-PERFORMANCE SCHOOLS.
(a) Amendment.--The Toxic Substances Control Act (15 U.S.C.
2601 et seq.) is amended by adding at the end the following new
title:
``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS
``SEC. 501. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS.
``(a) In General.--The Administrator, in consultation with
the Secretary of Education, may provide grants to States for
use in--
``(1) providing technical assistance for programs of
the Environmental Protection Agency (including the
Tools for Schools Program and the Healthy School
Environmental Assessment Tool) to schools for use in
addressing environmental issues; and
``(2) development and implementation of State school
environmental health programs that include--
``(A) standards for school building design,
construction, and renovation; and
``(B) identification of ongoing school
building environmental problems, including
contaminants, hazardous substances, and
pollutant emissions, in the State and
recommended solutions to address those
problems, including assessment of information
on the exposure of children to environmental
hazards in school facilities.
``(b) Sunset.--The authority of the Administrator to carry
out this section shall expire 5 years after the date of
enactment of this section.
``SEC. 502. MODEL GUIDELINES FOR SITING OF SCHOOL FACILITIES.
``Not later than 18 months after the date of enactment of
this section, the Administrator, in consultation with the
Secretary of Education and the Secretary of Health and Human
Services, shall issue voluntary school site selection
guidelines that account for--
``(1) the special vulnerability of children to
hazardous substances or pollution exposures in any case
in which the potential for contamination at a potential
school site exists;
``(2) modes of transportation available to students
and staff;
``(3) the efficient use of energy; and
``(4) the potential use of a school at the site as an
emergency shelter.
``SEC. 503. PUBLIC OUTREACH.
``(a) Reports.--The Administrator shall publish and submit to
Congress an annual report on all activities carried out under
this title, until the expiration of authority described in
section 501(b).
``(b) Public Outreach.--The Federal Director appointed under
section 436(a) of the Energy Independence and Security Act of
2007 (in this title referred to as the `Federal Director')
shall ensure, to the maximum extent practicable, that the
public clearinghouse established under section 423(1) of the
Energy Independence and Security Act of 2007 receives and makes
available information on the exposure of children to
environmental hazards in school facilities, as provided by the
Administrator.
``SEC. 504. ENVIRONMENTAL HEALTH PROGRAM.
``(a) In General.--Not later than 2 years after the date of
enactment of this section, the Administrator, in consultation
with the Secretary of Education, the Secretary of Health and
Human Services, and other relevant agencies, shall issue
voluntary guidelines for use by the State in developing and
implementing an environmental health program for schools that--
``(1) takes into account the status and findings of
Federal initiatives established under this title or
subtitle C of title IV of the Energy Independence and
Security Act of 2007 and other relevant Federal law
with respect to school facilities, including relevant
updates on trends in the field, such as the impact of
school facility environments on student and staff--
``(A) health, safety, and productivity; and
``(B) disabilities or special needs;
``(2) takes into account studies using relevant tools
identified or developed in accordance with section 492
of the Energy Independence and Security Act of 2007;
``(3) takes into account, with respect to school
facilities, each of--
``(A) environmental problems, contaminants,
hazardous substances, and pollutant emissions,
including--
``(i) lead from drinking water;
``(ii) lead from materials and
products;
``(iii) asbestos;
``(iv) radon;
``(v) the presence of elemental
mercury releases from products and
containers;
``(vi) pollutant emissions from
materials and products; and
``(vii) any other environmental
problem, contaminant, hazardous
substance, or pollutant emission that
present or may present a risk to the
health of occupants of the school
facilities or environment;
``(B) natural day lighting;
``(C) ventilation choices and technologies;
``(D) heating and cooling choices and
technologies;
``(E) moisture control and mold;
``(F) maintenance, cleaning, and pest control
activities;
``(G) acoustics; and
``(H) other issues relating to the health,
comfort, productivity, and performance of
occupants of the school facilities;
``(4) provides technical assistance on siting,
design, management, and operation of school facilities,
including facilities used by students with disabilities
or special needs;
``(5) collaborates with federally funded pediatric
environmental health centers to assist in on-site
school environmental investigations;
``(6) assists States and the public in better
understanding and improving the environmental health of
children; and
``(7) takes into account the special vulnerability of
children in low-income and minority communities to
exposures from contaminants, hazardous substances, and
pollutant emissions.
``(b) Public Outreach.--The Federal Director and Commercial
Director shall ensure, to the maximum extent practicable, that
the public clearinghouse established under section 423 of the
Energy Independence and Security Act of 2007 receives and makes
available--
``(1) information from the Administrator that is
contained in the report described in section 503(a);
and
``(2) information on the exposure of children to
environmental hazards in school facilities, as provided
by the Administrator.
``SEC. 505. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
title $1,000,000 for fiscal year 2009, and $1,500,000 for each
of fiscal years 2010 through 2013, to remain available until
expended.''.
(b) Table of Contents Amendment.--The table of contents for
the Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is
amended by adding at the end the following:
``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS
``Sec. 501. Grants for healthy school environments.
``Sec. 502. Model guidelines for siting of school facilities.
``Sec. 503. Public outreach.
``Sec. 504. Environmental health program.
``Sec. 505. Authorization of appropriations.''.
SEC. 462. STUDY ON INDOOR ENVIRONMENTAL QUALITY IN SCHOOLS.
(a) In General.--The Administrator of the Environmental
Protection Agency shall enter into an arrangement with the
Secretary of Education and the Secretary of Energy to conduct a
detailed study of how sustainable building features such as
energy efficiency affect multiple perceived indoor
environmental quality stressors on students in K-12 schools.
(b) Contents.--The study shall--
(1) investigate the combined effect building
stressors such as heating, cooling, humidity, lighting,
and acoustics have on building occupants' health,
productivity, and overall well-being;
(2) identify how sustainable building features, such
as energy efficiency, are influencing these human
outcomes singly and in concert; and
(3) ensure that the impacts of the indoor
environmental quality are evaluated as a whole.
(c) Authorization of Appropriations.--There are authorized to
be appropriated for carrying out this section $200,000 for each
of the fiscal years 2008 through 2012.
Subtitle F--Institutional Entities
SEC. 471. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND LOANS FOR
INSTITUTIONS.
Part G of title III of the Energy Policy and Conservation Act
is amended by inserting after section 399 (42 U.S.C. 6371h) the
following:
``SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND LOANS FOR
INSTITUTIONS.
``(a) Definitions.--In this section:
``(1) Combined heat and power.--The term `combined
heat and power' means the generation of electric energy
and heat in a single, integrated system, with an
overall thermal efficiency of 60 percent or greater on
a higher-heating-value basis.
``(2) District energy systems.--The term `district
energy systems' means systems providing thermal energy
from a renewable energy source, thermal energy source,
or highly efficient technology to more than 1 building
or fixed energy-consuming use from 1 or more thermal-
energy production facilities through pipes or other
means to provide space heating, space conditioning, hot
water, steam, compression, process energy, or other end
uses for that energy.
``(3) Energy sustainability.--The term `energy
sustainability' includes using a renewable energy
source, thermal energy source, or a highly efficient
technology for transportation, electricity generation,
heating, cooling, lighting, or other energy services in
fixed installations.
``(4) Institution of higher education.--The term
`institution of higher education' has the meaning given
the term in section 2 of the Energy Policy Act of 2005
(42 U.S.C. 15801).
``(5) Institutional entity.--The term `institutional
entity' means an institution of higher education, a
public school district, a local government, a municipal
utility, or a designee of 1 of those entities.
``(6) Renewable energy source.--The term `renewable
energy source' has the meaning given the term in
section 609 of the Public Utility Regulatory Policies
Act of 1978 (7 U.S.C. 918c).
``(7) Sustainable energy infrastructure.--The term
`sustainable energy infrastructure' means--
``(A) facilities for production of energy
from renewable energy sources, thermal energy
sources, or highly efficient technologies,
including combined heat and power or other
waste heat use; and
``(B) district energy systems.
``(8) Thermal energy source.--The term `thermal
energy source' means--
``(A) a natural source of cooling or heating
from lake or ocean water; and
``(B) recovery of useful energy that would
otherwise be wasted from ongoing energy uses.
``(b) Technical Assistance Grants.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary shall implement a
program of information dissemination and technical
assistance to institutional entities to assist the
institutional entities in identifying, evaluating,
designing, and implementing sustainable energy
infrastructure projects in energy sustainability.
``(2) Assistance.--The Secretary shall support
institutional entities in--
``(A) identification of opportunities for
sustainable energy infrastructure;
``(B) understanding the technical and
economic characteristics of sustainable energy
infrastructure;
``(C) utility interconnection and negotiation
of power and fuel contracts;
``(D) understanding financing alternatives;
``(E) permitting and siting issues;
``(F) obtaining case studies of similar and
successful sustainable energy infrastructure
systems; and
``(G) reviewing and obtaining computer
software for assessment, design, and operation
and maintenance of sustainable energy
infrastructure systems.
``(3) Eligible costs for technical assistance
grants.--On receipt of an application of an
institutional entity, the Secretary may make grants to
the institutional entity to fund a portion of the cost
of--
``(A) feasibility studies to assess the
potential for implementation or improvement of
sustainable energy infrastructure;
``(B) analysis and implementation of
strategies to overcome barriers to project
implementation, including financial,
contracting, siting, and permitting barriers;
and
``(C) detailed engineering of sustainable
energy infrastructure.
``(c) Grants for Energy Efficiency Improvement and Energy
Sustainability.--
``(1) Grants.--
``(A) In general.--The Secretary shall award
grants to institutional entities to carry out
projects to improve energy efficiency on the
grounds and facilities of the institutional
entity.
``(B) Requirement.--To the extent that
applications have been submitted, grants under
subparagraph (A) shall include not less than 1
grant each year to an institution of higher
education in each State.
``(C) Minimum funding.--Not less than 50
percent of the total funding for all grants
under this subsection shall be awarded in
grants to institutions of higher education.
``(2) Criteria.--Evaluation of projects for grant
funding shall be based on criteria established by the
Secretary, including criteria relating to--
``(A) improvement in energy efficiency;
``(B) reduction in greenhouse gas emissions
and other air emissions, including criteria air
pollutants and ozone-depleting refrigerants;
``(C) increased use of renewable energy
sources or thermal energy sources;
``(D) reduction in consumption of fossil
fuels;
``(E) active student participation; and
``(F) need for funding assistance.
``(3) Condition.--As a condition of receiving a grant
under this subsection, an institutional entity shall
agree--
``(A) to implement a public awareness
campaign concerning the project in the
community in which the institutional entity is
located; and
``(B) to submit to the Secretary, and make
available to the public, reports on any
efficiency improvements, energy cost savings,
and environmental benefits achieved as part of
a project carried out under paragraph (1),
including quantification of the results
relative to the criteria described under
paragraph (2).
``(d) Grants for Innovation in Energy Sustainability.--
``(1) Grants.--
``(A) In general.--The Secretary shall award
grants to institutional entities to engage in
innovative energy sustainability projects.
``(B) Requirement.--To the extent that
applications have been submitted, grants under
subparagraph (A) shall include not less than 2
grants each year to institutions of higher
education in each State.
``(C) Minimum funding.--Not less than 50
percent of the total funding for all grants
under this subsection shall be awarded in
grants to institutions of higher education.
``(2) Innovation projects.--An innovation project
carried out with a grant under this subsection shall--
``(A) involve--
``(i) an innovative technology that
is not yet commercially available; or
``(ii) available technology in an
innovative application that maximizes
energy efficiency and sustainability;
``(B) have the greatest potential for testing
or demonstrating new technologies or processes;
and
``(C) to the extent undertaken by an
institution of higher education, ensure active
student participation in the project, including
the planning, implementation, evaluation, and
other phases of projects.
``(3) Condition.--As a condition of receiving a grant
under this subsection, an institutional entity shall
agree to submit to the Secretary, and make available to
the public, reports that describe the results of the
projects carried out using grant funds.
``(e) Allocation to Institutions of Higher Education With
Small Endowments.--
``(1) In general.--Of the total amount of grants
provided to institutions of higher education for a
fiscal year under this section, the Secretary shall
provide not less than 50 percent of the amount to
institutions of higher education that have an endowment
of not more than $100,000,000.
``(2) Requirement.--To the extent that applications
have been submitted, at least 50 percent of the amount
described in paragraph (1) shall be provided to
institutions of higher education that have an endowment
of not more than $50,000,000.
``(f) Grant Amounts.--
``(1) In general.--If the Secretary determines that
cost sharing is appropriate, the amounts of grants
provided under this section shall be limited as
provided in this subsection.
``(2) Technical assistance grants.--In the case of
grants for technical assistance under subsection (b),
grant funds shall be available for not more than--
``(A) an amount equal to the lesser of--
``(i) $50,000; or
``(ii) 75 percent of the cost of
feasibility studies to assess the
potential for implementation or
improvement of sustainable energy
infrastructure;
``(B) an amount equal to the lesser of--
``(i) $90,000; or
``(ii) 60 percent of the cost of
guidance on overcoming barriers to
project implementation, including
financial, contracting, siting, and
permitting barriers; and
``(C) an amount equal to the lesser of--
``(i) $250,000; or
``(ii) 40 percent of the cost of
detailed engineering and design of
sustainable energy infrastructure.
``(3) Grants for efficiency improvement and energy
sustainability.--In the case of grants for efficiency
improvement and energy sustainability under subsection
(c), grant funds shall be available for not more than
an amount equal to the lesser of--
``(A) $1,000,000; or
``(B) 60 percent of the total cost.
``(4) Grants for innovation in energy
sustainability.--In the case of grants for innovation
in energy sustainability under subsection (d), grant
funds shall be available for not more than an amount
equal to the lesser of--
``(A) $500,000; or
``(B) 75 percent of the total cost.
``(g) Loans for Energy Efficiency Improvement and Energy
Sustainability.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary shall provide loans
to institutional entities for the purpose of
implementing energy efficiency improvements and
sustainable energy infrastructure.
``(2) Terms and conditions.--
``(A) In general.--Except as otherwise
provided in this paragraph, loans made under
this subsection shall be on such terms and
conditions as the Secretary may prescribe.
``(B) Maturity.--The final maturity of loans
made within a period shall be the lesser of, as
determined by the Secretary--
``(i) 20 years; or
``(ii) 90 percent of the useful life
of the principal physical asset to be
financed by the loan.
``(C) Default.--No loan made under this
subsection may be subordinated to another debt
contracted by the institutional entity or to
any other claims against the institutional
entity in the case of default.
``(D) Benchmark interest rate.--
``(i) In general.--Loans under this
subsection shall be at an interest rate
that is set by reference to a benchmark
interest rate (yield) on marketable
Treasury securities with a similar
maturity to the direct loans being
made.
``(ii) Minimum.--The minimum interest
rate of loans under this subsection
shall be at the interest rate of the
benchmark financial instrument.
``(iii) New loans.--The minimum
interest rate of new loans shall be
adjusted each quarter to take account
of changes in the interest rate of the
benchmark financial instrument.
``(E) Credit risk.--The Secretary shall--
``(i) prescribe explicit standards
for use in periodically assessing the
credit risk of making direct loans
under this subsection; and
``(ii) find that there is a
reasonable assurance of repayment
before making a loan.
``(F) Advance budget authority required.--New
direct loans may not be obligated under this
subsection except to the extent that
appropriations of budget authority to cover the
costs of the new direct loans are made in
advance, as required by section 504 of the
Federal Credit Reform Act of 1990 (2 U.S.C.
661c).
``(3) Criteria.--Evaluation of projects for potential
loan funding shall be based on criteria established by
the Secretary, including criteria relating to--
``(A) improvement in energy efficiency;
``(B) reduction in greenhouse gas emissions
and other air emissions, including criteria air
pollutants and ozone-depleting refrigerants;
``(C) increased use of renewable electric
energy sources or renewable thermal energy
sources;
``(D) reduction in consumption of fossil
fuels; and
``(E) need for funding assistance, including
consideration of the size of endowment or other
financial resources available to the
institutional entity.
``(4) Labor standards.--
``(A) In general.--All laborers and mechanics
employed by contractors or subcontractors in
the performance of construction, repair, or
alteration work funded in whole or in part
under this section shall be paid wages at rates
not less than those prevailing on projects of a
character similar in the locality as determined
by the Secretary of Labor in accordance with
sections 3141 through 3144, 3146, and 3147 of
title 40, United States Code. The Secretary
shall not approve any such funding without
first obtaining adequate assurance that
required labor standards will be maintained
upon the construction work.
``(B) Authority and functions.--The Secretary
of Labor shall have, with respect to the labor
standards specified in paragraph (1), the
authority and functions set forth in
Reorganization Plan Number 14 of 1950 (15 Fed.
Reg. 3176; 64 Stat. 1267) and section 3145 of
title 40, United States Code.
``(h) Program Procedures.--Not later than 180 days after the
date of enactment of this section, the Secretary shall
establish procedures for the solicitation and evaluation of
potential projects for grant and loan funding and
administration of the grant and loan programs.
``(i) Authorization.--
``(1) Grants.--There is authorized to be appropriated
for the cost of grants authorized in subsections (b),
(c), and (d) $250,000,000 for each of fiscal years 2009
through 2013, of which not more than 5 percent may be
used for administrative expenses.
``(2) Loans.--There is authorized to be appropriated
for the initial cost of direct loans authorized in
subsection (g) $500,000,000 for each of fiscal years
2009 through 2013, of which not more than 5 percent may
be used for administrative expenses.''.
Subtitle G--Public and Assisted Housing
SEC. 481. APPLICATION OF INTERNATIONAL ENERGY CONSERVATION CODE TO
PUBLIC AND ASSISTED HOUSING.
Section 109 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12709) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(C), by striking, ``,
where such standards are determined to be cost
effective by the Secretary of Housing and Urban
Development''; and
(B) in the first sentence of paragraph (2)--
(i) by striking ``Council of American
Building Officials Model Energy Code,
1992'' and inserting ``2006
International Energy Conservation
Code''; and
(ii) by striking ``, and, with
respect to rehabilitation and new
construction of public and assisted
housing funded by HOPE VI
revitalization grants under section 24
of the United States Housing Act of
1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation
Code'';
(2) in subsection (b)--
(A) in the heading, by striking ``MODEL
ENERGY CODE.--'' and inserting ``INTERNATIONAL
ENERGY CONSERVATION CODE.--'';
(B) by inserting ``and rehabilitation'' after
``all new construction''; and
(C) by striking ``, and, with respect to
rehabilitation and new construction of public
and assisted housing funded by HOPE VI
revitalization grants under section 24 of the
United States Housing Act of 1937 (42 U.S.C.
1437v), the 2003 International Energy
Conservation Code'';
(3) in subsection (c)--
(A) in the heading, by striking ``MODEL
ENERGY CODE AND''; and
(B) by striking ``, or, with respect to
rehabilitation and new construction of public
and assisted housing funded by HOPE VI
revitalization grants under section 24 of the
United States Housing Act of 1937 (42 U.S.C.
1437v), the 2003 International Energy
Conservation Code'';
(4) by adding at the end the following:
``(d) Failure To Amend the Standards.--If the Secretary of
Housing and Urban Development and the Secretary of Agriculture
have not, within 1 year after the requirements of the 2006 IECC
or the ASHRAE Standard 90.1-2004 are revised, amended the
standards or made a determination under subsection (c), all new
construction and rehabilitation of housing specified in
subsection (a) shall meet the requirements of the revised code
or standard if--
``(1) the Secretary of Housing and Urban Development
or the Secretary of Agriculture make a determination
that the revised codes do not negatively affect the
availability or affordability of new construction of
assisted housing and single family and multifamily
residential housing (other than manufactured homes)
subject to mortgages insured under the National Housing
Act (12 U.S.C. 1701 et seq.) or insured, guaranteed, or
made by the Secretary of Agriculture under title V of
the Housing Act of 1949 (42 U.S.C. 1471 et seq.),
respectively; and
``(2) the Secretary of Energy has made a
determination under section 304 of the Energy
Conservation and Production Act (42 U.S.C. 6833) that
the revised code or standard would improve energy
efficiency.'';
(5) by striking ``CABO Model Energy Code, 1992'' each
place it appears and inserting ``the 2006 IECC''; and
(6) by striking ``1989'' each place it appears and
inserting ``2004''.
Subtitle H--General Provisions
SEC. 491. DEMONSTRATION PROJECT.
(a) In General.--The Federal Director and the Commercial
Director shall establish guidelines to implement a
demonstration project to contribute to the research goals of
the Office of Commercial High-Performance Green Buildings and
the Office of Federal High-Performance Green Buildings.
(b) Projects.--In accordance with guidelines established by
the Federal Director and the Commercial Director under
subsection (a) and the duties of the Federal Director and the
Commercial Director described in this title, the Federal
Director or the Commercial Director shall carry out--
(1) for each of fiscal years 2009 through 2014, 1
demonstration project per year of green features in a
Federal building selected by the Federal Director in
accordance with relevant agencies and described in
subsection (c)(1), that--
(A) provides for instrumentation, monitoring,
and data collection related to the green
features, for study of the impact of the
features on overall enrgy use and operational
costs, and for the evaluation of the
information obtained through the conduct of
projects and activities under this title; and
(B) achieves the highest rating offered by
the high performance green building system
identified pursuant to section 436(h);
(2) no fewer than 4 demonstration projects at 4
universities, that, as competitively selected by the
Commercial Director in accordance with subsection
(c)(2), have--
(A) appropriate research resources and
relevant projects to meet the goals of the
demonstration project established by the Office
of Commercial High-Performance Green Buildings;
and
(B) the ability--
(i) to serve as a model for high-
performance green building initiatives,
including research and education by
achieving the highest rating offered by
the high performance green building
system identified pursuant to section
436(h);
(ii) to identify the most effective
ways o use high-performance green
building and landscape technologies to
engage and educate undergraduate and
graduate students;
(iii) to effectively implement a
high-performance green building
education program for students and
occupants;
(iv) to demonstrate the effectiveness
of various high-performance
technologies, including their impacts
on energy use and operational costs, in
each of the 4 climatic regions of the
United States described in subsection
(c)(2)(B); and
(v) to explore quantifiable and
nonquantifiable beneficial impacts on
public health and employee and student
performance;
(3) demonstration projects to evaluate replicable
approaches of achieving high performance in actual
building operation in various types of commercial
buildings in various climates; and
(4) deployment activities to disseminate information
on and encourage widespread adoption of technologies,
practices, and policies to achieve zero-net-energy
commercial buildings or low energy use and effective
monitoring of energy use in commercial buildings.
(c) Criteria.--
(1) Federal facilities.--With respect to the existing
or proposed Federal facility at which a demonstration
project under this section is conducted, the Federal
facility shall--
(A) be an appropriate model for a project
relating to--
(i) the effectiveness of high-
performance technologies;
(ii) analysis of materials,
components, systems, and emergency
operations in the building, and the
impact of those materials, components,
and systems, including the impact on
the health of building occupants;
(iii) life-cycle costing and life-
cycle assessment of building materials
and systems; and
(iv) location and design that promote
access to the Federal facility through
walking, biking, and mass transit; and
(B) possess sufficient technological and
organizational adaptability.
(2) Universities.--With respect to the 4 universities
at which a demonstration project under this section is
conducted--
(A) the universities should be selected,
after careful review of all applications
received containing the required information,
as determined by the Commercial Director, based
on--
(i) successful and established
public-private research and development
partnerships;
(ii) demonstrated capabilities to
construct or renovate buildings that
meet high indoor environmental quality
standards;
(iii) organizational flexibility;
(iv) technological adaptability;
(v) the demonstrated capacity of at
least 1 university to replicate lessons
learned among nearby or sister
universities, preferably by
participation in groups or consortia
that promote sustainability;
(vi) the demonstrated capacity of at
least 1 university to have officially-
adopted, institution-wide ``high-
performance green building'' guidelines
for all campus building projects; and
(vii) the demonstrated capacity of at
least 1 university to have been
recognized by similar institutions as a
national leader in sustainability
education and curriculum for students
of the university; and
(B) each university shall be located in a
different climatic region of the United States,
each of which regions shall have, as determined
by the Office of Commercial High-Performance
Green Buildings--
(i) a hot, dry climate;
(ii) a hot, humid climate;
(iii) a cold climate; or
(iv) a temperate climate (including a
climate with cold winters and humid
summers).
(d) Applications.--To receive a grant under subsection (b),
an eligible applicant shall submit to the Federal Director or
the Commercial Director an application at such time, in such
manner, and containing such information as the Director may
require, including a written assurance that all laborers and
mechanics employed by contractors or subcontractors during
construction, alteration, or repair that is financed, in whole
or in part, by a grant under this section shall be paid wages
at rates not less than those prevailing on similar construction
in the locality, as determined by the Secretary of Labor in
accordance with sections 3141 through 3144, 3146, and 3147 of
title 40, United States Code. The Secretary of Labor shall,
with respect to the labor standards described in this
subsection, have the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and
section 3145 of title 40, United States Code.
(e) Report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter through
September 30, 2014--
(1) the Federal Director and the Commercial Director
shall submit to the Secretary a report that describes
the status of the demonstration projects; and
(2) each University at which a demonstration project
under this section is conducted shall submit to the
Secretary a report that describes the status of the
demonstration projects under this section.
(f) Authorization of Appropriations.--There is authorized to
be appropriated to carry out the demonstration project
described in section (b)(1) $10,000,000 for the period of
fiscal years 2008 through 2012, and to carry out the
demonstration project described in section (b)(2), $10,000,000
for the period of fiscal years 2008 through 2012, to remain
available until expended.
SEC. 492. RESEARCH AND DEVELOPMENT.
(a) Establishment.--The Federal Director and the Commercial
Director, jointly and in coordination with the Advisory
Committee, shall--
(1)(A) survey existing research and studies relating
to high-performance green buildings; and
(B) coordinate activities of common interest;
(2) develop and recommend a high-performance green
building research plan that--
(A) identifies information and research
needs, including the relationships between
human health, occupant productivity, safety,
security, and accessibility and each of--
(i) emissions from materials and
products in the building;
(ii) natural day lighting;
(iii) ventilation choices and
technologies;
(iv) heating, cooling, and system
control choices and technologies;
(v) moisture control and mold;
(vi) maintenance, cleaning, and pest
control activities;
(vii) acoustics;
(viii) access to public
transportation; and
(ix) other issues relating to the
health, comfort, productivity, and
performance of occupants of the
building;
(B) promotes the development and
dissemination of high-performance green
building measurement tools that, at a minimum,
may be used--
(i) to monitor and assess the life-
cycle performance of facilities
(including demonstration projects)
built as high-performance green
buildings; and
(ii) to perform life-cycle
assessments; and
(C) identifies and tests new and emerging
technologies for high performance green
buildings;
(3) assist the budget and life-cycle costing
functions of the Directors' Offices under section
436(d);
(4) study and identify potential benefits of green
buildings relating to security, natural disaster, and
emergency needs of the Federal Government; and
(5) support other research initiatives determined by
the Directors' Offices.
(b) Indoor Air Quality.--The Federal Director, in
consultation with the Administrator of the Environmental
Protection Agency and the Advisory Committee, shall develop and
carry out a comprehensive indoor air quality program for all
Federal facilities to ensure the safety of Federal workers and
facility occupants--
(1) during new construction and renovation of
facilities; and
(2) in existing facilities.
SEC. 493. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT PROGRAM
FOR LOCAL GOVERNMENTS.
Title III of the Clean Air Act (42 U.S.C. 7601 et seq.) is
amended by adding at the end the following:
``SEC. 329. DEMONSTRATION GRANT PROGRAM FOR LOCAL GOVERNMENTS.
``(a) Grant Program.--
``(1) In general.--The Administrator shall establish
a demonstration program under which the Administrator
shall provide competitive grants to assist local
governments (such as municipalities and counties), with
respect to local government buildings--
``(A) to deploy cost-effective technologies
and practices; and
``(B) to achieve operational cost savings,
through the application of cost-effective
technologies and practices, as verified by the
Administrator.
``(2) Cost sharing.--
``(A) In general.--The Federal share of the
cost of an activity carried out using a grant
provided under this section shall be 40
percent.
``(B) Waiver of non-federal share.--The
Administrator may waive up to 100 percent of
the local share of the cost of any grant under
this section should the Administrator determine
that the community is economically distressed,
pursuant to objective economic criteria
established by the Administrator in published
guidelines.
``(3) Maximum amount.--The amount of a grant provided
under this subsection shall not exceed $1,000,000.
``(b) Guidelines.--
``(1) In general.--Not later than 1 year after the
date of enactment of this section, the Administrator
shall issue guidelines to implement the grant program
established under subsection (a).
``(2) Requirements.--The guidelines under paragraph
(1) shall establish--
``(A) standards for monitoring and
verification of operational cost savings
through the application of cost-effective
technologies and practices reported by grantees
under this section;
``(B) standards for grantees to implement
training programs, and to provide technical
assistance and education, relating to the
retrofit of buildings using cost-effective
technologies and practices; and
``(C) a requirement that each local
government that receives a grant under this
section shall achieve facility-wide cost
savings, through renovation of existing local
government buildings using cost-effective
technologies and practices, of at least 40
percent as compared to the baseline operational
costs of the buildings before the renovation
(as calculated assuming a 3-year, weather-
normalized average).
``(c) Compliance With State and Local Law.--Nothing in this
section or any program carried out using a grant provided under
this section supersedes or otherwise affects any State or local
law, to the extent that the State or local law contains a
requirement that is more stringent than the relevant
requirement of this section.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2007 through 2012.
``(e) Reports.--
``(1) In general.--The Administrator shall provide
annual reports to Congress on cost savings achieved and
actions taken and recommendations made under this
section, and any recommendations for further action.
``(2) Final report.--The Administrator shall issue a
final report at the conclusion of the program,
including findings, a summary of total cost savings
achieved, and recommendations for further action.
``(f) Termination.--The program under this section shall
terminate on September 30, 2012.
``(g) Definitions.--In this section, the terms `cost
effective technologies and practices' and `operating cost
savings' shall have the meanings defined in section 401 of the
Energy Independence and Security Act of 2007.''.
SEC. 494. GREEN BUILDING ADVISORY COMMITTEE.
(a) Establishment.--Not later than 180 days after the date of
enactment of this Act, the Federal Director, in coordination
with the Commercial Director, shall establish an advisory
committee, to be known as the ``Green Building Advisory
Committee''.
(b) Membership.--
(1) In general.--The Committee shall be composed of
representatives of, at a minimum--
(A) each agency referred to in section
421(e); and
(B) other relevant agencies and entities, as
determined by the Federal Director, including
at least 1 representative of each of--
(i) State and local governmental
green building programs;
(ii) independent green building
associations or councils;
(iii) building experts, including
architects, material suppliers, and
construction contractors;
(iv) security advisors focusing on
national security needs, natural
disasters, and other dire emergency
situations;
(v) public transportation industry
experts; and
(vi) environmental health experts,
including those with experience in
children's health.
(2) Non-federal members.--The total number of non-
Federal members on the Committee at any time shall not
exceed 15.
(c) Meetings.--The Federal Director shall establish a regular
schedule of meetings for the Committee.
(d) Duties.--The Committee shall provide advice and expertise
for use by the Federal Director in carrying out the duties
under this subtitle, including such recommendations relating to
Federal activities carried out under sections 434 through 436
as are agreed to by a majority of the members of the Committee.
(e) FACA Exemption.--The Committee shall not be subject to
section 14 of the Federal Advisory Committee Act (5 U.S.C.
App.).
SEC. 495. ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCE.
(a) Establishment.--The Secretary, acting through the
Assistant Secretary of Energy for Energy Efficiency and
Renewable Energy, shall establish an Advisory Committee on
Energy Efficiency Finance to provide advice and recommendations
to the Department on energy efficiency finance and investment
issues, options, ideas, and trends, and to assist the energy
community in identifying practical ways of lowering costs and
increasing investments in energy efficiency technologies.
(b) Membership.--The advisory committee established under
this section shall have a balanced membership that shall
include members with expertise in--
(1) availability of seed capital;
(2) availability of venture capital;
(3) availability of other sources of private equity;
(4) investment banking with respect to corporate
finance;
(5) investment banking with respect to mergers and
acquisitions;
(6) equity capital markets;
(7) debt capital markets;
(8) research analysis;
(9) sales and trading;
(10) commercial lending; and
(11) residential lending.
(c) Termination.--The Advisory Committee on Energy Efficiency
Finance shall terminate on the date that is 10 years after the
date of enactment of this Act.
(d) Authorization of Appropriations.--There are authorized to
be appropriated such sums as are necessary to the Secretary for
carrying out this section.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A--United States Capitol Complex
SEC. 501. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY STUDIES.
(a) Studies.--The Architect of the Capitol may conduct
feasibility studies regarding construction of photovoltaic
roofs for the Rayburn House Office Building and the Hart Senate
Office Building.
(b) Report.--Not later than 6 months after the date of
enactment of this Act, the Architect of the Capitol shall
transmit to the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on Rules and
Administration of the Senate a report on the results of the
feasibility studies and recommendations regarding construction
of photovoltaic roofs for the buildings referred to in
subsection (a).
(c) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $500,000.
SEC. 502. CAPITOL COMPLEX E-85 REFUELING STATION.
(a) Construction.--The Architect of the Capitol may construct
a fuel tank and pumping system for E-85 fuel at or within close
proximity to the Capitol Grounds Fuel Station.
(b) Use.--The E-85 fuel tank and pumping system shall be
available for use by all legislative branch vehicles capable of
operating with E-85 fuel, subject to such other legislative
branch agencies reimbursing the Architect of the Capitol for
the costs of E-85 fuel used by such other legislative branch
vehicles.
(c) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $640,000 for fiscal
year 2008.
SEC. 503. ENERGY AND ENVIRONMENTAL MEASURES IN CAPITOL COMPLEX MASTER
PLAN.
(a) In General.--To the maximum extent practicable, the
Architect of the Capitol shall include energy efficiency and
conservation measures, greenhouse gas emission reduction
measures, and other appropriate environmental measures in the
Capitol Complex Master Plan.
(b) Report.--Not later than 6 months after the date of
enactment of this Act, the Architect of the Capitol shall
submit to the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on Rules and
Administration of the Senate a report on the energy efficiency
and conservation measures, greenhouse gas emission reduction
measures, and other appropriate environmental measures included
in the Capitol Complex Master Plan pursuant to subsection (a).
SEC. 504. PROMOTING MAXIMUM EFFICIENCY IN OPERATION OF CAPITOL POWER
PLANT.
(a) Steam Boilers.--
(1) In general.--The Architect of the Capitol shall
take such steps as may be necessary to operate the
steam boilers at the Capitol Power Plant in the most
energy efficient manner possible to minimize carbon
emissions and operating costs, including adjusting
steam pressures and adjusting the operation of the
boilers to take into account variations in demand,
including seasonality, for the use of the system.
(2) Effective date.--The Architect shall implement
the steps required under paragraph (1) not later than
30 days after the date of the enactment of this Act.
(b) Chiller Plant.--
(1) In general.--The Architect of the Capitol shall
take such steps as may be necessary to operate the
chiller plant at the Capitol Power Plant in the most
energy efficient manner possible to minimize carbon
emissions and operating costs, including adjusting
water temperatures and adjusting the operation of the
chillers to take into account variations in demand,
including seasonality, for the use of the system.
(2) Effective date.--The Architect shall implement
the steps required under paragraph (1) not later than
30 days after the date of the enactment of this Act.
(c) Meters.--Not later than 90 days after the date of the
enactment of this Act, the Architect of the Capitol shall
evaluate the accuracy of the meters in use at the Capitol Power
Plant and correct them as necessary.
(d) Report on Implementation.--Not later than 180 days after
the date of the enactment of this Act, the Architect of the
Capitol shall complete the implementation of the requirements
of this section and submit a report describing the actions
taken and the energy efficiencies achieved to the Committee on
Transportation and Infrastructure of the House of
Representatives, the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on House
Administration of the House of Representatives, and the
Committee on Rules and Administration of the Senate.
SEC. 505. CAPITOL POWER PLANT CARBON DIOXIDE EMISSIONS FEASIBILITY
STUDY AND DEMONSTRATION PROJECTS.
The first section of the Act of March 4, 1911 (2 U.S.C. 2162;
36 Stat. 1414, chapter 285) is amended in the seventh
undesignated paragraph (relating to the Capitol power plant)
under the heading ``Public Buildings'', under the heading
``Under the Department of Interior''--
(1) by striking ``ninety thousand dollars:'' and
inserting $90,000.''; and
(2) by striking ``Provided, That hereafter the'' and
all that follows through the end of the proviso and
inserting the following:
``(a) Designation.--The heating, lighting, and power plant
constructed under the terms of the Act approved April 28, 1904
(33 Stat. 479, chapter 1762) shall be known as the `Capitol
Power Plant'.
``(b) Definition.--In this section, the term `carbon dioxide
energy efficiency' means the quantity of electricity used to
power equipment for carbon dioxide capture and storage or use.
``(c) Feasibility Study.--The Architect of the Capitol shall
conduct a feasibility study evaluating the available methods to
capture, store, and use carbon dioxide emitted from the Capitol
Power Plant as a result of burning fossil fuels. In carrying
out the feasibility study, the Architect of the Capitol is
encouraged to consult with individuals with expertise in carbon
capture and storage or use, including experts with the
Environmental Protection Agency, Department of Energy, academic
institutions, non-profit organizations, and industry, as
appropriate. The study shall consider--
``(1) the availability of technologies to capture and
store or use Capitol Power Plant carbon dioxide
emissions;
``(2) strategies to conserve energy and reduce carbon
dioxide emissions at the Capitol Power Plant; and
``(3) other factors as determined by the Architect of
the Capitol.
``(d) Demonstration Projects.--
``(1) In general.--If the feasibility study
determines that a demonstration project to capture and
store or use Capitol Power Plant carbon dioxide
emissions is technologically feasible and economically
justified (including direct and indirect economic and
environmental benefits), the Architect of the Capitol
may conduct one or more demonstration projects to
capture and store or use carbon dioxide emitted from
the Capitol Power Plant as a result of burning fossil
fuels.
``(2) Factors for consideration.--In carrying out
such demonstration projects, the Architect of the
Capitol shall consider--
``(A) the amount of Capitol Power Plant
carbon dioxide emissions to be captured and
stored or used;
``(B) whether the proposed project is able to
reduce air pollutants other than carbon
dioxide;
``(C) the carbon dioxide energy efficiency of
the proposed project;
``(D) whether the proposed project is able to
use carbon dioxide emissions;
``(E) whether the proposed project could be
expanded to significantly increase the amount
of Capitol Power Plant carbon dioxide emissions
to be captured and stored or used;
``(F) the potential environmental, energy,
and educational benefits of demonstrating the
capture and storage or use of carbon dioxide at
the U.S. Capitol; and
``(G) other factors as determined by the
Architect of the Capitol.
``(3) Terms and conditions.--A demonstration project
funded under this section shall be subject to such
terms and conditions as the Architect of the Capitol
may prescribe.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out the feasibility study and
demonstration project $3,000,000. Such sums shall remain
available until expended.''.
Subtitle B--Energy Savings Performance Contracting
SEC. 511. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS.
(a) In General.--Section 801(a)(2)(D) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)(2)(D)) is amended--
(1) in clause (ii), by inserting ``and'' after the
semicolon at the end;
(2) by striking clause (iii); and
(3) by redesignating clause (iv) as clause (iii).
(b) Reports.--Section 548(a)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(a)(2)) is amended by
inserting ``and any termination penalty exposure'' after ``the
energy and cost savings that have resulted from such
contracts''.
(c) Conforming Amendment.--Section 2913 of title 10, United
States Code, is amended by striking subsection (e).
SEC. 512. FINANCING FLEXIBILITY.
Section 801(a)(2) of the National Energy Conservation Policy
Act (42 U.S.C. 8287(a)(2)) is amended by adding at the end the
following:
``(E) Funding options.--In carrying out a
contract under this title, a Federal agency may
use any combination of--
``(i) appropriated funds; and
``(ii) private financing under an
energy savings performance contract.''.
SEC. 513. PROMOTING LONG-TERM ENERGY SAVINGS PERFORMANCE CONTRACTS AND
VERIFYING SAVINGS.
Section 801(a)(2) of the National Energy Conservation Policy
Act (42 U.S.C. 8287(a)(2)) (as amended by section 512) is
amended--
(1) in subparagraph (D), by inserting ``beginning on
the date of the delivery order'' after ``25 years'';
and
(2) by adding at the end the following:
``(F) Promotion of contracts.--In carrying
out this section, a Federal agency shall not--
``(i) establish a Federal agency
policy that limits the maximum contract
term under subparagraph (D) to a period
shorter than 25 years; or
``(ii) limit the total amount of
obligations under energy savings
performance contracts or other private
financing of energy savings measures.
``(G) Measurement and verification
requirements for private financing.--
``(i) In general.--In the case of
energy savings performance contracts,
the evaluations and savings measurement
and verification required under
paragraphs (2) and (4) of section
543(f) shall be used by a Federal
agency to meet the requirements for the
need for energy audits, calculation of
energy savings, and any other
evaluation of costs and savings needed
to implement the guarantee of savings
under this section.
``(ii) Modification of existing
contracts.--Not later than 18 months
after the date of enactment of this
subparagraph, each Federal agency
shall, to the maximum extent
practicable, modify any indefinite
delivery and indefinite quantity energy
savings performance contracts, and
other indefinite delivery and
indefinite quantity contracts using
private financing, to conform to the
amendments made by subtitle B of title
V of the Energy Independence and
Security Act of 2007.''.
SEC. 514. PERMANENT REAUTHORIZATION.
Section 801 of the National Energy Conservation Policy Act
(42 U.S.C. 8287) is amended by striking subsection (c).
SEC. 515. DEFINITION OF ENERGY SAVINGS.
Section 804(2) of the National Energy Conservation Policy Act
(42 U.S.C. 8287c(2)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C)
as clauses (i), (ii), and (iii), respectively, and
indenting appropriately;
(2) by striking ``means a reduction'' and inserting
``means--
``(A) a reduction'';
(3) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following:
``(B) the increased efficient use of an
existing energy source by cogeneration or heat
recovery;
``(C) if otherwise authorized by Federal or
State law (including regulations), the sale or
transfer of electrical or thermal energy
generated on-site from renewable energy sources
or cogeneration, but in excess of Federal
needs, to utilities or non-Federal energy
users; and
``(D) the increased efficient use of existing
water sources in interior or exterior
applications.''.
SEC. 516. RETENTION OF SAVINGS.
Section 546(c) of the National Energy Conservation Policy Act
(42 U.S.C. 8256(c)) is amended by striking paragraph (5).
SEC. 517. TRAINING FEDERAL CONTRACTING OFFICERS TO NEGOTIATE ENERGY
EFFICIENCY CONTRACTS.
(a) Program.--The Secretary shall create and administer in
the Federal Energy Management Program a training program to
educate Federal contract negotiation and contract management
personnel so that the contract officers are prepared to--
(1) negotiate energy savings performance contracts;
(2) conclude effective and timely contracts for
energy efficiency services with all companies offering
energy efficiency services; and
(3) review Federal contracts for all products and
services for the potential energy efficiency
opportunities and implications of the contracts.
(b) Schedule.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall plan, staff,
announce, and begin training under the Federal Energy
Management Program.
(c) Personnel to Be Trained.--Personnel appropriate to
receive training under the Federal Energy Management Program
shall be selected by and sent for the training from--
(1) the Department of Defense;
(2) the Department of Veterans Affairs;
(3) the Department;
(4) the General Services Administration;
(5) the Department of Housing and Urban Development;
(6) the United States Postal Service; and
(7) all other Federal agencies and departments that
enter contracts for buildings, building services,
electricity and electricity services, natural gas and
natural gas services, heating and air conditioning
services, building fuel purchases, and other types of
procurement or service contracts determined by the
Secretary, in carrying out the Federal Energy
Management Program, to offer the potential for energy
savings and greenhouse gas emission reductions if
negotiated with taking into account those goals.
(d) Trainers.--Training under the Federal Energy Management
Program may be conducted by--
(1) attorneys or contract officers with experience in
negotiating and managing contracts described in
subsection (c)(7) from any agency, except that the
Secretary shall reimburse the related salaries and
expenses of the attorneys or contract officers from
amounts made available for carrying out this section to
the extent the attorneys or contract officers are not
employees of the Department; and
(2) private experts hired by the Secretary for the
purposes of this section, except that the Secretary may
not hire experts who are simultaneously employed by any
company under contract to provide energy efficiency
services to the Federal Government.
(e) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary to carry out this section
$750,000 for each of fiscal years 2008 through 2012.
SEC. 518. STUDY OF ENERGY AND COST SAVINGS IN NONBUILDING APPLICATIONS.
(a) Definitions.--In this section:
(1) Nonbuilding application.--The term ``nonbuilding
application'' means--
(A) any class of vehicles, devices, or
equipment that is transportable under the power
of the applicable vehicle, device, or equipment
by land, sea, or air and that consumes energy
from any fuel source for the purpose of--
(i) that transportation; or
(ii) maintaining a controlled
environment within the vehicle, device,
or equipment; and
(B) any federally-owned equipment used to
generate electricity or transport water.
(2) Secondary savings.--
(A) In general.--The term ``secondary
savings'' means additional energy or cost
savings that are a direct consequence of the
energy savings that result from the energy
efficiency improvements that were financed and
implemented pursuant to an energy savings
performance contract.
(B) Inclusions.--The term ``secondary
savings'' includes--
(i) energy and cost savings that
result from a reduction in the need for
fuel delivery and logistical support;
(ii) personnel cost savings and
environmental benefits; and
(iii) in the case of electric
generation equipment, the benefits of
increased efficiency in the production
of electricity, including revenues
received by the Federal Government from
the sale of electricity so produced.
(b) Study.--
(1) In general.--As soon as practicable after the
date of enactment of this Act, the Secretary and the
Secretary of Defense shall jointly conduct, and submit
to Congress and the President a report of, a study of
the potential for the use of energy savings performance
contracts to reduce energy consumption and provide
energy and cost savings in nonbuilding applications.
(2) Requirements.--The study under this subsection
shall include--
(A) an estimate of the potential energy and
cost savings to the Federal Government,
including secondary savings and benefits, from
increased efficiency in nonbuilding
applications;
(B) an assessment of the feasibility of
extending the use of energy savings performance
contracts to nonbuilding applications,
including an identification of any regulatory
or statutory barriers to that use; and
(C) such recommendations as the Secretary and
Secretary of Defense determine to be
appropriate.
Subtitle C--Energy Efficiency in Federal Agencies
SEC. 521. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT OF ENERGY
HEADQUARTERS BUILDING.
(a) In General.--The Administrator of General Services shall
install a photovoltaic system, as set forth in the Sun Wall
Design Project, for the headquarters building of the Department
located at 1000 Independence Avenue, SW., Washington, DC,
commonly known as the Forrestal Building.
(b) Funding.--There shall be available from the Federal
Buildings Fund established by section 592 of title 40, United
States Code, $30,000,000 to carry out this section. Such sums
shall be derived from the unobligated balance of amounts made
available from the Fund for fiscal year 2007, and prior fiscal
years, for repairs and alternations and other activities
(excluding amounts made available for the energy program). Such
sums shall remain available until expended.
SEC. 522. PROHIBITION ON INCANDESCENT LAMPS BY COAST GUARD.
(a) Prohibition.--Except as provided by subsection (b), on
and after January 1, 2009, a general service incandescent lamp
shall not be purchased or installed in a Coast Guard facility
by or on behalf of the Coast Guard.
(b) Exception.--A general service incandescent lamp may be
purchased, installed, and used in a Coast Guard facility
whenever the application of a general service incandescent lamp
is--
(1) necessary due to purpose or design, including
medical, security, and industrial applications;
(2) reasonable due to the architectural or historical
value of a light fixture installed before January 1,
2009; or
(3) the Commandant of the Coast Guard determines that
operational requirements necessitate the use of a
general service incandescent lamp.
(c) Limitation.--In this section, the term ``facility'' does
not include a vessel or aircraft of the Coast Guard.
SEC. 523. STANDARD RELATING TO SOLAR HOT WATER HEATERS.
Section 305(a)(3)(A) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(A)) is amended--
(1) in clause (i)(II), by striking ``and'' at the
end;
(2) in clause (ii), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(iii) if lifecycle cost-effective,
as compared to other reasonably
available technologies, not less than
30 percent of the hot water demand for
each new Federal building or Federal
building undergoing a major renovation
be met through the installation and use
of solar hot water heaters.''.
SEC. 524. FEDERALLY-PROCURED APPLIANCES WITH STANDBY POWER.
Section 553 of the National Energy Conservation Policy Act
(42 U.S.C. 8259b) is amended--
(1) by redesignating subsection (e) as subsection
(f); and
(2) by inserting after subsection (d) the following:
``(e) Federally-Procured Appliances With Standby Power.--
``(1) Definition of eligible product.--In this
subsection, the term `eligible product' means a
commercially available, off-the-shelf product that--
``(A)(i) uses external standby power devices;
or
``(ii) contains an internal standby power
function; and
``(B) is included on the list compiled under
paragraph (4).
``(2) Federal purchasing requirement.--Subject to
paragraph (3), if an agency purchases an eligible
product, the agency shall purchase--
``(A) an eligible product that uses not more
than 1 watt in the standby power consuming mode
of the eligible product; or
``(B) if an eligible product described in
subparagraph (A) is not available, the eligible
product with the lowest available standby power
wattage in the standby power consuming mode of
the eligible product.
``(3) Limitation.--The requirements of paragraph (2)
shall apply to a purchase by an agency only if--
``(A) the lower-wattage eligible product is--
``(i) lifecycle cost-effective; and
``(ii) practicable; and
``(B) the utility and performance of the
eligible product is not compromised by the
lower wattage requirement.
``(4) Eligible products.--The Secretary, in
consultation with the Secretary of Defense, the
Administrator of the Environmental Protection Agency,
and the Administrator of General Services, shall
compile a publicly accessible list of cost-effective
eligible products that shall be subject to the
purchasing requirements of paragraph (2).''.
SEC. 525. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Amendments.--Section 553 of the National Energy
Conservation Policy Act (42 U.S.C. 8259b) is amended--
(1) in subsection (b)(1), by inserting ``in a product
category covered by the Energy Star program or the
Federal Energy Management Program for designated
products'' after ``energy consuming product''; and
(2) in the second sentence of subsection (c)--
(A) by inserting ``list in their catalogues,
represent as available, and'' after ``Logistics
Agency shall''; and
(B) by striking ``where the agency'' and
inserting ``in which the head of the agency''.
(b) Catalogue Listing Deadline.--Not later than 9 months
after the date of enactment of this Act, the General Services
Administration and the Defense Logistics Agency shall ensure
that the requirement established by the amendment made by
subsection (a)(2)(A) has been fully complied with.
SEC. 526. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.
No Federal agency shall enter into a contract for procurement
of an alternative or synthetic fuel, including a fuel produced
from nonconventional petroleum sources, for any mobility-
related use, other than for research or testing, unless the
contract specifies that the lifecycle greenhouse gas emissions
associated with the production and combustion of the fuel
supplied under the contract must, on an ongoing basis, be less
than or equal to such emissions from the equivalent
conventional fuel produced from conventional petroleum sources.
SEC. 527. GOVERNMENT EFFICIENCY STATUS REPORTS.
(a) In General.--Each Federal agency subject to any of the
requirements of this title or the amendments made by this title
shall compile and submit to the Director of the Office of
Management and Budget an annual Government efficiency status
report on--
(1) compliance by the agency with each of the
requirements of this title and the amendments made by
this title;
(2) the status of the implementation by the agency of
initiatives to improve energy efficiency, reduce energy
costs, and reduce emissions of greenhouse gases; and
(3) savings to the taxpayers of the United States
resulting from mandated improvements under this title
and the amendments made by this title
(b) Submission.--The report shall be submitted--
(1) to the Director at such time as the Director
requires;
(2) in electronic, not paper, format; and
(3) consistent with related reporting requirements.
SEC. 528. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.
(a) Reports.--Not later than April 1 of each year, the
Director of the Office of Management and Budget shall submit an
annual Government efficiency report to the Committee on
Oversight and Government Reform of the House of Representatives
and the Committee on Governmental Affairs of the Senate, which
shall contain--
(1) a summary of the information reported by agencies
under section 527;
(2) an evaluation of the overall progress of the
Federal Government toward achieving the goals of this
title and the amendments made by this title; and
(3) recommendations for additional actions necessary
to meet the goals of this title and the amendments made
by this title.
(b) Scorecards.--The Director of the Office of Management and
Budget shall include in any annual energy scorecard the
Director is otherwise required to submit a description of the
compliance of each agency with the requirements of this title
and the amendments made by this title.
SEC. 529. ELECTRICITY SECTOR DEMAND RESPONSE.
(a) In General.--Title V of the National Energy Conservation
Policy Act (42 U.S.C. 8241 et seq.) is amended by adding at the
end the following:
``PART 5--PEAK DEMAND REDUCTION
``SEC. 571. NATIONAL ACTION PLAN FOR DEMAND RESPONSE.
``(a) National Assessment and Report.--The Federal Energy
Regulatory Commission (`Commission') shall conduct a National
Assessment of Demand Response. The Commission shall, within 18
months of the date of enactment of this part, submit a report
to Congress that includes each of the following:
``(1) Estimation of nationwide demand response
potential in 5 and 10 year horizons, including data on
a State-by-State basis, and a methodology for updates
of such estimates on an annual basis.
``(2) Estimation of how much of this potential can be
achieved within 5 and 10 years after the enactment of
this part accompanied by specific policy
recommendations that if implemented can achieve the
estimated potential. Such recommendations shall include
options for funding and/or incentives for the
development of demand response resources.
``(3) The Commission shall further note any barriers
to demand response programs offering flexible, non-
discriminatory, and fairly compensatory terms for the
services and benefits made available, and shall provide
recommendations for overcoming such barriers.
``(4) The Commission shall seek to take advantage of
preexisting research and ongoing work, and shall insure
that there is no duplication of effort.
``(b) National Action Plan on Demand Response.--The
Commission shall further develop a National Action Plan on
Demand Response, soliciting and accepting input and
participation from a broad range of industry stakeholders,
State regulatory utility commissioners, and non-governmental
groups. The Commission shall seek consensus where possible, and
decide on optimum solutions to issues that defy consensus. Such
Plan shall be completed within one year after the completion of
the National Assessment of Demand Response, and shall meet each
of the following objectives:
``(1) Identification of requirements for technical
assistance to States to allow them to maximize the
amount of demand response resources that can be
developed and deployed.
``(2) Design and identification of requirements for
implementation of a national communications program
that includes broad-based customer education and
support.
``(3) Development or identification of analytical
tools, information, model regulatory provisions, model
contracts, and other support materials for use by
customers, states, utilities and demand response
providers.
``(c) Upon completion, the National Action Plan on Demand
Response shall be published, together with any favorable and
dissenting comments submitted by participants in its
preparation. Six months after publication, the Commission,
together with the Secretary of Energy, shall submit to Congress
a proposal to implement the Action Plan, including specific
proposed assignments of responsibility, proposed budget
amounts, and any agreements secured for participation from
State and other participants.
``(d) Authorization.--There are authorized to be appropriated
to the Commission to carry out this section not more than
$10,000,000 for each of the fiscal years 2008, 2009, and
2010.''.
(b) Table of Contents.--The table of contents for the
National Energy Conservation Policy Act (42 U.S.C. 8201 note)
is amended by adding after the items relating to part 4 of
title V the following:
``Part 5--Peak Demand Reduction
``Sec. 571. National Action Plan for Demand Response.''.
Subtitle D--Energy Efficiency of Public Institutions
SEC. 531. REAUTHORIZATION OF STATE ENERGY PROGRAMS.
Section 365(f) of the Energy Policy and Conservation Act (42
U.S.C. 6325(f)) is amended by striking ``$100,000,000 for each
of the fiscal years 2006 and 2007 and $125,000,000 for fiscal
year 2008'' and inserting ``$125,000,000 for each of fiscal
years 2007 through 2012''.
SEC. 532. UTILITY ENERGY EFFICIENCY PROGRAMS.
(a) Electric Utilities.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended
by adding at the end the following:
``(16) Integrated resource planning.--Each electric
utility shall--
``(A) integrate energy efficiency resources
into utility, State, and regional plans; and
``(B) adopt policies establishing cost-
effective energy efficiency as a priority
resource.
``(17) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be
charged by any electric utility shall--
``(i) align utility incentives with
the delivery of cost-effective energy
efficiency; and
``(ii) promote energy efficiency
investments.
``(B) Policy options.--In complying with
subparagraph (A), each State regulatory
authority and each nonregulated utility shall
consider--
``(i) removing the throughput
incentive and other regulatory and
management disincentives to energy
efficiency;
``(ii) providing utility incentives
for the successful management of energy
efficiency programs;
``(iii) including the impact on
adoption of energy efficiency as 1 of
the goals of retail rate design,
recognizing that energy efficiency must
be balanced with other objectives;
``(iv) adopting rate designs that
encourage energy efficiency for each
customer class;
``(v) allowing timely recovery of
energy efficiency-related costs; and
``(vi) offering home energy audits,
offering demand response programs,
publicizing the financial and
environmental benefits associated with
making home energy efficiency
improvements, and educating homeowners
about all existing Federal and State
incentives, including the availability
of low-cost loans, that make energy
efficiency improvements more
affordable.''.
(b) Natural Gas Utilities.--Section 303(b) of the Public
Utility Regulatory Policies Act of 1978 (15 U.S.C. 3203(b)) is
amended by adding at the end the following:
``(5) Energy efficiency.--Each natural gas utility
shall--
``(A) integrate energy efficiency resources
into the plans and planning processes of the
natural gas utility; and
``(B) adopt policies that establish energy
efficiency as a priority resource in the plans
and planning processes of the natural gas
utility.
``(6) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be
charged by a natural gas utility shall align
utility incentives with the deployment of cost-
effective energy efficiency.
``(B) Policy options.--In complying with
subparagraph (A), each State regulatory
authority and each nonregulated utility shall
consider--
``(i) separating fixed-cost revenue
recovery from the volume of
transportation or sales service
provided to the customer;
``(ii) providing to utilities
incentives for the successful
management of energy efficiency
programs, such as allowing utilities to
retain a portion of the cost-reducing
benefits accruing from the programs;
``(iii) promoting the impact on
adoption of energy efficiency as 1 of
the goals of retail rate design,
recognizing that energy efficiency must
be balanced with other objectives; and
``(iv) adopting rate designs that
encourage energy efficiency for each
customer class.
For purposes of applying the provisions of this
subtitle to this paragraph, any reference in
this subtitle to the date of enactment of this
Act shall be treated as a reference to the date
of enactment of this paragraph.''.
(c) Conforming Amendment.--Section 303(a) of the Public
Utility Regulatory Policies Act of 1978 U.S.C. 3203(a)) is
amended by striking ``and (4)'' inserting ``(4), (5), and
(6)''.
Subtitle E--Energy Efficiency and Conservation Block Grants
SEC. 541. DEFINITIONS.
In this subtitle:
(1) Eligible entity.--The term ``eligible entity''
means--
(A) a State;
(B) an eligible unit of local government; and
(C) an Indian tribe.
(2) Eligible unit of local government.--The term
``eligible unit of local government'' means--
(A) an eligible unit of local government-
alternative 1; and
(B) an eligible unit of local government-
alternative 2.
(3)(A) Eligible unit of local government-alternative
1.--The term ``eligible unit of local government-
alternative 1'' means--
(i) a city with a population--
(I) of at least 35,000; or
(II) that causes the city to be 1 of
the 10 highest-populated cities of the
State in which the city is located; and
(ii) a county with a population--
(I) of at least 200,000; or
(II) that causes the county to be 1
of the 10 highest-populated counties of
the State in which the county is
located.
(B) Eligible unit of local government-alternative
2.--The term ``eligible unit of local government-
alternative 2'' means--
(i) a city with a population of at least
50,000; or
(ii) a county with a population of at least
200,000.
(4) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b).
(5) Program.--The term ``program'' means the Energy
Efficiency and Conservation Block Grant Program
established under section 542(a).
(6) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the
United States.
SEC. 542. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM.
(a) Establishment.--The Secretary shall establish a program,
to be known as the ``Energy Efficiency and Conservation Block
Grant Program'', under which the Secretary shall provide grants
to eligible entities in accordance with this subtitle.
(b) Purpose.--The purpose of the program shall be to assist
eligible entities in implementing strategies--
(1) to reduce fossil fuel emissions created as a
result of activities within the jurisdictions of
eligible entities in manner that--
(A) is environmentally sustainable; and
(B) to the maximum extent practicable,
maximizes benefits for local and regional
communities;
(2) to reduce the total energy use of the eligible
entities; and
(3) to improve energy efficiency in--
(A) the transportation sector;
(B) the building sector; and
(C) other appropriate sectors.
SEC. 543. ALLOCATION OF FUNDS.
(a) In General.--Of amounts made available to provide grants
under this subtitle for each fiscal year, the Secretary shall
allocate--
(1) 68 percent to eligible units of local government
in accordance with subsection (b);
(2) 28 percent to States in accordance with
subsection (c);
(3) 2 percent to Indian tribes in accordance with
subsection (d); and
(4) 2 percent for competitive grants under section
546.
(b) Eligible Units of Local Government.--Of amounts available
for distribution to eligible units of local government under
subsection (a)(1), the Secretary shall provide grants to
eligible units of local government under this section based on
a formula established by the Secretary according to--
(1) the populations served by the eligible units of
local government, according to the latest available
decennial census; and
(2) the daytime populations of the eligible units of
local government and other similar factors (such as
square footage of commercial, office, and industrial
space), as determined by the Secretary.
(c) States.--Of amounts available for distribution to States
under subsection (a)(2), the Secretary shall provide--
(1) not less than 1.25 percent to each State; and
(2) the remainder among the States, based on a
formula to be established by the Secretary that takes
into account--
(A) the population of each State; and
(B) any other criteria that the Secretary
determines to be appropriate.
(d) Indian Tribes.--Of amounts available for distribution to
Indian tribes under subsection (a)(3), the Secretary shall
establish a formula for allocation of the amounts to Indian
tribes, taking into account any factors that the Secretary
determines to be appropriate.
(e) Publication of Allocation Formulas.--Not later than 90
days before the beginning of each fiscal year for which grants
are provided under this subtitle, the Secretary shall publish
in the Federal Register the formulas for allocation established
under this section.
(f) State and Local Advisory Committee.--The Secretary shall
establish a State and local advisory committee to advise the
Secretary regarding administration, implementation, and
evaluation of the program.
SEC. 544. USE OF FUNDS.
An eligible entity may use a grant received under this
subtitle to carry out activities to achieve the purposes of the
program, including--
(1) development and implementation of an energy
efficiency and conservation strategy under section
545(b);
(2) retaining technical consultant services to assist
the eligible entity in the development of such a
strategy, including--
(A) formulation of energy efficiency, energy
conservation, and energy usage goals;
(B) identification of strategies to achieve
those goals--
(i) through efforts to increase
energy efficiency and reduce energy
consumption; and
(ii) by encouraging behavioral
changes among the population served by
the eligible entity;
(C) development of methods to measure
progress in achieving the goals;
(D) development and publication of annual
reports to the population served by the
eligible entity describing--
(i) the strategies and goals; and
(ii) the progress made in achieving
the strategies and goals during the
preceding calendar year; and
(E) other services to assist in the
implementation of the energy efficiency and
conservation strategy;
(3) conducting residential and commercial building
energy audits;
(4) establishment of financial incentive programs for
energy efficiency improvements;
(5) the provision of grants to nonprofit
organizations and governmental agencies for the purpose
of performing energy efficiency retrofits;
(6) development and implementation of energy
efficiency and conservation programs for buildings and
facilities within the jurisdiction of the eligible
entity, including--
(A) design and operation of the programs;
(B) identifying the most effective methods
for achieving maximum participation and
efficiency rates;
(C) public education;
(D) measurement and verification protocols;
and
(E) identification of energy efficient
technologies;
(7) development and implementation of programs to
conserve energy used in transportation, including--
(A) use of flex time by employers;
(B) satellite work centers;
(C) development and promotion of zoning
guidelines or requirements that promote energy
efficient development;
(D) development of infrastructure, such as
bike lanes and pathways and pedestrian
walkways;
(E) synchronization of traffic signals; and
(F) other measures that increase energy
efficiency and decrease energy consumption;
(8) development and implementation of building codes
and inspection services to promote building energy
efficiency;
(9) application and implementation of energy
distribution technologies that significantly increase
energy efficiency, including--
(A) distributed resources; and
(B) district heating and cooling systems;
(10) activities to increase participation and
efficiency rates for material conservation programs,
including source reduction, recycling, and recycled
content procurement programs that lead to increases in
energy efficiency;
(11) the purchase and implementation of technologies
to reduce, capture, and, to the maximum extent
practicable, use methane and other greenhouse gases
generated by landfills or similar sources;
(12) replacement of traffic signals and street
lighting with energy efficient lighting technologies,
including--
(A) light emitting diodes; and
(B) any other technology of equal or greater
energy efficiency;
(13) development, implementation, and installation on
or in any government building of the eligible entity of
onsite renewable energy technology that generates
electricity from renewable resources, including--
(A) solar energy;
(B) wind energy;
(C) fuel cells; and
(D) biomass; and
(14) any other appropriate activity, as determined by
the Secretary, in consultation with--
(A) the Administrator of the Environmental
Protection Agency;
(B) the Secretary of Transportation; and
(C) the Secretary of Housing and Urban
Development.
SEC. 545. REQUIREMENTS FOR ELIGIBLE ENTITIES.
(a) Construction Requirement.--
(1) In general.--To be eligible to receive a grant
under the program, each eligible applicant shall submit
to the Secretary a written assurance that all laborers
and mechanics employed by any contractor or
subcontractor of the eligible entity during any
construction, alteration, or repair activity funded, in
whole or in part, by the grant shall be paid wages at
rates not less than the prevailing wages for similar
construction activities in the locality, as determined
by the Secretary of Labor, in accordance with sections
3141 through 3144, 3146, and 3147 of title 40, United
States Code.
(2) Secretary of labor.--With respect to the labor
standards referred to in paragraph (1), the Secretary
of Labor shall have the authority and functions
described in--
(A) Reorganization Plan Numbered 14 of 1950
(5 U.S.C. 903 note); and
(B) section 3145 of title 40, United States
Code.
(b) Eligible Units of Local Government and Indian Tribes.--
(1) Proposed strategy.--
(A) In general.--Not later than 1 year after
the date on which an eligible unit of local
government or Indian tribe receives a grant
under this subtitle, the eligible unit of local
government or Indian tribe shall submit to the
Secretary a proposed energy efficiency and
conservation strategy in accordance with this
paragraph.
(B) Inclusions.--The proposed strategy under
subparagraph (A) shall include--
(i) a description of the goals of the
eligible unit of local government or
Indian tribe, in accordance with the
purposes of this subtitle, for
increased energy efficiency and
conservation in the jurisdiction of the
eligible unit of local government or
Indian tribe; and
(ii) a plan for the use of the grant
to assist the eligible unit of local
government or Indian tribe in achieving
those goals, in accordance with section
544.
(C) Requirements for eligible units of local
government.--In developing the strategy under
subparagraph (A), an eligible unit of local
government shall--
(i) take into account any plans for
the use of funds by adjacent eligible
units of local governments that receive
grants under the program; and
(ii) coordinate and share information
with the State in which the eligible
unit of local government is located
regarding activities carried out using
the grant to maximize the energy
efficiency and conservation benefits
under this subtitle.
(2) Approval by secretary.--
(A) In general.--The Secretary shall approve
or disapprove a proposed strategy under
paragraph (1) by not later than 120 days after
the date of submission of the proposed
strategy.
(B) Disapproval.--If the Secretary
disapproves a proposed strategy under
subparagraph (A)--
(i) the Secretary shall provide to
the eligible unit of local government
or Indian tribe the reasons for the
disapproval; and
(ii) the eligible unit of local
government or Indian tribe may revise
and resubmit the proposed strategy as
many times as necessary until the
Secretary approves a proposed strategy.
(C) Requirement.--The Secretary shall not
provide to an eligible unit of local government
or Indian tribe any grant under the program
until a proposed strategy of the eligible unit
of local government or Indian tribe is approved
by the Secretary under this paragraph.
(3) Limitations on use of funds.--Of amounts provided
to an eligible unit of local government or Indian tribe
under the program, an eligible unit of local government
or Indian tribe may use--
(A) for administrative expenses, excluding
the cost of meeting the reporting requirements
of this subtitle, an amount equal to the
greater of--
(i) 10 percent; and
(ii) $75,000;
(B) for the establishment of revolving loan
funds, an amount equal to the greater of--
(i) 20 percent; and
(ii) $250,000; and
(C) for the provision of subgrants to
nongovernmental organizations for the purpose
of assisting in the implementation of the
energy efficiency and conservation strategy of
the eligible unit of local government or Indian
tribe, an amount equal to the greater of--
(i) 20 percent; and
(ii) $250,000.
(4) Annual report.--Not later than 2 years after the
date on which funds are initially provided to an
eligible unit of local government or Indian tribe under
the program, and annually thereafter, the eligible unit
of local government or Indian tribe shall submit to the
Secretary a report describing--
(A) the status of development and
implementation of the energy efficiency and
conservation strategy of the eligible unit of
local government or Indian tribe; and
(B) as practicable, an assessment of energy
efficiency gains within the jurisdiction of the
eligible unit of local government or Indian
tribe.
(c) States.--
(1) Distribution of funds.--
(A) In general.--A State that receives a
grant under the program shall use not less than
60 percent of the amount received to provide
subgrants to units of local government in the
State that are not eligible units of local
government.
(B) Deadline.--The State shall provide the
subgrants required under subparagraph (A) by
not later than 180 days after the date on which
the Secretary approves a proposed energy
efficiency and conservation strategy of the
State under paragraph (3).
(2) Revision of conservation plan; proposed
strategy.--Not later than 120 days after the date of
enactment of this Act, each State shall--
(A) modify the State energy conservation plan
of the State under section 362 of the Energy
Policy and Conservation Act (42 U.S.C. 6322) to
establish additional goals for increased energy
efficiency and conservation in the State; and
(B) submit to the Secretary a proposed energy
efficiency and conservation strategy that--
(i) establishes a process for
providing subgrants as required under
paragraph (1); and
(ii) includes a plan of the State for
the use of funds received under a the
program to assist the State in
achieving the goals established under
subparagraph (A), in accordance with
sections 542(b) and 544.
(3) Approval by secretary.--
(A) In general.--The Secretary shall approve
or disapprove a proposed strategy under
paragraph (2)(B) by not later than 120 days
after the date of submission of the proposed
strategy.
(B) Disapproval.--If the Secretary
disapproves a proposed strategy under
subparagraph (A)--
(i) the Secretary shall provide to
the State the reasons for the
disapproval; and
(ii) the State may revise and
resubmit the proposed strategy as many
times as necessary until the Secretary
approves a proposed strategy.
(C) Requirement.--The Secretary shall not
provide to a State any grant under the program
until a proposed strategy of the State is
approved the Secretary under this paragraph.
(4) Limitations on use of funds.--A State may use not
more than 10 percent of amounts provided under the
program for administrative expenses.
(5) Annual reports.--Each State that receives a grant
under the program shall submit to the Secretary an
annual report that describes--
(A) the status of development and
implementation of the energy efficiency and
conservation strategy of the State during the
preceding calendar year;
(B) the status of the subgrant program of the
State under paragraph (1);
(C) the energy efficiency gains achieved
through the energy efficiency and conservation
strategy of the State during the preceding
calendar year; and
(D) specific energy efficiency and
conservation goals of the State for subsequent
calendar years.
SEC. 546. COMPETITIVE GRANTS.
(a) In General.--Of the total amount made available for each
fiscal year to carry out this subtitle, the Secretary shall use
not less than 2 percent to provide grants under this section,
on a competitive basis, to--
(1) units of local government (including Indian
tribes) that are not eligible entities; and
(2) consortia of units of local government described
in paragraph (1).
(b) Applications.--To be eligible to receive a grant under
this section, a unit of local government or consortia shall
submit to the Secretary an application at such time, in such
manner, and containing such information as the Secretary may
require, including a plan of the unit of local government to
carry out an activity described in section 544.
(c) Priority.--In providing grants under this section, the
Secretary shall give priority to units of local government--
(1) located in States with populations of less than
2,000,000; or
(2) that plan to carry out projects that would result
in significant energy efficiency improvements or
reductions in fossil fuel use.
SEC. 547. REVIEW AND EVALUATION.
(a) In General.--The Secretary may review and evaluate the
performance of any eligible entity that receives a grant under
the program, including by conducting an audit, as the Secretary
determines to be appropriate.
(b) Withholding of Funds.--The Secretary may withhold from an
eligible entity any portion of a grant to be provided to the
eligible entity under the program if the Secretary determines
that the eligible entity has failed to achieve compliance
with--
(1) any applicable guideline or regulation of the
Secretary relating to the program, including the misuse
or misappropriation of funds provided under the
program; or
(2) the energy efficiency and conservation strategy
of the eligible entity.
SEC. 548. FUNDING.
(a) Authorization of Appropriations.--
(1) Grants.--There is authorized to be appropriated
to the Secretary for the provision of grants under the
program $2,000,000,000 for each of fiscal years 2008
through 2012; provided that 49 percent of the
appropriated funds shall be distributed using the
definition of eligible unit of local government-
alternative 1 in section 541(3)(A) and 49 percent of
the appropriated funds shall be distributed using the
definition of eligible unit of local government-
alternative 2 in section 541(3)(B).
(2) Administrative costs.--There are authorized to be
appropriated to the Secretary for administrative
expenses of the program--
(A) $20,000,000 for each of fiscal years 2008
and 2009;
(B) $25,000,000 for each of fiscal years 2010
and 2011; and
(C) $30,000,000 for fiscal year 2012.
(b) Maintenance of Funding.--The funding provided under this
section shall supplement (and not supplant) other Federal
funding provided under--
(1) a State energy conservation plan established
under part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.); or
(2) the Weatherization Assistance Program for Low-
Income Persons established under part A of title IV of
the Energy Conservation and Production Act (42 U.S.C.
6861 et seq.).
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A--Solar Energy
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ``Solar Energy Research and
Advancement Act of 2007''.
SEC. 602. THERMAL ENERGY STORAGE RESEARCH AND DEVELOPMENT PROGRAM.
(a) Establishment.--The Secretary shall establish a program
of research and development to provide lower cost and more
viable thermal energy storage technologies to enable the
shifting of electric power loads on demand and extend the
operating time of concentrating solar power electric generating
plants.
(b) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for carrying out this section
$5,000,000 for fiscal year 2008, $7,000,000 for fiscal year
2009, $9,000,000 for fiscal year 2010, $10,000,000 for fiscal
year 2011, and $12,000,000 for fiscal year 2012.
SEC. 603. CONCENTRATING SOLAR POWER COMMERCIAL APPLICATION STUDIES.
(a) Integration.--The Secretary shall conduct a study on
methods to integrate concentrating solar power and utility-
scale photovoltaic systems into regional electricity
transmission systems, and to identify new transmission or
transmission upgrades needed to bring electricity from high
concentrating solar power resource areas to growing electric
power load centers throughout the United States. The study
shall analyze and assess cost-effective approaches for
management and large-scale integration of concentrating solar
power and utility-scale photovoltaic systems into regional
electric transmission grids to improve electric reliability, to
efficiently manage load, and to reduce demand on the natural
gas transmission system for electric power. The Secretary shall
submit a report to Congress on the results of this study not
later than 12 months after the date of enactment of this Act.
(b) Water Consumption.--Not later than 6 months after the
date of the enactment of this Act, the Secretary of Energy
shall transmit to Congress a report on the results of a study
on methods to reduce the amount of water consumed by
concentrating solar power systems.
SEC. 604. SOLAR ENERGY CURRICULUM DEVELOPMENT AND CERTIFICATION GRANTS.
(a) Establishment.--The Secretary shall establish in the
Office of Solar Energy Technologies a competitive grant program
to create and strengthen solar industry workforce training and
internship programs in installation, operation, and maintenance
of solar energy products. The goal of this program is to ensure
a supply of well-trained individuals to support the expansion
of the solar energy industry.
(b) Authorized Activities.--Grant funds may be used to
support the following activities:
(1) Creation and development of a solar energy
curriculum appropriate for the local educational,
entrepreneurial, and environmental conditions,
including curriculum for community colleges.
(2) Support of certification programs for individual
solar energy system installers, instructors, and
training programs.
(3) Internship programs that provide hands-on
participation by students in commercial applications.
(4) Activities required to obtain certification of
training programs and facilities by an industry-
accepted quality-control certification program.
(5) Incorporation of solar-specific learning modules
into traditional occupational training and internship
programs for construction-related trades.
(6) The purchase of equipment necessary to carry out
activities under this section.
(7) Support of programs that provide guidance and
updates to solar energy curriculum instructors.
(c) Administration of Grants.--Grants may be awarded under
this section for up to 3 years. The Secretary shall award
grants to ensure sufficient geographic distribution of training
programs nationally. Grants shall only be awarded for programs
certified by an industry-accepted quality-control certification
institution, or for new and growing programs with a credible
path to certification. Due consideration shall be given to
women, underrepresented minorities, and persons with
disabilities.
(d) Report.--The Secretary shall make public, on the website
of the Department or upon request, information on the name and
institution for all grants awarded under this section,
including a brief description of the project as well as the
grant award amount.
(e) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for carrying out this section
$10,000,000 for each of the fiscal years 2008 through 2012.
SEC. 605. DAYLIGHTING SYSTEMS AND DIRECT SOLAR LIGHT PIPE TECHNOLOGY.
(a) Establishment.--The Secretary shall establish a program
of research and development to provide assistance in the
demonstration and commercial application of direct solar
renewable energy sources to provide alternatives to traditional
power generation for lighting and illumination, including light
pipe technology, and to promote greater energy conservation and
improved efficiency. All direct solar renewable energy devices
supported under this program shall have the capability to
provide measurable data on the amount of kilowatt-hours saved
over the traditionally powered light sources they have
replaced.
(b) Reporting.--The Secretary shall transmit to Congress an
annual report assessing the measurable data derived from each
project in the direct solar renewable energy sources program
and the energy savings resulting from its use.
(c) Definitions.--For purposes of this section--
(1) the term ``direct solar renewable energy'' means
energy from a device that converts sunlight into
useable light within a building, tunnel, or other
enclosed structure, replacing artificial light
generated by a light fixture and doing so without the
conversion of the sunlight into another form of energy;
and
(2) the term ``light pipe'' means a device designed
to transport visible solar radiation from its
collection point to the interior of a building while
excluding interior heat gain in the nonheating season.
(d) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for carrying out this section
$3,500,000 for each of the fiscal years 2008 through 2012.
SEC. 606. SOLAR AIR CONDITIONING RESEARCH AND DEVELOPMENT PROGRAM.
(a) Establishment.--The Secretary shall establish a research,
development, and demonstration program to promote less costly
and more reliable decentralized distributed solar-powered air
conditioning for individuals and businesses.
(b) Authorized Activities.--Grants made available under this
section may be used to support the following activities:
(1) Advancing solar thermal collectors, including
concentrating solar thermal and electric systems, flat
plate and evacuated tube collector performance.
(2) Achieving technical and economic integration of
solar-powered distributed air-conditioning systems with
existing hot water and storage systems for residential
applications.
(3) Designing and demonstrating mass manufacturing
capability to reduce costs of modular standardized
solar-powered distributed air conditioning systems and
components.
(4) Improving the efficiency of solar-powered
distributed air-conditioning to increase the
effectiveness of solar-powered absorption chillers,
solar-driven compressors and condensors, and cost-
effective precooling approaches.
(5) Researching and comparing performance of solar-
powered distributed air conditioning systems in
different regions of the country, including potential
integration with other onsite systems, such as solar,
biogas, geothermal heat pumps, and propane assist or
combined propane fuel cells, with a goal to develop
site-specific energy production and management systems
that ease fuel and peak utility loading.
(c) Cost Sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a project carried out
under this section.
(d) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for carrying out this section
$2,500,000 for each of the fiscal years 2008 through 2012.
SEC. 607. PHOTOVOLTAIC DEMONSTRATION PROGRAM.
(a) In General.--The Secretary shall establish a program of
grants to States to demonstrate advanced photovoltaic
technology.
(b) Requirements.--
(1) Ability to meet requirements.--To receive funding
under the program under this section, a State must
submit a proposal that demonstrates, to the
satisfaction of the Secretary, that the State will meet
the requirements of subsection (f).
(2) Compliance with requirements.--If a State has
received funding under this section for the preceding
year, the State must demonstrate, to the satisfaction
of the Secretary, that it complied with the
requirements of subsection (f) in carrying out the
program during that preceding year, and that it will do
so in the future, before it can receive further funding
under this section.
(c) Competition.--The Secretary shall award grants on a
competitive basis to the States with the proposals the
Secretary considers most likely to encourage the widespread
adoption of photovoltaic technologies. The Secretary shall take
into consideration the geographic distribution of awards.
(d) Proposals.--Not later than 6 months after the date of
enactment of this Act, and in each subsequent fiscal year for
the life of the program, the Secretary shall solicit proposals
from the States to participate in the program under this
section.
(e) Competitive Criteria.--In awarding funds in a competitive
allocation under subsection (c), the Secretary shall consider--
(1) the likelihood of a proposal to encourage the
demonstration of, or lower the costs of, advanced
photovoltaic technologies; and
(2) the extent to which a proposal is likely to--
(A) maximize the amount of photovoltaics
demonstrated;
(B) maximize the proportion of non-Federal
cost share; and
(C) limit State administrative costs.
(f) State Program.--A program operated by a State with
funding under this section shall provide competitive awards for
the demonstration of advanced photo-voltaic technologies. Each
State program shall--
(1) require a contribution of at least 60 percent per
award from non-Federal sources, which may include any
combination of State, local, and private funds, except
that at least 10 percent of the funding must be
supplied by the State;
(2) endeavor to fund recipients in the commercial,
industrial, institutional, governmental, and
residential sectors;
(3) limit State administrative costs to no more than
10 percent of the grant;
(4) report annually to the Secretary on--
(A) the amount of funds disbursed;
(B) the amount of photovoltaics purchased;
and
(C) the results of the monitoring under
paragraph (5);
(5) provide for measurement and verification of the
output of a representative sample of the photovoltaics
systems demonstrated throughout the average working
life of the systems, or at least 20 years; and
(6) require that applicant buildings must have
received an independent energy efficiency audit during
the 6-month period preceding the filing of the
application.
(g) Unexpended Funds.--If a State fails to expend any funds
received under this section within 3 years of receipt, such
remaining funds shall be returned to the Treasury.
(h) Reports.--The Secretary shall report to Congress 5 years
after funds are first distributed to the States under this
section--
(1) the amount of photovoltaics demonstrated;
(2) the number of projects undertaken;
(3) the administrative costs of the program;
(4) the results of the monitoring under subsection
(f)(5); and
(5) the total amount of funds distributed, including
a breakdown by State.
(i) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for the purposes of carrying
out this section--
(1) $15,000,000 for fiscal year 2008;
(2) $30,000,000 for fiscal year 2009;
(3) $45,000,000 for fiscal year 2010;
(4) $60,000,000 for fiscal year 2011; and
(5) $70,000,000 for fiscal year 2012.
Subtitle B--Geothermal Energy
SEC. 611. SHORT TITLE.
This subtitle may be cited as the ``Advanced Geothermal
Energy Research and Development Act of 2007''.
SEC. 612. DEFINITIONS.
For purposes of this subtitle:
(1) Engineered.--When referring to enhanced
geothermal systems, the term ``engineered'' means
subjected to intervention, including intervention to
address one or more of the following issues:
(A) Lack of effective permeability or
porosity or open fracture connectivity within
the reservoir.
(B) Insufficient contained geofluid in the
reservoir.
(C) A low average geothermal gradient, which
necessitates deeper drilling.
(2) Enhanced geothermal systems.--The term ``enhanced
geothermal systems'' means geothermal reservoir systems
that are engineered, as opposed to occurring naturally.
(3) Geofluid.--The term ``geofluid'' means any fluid
used to extract thermal energy from the Earth which is
transported to the surface for direct use or electric
power generation, except that such term shall not
include oil or natural gas.
(4) Geopressured resources.--The term ``geopressured
resources'' mean geothermal deposits found in
sedimentary rocks under higher than normal pressure and
saturated with gas or methane.
(5) Geothermal.--The term ``geothermal'' refers to
heat energy stored in the Earth's crust that can be
accessed for direct use or electric power generation.
(6) Hydrothermal.--The term ``hydrothermal'' refers
to naturally occurring subsurface reservoirs of hot
water or steam.
(7) Systems approach.--The term ``systems approach''
means an approach to solving problems or designing
systems that attempts to optimize the performance of
the overall system, rather than a particular component
of the system.
SEC. 613. HYDROTHERMAL RESEARCH AND DEVELOPMENT.
(a) In General.--The Secretary shall support programs of
research, development, demonstration, and commercial
application to expand the use of geothermal energy production
from hydrothermal systems, including the programs described in
subsection (b).
(b) Programs.--
(1) Advanced hydrothermal resource tools.--The
Secretary, in consultation with other appropriate
agencies, shall support a program to develop advanced
geophysical, geochemical, and geologic tools to assist
in locating hidden hydrothermal resources, and to
increase the reliability of site characterization
before, during, and after initial drilling. The program
shall develop new prospecting techniques to assist in
prioritization of targets for characterization. The
program shall include a field component.
(2) Industry coupled exploratory drilling.--The
Secretary shall support a program of cost-shared field
demonstration programs, to be pursued, simultaneously
and independently, in collaboration with industry
partners, for the demonstration of advanced
technologies and techniques of siting and exploratory
drilling for undiscovered resources in a variety of
geologic settings. The program shall include incentives
to encourage the use of advanced technologies and
techniques.
SEC. 614. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.
(a) Subsurface Components and Systems.--The Secretary shall
support a program of research, development, demonstration, and
commercial application of components and systems capable of
withstanding extreme geothermal environments and necessary to
cost-effectively develop, produce, and monitor geothermal
reservoirs and produce geothermal energy. These components and
systems shall include advanced casing systems (expandable
tubular casing, low-clearance casing designs, and others),
high-temperature cements, high-temperature submersible pumps,
and high-temperature packers, as well as technologies for
under-reaming, multilateral completions, high-temperature and
high-pressure logging, logging while drilling, deep fracture
stimulation, and reservoir system diagnostics.
(b) Reservoir Performance Modeling.--The Secretary shall
support a program of research, development, demonstration, and
commercial application of models of geothermal reservoir
performance, with an emphasis on accurately modeling
performance over time. Models shall be developed to assist both
in the development of geothermal reservoirs and to more
accurately account for stress-related effects in stimulated
hydrothermal and enhanced geothermal systems production
environments.
(c) Environmental Impacts.--The Secretary shall--
(1) support a program of research, development,
demonstration, and commercial application of
technologies and practices designed to mitigate or
preclude potential adverse environmental impacts of
geothermal energy development, production or use, and
seek to ensure that geothermal energy development is
consistent with the highest practicable standards of
environmental stewardship;
(2) in conjunction with the Assistant Administrator
for Research and Development at the Environmental
Protection Agency, support a research program to
identify potential environmental impacts of geothermal
energy development, production, and use, and ensure
that the program described in paragraph (1) addresses
such impacts, including effects on groundwater and
local hydrology; and
(3) support a program of research to compare the
potential environmental impacts identified as part of
the development, production, and use of geothermal
energy with the potential emission reductions of
greenhouse gases gained by geothermal energy
development, production, and use.
SEC. 615. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.
(a) In General.--The Secretary shall support a program of
research, development, demonstration, and commercial
application for enhanced geothermal systems, including the
programs described in subsection (b).
(b) Programs.--
(1) Enhanced geothermal systems technologies.--The
Secretary shall support a program of research,
development, demonstration, and commercial application
of the technologies and knowledge necessary for
enhanced geothermal systems to advance to a state of
commercial readiness, including advances in--
(A) reservoir stimulation;
(B) reservoir characterization, monitoring,
and modeling;
(C) stress mapping;
(D) tracer development;
(E) three-dimensional tomography; and
(F) understanding seismic effects of
reservoir engineering and stimulation.
(2) Enhanced geothermal systems reservoir
stimulation.--
(A) Program.--In collaboration with industry
partners, the Secretary shall support a program
of research, development, and demonstration of
enhanced geothermal systems reservoir
stimulation technologies and techniques. A
minimum of 4 sites shall be selected in
locations that show particular promise for
enhanced geothermal systems development. Each
site shall--
(i) represent a different class of
subsurface geologic environments; and
(ii) take advantage of an existing
site where subsurface characterization
has been conducted or existing drill
holes can be utilized, if possible.
(B) Consideration of existing site.--The
Desert Peak, Nevada, site, where a Department
of Energy and industry cooperative enhanced
geothermal systems project is already underway,
may be considered for inclusion among the sites
selected under subparagraph (A).
SEC. 616. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS AND
RECOVERY AND PRODUCTION OF GEOPRESSURED GAS
RESOURCES.
(a) In General.--The Secretary shall establish a program of
research, development, demonstration, and commercial
application to support development of geothermal energy
production from oil and gas fields and production and recovery
of energy, including electricity, from geopressured resources.
In addition, the Secretary shall conduct such supporting
activities including research, resource characterization, and
technology development as necessary.
(b) Geothermal Energy Production From Oil and Gas Fields.--
The Secretary shall implement a grant program in support of
geothermal energy production from oil and gas fields. The
program shall include grants for a total of not less than three
demonstration projects of the use of geothermal techniques such
as advanced organic rankine cycle systems at marginal,
unproductive, and productive oil and gas wells. The Secretary
shall, to the extent practicable and in the public interest,
make awards that--
(1) include not less than five oil or gas well sites
per project award;
(2) use a range of oil or gas well hot water source
temperatures from 150 degrees Fahrenheit to 300 degrees
Fahrenheit;
(3) cover a range of sizes up to one megawatt;
(4) are located at a range of sites;
(5) can be replicated at a wide range of sites;
(6) facilitate identification of optimum techniques
among competing alternatives;
(7) include business commercialization plans that
have the potential for production of equipment at high
volumes and operation and support at a large number of
sites; and
(8) satisfy other criteria that the Secretary
determines are necessary to carry out the program and
collect necessary data and information.
The Secretary shall give preference to assessments that address
multiple elements contained in paragraphs (1) through (8).
(c) Grant Awards.--Each grant award for demonstration of
geothermal technology such as advanced organic rankine cycle
systems at oil and gas wells made by the Secretary under
subsection (b) shall include--
(1) necessary and appropriate site engineering study;
(2) detailed economic assessment of site specific
conditions;
(3) appropriate feasibility studies to determine
whether the demonstration can be replicated;
(4) design or adaptation of existing technology for
site specific circumstances or conditions;
(5) installation of equipment, service, and support;
(6) operation for a minimum of one year and
monitoring for the duration of the demonstration; and
(7) validation of technical and economic assumptions
and documentation of lessons learned.
(d) Geopressured Gas Resource Recovery and Production.--(1)
The Secretary shall implement a program to support the
research, development, demonstration, and commercial
application of cost-effective techniques to produce energy from
geopressured resources.
(2) The Secretary shall solicit preliminary engineering
designs for geopressured resources production and recovery
facilities.
(3) Based upon a review of the preliminary designs, the
Secretary shall award grants, which may be cost-shared, to
support the detailed development and completion of engineering,
architectural and technical plans needed to support
construction of new designs.
(4) Based upon a review of the final design plans above, the
Secretary shall award cost-shared development and construction
grants for demonstration geopressured production facilities
that show potential for economic recovery of the heat, kinetic
energy and gas resources from geopressured resources.
(e) Competitive Grant Selection.--Not less than 90 days after
the date of the enactment of this Act, the Secretary shall
conduct a national solicitation for applications for grants
under the programs outlined in subsections (b) and (d). Grant
recipients shall be selected on a competitive basis based on
criteria in the respective subsection.
(f) Well Drilling.--No funds may be used under this section
for the purpose of drilling new wells.
SEC. 617. COST SHARING AND PROPOSAL EVALUATION.
(a) Federal Share.--The Federal share of costs of projects
funded under this subtitle shall be in accordance with section
988 of the Energy Policy Act of 2005.
(b) Organization and Administration of Programs.--Programs
under this subtitle shall incorporate the following elements:
(1) The Secretary shall coordinate with, and where
appropriate may provide funds in furtherance of the
purposes of this subtitle to, other Department of
Energy research and development programs focused on
drilling, subsurface characterization, and other
related technologies.
(2) In evaluating proposals, the Secretary shall give
priority to proposals that demonstrate clear evidence
of employing a systems approach.
(3) The Secretary shall coordinate and consult with
the appropriate Federal land management agencies in
selecting proposals for funding under this subtitle.
(4) Nothing in this subtitle shall be construed to
alter or affect any law relating to the management or
protection of Federal lands.
SEC. 618. CENTER FOR GEOTHERMAL TECHNOLOGY TRANSFER.
(a) In General.--The Secretary shall award to an institution
of higher education (or consortium thereof) a grant to
establish a Center for Geothermal Technology Transfer (referred
to in this section as the ``Center'').
(b) Duties.--The Center shall--
(1) serve as an information clearinghouse for the
geothermal industry by collecting and disseminating
information on best practices in all areas relating to
developing and utilizing geothermal resources;
(2) make data collected by the Center available to
the public; and
(3) seek opportunities to coordinate efforts and
share information with domestic and international
partners engaged in research and development of
geothermal systems and related technology.
(c) Selection Criteria.--In awarding the grant under
subsection (a) the Secretary shall select an institution of
higher education (or consortium thereof) best suited to provide
national leadership on geothermal related issues and perform
the duties enumerated under subsection (b).
(d) Duration of Grant.--A grant made under subsection (a)--
(1) shall be for an initial period of 5 years; and
(2) may be renewed for additional 5-year periods on
the basis of--
(A) satisfactory performance in meeting the
duties outlined in subsection (b); and
(B) any other requirements specified by the
Secretary.
SEC. 619. GEOPOWERING AMERICA.
The Secretary shall expand the Department of Energy's
GeoPowering the West program to extend its geothermal
technology transfer activities throughout the entire United
States. The program shall be renamed ``GeoPowering America''.
The program shall continue to be based in the Department of
Energy office in Golden, Colorado.
SEC. 620. EDUCATIONAL PILOT PROGRAM.
The Secretary shall seek to award grant funding, on a
competitive basis, to an institution of higher education for a
geothermal-powered energy generation facility on the
institution's campus. The purpose of the facility shall be to
provide electricity and space heating. The facility shall also
serve as an educational resource to students in relevant fields
of study, and the data generated by the facility shall be
available to students and the general public. The total funding
award shall not exceed $2,000,000.
SEC. 621. REPORTS.
(a) Reports on Advanced Uses of Geothermal Energy.--Not later
than 3 years and 5 years after the date of enactment of this
Act, the Secretary shall report to the Committee on Science and
Technology of the House of Representatives and the Committee on
Energy and Natural Resources of the Senate on advanced concepts
and technologies to maximize the geothermal resource potential
of the United States. The reports shall include--
(1) the use of carbon dioxide as an alternative
geofluid with potential carbon sequestration benefits;
(2) mineral recovery from geofluids;
(3) use of geothermal energy to produce hydrogen;
(4) use of geothermal energy to produce biofuels;
(5) use of geothermal heat for oil recovery from oil
shales and tar sands; and
(6) other advanced geothermal technologies, including
advanced drilling technologies and advanced power
conversion technologies.
(b) Progress Reports.--(1) Not later than 36 months after the
date of enactment of this Act, the Secretary shall submit to
the Committee on Science and Technology of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate an interim report describing the
progress made under this subtitle. At the end of 60 months, the
Secretary shall submit to Congress a report on the results of
projects undertaken under this subtitle and other such
information the Secretary considers appropriate.
(2) As necessary, the Secretary shall report to the Congress
on any legal, regulatory, or other barriers encountered that
hinder economic development of these resources, and provide
recommendations on legislative or other actions needed to
address such impediments.
SEC. 622. APPLICABILITY OF OTHER LAWS.
Nothing in this subtitle shall be construed as waiving,
modifying, or superseding the applicability of any requirement
under any environmental or other Federal or State law. To the
extent that activities authorized in this subtitle take place
in coastal and ocean areas, the Secretary shall consult with
the Secretary of Commerce, acting through the Under Secretary
of Commerce for Oceans and Atmosphere, regarding the potential
marine environmental impacts and measures to address such
impacts.
SEC. 623. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this subtitle $90,000,000 for each of the fiscal
years 2008 through 2012, of which $10,000,000 for each fiscal
year shall be for carrying out section 616. There are also
authorized to be appropriated to the Secretary for the
Intermountain West Geothermal Consortium $5,000,000 for each of
the fiscal years 2008 through 2012.
SEC. 624. INTERNATIONAL GEOTHERMAL ENERGY DEVELOPMENT.
(a) In General.--The Secretary of Energy, in coordination
with other appropriate Federal and multilateral agencies
(including the United States Agency for International
Development) shall support international collaborative efforts
to promote the research, development, and deployment of
geothermal technologies used to develop hydrothermal and
enhanced geothermal system resources, including as partners (as
appropriate) the African Rift Geothermal Development Facility,
Australia, China, France, the Republic of Iceland, India,
Japan, and the United Kingdom.
(b) United States Trade and Development Agency.--The Director
of the United States Trade and Development Agency may--
(1) encourage participation by United States firms in
actions taken to carry out subsection (a); and
(2) provide grants and other financial support for
feasibility and resource assessment studies conducted
in, or intended to benefit, less developed countries.
(c) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $5,000,000 for each
of fiscal years 2008 through 2012.
SEC. 625. HIGH COST REGION GEOTHERMAL ENERGY GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''
means--
(A) a utility;
(B) an electric cooperative;
(C) a State;
(D) a political subdivision of a State;
(E) an Indian tribe; or
(F) a Native corporation.
(2) High-cost region.--The term ``high-cost region''
means a region in which the average cost of electrical
power exceeds 150 percent of the national average
retail cost, as determined by the Secretary.
(b) Program.--The Secretary shall use amounts made available
to carry out this section to make grants to eligible entities
for activities described in subsection (c).
(c) Eligible Activities.--An eligible entity may use grant
funds under this section, with respect to a geothermal energy
project in a high-cost region, only--
(1) to conduct a feasibility study, including a study
of exploration, geochemical testing, geomagnetic
surveys, geologic information gathering, baseline
environmental studies, well drilling, resource
characterization, permitting, and economic analysis;
(2) for design and engineering costs, relating to the
project; and
(3) to demonstrate and promote commercial application
of technologies related to geothermal energy as part of
the project.
(d) Cost Sharing.--The cost-sharing requirements of section
988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall
apply to any project carried out under this section.
(e) Authorization of Appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
section.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
SEC. 631. SHORT TITLE.
This subtitle may be cited as the ``Marine and Hydrokinetic
Renewable Energy Research and Development Act''.
SEC. 632. DEFINITION.
For purposes of this subtitle, the term ``marine and
hydrokinetic renewable energy'' means electrical energy from--:
(1) waves, tides, and currents in oceans, estuaries,
and tidal areas;
(2) free flowing water in rivers, lakes, and streams;
(3) free flowing water in man-made channels; and
(4) differentials in ocean temperature (ocean thermal
energy conversion).
The term ``marine and hydrokinetic renewable energy'' does not
include energy from any source that uses a dam, diversionary
structure, or impoundment for electric power purposes.
SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH AND
DEVELOPMENT.
(a) In General.--The Secretary, in consultation with the
Secretary of the Interior and the Secretary of Commerce, acting
through the Under Secretary of Commerce for Oceans and
Atmosphere, shall establish a program of research, development,
demonstration, and commercial application to expand marine and
hydrokinetic renewable energy production, including programs
to--
(1) study and compare existing marine and
hydrokinetic renewable energy technologies;
(2) research, develop, and demonstrate marine and
hydrokinetic renewable energy systems and technologies;
(3) reduce the manufacturing and operation costs of
marine and hydrokinetic renewable energy technologies;
(4) investigate efficient and reliable integration
with the utility grid and intermittency issues;
(5) advance wave forecasting technologies;
(6) conduct experimental and numerical modeling for
optimization of marine energy conversion devices and
arrays;
(7) increase the reliability and survivability of
marine and hydrokinetic renewable energy technologies,
including development of corrosive-resistant materials;
(8) identify, in conjunction with the Secretary of
Commerce, acting through the Under Secretary of
Commerce for Oceans and Atmosphere, and other Federal
agencies as appropriate, the potential environmental
impacts, including potential impacts on fisheries and
other marine resources, of marine and hydrokinetic
renewable energy technologies, measures to prevent
adverse impacts, and technologies and other means
available for monitoring and determining environmental
impacts;
(9) identify, in conjunction with the Secretary of
the Department in which the United States Coast Guard
is operating, acting through the Commandant of the
United States Coast Guard, the potential navigational
impacts of marine and hydrokinetic renewable energy
technologies and measures to prevent adverse impacts on
navigation;
(10) develop power measurement standards for marine
and hydrokinetic renewable energy;
(11) develop identification standards for marine and
hydrokinetic renewable energy devices;
(12) address standards development, demonstration,
and technology transfer for advanced systems
engineering and system integration methods to identify
critical interfaces;
(13) identifying opportunities for cross
fertilization and development of economies of scale
between other renewable sources and marine and
hydrokinetic renewable energy sources; and
(14) providing public information and opportunity for
public comment concerning all technologies.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary, in conjunction with the
Secretary of Commerce, acting through the Undersecretary of
Commerce for Oceans and Atmosphere, and the Secretary of the
Interior, shall provide to the Congress a report that
addresses--
(1) the potential environmental impacts, including
impacts to fisheries and marine resources, of marine
and hydrokinetic renewable energy technologies;
(2) options to prevent adverse environmental impacts;
(3) the potential role of monitoring and adaptive
management in identifying and addressing any adverse
environmental impacts; and
(4) the necessary components of such an adaptive
management program.
SEC. 634. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION CENTERS.
(a) Centers.--The Secretary shall award grants to
institutions of higher education (or consortia thereof) for the
establishment of 1 or more National Marine Renewable Energy
Research, Development, and Demonstration Centers. In selecting
locations for Centers, the Secretary shall consider sites that
meet one of the following criteria:
(1) Hosts an existing marine renewable energy
research and development program in coordination with
an engineering program at an institution of higher
education.
(2) Has proven expertise to support environmental and
policy-related issues associated with harnessing of
energy in the marine environment.
(3) Has access to and utilizes the marine resources
in the Gulf of Mexico, the Atlantic Ocean, or the
Pacific Ocean.
The Secretary may give special consideration to historically
black colleges and universities and land grant universities
that also meet one of these criteria. In establishing criteria
for the selection of the Centers, the Secretary shall consult
with the Secretary of Commerce, acting through the Under
Secretary of Commerce for Oceans and Atmosphere, on the
criteria related to ocean waves, tides, and currents including
those for advancing wave forecasting technologies, ocean
temperature differences, and studying the compatibility of
marine renewable energy technologies and systems with the
environment, fisheries, and other marine resources.
(b) Purposes.--The Centers shall advance research,
development, demonstration, and commercial application of
marine renewable energy, and shall serve as an information
clearinghouse for the marine renewable energy industry,
collecting and disseminating information on best practices in
all areas related to developing and managing enhanced marine
renewable energy systems resources.
(c) Demonstration of Need.--When applying for a grant under
this section, an applicant shall include a description of why
Federal support is necessary for the Center, including evidence
that the research of the Center will not be conducted in the
absence of Federal support.
SEC. 635. APPLICABILITY OF OTHER LAWS.
Nothing in this subtitle shall be construed as waiving,
modifying, or superseding the applicability of any requirement
under any environmental or other Federal or State law.
SEC. 636. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this subtitle $50,000,000 for each of the fiscal
years 2008 through 2012, except that no funds shall be
appropriated under this section for activities that are
receiving funds under section 931(a)(2)(E)(i) of the Energy
Policy Act of 2005 (42 U.S.C. 16231(a)(2)(E)(i)).
Subtitle D--Energy Storage for Transportation and Electric Power
SEC. 641. ENERGY STORAGE COMPETITIVENESS.
(a) Short Title.--This section may be cited as the ``United
States Energy Storage Competitiveness Act of 2007''.
(b) Definitions.--In this section:
(1) Council.--The term ``Council'' means the Energy
Storage Advisory Council established under subsection
(e).
(2) Compressed air energy storage.--The term
``compressed air energy storage'' means, in the case of
an electricity grid application, the storage of energy
through the compression of air.
(3) Electric drive vehicle.--The term ``electric
drive vehicle'' means--
(A) a vehicle that uses an electric motor for
all or part of the motive power of the vehicle,
including battery electric, hybrid electric,
plug-in hybrid electric, fuel cell, and plug-in
fuel cell vehicles and rail transportation
vehicles; or
(B) mobile equipment that uses an electric
motor to replace an internal combustion engine
for all or part of the work of the equipment.
(4) Islanding.--The term ``islanding'' means a
distributed generator or energy storage device
continuing to power a location in the absence of
electric power from the primary source.
(5) Flywheel.--The term ``flywheel'' means, in the
case of an electricity grid application, a device used
to store rotational kinetic energy.
(6) Microgrid.--The term ``microgrid'' means an
integrated energy system consisting of interconnected
loads and distributed energy resources (including
generators and energy storage devices), which as an
integrated system can operate in parallel with the
utility grid or in an intentional islanding mode.
(7) Self-healing grid.--The term ``self-healing
grid'' means a grid that is capable of automatically
anticipating and responding to power system
disturbances (including the isolation of failed
sections and components), while optimizing the
performance and service of the grid to customers.
(8) Spinning reserve services.--The term ``spinning
reserve services'' means a quantity of electric
generating capacity in excess of the quantity needed to
meet peak electric demand.
(9) Ultracapacitor.--The term ``ultracapacitor''
means an energy storage device that has a power density
comparable to a conventional capacitor but is capable
of exceeding the energy density of a conventional
capacitor by several orders of magnitude.
(c) Program.--The Secretary shall carry out a research,
development, and demonstration program to support the ability
of the United States to remain globally competitive in energy
storage systems for electric drive vehicles, stationary
applications, and electricity transmission and distribution.
(d) Coordination.--In carrying out the activities of this
section, the Secretary shall coordinate relevant efforts with
appropriate Federal agencies, including the Department of
Transportation.
(e) Energy Storage Advisory Council.--
(1) Establishment.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall
establish an Energy Storage Advisory Council.
(2) Composition.--
(A) In general.--Subject to subparagraph (B),
the Council shall consist of not less than 15
individuals appointed by the Secretary, based
on recommendations of the National Academy of
Sciences.
(B) Energy storage industry.--The Council
shall consist primarily of representatives of
the energy storage industry of the United
States.
(C) Chairperson.--The Secretary shall select
a Chairperson for the Council from among the
members appointed under subparagraph (A).
(3) Meetings.--
(A) In general.--The Council shall meet not
less than once a year.
(B) Federal advisory committee act.--The
Federal Advisory Committee Act (5 U.S.C. App.)
shall apply to a meeting of the Council.
(4) Plans.--No later than 1 year after the date of
enactment of this Act and every 5 years thereafter, the
Council, in conjunction with the Secretary, shall
develop a 5-year plan for integrating basic and applied
research so that the United States retains a globally
competitive domestic energy storage industry for
electric drive vehicles, stationary applications, and
electricity transmission and distribution.
(5) Review.--The Council shall--
(A) assess, every 2 years, the performance of
the Department in meeting the goals of the
plans developed under paragraph (4); and
(B) make specific recommendations to the
Secretary on programs or activities that should
be established or terminated to meet those
goals.
(f) Basic Research Program.--
(1) Basic research.--The Secretary shall conduct a
basic research program on energy storage systems to
support electric drive vehicles, stationary
applications, and electricity transmission and
distribution, including--
(A) materials design;
(B) materials synthesis and characterization;
(C) electrode-active materials, including
electrolytes and bioelectrolytes;
(D) surface and interface dynamics;
(E) modeling and simulation; and
(F) thermal behavior and life degradation
mechanisms.
(2) Nanoscience centers.--The Secretary, in
cooperation with the Council, shall coordinate the
activities of the nanoscience centers of the Department
to help the energy storage research centers of the
Department maintain a globally competitive posture in
energy storage systems for electric drive vehicles,
stationary applications, and electricity transmission
and distribution.
(3) Funding.--For activities carried out under this
subsection, in addition to funding activities at
National Laboratories, the Secretary shall award funds
to, and coordinate activities with, a range of
stakeholders including the public, private, and
academic sectors.
(g) Applied Research Program.--
(1) In general.--The Secretary shall conduct an
applied research program on energy storage systems to
support electric drive vehicles, stationary
applications, and electricity transmission and
distribution technologies, including--
(A) ultracapacitors;
(B) flywheels;
(C) batteries and battery systems (including
flow batteries);
(D) compressed air energy systems;
(E) power conditioning electronics;
(F) manufacturing technologies for energy
storage systems;
(G) thermal management systems; and
(H) hydrogen as an energy storage medium.
(2) Funding.--For activities carried out under this
subsection, in addition to funding activities at
National Laboratories, the Secretary shall provide
funds to, and coordinate activities with, a range of
stakeholders, including the public, private, and
academic sectors.
(h) Energy Storage Research Centers.--
(1) In general.--The Secretary shall establish,
through competitive bids, not more than 4 energy
storage research centers to translate basic research
into applied technologies to advance the capability of
the United States to maintain a globally competitive
posture in energy storage systems for electric drive
vehicles, stationary applications, and electricity
transmission and distribution.
(2) Program management.--The centers shall be managed
by the Under Secretary for Science of the Department.
(3) Participation agreements.--As a condition of
participating in a center, a participant shall enter
into a participation agreement with the center that
requires that activities conducted by the participant
for the center promote the goal of enabling the United
States to compete successfully in global energy storage
markets.
(4) Plans.--A center shall conduct activities that
promote the achievement of the goals of the plans of
the Council under subsection (e)(4).
(5) National laboratories.--A national laboratory (as
defined in section 2 of the Energy Policy Act of 2005
(42 U.S.C. 15801)) may participate in a center
established under this subsection, including a
cooperative research and development agreement (as
defined in section 12(d) of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C.
3710a(d))).
(6) Disclosure.--Section 623 of the Energy Policy Act
of 1992 (42 U.S.C. 13293) may apply to any project
carried out through a grant, contract, or cooperative
agreement under this subsection.
(7) Intellectual property.--In accordance with
section 202(a)(ii) of title 35, United States Code,
section 152 of the Atomic Energy Act of 1954 (42 U.S.C.
2182), and section 9 of the Federal Nonnuclear Energy
Research and Development Act of 1974 (42 U.S.C. 5908),
the Secretary may require, for any new invention
developed under this subsection, that--
(A) if an industrial participant is active in
a energy storage research center established
under this subsection relating to the
advancement of energy storage technologies
carried out, in whole or in part, with Federal
funding, the industrial participant be granted
the first option to negotiate with the
invention owner, at least in the field of
energy storage technologies, nonexclusive
licenses, and royalties on terms that are
reasonable, as determined by the Secretary;
(B) if 1 or more industry participants are
active in a center, during a 2-year period
beginning on the date on which an invention is
made--
(i) the patent holder shall not
negotiate any license or royalty
agreement with any entity that is not
an industrial participant under this
subsection; and
(ii) the patent holder shall
negotiate nonexclusive licenses and
royalties in good faith with any
interested industrial participant under
this subsection; and
(C) the new invention be developed under such
other terms as the Secretary determines to be
necessary to promote the accelerated
commercialization of inventions made under this
subsection to advance the capability of the
United States to successfully compete in global
energy storage markets.
(i) Energy Storage Systems Demonstrations.--
(1) In general.--The Secretary shall carry out a
program of new demonstrations of advanced energy
storage systems.
(2) Scope.--The demonstrations shall--
(A) be regionally diversified; and
(B) expand on the existing technology
demonstration program of the Department.
(3) Stakeholders.--In carrying out the
demonstrations, the Secretary shall, to the maximum
extent practicable, include the participation of a
range of stakeholders, including--
(A) rural electric cooperatives;
(B) investor owned utilities;
(C) municipally owned electric utilities;
(D) energy storage systems manufacturers;
(E) electric drive vehicle manufacturers;
(F) the renewable energy production industry;
(G) State or local energy offices;
(H) the fuel cell industry; and
(I) institutions of higher education.
(4) Objectives.--Each of the demonstrations shall
include 1 or more of the following:
(A) Energy storage to improve the feasibility
of microgrids or islanding, or transmission and
distribution capability, to improve reliability
in rural areas.
(B) Integration of an energy storage system
with a self-healing grid.
(C) Use of energy storage to improve security
to emergency response infrastructure and ensure
availability of emergency backup power for
consumers.
(D) Integration with a renewable energy
production source, at the source or away from
the source.
(E) Use of energy storage to provide
ancillary services, such as spinning reserve
services, for grid management.
(F) Advancement of power conversion systems
to make the systems smarter, more efficient,
able to communicate with other inverters, and
able to control voltage.
(G) Use of energy storage to optimize
transmission and distribution operation and
power quality, which could address overloaded
lines and maintenance of transformers and
substations.
(H) Use of advanced energy storage for peak
load management of homes, businesses, and the
grid.
(I) Use of energy storage devices to store
energy during nonpeak generation periods to
make better use of existing grid assets.
(j) Vehicle Energy Storage Demonstration.--
(1) In general.--The Secretary shall carry out a
program of electric drive vehicle energy storage
technology demonstrations.
(2) Consortia.--The technology demonstrations shall
be conducted through consortia, which may include--
(A) energy storage systems manufacturers and
suppliers of the manufacturers;
(B) electric drive vehicle manufacturers;
(C) rural electric cooperatives;
(D) investor owned utilities;
(E) municipal and rural electric utilities;
(F) State and local governments;
(G) metropolitan transportation authorities;
and
(H) institutions of higher education.
(3) Objectives.--The program shall demonstrate 1 or
more of the following:
(A) Novel, high capacity, high efficiency
energy storage, charging, and control systems,
along with the collection of data on
performance characteristics, such as battery
life, energy storage capacity, and power
delivery capacity.
(B) Advanced onboard energy management
systems and highly efficient battery cooling
systems.
(C) Integration of those systems on a
prototype vehicular platform, including with
drivetrain systems for passenger, commercial,
and nonroad electric drive vehicles.
(D) New technologies and processes that
reduce manufacturing costs.
(E) Integration of advanced vehicle
technologies with electricity distribution
system and smart metering technology.
(F) Control systems that minimize emissions
profiles in cases in which clean diesel engines
are part of a plug-in hybrid drive system.
(k) Secondary Applications and Disposal of Electric Drive
Vehicle Batteries.--The Secretary shall carry out a program of
research, development, and demonstration of--
(1) secondary applications of energy storage devices
following service in electric drive vehicles; and
(2) technologies and processes for final recycling
and disposal of the devices.
(l) Cost Sharing.--The Secretary shall carry out the programs
established under this section in accordance with section 988
of the Energy Policy Act of 2005 (42 U.S.C. 16352).
(m) Merit Review of Proposals.--The Secretary shall carry out
the programs established under subsections (i), (j), and (k) in
accordance with section 989 of the Energy Policy Act of 2005
(42 U.S.C. 16353).
(n) Coordination and Nonduplication.--To the maximum extent
practicable, the Secretary shall coordinate activities under
this section with other programs and laboratories of the
Department and other Federal research programs.
(o) Review by National Academy of Sciences.--On the business
day that is 5 years after the date of enactment of this Act,
the Secretary shall offer to enter into an arrangement with the
National Academy of Sciences to assess the performance of the
Department in carrying out this section.
(p) Authorization of Appropriations.--There are authorized to
be appropriated to carry out--
(1) the basic research program under subsection (f)
$50,000,000 for each of fiscal years 2009 through 2018;
(2) the applied research program under subsection (g)
$80,000,000 for each of fiscal years 2009 through 2018;
and;
(3) the energy storage research center program under
subsection (h) $100,000,000 for each of fiscal years
2009 through 2018;
(4) the energy storage systems demonstration program
under subsection (i) $30,000,000 for each of fiscal
years 2009 through 2018;
(5) the vehicle energy storage demonstration program
under subsection (j) $30,000,000 for each of fiscal
years 2009 through 2018; and
(6) the secondary applications and disposal of
electric drive vehicle batteries program under
subsection (k) $5,000,000 for each of fiscal years 2009
through 2018.
Subtitle E--Miscellaneous Provisions
SEC. 651. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Energy shall establish
a program to determine ways in which the weight of motor
vehicles could be reduced to improve fuel efficiency without
compromising passenger safety by conducting research,
development, and demonstration relating to--
(1) the development of new materials (including cast
metal composite materials formed by autocombustion
synthesis) and material processes that yield a higher
strength-to-weight ratio or other properties that
reduce vehicle weight; and
(2) reducing the cost of--
(A) lightweight materials (including high-
strength steel alloys, aluminum, magnesium,
metal composites, and carbon fiber reinforced
polymer composites) with the properties
required for construction of lighter-weight
vehicles; and
(B) materials processing, automated
manufacturing, joining, and recycling
lightweight materials for high-volume
applications.
(b) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $80,000,000 for the
period of fiscal years 2008 through 2012.
SEC. 652. COMMERCIAL INSULATION DEMONSTRATION PROGRAM.
(a) Definitions.--In this section:
(1) Advanced insulation.--The term ``advanced
insulation'' means insulation that has an R value of
not less than R35 per inch.
(2) Covered refrigeration unit.--The term ``covered
refrigeration unit'' means any--
(A) commercial refrigerated truck;
(B) commercial refrigerated trailer; or
(C) commercial refrigerator, freezer, or
refrigerator-freezer described in section
342(c) of the Energy Policy and Conservation
Act (42 U.S.C. 6313(c)).
(b) Report.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to Congress a
report that includes an evaluation of--
(1) the state of technological advancement of
advanced insulation; and
(2) the projected amount of cost savings that would
be generated by implementing advanced insulation into
covered refrigeration units.
(c) Demonstration Program.--
(1) Establishment.--If the Secretary determines in
the report described in subsection (b) that the
implementation of advanced insulation into covered
refrigeration units would generate an economically
justifiable amount of cost savings, the Secretary, in
cooperation with manufacturers of covered refrigeration
units, shall establish a demonstration program under
which the Secretary shall demonstrate the cost-
effectiveness of advanced insulation.
(2) Disclosure.--The Secretary may, for a period of
up to five years after an award is granted under the
demonstration program, exempt from mandatory disclosure
under section 552 of title 5, United States Code
(popularly known as the Freedom of Information Act)
information that the Secretary determines would be a
privileged or confidential trade secret or commercial
or financial information under subsection (b)(4) of
such section if the information had been obtained from
a non-Government party.
(3) Cost-sharing.--Section 988 of the Energy Policy
Act of 2005 (42 U.S.C. 16352) shall apply to any
project carried out under this subsection.
(d) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $8,000,000 for the
period of fiscal years 2009 through 2014.
SEC. 653. TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE.
Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005 (42
U.S.C. 15962(b)(1)(B)(ii)) is amended by striking subclause (I)
and inserting the following:
``(I)(aa) to remove at least
99 percent of sulfur dioxide;
or
``(bb) to emit not more than
0.04 pound SO2 per
million Btu, based on a 30-day
average;''.
SEC. 654. H-PRIZE.
Section 1008 of the Energy Policy Act of 2005 (42 U.S.C.
16396) is amended by adding at the end the following new
subsection:
``(f) H-Prize.--
``(1) Prize authority.--
``(A) In general.--As part of the program
under this section, the Secretary shall carry
out a program to competitively award cash
prizes in conformity with this subsection to
advance the research, development,
demonstration, and commercial application of
hydrogen energy technologies.
``(B) Advertising and solicitation of
competitors.--
``(i) Advertising.--The Secretary
shall widely advertise prize
competitions under this subsection to
encourage broad participation,
including by individuals, universities
(including historically Black colleges
and universities and other minority
serving institutions), and large and
small businesses (including businesses
owned or controlled by socially and
economically disadvantaged persons).
``(ii) Announcement through federal
register notice.--The Secretary shall
announce each prize competition under
this subsection by publishing a notice
in the Federal Register. This notice
shall include essential elements of the
competition such as the subject of the
competition, the duration of the
competition, the eligibility
requirements for participation in the
competition, the process for
participants to register for the
competition, the amount of the prize,
and the criteria for awarding the
prize.
``(C) Administering the competitions.--The
Secretary shall enter into an agreement with a
private, nonprofit entity to administer the
prize competitions under this subsection,
subject to the provisions of this subsection
(in this subsection referred to as the
`administering entity'). The duties of the
administering entity under the agreement shall
include--
``(i) advertising prize competitions
under this subsection and their
results;
``(ii) raising funds from private
entities and individuals to pay for
administrative costs and to contribute
to cash prizes, including funds
provided in exchange for the right to
name a prize awarded under this
subsection;
``(iii) developing, in consultation
with and subject to the final approval
of the Secretary, the criteria for
selecting winners in prize competitions
under this subsection, based on goals
provided by the Secretary;
``(iv) determining, in consultation
with the Secretary, the appropriate
amount and funding sources for each
prize to be awarded under this
subsection, subject to the final
approval of the Secretary with respect
to Federal funding;
``(v) providing advice and
consultation to the Secretary on the
selection of judges in accordance with
paragraph (2)(D), using criteria
developed in consultation with and
subject to the final approval of the
Secretary; and
``(vi) protecting against the
administering entity's unauthorized use
or disclosure of a registered
participant's trade secrets and
confidential business information. Any
information properly identified as
trade secrets or confidential business
information that is submitted by a
participant as part of a competitive
program under this subsection may be
withheld from public disclosure.
``(D) Funding sources.--Prizes under this
subsection shall consist of Federal
appropriated funds and any funds provided by
the administering entity (including funds
raised pursuant to subparagraph (C)(ii)) for
such cash prize programs. The Secretary may
accept funds from other Federal agencies for
such cash prizes and, notwithstanding section
3302(b) of title 31, United States Code, may
use such funds for the cash prize program under
this subsection. Other than publication of the
names of prize sponsors, the Secretary may not
give any special consideration to any private
sector entity or individual in return for a
donation to the Secretary or administering
entity.
``(E) Announcement of prizes.--The Secretary
may not issue a notice required by subparagraph
(B)(ii) until all the funds needed to pay out
the announced amount of the prize have been
appropriated or committed in writing by the
administering entity. The Secretary may
increase the amount of a prize after an initial
announcement is made under subparagraph (B)(ii)
if--
``(i) notice of the increase is
provided in the same manner as the
initial notice of the prize; and
``(ii) the funds needed to pay out
the announced amount of the increase
have been appropriated or committed in
writing by the administering entity.
``(F) Sunset.--The authority to announce
prize competitions under this subsection shall
terminate on September 30, 2018.
``(2) Prize categories.--
``(A) Categories.--The Secretary shall
establish prizes under this subsection for--
``(i) advancements in technologies,
components, or systems related to--
``(I) hydrogen production;
``(II) hydrogen storage;
``(III) hydrogen
distribution; and
``(IV) hydrogen utilization;
``(ii) prototypes of hydrogen-powered
vehicles or other hydrogen-based
products that best meet or exceed
objective performance criteria, such as
completion of a race over a certain
distance or terrain or generation of
energy at certain levels of efficiency;
and
``(iii) transformational changes in
technologies for the distribution or
production of hydrogen that meet or
exceed far-reaching objective criteria,
which shall include minimal carbon
emissions and which may include cost
criteria designed to facilitate the
eventual market success of a winning
technology.
``(B) Awards.--
``(i) Advancements.--To the extent
permitted under paragraph (1)(E), the
prizes authorized under subparagraph
(A)(i) shall be awarded biennially to
the most significant advance made in
each of the four subcategories
described in subclauses (I) through
(IV) of subparagraph (A)(i) since the
submission deadline of the previous
prize competition in the same category
under subparagraph (A)(i) or the date
of enactment of this subsection,
whichever is later, unless no such
advance is significant enough to merit
an award. No one such prize may exceed
$1,000,000. If less than $4,000,000 is
available for a prize competition under
subparagraph (A)(i), the Secretary may
omit one or more subcategories, reduce
the amount of the prizes, or not hold a
prize competition.
``(ii) Prototypes.--To the extent
permitted under paragraph (1)(E),
prizes authorized under subparagraph
(A)(ii) shall be awarded biennially in
alternate years from the prizes
authorized under subparagraph (A)(i).
The Secretary is authorized to award up
to one prize in this category in each
2-year period. No such prize may exceed
$4,000,000. If no registered
participants meet the objective
performance criteria established
pursuant to subparagraph (C) for a
competition under this clause, the
Secretary shall not award a prize.
``(iii) Transformational
technologies.--To the extent permitted
under paragraph (1)(E), the Secretary
shall announce one prize competition
authorized under subparagraph (A)(iii)
as soon after the date of enactment of
this subsection as is practicable. A
prize offered under this clause shall
be not less than $10,000,000, paid to
the winner in a lump sum, and an
additional amount paid to the winner as
a match for each dollar of private
funding raised by the winner for the
hydrogen technology beginning on the
date the winner was named. The match
shall be provided for 3 years after the
date the prize winner is named or until
the full amount of the prize has been
paid out, whichever occurs first. A
prize winner may elect to have the
match amount paid to another entity
that is continuing the development of
the winning technology. The Secretary
shall announce the rules for receiving
the match in the notice required by
paragraph (1)(B)(ii). The Secretary
shall award a prize under this clause
only when a registered participant has
met the objective criteria established
for the prize pursuant to subparagraph
(C) and announced pursuant to paragraph
(1)(B)(ii). Not more than $10,000,000
in Federal funds may be used for the
prize award under this clause. The
administering entity shall seek to
raise $40,000,000 toward the matching
award under this clause.
``(C) Criteria.--In establishing the criteria
required by this subsection, the Secretary--
``(i) shall consult with the
Department's Hydrogen Technical and
Fuel Cell Advisory Committee;
``(ii) shall consult with other
Federal agencies, including the
National Science Foundation; and
``(iii) may consult with other
experts such as private organizations,
including professional societies,
industry associations, and the National
Academy of Sciences and the National
Academy of Engineering.
``(D) Judges.--For each prize competition
under this subsection, the Secretary in
consultation with the administering entity
shall assemble a panel of qualified judges to
select the winner or winners on the basis of
the criteria established under subparagraph
(C). Judges for each prize competition shall
include individuals from outside the
Department, including from the private sector.
A judge, spouse, minor children, and members of
the judge's household may not--
``(i) have personal or financial
interests in, or be an employee,
officer, director, or agent of, any
entity that is a registered participant
in the prize competition for which he
or she will serve as a judge; or
``(ii) have a familial or financial
relationship with an individual who is
a registered participant in the prize
competition for which he or she will
serve as a judge.
``(3) Eligibility.--To be eligible to win a prize
under this subsection, an individual or entity--
``(A) shall have complied with all the
requirements in accordance with the Federal
Register notice required under paragraph
(1)(B)(ii);
``(B) in the case of a private entity, shall
be incorporated in and maintain a primary place
of business in the United States, and in the
case of an individual, whether participating
singly or in a group, shall be a citizen of, or
an alien lawfully admitted for permanent
residence in, the United States; and
``(C) shall not be a Federal entity, a
Federal employee acting within the scope of his
employment, or an employee of a national
laboratory acting within the scope of his
employment.
``(4) Intellectual property.--The Federal Government
shall not, by virtue of offering or awarding a prize
under this subsection, be entitled to any intellectual
property rights derived as a consequence of, or direct
relation to, the participation by a registered
participant in a competition authorized by this
subsection. This paragraph shall not be construed to
prevent the Federal Government from negotiating a
license for the use of intellectual property developed
for a prize competition under this subsection.
``(5) Liability.--
``(A) Waiver of liability.--The Secretary may
require registered participants to waive claims
against the Federal Government and the
administering entity (except claims for willful
misconduct) for any injury, death, damage, or
loss of property, revenue, or profits arising
from the registered participants' participation
in a competition under this subsection. The
Secretary shall give notice of any waiver
required under this subparagraph in the notice
required by paragraph (1)(B)(ii). The Secretary
may not require a registered participant to
waive claims against the administering entity
arising out of the unauthorized use or
disclosure by the administering entity of the
registered participant's trade secrets or
confidential business information.
``(B) Liability insurance.--
``(i) Requirements.--Registered
participants in a prize competition
under this subsection shall be required
to obtain liability insurance or
demonstrate financial responsibility,
in amounts determined by the Secretary,
for claims by--
``(I) a third party for
death, bodily injury, or
property damage or loss
resulting from an activity
carried out in connection with
participation in a competition
under this subsection; and
``(II) the Federal Government
for damage or loss to
Government property resulting
from such an activity.
``(ii) Federal government insured.--
The Federal Government shall be named
as an additional insured under a
registered participant's insurance
policy required under clause (i)(I),
and registered participants shall be
required to agree to indemnify the
Federal Government against third party
claims for damages arising from or
related to competition activities under
this subsection.
``(6) Report to congress.--Not later than 60 days
after the awarding of the first prize under this
subsection, and annually thereafter, the Secretary
shall transmit to the Congress a report that--
``(A) identifies each award recipient;
``(B) describes the technologies developed by
each award recipient; and
``(C) specifies actions being taken toward
commercial application of all technologies with
respect to which a prize has been awarded under
this subsection.
``(7) Authorization of appropriations.--
``(A) In general.--
``(i) Awards.--There are authorized
to be appropriated to the Secretary for
the period encompassing fiscal years
2008 through 2017 for carrying out this
subsection--
``(I) $20,000,000 for awards
described in paragraph
(2)(A)(i);
``(II) $20,000,000 for awards
described in paragraph
(2)(A)(ii); and
``(III) $10,000,000 for the
award described in paragraph
(2)(A)(iii).
``(ii) Administration.--In addition
to the amounts authorized in clause
(i), there are authorized to be
appropriated to the Secretary for each
of fiscal years 2008 and 2009
$2,000,000 for the administrative costs
of carrying out this subsection.
``(B) Carryover of funds.--Funds appropriated
for prize awards under this subsection shall
remain available until expended, and may be
transferred, reprogrammed, or expended for
other purposes only after the expiration of 10
fiscal years after the fiscal year for which
the funds were originally appropriated. No
provision in this subsection permits obligation
or payment of funds in violation of section
1341 of title 31 of the United States Code
(commonly referred to as the Anti-Deficiency
Act).
``(8) Nonsubstitution.--The programs created under
this subsection shall not be considered a substitute
for Federal research and development programs.''.
SEC. 655. BRIGHT TOMORROW LIGHTING PRIZES.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, as part of the program carried out under
section 1008 of the Energy Policy Act of 2005 (42 U.S.C.
16396), the Secretary shall establish and award Bright Tomorrow
Lighting Prizes for solid state lighting in accordance with
this section.
(b) Prize Specifications.--
(1) 60-watt incandescent replacement lamp prize.--The
Secretary shall award a 60-Watt Incandescent
Replacement Lamp Prize to an entrant that produces a
solid-state light package simultaneously capable of--
(A) producing a luminous flux greater than
900 lumens;
(B) consuming less than or equal to 10 watts;
(C) having an efficiency greater than 90
lumens per watt;
(D) having a color rendering index greater
than 90;
(E) having a correlated color temperature of
not less than 2,750, and not more than 3,000,
degrees Kelvin;
(F) having 70 percent of the lumen value
under subparagraph (A) exceeding 25,000 hours
under typical conditions expected in
residential use;
(G) having a light distribution pattern
similar to a soft 60-watt incandescent A19
bulb;
(H) having a size and shape that fits within
the maximum dimensions of an A19 bulb in
accordance with American National Standards
Institute standard C78.20-2003, figure C78.20-
211;
(I) using a single contact medium screw
socket; and
(J) mass production for a competitive sales
commercial market satisfied by producing
commercially accepted quality control lots of
such units equal to or exceeding the criteria
described in subparagraphs (A) through (I).
(2) PAR type 38 halogen replacement lamp prize.--The
Secretary shall award a Parabolic Aluminized Reflector
Type 38 Halogen Replacement Lamp Prize (referred to in
this section as the ``PAR Type 38 Halogen Replacement
Lamp Prize'') to an entrant that produces a solid-
state-light package simultaneously capable of--
(A) producing a luminous flux greater than or
equal to 1,350 lumens;
(B) consuming less than or equal to 11 watts;
(C) having an efficiency greater than 123
lumens per watt;
(D) having a color rendering index greater
than or equal to 90;
(E) having a correlated color coordinate
temperature of not less than 2,750, and not
more than 3,000, degrees Kelvin;
(F) having 70 percent of the lumen value
under subparagraph (A) exceeding 25,000 hours
under typical conditions expected in
residential use;
(G) having a light distribution pattern
similar to a PAR 38 halogen lamp;
(H) having a size and shape that fits within
the maximum dimensions of a PAR 38 halogen lamp
in accordance with American National Standards
Institute standard C78-21-2003, figure C78.21-
238;
(I) using a single contact medium screw
socket; and
(J) mass production for a competitive sales
commercial market satisfied by producing
commercially accepted quality control lots of
such units equal to or exceeding the criteria
described in subparagraphs (A) through (I).
(3) Twenty-first century lamp prize.--The Secretary
shall award a Twenty-First Century Lamp Prize to an
entrant that produces a solid-state-light-light capable
of--
(A) producing a light output greater than
1,200 lumens;
(B) having an efficiency greater than 150
lumens per watt;
(C) having a color rendering index greater
than 90;
(D) having a color coordinate temperature
between 2,800 and 3,000 degrees Kelvin; and
(E) having a lifetime exceeding 25,000 hours.
(c) Private Funds.--
(1) In general.--Subject to paragraph (2), and
notwithstanding section 3302 of title 31, United States
Code, the Secretary may accept, retain, and use funds
contributed by any person, government entity, or
organization for purposes of carrying out this
subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(2) Prize competition.--A private source of funding
may not participate in the competition for prizes
awarded under this section.
(d) Technical Review.--The Secretary shall establish a
technical review committee composed of non-Federal officers to
review entrant data submitted under this section to determine
whether the data meets the prize specifications described in
subsection (b).
(e) Third Party Administration.--The Secretary may
competitively select a third party to administer awards under
this section.
(f) Eligibility for Prizes.--To be eligible to be awarded a
prize under this section--
(1) in the case of a private entity, the entity shall
be incorporated in and maintain a primary place of
business in the United States; and
(2) in the case of an individual (whether
participating as a single individual or in a group),
the individual shall be a citizen or lawful permanent
resident of the United States.
(g) Award Amounts.--Subject to the availability of funds to
carry out this section, the amount of--
(1) the 60-Watt Incandescent Replacement Lamp Prize
described in subsection (b)(1) shall be $10,000,000;
(2) the PAR Type 38 Halogen Replacement Lamp Prize
described in subsection (b)(2) shall be $5,000,000; and
(3) the Twenty-First Century Lamp Prize described in
subsection (b)(3) shall be $5,000,000.
(h) Federal Procurement of Solid-State-Lights.--
(1) 60-watt incandescent replacement.--Subject to
paragraph (3), as soon as practicable after the
successful award of the 60-Watt Incandescent
Replacement Lamp Prize under subsection (b)(1), the
Secretary (in consultation with the Administrator of
General Services) shall develop governmentwide Federal
purchase guidelines with a goal of replacing the use of
60-watt incandescent lamps in Federal Government
buildings with a solid-state-light package described in
subsection (b)(1) by not later than the date that is 5
years after the date the award is made.
(2) PAR 38 halogen replacement lamp replacement.--
Subject to paragraph (3), as soon as practicable after
the successful award of the PAR Type 38 Halogen
Replacement Lamp Prize under subsection (b)(2), the
Secretary (in consultation with the Administrator of
General Services) shall develop governmentwide Federal
purchase guidelines with the goal of replacing the use
of PAR 38 halogen lamps in Federal Government buildings
with a solid-state-light package described in
subsection (b)(2) by not later than the date that is 5
years after the date the award is made.
(3) Waivers.--
(A) In general.--The Secretary or the
Administrator of General Services may waive the
application of paragraph (1) or (2) if the
Secretary or Administrator determines that the
return on investment from the purchase of a
solid-state-light package described in
paragraph (1) or (2) of subsection (b),
respectively, is cost prohibitive.
(B) Report of waiver.--If the Secretary or
Administrator waives the application of
paragraph (1) or (2), the Secretary or
Administrator, respectively, shall submit to
Congress an annual report that describes the
waiver and provides a detailed justification
for the waiver.
(i) Report.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter, the
Administrator of General Services shall submit to the Energy
Information Agency a report describing the quantity, type, and
cost of each lighting product purchased by the Federal
Government.
(j) Bright Tomorrow Lighting Award Fund.--
(1) Establishment.--There is established in the
United States Treasury a Bright Tomorrow Lighting
permanent fund without fiscal year limitation to award
prizes under paragraphs (1), (2), and (3) of subsection
(b).
(2) Sources of funding.--The fund established under
paragraph (1) shall accept--
(A) fiscal year appropriations; and
(B) private contributions authorized under
subsection (c).
(k) Authorization of Appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
section.
SEC. 656. RENEWABLE ENERGY INNOVATION MANUFACTURING PARTNERSHIP.
(a) Establishment.--The Secretary shall carry out a program,
to be known as the Renewable Energy Innovation Manufacturing
Partnership Program (referred to in this section as the
``Program''), to make assistance awards to eligible entities
for use in carrying out research, development, and
demonstration relating to the manufacturing of renewable energy
technologies.
(b) Solicitation.--To carry out the Program, the Secretary
shall annually conduct a competitive solicitation for
assistance awards for an eligible project described in
subsection (e).
(c) Program Purposes.--The purposes of the Program are--
(1) to develop, or aid in the development of,
advanced manufacturing processes, materials, and
infrastructure;
(2) to increase the domestic production of renewable
energy technology and components; and
(3) to better coordinate Federal, State, and private
resources to meet regional and national renewable
energy goals through advanced manufacturing
partnerships.
(d) Eligible Entities.--An entity shall be eligible to
receive an assistance award under the Program to carry out an
eligible project described in subsection (e) if the entity is
composed of--
(1) 1 or more public or private nonprofit
institutions or national laboratories engaged in
research, development, demonstration, or technology
transfer, that would participate substantially in the
project; and
(2) 1 or more private entities engaged in the
manufacturing or development of renewable energy system
components (including solar energy, wind energy,
biomass, geothermal energy, energy storage, or fuel
cells).
(e) Eligible Projects.--An eligible entity may use an
assistance award provided under this section to carry out a
project relating to--
(1) the conduct of studies of market opportunities
for component manufacturing of renewable energy
systems;
(2) the conduct of multiyear applied research,
development, demonstration, and deployment projects for
advanced manufacturing processes, materials, and
infrastructure for renewable energy systems; and
(3) other similar ventures, as approved by the
Secretary, that promote advanced manufacturing of
renewable technologies.
(f) Criteria and Guidelines.--The Secretary shall establish
criteria and guidelines for the submission, evaluation, and
funding of proposed projects under the Program.
(g) Cost Sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a project carried out
under this section.
(h) Disclosure.--The Secretary may, for a period of up to
five years after an award is granted under this section, exempt
from mandatory disclosure under section 552 of title 5, United
States Code (popularly known as the Freedom of Information Act)
information that the Secretary determines would be a privileged
or confidential trade secret or commercial or financial
information under subsection (b)(4) of such section if the
information had been obtained from a non-Government party.
(i) Sense of the Congress.--It is the sense of the Congress
that the Secretary should ensure that small businesses engaged
in renewable manufacturing be given priority consideration for
the assistance awards provided under this section.
(j) Authorization of Appropriations.--There is authorized to
be appropriated out of funds already authorized to carry out
this section $25,000,000 for each of fiscal years 2008 through
2013, to remain available until expended.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION
Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration
SEC. 701. SHORT TITLE.
This subtitle may be cited as the ``Department of Energy
Carbon Capture and Sequestration Research, Development, and
Demonstration Act of 2007''.
SEC. 702. CARBON CAPTURE AND SEQUESTRATION RESEARCH, DEVELOPMENT, AND
DEMONSTRATION PROGRAM.
(a) Amendment.--Section 963 of the Energy Policy Act of 2005
(42 U.S.C. 16293) is amended--
(1) in the section heading, by striking ``RESEARCH
AND DEVELOPMENT'' and inserting ``AND SEQUESTRATION
RESEARCH, DEVELOPMENT, AND DEMONSTRATION'';
(2) in subsection (a)--
(A) by striking ``research and development''
and inserting ``and sequestration research,
development, and demonstration''; and
(B) by striking ``capture technologies on
combustion-based systems'' and inserting
``capture and sequestration technologies
related to industrial sources of carbon
dioxide'';
(3) in subsection (b)--
(A) in paragraph (3), by striking ``and'' at
the end;
(B) in paragraph (4), by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(5) to expedite and carry out large-scale testing
of carbon sequestration systems in a range of geologic
formations that will provide information on the cost
and feasibility of deployment of sequestration
technologies.''; and
(4) by striking subsection (c) and inserting the
following:
``(c) Programmatic Activities.--
``(1) Fundamental science and engineering research
and development and demonstration supporting carbon
capture and sequestration technologies and carbon use
activities.--
``(A) In general.--The Secretary shall carry
out fundamental science and engineering
research (including laboratory-scale
experiments, numeric modeling, and simulations)
to develop and document the performance of new
approaches to capture and sequester, or use
carbon dioxide to lead to an overall reduction
of carbon dioxide emissions.
``(B) Program integration.--The Secretary
shall ensure that fundamental research carried
out under this paragraph is appropriately
applied to energy technology development
activities, the field testing of carbon
sequestration, and carbon use activities,
including--
``(i) development of new or advanced
technologies for the capture and
sequestration of carbon dioxide;
``(ii) development of new or advanced
technologies that reduce the cost and
increase the efficacy of advanced
compression of carbon dioxide required
for the sequestration of carbon
dioxide;
``(iii) modeling and simulation of
geologic sequestration field
demonstrations;
``(iv) quantitative assessment of
risks relating to specific field sites
for testing of sequestration
technologies;
``(v) research and development of new
and advanced technologies for carbon
use, including recycling and reuse of
carbon dioxide; and
``(vi) research and development of
new and advanced technologies for the
separation of oxygen from air.
``(2) Field validation testing activities.--
``(A) In general.--The Secretary shall
promote, to the maximum extent practicable,
regional carbon sequestration partnerships to
conduct geologic sequestration tests involving
carbon dioxide injection and monitoring,
mitigation, and verification operations in a
variety of candidate geologic settings,
including--
``(i) operating oil and gas fields;
``(ii) depleted oil and gas fields;
``(iii) unmineable coal seams;
``(iv) deep saline formations;
``(v) deep geologic systems that may
be used as engineered reservoirs to
extract economical quantities of heat
from geothermal resources of low
permeability or porosity; and
``(vi) deep geologic systems
containing basalt formations.
``(B) Objectives.--The objectives of tests
conducted under this paragraph shall be--
``(i) to develop and validate
geophysical tools, analysis, and
modeling to monitor, predict, and
verify carbon dioxide containment;
``(ii) to validate modeling of
geologic formations;
``(iii) to refine sequestration
capacity estimated for particular
geologic formations;
``(iv) to determine the fate of
carbon dioxide concurrent with and
following injection into geologic
formations;
``(v) to develop and implement best
practices for operations relating to,
and monitoring of, carbon dioxide
injection and sequestration in geologic
formations;
``(vi) to assess and ensure the
safety of operations related to
geologic sequestration of carbon
dioxide;
``(vii) to allow the Secretary to
promulgate policies, procedures,
requirements, and guidance to ensure
that the objectives of this
subparagraph are met in large-scale
testing and deployment activities for
carbon capture and sequestration that
are funded by the Department of Energy;
and
``(viii) to provide information to
States, the Environmental Protection
Agency, and other appropriate entities
to support development of a regulatory
framework for commercial-scale
sequestration operations that ensure
the protection of human health and the
environment.
``(3) Large-scale carbon dioxide sequestration
testing.--
``(A) In general.--The Secretary shall
conduct not less than 7 initial large-scale
sequestration tests, not including the
FutureGen project, for geologic containment of
carbon dioxide to collect and validate
information on the cost and feasibility of
commercial deployment of technologies for
geologic containment of carbon dioxide. These 7
tests may include any Regional Partnership
projects awarded as of the date of enactment of
the Department of Energy Carbon Capture and
Sequestration Research, Development, and
Demonstration Act of 2007.
``(B) Diversity of formations to be
studied.--In selecting formations for study
under this paragraph, the Secretary shall
consider a variety of geologic formations
across the United States, and require
characterization and modeling of candidate
formations, as determined by the Secretary.
``(C) Source of carbon dioxide for large-
scale sequestration tests.--In the process of
any acquisition of carbon dioxide for
sequestration tests under subparagraph (A), the
Secretary shall give preference to sources of
carbon dioxide from industrial sources. To the
extent feasible, the Secretary shall prefer
tests that would facilitate the creation of an
integrated system of capture, transportation
and sequestration of carbon dioxide. The
preference provided for under this subparagraph
shall not delay the implementation of the
large-scale sequestration tests under this
paragraph.
``(D) Definition.--For purposes of this
paragraph, the term `large-scale' means the
injection of more than 1,000,000 tons of carbon
dioxide from industrial sources annually or a
scale that demonstrates the ability to inject
and sequester several million metric tons of
industrial source carbon dioxide for a large
number of years.
``(4) Preference in project selection from
meritorious proposals.--In making competitive awards
under this subsection, subject to the requirements of
section 989, the Secretary shall--
``(A) give preference to proposals from
partnerships among industrial, academic, and
government entities; and
``(B) require recipients to provide
assurances that all laborers and mechanics
employed by contractors and subcontractors in
the construction, repair, or alteration of new
or existing facilities performed in order to
carry out a demonstration or commercial
application activity authorized under this
subsection shall be paid wages at rates not
less than those prevailing on similar
construction in the locality, as determined by
the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United
States Code, and the Secretary of Labor shall,
with respect to the labor standards in this
paragraph, have the authority and functions set
forth in Reorganization Plan Numbered 14 of
1950 (15 Fed. Reg. 3176; 5 U.S.C. Appendix) and
section 3145 of title 40, United States Code.
``(5) Cost sharing.--Activities under this subsection
shall be considered research and development activities
that are subject to the cost sharing requirements of
section 988(b).
``(6) Program review and report.--During fiscal year
2011, the Secretary shall--
``(A) conduct a review of programmatic
activities carried out under this subsection;
and
``(B) make recommendations with respect to
continuation of the activities.
``(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
``(1) $240,000,000 for fiscal year 2008;
``(2) $240,000,000 for fiscal year 2009;
``(3) $240,000,000 for fiscal year 2010;
``(4) $240,000,000 for fiscal year 2011; and
``(5) $240,000,000 for fiscal year 2012.''.
(b) Table of Contents Amendment.--The item relating to
section 963 in the table of contents for the Energy Policy Act
of 2005 is amended to read as follows:
``Sec. 963. Carbon capture and sequestration research, development, and
demonstration program.''.
SEC. 703. CARBON CAPTURE.
(a) Program Establishment.--
(1) In general.--The Secretary shall carry out a
program to demonstrate technologies for the large-scale
capture of carbon dioxide from industrial sources. In
making awards under this program, the Secretary shall
select, as appropriate, a diversity of capture
technologies to address the need to capture carbon
dioxide from a range of industrial sources.
(2) Scope of award.--Awards under this section shall
be only for the portion of the project that--
(A) carries out the large-scale capture
(including purification and compression) of
carbon dioxide from industrial sources;
(B) provides for the transportation and
injection of carbon dioxide; and
(C) incorporates a comprehensive measurement,
monitoring, and validation program.
(3) Preferences for award.--To ensure reduced carbon
dioxide emissions, the Secretary shall take necessary
actions to provide for the integration of the program
under this paragraph with the large-scale carbon
dioxide sequestration tests described in section
963(c)(3) of the Energy Policy Act of 2005 (42 U.S.C.
16293(c)(3)), as added by section 702 of this subtitle.
These actions should not delay implementation of these
tests. The Secretary shall give priority consideration
to projects with the following characteristics:
(A) Capacity.--Projects that will capture a
high percentage of the carbon dioxide in the
treated stream and large volumes of carbon
dioxide as determined by the Secretary.
(B) Sequestration.--Projects that capture
carbon dioxide from industrial sources that are
near suitable geological reservoirs and could
continue sequestration including--
(i) a field testing validation
activity under section 963 of the
Energy Policy Act of 2005 (42 U.S.C.
16293), as amended by this Act; or
(ii) other geologic sequestration
projects approved by the Secretary.
(4) Requirement.--For projects that generate carbon
dioxide that is to be sequestered, the carbon dioxide
stream shall be of a sufficient purity level to allow
for safe transport and sequestration.
(5) Cost-sharing.--The cost-sharing requirements of
section 988 of the Energy Policy Act of 2005 (42 U.S.C.
16352) for research and development projects shall
apply to this section.
(b) Authorization of Appropriations.--There is authorized to
be appropriated to the Secretary to carry out this section
$200,000,000 per year for fiscal years 2009 through 2013.
SEC. 704. REVIEW OF LARGE-SCALE PROGRAMS.
The Secretary shall enter into an arrangement with the
National Academy of Sciences for an independent review and
oversight, beginning in 2011, of the programs under section
963(c)(3) of the Energy Policy Act of 2005 (42 U.S.C.
16293(c)(3)), as added by section 702 of this subtitle, and
under section 703 of this subtitle, to ensure that the benefits
of such programs are maximized. Not later than January 1, 2012,
the Secretary shall transmit to the Congress a report on the
results of such review and oversight.
SEC. 705. GEOLOGIC SEQUESTRATION TRAINING AND RESEARCH.
(a) Study.--
(1) In general.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to
undertake a study that--
(A) defines an interdisciplinary program in
geology, engineering, hydrology, environmental
science, and related disciplines that will
support the Nation's capability to capture and
sequester carbon dioxide from anthropogenic
sources;
(B) addresses undergraduate and graduate
education, especially to help develop graduate
level programs of research and instruction that
lead to advanced degrees with emphasis on
geologic sequestration science;
(C) develops guidelines for proposals from
colleges and universities with substantial
capabilities in the required disciplines that
seek to implement geologic sequestration
science programs that advance the Nation's
capacity to address carbon management through
geologic sequestration science; and
(D) outlines a budget and recommendations for
how much funding will be necessary to establish
and carry out the grant program under
subsection (b).
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit to
the Congress a copy of the results of the study
provided by the National Academy of Sciences under
paragraph (1).
(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary for
carrying out this subsection $1,000,000 for fiscal year
2008.
(b) Grant Program.--
(1) Establishment.--The Secretary shall establish a
competitive grant program through which colleges and
universities may apply for and receive 4-year grants
for--
(A) salary and startup costs for newly
designated faculty positions in an integrated
geologic carbon sequestration science program;
and
(B) internships for graduate students in
geologic sequestration science.
(2) Renewal.--Grants under this subsection shall be
renewable for up to 2 additional 3-year terms, based on
performance criteria, established by the National
Academy of Sciences study conducted under subsection
(a), that include the number of graduates of such
programs.
(3) Interface with regional geologic carbon
sequestration partnerships.--To the greatest extent
possible, geologic carbon sequestration science
programs supported under this subsection shall
interface with the research of the Regional Carbon
Sequestration Partnerships operated by the Department
to provide internships and practical training in carbon
capture and geologic sequestration.
(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary for
carrying out this subsection such sums as may be
necessary.
SEC. 706. RELATION TO SAFE DRINKING WATER ACT.
The injection and geologic sequestration of carbon dioxide
pursuant to this subtitle and the amendments made by this
subtitle shall be subject to the requirements of the Safe
Drinking Water Act (42 U.S.C. 300f et seq.), including the
provisions of part C of such Act (42 U.S.C. 300h et seq.;
relating to protection of underground sources of drinking
water). Nothing in this subtitle and the amendments made by
this subtitle imposes or authorizes the promulgation of any
requirement that is inconsistent or in conflict with the
requirements of the Safe Drinking Water Act (42 U.S.C. 300f et
seq.) or regulations thereunder.
SEC. 707. SAFETY RESEARCH.
(a) Program.--The Administrator of the Environmental
Protection Agency shall conduct a research program to address
public health, safety, and environmental impacts that may be
associated with capture, injection, and sequestration of
greenhouse gases in geologic reservoirs.
(b) Authorization of Appropriations.--There are authorized to
be appropriated for carrying out this section $5,000,000 for
each fiscal year.
SEC. 708. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.
(a) Establishment.--The Secretary, in consultation with other
appropriate agencies, shall establish a university based
research and development program to study carbon capture and
sequestration using the various types of coal.
(b) Rural and Agricultural Institutions.--The Secretary shall
give special consideration to rural or agricultural based
institutions in areas that have regional sources of coal and
that offer interdisciplinary programs in the area of
environmental science to study carbon capture and
sequestration.
(c) Authorization of Appropriations.--There are to be
authorized to be appropriated $10,000,000 to carry out this
section.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework
SEC. 711. CARBON DIOXIDE SEQUESTRATION CAPACITY ASSESSMENT.
(a) Definitions.--In this section
(1) Assessment.--The term ``assessment'' means the
national assessment of onshore capacity for carbon
dioxide completed under subsection (f).
(2) Capacity.--The term ``capacity'' means the
portion of a sequestration formation that can retain
carbon dioxide in accordance with the requirements
(including physical, geological, and economic
requirements) established under the methodology
developed under subsection (b).
(3) Engineered hazard.--The term ``engineered
hazard'' includes the location and completion history
of any well that could affect potential sequestration.
(4) Risk.--The term ``risk'' includes any risk posed
by geomechanical, geochemical, hydrogeological,
structural, and engineered hazards.
(5) Secretary.--The term ``Secretary'' means the
Secretary of the Interior, acting through the Director
of the United States Geological Survey.
(6) Sequestration formation.--The term
``sequestration formation'' means a deep saline
formation, unmineable coal seam, or oil or gas
reservoir that is capable of accommodating a volume of
industrial carbon dioxide.
(b) Methodology.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop a
methodology for conducting an assessment under subsection (f),
taking into consideration--
(1) the geographical extent of all potential
sequestration formations in all States;
(2) the capacity of the potential sequestration
formations;
(3) the injectivity of the potential sequestration
formations;
(4) an estimate of potential volumes of oil and gas
recoverable by injection and sequestration of
industrial carbon dioxide in potential sequestration
formations;
(5) the risk associated with the potential
sequestration formations; and
(6) the work done to develop the Carbon Sequestration
Atlas of the United States and Canada that was
completed by the Department.
(c) Coordination.--
(1) Federal coordination.--
(A) Consultation.--The Secretary shall
consult with the Secretary of Energy and the
Administrator of the Environmental Protection
Agency on issues of data sharing, format,
development of the methodology, and content of
the assessment required under this section to
ensure the maximum usefulness and success of
the assessment.
(B) Cooperation.--The Secretary of Energy and
the Administrator shall cooperate with the
Secretary to ensure, to the maximum extent
practicable, the usefulness and success of the
assessment.
(2) State coordination.--The Secretary shall consult
with State geological surveys and other relevant
entities to ensure, to the maximum extent practicable,
the usefulness and success of the assessment.
(d) External Review and Publication.--On completion of the
methodology under subsection (b), the Secretary shall--
(1) publish the methodology and solicit comments from
the public and the heads of affected Federal and State
agencies;
(2) establish a panel of individuals with expertise
in the matters described in paragraphs (1) through (5)
of subsection (b) composed, as appropriate, of
representatives of Federal agencies, institutions of
higher education, nongovernmental organizations, State
organizations, industry, and international geoscience
organizations to review the methodology and comments
received under paragraph (1); and
(3) on completion of the review under paragraph (2),
publish in the Federal Register the revised final
methodology.
(e) Periodic Updates.--The methodology developed under this
section shall be updated periodically (including at least once
every 5 years) to incorporate new data as the data becomes
available.
(f) National Assessment.--
(1) In general.--Not later than 2 years after the
date of publication of the methodology under subsection
(d)(1), the Secretary, in consultation with the
Secretary of Energy and State geological surveys, shall
complete a national assessment of capacity for carbon
dioxide in accordance with the methodology.
(2) Geological verification.--As part of the
assessment under this subsection, the Secretary shall
carry out a drilling program to supplement the
geological data relevant to determining sequestration
capacity of carbon dioxide in geological sequestration
formations, including--
(A) well log data;
(B) core data; and
(C) fluid sample data.
(3) Partnership with other drilling programs.--As
part of the drilling program under paragraph (2), the
Secretary shall enter, as appropriate, into
partnerships with other entities to collect and
integrate data from other drilling programs relevant to
the sequestration of carbon dioxide in geological
formations.
(4) Incorporation into natcarb.--
(A) In general.--On completion of the
assessment, the Secretary of Energy and the
Secretary of the Interior shall incorporate the
results of the assessment using--
(i) the NatCarb database, to the
maximum extent practicable; or
(ii) a new database developed by the
Secretary of Energy, as the Secretary
of Energy determines to be necessary.
(B) Ranking.--The database shall include the
data necessary to rank potential sequestration
sites for capacity and risk, across the United
States, within each State, by formation, and
within each basin.
(5) Report.--Not later than 180 days after the date
on which the assessment is completed, the Secretary
shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Natural
Resources of the House of Representatives a report
describing the findings under the assessment.
(6) Periodic updates.--The national assessment
developed under this section shall be updated
periodically (including at least once every 5 years) to
support public and private sector decisionmaking.
(g) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $30,000,000 for the
period of fiscal years 2008 through 2012.
SEC. 712. ASSESSMENT OF CARBON SEQUESTRATION AND METHANE AND NITROUS
OXIDE EMISSIONS FROM ECOSYSTEMS.
(a) Definitions.--In this section:
(1) Adaptation strategy.--The term ``adaptation
strategy'' means a land use and management strategy
that can be used--
(A) to increase the sequestration
capabilities of covered greenhouse gases of any
ecosystem; or
(B) to reduce the emissions of covered
greenhouse gases from any ecosystem.
(2) Assessment.--The term ``assessment'' means the
national assessment authorized under subsection (b).
(3) Covered greenhouse gas.--The term ``covered
greenhouse gas'' means carbon dioxide, nitrous oxide,
and methane gas.
(4) Ecosystem.--The term ``ecosystem'' means any
terrestrial, freshwater aquatic, or coastal ecosystem,
including an estuary.
(5) Native plant species.--The term ``native plant
species'' means any noninvasive, naturally occurring
plant species within an ecosystem.
(6) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
(b) Authorization of Assessment.--Not later than 2 years
after the date on which the final methodology is published
under subsection (f)(3)(D), the Secretary shall complete a
national assessment of--
(1) the quantity of carbon stored in and released
from ecosystems, including from man-caused and natural
fires; and
(2) the annual flux of covered greenhouse gases in
and out of ecosystems.
(c) Components.--In conducting the assessment under
subsection (b), the Secretary shall--
(1) determine the processes that control the flux of
covered greenhouse gases in and out of each ecosystem;
(2) estimate the potential for increasing carbon
sequestration in natural and managed ecosystems through
management activities or restoration activities in each
ecosystem;
(3) develop near-term and long-term adaptation
strategies or mitigation strategies that can be
employed--
(A) to enhance the sequestration of carbon in
each ecosystem;
(B) to reduce emissions of covered greenhouse
gases from ecosystems; and
(C) to adapt to climate change; and
(4) estimate the annual carbon sequestration capacity
of ecosystems under a range of policies in support of
management activities to optimize sequestration.
(d) Use of Native Plant Species.--In developing restoration
activities under subsection (c)(2) and management strategies
and adaptation strategies under subsection (c)(3), the
Secretary shall emphasize the use of native plant species
(including mixtures of many native plant species) for
sequestering covered greenhouse gas in each ecosystem.
(e) Consultation.--
(1) In general.--In conducting the assessment under
subsection (b) and developing the methodology under
subsection (f), the Secretary shall consult with--
(A) the Secretary of Energy;
(B) the Secretary of Agriculture;
(C) the Administrator of the Environmental
Protection Agency;
(D) the Secretary of Commerce, acting through
the Under Secretary for Oceans and Atmosphere;
and
(E) the heads of other relevant agencies.
(2) Ocean and coastal ecosystems.--In carrying out
this section with respect to ocean and coastal
ecosystems (including estuaries), the Secretary shall
work jointly with the Secretary of Commerce, acting
through the Under Secretary for Oceans and Atmosphere.
(f) Methodology.--
(1) In general.--Not later than 1 year after the date
of enactment of this Act, the Secretary shall develop a
methodology for conducting the assessment.
(2) Requirements.--The methodology developed under
paragraph (1)--
(A) shall--
(i) determine the method for
measuring, monitoring, and quantifying
covered greenhouse gas emissions and
reductions;
(ii) estimate the total capacity of
each ecosystem to sequester carbon; and
(iii) estimate the ability of each
ecosystem to reduce emissions of
covered greenhouse gases through
management practices; and
(B) may employ economic and other systems
models, analyses, and estimates, to be
developed in consultation with each of the
individuals described in subsection (e).
(3) External review and publication.--On completion
of a proposed methodology, the Secretary shall--
(A) publish the proposed methodology;
(B) at least 60 days before the date on which
the final methodology is published, solicit
comments from--
(i) the public; and
(ii) heads of affected Federal and
State agencies;
(C) establish a panel to review the proposed
methodology published under subparagraph (A)
and any comments received under subparagraph
(B), to be composed of members--
(i) with expertise in the matters
described in subsections (c) and (d);
and
(ii) that are, as appropriate,
representatives of Federal agencies,
institutions of higher education,
nongovernmental organizations, State
organizations, industry, and
international organizations; and
(D) on completion of the review under
subparagraph (C), publish in the Federal
register the revised final methodology.
(g) Estimate; Review.--The Secretary shall--
(1) based on the assessment, prescribe the data,
information, and analysis needed to establish a
scientifically sound estimate of the carbon
sequestration capacity of relevant ecosystems; and
(2) not later than 180 days after the date on which
the assessment is completed, submit to the heads of
applicable Federal agencies and the appropriate
committees of Congress a report that describes the
results of the assessment.
(h) Data and Report Availability.--On completion of the
assessment, the Secretary shall incorporate the results of the
assessment into a web-accessible database for public use.
(i) Authorization.--There is authorized to be appropriated to
carry out this section $20,000,000 for the period of fiscal
years 2008 through 2012.
SEC. 713. CARBON DIOXIDE SEQUESTRATION INVENTORY.
Section 354 of the Energy Policy Act of 2005 (42 U.S.C.
15910) is amended--
(1) by redesignating subsection (d) as subsection
(e); and
(2) by inserting after subsection (c) the following:
``(d) Records and Inventory.--The Secretary of the Interior,
acting through the Bureau of Land Management, shall maintain
records on, and an inventory of, the quantity of carbon dioxide
stored within Federal mineral leaseholds.''.
SEC. 714. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON PUBLIC LAND.
(a) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior shall
submit to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report on a recommended framework for
managing geological carbon sequestration activities on public
land.
(b) Contents.--The report required by subsection (a) shall
include the following:
(1) Recommended criteria for identifying candidate
geological sequestration sites in each of the following
types of geological settings:
(A) Operating oil and gas fields.
(B) Depleted oil and gas fields.
(C) Unmineable coal seams.
(D) Deep saline formations.
(E) Deep geological systems that may be used
as engineered reservoirs to extract economical
quantities of heat from geothermal resources of
low permeability or porosity.
(F) Deep geological systems containing basalt
formations.
(G) Coalbeds being used for methane recovery.
(2) A proposed regulatory framework for the leasing
of public land or an interest in public land for the
long-term geological sequestration of carbon dioxide,
which includes an assessment of options to ensure that
the United States receives fair market value for the
use of public land or an interest in public land for
geological sequestration.
(3) A proposed procedure for ensuring that any
geological carbon sequestration activities on public
land--
(A) provide for public review and comment
from all interested persons; and
(B) protect the quality of natural and
cultural resources of the public land
overlaying a geological sequestration site.
(4) A description of the status of Federal leasehold
or Federal mineral estate liability issues related to
the geological subsurface trespass of or caused by
carbon dioxide stored in public land, including any
relevant experience from enhanced oil recovery using
carbon dioxide on public land.
(5) Recommendations for additional legislation that
may be required to ensure that public land management
and leasing laws are adequate to accommodate the long-
term geological sequestration of carbon dioxide.
(6) An identification of the legal and regulatory
issues specific to carbon dioxide sequestration on land
in cases in which title to mineral resources is held by
the United States but title to the surface estate is
not held by the United States.
(7)(A) An identification of the issues specific to
the issuance of pipeline rights-of-way on public land
under the Mineral Leasing Act (30 U.S.C. 181 et seq.)
or the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701 et seq.) for natural or anthropogenic
carbon dioxide.
(B) Recommendations for additional legislation that
may be required to clarify the appropriate framework
for issuing rights-of-way for carbon dioxide pipelines
on public land.
(c) Consultation With Other Agencies.--In preparing the
report under this section, the Secretary of the Interior shall
coordinate with--
(1) the Administrator of the Environmental Protection
Agency;
(2) the Secretary of Energy; and
(3) the heads of other appropriate agencies.
(d) Compliance With Safe Drinking Water Act.--The Secretary
shall ensure that all recommendations developed under this
section are in compliance with all Federal environmental laws,
including the Safe Drinking Water Act (42 U.S.C. 300f et seq.)
and regulations under that Act.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A--Management Improvements
SEC. 801. NATIONAL MEDIA CAMPAIGN.
(a) In General.--The Secretary, acting through the Assistant
Secretary for Energy Efficiency and Renewable Energy (referred
to in this section as the ``Secretary''), shall develop and
conduct a national media campaign--
(1) to increase energy efficiency throughout the
economy of the United States during the 10-year period
beginning on the date of enactment of this Act;
(2) to promote the national security benefits
associated with increased energy efficiency; and
(3) to decrease oil consumption in the United States
during the 10-year period beginning on the date of
enactment of this Act.
(b) Contract With Entity.--The Secretary shall carry out
subsection (a) directly or through--
(1) competitively bid contracts with 1 or more
nationally recognized media firms for the development
and distribution of monthly television, radio, and
newspaper public service announcements; or
(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit
organizations for the funding, development, and
distribution of monthly television, radio, and
newspaper public service announcements.
(c) Use of Funds.--
(1) In general.--Amounts made available to carry out
this section shall be used for--
(A) advertising costs, including--
(i) the purchase of media time and
space;
(ii) creative and talent costs;
(iii) testing and evaluation of
advertising; and
(iv) evaluation of the effectiveness
of the media campaign; and
(B) administrative costs, including
operational and management expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of
funds made available under subsection (e) for each
fiscal year for the advertising functions specified
under paragraph (1)(A).
(d) Reports.--The Secretary shall annually submit to Congress
a report that describes--
(1) the strategy of the national media campaign and
whether specific objectives of the campaign were
accomplished, including--
(A) determinations concerning the rate of
change of energy consumption, in both absolute
and per capita terms; and
(B) an evaluation that enables consideration
of whether the media campaign contributed to
reduction of energy consumption;
(2) steps taken to ensure that the national media
campaign operates in an effective and efficient manner
consistent with the overall strategy and focus of the
campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase
advertising time and space and eliminate the potential
for waste, fraud, and abuse; and
(5) all contracts or cooperative agreements entered
into with a corporation, partnership, or individual
working on behalf of the national media campaign.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be
appropriated to carry out this section $5,000,000 for
each of fiscal years 2008 through 2012.
(2) Decreased oil consumption.--The Secretary shall
use not less than 50 percent of the amount that is made
available under this section for each fiscal year to
develop and conduct a national media campaign to
decrease oil consumption in the United States over the
next decade.
SEC. 802. ALASKA NATURAL GAS PIPELINE ADMINISTRATION.
Section 106 of the Alaska Natural Gas Pipeline Act (15 U.S.C.
720d) is amended by adding at the end the following:
``(h) Administration.--
``(1) Personnel appointments.--
``(A) In general.--The Federal Coordinator
may appoint and terminate such personnel as the
Federal Coordinator determines to be
appropriate.
``(B) Authority of federal coordinator.--
Personnel appointed by the Federal Coordinator
under subparagraph (A) shall be appointed
without regard to the provisions of title 5,
United States Code, governing appointments in
the competitive service.
``(2) Compensation.--
``(A) In general.--Subject to subparagraph
(B), personnel appointed by the Federal
Coordinator under paragraph (1)(A) shall be
paid without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of
title 5, United States Code (relating to
classification and General Schedule pay rates).
``(B) Maximum level of compensation.--The
rate of pay for personnel appointed by the
Federal Coordinator under paragraph (1)(A)
shall not exceed the maximum level of rate
payable for level III of the Executive Schedule
(5 U.S.C. 5314).
``(C) Allowances.--Section 5941 of title 5,
United States Code, shall apply to personnel
appointed by the Federal Coordinator under
paragraph (1)(A).
``(3) Temporary services.--
``(A) In general.--The Federal Coordinator
may procure temporary and intermittent services
in accordance with section 3109(b) of title 5,
United States Code.
``(B) Maximum level of compensation.--The
level of compensation of an individual employed
on a temporary or intermittent basis under
subparagraph (A) shall not exceed the maximum
level of rate payable for level III of the
Executive Schedule (5 U.S.C. 5314).
``(4) Fees, charges, and commissions.--
``(A) In general.--With respect to the duties
of the Federal Coordinator, as described in
this Act, the Federal Coordinator shall have
similar authority to establish, change, and
abolish reasonable filing and service fees,
charges, and commissions, require deposits of
payments, and provide refunds as provided to
the Secretary of the Interior in section 304 of
the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1734).
``(B) Authority of secretary of the
interior.--Subparagraph (A) shall not affect
the authority of the Secretary of the Interior
to establish, change, and abolish reasonable
filing and service fees, charges, and
commissions, require deposits of payments, and
provide refunds under section 304 of the
Federal Land Policy and Management Act of 1976
(43 U.S.C. 1734).
``(C) Use of funds.--The Federal Coordinator
is authorized to use, without further
appropriation, amounts collected under
subparagraph (A) to carry out this section.''.
SEC. 803. RENEWABLE ENERGY DEPLOYMENT.
(a) Definitions.--In this section:
(1) Alaska small hydroelectric power.--The term
``Alaska small hydroelectric power'' means power that--
(A) is generated--
(i) in the State of Alaska;
(ii) without the use of a dam or
impoundment of water; and
(iii) through the use of--
(I) a lake tap (but not a
perched alpine lake); or
(II) a run-of-river screened
at the point of diversion; and
(B) has a nameplate capacity rating of a
wattage that is not more than 15 megawatts.
(2) Eligible applicant.--The term ``eligible
applicant'' means any--
(A) governmental entity;
(B) private utility;
(C) public utility;
(D) municipal utility;
(E) cooperative utility;
(F) Indian tribes; and
(G) Regional Corporation (as defined in
section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602)).
(3) Ocean energy.--
(A) Inclusions.--The term ``ocean energy''
includes current, wave, and tidal energy.
(B) Exclusion.--The term ``ocean energy''
excludes thermal energy.
(4) Renewable energy project.--The term ``renewable
energy project'' means a project--
(A) for the commercial generation of
electricity; and
(B) that generates electricity from--
(i) solar, wind, or geothermal energy
or ocean energy;
(ii) biomass (as defined in section
203(b) of the Energy Policy Act of 2005
(42 U.S.C. 15852(b)));
(iii) landfill gas; or
(iv) Alaska small hydroelectric
power.
(b) Renewable Energy Construction Grants.--
(1) In general.--The Secretary shall use amounts
appropriated under this section to make grants for use
in carrying out renewable energy projects.
(2) Criteria.--Not later than 180 days after the date
of enactment of this Act, the Secretary shall set forth
criteria for use in awarding grants under this section.
(3) Application.--To receive a grant from the
Secretary under paragraph (1), an eligible applicant
shall submit to the Secretary an application at such
time, in such manner, and containing such information
as the Secretary may require, including a written
assurance that--
(A) all laborers and mechanics employed by
contractors or subcontractors during
construction, alteration, or repair that is
financed, in whole or in part, by a grant under
this section shall be paid wages at rates not
less than those prevailing on similar
construction in the locality, as determined by
the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40,
United States Code; and
(B) the Secretary of Labor shall, with
respect to the labor standards described in
this paragraph, have the authority and
functions set forth in Reorganization Plan
Numbered 14 of 1950 (5 U.S.C. App.) and section
3145 of title 40, United States Code.
(4) Non-federal share.--Each eligible applicant that
receives a grant under this subsection shall contribute
to the total cost of the renewable energy project
constructed by the eligible applicant an amount not
less than 50 percent of the total cost of the project.
(c) Authorization of Appropriations.--There are authorized to
be appropriated to the Fund such sums as are necessary to carry
out this section.
SEC. 804. COORDINATION OF PLANNED REFINERY OUTAGES.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means
the Administrator of the Energy Information
Administration.
(2) Planned refinery outage.--
(A) In general.--The term ``planned refinery
outage'' means a removal, scheduled before the
date on which the removal occurs, of a
refinery, or any unit of a refinery, from
service for maintenance, repair, or
modification.
(B) Exclusion.--The term ``planned refinery
outage'' does not include any necessary and
unplanned removal of a refinery, or any unit of
a refinery, from service as a result of a
component failure, safety hazard, emergency, or
action reasonably anticipated to be necessary
to prevent such events.
(3) Refined petroleum product.--The term ``refined
petroleum product'' means any gasoline, diesel fuel,
fuel oil, lubricating oil, liquid petroleum gas, or
other petroleum distillate that is produced through the
refining or processing of crude oil or an oil derived
from tar sands, shale, or coal.
(4) Refinery.--The term ``refinery'' means a facility
used in the production of a refined petroleum product
through distillation, cracking, or any other process.
(b) Review and Analysis of Available Information.--The
Administrator shall, on an ongoing basis--
(1) review information on refinery outages that is
available from commercial reporting services;
(2) analyze that information to determine whether the
scheduling of a refinery outage may nationally or
regionally substantially affect the price or supply of
any refined petroleum product by--
(A) decreasing the production of the refined
petroleum product; and
(B) causing or contributing to a retail or
wholesale supply shortage or disruption;
(3) not less frequently than twice each year, submit
to the Secretary a report describing the results of the
review and analysis under paragraphs (1) and (2); and
(4) specifically alert the Secretary of any refinery
outage that the Administrator determines may nationally
or regionally substantially affect the price or supply
of a refined petroleum product.
(c) Action by Secretary.--On a determination by the
Secretary, based on a report or alert under paragraph (3) or
(4) of subsection (b), that a refinery outage may affect the
price or supply of a refined petroleum product, the Secretary
shall make available to refinery operators information on
planned refinery outages to encourage reductions of the
quantity of refinery capacity that is out of service at any
time.
(d) Limitation.--Nothing in this section shall alter any
existing legal obligation or responsibility of a refinery
operator, or create any legal right of action, nor shall this
section authorize the Secretary--
(1) to prohibit a refinery operator from conducting a
planned refinery outage; or
(2) to require a refinery operator to continue to
operate a refinery.
SEC. 805. ASSESSMENT OF RESOURCES.
(a) 5-Year Plan.--
(1) Establishment.--The Administrator of the Energy
Information Administration (referred to in this section
as the ``Administrator'') shall establish a 5-year plan
to enhance the quality and scope of the data collection
necessary to ensure the scope, accuracy, and timeliness
of the information needed for efficient functioning of
energy markets and related financial operations.
(2) Requirement.--In establishing the plan under
paragraph (1), the Administrator shall pay particular
attention to--
(A) data series terminated because of budget
constraints;
(B) data on demand response;
(C) timely data series of State-level
information;
(D) improvements in the area of oil and gas
data;
(E) improvements in data on solid byproducts
from coal-based energy-producing facilities;
and
(F) the ability to meet applicable deadlines
under Federal law (including regulations) to
provide data required by Congress.
(b) Submission to Congress.--The Administrator shall submit
to Congress the plan established under subsection (a),
including a description of any improvements needed to enhance
the ability of the Administrator to collect and process energy
information in a manner consistent with the needs of energy
markets.
(c) Guidelines.--
(1) In general.--The Administrator shall--
(A) establish guidelines to ensure the
quality, comparability, and scope of State
energy data, including data on energy
production and consumption by product and
sector and renewable and alternative sources,
required to provide a comprehensive, accurate
energy profile at the State level;
(B) share company-level data collected at the
State level with each State involved, in a
manner consistent with the legal authorities,
confidentiality protections, and stated uses in
effect at the time the data were collected,
subject to the condition that the State shall
agree to reasonable requirements for use of the
data, as the Administrator may require;
(C) assess any existing gaps in data obtained
and compiled by the Energy Information
Administration; and
(D) evaluate the most cost-effective ways to
address any data quality and quantity issues in
conjunction with State officials.
(2) Consultation.--The Administrator shall consult
with State officials and the Federal Energy Regulatory
Commission on a regular basis in--
(A) establishing guidelines and determining
the scope of State-level data under paragraph
(1); and
(B) exploring ways to address data needs and
serve data uses.
(d) Assessment of State Data Needs.--Not later than 1 year
after the date of enactment of this Act, the Administrator
shall submit to Congress an assessment of State-level data
needs, including a plan to address the needs.
(e) Authorization of Appropriations.--In addition to any
other amounts made available to the Administrator, there are
authorized to be appropriated to the Administrator to carry out
this section--
(1) $10,000,000 for fiscal year 2008;
(2) $10,000,000 for fiscal year 2009;
(3) $10,000,000 for fiscal year 2010;
(4) $15,000,000 for fiscal year 2011;
(5) $20,000,000 for fiscal year 2012; and
(6) such sums as are necessary for subsequent fiscal
years.
SEC. 806. SENSE OF CONGRESS RELATING TO THE USE OF RENEWABLE RESOURCES
TO GENERATE ENERGY.
(a) Findings.--Congress finds that--
(1) the United States has a quantity of renewable
energy resources that is sufficient to supply a
significant portion of the energy needs of the United
States;
(2) the agricultural, forestry, and working land of
the United States can help ensure a sustainable
domestic energy system;
(3) accelerated development and use of renewable
energy technologies provide numerous benefits to the
United States, including improved national security,
improved balance of payments, healthier rural
economies, improved environmental quality, and
abundant, reliable, and affordable energy for all
citizens of the United States;
(4) the production of transportation fuels from
renewable energy would help the United States meet
rapidly growing domestic and global energy demands,
reduce the dependence of the United States on energy
imported from volatile regions of the world that are
politically unstable, stabilize the cost and
availability of energy, and safeguard the economy and
security of the United States;
(5) increased energy production from domestic
renewable resources would attract substantial new
investments in energy infrastructure, create economic
growth, develop new jobs for the citizens of the United
States, and increase the income for farm, ranch, and
forestry jobs in the rural regions of the United
States;
(6) increased use of renewable energy is practical
and can be cost effective with the implementation of
supportive policies and proper incentives to stimulate
markets and infrastructure; and
(7) public policies aimed at enhancing renewable
energy production and accelerating technological
improvements will further reduce energy costs over time
and increase market demand.
(b) Sense of Congress.--It is the sense of Congress that it
is the goal of the United States that, not later than January
1, 2025, the agricultural, forestry, and working land of the
United States should--
(1) provide from renewable resources not less than 25
percent of the total energy consumed in the United
States; and
(2) continue to produce safe, abundant, and
affordable food, feed, and fiber.
SEC. 807. GEOTHERMAL ASSESSMENT, EXPLORATION INFORMATION, AND PRIORITY
ACTIVITIES.
(a) In General.--Not later than January 1, 2012, the
Secretary of the Interior, acting through the Director of the
United States Geological Survey, shall--
(1) complete a comprehensive nationwide geothermal
resource assessment that examines the full range of
geothermal resources in the United States; and
(2) submit to the the Committee on Natural Resources
of the House of Representatives and the Committee on
Energy and Natural Resources of the Senate a report
describing the results of the assessment.
(b) Periodic Updates.--At least once every 10 years, the
Secretary shall update the national assessment required under
this section to support public and private sector
decisionmaking.
(c) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary of the Interior to carry out
this section--
(1) $15,000,000 for each of fiscal years 2008 through
2012; and
(2) such sums as are necessary for each of fiscal
years 2013 through 2022.
Subtitle B--Prohibitions on Market Manipulation and False Information
SEC. 811. PROHIBITION ON MARKET MANIPULATION.
It is unlawful for any person, directly or indirectly, to use
or employ, in connection with the purchase or sale of crude oil
gasoline or petroleum distillates at wholesale, any
manipulative or deceptive device or contrivance, in
contravention of such rules and regulations as the Federal
Trade Commission may prescribe as necessary or appropriate in
the public interest or for the protection of United States
citizens.
SEC. 812. PROHIBITION ON FALSE INFORMATION.
It is unlawful for any person to report information related
to the wholesale price of crude oil gasoline or petroleum
distillates to a Federal department or agency if--
(1) the person knew, or reasonably should have known,
the information to be false or misleading;
(2) the information was required by law to be
reported; and
(3) the person intended the false or misleading data
to affect data compiled by the department or agency for
statistical or analytical purposes with respect to the
market for crude oil, gasoline, or petroleum
distillates.
SEC. 813. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Enforcement.--This subtitle shall be enforced by the
Federal Trade Commission in the same manner, by the same means,
and with the same jurisdiction as though all applicable terms
of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were
incorporated into and made a part of this subtitle.
(b) Violation Is Treated as Unfair or Deceptive Act or
Practice.--The violation of any provision of this subtitle
shall be treated as an unfair or deceptive act or practice
proscribed under a rule issued under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
SEC. 814. PENALTIES.
(a) Civil Penalty.--In addition to any penalty applicable
under the Federal Trade Commission Act (15 U.S.C. 41 et seq.),
any supplier that violates section 811 or 812 shall be
punishable by a civil penalty of not more than $1,000,000.
(b) Method.--The penalties provided by subsection (a) shall
be obtained in the same manner as civil penalties imposed under
section 5 of the Federal Trade Commission Act (15 U.S.C. 45).
(c) Multiple Offenses; Mitigating Factors.--In assessing the
penalty provided by subsection (a)--
(1) each day of a continuing violation shall be
considered a separate violation; and
(2) the court shall take into consideration, among
other factors--
(A) the seriousness of the violation; and
(B) the efforts of the person committing the
violation to remedy the harm caused by the
violation in a timely manner.
SEC. 815. EFFECT ON OTHER LAWS.
(a) Other Authority of the Commission.--Nothing in this
subtitle limits or affects the authority of the Federal Trade
Commission to bring an enforcement action or take any other
measure under the Federal Trade Commission Act (15 U.S.C. 41 et
seq.) or any other provision of law.
(b) Antitrust Law.--Nothing in this subtitle shall be
construed to modify, impair, or supersede the operation of any
of the antitrust laws. For purposes of this subsection, the
term ``antitrust laws'' shall have the meaning given it in
subsection (a) of the first section of the Clayton Act (15
U.S.C. 12), except that it includes section 5 of the Federal
Trade Commission Act (15 U.S.C. 45) to the extent that such
section 5 applies to unfair methods of competition.
(c) State Law.--Nothing in this subtitle preempts any State
law.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
SEC. 901. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Energy and Commerce of the House
of Representatives; and
(B) the Committee on Foreign Relations, the
Committee on Energy and Natural Resources, the
Committee on Environment and Public Works of
the Senate, and the Committee on Commerce,
Science, and Transportation.
(2) Clean and efficient energy technology.--The term
``clean and efficient energy technology'' means an
energy supply or end-use technology that, compared to a
similar technology already in widespread commercial use
in a recipient country, will--
(A) reduce emissions of greenhouse gases; or
(B)(i) increase efficiency of energy
production; or
(ii) decrease intensity of energy usage.
(3) Greenhouse gas.--The term ``greenhouse gas''
means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons; or
(F) sulfur hexafluoride.
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
SEC. 911. UNITED STATES ASSISTANCE FOR DEVELOPING COUNTRIES.
(a) Assistance Authorized.--The Administrator of the United
States Agency for International Development shall support
policies and programs in developing countries that promote
clean and efficient energy technologies--
(1) to produce the necessary market conditions for
the private sector delivery of energy and environmental
management services;
(2) to create an environment that is conducive to
accepting clean and efficient energy technologies that
support the overall purpose of reducing greenhouse gas
emissions, including--
(A) improving policy, legal, and regulatory
frameworks;
(B) increasing institutional abilities to
provide energy and environmental management
services; and
(C) increasing public awareness and
participation in the decision-making of
delivering energy and environmental management
services; and
(3) to promote the use of American-made clean and
efficient energy technologies, products, and energy and
environmental management services.
(b) Report.--The Administrator of the United States Agency
for International Development shall submit to the appropriate
congressional committees an annual report on the implementation
of this section for each of the fiscal years 2008 through 2012.
(c) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated to the
Administrator of the United States Agency for International
Development $200,000,000 for each of the fiscal years 2008
through 2012.
SEC. 912. UNITED STATES EXPORTS AND OUTREACH PROGRAMS FOR INDIA, CHINA,
AND OTHER COUNTRIES.
(a) Assistance Authorized.--The Secretary of Commerce shall
direct the United States and Foreign Commercial Service to
expand or create a corps of the Foreign Commercial Service
officers to promote United States exports in clean and
efficient energy technologies and build the capacity of
government officials in India, China, and any other country the
Secretary of Commerce determines appropriate, to become more
familiar with the available technologies--
(1) by assigning or training Foreign Commercial
Service attaches, who have expertise in clean and
efficient energy technologies from the United States,
to embark on business development and outreach efforts
to such countries; and
(2) by deploying the attaches described in paragraph
(1) to educate provincial, state, and local government
officials in such countries on the variety of United
States-based technologies in clean and efficient energy
technologies for the purposes of promoting United
States exports and reducing global greenhouse gas
emissions.
(b) Report.--The Secretary of Commerce shall submit to the
appropriate congressional committees an annual report on the
implementation of this section for each of the fiscal years
2008 through 2012.
(c) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated to the
Secretary of Commerce such sums as may be necessary for each of
the fiscal years 2008 through 2012.
SEC. 913. UNITED STATES TRADE MISSIONS TO ENCOURAGE PRIVATE SECTOR
TRADE AND INVESTMENT.
(a) Assistance Authorized.--The Secretary of Commerce shall
direct the International Trade Administration to expand or
create trade missions to and from the United States to
encourage private sector trade and investment in clean and
efficient energy technologies--
(1) by organizing and facilitating trade missions to
foreign countries and by matching United States private
sector companies with opportunities in foreign markets
so that clean and efficient energy technologies can
help to combat increases in global greenhouse gas
emissions; and
(2) by creating reverse trade missions in which the
Department of Commerce facilitates the meeting of
foreign private and public sector organizations with
private sector companies in the United States for the
purpose of showcasing clean and efficient energy
technologies in use or in development that could be
exported to other countries.
(b) Report.--The Secretary of Commerce shall submit to the
appropriate congressional committees an annual report on the
implementation of this section for each of the fiscal years
2008 through 2012.
(c) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated to the
Secretary of Commerce such sums as may be necessary for each of
the fiscal years 2008 through 2012.
SEC. 914. ACTIONS BY OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) Sense of Congress.--It is the sense of Congress that the
Overseas Private Investment Corporation should promote greater
investment in clean and efficient energy technologies by--
(1) proactively reaching out to United States
companies that are interested in investing in clean and
efficient energy technologies in countries that are
significant contributors to global greenhouse gas
emissions;
(2) giving preferential treatment to the evaluation
and awarding of projects that involve the investment or
utilization of clean and efficient energy technologies;
and
(3) providing greater flexibility in supporting
projects that involve the investment or utilization of
clean and efficient energy technologies, including
financing, insurance, and other assistance.
(b) Report.--The Overseas Private Investment Corporation
shall include in its annual report required under section 240A
of the Foreign Assistance Act of 1961 (22 U.S.C. 2200a)--
(1) a description of the activities carried out to
implement this section; or
(2) if the Corporation did not carry out any
activities to implement this section, an explanation of
the reasons therefor.
SEC. 915. ACTIONS BY UNITED STATES TRADE AND DEVELOPMENT AGENCY.
(a) Assistance Authorized.--The Director of the Trade and
Development Agency shall establish or support policies that--
(1) proactively seek opportunities to fund projects
that involve the utilization of clean and efficient
energy technologies, including in trade capacity
building and capital investment projects;
(2) where appropriate, advance the utilization of
clean and efficient energy technologies, particularly
to countries that have the potential for significant
reduction in greenhouse gas emissions; and
(3) recruit and retain individuals with appropriate
expertise or experience in clean, renewable, and
efficient energy technologies to identify and evaluate
opportunities for projects that involve clean and
efficient energy technologies and services.
(b) Report.--The President shall include in the annual report
on the activities of the Trade and Development Agency required
under section 661(d) of the Foreign Assistance Act of 1961 (22
U.S.C. 2421(d)) a description of the activities carried out to
implement this section.
SEC. 916. DEPLOYMENT OF INTERNATIONAL CLEAN AND EFFICIENT ENERGY
TECHNOLOGIES AND INVESTMENT IN GLOBAL ENERGY
MARKETS.
(a) Task Force.--
(1) Establishment.--Not later than 90 days after the
date of the enactment of this Act, the President shall
establish a Task Force on International Cooperation for
Clean and Efficient Energy Technologies (in this
section referred to as the ``Task Force'').
(2) Composition.--The Task Force shall be composed of
representatives, appointed by the head of the
respective Federal department or agency, of--
(A) the Council on Environmental Quality;
(B) the Department of Energy;
(C) the Department of Commerce;
(D) the Department of the Treasury;
(E) the Department of State;
(F) the Environmental Protection Agency;
(G) the United States Agency for
International Development;
(H) the Export-Import Bank of the United
States;
(I) the Overseas Private Investment
Corporation:
(J) the Trade and Development Agency;
(K) the Small Business Administration;
(L) the Office of the United States Trade
Representative; and
(M) other Federal departments and agencies,
as determined by the President.
(3) Chairperson.--The President shall designate a
Chairperson or Co-Chairpersons of the Task Force.
(4) Duties.--The Task Force--
(A) shall develop and assist in the
implementation of the strategy required under
subsection (c); and
(B)(i) shall analyze technology, policy, and
market opportunities for the development,
demonstration, and deployment of clean and
efficient energy technologies on an
international basis; and
(ii) shall examine relevant trade, tax,
finance, international, and other policy issues
to assess which policies, in the United States
and in developing countries, would help open
markets and improve the export of clean and
efficient energy technologies from the United
States.
(5) Termination.--The Task Force, including any
working group established by the Task Force pursuant to
subsection (b), shall terminate 12 years after the date
of the enactment of this Act.
(b) Working Groups.--
(1) Establishment.--The Task Force--
(A) shall establish an Interagency Working
Group on the Export of Clean and Efficient
Energy Technologies (in this section referred
to as the ``Interagency Working Group''); and
(B) may establish other working groups as may
be necessary to carry out this section.
(2) Composition.--The Interagency Working Group shall
be composed of--
(A) the Secretary of Energy, the Secretary of
Commerce, and the Secretary of State, who shall
serve as Co-Chairpersons of the Interagency
Working Group; and
(B) other members, as determined by the
Chairperson or Co-Chairpersons of the Task
Force.
(3) Duties.--The Interagency Working Group shall
coordinate the resources and relevant programs of the
Department of Energy, the Department of Commerce, the
Department of State, and other relevant Federal
departments and agencies to support the export of clean
and efficient energy technologies developed or
demonstrated in the United States to other countries
and the deployment of such clean and efficient energy
technologies in such other countries.
(4) Interagency center.--The Interagency Working
Group--
(A) shall establish an Interagency Center on
the Export of Clean and Efficient Energy
Technologies (in this section referred to as
the ``Interagency Center'') to assist the
Interagency Working Group in carrying out its
duties required under paragraph (3); and
(B) shall locate the Interagency Center at a
site agreed upon by the Co-Chairpersons of the
Interagency Working Group, with the approval of
Chairperson or Co-Chairpersons of the Task
Force.
(c) Strategy.--
(1) In general.--Not later than 1 year after the date
of the enactment of this Act, the Task Force shall
develop and submit to the President and the appropriate
congressional committees a strategy to--
(A) support the development and
implementation of programs, policies, and
initiatives in developing countries to promote
the adoption and deployment of clean and
efficient energy technologies, with an emphasis
on those developing countries that are expected
to experience the most significant growth in
energy production and use over the next 20
years;
(B) open and expand clean and efficient
energy technology markets and facilitate the
export of clean and efficient energy
technologies to developing countries, in a
manner consistent with United States
obligations as member of the World Trade
Organization;
(C) integrate into the foreign policy
objectives of the United States the promotion
of--
(i) the deployment of clean and
efficient energy technologies and the
reduction of greenhouse gas emissions
in developing countries; and
(ii) the export of clean and
efficient energy technologies; and
(D) develop financial mechanisms and
instruments, including securities that mitigate
the political and foreign exchange risks of
uses that are consistent with the foreign
policy objectives of the United States by
combining the private sector market and
government enhancements, that--
(i) are cost-effective; and
(ii) facilitate private capital
investment in clean and efficient
energy technology projects in
developing countries.
(2) Updates.--Not later than 3 years after the date
of submission of the strategy under paragraph (1), and
every 3 years thereafter, the Task Force shall update
the strategy in accordance with the requirements of
paragraph (1).
(d) Report.--
(1) In general.--Not later than 3 years after the
date of submission of the strategy under subsection
(c)(1), and every 3 years thereafter, the President
shall transmit to the appropriate congressional
committees a report on the implementation of this
section for the prior 3-year period.
(2) Matters to be included.--The report required
under paragraph (1) shall include the following:
(A) The update of the strategy required under
subsection (c)(2) and a description of the
actions taken by the Task Force to assist in
the implementation of the strategy.
(B) A description of actions taken by the
Task Force to carry out the duties required
under subsection (a)(4)(B).
(C) A description of assistance provided
under this section.
(D) The results of programs, projects, and
activities carried out under this section.
(E) A description of priorities for promoting
the diffusion and adoption of clean and
efficient energy technologies and strategies in
developing countries, taking into account
economic and security interests of the United
States and opportunities for the export of
technology of the United States.
(F) Recommendations to the heads of
appropriate Federal departments and agencies on
methods to streamline Federal programs and
policies to improve the role of such Federal
departments and agencies in the development,
demonstration, and deployment of clean and
efficient energy technologies on an
international basis.
(G) Strategies to integrate representatives
of the private sector and other interested
groups on the export and deployment of clean
and efficient energy technologies.
(H) A description of programs to disseminate
information to the private sector and the
public on clean and efficient energy
technologies and opportunities to transfer such
clean and efficient energy technologies.
(e) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $5,000,000 for each
of fiscal years 2008 through 2020.
SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION.
(a) Findings.--Congress finds that--
(1) it is in the highest national security interests
of the United States to develop renewable energy
sources;
(2) the State of Israel is a steadfast ally of the
United States;
(3) the special relationship between the United
States and Israel is manifested in a variety of
cooperative scientific research and development
programs, such as--
(A) the United States-Israel Binational
Science Foundation; and
(B) the United States-Israel Binational
Industrial Research and Development Foundation;
(4) those programs have made possible many
scientific, technological, and commercial breakthroughs
in the fields of life sciences, medicine,
bioengineering, agriculture, biotechnology,
communications, and others;
(5) on February 1, 1996, the Secretary of Energy
(referred to in this section as the ``Secretary'') and
the Israeli Minister of Energy and Infrastructure
signed an agreement to establish a framework for
collaboration between the United States and Israel in
energy research and development activities;
(6) Israeli scientists and engineers are at the
forefront of research and development in the field of
renewable energy sources; and
(7) enhanced cooperation between the United States
and Israel for the purpose of research and development
of renewable energy sources would be in the national
interests of both countries.
(b) Grant Program.--
(1) Establishment.--In implementing the agreement
entitled the ``Agreement between the Department of
Energy of the United States of America and the Ministry
of Energy and Infrastructure of Israel Concerning
Energy Cooperation'', dated February 1, 1996, the
Secretary shall establish a grant program in accordance
with the requirements of sections 988 and 989 of the
Energy Policy Act of 2005 (42 U.S.C. 16352, 16353) to
support research, development, and commercialization of
renewable energy or energy efficiency.
(2) Types of energy.--In carrying out paragraph (1),
the Secretary may make grants to promote--
(A) solar energy;
(B) biomass energy;
(C) energy efficiency;
(D) wind energy;
(E) geothermal energy;
(F) wave and tidal energy; and
(G) advanced battery technology.
(3) Eligible applicants.--An applicant shall be
eligible to receive a grant under this subsection if
the project of the applicant--
(A) addresses a requirement in the area of
improved energy efficiency or renewable energy
sources, as determined by the Secretary; and
(B) is a joint venture between--
(i)(I) a for-profit business entity,
academic institution, National
Laboratory (as defined in section 2 of
the Energy Policy Act of 2005 (42
U.S.C. 15801)), or nonprofit entity in
the United States; and
(II) a for-profit business entity,
academic institution, or nonprofit
entity in Israel; or
(ii)(I) the Federal Government; and
(II) the Government of Israel.
(4) Applications.--To be eligible to receive a grant
under this subsection, an applicant shall submit to the
Secretary an application for the grant in accordance
with procedures established by the Secretary, in
consultation with the advisory board established under
paragraph (5).
(5) Advisory board.--
(A) Establishment.--The Secretary shall
establish an advisory board--
(i) to monitor the method by which
grants are awarded under this
subsection; and
(ii) to provide to the Secretary
periodic performance reviews of actions
taken to carry out this subsection.
(B) Composition.--The advisory board
established under subparagraph (A) shall be
composed of 3 members, to be appointed by the
Secretary, of whom--
(i) 1 shall be a representative of
the Federal Government;
(ii) 1 shall be selected from a list
of nominees provided by the United
States-Israel Binational Science
Foundation; and
(iii) 1 shall be selected from a list
of nominees provided by the United
States-Israel Binational Industrial
Research and Development Foundation.
(6) Contributed funds.--Notwithstanding section 3302
of title 31, United States Code, the Secretary may
accept, retain, and use funds contributed by any
person, government entity, or organization for purposes
of carrying out this subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(7) Report.--Not later than 180 days after the date
of completion of a project for which a grant is
provided under this subsection, the grant recipient
shall submit to the Secretary a report that contains--
(A) a description of the method by which the
recipient used the grant funds; and
(B) an evaluation of the level of success of
each project funded by the grant.
(8) Classification.--Grants shall be awarded under
this subsection only for projects that are considered
to be unclassified by both the United States and
Israel.
(c) Termination.--The grant program and the advisory
committee established under this section terminate on the date
that is 7 years after the date of enactment of this Act.
(d) Authorization of Appropriations.--The Secretary shall use
amounts authorized to be appropriated under section 931 of the
Energy Policy Act of 2005 (42 U.S.C. 16231) to carry out this
section.
Subtitle B--International Clean Energy Foundation
SEC. 921. DEFINITIONS.
In this subtitle:
(1) Board.--The term ``Board'' means the Board of
Directors of the Foundation established pursuant to
section 922(c).
(2) Chief executive officer.--The term ``Chief
Executive Officer'' means the chief executive officer
of the Foundation appointed pursuant to section 922(b).
(3) Foundation.--The term ``Foundation'' means the
International Clean Energy Foundation established by
section 922(a).
SEC. 922. ESTABLISHMENT AND MANAGEMENT OF FOUNDATION.
(a) Establishment.--
(1) In general.--There is established in the
executive branch a foundation to be known as the
``International Clean Energy Foundation'' that shall be
responsible for carrying out the provisions of this
subtitle. The Foundation shall be a government
corporation, as defined in section 103 of title 5,
United States Code.
(2) Board of directors.--The Foundation shall be
governed by a Board of Directors in accordance with
subsection (c).
(3) Intent of congress.--It is the intent of
Congress, in establishing the structure of the
Foundation set forth in this subsection, to create an
entity that serves the long-term foreign policy and
energy security goals of reducing global greenhouse gas
emissions.
(b) Chief Executive Officer.--
(1) In general.--There shall be in the Foundation a
Chief Executive Officer who shall be responsible for
the management of the Foundation.
(2) Appointment.--The Chief Executive Officer shall
be appointed by the Board, with the advice and consent
of the Senate, and shall be a recognized leader in
clean and efficient energy technologies and climate
change and shall have experience in energy security,
business, or foreign policy, chosen on the basis of a
rigorous search.
(3) Relationship to board.--The Chief Executive
Officer shall report to, and be under the direct
authority of, the Board.
(4) Compensation and rank.--
(A) In general.--The Chief Executive Officer
shall be compensated at the rate provided for
level III of the Executive Schedule under
section 5314 of title 5, United States Code.
(B) Amendment.--Section 5314 of title 5,
United States Code, is amended by adding at the
end the following:
``Chief Executive Officer, International Clean Energy
Foundation.''.
(C) Authorities and duties.--The Chief
Executive Officer shall be responsible for the
management of the Foundation and shall exercise
the powers and discharge the duties of the
Foundation.
(D) Authority to appoint officers.--In
consultation and with approval of the Board,
the Chief Executive Officer shall appoint all
officers of the Foundation.
(c) Board of Directors.--
(1) Establishment.--There shall be in the Foundation
a Board of Directors.
(2) Duties.--The Board shall perform the functions
specified to be carried out by the Board in this
subtitle and may prescribe, amend, and repeal bylaws,
rules, regulations, and procedures governing the manner
in which the business of the Foundation may be
conducted and in which the powers granted to it by law
may be exercised.
(3) Membership.--The Board shall consist of--
(A) the Secretary of State (or the
Secretary's designee), the Secretary of Energy
(or the Secretary's designee), and the
Administrator of the United States Agency for
International Development (or the
Administrator's designee); and
(B) four other individuals with relevant
experience in matters relating to energy
security (such as individuals who represent
institutions of energy policy, business
organizations, foreign policy organizations, or
other relevant organizations) who shall be
appointed by the President, by and with the
advice and consent of the Senate, of whom--
(i) one individual shall be appointed
from among a list of individuals
submitted by the majority leader of the
House of Representatives;
(ii) one individual shall be
appointed from among a list of
individuals submitted by the minority
leader of the House of Representatives;
(iii) one individual shall be
appointed from among a list of
individuals submitted by the majority
leader of the Senate; and
(iv) one individual shall be
appointed from among a list of
individuals submitted by the minority
leader of the Senate.
(4) Chief executive officer.--The Chief Executive
Officer of the Foundation shall serve as a nonvoting,
ex officio member of the Board.
(5) Terms.--
(A) Officers of the federal government.--Each
member of the Board described in paragraph
(3)(A) shall serve for a term that is
concurrent with the term of service of the
individual's position as an officer within the
other Federal department or agency.
(B) Other members.--Each member of the Board
described in paragraph (3)(B) shall be
appointed for a term of 3 years and may be
reappointed for a term of an additional 3
years.
(C) Vacancies.--A vacancy in the Board shall
be filled in the manner in which the original
appointment was made.
(D) Acting members.--A vacancy in the Board
may be filled with an appointment of an acting
member by the Chairperson of the Board for up
to 1 year while a nominee is named and awaits
confirmation in accordance with paragraph
(3)(B).
(6) Chairperson.--There shall be a Chairperson of the
Board. The Secretary of State (or the Secretary's
designee) shall serve as the Chairperson.
(7) Quorum.--A majority of the members of the Board
described in paragraph (3) shall constitute a quorum,
which, except with respect to a meeting of the Board
during the 135-day period beginning on the date of the
enactment of this Act, shall include at least 1 member
of the Board described in paragraph (3)(B).
(8) Meetings.--The Board shall meet at the call of
the Chairperson, who shall call a meeting no less than
once a year.
(9) Compensation.--
(A) Officers of the federal government.--
(i) In general.--A member of the
Board described in paragraph (3)(A) may
not receive additional pay, allowances,
or benefits by reason of the member's
service on the Board.
(ii) Travel expenses.--Each such
member of the Board shall receive
travel expenses, including per diem in
lieu of subsistence, in accordance with
applicable provisions under subchapter
I of chapter 57 of title 5, United
States Code.
(B) Other members.--
(i) In general.--Except as provided
in clause (ii), a member of the Board
described in paragraph (3)(B)--
(I) shall be paid
compensation out of funds made
available for the purposes of
this subtitle at the daily
equivalent of the highest rate
payable under section 5332 of
title 5, United States Code,
for each day (including travel
time) during which the member
is engaged in the actual
performance of duties as a
member of the Board; and
(II) while away from the
member's home or regular place
of business on necessary travel
in the actual performance of
duties as a member of the
Board, shall be paid per diem,
travel, and transportation
expenses in the same manner as
is provided under subchapter I
of chapter 57 of title 5,
United States Code.
(ii) Limitation.--A member of the
Board may not be paid compensation
under clause (i)(II) for more than 90
days in any calendar year.
SEC. 923. DUTIES OF FOUNDATION.
The Foundation shall--
(1) use the funds authorized by this subtitle to make
grants to promote projects outside of the United States
that serve as models of how to significantly reduce the
emissions of global greenhouse gases through clean and
efficient energy technologies, processes, and services;
(2) seek contributions from foreign governments,
especially those rich in energy resources such as
member countries of the Organization of the Petroleum
Exporting Countries, and private organizations to
supplement funds made available under this subtitle;
(3) harness global expertise through collaborative
partnerships with foreign governments and domestic and
foreign private actors, including nongovernmental
organizations and private sector companies, by
leveraging public and private capital, technology,
expertise, and services towards innovative models that
can be instituted to reduce global greenhouse gas
emissions;
(4) create a repository of information on best
practices and lessons learned on the utilization and
implementation of clean and efficient energy
technologies and processes to be used for future
initiatives to tackle the climate change crisis;
(5) be committed to minimizing administrative costs
and to maximizing the availability of funds for grants
under this subtitle; and
(6) promote the use of American-made clean and
efficient energy technologies, processes, and services
by giving preference to entities incorporated in the
United States and whose technology will be
substantially manufactured in the United States.
SEC. 924. ANNUAL REPORT.
(a) Report Required.--Not later than March 31, 2008, and each
March 31 thereafter, the Foundation shall submit to the
appropriate congressional committees a report on the
implementation of this subtitle during the prior fiscal year.
(b) Contents.--The report required by subsection (a) shall
include--
(1) the total financial resources available to the
Foundation during the year, including appropriated
funds, the value and source of any gifts or donations
accepted pursuant to section 925(a)(6), and any other
resources;
(2) a description of the Board's policy priorities
for the year and the basis upon which competitive grant
proposals were solicited and awarded to nongovernmental
institutions and other organizations;
(3) a list of grants made to nongovernmental
institutions and other organizations that includes the
identity of the institutional recipient, the dollar
amount, and the results of the program; and
(4) the total administrative and operating expenses
of the Foundation for the year, as well as specific
information on--
(A) the number of Foundation employees and
the cost of compensation for Board members,
Foundation employees, and personal service
contractors;
(B) costs associated with securing the use of
real property for carrying out the functions of
the Foundation;
(C) total travel expenses incurred by Board
members and Foundation employees in connection
with Foundation activities; and
(D) total representational expenses.
SEC. 925. POWERS OF THE FOUNDATION; RELATED PROVISIONS.
(a) Powers.--The Foundation--
(1) shall have perpetual succession unless dissolved
by a law enacted after the date of the enactment of
this Act;
(2) may adopt, alter, and use a seal, which shall be
judicially noticed;
(3) may make and perform such contracts, grants, and
other agreements with any person or government however
designated and wherever situated, as may be necessary
for carrying out the functions of the Foundation;
(4) may determine and prescribe the manner in which
its obligations shall be incurred and its expenses
allowed and paid, including expenses for
representation;
(5) may lease, purchase, or otherwise acquire,
improve, and use such real property wherever situated,
as may be necessary for carrying out the functions of
the Foundation;
(6) may accept money, funds, services, or property
(real, personal, or mixed), tangible or intangible,
made available by gift, bequest grant, or otherwise for
the purpose of carrying out the provisions of this
title from domestic or foreign private individuals,
charities, nongovernmental organizations, corporations,
or governments;
(7) may use the United States mails in the same
manner and on the same conditions as the executive
departments;
(8) may contract with individuals for personal
services, who shall not be considered Federal employees
for any provision of law administered by the Office of
Personnel Management;
(9) may hire or obtain passenger motor vehicles; and
(10) shall have such other powers as may be necessary
and incident to carrying out this subtitle.
(b) Principal Office.--The Foundation shall maintain its
principal office in the metropolitan area of Washington,
District of Columbia.
(c) Applicability of Government Corporation Control Act.--
(1) In general.--The Foundation shall be subject to
chapter 91 of subtitle VI of title 31, United States
Code, except that the Foundation shall not be
authorized to issue obligations or offer obligations to
the public.
(2) Conforming amendment.--Section 9101(3) of title
31, United States Code, is amended by adding at the end
the following:
``(R) the International Clean Energy
Foundation.''.
(d) Inspector General.--
(1) In general.--The Inspector General of the
Department of State shall serve as Inspector General of
the Foundation, and, in acting in such capacity, may
conduct reviews, investigations, and inspections of all
aspects of the operations and activities of the
Foundation.
(2) Authority of the board.--In carrying out the
responsibilities under this subsection, the Inspector
General shall report to and be under the general
supervision of the Board.
(3) Reimbursement and authorization of services.--
(A) Reimbursement.--The Foundation shall
reimburse the Department of State for all
expenses incurred by the Inspector General in
connection with the Inspector General's
responsibilities under this subsection.
(B) Authorization for services.--Of the
amount authorized to be appropriated under
section 927(a) for a fiscal year, up to
$500,000 is authorized to be made available to
the Inspector General of the Department of
State to conduct reviews, investigations, and
inspections of operations and activities of the
Foundation.
SEC. 926. GENERAL PERSONNEL AUTHORITIES.
(a) Detail of Personnel.--Upon request of the Chief Executive
Officer, the head of an agency may detail any employee of such
agency to the Foundation on a reimbursable basis. Any employee
so detailed remains, for the purpose of preserving such
employee's allowances, privileges, rights, seniority, and other
benefits, an employee of the agency from which detailed.
(b) Reemployment Rights.--
(1) In general.--An employee of an agency who is
serving under a career or career conditional
appointment (or the equivalent), and who, with the
consent of the head of such agency, transfers to the
Foundation, is entitled to be reemployed in such
employee's former position or a position of like
seniority, status, and pay in such agency, if such
employee--
(A) is separated from the Foundation for any
reason, other than misconduct, neglect of duty,
or malfeasance; and
(B) applies for reemployment not later than
90 days after the date of separation from the
Foundation.
(2) Specific rights.--An employee who satisfies
paragraph (1) is entitled to be reemployed (in
accordance with such paragraph) within 30 days after
applying for reemployment and, on reemployment, is
entitled to at least the rate of basic pay to which
such employee would have been entitled had such
employee never transferred.
(c) Hiring Authority.--Of persons employed by the Foundation,
no more than 30 persons may be appointed, compensated, or
removed without regard to the civil service laws and
regulations.
(d) Basic Pay.--The Chief Executive Officer may fix the rate
of basic pay of employees of the Foundation without regard to
the provisions of chapter 51 of title 5, United States Code
(relating to the classification of positions), subchapter III
of chapter 53 of such title (relating to General Schedule pay
rates), except that no employee of the Foundation may receive a
rate of basic pay that exceeds the rate for level IV of the
Executive Schedule under section 5315 of such title.
(e) Definitions.--In this section--
(1) the term ``agency'' means an executive agency, as
defined by section 105 of title 5, United States Code;
and
(2) the term ``detail'' means the assignment or loan
of an employee, without a change of position, from the
agency by which such employee is employed to the
Foundation.
SEC. 927. AUTHORIZATION OF APPROPRIATIONS.
(a) Authorization of Appropriations.--To carry out this
subtitle, there are authorized to be appropriated $20,000,000
for each of the fiscal years 2009 through 2013.
(b) Allocation of Funds.--
(1) In general.--The Foundation may allocate or
transfer to any agency of the United States Government
any of the funds available for carrying out this
subtitle. Such funds shall be available for obligation
and expenditure for the purposes for which the funds
were authorized, in accordance with authority granted
in this subtitle or under authority governing the
activities of the United States Government agency to
which such funds are allocated or transferred.
(2) Notification.--The Foundation shall notify the
appropriate congressional committees not less than 15
days prior to an allocation or transfer of funds
pursuant to paragraph (1).
Subtitle C--Miscellaneous Provisions
SEC. 931. ENERGY DIPLOMACY AND SECURITY WITHIN THE DEPARTMENT OF STATE.
(a) State Department Coordinator for International Energy
Affairs.--
(1) In general.--The Secretary of State should ensure
that energy security is integrated into the core
mission of the Department of State.
(2) Coordinator for international energy affairs.--
There is established within the Office of the Secretary
of State a Coordinator for International Energy
Affairs, who shall be responsible for--
(A) representing the Secretary of State in
interagency efforts to develop the
international energy policy of the United
States;
(B) ensuring that analyses of the national
security implications of global energy and
environmental developments are reflected in the
decision making process within the Department
of State;
(C) incorporating energy security priorities
into the activities of the Department of State;
(D) coordinating energy activities of the
Department of State with relevant Federal
agencies; and
(E) coordinating energy security and other
relevant functions within the Department of
State currently undertaken by offices within--
(i) the Bureau of Economic, Energy
and Business Affairs;
(ii) the Bureau of Oceans and
International Environmental and
Scientific Affairs; and
(iii) other offices within the
Department of State.
(3) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be
necessary to carry out this subsection.
(b) Energy Experts in Key Embassies.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of
State shall submit a report to the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs of
the House of Representatives that includes--
(1) a description of the Department of State
personnel who are dedicated to energy matters and are
stationed at embassies and consulates in countries that
are major energy producers or consumers;
(2) an analysis of the need for Federal energy
specialist personnel in United States embassies and
other United States diplomatic missions; and
(3) recommendations for increasing energy expertise
within United States embassies among foreign service
officers and options for assigning to such embassies
energy attaches from the National Laboratories or other
agencies within the Department of Energy.
(c) Energy Advisors.--The Secretary of Energy may make
appropriate arrangements with the Secretary of State to assign
personnel from the Department of Energy or the National
Laboratories of the Department of Energy to serve as dedicated
advisors on energy matters in embassies of the United States or
other United States diplomatic missions.
(d) Report.--Not later than 180 days after the date of the
enactment of this Act, and every 2 years thereafter for the
following 20 years, the Secretary of State shall submit a
report to the Committee on Foreign Relations of the Senate and
the Committee on Foreign Affairs of the House of
Representatives that describes--
(1) the energy-related activities being conducted by
the Department of State, including activities within--
(A) the Bureau of Economic, Energy and
Business Affairs;
(B) the Bureau of Oceans and Environmental
and Scientific Affairs; and
(C) other offices within the Department of
State;
(2) the amount of funds spent on each activity within
each office described in paragraph (1); and
(3) the number and qualification of personnel in each
embassy (or relevant foreign posting) of the United
States whose work is dedicated exclusively to energy
matters.
SEC. 932. NATIONAL SECURITY COUNCIL REORGANIZATION.
Section 101(a) of the National Security Act of 1947 (50
U.S.C. 402(a)) is amended--
(1) by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) the Secretary of Energy;''.
SEC. 933. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT.
(a) Reports.--
(1) In general.--Subject to paragraph (2), on the
date on which the President submits to Congress the
budget for the following fiscal year under section 1105
of title 31, United States Code, the President shall
submit to Congress a comprehensive report on the
national energy security of the United States.
(2) New presidents.--In addition to the reports
required under paragraph (1), the President shall
submit a comprehensive report on the national energy
security of the United States by not later than 150
days after the date on which the President assumes the
office of President after a presidential election.
(b) Contents.--Each report under this section shall describe
the national energy security strategy of the United States,
including a comprehensive description of--
(1) the worldwide interests, goals, and objectives of
the United States that are vital to the national energy
security of the United States;
(2) the foreign policy, worldwide commitments, and
national defense capabilities of the United States
necessary--
(A) to deter political manipulation of world
energy resources; and
(B) to implement the national energy security
strategy of the United States;
(3) the proposed short-term and long-term uses of the
political, economic, military, and other authorities of
the United States--
(A) to protect or promote energy security;
and
(B) to achieve the goals and objectives
described in paragraph (1);
(4) the adequacy of the capabilities of the United
States to protect the national energy security of the
United States, including an evaluation of the balance
among the capabilities of all elements of the national
authority of the United States to support the
implementation of the national energy security
strategy; and
(5) such other information as the President
determines to be necessary to inform Congress on
matters relating to the national energy security of the
United States.
(c) Classified and Unclassified Form.--Each national energy
security strategy report shall be submitted to Congress in--
(1) a classified form; and
(2) an unclassified form.
SEC. 934. CONVENTION ON SUPPLEMENTARY COMPENSATION FOR NUCLEAR DAMAGE
CONTINGENT COST ALLOCATION.
(a) Findings and Purpose.--
(1) Findings.--Congress finds that--
(A) section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210) (commonly known as the
``Price-Anderson Act'')--
(i) provides a predictable legal
framework necessary for nuclear
projects; and
(ii) ensures prompt and equitable
compensation in the event of a nuclear
incident in the United States;
(B) the Price-Anderson Act, in effect,
provides operators of nuclear powerplants with
insurance for damage arising out of a nuclear
incident and funds the insurance primarily
through the assessment of a retrospective
premium from each operator after the occurrence
of a nuclear incident;
(C) the Convention on Supplementary
Compensation for Nuclear Damage, done at Vienna
on September 12, 1997, will establish a global
system--
(i) to provide a predictable legal
framework necessary for nuclear energy
projects; and
(ii) to ensure prompt and equitable
compensation in the event of a nuclear
incident;
(D) the Convention benefits United States
nuclear suppliers that face potentially
unlimited liability for nuclear incidents that
are not covered by the Price-Anderson Act by
replacing a potentially open-ended liability
with a predictable liability regime that, in
effect, provides nuclear suppliers with
insurance for damage arising out of such an
incident;
(E) the Convention also benefits United
States nuclear facility operators that may be
publicly liable for a Price-Anderson incident
by providing an additional early source of
funds to compensate damage arising out of the
Price-Anderson incident;
(F) the combined operation of the Convention,
the Price-Anderson Act, and this section will
augment the quantity of assured funds available
for victims in a wider variety of nuclear
incidents while reducing the potential
liability of United States suppliers without
increasing potential costs to United States
operators;
(G) the cost of those benefits is the
obligation of the United States to contribute
to the supplementary compensation fund
established by the Convention;
(H) any such contribution should be funded in
a manner that does not--
(i) upset settled expectations based
on the liability regime established
under the Price-Anderson Act; or
(ii) shift to Federal taxpayers
liability risks for nuclear incidents
at foreign installations;
(I) with respect to a Price-Anderson
incident, funds already available under the
Price-Anderson Act should be used; and
(J) with respect to a nuclear incident
outside the United States not covered by the
Price-Anderson Act, a retrospective premium
should be prorated among nuclear suppliers
relieved from potential liability for which
insurance is not available.
(2) Purpose.--The purpose of this section is to
allocate the contingent costs associated with
participation by the United States in the international
nuclear liability compensation system established by
the Convention on Supplementary Compensation for
Nuclear Damage, done at Vienna on September 12, 1997--
(A) with respect to a Price-Anderson
incident, by using funds made available under
section 170 of the Atomic Energy Act of 1954
(42 U.S.C. 2210) to cover the contingent costs
in a manner that neither increases the burdens
nor decreases the benefits under section 170 of
that Act; and
(B) with respect to a covered incident
outside the United States that is not a Price-
Anderson incident, by allocating the contingent
costs equitably, on the basis of risk, among
the class of nuclear suppliers relieved by the
Convention from the risk of potential liability
resulting from any covered incident outside the
United States.
(b) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the
Nuclear Regulatory Commission.
(2) Contingent cost.--The term ``contingent cost''
means the cost to the United States in the event of a
covered incident the amount of which is equal to the
amount of funds the United States is obligated to make
available under paragraph 1(b) of Article III of the
Convention.
(3) Convention.--The term ``Convention'' means the
Convention on Supplementary Compensation for Nuclear
Damage, done at Vienna on September 12, 1997.
(4) Covered incident.--The term ``covered incident''
means a nuclear incident the occurrence of which
results in a request for funds pursuant to Article VII
of the Convention.
(5) Covered installation.--The term ``covered
installation'' means a nuclear installation at which
the occurrence of a nuclear incident could result in a
request for funds under Article VII of the Convention.
(6) Covered person.--
(A) In general.--The term ``covered person''
means--
(i) a United States person; and
(ii) an individual or entity
(including an agency or instrumentality
of a foreign country) that--
(I) is located in the United
States; or
(II) carries out an activity
in the United States.
(B) Exclusions.--The term ``covered person''
does not include--
(i) the United States; or
(ii) any agency or instrumentality of
the United States.
(7) Nuclear supplier.--The term ``nuclear supplier''
means a covered person (or a successor in interest of a
covered person) that--
(A) supplies facilities, equipment, fuel,
services, or technology pertaining to the
design, construction, operation, or
decommissioning of a covered installation; or
(B) transports nuclear materials that could
result in a covered incident.
(8) Price-anderson incident.--The term ``Price-
Anderson incident'' means a covered incident for which
section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) would make funds available to compensate for
public liability (as defined in section 11 of that Act
(42 U.S.C. 2014)).
(9) Secretary.--The term ``Secretary'' means the
Secretary of Energy.
(10) United states.--
(A) In general.--The term ``United States''
has the meaning given the term in section 11 of
the Atomic Energy Act of 1954 (42 U.S.C. 2014).
(B) Inclusions.--The term ``United States''
includes--
(i) the Commonwealth of Puerto Rico;
(ii) any other territory or
possession of the United States;
(iii) the Canal Zone; and
(iv) the waters of the United States
territorial sea under Presidential
Proclamation Number 5928, dated
December 27, 1988 (43 U.S.C. 1331
note).
(11) United states person.--The term ``United States
person'' means--
(A) any individual who is a resident,
national, or citizen of the United States
(other than an individual residing outside of
the United States and employed by a person who
is not a United States person); and
(B) any corporation, partnership,
association, joint stock company, business
trust, unincorporated organization, or sole
proprietorship that is organized under the laws
of the United States.
(c) Use of Price-Anderson Funds.--
(1) In general.--Funds made available under section
170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210)
shall be used to cover the contingent cost resulting
from any Price-Anderson incident.
(2) Effect.--The use of funds pursuant to paragraph
(1) shall not reduce the limitation on public liability
established under section 170 e. of the Atomic Energy
Act of 1954 (42 U.S.C. 2210(e)).
(d) Effect on Amount of Public Liability.--
(1) In general.--Funds made available to the United
States under Article VII of the Convention with respect
to a Price-Anderson incident shall be used to satisfy
public liability resulting from the Price-Anderson
incident.
(2) Amount.--The amount of public liability allowable
under section 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) relating to a Price-Anderson incident
under paragraph (1) shall be increased by an amount
equal to the difference between--
(A) the amount of funds made available for
the Price-Anderson incident under Article VII
of the Convention; and
(B) the amount of funds used under subsection
(c) to cover the contingent cost resulting from
the Price-Anderson incident.
(e) Retrospective Risk Pooling Program.--
(1) In general.--Except as provided under paragraph
(2), each nuclear supplier shall participate in a
retrospective risk pooling program in accordance with
this section to cover the contingent cost resulting
from a covered incident outside the United States that
is not a Price-Anderson incident.
(2) Deferred payment.--
(A) In general.--The obligation of a nuclear
supplier to participate in the retrospective
risk pooling program shall be deferred until
the United States is called on to provide funds
pursuant to Article VII of the Convention with
respect to a covered incident that is not a
Price-Anderson incident.
(B) Amount of deferred payment.--The amount
of a deferred payment of a nuclear supplier
under subparagraph (A) shall be based on the
risk-informed assessment formula determined
under subparagraph (C).
(C) Risk-informed assessment formula.--
(i) In general.--Not later than 3
years after the date of the enactment
of this Act, and every 5 years
thereafter, the Secretary shall, by
regulation, determine the risk-informed
assessment formula for the allocation
among nuclear suppliers of the
contingent cost resulting from a
covered incident that is not a Price-
Anderson incident, taking into account
risk factors such as--
(I) the nature and intended
purpose of the goods and
services supplied by each
nuclear supplier to each
covered installation outside
the United States;
(II) the quantity of the
goods and services supplied by
each nuclear supplier to each
covered installation outside
the United States;
(III) the hazards associated
with the supplied goods and
services if the goods and
services fail to achieve the
intended purposes;
(IV) the hazards associated
with the covered installation
outside the United States to
which the goods and services
are supplied;
(V) the legal, regulatory,
and financial infrastructure
associated with the covered
installation outside the United
States to which the goods and
services are supplied; and
(VI) the hazards associated
with particular forms of
transportation.
(ii) Factors for consideration.--In
determining the formula, the Secretary
may--
(I) exclude--
(aa) goods and
services with
negligible risk;
(bb) classes of goods
and services not
intended specifically
for use in a nuclear
installation;
(cc) a nuclear
supplier with a de
minimis share of the
contingent cost; and
(dd) a nuclear
supplier no longer in
existence for which
there is no
identifiable successor;
and
(II) establish the period on
which the risk assessment is
based.
(iii) Application.--In applying the
formula, the Secretary shall not
consider any covered installation or
transportation for which funds would be
available under section 170 of the
Atomic Energy Act of 1954 (42 U.S.C.
2210).
(iv) Report.--Not later than 5 years
after the date of the enactment of this
Act, and every 5 years thereafter, the
Secretary shall submit to the Committee
on Environment and Public Works of the
Senate and the Committee on Energy and
Commerce of the House of
Representatives a report on whether
there is a need for continuation or
amendment of this section, taking into
account the effects of the
implementation of the Convention on the
United States nuclear industry and
suppliers.
(f) Reporting.--
(1) Collection of information.--
(A) In general.--The Secretary may collect
information necessary for developing and
implementing the formula for calculating the
deferred payment of a nuclear supplier under
subsection (e)(2).
(B) Provision of information.--Each nuclear
supplier and other appropriate persons shall
make available to the Secretary such
information, reports, records, documents, and
other data as the Secretary determines, by
regulation, to be necessary or appropriate to
develop and implement the formula under
subsection (e)(2)(C).
(2) Private insurance.--The Secretary shall make
available to nuclear suppliers, and insurers of nuclear
suppliers, information to support the voluntary
establishment and maintenance of private insurance
against any risk for which nuclear suppliers may be
required to pay deferred payments under this section.
(g) Effect on Liability.--Nothing in any other law (including
regulations) limits liability for a covered incident to an
amount equal to less than the amount prescribed in paragraph
1(a) of Article IV of the Convention, unless the law--
(1) specifically refers to this section; and
(2) explicitly repeals, alters, amends, modifies,
impairs, displaces, or supersedes the effect of this
subsection.
(h) Payments to and by the United States.--
(1) Action by nuclear suppliers.--
(A) Notification.--In the case of a request
for funds under Article VII of the Convention
resulting from a covered incident that is not a
Price-Anderson incident, the Secretary shall
notify each nuclear supplier of the amount of
the deferred payment required to be made by the
nuclear supplier.
(B) Payments.--
(i) In general.--Except as provided
under clause (ii), not later than 60
days after receipt of a notification
under subparagraph (A), a nuclear
supplier shall pay to the general fund
of the Treasury the deferred payment of
the nuclear supplier required under
subparagraph (A).
(ii) Annual payments.--A nuclear
supplier may elect to prorate payment
of the deferred payment required under
subparagraph (A) in 5 equal annual
payments (including interest on the
unpaid balance at the prime rate
prevailing at the time the first
payment is due).
(C) Vouchers.--A nuclear supplier shall
submit payment certification vouchers to the
Secretary of the Treasury in accordance with
section 3325 of title 31, United States Code.
(2) Use of funds.--
(A) In general.--Amounts paid into the
Treasury under paragraph (1) shall be available
to the Secretary of the Treasury, without
further appropriation and without fiscal year
limitation, for the purpose of making the
contributions of public funds required to be
made by the United States under the Convention.
(B) Action by secretary of treasury.--The
Secretary of the Treasury shall pay the
contribution required under the Convention to
the court of competent jurisdiction under
Article XIII of the Convention with respect to
the applicable covered incident.
(3) Failure to pay.--If a nuclear supplier fails to
make a payment required under this subsection, the
Secretary may take appropriate action to recover from
the nuclear supplier--
(A) the amount of the payment due from the
nuclear supplier;
(B) any applicable interest on the payment;
and
(C) a penalty of not more than twice the
amount of the deferred payment due from the
nuclear supplier.
(i) Limitation on Judicial Review; Cause of Action.--
(1) Limitation on judicial review.--
(A) In general.--In any civil action arising
under the Convention over which Article XIII of
the Convention grants jurisdiction to the
courts of the United States, any appeal or
review by writ of mandamus or otherwise with
respect to a nuclear incident that is not a
Price-Anderson incident shall be in accordance
with chapter 83 of title 28, United States
Code, except that the appeal or review shall
occur in the United States Court of Appeals for
the District of Columbia Circuit.
(B) Supreme court jurisdiction.--Nothing in
this paragraph affects the jurisdiction of the
Supreme Court of the United States under
chapter 81 of title 28, United States Code.
(2) Cause of action.--
(A) In general.--Subject to subparagraph (B),
in any civil action arising under the
Convention over which Article XIII of the
Convention grants jurisdiction to the courts of
the United States, in addition to any other
cause of action that may exist, an individual
or entity shall have a cause of action against
the operator to recover for nuclear damage
suffered by the individual or entity.
(B) Requirement.--Subparagraph (A) shall
apply only if the individual or entity seeks a
remedy for nuclear damage (as defined in
Article I of the Convention) that was caused by
a nuclear incident (as defined in Article I of
the Convention) that is not a Price-Anderson
incident.
(C) Savings provision.--Nothing in this
paragraph may be construed to limit, modify,
extinguish, or otherwise affect any cause of
action that would have existed in the absence
of enactment of this paragraph.
(j) Right of Recourse.--This section does not provide to an
operator of a covered installation any right of recourse under
the Convention.
(k) Protection of Sensitive United States Information.--
Nothing in the Convention or this section requires the
disclosure of--
(1) any data that, at any time, was Restricted Data
(as defined in section 11 of the Atomic Energy Act of
1954 (42 U.S.C. 2014));
(2) information relating to intelligence sources or
methods protected by section 102A(i) of the National
Security Act of 1947 (50 U.S.C. 403-1(i)); or
(3) national security information classified under
Executive Order 12958 (50 U.S.C. 435 note; relating to
classified national security information) (or a
successor Executive Order or regulation).
(l) Regulations.--
(1) In general.--The Secretary or the Commission, as
appropriate, may prescribe regulations to carry out
section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) and this section.
(2) Requirement.--Rules prescribed under this
subsection shall ensure, to the maximum extent
practicable, that--
(A) the implementation of section 170 of the
Atomic Energy Act of 1954 (42 U.S.C. 2210) and
this section is consistent and equitable; and
(B) the financial and operational burden on a
Commission licensee in complying with section
170 of that Act is not greater as a result of
the enactment of this section.
(3) Applicability of provision.--Section 553 of title
5, United States Code, shall apply with respect to the
promulgation of regulations under this subsection.
(4) Effect of subsection.--The authority provided
under this subsection is in addition to, and does not
impair or otherwise affect, any other authority of the
Secretary or the Commission to prescribe regulations.
(m) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 935. TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE PAYMENTS.
(a) Purpose.--The purpose of this section is to--
(1) ensure greater United States energy security by
combating corruption in the governments of foreign
countries that receive revenues from the sale of their
natural resources; and
(2) enhance the development of democracy and increase
political and economic stability in such resource rich
foreign countries.
(b) Statement of Policy.--It is the policy of the United
States--
(1) to increase energy security by promoting anti-
corruption initiatives in oil and natural gas rich
countries; and
(2) to promote global energy security through
promotion of programs such as the Extractive Industries
Transparency Initiative (EITI) that seek to instill
transparency and accountability into extractive
industries resource payments.
(c) Sense of Congress.--It is the sense of Congress that the
United States should further global energy security and promote
democratic development in resource-rich foreign countries by--
(1) encouraging further participation in the EITI by
eligible countries and companies; and
(2) promoting the efficacy of the EITI program by
ensuring a robust and candid review mechanism.
(d) Report.--
(1) Report required.--Not later than 180 days after
the date of the enactment of this Act, and annually
thereafter, the Secretary of State, in consultation
with the Secretary of Energy, shall submit to the
appropriate congressional committees a report on
progress made in promoting transparency in extractive
industries resource payments.
(2) Matters to be included.--The report required by
paragraph (1) shall include a detailed description of
United States participation in the EITI, bilateral and
multilateral diplomatic efforts to further
participation in the EITI, and other United States
initiatives to strengthen energy security, deter energy
kleptocracy, and promote transparency in the extractive
industries.
(e) Authorization of Appropriations.--There is authorized to
be appropriated $3,000,000 for the purposes of United States
contributions to the Multi-Donor Trust Fund of the EITI.
TITLE X--GREEN JOBS
SEC. 1001. SHORT TITLE.
This title may be cited as the ``Green Jobs Act of 2007''.
SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER TRAINING
PROGRAM.
Section 171 of the Workforce Investment Act of 1998 (29
U.S.C. 2916) is amended by adding at the end the following:
``(e) Energy Efficiency and Renewable Energy Worker Training
Program.--
``(1) Grant program.--
``(A) In general.--Not later than 6 months
after the date of enactment of the Green Jobs
Act of 2007, the Secretary, in consultation
with the Secretary of Energy, shall establish
an energy efficiency and renewable energy
worker training program under which the
Secretary shall carry out the activities
described in paragraph (2) to achieve the
purposes of this subsection.
``(B) Eligibility.--For purposes of providing
assistance and services under the program
established under this subsection--
``(i) target populations of eligible
individuals to be given priority for
training and other services shall
include--
``(I) workers impacted by
national energy and
environmental policy;
``(II) individuals in need of
updated training related to the
energy efficiency and renewable
energy industries;
``(III) veterans, or past and
present members of reserve
components of the Armed Forces;
``(IV) unemployed
individuals;
``(V) individuals, including
at-risk youth, seeking
employment pathways out of
poverty and into economic self-
sufficiency; and
``(VI) formerly incarcerated,
adjudicated, nonviolent
offenders; and
``(ii) energy efficiency and
renewable energy industries eligible to
participate in a program under this
subsection include--
``(I) the energy-efficient
building, construction, and
retrofits industries;
``(II) the renewable electric
power industry;
``(III) the energy efficient
and advanced drive train
vehicle industry;
``(IV) the biofuels industry;
``(V) the deconstruction and
materials use industries;
``(VI) the energy efficiency
assessment industry serving the
residential, commercial, or
industrial sectors; and
``(VII) manufacturers that
produce sustainable products
using environmentally
sustainable processes and
materials.
``(2) Activities.--
``(A) National research program.--Under the
program established under paragraph (1), the
Secretary, acting through the Bureau of Labor
Statistics, where appropriate, shall collect
and analyze labor market data to track
workforce trends resulting from energy-related
initiatives carried out under this subsection.
Activities carried out under this paragraph
shall include--
``(i) tracking and documentation of
academic and occupational competencies
as well as future skill needs with
respect to renewable energy and energy
efficiency technology;
``(ii) tracking and documentation of
occupational information and workforce
training data with respect to renewable
energy and energy efficiency
technology;
``(iii) collaborating with State
agencies, workforce investments boards,
industry, organized labor, and
community and nonprofit organizations
to disseminate information on
successful innovations for labor market
services and worker training with
respect to renewable energy and energy
efficiency technology;
``(iv) serving as a clearinghouse for
best practices in workforce
development, job placement, and
collaborative training partnerships;
``(v) encouraging the establishment
of workforce training initiatives with
respect to renewable energy and energy
efficiency technologies;
``(vi) linking research and
development in renewable energy and
energy efficiency technology with the
development of standards and curricula
for current and future jobs;
``(vii) assessing new employment and
work practices including career ladder
and upgrade training as well as high
performance work systems; and
``(viii) providing technical
assistance and capacity building to
national and State energy partnerships,
including industry and labor
representatives.
``(B) National energy training partnership
grants.--
``(i) In general.--Under the program
established under paragraph (1), the
Secretary shall award National Energy
Training Partnerships Grants on a
competitive basis to eligible entities
to enable such entities to carry out
training that leads to economic self-
sufficiency and to develop an energy
efficiency and renewable energy
industries workforce. Grants shall be
awarded under this subparagraph so as
to ensure geographic diversity with at
least 2 grants awarded to entities
located in each of the 4 Petroleum
Administration for Defense Districts
with no subdistricts, and at least 1
grant awarded to an entity located in
each of the subdistricts of the
Petroleum Administration for Defense
District with subdistricts.
``(ii) Eligibility.--To be eligible
to receive a grant under clause (i), an
entity shall be a nonprofit partnership
that--
``(I) includes the equal
participation of industry,
including public or private
employers, and labor
organizations, including joint
labor-management training
programs, and may include
workforce investment boards,
community-based organizations,
qualified service and
conservation corps, educational
institutions, small businesses,
cooperatives, State and local
veterans agencies, and veterans
service organizations; and
``(II) demonstrates--
``(aa) experience in
implementing and
operating worker skills
training and education
programs;
``(bb) the ability to
identify and involve in
training programs
carried out under this
grant, target
populations of
individuals who would
benefit from training
and be actively
involved in activities
related to energy
efficiency and
renewable energy
industries; and
``(cc) the ability to
help individuals
achieve economic self-
sufficiency.
``(iii) Priority.--Priority shall be
given to partnerships which leverage
additional public and private resources
to fund training programs, including
cash or in-kind matches from
participating employers.
``(C) State labor market research,
information, and labor exchange research
program.--
``(i) In general.--Under the program
established under paragraph (1), the
Secretary shall award competitive
grants to States to enable such States
to administer labor market and labor
exchange information programs that
include the implementation of the
activities described in clause (ii), in
coordination with the one-stop delivery
system.
``(ii) Activities.--A State shall use
amounts awarded under a grant under
this subparagraph to provide funding to
the State agency that administers the
Wagner-Peyser Act and State
unemployment compensation programs to
carry out the following activities
using State agency merit staff:
``(I) The identification of
job openings in the renewable
energy and energy efficiency
sector.
``(II) The administration of
skill and aptitude testing and
assessment for workers.
``(III) The counseling, case
management, and referral of
qualified job seekers to
openings and training programs,
including energy efficiency and
renewable energy training
programs.
``(D) State energy training partnership
program.--
``(i) In general.--Under the program
established under paragraph (1), the
Secretary shall award competitive
grants to States to enable such States
to administer renewable energy and
energy efficiency workforce development
programs that include the
implementation of the activities
described in clause (ii).
``(ii) Partnerships.--A State shall
use amounts awarded under a grant under
this subparagraph to award competitive
grants to eligible State Energy Sector
Partnerships to enable such
Partnerships to coordinate with
existing apprenticeship and labor
management training programs and
implement training programs that lead
to the economic self-sufficiency of
trainees.
``(iii) Eligibility.--To be eligible
to receive a grant under this
subparagraph, a State Energy Sector
Partnership shall--
``(I) consist of nonprofit
organizations that include
equal participation from
industry, including public or
private nonprofit employers,
and labor organizations,
including joint labor-
management training programs,
and may include representatives
from local governments, the
workforce investment system,
including one-stop career
centers, community based
organizations, qualified
service and conservation corps,
community colleges, and other
post-secondary institutions,
small businesses, cooperatives,
State and local veterans
agencies, and veterans service
organizations;
``(II) demonstrate experience
in implementing and operating
worker skills training and
education programs; and
``(III) demonstrate the
ability to identify and involve
in training programs, target
populations of workers who
would benefit from training and
be actively involved in
activities related to energy
efficiency and renewable energy
industries.
``(iv) Priority.--In awarding grants
under this subparagraph, the Secretary
shall give priority to States that
demonstrate that activities under the
grant--
``(I) meet national energy
policies associated with energy
efficiency, renewable energy,
and the reduction of emissions
of greenhouse gases;
``(II) meet State energy
policies associated with energy
efficiency, renewable energy,
and the reduction of emissions
of greenhouse gases; and
``(III) leverage additional
public and private resources to
fund training programs,
including cash or in-kind
matches from participating
employers.
``(v) Coordination.--A grantee under
this subparagraph shall coordinate
activities carried out under the grant
with existing other appropriate
training programs, including
apprenticeship and labor management
training programs, including such
activities referenced in paragraph
(3)(A), and implement training programs
that lead to the economic self-
sufficiency of trainees.
``(E) Pathways out of poverty demonstration
program.--
``(i) In general.--Under the program
established under paragraph (1), the
Secretary shall award competitive
grants of sufficient size to eligible
entities to enable such entities to
carry out training that leads to
economic self-sufficiency. The
Secretary shall give priority to
entities that serve individuals in
families with income of less than 200
percent of the sufficiency standard for
the local areas where the training is
conducted that specifies, as defined by
the State, or where such standard is
not established, the income needs of
families, by family size, the number
and ages of children in the family, and
sub-State geographical considerations.
Grants shall be awards to ensure
geographic diversity.
``(ii) Eligible entities.--To be
eligible to receive a grant an entity
shall be a partnership that--
``(I) includes community-
based nonprofit organizations,
educational institutions with
expertise in serving low-income
adults or youth, public or
private employers from the
industry sectors described in
paragraph (1)(B)(ii), and labor
organizations representing
workers in such industry
sectors;
``(II) demonstrates a record
of successful experience in
implementing and operating
worker skills training and
education programs;
``(III) coordinates
activities, where appropriate,
with the workforce investment
system; and
``(IV) demonstrates the
ability to recruit individuals
for training and to support
such individuals to successful
completion in training programs
carried out under this grant,
targeting populations of
workers who are or will be
engaged in activities related
to energy efficiency and
renewable energy industries.
``(iii) Priorities.--In awarding
grants under this paragraph, the
Secretary shall give priority to
applicants that--
``(I) target programs to
benefit low-income workers,
unemployed youth and adults,
high school dropouts, or other
underserved sectors of the
workforce within areas of high
poverty;
``(II) ensure that supportive
services are integrated with
education and training, and
delivered by organizations with
direct access to and experience
with targeted populations;
``(III) leverage additional
public and private resources to
fund training programs,
including cash or in-kind
matches from participating
employers;
``(IV) involve employers and
labor organizations in the
determination of relevant
skills and competencies and
ensure that the certificates or
credentials that result from
the training are employer-
recognized;
``(V) deliver courses at
alternative times (such as
evening and weekend programs)
and locations most convenient
and accessible to participants
and link adult remedial
education with occupational
skills training; and
``(VI) demonstrate
substantial experience in
administering local, municipal,
State, Federal, foundation, or
private entity grants.
``(iv) Data collection.--Grantees
shall collect and report the following
information:
``(I) The number of
participants.
``(II) The demographic
characteristics of
participants, including race,
gender, age, parenting status,
participation in other Federal
programs, education and
literacy level at entry,
significant barriers to
employment (such as limited
English proficiency, criminal
record, addiction or mental
health problem requiring
treatment, or mental
disability).
``(III) The services received
by participants, including
training, education, and
supportive services.
``(IV) The amount of program
spending per participant.
``(V) Program completion
rates.
``(VI) Factors determined as
significantly interfering with
program participation or
completion.
``(VII) The rate of Job
placement and the rate of
employment retention after 1
year.
``(VIII) The average wage at
placement, including any
benefits, and the rate of
average wage increase after 1
year.
``(IX) Any post-employment
supportive services provided.
The Secretary shall assist grantees in
the collection of data under this
clause by making available, where
practicable, low-cost means of tracking
the labor market outcomes of
participants, and by providing
standardized reporting forms, where
appropriate.
``(3) Activities.--
``(A) In general.--Activities to be carried
out under a program authorized by subparagraph
(B), (D), or (E) of paragraph (2) shall be
coordinated with existing systems or providers,
as appropriate. Such activities may include--
``(i) occupational skills training,
including curriculum development, on-
the-job training, and classroom
training;
``(ii) safety and health training;
``(iii) the provision of basic
skills, literacy, GED, English as a
second language, and job readiness
training;
``(iv) individual referral and
tuition assistance for a community
college training program, or any
training program leading to an
industry-recognized certificate;
``(v) internship programs in fields
related to energy efficiency and
renewable energy;
``(vi) customized training in
conjunction with an existing registered
apprenticeship program or labor-
management partnership;
``(vii) incumbent worker and career
ladder training and skill upgrading and
retraining;
``(viii) the implementation of
transitional jobs strategies; and
``(ix) the provision of supportive
services.
``(B) Outreach activities.--In addition to
the activities authorized under subparagraph
(A), activities authorized for programs under
subparagraph (E) of paragraph (2) may include
the provision of outreach, recruitment, career
guidance, and case management services.
``(4) Worker protections and nondiscrimination
requirements.--
``(A) Application of wia.--The provisions of
sections 181 and 188 of the Workforce
Investment Act of 1998 (29 U.S.C. 2931 and
2938) shall apply to all programs carried out
with assistance under this subsection.
``(B) Consultation with labor
organizations.--If a labor organization
represents a substantial number of workers who
are engaged in similar work or training in an
area that is the same as the area that is
proposed to be funded under this Act, the labor
organization shall be provided an opportunity
to be consulted and to submit comments in
regard to such a proposal.
``(5) Performance measures.--
``(A) In general.--The Secretary shall
negotiate and reach agreement with the eligible
entities that receive grants and assistance
under this section on performance measures for
the indicators of performance referred to in
subparagraphs (A) and (B) of section 136(b)(2)
that will be used to evaluate the performance
of the eligible entity in carrying out the
activities described in subsection (e)(2). Each
performance measure shall consist of such an
indicator of performance, and a performance
level referred to in subparagraph (B).
``(B) Performance levels.--The Secretary
shall negotiate and reach agreement with the
eligible entity regarding the levels of
performance expected to be achieved by the
eligible entity on the indicators of
performance.
``(6) Report.--
``(A) Status report.--Not later than 18
months after the date of enactment of the Green
Jobs Act of 2007, the Secretary shall transmit
a report to the Senate Committee on Energy and
Natural Resources, the Senate Committee on
Health, Education, Labor, and Pensions, the
House Committee on Education and Labor, and the
House Committee on Energy and Commerce on the
training program established by this
subsection. The report shall include a
description of the entities receiving funding
and the activities carried out by such
entities.
``(B) Evaluation.--Not later than 3 years
after the date of enactment of such Act, the
Secretary shall transmit to the Senate
Committee on Energy and Natural Resources, the
Senate Committee on Health, Education, Labor,
and Pensions, the House Committee on Education
and Labor, and the House Committee on Energy
and Commerce an assessment of such program and
an evaluation of the activities carried out by
entities receiving funding from such program.
``(7) Definition.--As used in this subsection, the
term `renewable energy' has the meaning given such term
in section 203(b)(2) of the Energy Policy Act of 2005
(Public Law 109-58).
``(8) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection, $125,000,000 for each fiscal years, of
which--
``(A) not to exceed 20 percent of the amount
appropriated in each such fiscal year shall be
made available for, and shall be equally
divided between, national labor market research
and information under paragraph (2)(A) and
State labor market information and labor
exchange research under paragraph (2)(C), and
not more than 2 percent of such amount shall be
for the evaluation and report required under
paragraph (4);
``(B) 20 percent shall be dedicated to
Pathways Out of Poverty Demonstration Programs
under paragraph (2)(E); and
``(C) the remainder shall be divided equally
between National Energy Partnership Training
Grants under paragraph (2)(B) and State energy
training partnership grants under paragraph
(2)(D).''.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A--Department of Transportation
SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRONMENT.
(a) In General.--Section 102 of title 49, United States Code,
is amended--
(1) by redesignating subsection (g) as subsection
(h); and
(2) by inserting after subsection (f) the following:
``(g) Office of Climate Change and Environment.--
``(1) Establishment.--There is established in the
Department an Office of Climate Change and Environment
to plan, coordinate, and implement--
``(A) department-wide research, strategies,
and actions under the Department's statutory
authority to reduce transportation-related
energy use and mitigate the effects of climate
change; and
``(B) department-wide research strategies and
actions to address the impacts of climate
change on transportation systems and
infrastructure.
``(2) Clearinghouse.--The Office shall establish a
clearinghouse of solutions, including cost-effective
congestion reduction approaches, to reduce air
pollution and transportation-related energy use and
mitigate the effects of climate change.''.
(b) Coordination.--The Office of Climate Change and
Environment of the Department of Transportation shall
coordinate its activities with the United States Global Change
Research Program.
(c) Transportation System's Impact on Climate Change and Fuel
Efficiency.--
(1) Study.--The Office of Climate Change and
Environment, in coordination with the Environmental
Protection Agency and in consultation with the United
States Global Change Research Program, shall conduct a
study to examine the impact of the Nation's
transportation system on climate change and the fuel
efficiency savings and clean air impacts of major
transportation projects, to identify solutions to
reduce air pollution and transportation-related energy
use and mitigate the effects of climate change, and to
examine the potential fuel savings that could result
from changes in the current transportation system and
through the use of intelligent transportation systems
that help businesses and consumers to plan their travel
and avoid delays, including Web-based real-time transit
information systems, congestion information systems,
carpool information systems, parking information
systems, freight route management systems, and traffic
management systems.
(2) Report.--Not later than one year after the date
of enactment of this Act, the Secretary of
Transportation, in coordination with the Administrator
of the Environmental Protection Agency, shall transmit
to the Committee on Transportation and Infrastructure
and the Committee on Energy and Commerce of the House
of Representatives and the Committee on Commerce,
Science, and Transportation and the Committee on
Environment and Public Works of the Senate a report
that contains the results of the study required under
this section.
(d) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary of Transportation for the
Office of Climate Change and Environment to carry out its
duties under section 102(g) of title 49, United States Code (as
amended by this Act), such sums as may be necessary for fiscal
years 2008 through 2011.
Subtitle B--Railroads
SEC. 1111. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT PILOT PROGRAM.
(a) In General.--The Secretary of Transportation, in
consultation with the Administrator of the Environmental
Protection Agency, shall establish and carry out a pilot
program for making grants to railroad carriers (as defined in
section 20102 of title 49, United States Code) and State and
local governments--
(1) for assistance in purchasing hybrid or other
energy-efficient locomotives, including hybrid switch
and generator-set locomotives; and
(2) to demonstrate the extent to which such
locomotives increase fuel economy, reduce emissions,
and lower costs of operation.
(b) Limitation.--Notwithstanding subsection (a), no grant
under this section may be used to fund the costs of emissions
reductions that are mandated under Federal law.
(c) Grant Criteria.--In selecting applicants for grants under
this section, the Secretary of Transportation shall consider--
(1) the level of energy efficiency that would be
achieved by the proposed project;
(2) the extent to which the proposed project would
assist in commercial deployment of hybrid or other
energy-efficient locomotive technologies;
(3) the extent to which the proposed project
complements other private or governmental partnership
efforts to improve air quality or fuel efficiency in a
particular area; and
(4) the extent to which the applicant demonstrates
innovative strategies and a financial commitment to
increasing energy efficiency and reducing greenhouse
gas emissions of its railroad operations.
(d) Competitive Grant Selection Process.--
(1) Applications.--A railroad carrier or State or
local government seeking a grant under this section
shall submit for approval by the Secretary of
Transportation an application for the grant containing
such information as the Secretary of Transportation may
require.
(2) Competitive selection.--The Secretary of
Transportation shall conduct a national solicitation
for applications for grants under this section and
shall select grantees on a competitive basis.
(e) Federal Share.--The Federal share of the cost of a
project under this section shall not exceed 80 percent of the
project cost.
(f) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary of Transportation shall
submit to Congress a report on the results of the pilot program
carried out under this section.
(g) Authorization of Appropriations.--There is authorized to
be appropriated to the Secretary of Transportation $10,000,000
for each of the fiscal years 2008 through 2011 to carry out
this section. Such funds shall remain available until expended.
SEC. 1112. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS.
(a) Amendment.--Chapter 223 of title 49, United States Code,
is amended to read as follows:
``CHAPTER 223--CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS
``Sec.
``22301. Capital grants for class II and class III railroads.
``Sec. 22301. Capital grants for class II and class III railroads
``(a) Establishment of Program.--
``(1) Establishment.--The Secretary of Transportation
shall establish a program for making capital grants to
class II and class III railroads. Such grants shall be
for projects in the public interest that--
``(A)(i) rehabilitate, preserve, or improve
railroad track (including roadbed, bridges, and
related track structures) used primarily for
freight transportation;
``(ii) facilitate the continued or greater
use of railroad transportation for freight
shipments; and
``(iii) reduce the use of less fuel efficient
modes of transportation in the transportation
of such shipments; and
``(B) demonstrate innovative technologies and
advanced research and development that increase
fuel economy, reduce greenhouse gas emissions,
and lower the costs of operation.
``(2) Provision of grants.--Grants may be provided
under this chapter--
``(A) directly to the class II or class III
railroad; or
``(B) with the concurrence of the class II or
class III railroad, to a State or local
government.
``(3) State cooperation.--Class II and class III
railroad applicants for a grant under this chapter are
encouraged to utilize the expertise and assistance of
State transportation agencies in applying for and
administering such grants. State transportation
agencies are encouraged to provide such expertise and
assistance to such railroads.
``(4) Regulations.--Not later than October 1, 2008,
the Secretary shall issue final regulations to
implement the program under this section.
``(b) Maximum Federal Share.--The maximum Federal share for
carrying out a project under this section shall be 80 percent
of the project cost. The non-Federal share may be provided by
any non-Federal source in cash, equipment, or supplies. Other
in-kind contributions may be approved by the Secretary on a
case-by-case basis consistent with this chapter.
``(c) Use of Funds.--Grants provided under this section shall
be used to implement track capital projects as soon as
possible. In no event shall grant funds be contractually
obligated for a project later than the end of the third Federal
fiscal year following the year in which the grant was awarded.
Any funds not so obligated by the end of such fiscal year shall
be returned to the Secretary for reallocation.
``(d) Employee Protection.--The Secretary shall require as a
condition of any grant made under this section that the
recipient railroad provide a fair arrangement at least as
protective of the interests of employees who are affected by
the project to be funded with the grant as the terms imposed
under section 11326(a), as in effect on the date of the
enactment of this chapter.
``(e) Labor Standards.--
``(1) Prevailing wages.--The Secretary shall ensure
that laborers and mechanics employed by contractors and
subcontractors in construction work financed by a grant
made under this section will be paid wages not less
than those prevailing on similar construction in the
locality, as determined by the Secretary of Labor under
subchapter IV of chapter 31 of title 40 (commonly known
as the `Davis-Bacon Act'). The Secretary shall make a
grant under this section only after being assured that
required labor standards will be maintained on the
construction work.
``(2) Wage rates.--Wage rates in a collective
bargaining agreement negotiated under the Railway Labor
Act (45 U.S.C. 151 et seq.) are deemed for purposes of
this subsection to comply with the subchapter IV of
chapter 31 of title 40.
``(f) Study.--The Secretary shall conduct a study of the
projects carried out with grant assistance under this section
to determine the extent to which the program helps promote a
reduction in fuel use associated with the transportation of
freight and demonstrates innovative technologies that increase
fuel economy, reduce greenhouse gas emissions, and lower the
costs of operation. Not later than March 31, 2009, the
Secretary shall submit a report to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate on the study, including any
recommendations the Secretary considers appropriate regarding
the program.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary $50,000,000 for each of
fiscal years 2008 through 2011 for carrying out this
section.''.
(b) Clerical Amendment.--The item relating to chapter 223 in
the table of chapters of subtitle V of title 49, United States
Code, is amended to read as follows:
``223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS......22301''.
Subtitle C--Marine Transportation
SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE.
(a) In General.--Title 46, United States Code, is amended by
adding after chapter 555 the following:
``CHAPTER 556--SHORT SEA TRANSPORTATION
``Sec. 55601. Short sea transportation program.
``Sec. 55602. Cargo and shippers.
``Sec. 55603. Interagency coordination.
``Sec. 55604. Research on short sea transportation.
``Sec. 55605. Short sea transportation defined.
``Sec. 55601. Short sea transportation program
``(a) Establishment.--The Secretary of Transportation shall
establish a short sea transportation program and designate
short sea transportation projects to be conducted under the
program to mitigate landside congestion.
``(b) Program Elements.--The program shall encourage the use
of short sea transportation through the development and
expansion of--
``(1) documented vessels;
``(2) shipper utilization;
``(3) port and landside infrastructure; and
``(4) marine transportation strategies by State and
local governments.
``(c) Short Sea Transportation Routes.--The Secretary shall
designate short sea transportation routes as extensions of the
surface transportation system to focus public and private
efforts to use the waterways to relieve landside congestion
along coastal corridors. The Secretary may collect and
disseminate data for the designation and delineation of short
sea transportation routes.
``(d) Project Designation.--The Secretary may designate a
project to be a short sea transportation project if the
Secretary determines that the project may--
``(1) offer a waterborne alternative to available
landside transportation services using documented
vessels; and
``(2) provide transportation services for passengers
or freight (or both) that may reduce congestion on
landside infrastructure using documented vessels.
``(e) Elements of Program.--For a short sea transportation
project designated under this section, the Secretary may--
``(1) promote the development of short sea
transportation services;
``(2) coordinate, with ports, State departments of
transportation, localities, other public agencies, and
the private sector and on the development of landside
facilities and infrastructure to support short sea
transportation services; and
``(3) develop performance measures for the short sea
transportation program.
``(f) Multistate, State and Regional Transportation
Planning.--The Secretary, in consultation with Federal entities
and State and local governments, shall develop strategies to
encourage the use of short sea transportation for
transportation of passengers and cargo. The Secretary shall--
``(1) assess the extent to which States and local
governments include short sea transportation and other
marine transportation solutions in their transportation
planning;
``(2) encourage State departments of transportation
to develop strategies, where appropriate, to
incorporate short sea transportation, ferries, and
other marine transportation solutions for regional and
interstate transport of freight and passengers in their
transportation planning; and
``(3) encourage groups of States and multi-State
transportation entities to determine how short sea
transportation can address congestion, bottlenecks, and
other interstate transportation challenges.
``Sec. 55602. Cargo and shippers
``(a) Memorandums of Agreement.--The Secretary of
Transportation shall enter into memorandums of understanding
with the heads of other Federal entities to transport federally
owned or generated cargo using a short sea transportation
project designated under section 55601 when practical or
available.
``(b) Short-Term Incentives.--The Secretary shall consult
shippers and other participants in transportation logistics and
develop proposals for short-term incentives to encourage the
use of short sea transportation.
``Sec. 55603. Interagency coordination
``The Secretary of Transportation shall establish a board to
identify and seek solutions to impediments hindering effective
use of short sea transportation. The board shall include
representatives of the Environmental Protection Agency and
other Federal, State, and local governmental entities and
private sector entities.
``Sec. 55604. Research on short sea transportation
``The Secretary of Transportation, in consultation with the
Administrator of the Environmental Protection Agency, may
conduct research on short sea transportation, regarding--
``(1) the environmental and transportation benefits
to be derived from short sea transportation
alternatives for other forms of transportation;
``(2) technology, vessel design, and other
improvements that would reduce emissions, increase fuel
economy, and lower costs of short sea transportation
and increase the efficiency of intermodal transfers;
and
``(3) solutions to impediments to short sea
transportation projects designated under section 55601.
``Sec. 55605. Short sea transportation defined
``In this chapter, the term `short sea transportation' means
the carriage by vessel of cargo--
``(1) that is--
``(A) contained in intermodal cargo
containers and loaded by crane on the vessel;
or
``(B) loaded on the vessel by means of
wheeled technology; and
``(2) that is--
``(A) loaded at a port in the United States
and unloaded either at another port in the
United States or at a port in Canada located in
the Great Lakes Saint Lawrence Seaway System;
or
``(B) loaded at a port in Canada located in
the Great Lakes Saint Lawrence Seaway System
and unloaded at a port in the United States.''.
(b) Clerical Amendment.--The table of chapters at the
beginning of subtitle V of such title is amended by inserting
after the item relating to chapter 555 the following:
``556. Short Sea Transportation.................................55601''.
(c) Regulations.--
(1) Interim regulations.--Not later than 90 days
after the date of enactment of this Act, the Secretary
of Transportation shall issue temporary regulations to
implement the program under this section. Subchapter II
of chapter 5 of title 5, United States Code, does not
apply to a temporary regulation issued under this
paragraph or to an amendment to such a temporary
regulation.
(2) Final regulations.--Not later than October 1,
2008, the Secretary of Transportation shall issue final
regulations to implement the program under this
section.
SEC. 1122. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL CONSTRUCTION
FUND.
(a) Definition of Qualified Vessel.--Section 53501 of title
46, United States Code, is amended--
(1) in paragraph (5)(A)(iii) by striking ``or
noncontiguous domestic'' and inserting ``noncontiguous
domestic, or short sea transportation trade''; and
(2) by inserting after paragraph (6) the following:
``(7) Short sea transportation trade.--The term
`short sea transportation trade' means the carriage by
vessel of cargo--
``(A) that is--
``(i) contained in intermodal cargo
containers and loaded by crane on the
vessel; or
``(ii) loaded on the vessel by means
of wheeled technology; and
``(B) that is--
``(i) loaded at a port in the United
States and unloaded either at another
port in the United States or at a port
in Canada located in the Great Lakes
Saint Lawrence Seaway System; or
``(ii) loaded at a port in Canada
located in the Great Lakes Saint
Lawrence Seaway System and unloaded at
a port in the United States.''.
(b) Allowable Purpose.--Section 53503(b) of such title is
amended by striking ``or noncontiguous domestic trade'' and
inserting ``noncontiguous domestic, or short sea transportation
trade''.
SEC. 1123. SHORT SEA TRANSPORTATION REPORT.
Not later than one year after the date of enactment of this
Act, the Secretary of Transportation, in consultation with the
Administrator of the Environmental Protection Agency, shall
submit to the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report on the short
sea transportation program established under the amendments
made by section 1121. The report shall include a description of
the activities conducted under the program, and any
recommendations for further legislative or administrative
action that the Secretary of Transportation considers
appropriate.
Subtitle D--Highways
SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.
Section 120(c) of title 23, United States Code, is amended--
(1) in the subsection heading by striking ``for
Certain Safety Projects'';
(2) by striking ``The Federal share'' and inserting
the following:
``(1) Certain safety projects.--The Federal share'';
and
(3) by adding at the end the following:
``(2) CMAQ projects.--The Federal share payable on
account of a project or program carried out under
section 149 with funds obligated in fiscal year 2008 or
2009, or both, shall be not less than 80 percent and,
at the discretion of the State, may be up to 100
percent of the cost thereof.''.
SEC. 1132. DISTRIBUTION OF RESCISSIONS.
(a) In General.--Any unobligated balances of amounts that are
appropriated from the Highway Trust Fund for a fiscal year, and
apportioned under chapter 1 of title 23, United States Code,
before, on, or after the date of enactment of this Act and that
are rescinded in fiscal year 2008 or fiscal year 2009 shall be
distributed by the Secretary of Transportation within each
State (as defined in section 101 of such title) among all
programs for which funds are apportioned under such chapter for
such fiscal year, to the extent sufficient funds remain
available for obligation, in the ratio that the amount of funds
apportioned for each program under such chapter for such fiscal
year, bears to the amount of funds apportioned for all such
programs under such chapter for such fiscal year.
(b) Adjustments.--A State may make adjustments to the
distribution of a rescission within the State for a fiscal year
under subsection (a) by transferring the amounts to be
rescinded among the programs for which funds are apportioned
under chapter 1 of title 23, United States Code, for such
fiscal year, except that in making such adjustments the State
may not rescind from any such program more than 110 percent of
the funds to be rescinded from the program for the fiscal year
as determined by the Secretary of Transportation under
subsection (a).
(c) Treatment of Transportation Enhancement Set-Aside and
Funds Suballocated to Substate Areas.--Funds set aside under
sections 133(d)(2) and 133(d)(3) of title 23, United States
Code, shall be treated as being apportioned under chapter 1 of
such title for purposes of subsection (a).
SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COMPLETE STREETS DESIGN
TECHNIQUES.
It is the sense of Congress that in constructing new roadways
or rehabilitating existing facilities, State and local
governments should consider policies designed to accommodate
all users, including motorists, pedestrians, cyclists, transit
riders, and people of all ages and abilities, in order to--
(1) serve all surface transportation users by
creating a more interconnected and intermodal system;
(2) create more viable transportation options; and
(3) facilitate the use of environmentally friendly
options, such as public transportation, walking, and
bicycling.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS
SEC. 1201. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY.
Section 7(a)(31) of the Small Business Act (15 U.S.C.
636(a)(31)) is amended by adding at the end the following:
``(F) Express loans for renewable energy and
energy efficiency.--
``(i) Definitions.--In this
subparagraph--
``(I) the term `biomass'--
``(aa) means any
organic material that
is available on a
renewable or recurring
basis, including--
``(AA)
agricultural
crops;
``(BB) trees
grown for
energy
production;
``(CC) wood
waste and wood
residues;
``(DD) plants
(including
aquatic plants
and grasses);
``(EE)
residues;
``(FF)
fibers;
``(GG) animal
wastes and
other waste
materials; and
``(HH) fats,
oils, and
greases
(including
recycled fats,
oils, and
greases); and
``(bb) does not
include--
``(AA) paper
that is
commonly
recycled; or
``(BB)
unsegregated
solid waste;
``(II) the term `energy
efficiency project' means the
installation or upgrading of
equipment that results in a
significant reduction in energy
usage; and
``(III) the term `renewable
energy system' means a system
of energy derived from--
``(aa) a wind, solar,
biomass (including
biodiesel), or
geothermal source; or
``(bb) hydrogen
derived from biomass or
water using an energy
source described in
item (aa).
``(ii) Loans.--The Administrator may
make a loan under the Express Loan
Program for the purpose of--
``(I) purchasing a renewable
energy system; or
``(II) carrying out an energy
efficiency project for a small
business concern.''.
SEC. 1202. PILOT PROGRAM FOR REDUCED 7(A) FEES FOR PURCHASE OF ENERGY
EFFICIENT TECHNOLOGIES.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is
amended by adding at the end the following:
``(32) Loans for energy efficient technologies.--
``(A) Definitions.--In this paragraph--
``(i) the term `cost' has the meaning
given that term in section 502 of the
Federal Credit Reform Act of 1990 (2
U.S.C. 661a);
``(ii) the term `covered energy
efficiency loan' means a loan--
``(I) made under this
subsection; and
``(II) the proceeds of which
are used to purchase energy
efficient designs, equipment,
or fixtures, or to reduce the
energy consumption of the
borrower by 10 percent or more;
and
``(iii) the term `pilot program'
means the pilot program established
under subparagraph (B)
``(B) Establishment.--The Administrator shall
establish and carry out a pilot program under
which the Administrator shall reduce the fees
for covered energy efficiency loans.
``(C) Duration.--The pilot program shall
terminate at the end of the second full fiscal
year after the date that the Administrator
establishes the pilot program.
``(D) Maximum participation.--A covered
energy efficiency loan shall include the
maximum participation levels by the
Administrator permitted for loans made under
this subsection.
``(E) Fees.--
``(i) In general.--The fee on a
covered energy efficiency loan shall be
equal to 50 percent of the fee
otherwise applicable to that loan under
paragraph (18).
``(ii) Waiver.--The Administrator may
waive clause (i) for a fiscal year if--
``(I) for the fiscal year
before that fiscal year, the
annual rate of default of
covered energy efficiency loans
exceeds that of loans made
under this subsection that are
not covered energy efficiency
loans;
``(II) the cost to the
Administration of making loans
under this subsection is
greater than zero and such cost
is directly attributable to the
cost of making covered energy
efficiency loans; and
``(III) no additional sources
of revenue authority are
available to reduce the cost of
making loans under this
subsection to zero.
``(iii) Effect of waiver.--If the
Administrator waives the reduction of
fees under clause (ii), the
Administrator--
``(I) shall not assess or
collect fees in an amount
greater than necessary to
ensure that the cost of the
program under this subsection
is not greater than zero; and
``(II) shall reinstate the
fee reductions under clause (i)
when the conditions in clause
(ii) no longer apply.
``(iv) No increase of fees.--The
Administrator shall not increase the
fees under paragraph (18) on loans made
under this subsection that are not
covered energy efficiency loans as a
direct result of the pilot program.
``(F) GAO report.--
``(i) In general.--Not later than 1
year after the date that the pilot
program terminates, the Comptroller
General of the United States shall
submit to the Committee on Small
Business of the House of
Representatives and the Committee on
Small Business and Entrepreneurship of
the Senate a report on the pilot
program.
``(ii) Contents.--The report
submitted under clause (i) shall
include--
``(I) the number of covered
energy efficiency loans for
which fees were reduced under
the pilot program;
``(II) a description of the
energy efficiency savings with
the pilot program;
``(III) a description of the
impact of the pilot program on
the program under this
subsection;
``(IV) an evaluation of the
efficacy and potential fraud
and abuse of the pilot program;
and
``(V) recommendations for
improving the pilot program.''.
SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and
``Administrator'' mean the Small Business
Administration and the Administrator thereof,
respectively;
(2) the term ``association'' means the association of
small business development centers established under
section 21(a)(3)(A) of the Small Business Act (15
U.S.C. 648(a)(3)(A));
(3) the term ``disability'' has the meaning given
that term in section 3 of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12102);
(4) the term ``Efficiency Program'' means the Small
Business Energy Efficiency Program established under
subsection (c)(1);
(5) the term ``electric utility'' has the meaning
given that term in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602);
(6) the term ``high performance green building'' has
the meaning given that term in section 401;
(7) the term ``on-bill financing'' means a low
interest or no interest financing agreement between a
small business concern and an electric utility for the
purchase or installation of equipment, under which the
regularly scheduled payment of that small business
concern to that electric utility is not reduced by the
amount of the reduction in cost attributable to the new
equipment and that amount is credited to the electric
utility, until the cost of the purchase or installation
is repaid;
(8) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15
U.S.C. 632);
(9) the term ``small business development center''
means a small business development center described in
section 21 of the Small Business Act (15 U.S.C. 648);
(10) the term ``telecommuting'' means the use of
telecommunications to perform work functions under
circumstances which reduce or eliminate the need to
commute;
(11) the term ``Telecommuting Pilot Program'' means
the pilot program established under subsection
(d)(1)(A); and
(12) the term ``veteran'' has the meaning given that
term in section 101 of title 38, United States Code.
(b) Implementation of Small Business Energy Efficiency
Program.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Administrator shall
promulgate final rules establishing the Government-wide
program authorized under subsection (d) of section 337
of the Energy Policy and Conservation Act (42 U.S.C.
6307) that ensure compliance with that subsection by
not later than 6 months after such date of enactment.
(2) Program required.--The Administrator shall
develop and coordinate a Government-wide program,
building on the Energy Star for Small Business program,
to assist small business concerns in--
(A) becoming more energy efficient;
(B) understanding the cost savings from
improved energy efficiency; and
(C) identifying financing options for energy
efficiency upgrades.
(3) Consultation and cooperation.--The program
required by paragraph (2) shall be developed and
coordinated--
(A) in consultation with the Secretary of
Energy and the Administrator of the
Environmental Protection Agency; and
(B) in cooperation with any entities the
Administrator considers appropriate, such as
industry trade associations, industry members,
and energy efficiency organizations.
(4) Availability of information.--The Administrator
shall make available the information and materials
developed under the program required by paragraph (2)
to--
(A) small business concerns, including
smaller design, engineering, and construction
firms; and
(B) other Federal programs for energy
efficiency, such as the Energy Star for Small
Business program.
(5) Strategy and report.--
(A) Strategy required.--The Administrator
shall develop a strategy to educate, encourage,
and assist small business concerns in adopting
energy efficient building fixtures and
equipment.
(B) Report.--Not later than December 31,
2008, the Administrator shall submit to
Congress a report containing a plan to
implement the strategy developed under
subparagraph (A).
(c) Small Business Sustainability Initiative.--
(1) Authority.--The Administrator shall establish a
Small Business Energy Efficiency Program to provide
energy efficiency assistance to small business concerns
through small business development centers.
(2) Small business development centers.--
(A) In general.--In carrying out the
Efficiency Program, the Administrator shall
enter into agreements with small business
development centers under which such centers
shall--
(i) provide access to information and
resources on energy efficiency
practices, including on-bill financing
options;
(ii) conduct training and educational
activities;
(iii) offer confidential, free, one-
on-one, in-depth energy audits to the
owners and operators of small business
concerns regarding energy efficiency
practices;
(iv) give referrals to certified
professionals and other providers of
energy efficiency assistance who meet
such standards for educational,
technical, and professional competency
as the Administrator shall establish;
(v) to the extent not inconsistent
with controlling State public utility
regulations, act as a facilitator
between small business concerns,
electric utilities, lenders, and the
Administration to facilitate on-bill
financing arrangements;
(vi) provide necessary support to
small business concerns to--
(I) evaluate energy
efficiency opportunities and
opportunities to design or
construct high performance
green buildings;
(II) evaluate renewable
energy sources, such as the use
of solar and small wind to
supplement power consumption;
(III) secure financing to
achieve energy efficiency or to
design or construct high
performance green buildings;
and
(IV) implement energy
efficiency projects;
(vii) assist owners of small business
concerns with the development and
commercialization of clean technology
products, goods, services, and
processes that use renewable energy
sources, dramatically reduce the use of
natural resources, and cut or eliminate
greenhouse gas emissions through--
(I) technology assessment;
(II) intellectual property;
(III) Small Business
Innovation Research submissions
under section 9 of the Small
Business Act (15 U.S.C. 638);
(IV) strategic alliances;
(V) business model
development; and
(VI) preparation for
investors; and
(viii) help small business concerns
improve environmental performance by
shifting to less hazardous materials
and reducing waste and emissions,
including by providing assistance for
small business concerns to adapt the
materials they use, the processes they
operate, and the products and services
they produce.
(B) Reports.--Each small business development
center participating in the Efficiency Program
shall submit to the Administrator and the
Administrator of the Environmental Protection
Agency an annual report that includes--
(i) a summary of the energy
efficiency assistance provided by that
center under the Efficiency Program;
(ii) the number of small business
concerns assisted by that center under
the Efficiency Program;
(iii) statistics on the total amount
of energy saved as a result of
assistance provided by that center
under the Efficiency Program; and
(iv) any additional information
determined necessary by the
Administrator, in consultation with the
association.
(C) Reports to congress.--Not later than 60
days after the date on which all reports under
subparagraph (B) relating to a year are
submitted, the Administrator shall submit to
the Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives a report summarizing the
information regarding the Efficiency Program
submitted by small business development centers
participating in that program.
(3) Eligibility.--A small business development center
shall be eligible to participate in the Efficiency
Program only if that center is certified under section
21(k)(2) of the Small Business Act (15 U.S.C.
648(k)(2)).
(4) Selection of participating state programs.--From
among small business development centers submitting
applications to participate in the Efficiency Program,
the Administrator--
(A) shall, to the maximum extent practicable,
select small business development centers in
such a manner so as to promote a nationwide
distribution of centers participating in the
Efficiency Program; and
(B) may not select more than 1 small business
development center in a State to participate in
the Efficiency Program.
(5) Matching requirement.--Subparagraphs (A) and (B)
of section 21(a)(4) of the Small Business Act (15
U.S.C. 648(a)(4)) shall apply to assistance made
available under the Efficiency Program.
(6) Grant amounts.--Each small business development
center selected to participate in the Efficiency
Program under paragraph (4) shall be eligible to
receive a grant in an amount equal to--
(A) not less than $100,000 in each fiscal
year; and
(B) not more than $300,000 in each fiscal
year.
(7) Evaluation and report.--The Comptroller General
of the United States shall--
(A) not later than 30 months after the date
of disbursement of the first grant under the
Efficiency Program, initiate an evaluation of
that program; and
(B) not later than 6 months after the date of
the initiation of the evaluation under
subparagraph (A), submit to the Administrator,
the Committee on Small Business and
Entrepreneurship of the Senate, and the
Committee on Small Business of the House of
Representatives, a report containing--
(i) the results of the evaluation;
and
(ii) any recommendations regarding
whether the Efficiency Program, with or
without modification, should be
extended to include the participation
of all small business development
centers.
(8) Guarantee.--To the extent not inconsistent with
State law, the Administrator may guarantee the timely
payment of a loan made to a small business concern
through an on-bill financing agreement on such terms
and conditions as the Administrator shall establish
through a formal rule making, after providing notice
and an opportunity for comment.
(9) Implementation.--Subject to amounts approved in
advance in appropriations Acts and separate from
amounts approved to carry out section 21(a)(1) of the
Small Business Act (15 U.S.C. 648(a)(1)), the
Administrator may make grants or enter into cooperative
agreements to carry out this subsection.
(10) Authorization of appropriations.--There are
authorized to be appropriated such sums as are
necessary to make grants and enter into cooperative
agreements to carry out this subsection.
(11) Termination.--The authority under this
subsection shall terminate 4 years after the date of
disbursement of the first grant under the Efficiency
Program.
(d) Small Business Telecommuting.--
(1) Pilot program.--
(A) In general.--The Administrator shall
conduct, in not more than 5 of the regions of
the Administration, a pilot program to provide
information regarding telecommuting to
employers that are small business concerns and
to encourage such employers to offer
telecommuting options to employees.
(B) Special outreach to individuals with
disabilities.--In carrying out the
Telecommuting Pilot Program, the Administrator
shall make a concerted effort to provide
information to--
(i) small business concerns owned by
or employing individuals with
disabilities, particularly veterans who
are individuals with disabilities;
(ii) Federal, State, and local
agencies having knowledge and expertise
in assisting individuals with
disabilities, including veterans who
are individuals with disabilities; and
(iii) any group or organization, the
primary purpose of which is to aid
individuals with disabilities or
veterans who are individuals with
disabilities.
(C) Permissible activities.--In carrying out
the Telecommuting Pilot Program, the
Administrator may--
(i) produce educational materials and
conduct presentations designed to raise
awareness in the small business
community of the benefits and the ease
of telecommuting;
(ii) conduct outreach--
(I) to small business
concerns that are considering
offering telecommuting options;
and
(II) as provided in
subparagraph (B); and
(iii) acquire telecommuting
technologies and equipment to be used
for demonstration purposes.
(D) Selection of regions.--In determining
which regions will participate in the
Telecommuting Pilot Program, the Administrator
shall give priority consideration to regions in
which Federal agencies and private-sector
employers have demonstrated a strong regional
commitment to telecommuting.
(2) Report to congress.--Not later than 2 years after
the date on which funds are first appropriated to carry
out this subsection, the Administrator shall transmit
to the Committee on Small Business and Entrepreneurship
of the Senate and the Committee on Small Business of
the House of Representatives a report containing the
results of an evaluation of the Telecommuting Pilot
Program and any recommendations regarding whether the
pilot program, with or without modification, should be
extended to include the participation of all regions of
the Administration.
(3) Termination.--The Telecommuting Pilot Program
shall terminate 4 years after the date on which funds
are first appropriated to carry out this subsection.
(4) Authorization of appropriations.--There is
authorized to be appropriated to the Administration
$5,000,000 to carry out this subsection.
(e) Encouraging Innovation in Energy Efficiency.--Section 9
of the Small Business Act (15 U.S.C. 638) is amended by adding
at the end the following:
``(z) Encouraging Innovation in Energy Efficiency.--
``(1) Federal agency energy-related priority.--In
carrying out its duties under this section relating to
SBIR and STTR solicitations by Federal departments and
agencies, the Administrator shall--
``(A) ensure that such departments and
agencies give high priority to small business
concerns that participate in or conduct energy
efficiency or renewable energy system research
and development projects; and
``(B) include in the annual report to
Congress under subsection (b)(7) a
determination of whether the priority described
in subparagraph (A) is being carried out.
``(2) Consultation required.--The Administrator shall
consult with the heads of other Federal departments and
agencies in determining whether priority has been given
to small business concerns that participate in or
conduct energy efficiency or renewable energy system
research and development projects, as required by this
subsection.
``(3) Guidelines.--The Administrator shall, as soon
as is practicable after the date of enactment of this
subsection, issue guidelines and directives to assist
Federal agencies in meeting the requirements of this
subsection.
``(4) Definitions.--In this subsection--
``(A) the term `biomass'--
``(i) means any organic material that
is available on a renewable or
recurring basis, including--
``(I) agricultural crops;
``(II) trees grown for energy
production;
``(III) wood waste and wood
residues;
``(IV) plants (including
aquatic plants and grasses);
``(V) residues;
``(VI) fibers;
``(VII) animal wastes and
other waste materials; and
``(VIII) fats, oils, and
greases (including recycled
fats, oils, and greases); and
``(ii) does not include--
``(I) paper that is commonly
recycled; or
``(II) unsegregated solid
waste;
``(B) the term `energy efficiency project'
means the installation or upgrading of
equipment that results in a significant
reduction in energy usage; and
``(C) the term `renewable energy system'
means a system of energy derived from--
``(i) a wind, solar, biomass
(including biodiesel), or geothermal
source; or
``(ii) hydrogen derived from biomass
or water using an energy source
described in clause (i).''.
SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP ENERGY
EFFICIENT TECHNOLOGIES AND PURCHASES.
(a) Eligibility for Energy Efficiency Projects.--Section
501(d)(3) of the Small Business Investment Act of 1958 (15
U.S.C. 695(d)(3)) is amended--
(1) in subparagraph (G) by striking ``or'' at the
end;
(2) in subparagraph (H) by striking the period at the
end and inserting a comma;
(3) by inserting after subparagraph (H) the
following:
``(I) reduction of energy consumption by at
least 10 percent,
``(J) increased use of sustainable design,
including designs that reduce the use of
greenhouse gas emitting fossil fuels, or low-
impact design to produce buildings that reduce
the use of non-renewable resources and minimize
environmental impact, or
``(K) plant, equipment and process upgrades
of renewable energy sources such as the small-
scale production of energy for individual
buildings or communities consumption, commonly
known as micropower, or renewable fuels
producers including biodiesel and ethanol
producers.''; and
(4) by adding at the end the following: ``In
subparagraphs (J) and (K), terms have the meanings
given those terms under the Leadership in Energy and
Environmental Design (LEED) standard for green building
certification, as determined by the Administrator.''.
(b) Loans for Plant Projects Used for Energy-Efficient
Purposes.--Section 502(2)(A) of the Small Business Investment
Act of 1958 (15 U.S.C. 696(2)(A)) is amended--
(1) in clause (ii) by striking ``and'' at the end;
(2) in clause (iii) by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(iv) $4,000,000 for each project
that reduces the borrower's energy
consumption by at least 10 percent; and
``(v) $4,000,000 for each project
that generates renewable energy or
renewable fuels, such as biodiesel or
ethanol production.''.
SEC. 1205. ENERGY SAVING DEBENTURES.
(a) In General.--Section 303 of the Small Business Investment
Act of 1958 (15 U.S.C. 683) is amended by adding at the end the
following:
``(k) Energy Saving Debentures.--In addition to any other
authority under this Act, a small business investment company
licensed in the first fiscal year after the date of enactment
of this subsection or any fiscal year thereafter may issue
Energy Saving debentures.''.
(b) Definitions.--Section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662) is amended--
(1) in paragraph (16), by striking ``and'' at the
end;
(2) in paragraph (17), by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following:
``(18) the term `Energy Saving debenture' means a
deferred interest debenture that--
``(A) is issued at a discount;
``(B) has a 5-year maturity or a 10-year
maturity;
``(C) requires no interest payment or annual
charge for the first 5 years;
``(D) is restricted to Energy Saving
qualified investments; and
``(E) is issued at no cost (as defined in
section 502 of the Credit Reform Act of 1990)
with respect to purchasing and guaranteeing the
debenture; and
``(19) the term `Energy Saving qualified investment'
means investment in a small business concern that is
primarily engaged in researching, manufacturing,
developing, or providing products, goods, or services
that reduce the use or consumption of non-renewable
energy resources.''.
SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.
(a) Maximum Leverage.--Section 303(b)(2) of the Small
Business Investment Act of 1958 (15 U.S.C. 303(b)(2)) is
amended by adding at the end the following:
``(D) Investments in energy saving small
businesses.--
``(i) In general.--Subject to clause
(ii), in calculating the outstanding
leverage of a company for purposes of
subparagraph (A), the Administrator
shall exclude the amount of the cost
basis of any Energy Saving qualified
investment in a smaller enterprise made
in the first fiscal year after the date
of enactment of this subparagraph or
any fiscal year thereafter by a company
licensed in the applicable fiscal year.
``(ii) Limitations.--
``(I) Amount of exclusion.--
The amount excluded under
clause (i) for a company shall
not exceed 33 percent of the
private capital of that
company.
``(II) Maximum investment.--A
company shall not make an
Energy Saving qualified
investment in any one entity in
an amount equal to more than 20
percent of the private capital
of that company.
``(III) Other terms.--The
exclusion of amounts under
clause (i) shall be subject to
such terms as the Administrator
may impose to ensure that there
is no cost (as that term is
defined in section 502 of the
Federal Credit Reform Act of
1990 (2 U.S.C. 661a)) with
respect to purchasing or
guaranteeing any debenture
involved.''.
(b) Maximum Aggregate Amount of Leverage.--Section 303(b)(4)
of the Small Business Investment Act of 1958 (15 U.S.C.
303(b)(4)) is amended by adding at the end the following:
``(E) Investments in energy saving small
businesses.--
``(i) In general.--Subject to clause
(ii), in calculating the aggregate
outstanding leverage of a company for
purposes of subparagraph (A), the
Administrator shall exclude the amount
of the cost basis of any Energy Saving
qualified investment in a smaller
enterprise made in the first fiscal
year after the date of enactment of
this subparagraph or any fiscal year
thereafter by a company licensed in the
applicable fiscal year.
``(ii) Limitations.--
``(I) Amount of exclusion.--
The amount excluded under
clause (i) for a company shall
not exceed 33 percent of the
private capital of that
company.
``(II) Maximum investment.--A
company shall not make an
Energy Saving qualified
investment in any one entity in
an amount equal to more than 20
percent of the private capital
of that company.
``(III) Other terms.--The
exclusion of amounts under
clause (i) shall be subject to
such terms as the Administrator
may impose to ensure that there
is no cost (as that term is
defined in section 502 of the
Federal Credit Reform Act of
1990 (2 U.S.C. 661a)) with
respect to purchasing or
guaranteeing any debenture
involved.''.
SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.
Title III of the Small Business Investment Act of 1958 (15
U.S.C. 681 et seq.) is amended by adding at the end the
following:
``PART C--RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM
``SEC. 381. DEFINITIONS.
``In this part:
``(1) Operational assistance.--The term `operational
assistance' means management, marketing, and other
technical assistance that assists a small business
concern with business development.
``(2) Participation agreement.--The term
`participation agreement' means an agreement, between
the Administrator and a company granted final approval
under section 384(e), that--
``(A) details the operating plan and
investment criteria of the company; and
``(B) requires the company to make
investments in smaller enterprises primarily
engaged in researching, manufacturing,
developing, producing, or bringing to market
goods, products, or services that generate or
support the production of renewable energy.
``(3) Renewable energy.--The term `renewable energy'
means energy derived from resources that are
regenerative or that cannot be depleted, including
solar, wind, ethanol, and biodiesel fuels.
``(4) Renewable fuel capital investment company.--The
term `Renewable Fuel Capital Investment company' means
a company--
``(A) that--
``(i) has been granted final approval
by the Administrator under section
384(e); and
``(ii) has entered into a
participation agreement with the
Administrator; or
``(B) that has received conditional approval
under section 384(c).
``(5) State.--The term `State' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern
Mariana Islands, and any other commonwealth, territory,
or possession of the United States.
``(6) Venture capital.--The term `venture capital'
means capital in the form of equity capital
investments, as that term is defined in section
303(g)(4).
``SEC. 382. PURPOSES.
``The purposes of the Renewable Fuel Capital Investment
Program established under this part are--
``(1) to promote the research, development,
manufacture, production, and bringing to market of
goods, products, or services that generate or support
the production of renewable energy by encouraging
venture capital investments in smaller enterprises
primarily engaged such activities; and
``(2) to establish a venture capital program, with
the mission of addressing the unmet equity investment
needs of smaller enterprises engaged in researching,
developing, manufacturing, producing, and bringing to
market goods, products, or services that generate or
support the production of renewable energy, to be
administered by the Administrator--
``(A) to enter into participation agreements
with Renewable Fuel Capital Investment
companies;
``(B) to guarantee debentures of Renewable
Fuel Capital Investment companies to enable
each such company to make venture capital
investments in smaller enterprises engaged in
the research, development, manufacture,
production, and bringing to market of goods,
products, or services that generate or support
the production of renewable energy; and
``(C) to make grants to Renewable Fuel
Investment Capital companies, and to other
entities, for the purpose of providing
operational assistance to smaller enterprises
financed, or expected to be financed, by such
companies.
``SEC. 383. ESTABLISHMENT.
``The Administrator shall establish a Renewable Fuel Capital
Investment Program, under which the Administrator may--
``(1) enter into participation agreements for the
purposes described in section 382; and
``(2) guarantee the debentures issued by Renewable
Fuel Capital Investment companies as provided in
section 385.
``SEC. 384. SELECTION OF RENEWABLE FUEL CAPITAL INVESTMENT COMPANIES.
``(a) Eligibility.--A company is eligible to apply to be
designated as a Renewable Fuel Capital Investment company if
the company--
``(1) is a newly formed for-profit entity or a newly
formed for-profit subsidiary of an existing entity;
``(2) has a management team with experience in
alternative energy financing or relevant venture
capital financing; and
``(3) has a primary objective of investment in
smaller enterprises that research, manufacture,
develop, produce, or bring to market goods, products,
or services that generate or support the production of
renewable energy.
``(b) Application.--A company desiring to be designated as a
Renewable Fuel Capital Investment company shall submit an
application to the Administrator that includes--
``(1) a business plan describing how the company
intends to make successful venture capital investments
in smaller enterprises primarily engaged in the
research, manufacture, development, production, or
bringing to market of goods, products, or services that
generate or support the production of renewable energy;
``(2) information regarding the relevant venture
capital qualifications and general reputation of the
management of the company;
``(3) a description of how the company intends to
seek to address the unmet capital needs of the smaller
enterprises served;
``(4) a proposal describing how the company intends
to use the grant funds provided under this part to
provide operational assistance to smaller enterprises
financed by the company, including information
regarding whether the company has employees with
appropriate professional licenses or will contract with
another entity when the services of such an individual
are necessary;
``(5) with respect to binding commitments to be made
to the company under this part, an estimate of the
ratio of cash to in-kind contributions;
``(6) a description of whether and to what extent the
company meets the criteria under subsection (c)(2) and
the objectives of the program established under this
part;
``(7) information regarding the management and
financial strength of any parent firm, affiliated firm,
or any other firm essential to the success of the
business plan of the company; and
``(8) such other information as the Administrator may
require.
``(c) Conditional Approval.--
``(1) In general.--From among companies submitting
applications under subsection (b), the Administrator
shall conditionally approve companies to operate as
Renewable Fuel Capital Investment companies.
``(2) Selection criteria.--In conditionally approving
companies under paragraph (1), the Administrator shall
consider--
``(A) the likelihood that the company will
meet the goal of its business plan;
``(B) the experience and background of the
management team of the company;
``(C) the need for venture capital
investments in the geographic areas in which
the company intends to invest;
``(D) the extent to which the company will
concentrate its activities on serving the
geographic areas in which it intends to invest;
``(E) the likelihood that the company will be
able to satisfy the conditions under subsection
(d);
``(F) the extent to which the activities
proposed by the company will expand economic
opportunities in the geographic areas in which
the company intends to invest;
``(G) the strength of the proposal by the
company to provide operational assistance under
this part as the proposal relates to the
ability of the company to meet applicable cash
requirements and properly use in-kind
contributions, including the use of resources
for the services of licensed professionals,
when necessary, whether provided by employees
or contractors; and
``(H) any other factor determined appropriate
by the Administrator.
``(3) Nationwide distribution.--From among companies
submitting applications under subsection (b), the
Administrator shall consider the selection criteria
under paragraph (2) and shall, to the maximum extent
practicable, approve at least one company from each
geographic region of the Administration.
``(d) Requirements To Be Met for Final Approval.--
``(1) In general.--The Administrator shall grant each
conditionally approved company 2 years to satisfy the
requirements of this subsection.
``(2) Capital requirement.--Each conditionally
approved company shall raise not less than $3,000,000
of private capital or binding capital commitments from
1 or more investors (which shall not be departments or
agencies of the Federal Government) who meet criteria
established by the Administrator.
``(3) Nonadministration resources for operational
assistance.--
``(A) In general.--In order to provide
operational assistance to smaller enterprises
expected to be financed by the company, each
conditionally approved company shall have
binding commitments (for contribution in cash
or in-kind)--
``(i) from sources other than the
Administration that meet criteria
established by the Administrator; and
``(ii) payable or available over a
multiyear period determined appropriate
by the Administrator (not to exceed 10
years).
``(B) Exception.--The Administrator may, in
the discretion of the Administrator and based
upon a showing of special circumstances and
good cause, consider an applicant to have
satisfied the requirements of subparagraph (A)
if the applicant has--
``(i) a viable plan that reasonably
projects the capacity of the applicant
to raise the amount (in cash or in-
kind) required under subparagraph (A);
and
``(ii) binding commitments in an
amount equal to not less than 20
percent of the total amount required
under paragraph (A).
``(C) Limitation.--The total amount of a in-
kind contributions by a company shall be not
more than 50 percent of the total contributions
by a company.
``(e) Final Approval; Designation.--The Administrator shall,
with respect to each applicant conditionally approved under
subsection (c)--
``(1) grant final approval to the applicant to
operate as a Renewable Fuel Capital Investment company
under this part and designate the applicant as such a
company, if the applicant--
``(A) satisfies the requirements of
subsection (d) on or before the expiration of
the time period described in that subsection;
and
``(B) enters into a participation agreement
with the Administrator; or
``(2) if the applicant fails to satisfy the
requirements of subsection (d) on or before the
expiration of the time period described in paragraph
(1) of that subsection, revoke the conditional approval
granted under that subsection.
``SEC. 385. DEBENTURES.
``(a) In General.--The Administrator may guarantee the timely
payment of principal and interest, as scheduled, on debentures
issued by any Renewable Fuel Capital Investment company.
``(b) Terms and Conditions.--The Administrator may make
guarantees under this section on such terms and conditions as
it determines appropriate, except that--
``(1) the term of any debenture guaranteed under this
section shall not exceed 15 years; and
``(2) a debenture guaranteed under this section--
``(A) shall carry no front-end or annual
fees;
``(B) shall be issued at a discount;
``(C) shall require no interest payments
during the 5-year period beginning on the date
the debenture is issued;
``(D) shall be prepayable without penalty
after the end of the 1-year period beginning on
the date the debenture is issued; and
``(E) shall require semiannual interest
payments after the period described in
subparagraph (C).
``(c) Full Faith and Credit of the United States.--The full
faith and credit of the United States is pledged to pay all
amounts that may be required to be paid under any guarantee
under this part.
``(d) Maximum Guarantee.--
``(1) In general.--Under this section, the
Administrator may guarantee the debentures issued by a
Renewable Fuel Capital Investment company only to the
extent that the total face amount of outstanding
guaranteed debentures of such company does not exceed
150 percent of the private capital of the company, as
determined by the Administrator.
``(2) Treatment of certain federal funds.--For the
purposes of paragraph (1), private capital shall
include capital that is considered to be Federal funds,
if such capital is contributed by an investor other
than a department or agency of the Federal Government.
``SEC. 386. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
``(a) Issuance.--The Administrator may issue trust
certificates representing ownership of all or a fractional part
of debentures issued by a Renewable Fuel Capital Investment
company and guaranteed by the Administrator under this part, if
such certificates are based on and backed by a trust or pool
approved by the Administrator and composed solely of guaranteed
debentures.
``(b) Guarantee.--
``(1) In general.--The Administrator may, under such
terms and conditions as it determines appropriate,
guarantee the timely payment of the principal of and
interest on trust certificates issued by the
Administrator or its agents for purposes of this
section.
``(2) Limitation.--Each guarantee under this
subsection shall be limited to the extent of principal
and interest on the guaranteed debentures that compose
the trust or pool.
``(3) Prepayment or default.--If a debenture in a
trust or pool is prepaid, or in the event of default of
such a debenture, the guarantee of timely payment of
principal and interest on the trust certificates shall
be reduced in proportion to the amount of principal and
interest such prepaid debenture represents in the trust
or pool. Interest on prepaid or defaulted debentures
shall accrue and be guaranteed by the Administrator
only through the date of payment of the guarantee. At
any time during its term, a trust certificate may be
called for redemption due to prepayment or default of
all debentures.
``(c) Full Faith and Credit of the United States.--The full
faith and credit of the United States is pledged to pay all
amounts that may be required to be paid under any guarantee of
a trust certificate issued by the Administrator or its agents
under this section.
``(d) Fees.--The Administrator shall not collect a fee for
any guarantee of a trust certificate under this section, but
any agent of the Administrator may collect a fee approved by
the Administrator for the functions described in subsection
(f)(2).
``(e) Subrogation and Ownership Rights.--
``(1) Subrogation.--If the Administrator pays a claim
under a guarantee issued under this section, it shall
be subrogated fully to the rights satisfied by such
payment.
``(2) Ownership rights.--No Federal, State, or local
law shall preclude or limit the exercise by the
Administrator of its ownership rights in the debentures
residing in a trust or pool against which trust
certificates are issued under this section.
``(f) Management and Administration.--
``(1) Registration.--The Administrator may provide
for a central registration of all trust certificates
issued under this section.
``(2) Contracting of functions.--
``(A) In general.--The Administrator may
contract with an agent or agents to carry out
on behalf of the Administrator the pooling and
the central registration functions provided for
in this section, including, not withstanding
any other provision of law--
``(i) maintenance, on behalf of and
under the direction of the
Administrator, of such commercial bank
accounts or investments in obligations
of the United States as may be
necessary to facilitate the creation of
trusts or pools backed by debentures
guaranteed under this part; and
``(ii) the issuance of trust
certificates to facilitate the creation
of such trusts or pools.
``(B) Fidelity bond or insurance
requirement.--Any agent performing functions on
behalf of the Administrator under this
paragraph shall provide a fidelity bond or
insurance in such amounts as the Administrator
determines to be necessary to fully protect the
interests of the United States.
``(3) Regulation of brokers and dealers.--The
Administrator may regulate brokers and dealers in trust
certificates issued under this section.
``(4) Electronic registration.--Nothing in this
subsection may be construed to prohibit the use of a
book-entry or other electronic form of registration for
trust certificates issued under this section.
``SEC. 387. FEES.
``(a) In General.--Except as provided in section 386(d), the
Administrator may charge such fees as it determines appropriate
with respect to any guarantee or grant issued under this part,
in an amount established annually by the Administrator, as
necessary to reduce to zero the cost (as defined in section 502
of the Federal Credit Reform Act of 1990) to the Administration
of purchasing and guaranteeing debentures under this part,
which amounts shall be paid to and retained by the
Administration.
``(b) Offset.--The Administrator may, as provided by section
388, offset fees charged and collected under subsection (a).
``SEC. 388. FEE CONTRIBUTION.
``(a) In General.--To the extent that amounts are made
available to the Administrator for the purpose of fee
contributions, the Administrator shall contribute to fees paid
by the Renewable Fuel Capital Investment companies under
section 387.
``(b) Annual Adjustment.--Each fee contribution under
subsection (a) shall be effective for 1 fiscal year and shall
be adjusted as necessary for each fiscal year thereafter to
ensure that amounts under subsection (a) are fully used. The
fee contribution for a fiscal year shall be based on the
outstanding commitments made and the guarantees and grants that
the Administrator projects will be made during that fiscal
year, given the program level authorized by law for that fiscal
year and any other factors that the Administrator determines
appropriate.
``SEC. 389. OPERATIONAL ASSISTANCE GRANTS.
``(a) In General.--
``(1) Authority.--The Administrator may make grants
to Renewable Fuel Capital Investment companies to
provide operational assistance to smaller enterprises
financed, or expected to be financed, by such companies
or other entities.
``(2) Terms.--A grant under this subsection shall be
made over a multiyear period not to exceed 10 years,
under such other terms as the Administrator may
require.
``(3) Grant amount.--The amount of a grant made under
this subsection to a Renewable Fuel Capital Investment
company shall be equal to the lesser of--
``(A) 10 percent of the resources (in cash or
in kind) raised by the company under section
384(d)(2); or
``(B) $1,000,000.
``(4) Pro rata reductions.--If the amount made
available to carry out this section is insufficient for
the Administrator to provide grants in the amounts
provided for in paragraph (3), the Administrator shall
make pro rata reductions in the amounts otherwise
payable to each company and entity under such
paragraph.
``(5) Grants to conditionally approved companies.--
``(A) In general.--Subject to subparagraphs
(B) and (C), upon the request of a company
conditionally approved under section 384(c),
the Administrator shall make a grant to the
company under this subsection.
``(B) Repayment by companies not approved.--
If a company receives a grant under this
paragraph and does not enter into a
participation agreement for final approval, the
company shall, subject to controlling Federal
law, repay the amount of the grant to the
Administrator.
``(C) Deduction of grant to approved
company.--If a company receives a grant under
this paragraph and receives final approval
under section 384(e), the Administrator shall
deduct the amount of the grant from the total
grant amount the company receives for
operational assistance.
``(D) Amount of grant.--No company may
receive a grant of more than $100,000 under
this paragraph.
``(b) Supplemental Grants.--
``(1) In general.--The Administrator may make
supplemental grants to Renewable Fuel Capital
Investment companies and to other entities, as
authorized by this part, under such terms as the
Administrator may require, to provide additional
operational assistance to smaller enterprises financed,
or expected to be financed, by the companies.
``(2) Matching requirement.--The Administrator may
require, as a condition of any supplemental grant made
under this subsection, that the company or entity
receiving the grant provide from resources (in a cash
or in kind), other then those provided by the
Administrator, a matching contribution equal to the
amount of the supplemental grant.
``(c) Limitation.--None of the assistance made available
under this section may be used for any overhead or general and
administrative expense of a Renewable Fuel Capital Investment
company.
``SEC. 390. BANK PARTICIPATION.
``(a) In General.--Except as provided in subsection (b), any
national bank, any member bank of the Federal Reserve System,
and (to the extent permitted under applicable State law) any
insured bank that is not a member of such system, may invest in
any Renewable Fuel Capital Investment company, or in any entity
established to invest solely in Renewable Fuel Capital
Investment companies.
``(b) Limitation.--No bank described in subsection (a) may
make investments described in such subsection that are greater
than 5 percent of the capital and surplus of the bank.
``SEC. 391. FEDERAL FINANCING BANK.
``Notwithstanding section 318, the Federal Financing Bank may
acquire a debenture issued by a Renewable Fuel Capital
Investment company under this part.
``SEC. 392. REPORTING REQUIREMENT.
``Each Renewable Fuel Capital Investment company that
participates in the program established under this part shall
provide to the Administrator such information as the
Administrator may require, including--
``(1) information related to the measurement criteria
that the company proposed in its program application;
and
``(2) in each case in which the company makes, under
this part, an investment in, or a loan or a grant to, a
business that is not primarily engaged in the research,
development, manufacture, or bringing to market or
renewable energy sources, a report on the nature,
origin, and revenues of the business in which
investments are made.
``SEC. 393. EXAMINATIONS.
``(a) In General.--Each Renewable Fuel Capital Investment
company that participates in the program established under this
part shall be subject to examinations made at the direction of
the Investment Division of the Administration in accordance
with this section.
``(b) Assistance of Private Sector Entities.--Examinations
under this section may be conducted with the assistance of a
private sector entity that has both the qualifications and the
expertise necessary to conduct such examinations.
``(c) Costs.--
``(1) Assessment.--
``(A) In general.--The Administrator may
assess the cost of examinations under this
section, including compensation of the
examiners, against the company examined.
``(B) Payment.--Any company against which the
Administrator assesses costs under this
paragraph shall pay such costs.
``(2) Deposit of funds.--Funds collected under this
section shall be deposited in the account for salaries
and expenses of the Administration.
``SEC. 394. MISCELLANEOUS.
``To the extent such procedures are not inconsistent with the
requirements of this part, the Administrator may take such
action as set forth in sections 309, 311, 312, and 314 and an
officer, director, employee, agent, or other participant in the
management or conduct of the affairs of a Renewable Fuel
Capital Investment company shall be subject to the requirements
of such sections.
``SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.
``Using the procedures for removing or suspending a director
or an officer of a licensee set forth in section 313 (to the
extent such procedures are not inconsistent with the
requirements of this part), the Administrator may remove or
suspend any director or officer of any Renewable Fuel Capital
Investment company.
``SEC. 396. REGULATIONS.
``The Administrator may issue such regulations as the
Administrator determines necessary to carry out the provisions
of this part in accordance with its purposes.
``SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) In General.--Subject to the availability of
appropriations, the Administrator is authorized to make
$15,000,000 in operational assistance grants under section 389
for each of fiscal years 2008 and 2009.
``(b) Funds Collected for Examinations.--Funds deposited
under section 393(c)(2) are authorized to be appropriated only
for the costs of examinations under section 393 and for the
costs of other oversight activities with respect to the program
established under this part.
``SEC. 398. TERMINATION.
``The program under this part shall terminate at the end of
the second full fiscal year after the date that the
Administrator establishes the program under this part.''.
SEC. 1208. STUDY AND REPORT.
The Administrator of the Small Business Administration shall
conduct a study of the Renewable Fuel Capital Investment
Program under part C of title III of the Small Business
Investment Act of 1958, as added by this Act. Not later than 3
years after the date of enactment of this Act, the
Administrator shall complete the study under this section and
submit to Congress a report regarding the results of the study.
TITLE XIII--SMART GRID
SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF ELECTRICITY GRID.
It is the policy of the United States to support the
modernization of the Nation's electricity transmission and
distribution system to maintain a reliable and secure
electricity infrastructure that can meet future demand growth
and to achieve each of the following, which together
characterize a Smart Grid:
(1) Increased use of digital information and controls
technology to improve reliability, security, and
efficiency of the electric grid.
(2) Dynamic optimization of grid operations and
resources, with full cyber-security.
(3) Deployment and integration of distributed
resources and generation, including renewable
resources.
(4) Development and incorporation of demand response,
demand-side resources, and energy-efficiency resources.
(5) Deployment of ``smart'' technologies (real-time,
automated, interactive technologies that optimize the
physical operation of appliances and consumer devices)
for metering, communications concerning grid operations
and status, and distribution automation.
(6) Integration of ``smart'' appliances and consumer
devices.
(7) Deployment and integration of advanced
electricity storage and peak-shaving technologies,
including plug-in electric and hybrid electric
vehicles, and thermal-storage air conditioning.
(8) Provision to consumers of timely information and
control options.
(9) Development of standards for communication and
interoperability of appliances and equipment connected
to the electric grid, including the infrastructure
serving the grid.
(10) Identification and lowering of unreasonable or
unnecessary barriers to adoption of smart grid
technologies, practices, and services.
SEC. 1302. SMART GRID SYSTEM REPORT.
The Secretary, acting through the Assistant Secretary of the
Office of Electricity Delivery and Energy Reliability (referred
to in this section as the ``OEDER'') and through the Smart Grid
Task Force established in section 1303, shall, after consulting
with any interested individual or entity as appropriate, no
later than one year after enactment, and every two years
thereafter, report to Congress concerning the status of smart
grid deployments nationwide and any regulatory or government
barriers to continued deployment. The report shall provide the
current status and prospects of smart grid development,
including information on technology penetration, communications
network capabilities, costs, and obstacles. It may include
recommendations for State and Federal policies or actions
helpful to facilitate the transition to a smart grid. To the
extent appropriate, it should take a regional perspective. In
preparing this report, the Secretary shall solicit advice and
contributions from the Smart Grid Advisory Committee created in
section 1303; from other involved Federal agencies including
but not limited to the Federal Energy Regulatory Commission
(``Commission''), the National Institute of Standards and
Technology (``Institute''), and the Department of Homeland
Security; and from other stakeholder groups not already
represented on the Smart Grid Advisory Committee.
SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK FORCE.
(a) Smart Grid Advisory Committee.--
(1) Establishment.--The Secretary shall establish,
within 90 days of enactment of this Part, a Smart Grid
Advisory Committee (either as an independent entity or
as a designated sub-part of a larger advisory committee
on electricity matters). The Smart Grid Advisory
Committee shall include eight or more members appointed
by the Secretary who have sufficient experience and
expertise to represent the full range of smart grid
technologies and services, to represent both private
and non-Federal public sector stakeholders. One member
shall be appointed by the Secretary to Chair the Smart
Grid Advisory Committee.
(2) Mission.--The mission of the Smart Grid Advisory
Committee shall be to advise the Secretary, the
Assistant Secretary, and other relevant Federal
officials concerning the development of smart grid
technologies, the progress of a national transition to
the use of smart-grid technologies and services, the
evolution of widely-accepted technical and practical
standards and protocols to allow interoperability and
inter-communication among smart-grid capable devices,
and the optimum means of using Federal incentive
authority to encourage such progress.
(3) Applicability of federal advisory committee
act.--The Federal Advisory Committee Act (5 U.S.C.
App.) shall apply to the Smart Grid Advisory Committee.
(b) Smart Grid Task Force.--
(1) Establishment.--The Assistant Secretary of the
Office of Electricity Delivery and Energy Reliability
shall establish, within 90 days of enactment of this
Part, a Smart Grid Task Force composed of designated
employees from the various divisions of that office who
have responsibilities related to the transition to
smart-grid technologies and practices. The Assistant
Secretary or his designee shall be identified as the
Director of the Smart Grid Task Force. The Chairman of
the Federal Energy Regulatory Commission and the
Director of the National Institute of Standards and
Technology shall each designate at least one employee
to participate on the Smart Grid Task Force. Other
members may come from other agencies at the invitation
of the Assistant Secretary or the nomination of the
head of such other agency. The Smart Grid Task Force
shall, without disrupting the work of the Divisions or
Offices from which its members are drawn, provide an
identifiable Federal entity to embody the Federal role
in the national transition toward development and use
of smart grid technologies.
(2) Mission.--The mission of the Smart Grid Task
Force shall be to insure awareness, coordination and
integration of the diverse activities of the Office and
elsewhere in the Federal government related to smart-
grid technologies and practices, including but not
limited to: smart grid research and development;
development of widely accepted smart-grid standards and
protocols; the relationship of smart-grid technologies
and practices to electric utility regulation; the
relationship of smart-grid technologies and practices
to infrastructure development, system reliability and
security; and the relationship of smart-grid
technologies and practices to other facets of
electricity supply, demand, transmission, distribution,
and policy. The Smart Grid Task Force shall collaborate
with the Smart Grid Advisory Committee and other
Federal agencies and offices. The Smart Grid Task Force
shall meet at the call of its Director as necessary to
accomplish its mission.
(c) Authorization.--There are authorized to be appropriated
for the purposes of this section such sums as are necessary to
the Secretary to support the operations of the Smart Grid
Advisory Committee and Smart Grid Task Force for each of fiscal
years 2008 through 2020.
SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.
(a) Power Grid Digital Information Technology.--The
Secretary, in consultation with the Federal Energy Regulatory
Commission and other appropriate agencies, electric utilities,
the States, and other stakeholders, shall carry out a program--
(1) to develop advanced techniques for measuring peak
load reductions and energy-efficiency savings from
smart metering, demand response, distributed
generation, and electricity storage systems;
(2) to investigate means for demand response,
distributed generation, and storage to provide
ancillary services;
(3) to conduct research to advance the use of wide-
area measurement and control networks, including data
mining, visualization, advanced computing, and secure
and dependable communications in a highly-distributed
environment;
(4) to test new reliability technologies, including
those concerning communications network capabilities,
in a grid control room environment against a
representative set of local outage and wide area
blackout scenarios;
(5) to identify communications network capacity
needed to implement advanced technologies.
(6) to investigate the feasibility of a transition to
time-of-use and real-time electricity pricing;
(7) to develop algorithms for use in electric
transmission system software applications;
(8) to promote the use of underutilized electricity
generation capacity in any substitution of electricity
for liquid fuels in the transportation system of the
United States; and
(9) in consultation with the Federal Energy
Regulatory Commission, to propose interconnection
protocols to enable electric utilities to access
electricity stored in vehicles to help meet peak demand
loads.
(b) Smart Grid Regional Demonstration Initiative.--
(1) In general.--The Secretary shall establish a
smart grid regional demonstration initiative (referred
to in this subsection as the ``Initiative'') composed
of demonstration projects specifically focused on
advanced technologies for use in power grid sensing,
communications, analysis, and power flow control. The
Secretary shall seek to leverage existing smart grid
deployments.
(2) Goals.--The goals of the Initiative shall be--
(A) to demonstrate the potential benefits of
concentrated investments in advanced grid
technologies on a regional grid;
(B) to facilitate the commercial transition
from the current power transmission and
distribution system technologies to advanced
technologies;
(C) to facilitate the integration of advanced
technologies in existing electric networks to
improve system performance, power flow control,
and reliability;
(D) to demonstrate protocols and standards
that allow for the measurement and validation
of the energy savings and fossil fuel emission
reductions associated with the installation and
use of energy efficiency and demand response
technologies and practices; and
(E) to investigate differences in each region
and regulatory environment regarding best
practices in implementing smart grid
technologies.
(3) Demonstration projects.--
(A) In general.--In carrying out the
initiative, the Secretary shall carry out smart
grid demonstration projects in up to 5
electricity control areas, including rural
areas and at least 1 area in which the majority
of generation and transmission assets are
controlled by a tax-exempt entity.
(B) Cooperation.--A demonstration project
under subparagraph (A) shall be carried out in
cooperation with the electric utility that owns
the grid facilities in the electricity control
area in which the demonstration project is
carried out.
(C) Federal share of cost of technology
investments.--The Secretary shall provide to an
electric utility described in subparagraph (B)
financial assistance for use in paying an
amount equal to not more than 50 percent of the
cost of qualifying advanced grid technology
investments made by the electric utility to
carry out a demonstration project.
(D) Ineligibility for grants.--No person or
entity participating in any demonstration
project conducted under this subsection shall
be eligible for grants under section 1306 for
otherwise qualifying investments made as part
of that demonstration project.
(c) Authorization of Appropriations.--There are authorized to
be appropriated--
(1) to carry out subsection (a), such sums as are
necessary for each of fiscal years 2008 through 2012;
and
(2) to carry out subsection (b), $100,000,000 for
each of fiscal years 2008 through 2012.
SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK.
(a) Interoperability Framework.--The Director of the National
Institute of Standards and Technology shall have primary
responsibility to coordinate the development of a framework
that includes protocols and model standards for information
management to achieve interoperability of smart grid devices
and systems. Such protocols and standards shall further align
policy, business, and technology approaches in a manner that
would enable all electric resources, including demand-side
resources, to contribute to an efficient, reliable electricity
network. In developing such protocols and standards--
(1) the Director shall seek input and cooperation
from the Commission, OEDER and its Smart Grid Task
Force, the Smart Grid Advisory Committee, other
relevant Federal and State agencies; and
(2) the Director shall also solicit input and
cooperation from private entities interested in such
protocols and standards, including but not limited to
the Gridwise Architecture Council, the International
Electrical and Electronics Engineers, the National
Electric Reliability Organization recognized by the
Federal Energy Regulatory Commission, and National
Electrical Manufacturer's Association.
(b) Scope of Framework.--The framework developed under
subsection (a) shall be flexible, uniform and technology
neutral, including but not limited to technologies for managing
smart grid information, and designed--
(1) to accommodate traditional, centralized
generation and transmission resources and consumer
distributed resources, including distributed
generation, renewable generation, energy storage,
energy efficiency, and demand response and enabling
devices and systems;
(2) to be flexible to incorporate--
(A) regional and organizational differences;
and
(B) technological innovations;
(3) to consider the use of voluntary uniform
standards for certain classes of mass-produced electric
appliances and equipment for homes and businesses that
enable customers, at their election and consistent with
applicable State and Federal laws, and are manufactured
with the ability to respond to electric grid
emergencies and demand response signals by curtailing
all, or a portion of, the electrical power consumed by
the appliances or equipment in response to an emergency
or demand response signal, including through--
(A) load reduction to reduce total electrical
demand;
(B) adjustment of load to provide grid
ancillary services; and
(C) in the event of a reliability crisis that
threatens an outage, short-term load shedding
to help preserve the stability of the grid; and
(4) such voluntary standards should incorporate
appropriate manufacturer lead time.
(c) Timing of Framework Development.--The Institute shall
begin work pursuant to this section within 60 days of
enactment. The Institute shall provide and publish an initial
report on progress toward recommended or consensus standards
and protocols within one year after enactment, further reports
at such times as developments warrant in the judgment of the
Institute, and a final report when the Institute determines
that the work is completed or that a Federal role is no longer
necessary.
(d) Standards for Interoperability in Federal Jurisdiction.--
At any time after the Institute's work has led to sufficient
consensus in the Commission's judgment, the Commission shall
institute a rulemaking proceeding to adopt such standards and
protocols as may be necessary to insure smart-grid
functionality and interoperability in interstate transmission
of electric power, and regional and wholesale electricity
markets.
(e) Authorization.--There are authorized to be appropriated
for the purposes of this section $5,000,000 to the Institute to
support the activities required by this subsection for each of
fiscal years 2008 through 2012.
SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT COSTS.
(a) Matching Fund.--The Secretary shall establish a Smart
Grid Investment Matching Grant Program to provide reimbursement
of one-fifth (20 percent) of qualifying Smart Grid investments.
(b) Qualifying Investments.--Qualifying Smart Grid
investments may include any of the following made on or after
the date of enactment of this Act:
(1) In the case of appliances covered for purposes of
establishing energy conservation standards under part B
of title III of the Energy Policy and Conservation Act
of 1975 (42 U.S.C. 6291 et seq.), the documented
expenditures incurred by a manufacturer of such
appliances associated with purchasing or designing,
creating the ability to manufacture, and manufacturing
and installing for one calendar year, internal devices
that allow the appliance to engage in Smart Grid
functions.
(2) In the case of specialized electricity-using
equipment, including motors and drivers, installed in
industrial or commercial applications, the documented
expenditures incurred by its owner or its manufacturer
of installing devices or modifying that equipment to
engage in Smart Grid functions.
(3) In the case of transmission and distribution
equipment fitted with monitoring and communications
devices to enable smart grid functions, the documented
expenditures incurred by the electric utility to
purchase and install such monitoring and communications
devices.
(4) In the case of metering devices, sensors, control
devices, and other devices integrated with and attached
to an electric utility system or retail distributor or
marketer of electricity that are capable of engaging in
Smart Grid functions, the documented expenditures
incurred by the electric utility, distributor, or
marketer and its customers to purchase and install such
devices.
(5) In the case of software that enables devices or
computers to engage in Smart Grid functions, the
documented purchase costs of the software.
(6) In the case of entities that operate or
coordinate operations of regional electric grids, the
documented expenditures for purchasing and installing
such equipment that allows Smart Grid functions to
operate and be combined or coordinated among multiple
electric utilities and between that region and other
regions.
(7) In the case of persons or entities other than
electric utilities owning and operating a distributed
electricity generator, the documented expenditures of
enabling that generator to be monitored, controlled, or
otherwise integrated into grid operations and
electricity flows on the grid utilizing Smart Grid
functions.
(8) In the case of electric or hybrid-electric
vehicles, the documented expenses for devices that
allow the vehicle to engage in Smart Grid functions
(but not the costs of electricity storage for the
vehicle).
(9) The documented expenditures related to purchasing
and implementing Smart Grid functions in such other
cases as the Secretary shall identify. In making such
grants, the Secretary shall seek to reward innovation
and early adaptation, even if success is not complete,
rather than deployment of proven and commercially
viable technologies.
(c) Investments Not Included.--Qualifying Smart Grid
investments do not include any of the following:
(1) Investments or expenditures for Smart Grid
technologies, devices, or equipment that are eligible
for specific tax credits or deductions under the
Internal Revenue Code, as amended.
(2) Expenditures for electricity generation,
transmission, or distribution infrastructure or
equipment not directly related to enabling Smart Grid
functions.
(3) After the final date for State consideration of
the Smart Grid Information Standard under section 1307
(paragraph (17) of section 111(d) of the Public Utility
Regulatory Policies Act of 1978), an investment that is
not in compliance with such standard.
(4) After the development and publication by the
Institute of protocols and model standards for
interoperability of smart grid devices and
technologies, an investment that fails to incorporate
any of such protocols or model standards.
(5) Expenditures for physical interconnection of
generators or other devices to the grid except those
that are directly related to enabling Smart Grid
functions.
(6) Expenditures for ongoing salaries, benefits, or
personnel costs not incurred in the initial
installation, training, or start up of smart grid
functions.
(7) Expenditures for travel, lodging, meals or other
personal costs.
(8) Ongoing or routine operation, billing, customer
relations, security, and maintenance expenditures.
(9) Such other expenditures that the Secretary
determines not to be Qualifying Smart Grid Investments
by reason of the lack of the ability to perform Smart
Grid functions or lack of direct relationship to Smart
Grid functions.
(d) Smart Grid Functions.--The term ``smart grid functions''
means any of the following:
(1) The ability to develop, store, send and receive
digital information concerning electricity use, costs,
prices, time of use, nature of use, storage, or other
information relevant to device, grid, or utility
operations, to or from or by means of the electric
utility system, through one or a combination of devices
and technologies.
(2) The ability to develop, store, send and receive
digital information concerning electricity use, costs,
prices, time of use, nature of use, storage, or other
information relevant to device, grid, or utility
operations to or from a computer or other control
device.
(3) The ability to measure or monitor electricity use
as a function of time of day, power quality
characteristics such as voltage level, current, cycles
per second, or source or type of generation and to
store, synthesize or report that information by digital
means.
(4) The ability to sense and localize disruptions or
changes in power flows on the grid and communicate such
information instantaneously and automatically for
purposes of enabling automatic protective responses to
sustain reliability and security of grid operations.
(5) The ability to detect, prevent, communicate with
regard to, respond to, or recover from system security
threats, including cyber-security threats and
terrorism, using digital information, media, and
devices.
(6) The ability of any appliance or machine to
respond to such signals, measurements, or
communications automatically or in a manner programmed
by its owner or operator without independent human
intervention.
(7) The ability to use digital information to operate
functionalities on the electric utility grid that were
previously electro-mechanical or manual.
(8) The ability to use digital controls to manage and
modify electricity demand, enable congestion
management, assist in voltage control, provide
operating reserves, and provide frequency regulation.
(9) Such other functions as the Secretary may
identify as being necessary or useful to the operation
of a Smart Grid.
(e) The Secretary shall--
(1) establish and publish in the Federal Register,
within one year after the enactment of this Act
procedures by which applicants who have made qualifying
Smart Grid investments can seek and obtain
reimbursement of one-fifth of their documented
expenditures;
(2) establish procedures to ensure that there is no
duplication or multiple reimbursement for the same
investment or costs, that the reimbursement goes to the
party making the actual expenditures for Qualifying
Smart Grid Investments, and that the grants made have
significant effect in encouraging and facilitating the
development of a smart grid;
(3) maintain public records of reimbursements made,
recipients, and qualifying Smart Grid investments which
have received reimbursements;
(4) establish procedures to provide, in cases deemed
by the Secretary to be warranted, advance payment of
moneys up to the full amount of the projected eventual
reimbursement, to creditworthy applicants whose ability
to make Qualifying Smart Grid Investments may be
hindered by lack of initial capital, in lieu of any
later reimbursement for which that applicant qualifies,
and subject to full return of the advance payment in
the event that the Qualifying Smart Grid investment is
not made; and
(5) have and exercise the discretion to deny grants
for investments that do not qualify in the reasonable
judgment of the Secretary.
(f) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary such sums as are necessary for
the administration of this section and the grants to be made
pursuant to this section for fiscal years 2008 through 2012.
SEC. 1307. STATE CONSIDERATION OF SMART GRID.
(a) Section 111(d) of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end
the following:
``(16) Consideration of smart grid investments.--
``(A) In general.--Each State shall consider
requiring that, prior to undertaking
investments in nonadvanced grid technologies,
an electric utility of the State demonstrate to
the State that the electric utility considered
an investment in a qualified smart grid system
based on appropriate factors, including--
``(i) total costs;
``(ii) cost-effectiveness;
``(iii) improved reliability;
``(iv) security;
``(v) system performance; and
``(vi) societal benefit.
``(B) Rate recovery.--Each State shall
consider authorizing each electric utility of
the State to recover from ratepayers any
capital, operating expenditure, or other costs
of the electric utility relating to the
deployment of a qualified smart grid system,
including a reasonable rate of return on the
capital expenditures of the electric utility
for the deployment of the qualified smart grid
system.
``(C) Obsolete equipment.--Each State shall
consider authorizing any electric utility or
other party of the State to deploy a qualified
smart grid system to recover in a timely manner
the remaining book-value costs of any equipment
rendered obsolete by the deployment of the
qualified smart grid system, based on the
remaining depreciable life of the obsolete
equipment.
``(17) Smart grid information.--
``(A) Standard.--All electricity purchasers
shall be provided direct access, in written or
electronic machine-readable form as
appropriate, to information from their
electricity provider as provided in
subparagraph (B).
``(B) Information.--Information provided
under this section, to the extent practicable,
shall include:
``(i) Prices.--Purchasers and other
interested persons shall be provided
with information on--
``(I) time-based electricity
prices in the wholesale
electricity market; and
``(II) time-based electricity
retail prices or rates that are
available to the purchasers.
``(ii) Usage.--Purchasers shall be
provided with the number of electricity
units, expressed in kwh, purchased by
them.
``(iii) Intervals and projections.--
Updates of information on prices and
usage shall be offered on not less than
a daily basis, shall include hourly
price and use information, where
available, and shall include a day-
ahead projection of such price
information to the extent available.
``(iv) Sources.--Purchasers and other
interested persons shall be provided
annually with written information on
the sources of the power provided by
the utility, to the extent it can be
determined, by type of generation,
including greenhouse gas emissions
associated with each type of
generation, for intervals during which
such information is available on a
cost-effective basis.
``(C) Access.--Purchasers shall be able to
access their own information at any time
through the internet and on other means of
communication elected by that utility for Smart
Grid applications. Other interested persons
shall be able to access information not
specific to any purchaser through the Internet.
Information specific to any purchaser shall be
provided solely to that purchaser.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622(b)) is amended by adding the following at the end
thereof:
``(6)(A) Not later than 1 year after the enactment of
this paragraph, each State regulatory authority (with
respect to each electric utility for which it has
ratemaking authority) and each nonregulated utility
shall commence the consideration referred to in section
111, or set a hearing date for consideration, with
respect to the standards established by paragraphs (17)
through (18) of section 111(d).
``(B) Not later than 2 years after the date of the
enactment of the this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority), and each
nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to each
standard established by paragraphs (17) through (18) of
section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622(c)) is amended by adding the following at the end:
``In the case of the standards established by paragraphs (16)
through (19) of section 111(d), the reference contained in this
subsection to the date of enactment of this Act shall be deemed
to be a reference to the date of enactment of such
paragraphs.''.
(3) Prior state actions.--Section 112(d) of the
Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2622(d)) is amended by inserting ``and
paragraphs (17) through (18)'' before ``of section
111(d)''.
SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE DEVELOPMENT
OF COMBINED HEAT AND POWER FACILITIES.
(a) Study.--
(1) In general.--The Secretary, in consultation with
the States and other appropriate entities, shall
conduct a study of the laws (including regulations)
affecting the siting of privately owned electric
distribution wires on and across public rights-of-way.
(2) Requirements.--The study under paragraph (1)
shall include--
(A) an evaluation of--
(i) the purposes of the laws; and
(ii) the effect the laws have on the
development of combined heat and power
facilities;
(B) a determination of whether a change in
the laws would have any operating, reliability,
cost, or other impacts on electric utilities
and the customers of the electric utilities;
and
(C) an assessment of--
(i) whether privately owned electric
distribution wires would result in
duplicative facilities; and
(ii) whether duplicative facilities
are necessary or desirable.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress a
report that describes the results of the study conducted under
subsection (a).
SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID SYSTEMS.
(a) DOE Study.--The Secretary shall, within 18 months after
the date of enactment of this Act, submit a report to Congress
that provides a quantitative assessment and determination of
the existing and potential impacts of the deployment of Smart
Grid systems on improving the security of the Nation's
electricity infrastructure and operating capability. The report
shall include but not be limited to specific recommendations on
each of the following:
(1) How smart grid systems can help in making the
Nation's electricity system less vulnerable to
disruptions due to intentional acts against the system.
(2) How smart grid systems can help in restoring the
integrity of the Nation's electricity system subsequent
to disruptions.
(3) How smart grid systems can facilitate nationwide,
interoperable emergency communications and control of
the Nation's electricity system during times of
localized, regional, or nationwide emergency.
(4) What risks must be taken into account that smart
grid systems may, if not carefully created and managed,
create vulnerability to security threats of any sort,
and how such risks may be mitigated.
(b) Consultation.--The Secretary shall consult with other
Federal agencies in the development of the report under this
section, including but not limited to the Secretary of Homeland
Security, the Federal Energy Regulatory Commission, and the
Electric Reliability Organization certified by the Commission
under section 215(c) of the Federal Power Act (16 U.S.C. 824o)
as added by section 1211 of the Energy Policy Act of 2005
(Public Law 109-58; 119 Stat. 941).
TITLE XIV--RENEWABLE ELECTRICITY STANDARD
SEC. 1401. RENEWABLE ELECTRICITY STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory
Policies Act of 1978 is amended by adding at the end the
following:
``SEC. 610. RENEWABLE ELECTRICITY STANDARD.
``(a) Definitions.--For purposes of this section:
``(1) Biomass.--
``(A) In general.--The term `biomass' means
each of the following:
``(i) Cellulosic (plant fiber)
organic materials from a plant that is
planted for the purpose of being used
to produce energy.
``(ii) Nonhazardous, plant or algal
matter that is derived from any of the
following:
``(I) An agricultural crop,
crop byproduct or residue
resource.
``(II) Waste such as
landscape or right-of-way
trimmings (but not including
municipal solid waste,
recyclable postconsumer waste
paper, painted, treated, or
pressurized wood, wood
contaminated with plastic or
metals).
``(iii) Animal waste or animal
byproducts.
``(iv) Landfill methane.
``(B) National forest lands and certain other
public lands.--With respect to organic material
removed from National Forest System lands or
from public lands administered by the Secretary
of the Interior, the term `biomass' covers only
organic material from (i) ecological forest
restoration; (ii) pre-commercial thinnings;
(iii) brush; (iv) mill residues; and (v) slash.
``(C) Exclusion of certain federal lands.--
Notwithstanding subparagraph (B), material or
matter that would otherwise qualify as biomass
are not included in the term biomass if they
are located on the following Federal lands:
``(i) Federal land containing old
growth forest or late successional
forest unless the Secretary of the
Interior or the Secretary of
Agriculture determines that the removal
of organic material from such land is
appropriate for the applicable forest
type and maximizes the retention of
late-successional and large and old
growth trees, late-successional and old
growth forest structure, and late-
successional and old growth forest
composition.
``(ii) Federal land on which the
removal of vegetation is prohibited,
including components of the National
Wilderness Preservation System.
``(iii) Wilderness Study Areas.
``(iv) Inventoried roadless areas.
``(v) Components of the National
Landscape Conservation System.
``(vi) National Monuments.
``(2) Eligible facility.--The term `eligible
facility' means--
``(A) a facility for the generation of
electric energy from a renewable energy
resource that is placed in service on or after
January 1, 2001; or
``(B) a repowering or cofiring increment.
``(3) Existing facility.--The term `existing
facility' means a facility for the generation of
electric energy from a renewable energy resource that
is not an eligible facility.
``(4) Incremental hydropower.--The term `incremental
hydropower' means additional generation that is
achieved from increased efficiency or additions of
capacity made on or after January 1, 2001, or the
effective date of an existing applicable State
renewable portfolio standard program at a hydroelectric
facility that was placed in service before that date.
``(5) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any
Indian reservation, pueblo, or rancheria;
``(B) any land not within the limits of any
Indian reservation, pueblo, or rancheria title
to which was on the date of enactment of this
paragraph either held by the United States for
the benefit of any Indian tribe or individual
or held by any Indian tribe or individual
subject to restriction by the United States
against alienation;
``(C) any dependent Indian community; or
``(D) any land conveyed to any Alaska Native
corporation under the Alaska Native Claims
Settlement Act.
``(6) Indian tribe.--The term `Indian tribe' means
any Indian tribe, band, nation, or other organized
group or community, including any Alaskan Native
village or regional or village corporation as defined
in or established pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), which is
recognized as eligible for the special programs and
services provided by the United States to Indians
because of their status as Indians.
``(7) Renewable energy.--The term `renewable energy'
means electric energy generated by a renewable energy
resource.
``(8) Renewable energy resource.--The term `renewable
energy resource' means solar, wind, ocean, tidal,
geothermal energy, biomass, landfill gas, incremental
hydropower, or hydrokinetic energy.
``(9) Repowering or cofiring increment.--The term
`repowering or cofiring increment' means--
``(A) the additional generation from a
modification that is placed in service on or
after January 1, 2001, to expand electricity
production at a facility used to generate
electric energy from a renewable energy
resource;
``(B) the additional generation above the
average generation in the 3 years preceding the
date of enactment of this section at a facility
used to generate electric energy from a
renewable energy resource or to cofire biomass
that was placed in service before the date of
enactment of this section: or
``(C) the portion of the electric generation
from a facility placed in service on or after
January 1, 2001, or a modification to a
facility placed in service before the date of
enactment of this section made on or after
January 1, 2001, associated with cofiring
biomass.
``(10) Retail electric supplier.--(A) The term
`retail electric supplier' means a person that sells
electric energy to electric consumers (other than
consumers in Hawaii) that sold not less than 1,000,000
megawatt-hours of electric energy to electric consumers
for purposes other than resale during the preceding
calendar year. For purposes of this section, a person
that sells electric energy to electric consumers that,
in combination with the sales of any affiliate
organized after the date of enactment of this section,
sells not less that 1,000,000 megawatt hours of
electric energy to consumers for purposes other than
resale shall qualify as a retail electric supplier. For
purposes of this paragraph, sales by any person to a
parent company or to other affiliates of such person
shall not be treated as sales to electric consumers.
``(B) Such term does not include the United States, a
State or any political subdivision of a State, or any
agency, authority, or instrumentality of any one or
more of the foregoing, or a rural electric cooperative,
except that a political subdivision of a State, or an
agency, authority or instrumentality of the United
States, a State or a political subdivision of a State,
or a rural electric cooperative that sells electric
energy to electric consumers or any other entity that
sells electric energy to electric consumers that would
not otherwise qualify as a retail electric supplier
shall be deemed a retail electric supplier if such
entity notifies the Secretary that it voluntarily
agrees to participate in the Federal renewable
electricity standard program.
``(11) Retail electric supplier's base amount.--The
term `retail electric supplier's base amount' means the
total amount of electric energy sold by the retail
electric supplier, expressed in terms of kilowatt
hours, to electric customers for purposes other than
resale during the most recent calendar year for which
information is available, excluding--
``(A) electric energy that is not incremental
hydropower generated by a hydroelectric
facility; and
``(B) electricity generated through the
incineration of municipal solid waste.
``(b) Compliance.--For each calendar year beginning in
calendar year 2010, each retail electric supplier shall meet
the requirements of subsection (c) by submitting to the
Secretary, not later than April 1 of the following calendar
year, one or more of the following:
``(1) Federal renewable energy credits issued under
subsection (e).
``(2) Federal energy efficiency credits issued under
subsection (i), except that Federal energy efficiency
credits may not be used to meet more than 27 percent of
the requirements of subsection (c) in any calendar
year. Energy efficiency credits may only be used for
compliance in a State where the Governor has petitioned
the Secretary pursuant to subjection (i)(2).
``(3) Certification of the renewable energy generated
and electricity savings pursuant to the funds
associated with State compliance payments as specified
in subsection (e)(3)(G).
``(4) Alternative compliance payments pursuant to
subsection (j).
``(c) Required Annual Percentage.--For calendar years 2010
through 2039, the required annual percentage of the retail
electric supplier's base amount that shall be generated from
renewable energy resources, or otherwise credited towards such
percentage requirement pursuant to subsection (d), shall be the
percentage specified in the following table:
Required annual
``Calendar Years percentage
2010.................................................. 2.75
2011.................................................. 2.75
2012.................................................. 3.75
2013.................................................. 4.5
2014.................................................. 5.5
2015.................................................. 6.5
2016.................................................. 7.5
2017.................................................. 8.25
2018.................................................. 10.25
2019.................................................. 12.25
2020 and thereafter through 2039...................... 15
``(d) Renewable Energy and Energy Efficiency Credits.--(1) A
retail electric supplier may satisfy the requirements of
subsection (b)(1) through the submission of Federal renewable
energy credits--
``(A) issued to the retail electric supplier under
subsection (e);
``(B) obtained by purchase or exchange under
subsection (f) or (g); or
``(C) borrowed under subsection (h).
``(2) A retail electric supplier may satisfy the requirements
of subsection (b)(2) through the submission of Federal energy
efficiency credits issued to the retail electric supplier
obtained by purchase or exchange pursuant to subsection (i).
``(3) A Federal renewable energy credit may be counted toward
compliance with subsection (b)(1) only once. A Federal energy
efficiency credit may be counted toward compliance with
subsection (b)(2) only once.
``(e) Issuance of Federal Renewable Energy Credits.--(1) The
Secretary shall establish by rule, not later than 1 year after
the date of enactment of this section, a program to verify and
issue Federal renewable energy credits to generators of
renewable energy, track their sale, exchange and retirement and
to enforce the requirements of this section. To the extent
possible, in establishing such program, the Secretary shall
rely upon existing and emerging State or regional tracking
systems that issue and track non-Federal renewable energy
credits.
``(2) An entity that generates electric energy through the
use of a renewable energy resource may apply to the Secretary
for the issuance of renewable energy credits. The applicant
must demonstrate that the electric energy will be transmitted
onto the grid or, in the case of a generation offset, that the
electric energy offset would have otherwise been consumed on
site. The application shall indicate--
``(A) the type of renewable energy resource used to
produce the electricity;
``(B) the location where the electric energy was
produced; and
``(C) any other information the Secretary determines
appropriate.
``(3)(A) Except as provided in subparagraphs (B), (C), and
(D), the Secretary shall issue to a generator of electric
energy one Federal renewable energy credit for each kilowatt
hour of electric energy generated by the use of a renewable
energy resource at an eligible facility.
``(B) For purpose of compliance with this section, Federal
renewable energy credits for incremental hydropower shall be
based, on the increase in average annual generation resulting
from the efficiency improvements or capacity additions. The
incremental generation shall be calculated using the same water
flow information used to determine a historic average annual
generation baseline for the hydroelectric facility and
certified by the Secretary or the Federal Energy Regulatory
Commission. The calculation of the Federal renewable energy
credits for incremental hydropower shall not be based on any
operational changes at the hydroelectric facility not directly
associated with the efficiency improvements or capacity
additions.
``(C) The Secretary shall issue 2 renewable energy credits
for each kilowatt hour of electric energy generated and
supplied to the grid in that calendar year through the use of a
renewable energy resource at an eligible facility located on
Indian land. For purposes of this paragraph, renewable energy
generated by biomass cofired with other fuels is eligible for
two credits only if the biomass was grown on such land.
``(D) For electric energy generated by a renewable energy
resource at an on-site eligible facility no larger than one
megawatt in capacity and used to offset part or all of the
customer's requirements for electric energy, the Secretary
shall issue 3 renewable energy credits to such customer for
each kilowatt hour generated.
``(E) In the case of an on-site eligible facility on Indian
land no more than 3 credits per kilowatt hour may be issued.
``(F) If both a renewable energy resource and a non-renewable
energy resource are used to generate the electric energy, the
Secretary shall issue the Federal renewable energy credits
based on the proportion of the renewable energy resources used.
``(G) When a generator has sold electric energy generated
through the use of a renewable energy resource to a retail
electric supplier under a contract for power from an existing
facility, and the contract has not determined ownership of the
Federal renewable energy credits associated with such
generation, the Secretary shall issue such Federal renewable
energy credits to the retail electric supplier for the duration
of the contract.
``(H) Payments made by a retail electricity supplier,
directly or indirectly, to a State for compliance with a State
renewable portfolio standard program, or for an alternative
compliance mechanism, shall be valued at one credit per
kilowatt hour for the purpose of subsection (b)(2) based on the
amount of electric energy generation from renewable resources
and electricity savings up to 27 percent of the utility's
requirement that results from those payments.
``(f) Existing Facilities.--The Secretary shall ensure that a
retail electric supplier that acquires Federal renewable energy
credits associated with the generation of renewable energy from
an existing facility may use such credits for purpose of its
compliance with subsection (b)(1). Such credits may not be
sold, exchanged, or transferred for the purpose of compliance
by another retail electric supplier.
``(g) Renewable Energy Credit Trading.--(1) A Federal
renewable energy credit, may be sold, transferred or exchanged
by the entity to whom issued or by any other entity who
acquires the Federal renewable energy credit, except for those
renewable energy credits from existing facilities. A Federal
renewable energy credit for any year that is not submitted to
satisfy the minimum renewable generation requirement of
subsection (c) for that year may be carried forward for use
pursuant to subsection (b)(1) within the next 3 years.
``(2) A Federally owned or cooperatively owned utility, or a
State or subdivision thereof, that is not a retail electric
supplier that generates electric energy by the use of a
renewable energy resource at an eligible facility may only
sell, transfer or exchange a Federal renewable energy credit to
a cooperatively owned utility or an agency, authority or
instrumentality of a State or political subdivision of a State
that is a retail electric supplier that has acquired the
electric energy associated with the credit.
``(3) The Secretary may delegate to an appropriate market-
making entity the administration of a national tradeable
renewable energy credit market and a nation energy efficiency
credit market for purposes of creating a transparent national
market for the sale or trade of renewable energy credits and a
transparent national market for the sale or trade of Federal
energy efficiency credits.
``(h) Renewable Energy Credit Borrowing.--At any time before
the end of calendar year 2012, a retail electric supplier that
has reason to believe it will not be able to fully comply with
subsection (b) may--
``(1) submit a plan to the Secretary demonstrating
that the retail electric supplier will earn sufficient
Federal renewable energy credits and Federal energy
efficiency credits within the next 3 calendar years
which, when taken into account, will enable the retail
electric supplier to meet the requirements of
subsection (b) for calendar year 2012 and the
subsequent calendar years involved; and
``(2) upon the approval of the plan by the Secretary,
apply Federal renewable energy credits and Federal
energy efficiency credits that the plan demonstrates
will be earned within the next 3 calendar years to meet
the requirements of subsection (b) for each calendar
year involved.
The retail electric supplier must repay all of the borrowed
Federal renewable energy credits and Federal energy efficiency
credits by submitting an equivalent number of Federal renewable
energy credits and Federal energy efficiency credits, in
addition to those otherwise required under subsection (b), by
calendar year 2020 or any earlier deadlines specified in the
approved plan. Failure to repay the borrowed Federal renewable
energy credits and Federal energy efficiency credits shall
subject the retail electric supplier to civil penalties under
subsection (i) for violation of the requirements of subsection
(b) for each calendar year involved.
``(i) Energy Efficiency Credits.--
``(1) Definitions.--In this subsection--
``(A) Customer facility savings.--The term
`customer facility savings' means a reduction
in end-use electricity at a facility of an end-
use consumer of electricity served by a retail
electric supplier, as compared to--
``(i) consumption at the facility
during a base year;
``(ii) in the case of new equipment
(regardless of whether the new
equipment replaces existing equipment
at the end of the useful life of the
existing equipment), consumption by the
new equipment of average efficiency; or
``(iii) in the case of a new
facility, consumption at a reference
facility.
``(B) Electricity savings.--The term
`electricity savings' means--
``(i) customer facility savings of
electricity consumption adjusted to
reflect any associated increase in fuel
consumption at the facility;
``(ii) reductions in distribution
system losses of electricity achieved
by a retail electricity distributor, as
compared to losses during the base
years;
``(iii) the output of new combined
heat and power systems, to the extent
provided under paragraph (5); and
``(iv) recycled energy savings.
``(C) Qualifying electricity savings.--The
term `qualifying electricity savings' means
electricity saving that meet the measurement
and verification requirements of paragraph (4).
``(D) Recycled energy savings.--The term
`recycled energy savings' means a reduction in
electricity consumption that is attributable to
electrical or mechanical power, or both,
produced by modifying an industrial or
commercial system that was in operation before
July 1, 2007, in order to recapture energy that
would otherwise be wasted.
``(2) Petition.--The Governor of a State may petition
the Secretary to allow up to 27 percent of the
requirements of a retail electric supplier under
subsection (c) in the State to be met by submitting
Federal energy efficiency credits issued pursuant to
this subsection.
``(3) Issuance of credits.--(A) Upon petition by the
Governor, the Secretary shall issue energy efficiency
credits for electricity savings described in
subparagraph (B) achieved in States described in
paragraph (2) in accordance with this subsection.
``(B) In accordance with regulations promulgated by
the Secretary, the Secretary shall issue credits for--
``(i) qualified electricity savings achieved
by a retail electric supplier in a calendar
year; and
``(ii) qualified electricity savings achieved
by other entities if--
``(I) the measures used to achieve
the qualifying electricity savings were
installed or place in operation by the
entity seeking the credit or the
designated agent of the entity; and
``(II) no retail electric supplier
paid a substantial portion of the cost
of achieving the qualified electricity
savings (unless the retail electric
supplier has waived any entitlement to
the credit).
``(4) Measurement and verification of electricity
savings.--Not later than June 30, 2009, the Secretary
shall promulgate regulations regarding the measurement
and verification of electricity savings under this
subsection, including regulations covering--
``(A) procedures and standards for defining
and measuring electricity savings that will be
eligible to receive credits under paragraph
(3), which shall--
``(i) specify the types of energy
efficiency and energy conservation that
will be eligible for the credits;
``(ii) require that energy
consumption for customer facilities or
portions of facilities in the
applicable base and current years be
adjusted, as appropriate, to account
for changes in weather, level of
production, and building area;
``(iii) account for the useful life
of electricity savings measures;
``(iv) include specified electricity
savings values for specific, commonly-
used efficiency measures;
``(v) specify the extent to which
electricity savings attributable to
measures carried out before the date of
enactment of this section are eligible
to receive credits under this
subsection; and
``(vi) exclude electricity savings
that (I) are not properly attributable
to measures carried out by the entity
seeking the credit; or (II) have
already been credited under this
section to another entity;
``(B) procedures and standards for third-
party verification of reported electricity
savings; and
``(C) such requirements for information,
reports, and access to facilities as may be
necessary to carry out this subsection.
``(5) Combined heat and power.--Under regulations
promulgated by the Secretary, the increment of
electricity output of a new combined heat and power
system that is attributable to the higher efficiency of
the combined system (as compared to the efficiency of
separate production of the electric and thermal
outputs), shall be considered electricity savings under
this subsection.
``(j) Enforcement.--A retail electric supplier that does not
comply with subsection (b) shall be liable for the payment of a
civil penalty. That penalty shall be calculated on the basis of
the number of kilowatt-hours represented by the retail electric
supplier's failure to comply with subsection (b), multiplied by
the lesser of 4.5 cents (adjusted for inflation for such
calendar year, based on the Gross Domestic Product Implicit
Price Deflator) or 300 percent of the average market value of
Federal renewable energy credits and energy efficiency credits
for the compliance period. Any such penalty shall be due and
payable without demand to the Secretary as provided in the
regulations issued under subsection (e).
``(k) Alternative Compliance Payments.--The Secretary shall
accept payment equal to the lesser of:
``(1) 200 percent of the average market value of
Federal renewable energy credits and Federal energy
efficiency credits for the applicable compliance
period; or
``(2) 2.5 cents per kilowatt hour adjusted on January
1 of each year following calendar year 2006 based on
the Gross Domestic Product Implicit Price Deflator,
as a means of compliance under subsection (b)(4)
``(l) Information Collection.--The Secretary may collect the
information necessary to verify and audit--
``(1) the annual renewable energy generation of any
retail electric supplier, Federal renewable energy
credits submitted by a retail electric supplier
pursuant to subsection (b)(1) and Federal energy
efficiency credits submitted by a retail electric
supplier pursuant to subsection (b)(2);
``(2) annual electricity savings achieved pursuant to
subsection (i);
``(3) the validity of Federal renewable energy
credits submitted for compliance by a retail electric
supplier to the Secretary; and
``(4) the quantity of electricity sales of all retail
electric suppliers.
``(m) Environmental Savings Clause.--Incremental hydropower
shall be subject to all applicable environmental laws and
licensing and regulatory requirements.
``(n) State Programs.--(1) Nothing in this section diminishes
any authority of a State or political subdivision of a State
to--
``(A) adopt or enforce any law or
regulation respecting renewable energy
or energy efficiency, including but not
limited to programs that exceed the
required amount of renewable energy or
energy efficiency under this section,
or
``(B) regulate the acquisition and
disposition of Federal renewable energy
credits and Federal energy efficiency
credits by retail electric suppliers.
No law or regulation referred to in subparagraph (A)
shall relieve any person of any requirement otherwise
applicable under this section. The Secretary, in
consultation with States having renewable energy
programs and energy efficiency programs, shall preserve
the integrity of such State programs, including
programs that exceed the required amount of renewable
energy and energy efficiency under this section, and
shall facilitate coordination between the Federal
program and State programs.
``(2) In the rule establishing the program under this
section, the Secretary shall incorporate common elements of
existing renewable energy and energy efficiency programs,
including State programs, to ensure administrative ease, market
transparency and effective enforcement. The Secretary shall
work with the States to minimize administrative burdens and
costs to retail electric suppliers.
``(o) Recovery of Costs.--An electric utility whose sales of
electric energy are subject to rate regulation, including any
utility whose rates are regulated by the Commission and any
State regulated electric utility, shall not be denied the
opportunity to recover the full amount of the prudently
incurred incremental cost of renewable energy and energy
efficiency obtained to comply with the requirements of
subsection (b). For purposes of this subsection, the
definitions in section 3 of this Act shall apply to the terms
electric utility, State regulated electric utility, State
agency, Commission, and State regulatory authority.
``(p) Program Review.--The Secretary shall enter into a
contract with the National Academy of Sciences to conduct a
comprehensive evaluation of all aspects of the program
established under this section, within 8 years of enactment of
this section. The study shall include an evaluation of--
``(1) the effectiveness of the program in increasing
the market penetration and lowering the cost of the
eligible renewable energy and energy efficiency
technologies;
``(2) the opportunities for any additional
technologies and sources of renewable energy and energy
efficiency emerging since enactment of this section;
``(3) the impact on the regional diversity and
reliability of supply sources, including the power
quality benefits of distributed generation;
``(4) the regional resource development relative to
renewable potential and reasons for any under
investment in renewable resources; and
``(5) the net cost/benefit of the renewable
electricity standard to the national and State
economies, including retail power costs, economic
development benefits of investment, avoided costs
related to environmental and congestion mitigation
investments that would otherwise have been required,
impact on natural gas demand and price, effectiveness
of green marketing programs at reducing the cost of
renewable resources.
The Secretary shall transmit the results of the evaluation and
any recommendations for modifications and improvements to the
program to Congress not later than January 1, 2016.
``(q) State Renewable Energy and Energy Efficiency Account
Program.--(1) There is established in the Treasury a State
renewable energy and energy efficiency account program.
``(2) All money collected by the Secretary from the
alternative compliance payments under subsection (k) shall be
deposited into the State renewable energy and energy efficiency
account established pursuant to this subsection.
``(3) Proceeds deposited in the State renewable energy and
energy efficiency account shall be used by the Secretary,
subject to annual appropriations, for a program to provide
grants to the State agency responsible for administering a fund
to promote renewable energy generation and energy efficiency
for customers of the State, or an alternative agency designated
by the State, or if no such agency exists, to the State agency
developing State energy conservation plans under section 363 of
the Energy Policy and Conservation Act (42 U.S.C. 6322) for the
purposes of promoting renewable energy production and providing
energy assistance and weatherization services to low-income
consumers.
``(4) The Secretary may issue guidelines and criteria for
grants awarded under this subsection. At least 75 percent of
the funds provided to each State shall be used for promoting
renewable energy production and energy efficiency through
grants, production incentives or other state-approved funding
mechanisms. The funds shall be allocated to the States on the
basis of retail electric sales subject to the Renewable
electricity Standard under this section or through voluntary
participation. State agencies receiving grants under this
section shall maintain such records and evidence of compliance
as the Secretary may require.''.
(b) Table of Contents.--The table of contents for such title
is amended by adding the following new item at the end:
``Sec. 610. Federal renewable electricity standard''.
(c) Sunset.--Section 610 of such title and the item relating
to such section 610 in the table of contents for such title are
each repealed as of December 31, 2039.
TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007
SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This title may be cited as the ``Clean
Renewable Energy and Conservation Tax Act of 2007''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be
made to a section or other provision of the Internal Revenue
Code of 1986.
Subtitle A--Clean Renewable Energy Production Incentives
PART I--PROVISIONS RELATING TO RENEWABLE ENERGY
SEC. 1501. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY CREDIT.
(a) Extension of Credit.--Each of the following provisions of
section 45(d) (relating to qualified facilities) is amended by
striking ``January 1, 2009'' and inserting ``January 1, 2013'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45
is amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in
paragraph (1),'' in paragraph (2) thereof.
(2) Limitation based on investment in facility.--
Subsection (b) of section 45 is amended by inserting
before paragraph (2) the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any
qualified facility originally placed in service
after December 31, 2008, the amount of the
credit determined under subsection (a) for any
taxable year with respect to electricity
produced at such facility shall not exceed the
product of--
``(i) the applicable percentage with
respect to such facility, multiplied by
``(ii) the eligible basis of such
facility.
``(B) Carryforward of unused limitation and
excess credit.--
``(i) Unused limitation.--If the
limitation imposed under subparagraph
(A) with respect to any facility for
any taxable year exceeds the
prelimitation credit for such facility
for such taxable year, the limitation
imposed under subparagraph (A) with
respect to such facility for the
succeeding taxable year shall be
increased by the amount of such excess.
``(ii) Excess credit.--If the
prelimitation credit with respect to
any facility for any taxable year
exceeds the limitation imposed under
subparagraph (A) with respect to such
facility for such taxable year, the
credit determined under subsection (a)
with respect to such facility for the
succeeding taxable year (determined
before the application of subparagraph
(A) for such succeeding taxable year)
shall be increased by the amount of
such excess. With respect to any
facility, no amount may carried forward
under this clause to any taxable year
beginning after the 10-year period
described in subsection (a)(2)(A)(ii)
with respect to such facility.
``(iii) Prelimitation credit.--The
term `prelimitation credit' with
respect to any facility for a taxable
year means the credit determined under
subsection (a) with respect to such
facility for such taxable year,
determined without regard to
subparagraph (A) and after taking into
account any increase for such taxable
year under clause (ii).
``(C) Applicable percentage.--For purposes of
this paragraph--
``(i) In general.--The term
`applicable percentage' means, with
respect to any facility, the
appropriate percentage prescribed by
the Secretary for the month in which
such facility is originally placed in
service.
``(ii) Method of prescribing
applicable percentages.--The applicable
percentages prescribed by the Secretary
for any month under clause (i) shall be
percentages which yield over a 10-year
period amounts of limitation under
subparagraph (A) which have a present
value equal to 35 percent of the
eligible basis of the facility.
``(iii) Method of discounting.--The
present value under clause (ii) shall
be determined--
``(I) as of the last day of
the 1st year of the 10-year
period referred to in clause
(ii),
``(II) by using a discount
rate equal to the greater of
110 percent of the Federal
long-term rate as in effect
under section 1274(d) for the
month preceding the month for
which the applicable percentage
is being prescribed, or 4.5
percent, and
``(III) by taking into
account the limitation under
subparagraph (A) for any year
on the last day of such year.
``(D) Eligible basis.--For purposes of this
paragraph--
``(i) In general.--The term `eligible
basis' means, with respect to any
facility, the sum of--
``(I) the basis of such
facility determined as of the
time that such facility is
originally placed in service,
and
``(II) the portion of the
basis of any shared qualified
property which is properly
allocable to such facility
under clause (ii).
``(ii) Rules for allocation.--For
purposes of subclause (II) of clause
(i), the basis of shared qualified
property shall be allocated among all
qualified facilities which are
projected to be placed in service and
which require utilization of such
property in proportion to projected
generation from such facilities.
``(iii) Shared qualified property.--
For purposes of this paragraph, the
term `shared qualified property' means,
with respect to any facility, any
property described in section
168(e)(3)(B)(vi)--
``(I) which a qualified
facility will require for
utilization of such facility,
and
``(II) which is not a
qualified facility.
``(iv) Special rule relating to
geothermal facilities.--In the case of
any qualified facility using geothermal
energy to produce electricity, the
basis of such facility for purposes of
this paragraph shall be determined as
though intangible drilling and
development costs described in section
263(c) were capitalized rather than
expensed.
``(E) Special rule for first and last year of
credit period.--In the case of any taxable year
any portion of which is not within the 10-year
period described in subsection (a)(2)(A)(ii)
with respect to any facility, the amount of the
limitation under subparagraph (A) with respect
to such facility shall be reduced by an amount
which bears the same ratio to the amount of
such limitation (determined without regard to
this subparagraph) as such portion of the
taxable year which is not within such period
bears to the entire taxable year.
``(F) Election to treat all facilities placed
in service in a year as 1 facility.--At the
election of the taxpayer, all qualified
facilities which are part of the same project
and which are placed in service during the same
calendar year shall be treated for purposes of
this section as 1 facility which is placed in
service at the mid-point of such year or the
first day of the following calendar year.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2),
the amendments made by this section shall apply to
property originally placed in service after December
31, 2008.
(2) Repeal of credit phaseout.--The amendments made
by subsection (b)(1) shall apply to taxable years
ending after December 31, 2008.
SEC. 1502. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE
RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) (relating to
resources) is amended by striking ``and'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(I) marine and hydrokinetic renewable
energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and
hydrokinetic renewable energy' means energy
derived from--
``(i) waves, tides, and currents in
oceans, estuaries, and tidal areas,
``(ii) free flowing water in rivers,
lakes, and streams,
``(iii) free flowing water in an
irrigation system, canal, or other man-
made channel, including projects that
utilize nonmechanical structures to
accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean
temperature (ocean thermal energy
conversion).
``(B) Exceptions.--Such term shall not
include any energy which is derived from any
source which utilizes a dam, diversionary
structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power
production purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45 is
amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing
electricity from marine and hydrokinetic renewable
energy, the term `qualified facility' means any
facility owned by the taxpayer--
``(A) which has a nameplate capacity rating
of at least 150 kilowatts, and
``(B) which is originally placed in service
on or after the date of the enactment of this
paragraph and before January 1, 2013.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is
amended by striking ``or (9)'' and inserting ``(9), or (11)''.
(e) Coordination With Small Irrigation Power.--Paragraph (5)
of section 45(d), as amended by this Act, is amended by
striking ``January 1, 2013'' and inserting ``the date of the
enactment of paragraph (11)''.
(f) Effective Date.--The amendments made by this section
shall apply to electricity produced and sold after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 1503. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II)
and (3)(A)(ii) of section 48(a) (relating to energy
credit) are each amended by striking ``January 1,
2009'' and inserting ``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2016''.
(3) Microturbine property.--Subparagraph (E) of
section 48(c)(2) (relating to qualified microturbine
property) is amended by striking ``December 31, 2008''
and inserting ``December 31, 2016''.
(b) Allowance of Energy Credit Against Alternative Minimum
Tax.--Subparagraph (B) of section 38(c)(4) (relating to
specified credits) is amended by striking ``and'' at the end of
clause (iii), by striking the period at the end of clause (iv)
and inserting ``, and'', and by adding at the end the following
new clause:
``(v) the credit determined under
section 46 to the extent that such
credit is attributable to the energy
credit determined under section 48.''.
(c) Energy Credit for Combined Heat and Power System
Property.--
(1) In general.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of
clause (iii), by inserting ``or'' at the end of clause
(iv), and by adding at the end the following new
clause:
``(v) combined heat and power system
property,''.
(2) Combined heat and power system property.--Section
48 (relating to energy credit; reforestation credit) is
amended by adding at the end the following new
subsection:
``(d) Combined Heat and Power System Property.--For purposes
of subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The
term `combined heat and power system property' means
property comprising a system--
``(A) which uses the same energy source for
the simultaneous or sequential generation of
electrical power, mechanical shaft power, or
both, in combination with the generation of
steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which produces--
``(i) at least 20 percent of its
total useful energy in the form of
thermal energy which is not used to
produce electrical or mechanical power
(or combination thereof), and
``(ii) at least 20 percent of its
total useful energy in the form of
electrical or mechanical power (or
combination thereof),
``(C) the energy efficiency percentage of
which exceeds 60 percent, and
``(D) which is placed in service before
January 1, 2017.
``(2) Limitation.--
``(A) In general.--In the case of combined
heat and power system property with an
electrical capacity in excess of the applicable
capacity placed in service during the taxable
year, the credit under subsection (a)(1)
(determined without regard to this paragraph)
for such year shall be equal to the amount
which bears the same ratio to such credit as
the applicable capacity bears to the capacity
of such property.
``(B) Applicable capacity.--For purposes of
subparagraph (A), the term `applicable
capacity' means 15 megawatts or a mechanical
energy capacity of more than 20,000 horsepower
or an equivalent combination of electrical and
mechanical energy capacities.
``(C) Maximum capacity.--The term `combined
heat and power system property' shall not
include any property comprising a system if
such system has a capacity in excess of 50
megawatts or a mechanical energy capacity in
excess of 67,000 horsepower or an equivalent
combination of electrical and mechanical energy
capacities.
``(3) Special rules.--
``(A) Energy efficiency percentage.--For
purposes of this subsection, the energy
efficiency percentage of a system is the
fraction--
``(i) the numerator of which is the
total useful electrical, thermal, and
mechanical power produced by the system
at normal operating rates, and expected
to be consumed in its normal
application, and
``(ii) the denominator of which is
the lower heating value of the fuel
sources for the system.
``(B) Determinations made on btu basis.--The
energy efficiency percentage and the
percentages under paragraph (1)(B) shall be
determined on a Btu basis.
``(C) Input and output property not
included.--The term `combined heat and power
system property' does not include property used
to transport the energy source to the facility
or to distribute energy produced by the
facility.
``(4) Systems using biomass.--If a system is designed
to use biomass (within the meaning of paragraphs (2)
and (3) of section 45(c) without regard to the last
sentence of paragraph (3)(A)) for at least 90 percent
of the energy source--
``(A) paragraph (1)(C) shall not apply, but
``(B) the amount of credit determined under
subsection (a) with respect to such system
shall not exceed the amount which bears the
same ratio to such amount of credit (determined
without regard to this paragraph) as the energy
efficiency percentage of such system bears to
60 percent.''.
(d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking
``$500'' and inserting ``$1,500''.
(e) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is
amended by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended
by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended
by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(f) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of
section 48(c) are each amended by striking ``paragraph (1)''
and inserting ``subsection (a)''.
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall
take effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to
credits determined under section 46 of the Internal
Revenue Code of 1986 in taxable years beginning after
the date of the enactment of this Act and to carrybacks
of such credits.
(3) Combined heat and power and fuel cell property.--
The amendments made by subsections (c) and (d) shall
apply to periods after the date of the enactment of
this Act, in taxable years ending after such date,
under rules similar to the rules of section 48(m) of
the Internal Revenue Code of 1986 (as in effect on the
day before the date of the enactment of the Revenue
Reconciliation Act of 1990).
(4) Public electric utility property.--The
amendments made by subsection (e) shall apply to
periods after June 20, 2007, in taxable years ending
after such date, under rules similar to the rules of
section 48(m) of the Internal Revenue Code of 1986 (as
in effect on the day before the date of the enactment
of the Revenue Reconciliation Act of 1990).
SEC. 1504. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY
EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) (relating to
maximum credit) is amended by striking ``$2,000'' and
inserting ``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting
``$13,334''.
(c) Credit for Residential Wind Property.--
(1) In general.--Section 25D(a) (relating to
allowance of credit) is amended by striking ``and'' at
the end of paragraph (2), by striking the period at the
end of paragraph (3) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such
year.''.
(2) Limitation.--Section 25D(b)(1) (relating to
maximum credit) is amended by striking ``and'' at the
end of subparagraph (B), by striking the period at the
end of subparagraph (C) and inserting ``, and'', and by
adding at the end the following new subparagraph:
``(D) $500 with respect to each half kilowatt
of capacity (not to exceed $4,000) of wind
turbines for which qualified small wind energy
property expenditures are made.''.
(3) Qualified small wind energy property
expenditures.--
(A) In general.--Section 25D(d) (relating to
definitions) is amended by adding at the end
the following new paragraph:
``(4) Qualified small wind energy property
expenditure.--The term `qualified small wind energy
property expenditure' means an expenditure for property
which uses a wind turbine to generate electricity for
use in connection with a dwelling unit located in the
United States and used as a residence by the
taxpayer.''.
(B) No double benefit.--Section 45(d)(1)
(relating to wind facility) is amended by
adding at the end the following new sentence:
``Such term shall not include any facility with
respect to which any qualified small wind
energy property expenditure (as defined in
subsection (d)(4) of section 25D) is taken into
account in determining the credit under such
section.''.
(4) Maximum expenditures in case of joint
occupancy.--Section 25D(e)(4)(A) (relating to maximum
expenditures) is amended by striking ``and'' at the end
of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, and'', and by adding at
the end the following new clause:
``(iv) $1,667 in the case of each
half kilowatt of capacity of wind
turbines for which qualified small wind
energy property expenditures are
made.''.
(d) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is
amended to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of
Unused Credit.--
``(1) Limitation based on amount of tax.--In the case
of a taxable year to which section 26(a)(2) does not
apply, the credit allowed under subsection (a) for the
taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax
imposed by section 55, over
``(B) the sum of the credits allowable under
this subpart (other than this section) and
section 27 for the taxable year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal
credits allowed against regular and alternative
minimum tax.--In the case of a taxable year to
which section 26(a)(2) applies, if the credit
allowable under subsection (a) exceeds the
limitation imposed by section 26(a)(2) for such
taxable year reduced by the sum of the credits
allowable under this subpart (other than this
section), such excess shall be carried to the
succeeding taxable year and added to the credit
allowable under subsection (a) for such
succeeding taxable year.
``(B) Rule for other years.--In the case of a
taxable year to which section 26(a)(2) does not
apply, if the credit allowable under subsection
(a) exceeds the limitation imposed by paragraph
(1) for such taxable year, such excess shall be
carried to the succeeding taxable year and
added to the credit allowable under subsection
(a) for such succeeding taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by
inserting ``and section 25D'' after ``this
section''.
(B) Section 24(b)(3)(B) is amended by
striking ``and 25B'' and inserting ``, 25B, and
25D''.
(C) Section 25B(g)(2) is amended by striking
``section 23'' and inserting ``sections 23 and
25D''.
(D) Section 26(a)(1) is amended by striking
``and 25B'' and inserting ``25B, and 25D''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall
apply to expenditures after December 31, 2007.
(2) Allowance against alternative minimum tax.--
(A) In general.--The amendments made by
subsection (d) shall apply to taxable years
beginning after the date of the enactment of
this Act.
(B) Application of egtrra sunset.--The
amendments made by subparagraphs (A) and (B) of
subsection (d)(2) shall be subject to title IX
of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner
as the provisions of such Act to which such
amendments relate.
SEC. 1505. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT FERC
AND STATE ELECTRIC RESTRUCTURING POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i)
(relating to special rule for sales or dispositions to
implement Federal Energy Regulatory Commission or State
electric restructuring policy) is amended by inserting
``(before January 1, 2010, in the case of a qualified
electric utility)'' after ``January 1, 2008''.
(2) Qualified electric utility.--Subsection (i) of
section 451 is amended by redesignating paragraphs (6)
through (10) as paragraphs (7) through (11),
respectively, and by inserting after paragraph (5) the
following new paragraph:
``(6) Qualified electric utility.--For purposes of
this subsection, the term `qualified electric utility'
means a person that, as of the date of the qualifying
electric transmission transaction, is vertically
integrated, in that it is both--
``(A) a transmitting utility (as defined in
section 3(23) of the Federal Power Act (16
U.S.C. 796(23)) with respect to the
transmission facilities to which the election
under this subsection applies, and
``(B) an electric utility (as defined in
section 3(22) of the Federal Power Act (16
U.S.C. 796(22)).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is
amended by striking ``December 31, 2007'' and inserting ``the
date which is 4 years after the close of the taxable year in
which the transaction occurs''.
(c) Property Located Outside the United States Not Treated as
Exempt Utility Property.--Paragraph (5) of section 451(i) is
amended by adding at the end the following new subparagraph:
``(C) Exception for property located outside
the united states.--The term `exempt utility
property' shall not include any property which
is located outside the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a)
shall apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment
made by subsection (b) shall take effect as if included
in section 909 of the American Jobs Creation Act of
2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall
apply to transactions after the date of the enactment
of this Act.
SEC. 1506. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the
end the following new subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified
tax credit bond on one or more credit allowance dates of the
bond during any taxable year, there shall be allowed as a
credit against the tax imposed by this chapter for the taxable
year an amount equal to the sum of the credits determined under
subsection (b) with respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit
determined under this subsection with respect to any
credit allowance date for a qualified tax credit bond
is 25 percent of the annual credit determined with
respect to such bond.
``(2) Annual credit.--The annual credit determined
with respect to any qualified tax credit bond is the
product of--
``(A) the applicable credit rate, multiplied
by
``(B) the outstanding face amount of the
bond.
``(3) Applicable credit rate.--For purposes of
paragraph (2), the applicable credit rate is 70 percent
of the rate which the Secretary estimates will permit
the issuance of qualified tax credit bonds with a
specified maturity or redemption date without discount
and without interest cost to the qualified issuer. The
applicable credit rate with respect to any qualified
tax credit bond shall be determined as of the first day
on which there is a binding, written contract for the
sale or exchange of the bond.
``(4) Special rule for issuance and redemption.--In
the case of a bond which is issued during the 3-month
period ending on a credit allowance date, the amount of
the credit determined under this subsection with
respect to such credit allowance date shall be a
ratable portion of the credit otherwise determined
based on the portion of the 3-month period during which
the bond is outstanding. A similar rule shall apply
when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under
subsection (a) for any taxable year shall not exceed
the excess of--
``(A) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax
imposed by section 55, over
``(B) the sum of the credits allowable under
this part (other than subpart C and this
subpart).
``(2) Carryover of unused credit.--If the credit
allowable under subsection (a) exceeds the limitation
imposed by paragraph (1) for such taxable year, such
excess shall be carried to the succeeding taxable year
and added to the credit allowable under subsection (a)
for such taxable year (determined before the
application of paragraph (1) for such succeeding
taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this
section--
``(1) Qualified tax credit bond.--The term `qualified
tax credit bond' means a new clean renewable energy
bond which is part of an issue that meets the
requirements of paragraphs (2), (3), (4), (5), and (6).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated
as meeting the requirements of this paragraph
if, as of the date of issuance, the issuer
reasonably expects--
``(i) 100 percent or more of the
available project proceeds to be spent
for 1 or more qualified purposes within
the 3-year period beginning on such
date of issuance, and
``(ii) a binding commitment with a
third party to spend at least 10
percent of such available project
proceeds will be incurred within the 6-
month period beginning on such date of
issuance.
``(B) Failure to spend required amount of
bond proceeds within 3 years.--
``(i) In general.--To the extent that
less than 100 percent of the available
project proceeds of the issue are
expended by the close of the
expenditure period for 1 or more
qualified purposes, the issuer shall
redeem all of the nonqualified bonds
within 90 days after the end of such
period. For purposes of this paragraph,
the amount of the nonqualified bonds
required to be redeemed shall be
determined in the same manner as under
section 142.
``(ii) Expenditure period.--For
purposes of this subpart, the term
`expenditure period' means, with
respect to any issue, the 3-year period
beginning on the date of issuance. Such
term shall include any extension of
such period under clause (iii).
``(iii) Extension of period.--Upon
submission of a request prior to the
expiration of the expenditure period
(determined without regard to any
extension under this clause), the
Secretary may extend such period if the
issuer establishes that the failure to
expend the proceeds within the original
expenditure period is due to reasonable
cause and the expenditures for
qualified purposes will continue to
proceed with due diligence.
``(C) Qualified purpose.--For purposes of
this paragraph, the term `qualified purpose'
means a purpose specified in section 54B(a)(1).
``(D) Reimbursement.--For purposes of this
subtitle, available project proceeds of an
issue shall be treated as spent for a qualified
purpose if such proceeds are used to reimburse
the issuer for amounts paid for a qualified
purpose after the date that the Secretary makes
an allocation of bond limitation with respect
to such issue, but only if--
``(i) prior to the payment of the
original expenditure, the issuer
declared its intent to reimburse such
expenditure with the proceeds of a
qualified tax credit bond,
``(ii) not later than 60 days after
payment of the original expenditure,
the issuer adopts an official intent to
reimburse the original expenditure with
such proceeds, and
``(iii) the reimbursement is made not
later than 18 months after the date the
original expenditure is paid.
``(3) Reporting.--An issue shall be treated as
meeting the requirements of this paragraph if the
issuer of qualified tax credit bonds submits reports
similar to the reports required under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated
as meeting the requirements of this paragraph
if the issuer satisfies the requirements of
section 148 with respect to the proceeds of the
issue.
``(B) Special rule for investments during
expenditure period.--An issue shall not be
treated as failing to meet the requirements of
subparagraph (A) by reason of any investment of
available project proceeds during the
expenditure period.
``(C) Special rule for reserve funds.--An
issue shall not be treated as failing to meet
the requirements of subparagraph (A) by reason
of any fund which is expected to be used to
repay such issue if--
``(i) such fund is funded at a rate
not more rapid than equal annual
installments,
``(ii) such fund is funded in a
manner reasonably expected to result in
an amount not greater than an amount
necessary to repay the issue, and
``(iii) the yield on such fund is not
greater than the discount rate
determined under paragraph (5)(B) with
respect to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall be treated
as meeting the requirements of this paragraph
if the maturity of any bond which is part of
such issue does not exceed the maximum term
determined by the Secretary under subparagraph
(B).
``(B) Maximum term.--During each calendar
month, the Secretary shall determine the
maximum term permitted under this paragraph for
bonds issued during the following calendar
month. Such maximum term shall be the term
which the Secretary estimates will result in
the present value of the obligation to repay
the principal on the bond being equal to 50
percent of the face amount of such bond. Such
present value shall be determined using as a
discount rate the average annual interest rate
of tax-exempt obligations having a term of 10
years or more which are issued during the
month. If the term as so determined is not a
multiple of a whole year, such term shall be
rounded to the next highest whole year.
``(6) Prohibition on financial conflicts of
interest.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer certifies
that--
``(A) applicable State and local law
requirements governing conflicts of interest
are satisfied with respect to such issue, and
``(B) if the Secretary prescribes additional
conflicts of interest rules governing the
appropriate Members of Congress, Federal,
State, and local officials, and their spouses,
such additional rules are satisfied with
respect to such issue.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit
allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District
of Columbia and any possession of the United States.
``(4) Available project proceeds.--The term
`available project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of
an issue, over
``(ii) the issuance costs financed by
the issue (to the extent that such
costs do not exceed 2 percent of such
proceeds), and
``(B) the proceeds from any investment of the
excess described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this
subtitle, the credit determined under subsection (a) shall be
treated as interest which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a tax
credit bond held by an S corporation or partnership, the
allocation of the credit allowed by this section to the
shareholders of such corporation or partners of such
partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real
Estate Investment Trusts.--If any qualified tax credit bond is
held by a regulated investment company or a real estate
investment trust, the credit determined under subsection (a)
shall be allowed to shareholders of such company or
beneficiaries of such trust (and any gross income included
under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries)
under procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations prescribed
by the Secretary--
``(1) In general.--There may be a separation
(including at issuance) of the ownership of a qualified
tax credit bond and the entitlement to the credit under
this section with respect to such bond. In case of any
such separation, the credit under this section shall be
allowed to the person who on the credit allowance date
holds the instrument evidencing the entitlement to the
credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a
separation described in paragraph (1), the rules of
section 1286 shall apply to the qualified tax credit
bond as if it were a stripped bond and to the credit
under this section as if it were a stripped coupon.
``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of this
subpart, the term `new clean renewable energy bond' means any
bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds
of such issue are to be used for capital expenditures
incurred by public power providers, governmental
bodies, or cooperative electric companies for one or
more qualified renewable energy facilities,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of
this section.
``(b) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount
of bonds which may be designated under subsection (a)
by any issuer shall not exceed the limitation amount
allocated under this subsection to such issuer.
``(2) National limitation on amount of bonds
designated.--There is a national new clean renewable
energy bond limitation of $2,000,000,000 which shall be
allocated by the Secretary as provided in paragraph
(3), except that--
``(A) not more than 33 \1/3\ percent thereof
may be allocated to qualified projects of
public power providers,
``(B) not more than 33 \1/3\ percent thereof
may be allocated to qualified projects of
governmental bodies, and
``(C) not more than 33 \1/3\ percent thereof
may be allocated to qualified projects of
cooperative electric companies.
``(3) Method of allocation.--
``(A) Allocation among public power
providers.--After the Secretary determines the
qualified projects of public power providers
which are appropriate for receiving an
allocation of the national new clean renewable
energy bond limitation, the Secretary shall, to
the maximum extent practicable, make
allocations among such projects in such manner
that the amount allocated to each such project
bears the same ratio to the cost of such
project as the limitation under paragraph
(2)(A) bears to the cost of all such projects.
``(B) Allocation among governmental bodies
and cooperative electric companies.--The
Secretary shall make allocations of the amount
of the national new clean renewable energy bond
limitation described in paragraphs (2)(B) and
(2)(C) among qualified projects of governmental
bodies and cooperative electric companies,
respectively, in such manner as the Secretary
determines appropriate.
``(c) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without
regard to paragraphs (8) and (10) thereof and to any
placed in service date) owned by a public power
provider, a governmental body, or a cooperative
electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service
obligation, as such terms are defined in section 217 of
the Federal Power Act (as in effect on the date of the
enactment of this paragraph).
``(3) Governmental body.--The term `governmental
body' means any State or Indian tribal government, or
any political subdivision thereof.
``(4) Cooperative electric company.--The term
`cooperative electric company' means a mutual or
cooperative electric company described in section
501(c)(12) or section 1381(a)(2)(C).
``(5) Clean renewable energy bond lender.--The term
`clean renewable energy bond lender' means a lender
which is a cooperative which is owned by, or has
outstanding loans to, 100 or more cooperative electric
companies and is in existence on February 1, 2002, and
shall include any affiliated entity which is controlled
by such lender.
``(6) Qualified issuer.--The term `qualified issuer'
means a public power provider, a governmental body, a
cooperative electric company, a clean renewable energy
bond lender, or a not-for-profit electric utility which
has received a loan or loan guarantee under the Rural
Electrification Act.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding at
the end the following new paragraph:
``(9) Reporting of credit on qualified tax credit
bonds.--
``(A) In general.--For purposes of subsection
(a), the term `interest' includes amounts
includible in gross income under section 54A
and such amounts shall be treated as paid on
the credit allowance date (as defined in
section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except
as otherwise provided in regulations, in the
case of any interest described in subparagraph
(A) of this paragraph, subsection (b)(4) of
this section shall be applied without regard to
subparagraphs (A), (H), (I), (J), (K), and
(L)(i).
``(C) Regulatory authority.--The Secretary
may prescribe such regulations as are necessary
or appropriate to carry out the purposes of
this paragraph, including regulations which
require more frequent or more detailed
reporting.''.
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each
amended by striking ``subpart C'' and inserting
``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking
``subpart H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and
H'' and inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter
A of chapter 1 is amended by striking ``Certain Bonds''
and inserting ``Clean Renewable Energy Bonds''.
(5) The table of subparts for part IV of subchapter A
of chapter 1 is amended by striking the item relating
to subpart H and inserting the following new items:
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(d) Application of Certain Labor Standards on Projects
Financed Under Tax Credit Bonds.--Subchapter IV of chapter 31
of title 40, United States Code, shall apply to projects
financed with the proceeds of any tax credit bond (as defined
in section 54A of the Internal Revenue Code of 1986).
(e) Effective Dates.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
PART II--PROVISIONS RELATING TO CARBON MITIGATION AND COAL
SEC. 1507. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT
INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48A(a) (relating
to qualifying advanced coal project credit) is amended by
striking ``and'' at the end of paragraph (1), by striking the
period at the end of paragraph (2) and inserting ``, and'', and
by adding at the end the following the paragraph:
``(3) 30 percent of the qualified investment for such
taxable year in the case of projects described in
clauses (iii) or (iv) of subsection (d)(3)(B).''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A)
(relating to aggregate credits) is amended by striking
``$1,300,000,000'' and inserting ``$2,800,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section
48A(d)(3) (relating to aggregate credits) is amended to
read as follows:
``(B) Particular projects.--Of the dollar
amount in subparagraph (A), the Secretary is
authorized to certify--
``(i) $800,000,000 for integrated
gasification combined cycle projects
the application for which is submitted
during the period described in
paragraph (2)(A)(i),
``(ii) $500,000,000 for projects
which use other advanced coal-based
generation technologies the application
for which is submitted during the
period described in paragraph
(2)(A)(i),
``(iii) $1,000,000,000 for integrated
gasification combined cycle projects
the application for which is submitted
during the period described in
paragraph (2)(A)(ii), and
``(iv) $500,000,000 for other
advanced coal-based generation
technology projects the application for
which is submitted during the period
described in paragraph (2)(A)(ii).''.
(2) Application period for additional projects.--
Subparagraph (A) of section 48A(d)(2) (relating to
certification) is amended to read as follows:
``(A) Application period.--Each applicant for
certification under this paragraph shall submit
an application meeting the requirements of
subparagraph (B). An applicant may only submit
an application--
``(i) for an allocation from the
dollar amount specified in clause (i)
or (ii) of paragraph (3)(A) during the
3-year period beginning on the date the
Secretary establishes the program under
paragraph (1), and
``(ii) for an allocation from the
dollar amount specified in clause (iii)
or (iv) of paragraph (3)(A) during the
3-year period beginning at the earlier
of the termination of the period
described in clause (i) or the date
prescribed by the Secretary.''.
(3) Capture and sequestration of carbon dioxide
emissions requirement.--
(A) In general.--Section 48A(e)(1) (relating
to requirements) is amended by striking ``and''
at the end of subparagraph (E), by striking the
period at the end of subparagraph (F) and
inserting ``; and'', and by adding at the end
the following new subparagraph:
``(G) in the case of any project the
application for which is submitted during the
period described in subsection (d)(2)(A)(ii),
the project includes equipment which separates
and sequesters at least 65 percent (70 percent
in the case of an application for reallocated
credits under subsection (d)(4)) of such
project's total carbon dioxide emissions.''.
(B) Highest priority for projects which
sequester carbon dioxide emissions.--Section
48A(e)(3) is amended by striking ``and'' at the
end of subparagraph (A)(iii), by striking the
period at the end of subparagraph (B)(3) and
inserting ``, and'', and by adding at the end
the following new subparagraph:
``(C) give highest priority to projects with
the greatest separation and sequestration
percentage of total carbon dioxide
emissions.''.
(C) Recapture of credit for failure to
sequester.--Section 48A (relating to qualifying
advanced coal project credit) is amended by
adding at the end the following new subsection:
``(h) Recapture of Credit for Failure to Sequester.--The
Secretary shall provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any
project which fails to attain or maintain the separation and
sequestration requirements of subsection (e)(1)(G).''.
(4) Additional priority for research partnerships.--
Section 48A(e)(3)(B), as amended by paragraph (3)(B),
is amended--
(A) by striking ``and'' at the end of clause
(ii),
(B) by redesignating clause (iii) as clause
(iv), and
(C) by inserting after clause (ii) the
following new clause:
``(iii) applicant participants who
have a research partnership with an
eligible educational institution (as
defined in section 529(e)(5)), and''.
(5) Clerical amendment.--Section 48A(e)(3) is amended
by striking ``integrated gasification combined cycle''
in the heading and inserting ``certain''.
(d) Competitive Certification Awards Modification
Authority.--Section 48A (relating to qualifying advanced coal
project credit), as amended by subsection (c)(3), is amended by
adding at the end the following new subsection:
``(i) Competitive Certification Awards Modification
Authority.--In implementing this section or section 48B, the
Secretary is directed to modify the terms of any competitive
certification award and any associated closing agreement where
such modification--
``(1) is consistent with the objectives of such
section,
``(2) is requested by the recipient of the
competitive certification award, and
``(3) involves moving the project site to improve the
potential to capture and sequester carbon dioxide
emissions, reduce costs of transporting feedstock, and
serve a broader customer base,
unless the Secretary determines that the dollar amount of tax
credits available to the taxpayer under such section would
increase as a result of the modification or such modification
would result in such project not being originally certified. In
considering any such modification, the Secretary shall consult
with other relevant Federal agencies, including the Department
of Energy.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall
apply to credits the application for which is submitted
during the period described in section 48A(d)(2)(A)(ii)
of the Internal Revenue Code of 1986 and which are
allocated or reallocated after the date of the
enactment of this Act.
(2) Competitive certification awards modification
authority.--The amendment made by subsection (d) shall
take effect on the date of the enactment of this Act
and is applicable to all competitive certification
awards entered into under section 48A or 48B of the
Internal Revenue Code of 1986, whether such awards were
issued before, on, or after such date of enactment.
(3) Technical amendment.--The amendment made by
subsection (c)(5) shall take effect as if included in
the amendment made by section 1307(b) of the Energy Tax
Incentives Act of 2005.
SEC. 1508. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT
CREDIT.
(a) Credit Rate.--Section 48B(a) (relating to qualifying
gasification project credit) is amended by inserting ``(30
percent in the case of credits allocated under subsection
(d)(1)(B))'' after ``20 percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1)
(relating to qualifying gasification project program) is
amended by striking ``shall not exceed $350,000,000'' and all
that follows and inserting ``shall not exceed--
``(A) $350,000,000, plus
``(B) $500,000,000 for qualifying
gasification projects that include equipment
which separates and sequesters at least 75
percent of such a project's total carbon
dioxide emissions,
under rules similar to the rules of section
48A(d)(4).''.
(c) Recapture of Credit for Failure to Sequester.--Section
48B (relating to qualifying gasification project credit) is
amended by adding at the end the following new subsection:
``(f) Recapture of Credit for Failure to Sequester.--The
Secretary shall provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any
project which fails to attain or maintain the separation and
sequestration requirements for such project under subsection
(d)(1).''.
(d) Selection Priorities.--Section 48B(d) (relating to
qualifying gasification project program) is amended by adding
at the end the following new paragraph:
``(4) Selection priorities.--In determining which
qualifying gasification projects to certify under this
section, the Secretary shall--
``(A) give highest priority to projects with
the greatest separation and sequestration
percentage of total carbon dioxide emissions,
and
``(B) give high priority to applicant
participants who have a research partnership
with an eligible educational institution (as
defined in section 529(e)(5)).''.
(e) Effective Date.--The amendments made by this section
shall apply to credits described in section 48B(d)(1)(B) of the
Internal Revenue Code of 1986 which are allocated or
reallocated after the date of the enactment of this Act.
SEC. 1509. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED CARBON DIOXIDE PIPELINE PROPERTY.
(a) In General.--Section 168(e)(3)(C) (defining 7-year
property) is amended by striking ``and'' at the end of clause
(iv), by redesignating clause (v) as clause (vi), and by
inserting after clause (iv) the following new clause:
``(v) any qualified carbon dioxide
pipeline property--
``(I) the original use of
which commences with the
taxpayer after the date of the
enactment of this clause,
``(II) the original purpose
of which is to transport carbon
dioxide, and
``(III) which is placed in
service before January 1, 2011,
and''.
(b) Definition of Qualified Carbon Dioxide Pipeline
Property.--Section 168(e) (relating to classification of
property) is amended by inserting at the end the following new
paragraph:
``(8) Qualified carbon dioxide pipeline property.--
``(A) In general.--The term `qualified carbon
dioxide pipeline property' means property which
is used in the United States solely to transmit
qualified carbon dioxide from the point of
capture to a secure geological storage or the
point at which such qualified carbon dioxide is
used as a tertiary injectant.
``(B) Definitions and special rules.--For
purposes of this paragraph--
``(i) Qualified carbon dioxide.--The
term `qualified carbon dioxide' means
carbon dioxide captured from an
industrial source which--
``(I) would otherwise be
released into the atmosphere as
industrial emission of
greenhouse gas, and
``(II) is measured at the
source of capture and verified
at the point of disposal or
injection.
``(ii) Secure geological storage.--
The Secretary, in consultation with the
Administrator of the Environmental
Protection Agency, shall establish
regulations for determining adequate
security measures for the geological
storage of carbon dioxide under
subparagraph (A) such that the carbon
dioxide does not escape into the
atmosphere. Such term shall include
storage at deep saline formations and
unminable coal seems under such
conditions as the Secretary may
determine under such regulations.
``(iii) Tertiary injectant.--The term
`tertiary injectant' has the same
meaning as when used within section
193(b)(1).''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of the
enactment of this Act.
SEC. 1510. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN
COAL PRODUCERS AND EXPORTERS.
(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections
(a)(1) and (c) of section 6416 and section 6511
of the Internal Revenue Code of 1986, if--
(i) a coal producer establishes that
such coal producer, or a party related
to such coal producer, exported coal
produced by such coal producer to a
foreign country or shipped coal
produced by such coal producer to a
possession of the United States, the
export or shipment of which was other
than through an exporter who has filed
a claim for a refund under paragraph
(2),
(ii) such coal producer filed a
return on or after October 1, 1990, and
on or before the date of the enactment
of this Act, and
(iii) such coal producer files a
claim for refund not later than the
close of the 30-day period beginning on
the date of the enactment of this Act,
then the Secretary of the Treasury shall pay to
such coal producer an amount equal to the tax
paid under section 4121 of such Code on such
coal exported by the coal producer or a party
related to such coal producer.
(B) Special rules for certain taxpayers.--For
purposes of this section--
(i) Establishment of export.--If a
coal producer or a party related to a
coal producer has received a judgment
described in clause (iii), such coal
producer shall be deemed to have
established the export of coal to a
foreign country or shipment of coal to
a possession of the United States under
subparagraph (A)(i).
(ii) Amount of payment.--If a
taxpayer described in clause (i) is
entitled to a payment under
subparagraph (A), the amount of such
payment shall be reduced by any amount
awarded under the judgment described in
clause (iii).
(iii) Judgment described.--A judgment
is described in this subparagraph if
such judgment--
(I) is made by a court of
competent jurisdiction within
the United States,
(II) relates to the
constitutionality of any tax
paid on exported coal under
section 4121 of the Internal
Revenue Code of 1986, and
(III) is in favor of the coal
producer or the party related
to the coal producer.
(iv) Recapture.--In the case any
judgment described in clause (iii) is
overturned, the coal producer shall pay
to the Secretary the amount of any
payment received under subparagraph (A)
unless the coal producer establishes
the export of the coal to a foreign
country or shipment of coal to a
possession of the United States.
(2) Exporters.--Notwithstanding subsections (a)(1)
and (c) of section 6416 and section 6511 of the
Internal Revenue Code of 1986, and a judgment described
in paragraph (1)(B)(iii) of this subsection, if--
(A) an exporter establishes that such
exporter exported coal to a foreign country or
shipped coal to a possession of the United
States, or caused such coal to be so exported
or shipped,
(B) such exporter filed a return on or after
October 1, 1990, and on or before the date of
the enactment of this Act, and
(C) such exporter files a claim for refund
not later than the close of the 30-day period
beginning on the date of the enactment of this
Act,
then the Secretary of the Treasury shall pay to such
exporter an amount equal to $0.825 per ton of such coal
exported by the exporter or caused to be exported by
the exporter.
(b) Limitations.--Subsection (a) shall not apply with respect
to exported coal if a credit or refund of tax imposed by
section 4121 of such Code on such coal has been allowed or made
to, or if a settlement with the Federal Government has been
made with and accepted by, the coal producer, a party related
to such coal producer, or the exporter, of such coal, as of the
date that the claim is filed under this section with respect to
such exported coal. For purposes of this subsection, the term
``settlement with the Federal Government'' shall not include
any settlement or stipulation entered into as of the date of
the enactment of this Act, the terms of which contemplate a
judgment concerning which any party has reserved the right to
file an appeal, or has filed an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made
under this section to the extent that a credit or refund of
such tax on such exported coal has been paid to any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means
the person in whom is vested ownership of the coal
immediately after the coal is severed from the ground,
without regard to the existence of any contractual
arrangement for the sale or other disposition of the
coal or the payment of any royalties between the
producer and third parties. The term includes any
person who extracts coal from coal waste refuse piles
or from the silt waste product which results from the
wet washing (or similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person,
other than a coal producer, who does not have a
contract, fee arrangement, or any other agreement with
a producer or seller of such coal to sell or export
such coal to a third party on behalf of the producer or
seller of such coal and--
(A) is indicated in the shipper's export
declaration or other documentation as the
exporter of record, or
(B) actually exported such coal to a foreign
country or shipped such coal to a possession of
the United States, or caused such coal to be so
exported or shipped.
(3) Related party.--The term ``a party related to
such coal producer'' means a person who--
(A) is related to such coal producer through
any degree of common management, stock
ownership, or voting control,
(B) is related (within the meaning of section
144(a)(3) of such Code) to such coal producer,
or
(C) has a contract, fee arrangement, or any
other agreement with such coal producer to sell
such coal to a third party on behalf of such
coal producer.
(e) Timing of Refund.--With respect to any claim for refund
filed pursuant to this section, the Secretary of the Treasury
shall determine whether the requirements of this section are
met not later than 180 days after such claim is filed. If the
Secretary determines that the requirements of this section are
met, the claim for refund shall be paid not later than 180 days
after the Secretary makes such determination.
(f) Interest.--Any refund paid pursuant to this section shall
be paid by the Secretary of the Treasury with interest from the
date of overpayment determined by using the overpayment rate
and method under section 6621 of such Code.
(g) Denial of Double Benefit.--The payment under subsection
(a) with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the
amount of tax paid under section 4121 of the Internal
Revenue Code of 1986 with respect to such coal by such
coal producer or a party related to such coal producer,
and
(2) in the case of a payment to an exporter, an
amount equal to $0.825 per ton with respect to such
coal exported by the exporter or caused to be exported
by the exporter.
(h) Application of Section.--This section applies only to
claims on coal exported on or after October 1, 1990, through
the date of the enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this
section shall not confer standing upon an exporter to
commence, or intervene in, any judicial or
administrative proceeding concerning a claim for refund
by a coal producer of any Federal or State tax, fee, or
royalty paid by the coal producer.
(2) Coal producers.--With respect to coal producers,
this section shall not confer standing upon a coal
producer to commence, or intervene in, any judicial or
administrative proceeding concerning a claim for refund
by an exporter of any Federal or State tax, fee, or
royalty paid by the producer and alleged to have been
passed on to an exporter.
SEC. 1511. EXTENSION OF TEMPORARY INCREASE IN COAL EXCISE TAX.
Paragraph (2) of section 4121(e) (relating to temporary
increase termination date) is amended--
(1) by striking ``January 1, 2014'' in clause (i) and
inserting ``December 31, 2017'', and
(2) by striking ``January 1 after 1981'' in clause
(ii) and inserting ``December 31 after 2007''.
SEC. 1512. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into an
agreement with the National Academy of Sciences to undertake a
comprehensive review of the Internal Revenue Code of 1986 to
identify the types of and specific tax provisions that have the
largest effects on carbon and other greenhouse gas emissions
and to estimate the magnitude of those effects.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall
submit to Congress a report containing the results of study
authorized under this section.
(c) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $1,500,000 for the
period of fiscal years 2008 and 2009.
Subtitle B--Transportation and Domestic Fuel Security
PART I--BIOFUELS
SEC. 1521. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS ALCOHOL.
(a) In General.--Subsection (a) of section 40 (relating to
alcohol used as fuel) is amended by striking ``plus'' at the
end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(4) the cellulosic alcohol producer credit.''.
(b) Cellulosic Alcohol Producer Credit.--
(1) In general.--Subsection (b) of section 40 is
amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Cellulosic alcohol producer credit.--
``(A) In general.--The cellulosic alcohol
producer credit for the taxable year is an
amount equal to the applicable amount for each
gallon of qualified cellulosic alcohol
production.
``(B) Applicable amount.--For purposes of
subparagraph (A), the applicable amount means
the excess of--
``(i) $1.01, over
``(ii) the amount of the credit in
effect for alcohol which is ethanol
under subsection (b)(1) (without regard
to subsection (b)(3)) at the time of
the qualified cellulosic alcohol
production.
``(C) Limitation.--
``(i) In general.--No credit shall be
allowed to any taxpayer under
subparagraph (A) with respect to any
qualified cellulosic alcohol production
during the taxable year in excess of
60,000,000 gallons.
``(ii) Aggregation rule.--For
purposes of clause (i), all members of
the same controlled group of
corporations (within the meaning of
section 267(f)) and all persons under
common control (within the meaning of
section 52(b) but determined by
treating an interest of more than 50
percent as a controlling interest)
shall be treated as 1 person.
``(iii) Partnership, s corporations,
and other pass-thru entities.--In the
case of a partnership, trust, S
corporation, or other pass-thru entity,
the limitation contained in clause (i)
shall be applied at the entity level
and at the partner or similar level.
``(D) Qualified cellulosic alcohol
production.--For purposes of this section, the
term `qualified cellulosic alcohol production'
means any cellulosic biomass alcohol which is
produced by the taxpayer and which during the
taxable year--
``(i) is sold by the taxpayer to
another person--
``(I) for use by such other
person in the production of a
qualified alcohol mixture in
such other person's trade or
business (other than casual
off-farm production),
``(II) for use by such other
person as a fuel in a trade or
business, or
``(III) who sells such
cellulosic biomass alcohol at
retail to another person and
places such cellulosic biomass
alcohol in the fuel tank of
such other person, or
``(ii) is used or sold by the
taxpayer for any purpose described in
clause (i).
The qualified cellulosic alcohol production of
any taxpayer for any taxable year shall not
include any alcohol which is purchased by the
taxpayer and with respect to which such
producer increases the proof of the alcohol by
additional distillation.
``(E) Cellulosic biomass alcohol.--
``(i) In general.--The term
`cellulosic biomass alcohol' has the
meaning given such term under section
168(l)(3), but does not include any
alcohol with a proof of less than 150.
``(ii) Determination of proof.--The
determination of the proof of any
alcohol shall be made without regard to
any added denaturants.
``(F) Coordination with small ethanol
producer credit.--No small ethanol producer
credit shall be allowed with respect to any
qualified cellulosic alcohol production if
credit is determined with respect to such
production under this paragraph.
``(G) Allocation of cellulosic producer
credit to patrons of cooperative.--Rules
similar to the rules under subsection (g)(6)
shall apply for purposes of this paragraph.
``(H) Application of paragraph.--This
paragraph shall apply with respect to qualified
cellulosic alcohol production after December
31, 2007, and before January 1, 2014.''.
(2) Termination date not to apply.--Subsection (e) of
section 40 (relating to termination) is amended--
(A) by inserting ``or subsection (b)(5)(H)''
after ``by reason of paragraph (1)'' in
paragraph (2), and
(B) by adding at the end the following new
paragraph:
``(3) Exception for cellulosic alcohol producer
credit.--Paragraph (1) shall not apply to the portion
of the credit allowed under this section by reason of
subsection (a)(4).''.
(c) Alcohol Not Used as a Fuel, etc.--
(1) In general.--Paragraph (3) of section 40(d) is
amended by redesignating subparagraph (D) as
subparagraph (E) and by inserting after subparagraph
(C) the following new subparagraph:
``(D) Cellulosic alcohol producer credit.--
If--
``(i) any credit is determined under
subsection (a)(4), and
``(ii) any person does not use such
fuel for a purpose described in
subsection (b)(5)(D),
then there is hereby imposed on such person a
tax equal to the applicable amount for each
gallon of such cellulosic biomass alcohol.''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 40(d)(3) is
amended by striking ``producer'' in the heading
and inserting ``small ethanol producer''.
(B) Subparagraph (E) of section 40(d)(3), as
redesignated by paragraph (1), is amended by
striking ``or (C)'' and inserting ``(C), or
(D)''.
(d) Limitation to Cellulosic Alcohol With Connection to the
United States.--Subsection (d) of section 40, as amended by
this Act, is amended by adding at the end the following new
paragraph:
``(7) Limitation to cellulosic alcohol with
connection to the united states.--No cellulosic alcohol
producer credit shall be determined under subsection
(a) with respect to any alcohol unless such alcohol is
produced in the United States.''.
(e) Effective Date.--The amendments made by this section
shall apply to fuel produced after December 31, 2007.
SEC. 1522. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOMASS ALCOHOL
FUEL PLANT PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) (relating to
special allowance for cellulosic biomass ethanol plant
property) is amended to read as follows:
``(3) Cellulosic biomass alcohol.--For purposes of
this subsection, the term `cellulosic biomass alcohol'
means any alcohol produced from any lignocellulosic or
hemicellulosic matter that is available on a renewable
or recurring basis.''.
(b) Conforming Amendments.--
(1) Subsection (l) of section 168 is amended by
striking ``cellulosic biomass ethanol'' each place it
appears and inserting ``cellulosic biomass alcohol''.
(2) The heading of section 168(l) is amended by
striking ``Cellulosic Biomass Ethanol'' and inserting
``Cellulosic Biomass Alcohol''.
(3) The heading of paragraph (2) of section 168(l) is
amended by striking ``cellulosic biomass ethanol'' and
inserting ``cellulosic biomass alcohol''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of the
enactment of this Act, in taxable years ending after such date.
SEC. 1523. MODIFICATION OF ALCOHOL CREDIT.
(a) Income Tax Credit.--Subsection (h) of section 40
(relating to reduced credit for ethanol blenders) is amended by
adding at the end the following new paragraph:
``(3) Reduced amount after sale of 7,500,000,000
gallons.--
``(A) In general.--In the case of any
calendar year beginning after the calendar year
described in subparagraph (B), the last row in
the table in paragraph (2) shall be applied by
substituting `46 cents' for `51 cents'.
``(B) Calendar year described.--The calendar
year described in this subparagraph is the
first calendar year beginning after 2007 during
which 7,500,000,000 gallons of ethanol
(including cellulosic ethanol) have been
produced in or imported into the United States,
as certified by the Secretary, in consultation
with the Administrator of the Environmental
Protection Agency.''.
(b) Excise Tax Credit.--
(1) In general.--Paragraph (2) of section 6426(b)
(relating to alcohol fuel mixture credit) is amended by
adding at the end the following new subparagraph:
``(C) Reduced amount after sale of
7,500,000,000 gallons.--In the case of any
alcohol fuel mixture produced in a calendar
year beginning after the calendar year
described in section 40(h)(3)(B), subparagraph
(A) shall be applied by substituting `46 cents'
for `51 cents'.''.
(2) Conforming amendment.--Subparagraph (A) of
section 6426(b)(2) is amended by striking
``subparagraph (B)'' and inserting ``subparagraphs (B)
and (C)''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 1524. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND
RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) are each amended by striking ``December 31,
2008'' and inserting ``December 31, 2010''.
(b) Uniform Treatment of Diesel Produced From Biomass.--
Paragraph (3) of section 40A(f) is amended--
(1) by striking ``using a thermal depolymerization
process'', and
(2) by striking ``or D396'' in subparagraph (B) and
inserting ``or other equivalent standard approved by
the Secretary for fuels to be used in diesel-powered
highway vehicles''.
(c) Eligibility of Certain Aviation Fuel.--Paragraph (3) of
section 40A(f) (defining renewable diesel) is amended by adding
at the end the following new flush sentence:
``The term `renewable diesel' also means fuel derived
from biomass which meets the requirements of a
Department of Defense specification for military jet
fuel or an American Society of Testing and Materials
specification for aviation turbine fuel.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2),
the amendments made by this section shall apply to fuel
produced, and sold or used, after the date of the
enactment of this Act.
(2) Uniform treatment of diesel produced from
biomass.--The amendments made by subsection (b) shall
apply to fuel produced, and sold or used, after the
date which is 30 days after the date of the enactment
of this Act.
SEC. 1525. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL CREDIT.
(a) Coproduction With Petroleum Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f)
(defining renewable diesel), as amended by this Act, is
amended by adding at the end the following sentence:
``Such term does not include any fuel derived from
coprocessing biomass with a feedstock which is not
biomass. For purposes of this paragraph, the term
`biomass' has the meaning given such term by section
45K(c)(3).''
(2) Conforming amendment.--Paragraph (3) of section
40A(f) is amended by striking ``(as defined in section
45K(c)(3))''.
(b) Clarification of Eligibility for Alternative Fuel
Credit.--
(1) In general.--Subparagraph (F) of section
6426(d)(2) is amended by striking ``hydrocarbons'' and
inserting ``fuel''.
(2) Conforming amendment.--Section 6426 is amended by
adding at the end the following new subsection:
``(h) Denial of Double Benefit.--No credit shall be
determined under subsection (d) or (e) with respect to any fuel
with respect to which credit may be determined under subsection
(b) or (c) or under section 40 or 40A.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2),
the amendments made by this section shall apply to fuel
produced, and sold or used, after December 31, 2007.
(2) Clarification of eligibility for alternative fuel
credit.--The amendment made by subsection (b) shall
take effect as if included in section 11113 of the
Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users.
SEC. 1526. PROVISIONS CLARIFYING TREATMENT OF FUELS WITH NO NEXUS TO
THE UNITED STATES.
(a) Alcohol Fuels Credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the
united states.--No credit shall be determined under
this section with respect to any alcohol which is
produced outside the United States for use as a fuel
outside the United States. For purposes of this
paragraph, the term `United States' includes any
possession of the United States.''.
(b) Biodiesel Fuels Credit.--Subsection (d) of section 40A is
amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the
united states.--No credit shall be determined under
this section with respect to any biodiesel which is
produced outside the United States for use as a fuel
outside the United States. For purposes of this
paragraph, the term `United States' includes any
possession of the United States.''.
(c) Excise Tax Credit.--
(1) In general.--Section 6426, as amended by this
Act, is amended by adding at the end the following new
subsection:
``(i) Limitation to Fuels With Connection to the United
States.--
``(1) Alcohol.--No credit shall be determined under
this section with respect to any alcohol which is
produced outside the United States for use as a fuel
outside the United States.
``(2) Biodiesel and alternative fuels.--No credit
shall be determined under this section with respect to
any biodiesel or alternative fuel which is produced
outside the United States for use as a fuel outside the
United States.
For purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(2) Conforming amendment.--Subsection (e) of section
6427 is amended by redesignating paragraph (5) as
paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Limitation to fuels with connection to the
united states.--No amount shall be payable under
paragraph (1) or (2) with respect to any mixture or
alternative fuel if credit is not allowed with respect
to such mixture or alternative fuel by reason of
section 6426(i).''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall
take effect as if included in section 301 of the
American Jobs Creation Act of 2004.
(2) Alternative fuel credits.--So much of the
amendments made by this section as relate to the
alternative fuel credit or the alternative fuel mixture
credit shall take effect as if included in section
11113 of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users.
(3) Renewable diesel.--So much of the amendments made
by this section as relate to renewable diesel shall
take effect as if included in section 1346 of the
Energy Policy Act of 2005.
SEC. 1527. COMPREHENSIVE STUDY OF BIOFUELS.
(a) Study.--The Secretary of the Treasury, in consultation
with the Secretary of Agriculture, the Secretary of Energy, and
the Administrator of the Environmental Protection Agency, shall
enter into an agreement with the National Academy of Sciences
to produce an analysis of current scientific findings to
determine--
(1) current biofuels production, as well as
projections for future production,
(2) the maximum amount of biofuels production capable
on United States farmland,
(3) the domestic effects of a dramatic increase in
biofuels production on, for example--
(A) the price of fuel,
(B) the price of land in rural and suburban
communities,
(C) crop acreage and other land use,
(D) the environment, due to changes in crop
acreage, fertilizer use, runoff, water use,
emissions from vehicles utilizing biofuels, and
other factors,
(E) the price of feed,
(F) the selling price of grain crops,
(G) exports and imports of grains,
(H) taxpayers, through cost or savings to
commodity crop payments, and
(I) the expansion of refinery capacity,
(4) the ability to convert corn ethanol plants for
other uses, such as cellulosic ethanol or biodiesel,
(5) a comparative analysis of corn ethanol versus
other biofuels and renewable energy sources,
considering cost, energy output, and ease of
implementation, and
(6) the need for additional scientific inquiry, and
specific areas of interest for future research.
(b) Report.--The National Academy of Sciences shall submit an
initial report of the findings of the report required under
subsection (a) to the Congress not later than 3 months after
the date of the enactment of this Act, and a final report not
later than 6 months after such date of enactment.
PART II--ADVANCED TECHNOLOGY MOTOR VEHICLES
SEC. 1528. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to other credits) is amended by adding at
the end the following new section:
``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the taxable
year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each new
qualified plug-in electric drive motor vehicle placed in
service by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any new qualified plug-in
electric drive motor vehicle is the sum of the amounts
determined under paragraphs (2) and (3) with respect to
such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $3,000.
``(3) Battery capacity.--In the case of a vehicle
which draws propulsion energy from a battery with not
less than 5 kilowatt hours of capacity, the amount
determined under this paragraph is $200, plus $200 for
each kilowatt hour of capacity in excess of 5 kilowatt
hours. The amount determined under this paragraph shall
not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general
business credit.--So much of the credit which would be
allowed under subsection (a) for any taxable year
(determined without regard to this subsection) that is
attributable to property of a character subject to an
allowance for depreciation shall be treated as a credit
listed in section 38(b) for such taxable year (and not
allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this
title, the credit allowed under subsection (a)
for any taxable year (determined after
application of paragraph (1)) shall be treated
as a credit allowable under subpart A for such
taxable year.
``(B) Limitation based on amount of tax.--In
the case of a taxable year to which section
26(a)(2) does not apply, the credit allowed
under subsection (a) for any taxable year
(determined after application of paragraph (1))
shall not exceed the excess of--
``(i) the sum of the regular tax
liability (as defined in section 26(b))
plus the tax imposed by section 55,
over
``(ii) the sum of the credits
allowable under subpart A (other than
this section and sections 23 and 25D)
and section 27 for the taxable year.
``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--
For purposes of this section--
``(1) In general.--The term `new qualified plug-in
electric drive motor vehicle' means a motor vehicle (as
defined in section 30(c)(2))--
``(A) the original use of which commences
with the taxpayer,
``(B) which is acquired for use or lease by
the taxpayer and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating
of less than 14,000 pounds,
``(E) which has received a certificate of
conformity under the Clean Air Act and meets or
exceeds the Bin 5 Tier II emission standard
established in regulations prescribed by the
Administrator of the Environmental Protection
Agency under section 202(i) of the Clean Air
Act for that make and model year vehicle, and
``(F) which is propelled to a significant
extent by an electric motor which draws
electricity from a battery which--
``(i) has a capacity of not less than
4 kilowatt hours, and
``(ii) is capable of being recharged
from an external source of electricity.
``(2) Exception.--The term `new qualified plug-in
electric drive motor vehicle' shall not include any
vehicle which is not a passenger automobile or light
truck if such vehicle has a gross vehicle weight rating
of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings
given such terms in regulations prescribed by the
Administrator of the Environmental Protection Agency
for purposes of the administration of title II of the
Clean Air Act (42 U.S.C. 7521 et seq.).
``(4) Battery capacity.--The term `capacity' means,
with respect to any battery, the quantity of
electricity which the battery is capable of storing,
expressed in kilowatt hours, as measured from a 100
percent state of charge to a 0 percent state of charge.
``(e) Limitation on Number of New Qualified Plug-in Electric
Drive Motor Vehicles Eligible for Credit.--
``(1) In general.--In the case of a new qualified
plug-in electric drive motor vehicle sold during the
phaseout period, only the applicable percentage of the
credit otherwise allowable under subsection (a) shall
be allowed.
``(2) Phaseout period.--For purposes of this
subsection, the phaseout period is the period beginning
with the second calendar quarter following the calendar
quarter which includes the first date on which the
number of new qualified plug-in electric drive motor
vehicles manufactured by the manufacturer of the
vehicle referred to in paragraph (1) sold for use in
the United States after the date of the enactment of
this section, is at least 60,000.
``(3) Applicable percentage.--For purposes of
paragraph (1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar
quarters of the phaseout period,
``(B) 25 percent for the 3d and 4th calendar
quarters of the phaseout period, and
``(C) 0 percent for each calendar quarter
thereafter.
``(4) Controlled groups.--Rules similar to the rules
of section 30B(f)(4) shall apply for purposes of this
subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for
which a credit is allowable under subsection (a) shall
be reduced by the amount of such credit (determined
without regard to subsection (c)).
``(2) Recapture.--The Secretary shall, by
regulations, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to
any property which ceases to be property eligible for
such credit.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection
(a) with respect to any property referred to in section
50(b)(1) or with respect to the portion of the cost of
any property taken into account under section 179.
``(4) Election not to take credit.--No credit shall
be allowed under subsection (a) for any vehicle if the
taxpayer elects to not have this section apply to such
vehicle.
``(5) Property used by tax-exempt entity; interaction
with air quality and motor vehicle safety standards.--
Rules similar to the rules of paragraphs (6) and (10)
of section 30B(h) shall apply for purposes of this
section.''.
(b) Coordination With Alternative Motor Vehicle Credit.--
Section 30B(d)(3) is amended by adding at the end the following
new subparagraph:
``(D) Exclusion of plug-in vehicles.--Any
vehicle with respect to which a credit is
allowable under section 30D (determined without
regard to subsection (c) thereof) shall not be
taken into account under this section.''.
(c) Credit Made Part of General Business Credit.--Section
38(b), as amended by this Act, is amended--
(1) by striking ``and'' each place it appears at the
end of any paragraph,
(2) by striking ``plus'' each place it appears at the
end of any paragraph,
(3) by striking the period at the end of paragraph
(31) and inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(32) the portion of the new qualified plug-in
electric drive motor vehicle credit to which section
30D(c)(1) applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act,
is amended by striking ``and 25D'' and inserting ``25D,
and 30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by this Act, is
amended by striking ``and 25D'' and inserting ``, 25D,
and 30D''.
(D) Section 26(a)(1), as amended by this Act, is
amended by striking ``and 25D'' and inserting ``25D,
and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and
25D'' and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at
the end of paragraph (36), by striking the period at
the end of paragraph (37) and inserting ``, and'', and
by adding at the end the following new paragraph:
``(38) to the extent provided in section
30D(f)(1).''.
(3) Section 6501(m) is amended by inserting
``30D(f)(4),'' after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the
end the following new item:
``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a
Personal Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is
amended to read as follows:
``(2) Personal credit.--The credit allowed under
subsection (a) for any taxable year (after application
of paragraph (1)) shall be treated as a credit
allowable under subpart A for such taxable year.''.
(2) Conforming amendments.--
(A) Subparagraph (A) of section 30C(d)(2) is
amended by striking ``sections 27, 30, and
30B'' and inserting ``sections 27 and 30''.
(B) Paragraph (3) of section 55(c) is amended
by striking ``30B(g)(2),''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall
apply to taxable years beginning after December 31,
2007.
(2) Treatment of alternative motor vehicle credit as
personal credit.--The amendments made by subsection (e)
shall apply to taxable years beginning after December
31, 2006.
(g) Application of EGTRRA Sunset.--The amendment made by
subsection (d)(1)(A) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provision of such Act to which such
amendment relates.
SEC. 1529. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS
AND ADVANCED INSULATION.
(a) In General.--Section 4053 (relating to exemptions) is
amended by adding at the end the following new paragraphs:
``(9) Idling reduction device.--Any device or system
of devices which--
``(A) is designed to provide to a vehicle
those services (such as heat, air conditioning,
or electricity) that would otherwise require
the operation of the main drive engine while
the vehicle is temporarily parked or remains
stationary using either--
``(i) an all electric unit, such as a
battery powered unit or from grid-
supplied electricity, or
``(ii) a dual fuel unit powered by
diesel or other fuels, and capable of
providing such services from grid-
supplied electricity or on-truck
batteries alone, and
``(B) is certified by the Secretary of
Energy, in consultation with the Administrator
of the Environmental Protection Agency and the
Secretary of Transportation, to reduce long-
duration idling of such vehicle at a motor
vehicle rest stop or other location where such
vehicles are temporarily parked or remain
stationary.
For purposes of subparagraph (B), the term `long-
duration idling' means the operation of a main drive
engine, for a period greater than 15 consecutive
minutes, where the main drive engine is not engaged in
gear. Such term does not apply to routine stoppages
associated with traffic movement or congestion.
``(10) Advanced insulation.--Any insulation that has
an R value of not less than R35 per inch.''.
(b) Effective Date.--The amendment made by this section shall
apply to sales or installations after December 31, 2007.
PART III--OTHER TRANSPORTATION PROVISIONS
SEC. 1530. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as section 1400K and by
adding at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so much of the portion of the qualifying
project expenditure amount allocated under subsection (b)(3) to
such governmental unit for the calendar year as is allocated by
such governmental unit to such period under subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes of
this section--
``(1) In general.--The term `qualifying project
expenditure amount' means, with respect to any calendar
year, the sum of--
``(A) the total expenditures paid or incurred
during such calendar year by all New York
Liberty Zone governmental units and the Port
Authority of New York and New Jersey for any
portion of qualifying projects located wholly
within the City of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any
preceding calendar year which begins
after the date of enactment of this
section, and
``(ii) not previously allocated under
paragraph (3).
``(2) Qualifying project.--The term `qualifying
project' means any transportation infrastructure
project, including highways, mass transit systems,
railroads, airports, ports, and waterways, in or
connecting with the New York Liberty Zone (as defined
in section 1400K(h)), which is designated as a
qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the
City of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State
of New York and the Mayor of the City of New
York, New York, shall jointly allocate to each
New York Liberty Zone governmental unit the
portion of the qualifying project expenditure
amount which may be taken into account by such
governmental unit under subsection (a) for any
calendar year in the credit period.
``(B) Aggregate limit.--The aggregate amount
which may be allocated under subparagraph (A)
for all calendar years in the credit period
shall not exceed $2,000,000,000.
``(C) Annual limit.--The aggregate amount
which may be allocated under subparagraph (A)
for any calendar year in the credit period
shall not exceed the sum of--
``(i) $115,000,000 ($425,000,000 in
the case of the last 2 years in the
credit period), plus
``(ii) the aggregate amount
authorized to be allocated under this
paragraph for all preceding calendar
years in the credit period which was
not so allocated.
``(D) Unallocated amounts at end of credit
period.--If, as of the close of the credit
period, the amount under subparagraph (B)
exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the
credit period, the Governor of the State of New
York and the Mayor of the City of New York, New
York, may jointly allocate to New York Liberty
Zone governmental units for any calendar year
in the 5-year period following the credit
period an amount equal to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project
expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated
under this subparagraph for all
preceding calendar years.
``(4) Allocation to payroll periods.--Each New York
Liberty Zone governmental unit which has been allocated
a portion of the qualifying project expenditure amount
under paragraph (3) for a calendar year may allocate
such portion to payroll periods beginning in such
calendar year as such governmental unit determines
appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph
(2), if the amount allocated under subsection (b)(3) to
a New York Liberty Zone governmental unit for any
calendar year exceeds the aggregate taxes imposed by
section 3402 for which such governmental unit is liable
under section 3403 for periods beginning in such year,
such excess shall be carried to the succeeding calendar
year and added to the allocation of such governmental
unit for such succeeding calendar year.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to
it under subsection (b)(3) within the time prescribed
by the Governor of the State of New York and the Mayor
of the City of New York, New York, then such amount
shall after such time be treated for purposes of
subsection (b)(3) in the same manner as if it had never
been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means
the 12-year period beginning on January 1, 2008.
``(2) New york liberty zone governmental unit.--The
term `New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such
State or City.
``(3) Treatment of funds.--Any expenditure for a
qualifying project taken into account for purposes of
the credit under this section shall be considered State
and local funds for the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New
York Liberty Zone governmental unit shall be treated as
having paid to the Secretary, on the day on which wages
are paid to employees, an amount equal to the amount of
the credit allowed to such entity under subsection (a)
with respect to such wages, but only if such
governmental unit deducts and withholds wages for such
payroll period under section 3401 (relating to wage
withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure
amount for the calendar year, and
``(B) the amount allocated to each New York
Liberty Zone governmental unit under subsection
(b)(3) for the calendar year, and
``(2) includes such other information as the
Secretary may require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance as
may be necessary or appropriate to ensure compliance with the
purposes of this section.''.
(b) Termination of Special Allowance and Expensing.--
Subparagraph (A) of section 1400K(b)(2), as redesignated by
subsection (a), is amended by striking the parenthetical
therein and inserting ``(in the case of nonresidential real
property and residential rental property, the date of the
enactment of the Clean Renewable Energy and Conservation Tax
Act of 2007 or, if acquired pursuant to a binding contract in
effect on such enactment date, December 31, 2009)''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking
``section 1400L(a)'' and inserting ``section
1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``section
1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y
of chapter 1 is amended by redesignating the item
relating to section 1400L as an item relating to
section 1400K and by inserting after such item the
following new item:
``Sec. 1400L. New York Liberty Zone tax credits.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 1531. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE
COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) of the
Internal Revenue Code of 1986 (relating to general rule for
qualified transportation fringe) is amended by adding at the
end the following:
``(D) Any qualified bicycle commuting
reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section 132(f)
of such Code is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(C) the applicable annual limitation in the
case of any qualified bicycle commuting
reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) of such
Code (relating to definitions) is amended by adding at the end
the following:
``(F) Definitions related to bicycle
commuting reimbursement.--
``(i) Qualified bicycle commuting
reimbursement.--The term `qualified
bicycle commuting reimbursement' means,
with respect to any calendar year, any
employer reimbursement during the 15-
month period beginning with the first
day of such calendar year for
reasonable expenses incurred by the
employee during such calendar year for
the purchase of a bicycle and bicycle
improvements, repair, and storage, if
such bicycle is regularly used for
travel between the employee's residence
and place of employment.
``(ii) Applicable annual
limitation.--The term `applicable
annual limitation' means, with respect
to any employee for any calendar year,
the product of $20 multiplied by the
number of qualified bicycle commuting
months during such year.
``(iii) Qualified bicycle commuting
month.--The term `qualified bicycle
commuting month' means, with respect to
any employee, any month during which
such employee--
``(I) regularly uses the
bicycle for a substantial
portion of the travel between
the employee's residence and
place of employment, and
``(II) does not receive any
benefit described in
subparagraph (A), (B), or (C)
of paragraph (1).''.
(d) Constructive Receipt of Benefit.--Paragraph (4) of
section 132(f) is amended by inserting ``(other than a
qualified bicycle commuting reimbursement)'' after ``qualified
transportation fringe''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2007.
Subtitle C--Energy Conservation and Efficiency
PART I--CONSERVATION TAX CREDIT BONDS
SEC. 1541. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as added by this title, is amended by adding at the
end the following new section:
``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of
this subchapter, the term `qualified energy conservation bond'
means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds
of such issue are to be used for one or more qualified
conservation purposes,
``(2) the bond is issued by a State or local
government, and
``(3) the issuer designates such bond for purposes of
this section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under
subsection (a) by any issuer shall not exceed the limitation
amount allocated to such issuer under subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $3,000,000,000.
``(d) Allocations.--
``(1) In general.--The limitation applicable under
subsection (c) shall be allocated by the Secretary
among the States in proportion to the population of the
States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State
in which there is a large local government,
each such local government shall be allocated a
portion of such State's allocation which bears
the same ratio to the State's allocation
(determined without regard to this
subparagraph) as the population of such large
local government bears to the population of
such State.
``(B) Allocation of unused limitation to
state.--The amount allocated under this
subsection to a large local government may be
reallocated by such local government to the
State in which such local government is
located.
``(C) Large local government.--For purposes
of this section, the term `large local
government' means any municipality or county if
such municipality or county has a population of
100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection
to a State or large local government shall be allocated
by such State or large local government to issuers
within the State in a manner that results in not less
than 70 percent of the allocation to such State or
large local government being used to designate bonds
which are not private activity bonds.
``(e) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for
purposes of--
``(i) reducing energy consumption in
publicly-owned buildings by at least 20
percent,
``(ii) implementing green community
programs, or
``(iii) rural development involving
the production of electricity from
renewable energy resources.
``(B) Expenditures with respect to research
facilities, and research grants, to support
research in--
``(i) development of cellulosic
ethanol or other nonfossil fuels,
``(ii) technologies for the capture
and sequestration of carbon dioxide
produced through the use of fossil
fuels,
``(iii) increasing the efficiency of
existing technologies for producing
nonfossil fuels,
``(iv) automobile battery
technologies and other technologies to
reduce fossil fuel consumption in
transportation, or
``(v) technologies to reduce energy
use in buildings.
``(C) Mass commuting facilities and related
facilities that reduce the consumption of
energy, including expenditures to reduce
pollution from vehicles used for mass
commuting.
``(D) Demonstration projects designed to
promote the commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural
waste for use in the production of fuel
or otherwise,
``(iii) advanced battery
manufacturing technologies,
``(iv) technologies to reduce peak
use of electricity, or
``(v) technologies for the capture
and sequestration of carbon dioxide
emitted from combusting fossil fuels in
order to produce electricity.
``(E) Public education campaigns to promote
energy efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private
activity bond, the term `qualified conservation
purposes' shall not include any expenditure which is
not a capital expenditure.
``(f) Population.--
``(1) In general.--The population of any State or
local government shall be determined for purposes of
this section as provided in section 146(j) for the
calendar year which includes the date of the enactment
of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section,
any population of such county which is taken into
account in determining the population of any
municipality which is a large local government shall
not be taken into account in determining the population
of such county.
``(g) Application to Indian Tribal Governments.--An Indian
tribal government shall be treated for purposes of this section
in the same manner as a large local government, except that--
``(1) an Indian tribal government shall be treated
for purposes of subsection (d) as located within a
State to the extent of so much of the population of
such government as resides within such State, and
``(2) any bond issued by an Indian tribal government
shall be treated as a qualified energy conservation
bond only if issued as part of an issue the available
project proceeds of which are used for purposes for
which such Indian tribal government could issue bonds
to which section 103(a) applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by this
title, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified
tax credit bond' means--
``(A) a new clean renewable energy bond, or
``(B) a qualified energy conservation bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), and (5).''.
(2) Subparagraph (C) of section 54A(d)(2), as added
by this title, is amended to read as follows:
``(C) Qualified purpose.--For purposes of
this paragraph, the term `qualified purpose'
means--
``(i) in the case of a new clean
renewable energy bond, a purpose
specified in section 54B(a)(1), and
``(ii) in the case of a qualified
energy conservation bond, a purpose
specified in section 54C(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by this title, is
amended by adding at the end the following new item:
``Sec. 54C. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 1542. QUALIFIED FORESTRY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as added by this title, is amended by adding at the
end the following new section:
``SEC. 54D. QUALIFIED FORESTRY CONSERVATION BONDS.
``(a) Qualified Forestry Conservation Bond.--For purposes of
this subchapter, the term `qualified forestry conservation
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available proceeds of such
issue are to be used for one or more qualified forestry
conservation projects,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of
this section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under
subsection (a) by any issuer shall not exceed the limitation
amount allocated to such issuer under subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified forestry conservation bond
limitation of $500,000,000.
``(d) Allocations.--
``(1) In general.--The Secretary shall make
allocations of the amount of the national qualified
forestry conservation bond limitation described in
subsection (c) among qualified forestry conservation
projects in such manner as the Secretary determines
appropriate so as to ensure that all of such limitation
is allocated before the date which is 24 months after
the date of the enactment of this section.
``(2) Solicitation of applications.--The Secretary
shall solicit applications for allocations of the
national qualified forestry conservation bond
limitation described in subsection (c) not later than
90 days after the date of the enactment of this
section.
``(e) Qualified Forestry Conservation Project.--For purposes
of this section, the term `qualified forestry conservation
project' means the acquisition by a State or 501(c)(3)
organization (as defined in section 150(a)(4)) from an
unrelated person of forest and forest land that meets the
following qualifications:
``(1) Some portion of the land acquired must be
adjacent to United States Forest Service Land.
``(2) At least half of the land acquired must be
transferred to the United States Forest Service at no
net cost to the United States and not more than half of
the land acquired may either remain with or be donated
to a State.
``(3) All of the land must be subject to a native
fish habitat conservation plan approved by the United
States Fish and Wildlife Service.
``(4) The amount of acreage acquired must be at least
40,000 acres.
``(f) Qualified Issuer.--For purposes of this section, the
term `qualified issuer' means a State or 501(c)(3) organization
(as defined in section 150(a)(4)).
``(g) Special Arbitrage Rule.--In the case of any qualified
forestry conservation bond issued as part of an issue, section
54A(d)(4)(C) shall be applied to such issue without regard to
clause (i).''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by this
title, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified
tax credit bond' means--
``(A) a new clean renewable energy bond,
``(B) a qualified energy conservation bond,
or
``(C) a qualified forestry conservation bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), and (5).''.
(2) Subparagraph (C) of section 54A(d)(2), as added
by this title, is amended to read as follows:
``(C) Qualified purpose.--For purposes of
this paragraph, the term `qualified purpose'
means--
``(i) in the case of a new clean
renewable energy bond, a purpose
specified in section 54B(a)(1),
``(ii) in the case of a qualified
energy conservation bond, a purpose
specified in section 54C(a)(1), and
``(iii) in the case of a qualified
forestry conservation bond, a purpose
specified in section 54D(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by this title, is
amended by adding at the end the following new item:
``Sec. 54C. Qualified forestry conservation bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
PART II--EFFICIENCY
SEC. 1543. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT EXISTING
HOMES CREDIT.
(a) Extension of Credit.--Section 25C(g) (relating to
termination) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2008''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of
subparagraph (D),
(B) by striking the period at the end of
subparagraph (E) and inserting ``, and'', and
(C) by adding at the end the following new
subparagraph:
``(F) a stove which uses the burning of
biomass fuel to heat a dwelling unit located in
the United States and used as a residence by
the taxpayer, or to heat water for use in such
a dwelling unit, and which has a thermal
efficiency rating of at least 75 percent.''.
(2) Biomass fuel.--Section 25C(d) (relating to
residential energy property expenditures) is amended by
adding at the end the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means
any plant-derived fuel available on a renewable or
recurring basis, including agricultural crops and
trees, wood and wood waste and residues (including wood
pellets), plants (including aquatic plants), grasses,
residues, and fibers.''.
(c) Effective Date.--The amendments made this section shall
apply to expenditures made after December 31, 2007.
SEC. 1544. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL
BUILDINGS DEDUCTION.
Subsection (h) of section 179D (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2013''.
SEC. 1545. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR
APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which
is manufactured in calendar year 2008 or 2009
and which uses no more than 324 kilowatt hours
per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which
is manufactured in calendar year 2008, 2009, or
2010 and which uses no more than 307 kilowatt
hours per year and 5.0 gallons per cycle (5.5
gallons per cycle for dishwashers designed for
greater than 12 place settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-
loading clothes washer manufactured in calendar
year 2008 which meets or exceeds a 1.72
modified energy factor and does not exceed a
8.0 water consumption factor,
``(B) $125 in the case of a residential top-
loading clothes washer manufactured in calendar
year 2008 or 2009 which meets or exceeds a 1.8
modified energy factor and does not exceed a
7.5 water consumption factor,
``(C) $150 in the case of a residential or
commercial clothes washer manufactured in
calendar year 2008, 2009 or 2010 which meets or
exceeds 2.0 modified energy factor and does not
exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or
commercial clothes washer manufactured in
calendar year 2008, 2009, or 2010 which meets
or exceeds 2.2 modified energy factor and does
not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which
is manufactured in calendar year 2008, and
consumes at least 20 percent but not more than
22.9 percent less kilowatt hours per year than
the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which
is manufactured in calendar year 2008 or 2009,
and consumes at least 23 percent but no more
than 24.9 percent less kilowatt hours per year
than the 2001 energy conservation standards,
``(C) $100 in the case of a refrigerator
which is manufactured in calendar year 2008,
2009, or 2010, and consumes at least 25 percent
but not more than 29.9 percent less kilowatt
hours per year than the 2001 energy
conservation standards, and
``(D) $200 in the case of a refrigerator
manufactured in calendar year 2008, 2009, or
2010 and which consumes at least 30 percent
less energy than the 2001 energy conservation
standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection
(c) of section 45M (relating to eligible production) is
amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all
that follows through ``the eligible'' and
inserting ``The eligible'', and
(C) by moving the text of such subsection in
line with the subsection heading and
redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively.
(2) Modification of base period.--Paragraph (2) of
section 45M(c), as amended by paragraph (1) of this
section, is amended by striking ``3-calendar year'' and
inserting ``2-calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d) of
section 45M (defining types of energy efficient appliances) is
amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of
this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2),
and
``(3) refrigerators described in subsection (b)(3).''
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section
45M(e) (relating to aggregate credit amount allowed) is
amended to read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with
respect to a taxpayer for any taxable year shall not
exceed $75,000,000 reduced by the amount of the credit
allowed under subsection (a) to the taxpayer (or any
predecessor) for all prior taxable years beginning
after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to
read as follows:
``(2) Amount allowed for certain refrigerators and
clothes washers.--Refrigerators described in subsection
(b)(3)(D) and clothes washers described in subsection
(b)(2)(D) shall not be taken into account under
paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f)
(defining qualified energy efficient appliance) is
amended to read as follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection
(b)(1),
``(B) any clothes washer described in
subsection (b)(2), and
``(C) any refrigerator described in
subsection (b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) (defining
clothes washer) is amended by inserting ``commercial''
before ``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of
section 45M (relating to definitions) is amended by
redesignating paragraphs (4), (5), (6), and (7) as
paragraphs (5), (6), (7), and (8), respectively, and by
inserting after paragraph (3) the following new
paragraph:
``(4) Top-loading clothes washer.--The term `top-
loading clothes washer' means a clothes washer which
has the clothes container compartment access located on
the top of the machine and which operates on a vertical
axis.''.
(4) Replacement of energy factor.--Section 45M(f)(7),
as redesignated by paragraph (3), is amended to read as
follows:
``(7) Modified energy factor.--The term `modified
energy factor' means the modified energy factor
established by the Department of Energy for compliance
with the Federal energy conservation standard.''.
(5) Gallons per cycle; water consumption factor.--
Section 45M(f) (relating to definitions) is amended by
adding at the end the following:
``(9) Gallons per cycle.--The term `gallons per
cycle' means, with respect to a dishwasher, the amount
of water, expressed in gallons, required to complete a
normal cycle of a dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes
washer, the quotient of the total weighted per-cycle
water consumption divided by the cubic foot (or liter)
capacity of the clothes washer.''.
(f) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.
SEC. 1546. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED ENERGY MANAGEMENT DEVICES.
(a) In General.--Section 168(e)(3)(C) (relating to 7-year
property), as amended by this Act, is amended by striking
``and'' at the end of clause (v), by redesignating clause (vi)
as clause (vii), and by inserting after clause (v) the
following new clause:
``(vi) any qualified energy
management device, and''.
(b) Definition of Qualified Energy Management Device.--
Section 168(i) (relating to definitions and special rules) is
amended by inserting at the end the following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy
management device' means any energy management
device which is installed on real property of a
customer of the taxpayer and is placed in
service by a taxpayer who--
``(i) is a supplier of electric
energy or a provider of electric energy
services, and
``(ii) provides all commercial and
residential customers of such supplier
or provider with net metering upon the
request of such customer.
``(B) Energy management device.--For purposes
of subparagraph (A), the term `energy
management device' means any time-based meter
and related communication equipment which is
capable of being used by the taxpayer as part
of a system that--
``(i) measures and records
electricity usage data on a time-
differentiated basis in at least 24
separate time segments per day,
``(ii) provides for the exchange of
information between supplier or
provider and the customer's energy
management device in support of time-
based rates or other forms of demand
response, and
``(iii) provides data to such
supplier or provider so that the
supplier or provider can provide energy
usage information to customers
electronically.
``(C) Net metering.--For purposes of
subparagraph (A), the term `net metering' means
allowing customers a credit for providing
electricity to the supplier or provider.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2007.
Subtitle D--Other Provisions
PART I--FORESTRY PROVISIONS
SEC. 1551. DEDUCTION FOR QUALIFIED TIMBER GAIN.
(a) In General.--Part I of subchapter P of chapter 1 is
amended by adding at the end the following new section:
``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.
``(a) In General.--In the case of a taxpayer which elects the
application of this section for a taxable year, there shall be
allowed a deduction against gross income in an amount equal to
60 percent of the lesser of--
``(1) the taxpayer's qualified timber gain for such
year, or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section,
the term `qualified timber gain' means, with respect to any
taxpayer for any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year,
over
``(2) the sum of the taxpayer's losses described in
such subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--
``(1) In the case of any qualified timber gain of a
pass-thru entity (as defined in section 1(h)(10)) other
than a real estate investment trust, the election under
this section shall be made separately by each taxpayer
subject to tax on such gain.
``(2) In the case of any qualified timber gain of a
real estate investment trust, the election under this
section shall be made by the real estate investment
trust.
``(d) Election.--An election under this section may be made
only with respect to the first taxable year beginning after the
date of the enactment of this section.''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2)
of section 1(h) is amended to read as follows:
``(2) Reduction of net capital gain.--For purposes of
this subsection, the net capital gain for any taxable
year shall be reduced (but not below zero) by the sum
of--
``(A) the amount which the taxpayer takes
into account as investment income under section
163(d)(4)(B)(iii), and
``(B) in the case of a taxable year with
respect to which an election is in effect under
section 1203, the taxpayer's qualified timber
gain (as defined in section 1203(b)).''.
(2) Corporations.--Section 1201 is amended by
redesignating subsection (b) as subsection (c) and
inserting after subsection (a) the following new
subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For
purposes of this section, in the case of a corporation with
respect to which an election is in effect under section 1203,
the net capital gain for any taxable year shall be reduced (but
not below zero) by the corporation's qualified timber gain (as
defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes
Other Deductions.--Subsection (a) of section 62 is amended by
inserting before the last sentence the following new paragraph:
``(22) Qualified timber gains.--The deduction allowed
by section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current
Earnings.--Subparagraph (C) of section 56(g)(4) is amended by
adding at the end the following new clause:
``(vii) Deduction for qualified
timber gain.--Clause (i) shall not
apply to any deduction allowed under
section 1203.''.
(e) Deduction Allowed in Computing Taxable Income of Electing
Small Business Trusts.--Subparagraph (C) of section 641(c)(2)
is amended by inserting after clause (iv) the following new
clause:
``(v) The deduction allowed under
section 1203.''.
(f) Treatment of Qualified Timber Gain of Real Estate
Investment Trusts.--Paragraph (3) of section 857(b) is amended
by inserting after subparagraph (F) the following new
subparagraph:
``(G) Treatment of qualified timber gain.--
For purposes of this part, in the case of a
real estate investment trust with respect to
which an election is in effect under section
1203--
``(i) Reduction of net capital
gain.--The net capital gain of the real
estate investment trust for any taxable
year shall be reduced (but not below
zero) by the real estate investment
trust's qualified timber gain (as
defined in section 1203(b)).
``(ii) Adjustment to shareholder's
basis attributable to deduction for
qualified timber gains.--
``(I) In general.--The
adjusted basis of shares in the
hands of the shareholder shall
be increased by the amount of
the deduction allowable under
section 1203(a) as provided in
subclauses (II) and (III).
``(II) Allocation of basis
increase for distributions made
during taxable year.--For any
taxable year of a real estate
investment trust for which an
election is in effect under
section 1203, in the case of a
distribution made with respect
to shares during such taxable
year of amounts attributable to
the deduction allowable under
section 1203(a), the adjusted
basis of such shares shall be
increased by the amount of such
distributions.
``(III) Allocation of
excess.--If the deduction
allowable under section 1203(a)
for a taxable year exceeds the
amount of distributions
described in subclause (II),
the excess shall be allocated
to every shareholder of the
real estate investment trust at
the close of the trust's
taxable year in the same manner
as if a distribution of such
excess were made with respect
to such shares.
``(IV) Designations.--To the
extent provided in regulations,
a real estate investment trust
shall designate the amounts
described in subclauses (II)
and (III) in a manner similar
to the designations provided
with respect to capital gains
described in subparagraphs (C)
and (D).
``(V) Definitions.--As used
in this subparagraph, the terms
`share' and `shareholder' shall
include beneficial interests
and holders of beneficial
interests, respectively.
``(iii) Earnings and profits
deduction for qualified timber gains.--
The deduction allowable under section
1203(a) for a taxable year shall be
allowed as a deduction in computing the
earnings and profits of the real estate
investment trust for such taxable year.
The earnings and profits of any such
shareholder which is a corporation
shall be appropriately adjusted in
accordance with regulations prescribed
by the Secretary.''.
(g) Loss Attributable to Basis Adjustment for Deduction for
Qualified Timber Gain of Real Estate Investment Trusts.--
(1) Section 857(b)(8) is amended by redesignating
subparagraphs (B) and (C) as subparagraphs (C) and (D),
respectively, and by inserting after subparagraph (A)
the following new subparagraph:
``(B) Loss attributable to basis adjustment
for deduction for qualified timber gain.--If--
``(i) a shareholder of a real estate
investment trust receives a basis
adjustment provided under subsection
(b)(3)(G)(ii), and
``(ii) the taxpayer has held such
share or interest for 6 months or less,
then any loss on the sale or exchange of such
share or interest shall, to the extent of the
amount described in clause (i), be
disallowed.''.
(2) Subparagraph (D) of section 857(b)(8), as
redesignated by paragraph (1), is amended by striking
``subparagraph (A)'' and inserting ``subparagraphs (A)
and (B)''.
(h) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended
to read as follows:
``(B) the exclusion under section 1202, and
the deduction under section 1203, shall not be
allowed.''.
(2) Paragraph (4) of section 642(c) is amended by
striking the first sentence and inserting ``To the
extent that the amount otherwise allowable as a
deduction under this subsection consists of gain
described in section 1202(a) or qualified timber gain
(as defined in section 1203(b)), proper adjustment
shall be made for any exclusion allowable to the estate
or trust under section 1202 and for any deduction
allowable to the estate or trust under section 1203.''
(3) Paragraph (3) of section 643(a) is amended by
striking the last sentence and inserting ``The
exclusion under section 1202 and the deduction under
section 1203 shall not be taken into account.''.
(4) Subparagraph (C) of section 643(a)(6) is amended
to read as follows:
``(C) Paragraph (3) shall not apply to a
foreign trust. In the case of such a trust--
``(i) there shall be included gains
from the sale or exchange of capital
assets, reduced by losses from such
sales or exchanges to the extent such
losses do not exceed gains from such
sales or exchanges, and
``(ii) the deduction under section
1203 shall not be taken into
account.''.
(5) Paragraph (4) of section 691(c) is amended by
inserting ``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by
inserting ``or 1203,'' after ``1202,''.
(7) The table of sections for part I of subchapter P
of chapter 1 is amended by adding at the end the
following new item:
``Sec. 1203. Deduction for qualified timber gain.''.
(i) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1552. EXCISE TAX NOT APPLICABLE TO SECTION 1203 DEDUCTION OF REAL
ESTATE INVESTMENT TRUSTS.
(a) In General.--
(1) Ordinary income.--Subparagraph (B) of section
4981(e)(1) is amended to read as follows:
``(B) by not taking into account--
``(i) any gain or loss from the sale
or exchange of capital assets
(determined without regard to any
reduction that would be applied for
purposes of section 857(b)(3)(G)(i)),
and
``(ii) any deduction allowable under
section 1203, and''.
(2) Capital gain net income.--Section 4981(e)(2) is
amended by adding at the end the following new
subparagraph:
``(D) Qualified timber gain.--The amount
determined under subparagraph (A) shall be
determined without regard to any reduction that
would be applied for purposes of section
857(b)(3)(G)(i) but shall be reduced for any
deduction allowable under section 1203 for such
calendar year.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1553. TIMBER REIT MODERNIZATION.
(a) In General.--Section 856(c)(5) is amended by adding after
subparagraph (G) the following new subparagraph:
``(H) Treatment of timber gains.--
``(i) In general.--Gain from the sale
of real property described in paragraph
(2)(D) and (3)(C) shall include gain
which is--
``(I) recognized by an
election under section 631(a)
from timber owned by the real
estate investment trust, the
cutting of which is provided by
a taxable REIT subsidiary of
the real estate investment
trust;
``(II) recognized under
section 631(b); or
``(III) income which would
constitute gain under subclause
(I) or (II) but for the failure
to meet the 1-year holding
period requirement.
``(ii) Special rules.--
``(I) For purposes of this
subtitle, cut timber, the gain
of which is recognized by a
real estate investment trust
pursuant to an election under
section 631(a) described in
clause (i)(I) or so much of
clause (i)(III) as relates to
clause (i)(I), shall be deemed
to be sold to the taxable REIT
subsidiary of the real estate
investment trust on the first
day of the taxable year.
``(II) For purposes of this
subtitle, income described in
this subparagraph shall not be
treated as gain from the sale
of property described in
section 1221(a)(1).
``(iii) Termination.--This
subparagraph shall not apply to
dispositions after the termination
date.''.
(b) Termination Date.--Subsection (c) of section 856 is
amended by adding at the end the following new paragraph:
``(8) Termination date.--For purposes of this
subsection, the term `termination date' means the last
day of the first taxable year beginning after the date
of the enactment of this paragraph.''.
(c) Effective Date.--The amendments made by subsection (a)
shall apply to dispositions in taxable years beginning after
the date of the enactment of this Act.
SEC. 1554. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.
(a) In General.--Section 856(c)(2) is amended by striking
``and'' at the end of subparagraph (G), by inserting ``and'' at
the end of subparagraph (H), and by adding after subparagraph
(H) the following new subparagraph:
``(I) mineral royalty income earned in the
first taxable year beginning after the date of
the enactment of this subparagraph from real
property owned by a timber real estate
investment trust held, or once held, in
connection with the trade or business of
producing timber by such real estate investment
trust;''.
(b) Timber Real Estate Investment Trust.--Section 856(c)(5),
as amended by this Act, is amended by adding after subparagraph
(H) the following new subparagraph:
``(I) Timber real estate investment trust.--
The term `timber real estate investment trust'
means a real estate investment trust in which
more than 50 percent in value of its total
assets consists of real property held in
connection with the trade or business of
producing timber.''.
(c) Effective Date.--The amendments by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1555. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST FOR
TIMBER REITS.
(a) In General.--Section 856(c)(4)(B)(ii) is amended by
inserting ``(in the case of a quarter which closes on or before
the termination date, 25 percent in the case of a timber real
estate investment trust)'' after ``not more than 20 percent of
the value of its total assets is represented by securities of
one or more taxable REIT subsidiaries''.
(b) Effective Date.--The amendment made by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1556. SAFE HARBOR FOR TIMBER PROPERTY.
(a) In General.--Section 857(b)(6) (relating to income from
prohibited transactions) is amended by adding at the end the
following new subparagraph:
``(G) Special rules for sales to qualified
organizations.--
``(i) In general.--In the case of
sale of a real estate asset (as defined
in section 856(c)(5)(B)) to a qualified
organization (as defined in section
170(h)(3)) exclusively for conservation
purposes (within the meaning of section
170(h)(1)(C)), subparagraph (D) shall
be applied--
``(I) by substituting `2
years' for `4 years' in clause
(i), and
``(II) by substituting `2-
year period' for `4-year
period' in clauses (ii) and
(iii).
``(ii) Termination.--This
subparagraph shall not apply to sales
after the termination date.''.
(b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is
amended by inserting ``or, in the case of a sale on or before
the termination date, a taxable REIT subsidiary'' after
``independent contractor (as defined in section 856(d)(3)) from
whom the trust itself does not derive or receive any income''.
(c) Sales That Are Not Prohibited Transactions.--Section
857(b)(6), as amended by subsection (a), is amended by adding
at the end the following new subparagraph:
``(H) Sales of property that are not a
prohibited transaction.--In the case of a sale
on or before the termination date, the sale of
property which is not a prohibited transaction
through application of subparagraph (D) shall
be considered property held for investment or
for use in a trade or business and not property
described in section 1221(a)(1) for all
purposes of this subtitle.''.
(d) Termination Date.--Section 857(b)(6), as amended by
subsections (a) and (c), is amended by adding at the end the
following new subparagraph:
``(I) Termination date.--For purposes of this
paragraph, the term `termination date' means
the last day of the first taxable year
beginning after the date of the enactment of
this subparagraph.''.
(e) Effective Date.--The amendments made by this section
shall apply to dispositions in taxable years beginning after
the date of the enactment of this Act.
PART II--EXXON VALDEZ
SEC. 1557. INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION WITH THE
EXXON VALDEZ LITIGATION.
(a) Income Averaging of Amounts Received From the Exxon
Valdez Litigation.--For purposes of section 1301 of the
Internal Revenue Code of 1986--
(1) any qualified taxpayer who receives any qualified
settlement income in any taxable year shall be treated
as engaged in a fishing business (determined without
regard to the commercial nature of the business), and
(2) such qualified settlement income shall be treated
as income attributable to such a fishing business for
such taxable year.
(b) Contributions of Amounts Received to Retirement
Accounts.--
(1) In general.--Any qualified taxpayer who receives
qualified settlement income during the taxable year
may, at any time before the end of the taxable year in
which such income was received, make one or more
contributions to an eligible retirement plan of which
such qualified taxpayer is a beneficiary in an
aggregate amount not to exceed the lesser of--
(A) $100,000 (reduced by the amount of
qualified settlement income contributed to an
eligible retirement plan in prior taxable years
pursuant to this subsection), or
(B) the amount of qualified settlement income
received by the individual during the taxable
year.
(2) Time when contributions deemed made.--For
purposes of paragraph (1), a qualified taxpayer shall
be deemed to have made a contribution to an eligible
retirement plan on the last day of the taxable year in
which such income is received if the contribution is
made on account of such taxable year and is made not
later than the time prescribed by law for filing the
return for such taxable year (not including extensions
thereof).
(3) Treatment of contributions to eligible retirement
plans.--For purposes of the Internal Revenue Code of
1986, if a contribution is made pursuant to paragraph
(1) with respect to qualified settlement income, then--
(A) except as provided in paragraph (4)--
(i) to the extent of such
contribution, the qualified settlement
income shall not be included in taxable
income, and
(ii) for purposes of section 72 of
such Code, such contribution shall not
be considered to be investment in the
contract,
(B) the qualified taxpayer shall, to the
extent of the amount of the contribution, be
treated--
(i) as having received the qualified
settlement income--
(I) in the case of a
contribution to an individual
retirement plan (as defined
under section 7701(a)(37) of
such Code), in a distribution
described in section 408(d)(3)
of such Code, and
(II) in the case of any other
eligible retirement plan, in an
eligible rollover distribution
(as defined under section
402(f)(2) of such Code), and
(ii) as having transferred the amount
to the eligible retirement plan in a
direct trustee to trustee transfer
within 60 days of the distribution,
(C) section 408(d)(3)(B) of the Internal
Revenue Code of 1986 shall not apply with
respect to amounts treated as a rollover under
this paragraph, and
(D) section 408A(c)(3)(B) of the Internal
Revenue Code of 1986 shall not apply with
respect to amounts contributed to a Roth IRA
(as defined under section 408A(b) of such Code)
or a designated Roth contribution to an
applicable retirement plan (within the meaning
of section 402A of such Code) under this
paragraph.
(4) Special rule for roth iras and roth 401(k)s.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with
respect to qualified settlement income to a Roth IRA
(as defined under section 408A(b) of such Code) or as a
designated Roth contribution to an applicable
retirement plan (within the meaning of section 402A of
such Code), then--
(A) the qualified settlement income shall be
includible in taxable income, and
(B) for purposes of section 72 of such Code,
such contribution shall be considered to be
investment in the contract.
(5) Eligible retirement plan.--For purpose of this
subsection, the term ``eligible retirement plan'' has
the meaning given such term under section 402(c)(8)(B)
of the Internal Revenue Code of 1986.
(c) Treatment of Qualified Settlement Income Under Employment
Taxes.--
(1) SECA.--For purposes of chapter 2 of the Internal
Revenue Code of 1986 and section 211 of the Social
Security Act, no portion of qualified settlement income
received by a qualified taxpayer shall be treated as
self-employment income.
(2) FICA.--For purposes of chapter 21 of the Internal
Revenue Code of 1986 and section 209 of the Social
Security Act, no portion of qualified settlement income
received by a qualified taxpayer shall be treated as
wages.
(d) Qualified Taxpayer.--For purposes of this section, the
term ``qualified taxpayer'' means--
(1) any individual who is a plaintiff in the civil
action In re Exxon Valdez, No. 89-095-CV (HRH)
(Consolidated) (D. Alaska); or
(2) any individual who is a beneficiary of the estate
of such a plaintiff who--
(A) acquired the right to receive qualified
settlement income from that plaintiff; and
(B) was the spouse or an immediate relative
of that plaintiff.
(e) Qualified Settlement Income.--For purposes of this
section, the term ``qualified settlement income'' means any
interest and punitive damage awards which are--
(1) otherwise includible in taxable income, and
(2) received (whether as lump sums or periodic
payments) in connection with the civil action In re
Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D.
Alaska) (whether pre- or post-judgment and whether
related to a settlement or judgment).
Subtitle E--Revenue Provisions
SEC. 1561. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC
PRODUCTION OF OIL, GAS, OR A PRIMARY PRODUCTS
THEREOF.
(a) Denial of Deduction for Major Integrated Oil Companies
for Income Attributable to Domestic Production of Oil, Gas, or
Primary Products Thereof.--
(1) In general.--Subparagraph (B) of section
199(c)(4) (relating to exceptions) is amended by
striking ``or'' at the end of clause (ii), by striking
the period at the end of clause (iii) and inserting ``,
or'', and by inserting after clause (iii) the following
new clause:
``(iv) in the case of any major
integrated oil company (as defined in
section 167(h)(5)(B)), the production,
refining, processing, transportation,
or distribution of oil, gas, or any
primary product thereof during any
taxable year described in section
167(h)(5)(B).''.
(2) Primary product.--Section 199(c)(4)(B) is amended
by adding at the end the following flush sentence:
``For purposes of clause (iv), the term
`primary product' has the same meaning as when
used in section 927(a)(2)(C), as in effect
before its repeal.''.
(b) Limitation on Oil Related Qualified Production Activities
Income for Taxpayers Other Than Major Integrated Oil
Companies.--
(1) In general.--Section 199(d) is amended by
redesignating paragraph (9) as paragraph (10) and by
inserting after paragraph (8) the following new
paragraph:
``(9) Special rule for taxpayers with oil related
qualified production activities income.--
``(A) In general.--If a taxpayer (other than
a major integrated oil company (as defined in
section 167(h)(5)(B))) has oil related
qualified production activities income for any
taxable year beginning after 2009, the amount
of the deduction under subsection (a) shall be
reduced by 3 percent of the least of--
``(i) the oil related qualified
production activities income of the
taxpayer for the taxable year,
``(ii) the qualified production
activities income of the taxpayer for
the taxable year, or
``(iii) taxable income (determined
without regard to this section).
``(B) Oil related qualified production
activities income.--The term `oil related
qualified production activities income' means
for any taxable year the qualified production
activities income which is attributable to the
production, refining, processing,
transportation, or distribution of oil, gas, or
any primary product thereof during such taxable
year.''.
(2) Conforming amendment.--Section 199(d)(2)
(relating to application to individuals) is amended by
striking ``subsection (a)(1)(B)'' and inserting
``subsections (a)(1)(B) and (d)(9)(A)(iii)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2007.
SEC. 1562. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN OIL AND
GAS EXTRACTION INCOME AND FOREIGN OIL RELATED
INCOME FOR PURPOSES OF THE FOREIGN TAX CREDIT.
(a) In General.--Subsections (a) and (b) of section 907
(relating to special rules in case of foreign oil and gas
income) are amended to read as follows:
``(a) Reduction in Amount Allowed as Foreign Tax Under
Section 901.--In applying section 901, the amount of any
foreign oil and gas taxes paid or accrued (or deemed to have
been paid) during the taxable year which would (but for this
subsection) be taken into account for purposes of section 901
shall be reduced by the amount (if any) by which the amount of
such taxes exceeds the product of--
``(1) the amount of the combined foreign oil and gas
income for the taxable year,
``(2) multiplied by--
``(A) in the case of a corporation, the
percentage which is equal to the highest rate
of tax specified under section 11(b), or
``(B) in the case of an individual, a
fraction the numerator of which is the tax
against which the credit under section 901(a)
is taken and the denominator of which is the
taxpayer's entire taxable income.
``(b) Combined Foreign Oil and Gas Income; Foreign Oil and
Gas Taxes.--For purposes of this section--
``(1) Combined foreign oil and gas income.--The term
`combined foreign oil and gas income' means, with
respect to any taxable year, the sum of--
``(A) foreign oil and gas extraction income,
and
``(B) foreign oil related income.
``(2) Foreign oil and gas taxes.--The term `foreign
oil and gas taxes' means, with respect to any taxable
year, the sum of--
``(A) oil and gas extraction taxes, and
``(B) any income, war profits, and excess
profits taxes paid or accrued (or deemed to
have been paid or accrued under section 902 or
960) during the taxable year with respect to
foreign oil related income (determined without
regard to subsection (c)(4)) or loss which
would be taken into account for purposes of
section 901 without regard to this section.''.
(b) Recapture of Foreign Oil and Gas Losses.--Paragraph (4)
of section 907(c) (relating to recapture of foreign oil and gas
extraction losses by recharacterizing later extraction income)
is amended to read as follows:
``(4) Recapture of foreign oil and gas losses by
recharacterizing later combined foreign oil and gas
income.--
``(A) In general.--The combined foreign oil
and gas income of a taxpayer for a taxable year
(determined without regard to this paragraph)
shall be reduced--
``(i) first by the amount determined
under subparagraph (B), and
``(ii) then by the amount determined
under subparagraph (C).
The aggregate amount of such reductions shall
be treated as income (from sources without the
United States) which is not combined foreign
oil and gas income.
``(B) Reduction for pre-2008 foreign oil
extraction losses.--The reduction under this
paragraph shall be equal to the lesser of--
``(i) the foreign oil and gas
extraction income of the taxpayer for
the taxable year (determined without
regard to this paragraph), or
``(ii) the excess of--
``(I) the aggregate amount of
foreign oil extraction losses
for preceding taxable years
beginning after December 31,
1982, and before January 1,
2008, over
``(II) so much of such
aggregate amount as was
recharacterized under this
paragraph (as in effect before
and after the date of the
enactment of the Clean
Renewable Energy and
Conservation Tax Act of 2007)
for preceding taxable years
beginning after December 31,
1982.
``(C) Reduction for post-2007 foreign oil and
gas losses.--The reduction under this paragraph
shall be equal to the lesser of--
``(i) the combined foreign oil and
gas income of the taxpayer for the
taxable year (determined without regard
to this paragraph), reduced by an
amount equal to the reduction under
subparagraph (A) for the taxable year,
or
``(ii) the excess of--
``(I) the aggregate amount of
foreign oil and gas losses for
preceding taxable years
beginning after December 31,
2007, over
``(II) so much of such
aggregate amount as was
recharacterized under this
paragraph for preceding taxable
years beginning after December
31, 2007.
``(D) Foreign oil and gas loss defined.--
``(i) In general.--For purposes of
this paragraph, the term `foreign oil
and gas loss' means the amount by
which--
``(I) the gross income for
the taxable year from sources
without the United States and
its possessions (whether or not
the taxpayer chooses the
benefits of this subpart for
such taxable year) taken into
account in determining the
combined foreign oil and gas
income for such year, is
exceeded by
``(II) the sum of the
deductions properly apportioned
or allocated thereto.
``(ii) Net operating loss deduction
not taken into account.--For purposes
of clause (i), the net operating loss
deduction allowable for the taxable
year under section 172(a) shall not be
taken into account.
``(iii) Expropriation and casualty
losses not taken into account.--For
purposes of clause (i), there shall not
be taken into account--
``(I) any foreign
expropriation loss (as defined
in section 172(h) (as in effect
on the day before the date of
the enactment of the Revenue
Reconciliation Act of 1990))
for the taxable year, or
``(II) any loss for the
taxable year which arises from
fire, storm, shipwreck, or
other casualty, or from theft,
to the extent such loss is not
compensated for by insurance or
otherwise.
``(iv) Foreign oil extraction loss.--
For purposes of subparagraph
(B)(ii)(I), foreign oil extraction
losses shall be determined under this
paragraph as in effect on the day
before the date of the enactment of the
Clean Renewable Energy and Conservation
Tax Act of 2007.''.
(c) Carryback and Carryover of Disallowed Credits.--Section
907(f) (relating to carryback and carryover of disallowed
credits) is amended--
(1) by striking ``oil and gas extraction taxes'' each
place it appears and inserting ``foreign oil and gas
taxes'', and
(2) by adding at the end the following new paragraph:
``(4) Transition rules for pre-2008 and 2008
disallowed credits.--
``(A) Pre-2008 credits.--In the case of any
unused credit year beginning before January 1,
2008, this subsection shall be applied to any
unused oil and gas extraction taxes carried
from such unused credit year to a year
beginning after December 31, 2007--
``(i) by substituting `oil and gas
extraction taxes' for `foreign oil and
gas taxes' each place it appears in
paragraphs (1), (2), and (3), and
``(ii) by computing, for purposes of
paragraph (2)(A), the limitation under
subparagraph (A) for the year to which
such taxes are carried by substituting
`foreign oil and gas extraction income'
for `foreign oil and gas income' in
subsection (a).
``(B) 2008 credits.--In the case of any
unused credit year beginning in 2008, the
amendments made to this subsection by the Clean
Renewable Energy and Conservation Tax Act of
2007 shall be treated as being in effect for
any preceding year beginning before January 1,
2008, solely for purposes of determining how
much of the unused foreign oil and gas taxes
for such unused credit year may be deemed paid
or accrued in such preceding year.''.
(d) Conforming Amendment.--Section 6501(i) is amended by
striking ``oil and gas extraction taxes'' and inserting
``foreign oil and gas taxes''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2007.
SEC. 1563. SEVEN-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL
COMPANIES.
(a) In General.--Subparagraph (A) of section 167(h)(5)
(relating to special rule for major integrated oil companies)
is amended by striking ``5-year'' and inserting ``7-year''.
(b) Effective Date.--The amendment made by this section shall
apply to amounts paid or incurred after the date of the
enactment of this Act.
SEC. 1564. BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES
TRANSACTIONS.
(a) In General.--
(1) Broker reporting for securities transactions.--
Section 6045 (relating to returns of brokers) is
amended by adding at the end the following new
subsection:
``(g) Additional Information Required in the Case of
Securities Transactions.--
``(1) In general.--If a broker is otherwise required
to make a return under subsection (a) with respect to
the gross proceeds of the sale of a covered security,
the broker shall include in such return the information
described in paragraph (2).
``(2) Additional information required.--
``(A) In general.--The information required
under paragraph (1) to be shown on a return
with respect to a covered security of a
customer shall include the customer's adjusted
basis in such security and whether any gain or
loss with respect to such security is long-term
or short-term (within the meaning of section
1222).
``(B) Determination of adjusted basis.--For
purposes of subparagraph (A)--
``(i) In general.--The customer's
adjusted basis shall be determined--
``(I) in the case of any
stock (other than any stock in
an open-end fund), in
accordance with the first-in
first-out method unless the
customer notifies the broker by
means of making an adequate
identification of the stock
sold or transferred,
``(II) in the case of any
stock in an open-end fund
acquired before January 1,
2011, in accordance with any
acceptable method under section
1012 with respect to the
account in which such interest
is held,
``(III) in the case of any
stock in an open-end fund
acquired after December 31,
2010, in accordance with the
broker's default method unless
the customer notifies the
broker that he elects another
acceptable method under section
1012 with respect to the
account in which such interest
is held, and
``(IV) in any other case,
under the method for making
such determination under
section 1012.
``(ii) Exception for wash sales.--
Except as otherwise provided by the
Secretary, the customer's adjusted
basis shall be determined without
regard to section 1091 (relating to
loss from wash sales of stock or
securities) unless the transactions
occur in the same account with respect
to identical securities.
``(3) Covered security.--For purposes of this
subsection--
``(A) In general.--The term `covered
security' means any specified security acquired
on or after the applicable date if such
security--
``(i) was acquired through a
transaction in the account in which
such security is held, or
``(ii) was transferred to such
account from an account in which such
security was a covered security, but
only if the broker received a statement
under section 6045A with respect to the
transfer.
``(B) Specified security.--The term
`specified security' means--
``(i) any share of stock in a
corporation,
``(ii) any note, bond, debenture, or
other evidence of indebtedness,
``(iii) any commodity, or contract or
derivative with respect to such
commodity, if the Secretary determines
that adjusted basis reporting is
appropriate for purposes of this
subsection, and
``(iv) any other financial instrument
with respect to which the Secretary
determines that adjusted basis
reporting is appropriate for purposes
of this subsection.
``(C) Applicable date.--The term `applicable
date' means--
``(i) January 1, 2009, in the case of
any specified security which is stock
in a corporation, and
``(ii) January 1, 2011, or such later
date determined by the Secretary in the
case of any other specified security.
``(4) Open-end fund.--For purposes of this
subsection, the term `open-end fund' means a regulated
investment company (as defined in section 851) which is
offering for sale or has outstanding any redeemable
security of which it is the issuer and the shares of
which are not traded on an established securities
exchange.
``(5) Treatment of s corporations.--In the case of
the sale of a covered security acquired by an S
corporation (other than a financial institution) after
December 31, 2010, such S corporation shall be treated
in the same manner as a partnership for purposes of
this section.
``(6) Special rules for short sales.--
``(A) In general.--Notwithstanding subsection
(a), in the case of a short sale under section
1233, reporting under this section shall be
made for the year in which such sale is closed.
``(B) Exception for constructive sales.--
Subparagraph (A) shall not apply to any short
sale which results in a constructive sale under
section 1259 with respect to property held in
the account in which the short sale is entered
into.''.
(2) Broker information required with respect to
options.--Section 6045, as amended by subsection (a),
is amended by adding at the end the following new
subsection:
``(h) Application to Options on Securities.--
``(1) Exercise of option.--For purposes of this
section, in the case of any exercise of an option on a
covered security where the option was granted or
acquired in the same account as the covered security,
the amount received or paid with respect to such
exercise shall be treated as an adjustment to gross
proceeds or as an adjustment to basis, as the case may
be.
``(2) Lapse or closing transaction.--For purposes of
this section, in the case of the lapse (or closing
transaction (as defined in section 1234(b)(2)(A))) of
an option on a specified security where the taxpayer is
the grantor of the option, this section shall apply as
if the premium received for such option were gross
proceeds received on the date of the lapse or closing
transaction, and the cost (if any) of the closing
transaction shall be taken into account as adjusted
basis. In the case of an option on a specified security
where the taxpayer is the grantee of such option, this
section shall apply as if the grantee received gross
proceeds of zero on the date of the lapse.
``(3) Prospective application.--Paragraphs (1) and
(2) shall not apply to any option which is granted or
acquired before January 1, 2011.
``(4) Definitions.--For purposes of this subsection,
the terms `covered security' and `specified security'
shall have the meanings given such terms in subsection
(g)(3).''.
(3) Extension of period for statements sent to
customers.--
(A) In general.--Subsection (b) of section
6045 is amended by striking ``January 31'' and
inserting ``February 15 (January 31 in the case
of returns for calendar years before 2010)''.
(B) Statements related to substitute
payments.--Subsection (d) of section 6045 is
amended--
(i) by striking ``at such time and'',
and
(ii) by inserting after ``other
item.'' the following new sentence:
``In the case of a payment made during
any calendar year after 2009, the
written statement required under the
preceding sentence shall be furnished
on or before February 15 of the year
following the calendar year in which
the payment was made.''.
(C) Other statements.--Subsection (b) of
section 6045 is amended by adding at the end
the following: ``In the case of a consolidated
reporting statement (as defined in regulations)
with respect to any account which includes the
statement required by this subsection, any
statement which would otherwise be required to
be furnished on or before January 31 of a
calendar year after 2010 under section 6042(c),
6049(c)(2)(A), or 6050N(b) with respect to any
item in such account shall instead be required
to be furnished on or before February 15 of
such calendar year if furnished as part of such
consolidated reporting statement.''.
(b) Determination of Basis of Certain Securities on Account
by Account Method.--Section 1012 (relating to basis of
property-cost) is amended--
(1) by striking ``The basis of property'' and
inserting the following:
``(a) In General.--The basis of property'',
(2) by striking ``The cost of real property'' and
inserting the following:
``(b) Special Rule for Apportioned Real Estate Taxes.--The
cost of real property'', and
(3) by adding at the end the following new
subsection:
``(c) Determinations by Account.--
``(1) In general.--In the case of the sale, exchange,
or other disposition of a specified security on or
after the applicable date, the conventions prescribed
by regulations under this section shall be applied on
an account by account basis.
``(2) Application to open-end funds.--
``(A) In general.--Except as provided in
subparagraph (B), any stock in an open-end fund
acquired before January 1, 2009, shall be
treated as a separate account from any such
stock acquired on or after such date.
``(B) Election by open-end fund for treatment
as single account.--If an open-end fund elects
(at such time and in such form and manner as
the Secretary may prescribe) to have this
subparagraph apply with respect to one or more
of its stockholders--
``(i) subparagraph (A) shall not
apply with respect to any stock in such
fund held by such stockholders, and
``(ii) all stock in such fund which
is held by such stockholders shall be
treated as covered securities described
in section 6045(g)(3) without regard to
the date of the acquisition of such
stock.
A rule similar to the rule of the preceding
sentence shall apply with respect to a broker
holding stock in an open-end fund as a nominee.
``(3) Definitions.--For purposes of this section, the
terms `specified security', `applicable date', and
`open-end fund' shall have the meaning given such terms
in section 6045(g).''.
(c) Information by Transferors To Aid Brokers.--
(1) In general.--Subpart B of part III of subchapter
A of chapter 61 is amended by inserting after section
6045 the following new section:
``SEC. 6045A. INFORMATION REQUIRED IN CONNECTION WITH TRANSFERS OF
COVERED SECURITIES TO BROKERS.
``(a) Furnishing of Information.--Every applicable person
which transfers to a broker (as defined in section 6045(c)(1))
a security which is a covered security (as defined in section
6045(g)(3)) in the hands of such applicable person shall
furnish to such broker a written statement in such manner and
setting forth such information as the Secretary may by
regulations prescribe for purposes of enabling such broker to
meet the requirements of section 6045(g).
``(b) Applicable Person.--For purposes of subsection (a), the
term `applicable person' means--
``(1) any broker (as defined in section 6045(c)(1)),
and
``(2) any other person as provided by the Secretary
in regulations.
``(c) Time for Furnishing Statement.--Any statement required
by subsection (a) shall be furnished not later than the earlier
of--
``(1) 45 days after the date of the transfer
described in subsection (a), or
``(2) January 15 of the year following the calendar
year during which such transfer occurred.''.
(2) Assessable penalties.--Paragraph (2) of section
6724(d) (defining payee statement) is amended by
redesignating subparagraphs (I) through (CC) as
subparagraphs (J) through (DD), respectively, and by
inserting after subparagraph (H) the following new
subparagraph:
``(I) section 6045A (relating to information
required in connection with transfers of
covered securities to brokers).''.
(3) Clerical amendment.--The table of sections for
subpart B of part III of subchapter A of chapter 61 is
amended by inserting after the item relating to section
6045 the following new item:
``Sec. 6045A. Information required in connection with transfers of
covered securities to brokers.''.
(d) Additional Issuer Information to Aid Brokers.--
(1) In general.--Subpart B of part III of subchapter
A of chapter 61 of the Internal Revenue Code of 1986,
as amended by subsection (b), is amended by inserting
after section 6045A the following new section:
``SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING BASIS OF SPECIFIED
SECURITIES.
``(a) In General.--According to the forms or regulations
prescribed by the Secretary, any issuer of a specified security
shall make a return setting forth--
``(1) a description of any organizational action
which affects the basis of such specified security of
such issuer,
``(2) the quantitative effect on the basis of such
specified security resulting from such action, and
``(3) such other information as the Secretary may
prescribe.
``(b) Time for Filing Return.--Any return required by
subsection (a) shall be filed not later than the earlier of--
``(1) 45 days after the date of the action described
in subsection (a), or
``(2) January 15 of the year following the calendar
year during which such action occurred.
``(c) Statements To Be Furnished to Holders of Specified
Securities or Their Nominees.--According to the forms or
regulations prescribed by the Secretary, every person required
to make a return under subsection (a) with respect to a
specified security shall furnish to the nominee with respect to
the specified security (or certificate holder if there is no
nominee) a written statement showing--
``(1) the name, address, and phone number of the
information contact of the person required to make such
return,
``(2) the information required to be shown on such
return with respect to such security, and
``(3) such other information as the Secretary may
prescribe.
The written statement required under the preceding sentence
shall be furnished to the holder on or before January 15 of the
year following the calendar year during which the action
described in subsection (a) occurred.
``(d) Specified Security.--For purposes of this section, the
term `specified security' has the meaning given such term by
section 6045(g)(3)(B). No return shall be required under this
section with respect to actions described in subsection (a)
with respect to a specified security which occur before the
applicable date (as defined in section 6045(g)(3)(C)) with
respect to such security.
``(e) Public Reporting in Lieu of Return.--The Secretary may
waive the requirements under subsections (a) and (c) with
respect to a specified security, if the person required to make
the return under subsection (a) makes publicly available, in
such form and manner as the Secretary determines necessary to
carry out the purposes of this section--
``(1) the name, address, phone number, and email
address of the information contact of such person, and
``(2) the information described in paragraphs (1),
(2), and (3) of subsection (a).''.
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1) of
such Code (defining information return) is
amended by redesignating clauses (iv) through
(xix) as clauses (v) through (xx),
respectively, and by inserting after clause
(iii) the following new clause:
``(iv) section 6045B(a) (relating to
returns relating to actions affecting
basis of specified securities),''.
(B) Paragraph (2) of section 6724(d) of such
Code (defining payee statement), as amended by
subsection (c)(2), is amended by redesignating
subparagraphs (J) through (DD) as subparagraphs
(K) through (EE), respectively, and by
inserting after subparagraph (I) the following
new subparagraph:
``(J) subsections (c) and (e) of section
6045B (relating to returns relating to actions
affecting basis of specified securities).''.
(3) Clerical amendment.--The table of sections for
subpart B of part III of subchapter A of chapter 61 of
such Code, as amended by subsection (b)(3), is amended
by inserting after the item relating to section 6045A
the following new item:
``Sec. 6045B. Returns relating to actions affecting basis of specified
securities.''.
(e) Effective Date.--The amendments made by this section
shall take effect on January 1, 2009.
(f) Study Regarding Information Returns.--
(1) In general.--The Secretary of the Treasury shall
study the effect and feasibility of delaying the date
for furnishing statements under sections 6042(c), 6045,
6049(c)(2)(A), and 6050N(b) of the Internal Revenue
Code of 1986 until February 15 following the year to
which such statements relate.
(2) Report.--Not later than 6 months after the date
of the enactment of this Act, the Secretary of the
Treasury shall report to Congress on the results of the
study conducted under paragraph (1). Such report shall
include the Secretary's findings regarding--
(A) the effect on tax administration of such
delay, and
(B) other administrative or legislative
options to improve compliance and ease burdens
on taxpayers and brokers with respect to such
statements.
SEC. 1565. EXTENSION OF ADDITIONAL 0.2 PERCENT FUTA SURTAX.
(a) In General.--Section 3301 (relating to rate of tax) is
amended--
(1) by striking ``2007'' in paragraph (1) and
inserting ``2008'', and
(2) by striking ``2008'' in paragraph (2) and
inserting ``2009''.
(b) Effective Date.--The amendments made by this section
shall apply to wages paid after December 31, 2007.
SEC. 1566. TERMINATION OF TREATMENT OF NATURAL GAS DISTRIBUTION LINES
AS 15-YEAR PROPERTY.
(a) In General.--Section 168(e)(3)(E)(viii) of the Internal
Revenue Code of 1986 is amended by striking ``January 1, 2011''
and inserting ``December 4, 2007''.
(b) Effective Date.--
(1) In general.--The amendments made by this section
shall apply to property placed in service after
December 3, 2007.
(2) Exception.--The amendments made by this section
shall not apply to any property with respect to which
the taxpayer or a related party has entered into a
binding contract for the construction thereof on or
before December 3, 2007, or, in the case of self-
constructed property, has started construction on or
before such date.
SEC. 1567. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under subparagraph (B) of section 401(1) of
the Tax Increase Prevention and Reconciliation Act of 2005 in
effect on the date of the enactment of this Act is increased by
6.25 percentage points.
SEC. 1568. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP
RETURNS.
(a) Extension of Time Limitation.--Section 6698(a) (relating
to failure to file partnership returns) is amended by striking
``5 months'' and inserting ``12 months''.
(b) Increase in Penalty Amount.--Paragraph (1) of section
6698(b) is amended by striking ``$50'' and inserting ``$80''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed after the date of
the enactment of this Act.
Subtitle F--Secure Rural Schools
SEC. 1571. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION
PROGRAM.
(a) Reauthorization of the Secure Rural Schools and Community
Self-Determination Act of 2000.--The Secure Rural Schools and
Community Self-Determination Act of 2000 (16 U.S.C. 500 note;
Public Law 106-393) is amended by striking sections 1 through
403 and inserting the following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Secure Rural Schools and
Community Self-Determination Act of 2000'.
``SEC. 2. PURPOSES.
``The purposes of this Act are--
``(1) to stabilize and transition payments to
counties to provide funding for schools and roads that
supplements other available funds;
``(2) to make additional investments in, and create
additional employment opportunities through, projects
that--
``(A)(i) improve the maintenance of existing
infrastructure;
``(ii) implement stewardship objectives that
enhance forest ecosystems; and
``(iii) restore and improve land health and
water quality;
``(B) enjoy broad-based support; and
``(C) have objectives that may include--
``(i) road, trail, and infrastructure
maintenance or obliteration;
``(ii) soil productivity improvement;
``(iii) improvements in forest
ecosystem health;
``(iv) watershed restoration and
maintenance;
``(v) the restoration, maintenance,
and improvement of wildlife and fish
habitat;
``(vi) the control of noxious and
exotic weeds; and
``(vii) the reestablishment of native
species; and
``(3) to improve cooperative relationships among--
``(A) the people that use and care for
Federal land; and
``(B) the agencies that manage the Federal
land.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Adjusted share.--The term `adjusted share'
means the number equal to the quotient obtained by
dividing--
``(A) the number equal to the quotient
obtained by dividing--
``(i) the base share for the eligible
county; by
``(ii) the income adjustment for the
eligible county; by
``(B) the number equal to the sum of the
quotients obtained under subparagraph (A) and
paragraph (8)(A) for all eligible counties.
``(2) Base share.--The term `base share' means the
number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal
land described in paragraph (7)(A) in
each eligible county; by
``(ii) the total number acres of
Federal land in all eligible counties
in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average
of the 3 highest 25-percent payments
and safety net payments made to each
eligible State for each eligible county
during the eligibility period; by
``(ii) the amount equal to the sum of
the amounts calculated under clause (i)
and paragraph (9)(B)(i) for all
eligible counties in all eligible
States during the eligibility period.
``(3) County payment.--The term `county payment'
means the payment for an eligible county calculated
under section 101(b).
``(4) Eligible county.--The term `eligible county'
means any county that--
``(A) contains Federal land (as defined in
paragraph (7)); and
``(B) elects to receive a share of the State
payment or the county payment under section
102(b).
``(5) Eligibility period.--The term `eligibility
period' means fiscal year 1986 through fiscal year
1999.
``(6) Eligible state.--The term `eligible State'
means a State or territory of the United States that
received a 25-percent payment for 1 or more fiscal
years of the eligibility period.
``(7) Federal land.--The term `Federal land' means--
``(A) land within the National Forest System,
as defined in section 11(a) of the Forest and
Rangeland Renewable Resources Planning Act of
1974 (16 U.S.C. 1609(a)) exclusive of the
National Grasslands and land utilization
projects designated as National Grasslands
administered pursuant to the Act of July 22,
1937 (7 U.S.C. 1010-1012); and
``(B) such portions of the revested Oregon
and California Railroad and reconveyed Coos Bay
Wagon Road grant land as are or may hereafter
come under the jurisdiction of the Department
of the Interior, which have heretofore or may
hereafter be classified as timberlands, and
power-site land valuable for timber, that shall
be managed, except as provided in the former
section 3 of the Act of August 28, 1937 (50
Stat. 875; 43 U.S.C. 1181c), for permanent
forest production.
``(8) 50-Percent adjusted share.--The term `50-
percent adjusted share' means the number equal to the
quotient obtained by dividing--
``(A) the number equal to the quotient
obtained by dividing--
``(i) the 50-percent base share for
the eligible county; by
``(ii) the income adjustment for the
eligible county; by
``(B) the number equal to the sum of the
quotients obtained under subparagraph (A) and
paragraph (1)(A) for all eligible counties.
``(9) 50-Percent base share.--The term `50-percent
base share' means the number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal
land described in paragraph (7)(B) in
each eligible county; by
``(ii) the total number acres of
Federal land in all eligible counties
in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average
of the 3 highest 50-percent payments
made to each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of
the amounts calculated under clause (i)
and paragraph (2)(B)(i) for all
eligible counties in all eligible
States during the eligibility period.
``(10) 50-percent payment.--The term `50-percent
payment' means the payment that is the sum of the 50-
percent share otherwise paid to a county pursuant to
title II of the Act of August 28, 1937 (chapter 876; 50
Stat. 875; 43 U.S.C. 1181f), and the payment made to a
county pursuant to the Act of May 24, 1939 (chapter
144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
``(11) Full funding amount.--The term `full funding
amount' means--
``(A) $500,000,000 for fiscal year 2008; and
``(B) for fiscal year 2009 and each fiscal
year thereafter, the amount that is equal to 85
percent of the full funding amount for the
preceding fiscal year.
``(12) Income adjustment.--The term `income
adjustment' means the square of the quotient obtained
by dividing--
``(A) the per capita personal income for each
eligible county; by
``(B) the median per capita personal income
of all eligible counties.
``(13) Per capita personal income.--The term `per
capita personal income' means the most recent per
capita personal income data, as determined by the
Bureau of Economic Analysis.
``(14) Safety net payments.--The term `safety net
payments' means the special payment amounts paid to
States and counties required by section 13982 or 13983
of the Omnibus Budget Reconciliation Act of 1993
(Public Law 103-66; 16 U.S.C. 500 note; 43 U.S.C. 1181f
note).
``(15) Secretary concerned.--The term `Secretary
concerned' means--
``(A) the Secretary of Agriculture or the
designee of the Secretary of Agriculture with
respect to the Federal land described in
paragraph (7)(A); and
``(B) the Secretary of the Interior or the
designee of the Secretary of the Interior with
respect to the Federal land described in
paragraph (7)(B).
``(16) State payment.--The term `State payment' means
the payment for an eligible State calculated under
section 101(a).
``(17) 25-Percent payment.--The term `25-percent
payment' means the payment to States required by the
sixth paragraph under the heading of `FOREST SERVICE'
in the Act of May 23, 1908 (35 Stat. 260; 16 U.S.C.
500), and section 13 of the Act of March 1, 1911 (36
Stat. 963; 16 U.S.C. 500).
``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL
LAND
``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL LAND.
``(a) State Payment.--For each of fiscal years 2008 through
2011, the Secretary of Agriculture shall calculate for each
eligible State an amount equal to the sum of the products
obtained by multiplying--
``(1) the adjusted share for each eligible county
within the eligible State; by
``(2) the full funding amount for the fiscal year.
``(b) County Payment.--For each of fiscal years 2008 through
2011, the Secretary of the Interior shall calculate for each
eligible county that received a 50-percent payment during the
eligibility period an amount equal to the product obtained by
multiplying--
``(1) the 50-percent adjusted share for the eligible
county; by
``(2) the full funding amount for the fiscal year.
``SEC. 102. PAYMENTS TO STATES AND COUNTIES.
``(a) Payment Amounts.--Except as provided in section 103,
the Secretary of the Treasury shall pay to--
``(1) a State or territory of the United States an
amount equal to the sum of the amounts elected under
subsection (b) by each county within the State or
territory for--
``(A) if the county is eligible for the 25-
percent payment, the share of the 25-percent
payment; or
``(B) the share of the State payment of the
eligible county; and
``(2) a county an amount equal to the amount elected
under subsection (b) by each county for--
``(A) if the county is eligible for the 50-
percent payment, the 50-percent payment; or
``(B) the county payment for the eligible
county.
``(b) Election To Receive Payment Amount.--
``(1) Election; submission of results.--
``(A) In general.--The election to receive a
share of the State payment, the county payment,
a share of the State payment and the county
payment, a share of the 25-percent payment, the
50-percent payment, or a share of the 25-
percent payment and the 50-percent payment, as
applicable, shall be made at the discretion of
each affected county by August 1, 2008, and
August 1 of each second fiscal year thereafter,
in accordance with paragraph (2), and
transmitted to the Secretary concerned by the
Governor of each eligible State.
``(B) Failure to transmit.--If an election
for an affected county is not transmitted to
the Secretary concerned by the date specified
under subparagraph (A), the affected county
shall be considered to have elected to receive
a share of the State payment, the county
payment, or a share of the State payment and
the county payment, as applicable.
``(2) Duration of election.--
``(A) In general.--A county election to
receive a share of the 25-percent payment or
50-percent payment, as applicable, shall be
effective for 2 fiscal years.
``(B) Full funding amount.--If a county
elects to receive a share of the State payment
or the county payment, the election shall be
effective for all subsequent fiscal years
through fiscal year 2011.
``(3) Source of payment amounts.--The payment to an
eligible State or eligible county under this section
for a fiscal year shall be derived from--
``(A) any revenues, fees, penalties, or
miscellaneous receipts, exclusive of deposits
to any relevant trust fund, special account, or
permanent operating funds, received by the
Federal Government from activities by the
Bureau of Land Management or the Forest Service
on the applicable Federal land; and
``(B) to the extent of any shortfall, out of
any amounts in the Treasury of the United
States not otherwise appropriated.
``(c) Distribution and Expenditure of Payments.--
``(1) Distribution method.--A State that receives a
payment under subsection (a) for Federal land described
in section 3(7)(A) shall distribute the appropriate
payment amount among the appropriate counties in the
State in accordance with--
``(A) the Act of May 23, 1908 (16 U.S.C.
500); and
``(B) section 13 of the Act of March 1, 1911
(36 Stat. 963; 16 U.S.C. 500).
``(2) Expenditure purposes.--Subject to subsection
(d), payments received by a State under subsection (a)
and distributed to counties in accordance with
paragraph (1) shall be expended as required by the laws
referred to in paragraph (1).
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) Use of portion in same manner as 25-
percent payment or 50-percent payment, as
applicable.--Except as provided in paragraph
(3)(B), if an eligible county elects to receive
its share of the State payment or the county
payment, not less than 80 percent, but not more
than 85 percent, of the funds shall be expended
in the same manner in which the 25-percent
payments or 50-percent payment, as applicable,
are required to be expended.
``(B) Election as to use of balance.--Except
as provided in subparagraph (C), an eligible
county shall elect to do 1 or more of the
following with the balance of any funds not
expended pursuant to subparagraph (A):
``(i) Reserve any portion of the
balance for projects in accordance with
title II.
``(ii) Reserve not more than 7
percent of the total share for the
eligible county of the State payment or
the county payment for projects in
accordance with title III.
``(iii) Return the portion of the
balance not reserved under clauses (i)
and (ii) to the Treasury of the United
States.
``(C) Counties with modest distributions.--In
the case of each eligible county to which more
than $100,000, but less than $350,000, is
distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B)
of subsection (a), the eligible county, with
respect to the balance of any funds not
expended pursuant to subparagraph (A) for that
fiscal year, shall--
``(i) reserve any portion of the
balance for--
``(I) carrying out projects
under title II;
``(II) carrying out projects
under title III; or
``(III) a combination of the
purposes described in
subclauses (I) and (II); or
``(ii) return the portion of the
balance not reserved under clause (i)
to the Treasury of the United States.
``(2) Distribution of funds.--
``(A) In general.--Funds reserved by an
eligible county under subparagraph (B)(i) or
(C)(i) of paragraph (1) for carrying out
projects under title II shall be deposited in a
special account in the Treasury of the United
States.
``(B) Availability.--Amounts deposited under
subparagraph (A) shall--
``(i) be available for expenditure by
the Secretary concerned, without
further appropriation; and
``(ii) remain available until
expended in accordance with title II.
``(3) Election.--
``(A) Notification.--
``(i) In general.--An eligible county
shall notify the Secretary concerned of
an election by the eligible county
under this subsection not later than
September 30 of each fiscal year.
``(ii) Failure to elect.--Except as
provided in subparagraph (B), if the
eligible county fails to make an
election by the date specified in
clause (i), the eligible county shall--
``(I) be considered to have
elected to expend 85 percent of
the funds in accordance with
paragraph (1)(A); and
``(II) return the balance to
the Treasury of the United
States.
``(B) Counties with minor distributions.--In
the case of each eligible county to which less
than $100,000 is distributed for any fiscal
year pursuant to either or both of paragraphs
(1)(B) and (2)(B) of subsection (a), the
eligible county may elect to expend all the
funds in the same manner in which the 25-
percent payments or 50-percent payments, as
applicable, are required to be expended.
``(e) Time for Payment.--The payments required under this
section for a fiscal year shall be made as soon as practicable
after the end of that fiscal year.
``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA, OREGON,
AND WASHINGTON.
``(a) Definitions.--In this section:
``(1) Adjusted amount.--The term `adjusted amount'
means, with respect to a covered State--
``(A) for fiscal year 2008, 90 percent of--
``(i) the sum of the amounts paid for
fiscal year 2006 under section
102(a)(2) (as in effect on September
29, 2006) for the eligible counties in
the covered State that have elected
under section 102(b) to receive a share
of the State payment for fiscal year
2008; and
``(ii) the sum of the amounts paid
for fiscal year 2006 under section
103(a)(2) (as in effect on September
29, 2006) for the eligible counties in
the State of Oregon that have elected
under section 102(b) to receive the
county payment for fiscal year 2008;
``(B) for fiscal year 2009, 76 percent of--
``(i) the sum of the amounts paid for
fiscal year 2006 under section
102(a)(2) (as in effect on September
29, 2006) for the eligible counties in
the covered State that have elected
under section 102(b) to receive a share
of the State payment for fiscal year
2009; and
``(ii) the sum of the amounts paid
for fiscal year 2006 under section
103(a)(2) (as in effect on September
29, 2006) for the eligible counties in
the State of Oregon that have elected
under section 102(b) to receive the
county payment for fiscal year 2009;
and
``(C) for fiscal year 2010, 65 percent of--
``(i) the sum of the amounts paid for
fiscal year 2006 under section
102(a)(2) (as in effect on September
29, 2006) for the eligible counties in
the covered State that have elected
under section 102(b) to receive a share
of the State payment for fiscal year
2010; and
``(ii) the sum of the amounts paid
for fiscal year 2006 under section
103(a)(2) (as in effect on September
29, 2006) for the eligible counties in
the State of Oregon that have elected
under section 102(b) to receive the
county payment for fiscal year 2010.
``(2) Covered state.--The term `covered State' means
each of the States of California, Oregon, and
Washington.
``(b) Transition Payments.--For each of fiscal years 2008
through 2010, in lieu of the payment amounts that otherwise
would have been made under paragraphs (1)(B) and (2)(B) of
section 102(a), the Secretary of the Treasury shall pay the
adjusted amount to each covered State and the eligible counties
within the covered State, as applicable.
``(c) Distribution of Adjusted Amount in Oregon and
Washington.--It is the intent of Congress that the method of
distributing the payments under subsection (b) among the
counties in the States of Oregon and Washington for each of
fiscal years 2008 through 2010 be in the same proportion that
the payments were distributed to the eligible counties in
fiscal year 2006.
``(d) Distribution of Payments in California.--The following
payments shall be distributed among the eligible counties in
the State of California in the same proportion that payments
under section 102(a)(2) (as in effect on September 29, 2006)
were distributed to the eligible counties for fiscal year 2006:
``(1) Payments to the State of California under
subsection (b).
``(2) The shares of the eligible counties of the
State payment for California under section 102 for
fiscal year 2011.
``(e) Treatment of Payments.--For purposes of this Act, any
payment made under subsection (b) shall be considered to be a
payment made under section 102(a).
``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND
``SEC. 201. DEFINITIONS.
``In this title:
``(1) Participating county.--The term `participating
county' means an eligible county that elects under
section 102(d) to expend a portion of the Federal funds
received under section 102 in accordance with this
title.
``(2) Project funds.--The term `project funds' means
all funds an eligible county elects under section
102(d) to reserve for expenditure in accordance with
this title.
``(3) Resource advisory committee.--The term
`resource advisory committee' means--
``(A) an advisory committee established by
the Secretary concerned under section 205; or
``(B) an advisory committee determined by the
Secretary concerned to meet the requirements of
section 205.
``(4) Resource management plan.--The term `resource
management plan' means--
``(A) a land use plan prepared by the Bureau
of Land Management for units of the Federal
land described in section 3(7)(B) pursuant to
section 202 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1712); or
``(B) a land and resource management plan
prepared by the Forest Service for units of the
National Forest System pursuant to section 6 of
the Forest and Rangeland Renewable Resources
Planning Act of 1974l (16 U.S.C. 1604).
``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.
``(a) Limitation.--Project funds shall be expended solely on
projects that meet the requirements of this title.
``(b) Authorized Uses.--Project funds may be used by the
Secretary concerned for the purpose of entering into and
implementing cooperative agreements with willing Federal
agencies, State and local governments, private and nonprofit
entities, and landowners for protection, restoration, and
enhancement of fish and wildlife habitat, and other resource
objectives consistent with the purposes of this Act on Federal
land and on non-Federal land where projects would benefit the
resources on Federal land.
``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.
``(a) Submission of Project Proposals to Secretary
Concerned.--
``(1) Projects funded using project funds.--Not later
than September 30 for fiscal year 2008, and each
September 30 thereafter for each succeeding fiscal year
through fiscal year 2011, each resource advisory
committee shall submit to the Secretary concerned a
description of any projects that the resource advisory
committee proposes the Secretary undertake using any
project funds reserved by eligible counties in the area
in which the resource advisory committee has geographic
jurisdiction.
``(2) Projects funded using other funds.--A resource
advisory committee may submit to the Secretary
concerned a description of any projects that the
committee proposes the Secretary undertake using funds
from State or local governments, or from the private
sector, other than project funds and funds appropriated
and otherwise available to do similar work.
``(3) Joint projects.--Participating counties or
other persons may propose to pool project funds or
other funds, described in paragraph (2), and jointly
propose a project or group of projects to a resource
advisory committee established under section 205.
``(b) Required Description of Projects.--In submitting
proposed projects to the Secretary concerned under subsection
(a), a resource advisory committee shall include in the
description of each proposed project the following information:
``(1) The purpose of the project and a description of
how the project will meet the purposes of this title.
``(2) The anticipated duration of the project.
``(3) The anticipated cost of the project.
``(4) The proposed source of funding for the project,
whether project funds or other funds.
``(5)(A) Expected outcomes, including how the project
will meet or exceed desired ecological conditions,
maintenance objectives, or stewardship objectives.
``(B) An estimate of the amount of any timber,
forage, and other commodities and other economic
activity, including jobs generated, if any, anticipated
as part of the project.
``(6) A detailed monitoring plan, including funding
needs and sources, that--
``(A) tracks and identifies the positive or
negative impacts of the project,
implementation, and provides for validation
monitoring; and
``(B) includes an assessment of the
following:
``(i) Whether or not the project met
or exceeded desired ecological
conditions; created local employment or
training opportunities, including
summer youth jobs programs such as the
Youth Conservation Corps where
appropriate.
``(ii) Whether the project improved
the use of, or added value to, any
products removed from land consistent
with the purposes of this title.
``(7) An assessment that the project is to be in the
public interest.
``(c) Authorized Projects.--Projects proposed under
subsection (a) shall be consistent with section 2.
``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.
``(a) Conditions for Approval of Proposed Project.--The
Secretary concerned may make a decision to approve a project
submitted by a resource advisory committee under section 203
only if the proposed project satisfies each of the following
conditions:
``(1) The project complies with all applicable
Federal laws (including regulations).
``(2) The project is consistent with the applicable
resource management plan and with any watershed or
subsequent plan developed pursuant to the resource
management plan and approved by the Secretary
concerned.
``(3) The project has been approved by the resource
advisory committee in accordance with section 205,
including the procedures issued under subsection (e) of
that section.
``(4) A project description has been submitted by the
resource advisory committee to the Secretary concerned
in accordance with section 203.
``(5) The project will improve the maintenance of
existing infrastructure, implement stewardship
objectives that enhance forest ecosystems, and restore
and improve land health and water quality.
``(b) Environmental Reviews.--
``(1) Request for payment by county.--The Secretary
concerned may request the resource advisory committee
submitting a proposed project to agree to the use of
project funds to pay for any environmental review,
consultation, or compliance with applicable
environmental laws required in connection with the
project.
``(2) Conduct of environmental review.--If a payment
is requested under paragraph (1) and the resource
advisory committee agrees to the expenditure of funds
for this purpose, the Secretary concerned shall conduct
environmental review, consultation, or other compliance
responsibilities in accordance with Federal laws
(including regulations).
``(3) Effect of refusal to pay.--
``(A) In general.--If a resource advisory
committee does not agree to the expenditure of
funds under paragraph (1), the project shall be
deemed withdrawn from further consideration by
the Secretary concerned pursuant to this title.
``(B) Effect of withdrawal.--A withdrawal
under subparagraph (A) shall be deemed to be a
rejection of the project for purposes of
section 207(c).
``(c) Decisions of Secretary Concerned.--
``(1) Rejection of projects.--
``(A) In general.--A decision by the
Secretary concerned to reject a proposed
project shall be at the sole discretion of the
Secretary concerned.
``(B) No administrative appeal or judicial
review.--Notwithstanding any other provision of
law, a decision by the Secretary concerned to
reject a proposed project shall not be subject
to administrative appeal or judicial review.
``(C) Notice of rejection.--Not later than 30
days after the date on which the Secretary
concerned makes the rejection decision, the
Secretary concerned shall notify in writing the
resource advisory committee that submitted the
proposed project of the rejection and the
reasons for rejection.
``(2) Notice of project approval.--The Secretary
concerned shall publish in the Federal Register notice
of each project approved under subsection (a) if the
notice would be required had the project originated
with the Secretary.
``(d) Source and Conduct of Project.--Once the Secretary
concerned accepts a project for review under section 203, the
acceptance shall be deemed a Federal action for all purposes.
``(e) Implementation of Approved Projects.--
``(1) Cooperation.--Notwithstanding chapter 63 of
title 31, United States Code, using project funds the
Secretary concerned may enter into contracts, grants,
and cooperative agreements with States and local
governments, private and nonprofit entities, and
landowners and other persons to assist the Secretary in
carrying out an approved project.
``(2) Best value contracting.--
``(A) In general.--For any project involving
a contract authorized by paragraph (1) the
Secretary concerned may elect a source for
performance of the contract on a best value
basis.
``(B) Factors.--The Secretary concerned shall
determine best value based on such factors as--
``(i) the technical demands and
complexity of the work to be done;
``(ii)(I) the ecological objectives
of the project; and
``(II) the sensitivity of the
resources being treated;
``(iii) the past experience by the
contractor with the type of work being
done, using the type of equipment
proposed for the project, and meeting
or exceeding desired ecological
conditions; and
``(iv) the commitment of the
contractor to hiring highly qualified
workers and local residents.
``(3) Merchantable timber contracting pilot
program.--
``(A) Establishment.--The Secretary concerned
shall establish a pilot program to implement a
certain percentage of approved projects
involving the sale of merchantable timber using
separate contracts for--
``(i) the harvesting or collection of
merchantable timber; and
``(ii) the sale of the timber.
``(B) Annual percentages.--Under the pilot
program, the Secretary concerned shall ensure
that, on a nationwide basis, not less than the
following percentage of all approved projects
involving the sale of merchantable timber are
implemented using separate contracts:
``(i) For fiscal year 2008, 35
percent.
``(ii) For fiscal year 2009, 45
percent.
``(iii) For each of fiscal years 2010
and 2011, 50 percent.
``(C) Inclusion in pilot program.--The
decision whether to use separate contracts to
implement a project involving the sale of
merchantable timber shall be made by the
Secretary concerned after the approval of the
project under this title.
``(D) Assistance.--
``(i) In general.--The Secretary
concerned may use funds from any
appropriated account available to the
Secretary for the Federal land to
assist in the administration of
projects conducted under the pilot
program.
``(ii) Maximum amount of
assistance.--The total amount obligated
under this subparagraph may not exceed
$1,000,000 for any fiscal year during
which the pilot program is in effect.
``(E) Review and report.--
``(i) Initial report.--Not later than
September 30, 2010, the Comptroller
General shall submit to the Committees
on Agriculture, Nutrition, and Forestry
and Energy and Natural Resources of the
Senate and the Committees on
Agriculture and Natural Resources of
the House of Representatives a report
assessing the pilot program.
``(ii) Annual report.--The Secretary
concerned shall submit to the
Committees on Agriculture, Nutrition,
and Forestry and Energy and Natural
Resources of the Senate and the
Committees on Agriculture and Natural
Resources of the House of
Representatives an annual report
describing the results of the pilot
program.
``(f) Requirements for Project Funds.--The Secretary shall
ensure that at least 50 percent of all project funds be used
for projects that are primarily dedicated--
``(1) to road maintenance, decommissioning, or
obliteration; or
``(2) to restoration of streams and watersheds.
``SEC. 205. RESOURCE ADVISORY COMMITTEES.
``(a) Establishment and Purpose of Resource Advisory
Committees.--
``(1) Establishment.--The Secretary concerned shall
establish and maintain resource advisory committees to
perform the duties in subsection (b), except as
provided in paragraph (4).
``(2) Purpose.--The purpose of a resource advisory
committee shall be--
``(A) to improve collaborative relationships;
and
``(B) to provide advice and recommendations
to the land management agencies consistent with
the purposes of this title.
``(3) Access to resource advisory committees.--To
ensure that each unit of Federal land has access to a
resource advisory committee, and that there is
sufficient interest in participation on a committee to
ensure that membership can be balanced in terms of the
points of view represented and the functions to be
performed, the Secretary concerned may, establish
resource advisory committees for part of, or 1 or more,
units of Federal land.
``(4) Existing advisory committees.--
``(A) In general.--An advisory committee that
meets the requirements of this section, a
resource advisory committee established before
September 29, 2006, or an advisory committee
determined by the Secretary concerned before
September 29, 2006, to meet the requirements of
this section may be deemed by the Secretary
concerned to be a resource advisory committee
for the purposes of this title.
``(B) Charter.--A charter for a committee
described in subparagraph (A) that was filed on
or before September 29, 2006, shall be
considered to be filed for purposes of this
Act.
``(C) Bureau of land management advisory
committees.--The Secretary of the Interior may
deem a resource advisory committee meeting the
requirements of subpart 1784 of part 1780 of
title 43, Code of Federal Regulations, as a
resource advisory committee for the purposes of
this title.
``(b) Duties.--A resource advisory committee shall--
``(1) review projects proposed under this title by
participating counties and other persons;
``(2) propose projects and funding to the Secretary
concerned under section 203;
``(3) provide early and continuous coordination with
appropriate land management agency officials in
recommending projects consistent with purposes of this
Act under this title;
``(4) provide frequent opportunities for citizens,
organizations, tribes, land management agencies, and
other interested parties to participate openly and
meaningfully, beginning at the early stages of the
project development process under this title;
``(5)(A) monitor projects that have been approved
under section 204; and
``(B) advise the designated Federal official on the
progress of the monitoring efforts under subparagraph
(A); and
``(6) make recommendations to the Secretary concerned
for any appropriate changes or adjustments to the
projects being monitored by the resource advisory
committee.
``(c) Appointment by the Secretary.--
``(1) Appointment and term.--
``(A) In general.--The Secretary concerned,
shall appoint the members of resource advisory
committees for a term of 4 years beginning on
the date of appointment.
``(B) Reappointment.--The Secretary concerned
may reappoint members to subsequent 4-year
terms.
``(2) Basic requirements.--The Secretary concerned
shall ensure that each resource advisory committee
established meets the requirements of subsection (d).
``(3) Initial appointment.--Not later than 180 days
after the date of the enactment of this Act, the
Secretary concerned shall make initial appointments to
the resource advisory committees.
``(4) Vacancies.--The Secretary concerned shall make
appointments to fill vacancies on any resource advisory
committee as soon as practicable after the vacancy has
occurred.
``(5) Compensation.--Members of the resource advisory
committees shall not receive any compensation.
``(d) Composition of Advisory Committee.--
``(1) Number.--Each resource advisory committee shall
be comprised of 15 members.
``(2) Community interests represented.--Committee
members shall be representative of the interests of the
following 3 categories:
``(A) 5 persons that--
``(i) represent organized labor or
non-timber forest product harvester
groups;
``(ii) represent developed outdoor
recreation, off highway vehicle users,
or commercial recreation activities;
``(iii) represent--
``(I) energy and mineral
development interests; or
``(II) commercial or
recreational fishing interests;
``(iv) represent the commercial
timber industry; or
``(v) hold Federal grazing or other
land use permits, or represent
nonindustrial private forest land
owners, within the area for which the
committee is organized.
``(B) 5 persons that represent--
``(i) nationally recognized
environmental organizations;
``(ii) regionally or locally
recognized environmental organizations;
``(iii) dispersed recreational
activities;
``(iv) archaeological and historical
interests; or
``(v) nationally or regionally
recognized wild horse and burro
interest groups, wildlife or hunting
organizations, or watershed
associations.
``(C) 5 persons that--
``(i) hold State elected office (or a
designee);
``(ii) hold county or local elected
office;
``(iii) represent American Indian
tribes within or adjacent to the area
for which the committee is organized;
``(iv) are school officials or
teachers; or
``(v) represent the affected public
at large.
``(3) Balanced representation.--In appointing
committee members from the 3 categories in paragraph
(2), the Secretary concerned shall provide for balanced
and broad representation from within each category.
``(4) Geographic distribution.--The members of a
resource advisory committee shall reside within the
State in which the committee has jurisdiction and, to
extent practicable, the Secretary concerned shall
ensure local representation in each category in
paragraph (2).
``(5) Chairperson.--A majority on each resource
advisory committee shall select the chairperson of the
committee.
``(e) Approval Procedures.--
``(1) In general.--Subject to paragraph (3), each
resource advisory committee shall establish procedures
for proposing projects to the Secretary concerned under
this title.
``(2) Quorum.--A quorum must be present to constitute
an official meeting of the committee.
``(3) Approval by majority of members.--A project may
be proposed by a resource advisory committee to the
Secretary concerned under section 203(a), if the
project has been approved by a majority of members of
the committee from each of the 3 categories in
subsection (d)(2).
``(f) Other Committee Authorities and Requirements.--
``(1) Staff assistance.--A resource advisory
committee may submit to the Secretary concerned a
request for periodic staff assistance from Federal
employees under the jurisdiction of the Secretary.
``(2) Meetings.--All meetings of a resource advisory
committee shall be announced at least 1 week in advance
in a local newspaper of record and shall be open to the
public.
``(3) Records.--A resource advisory committee shall
maintain records of the meetings of the committee and
make the records available for public inspection.
``SEC. 206. USE OF PROJECT FUNDS.
``(a) Agreement Regarding Schedule and Cost of Project.--
``(1) Agreement between parties.--The Secretary
concerned may carry out a project submitted by a
resource advisory committee under section 203(a) using
project funds or other funds described in section
203(a)(2), if, as soon as practicable after the
issuance of a decision document for the project and the
exhaustion of all administrative appeals and judicial
review of the project decision, the Secretary concerned
and the resource advisory committee enter into an
agreement addressing, at a minimum, the following:
``(A) The schedule for completing the
project.
``(B) The total cost of the project,
including the level of agency overhead to be
assessed against the project.
``(C) For a multiyear project, the estimated
cost of the project for each of the fiscal
years in which it will be carried out.
``(D) The remedies for failure of the
Secretary concerned to comply with the terms of
the agreement consistent with current Federal
law.
``(2) Limited use of federal funds.--The Secretary
concerned may decide, at the sole discretion of the
Secretary concerned, to cover the costs of a portion of
an approved project using Federal funds appropriated or
otherwise available to the Secretary for the same
purposes as the project.
``(b) Transfer of Project Funds.--
``(1) Initial transfer required.--As soon as
practicable after the agreement is reached under
subsection (a) with regard to a project to be funded in
whole or in part using project funds, or other funds
described in section 203(a)(2), the Secretary concerned
shall transfer to the applicable unit of National
Forest System land or Bureau of Land Management
District an amount of project funds equal to--
``(A) in the case of a project to be
completed in a single fiscal year, the total
amount specified in the agreement to be paid
using project funds, or other funds described
in section 203(a)(2); or
``(B) in the case of a multiyear project, the
amount specified in the agreement to be paid
using project funds, or other funds described
in section 203(a)(2) for the first fiscal year.
``(2) Condition on project commencement.--The unit of
National Forest System land or Bureau of Land
Management District concerned, shall not commence a
project until the project funds, or other funds
described in section 203(a)(2) required to be
transferred under paragraph (1) for the project, have
been made available by the Secretary concerned.
``(3) Subsequent transfers for multiyear projects.--
``(A) In general.--For the second and
subsequent fiscal years of a multiyear project
to be funded in whole or in part using project
funds, the unit of National Forest System land
or Bureau of Land Management District concerned
shall use the amount of project funds required
to continue the project in that fiscal year
according to the agreement entered into under
subsection (a).
``(B) Suspension of work.--The Secretary
concerned shall suspend work on the project if
the project funds required by the agreement in
the second and subsequent fiscal years are not
available.
``SEC. 207. AVAILABILITY OF PROJECT FUNDS.
``(a) Submission of Proposed Projects to Obligate Funds.--By
September 30 of each fiscal year through fiscal year 2011, a
resource advisory committee shall submit to the Secretary
concerned pursuant to section 203(a)(1) a sufficient number of
project proposals that, if approved, would result in the
obligation of at least the full amount of the project funds
reserved by the participating county in the preceding fiscal
year.
``(b) Use or Transfer of Unobligated Funds.--Subject to
section 208, if a resource advisory committee fails to comply
with subsection (a) for a fiscal year, any project funds
reserved by the participating county in the preceding fiscal
year and remaining unobligated shall be available for use as
part of the project submissions in the next fiscal year.
``(c) Effect of Rejection of Projects.--Subject to section
208, any project funds reserved by a participating county in
the preceding fiscal year that are unobligated at the end of a
fiscal year because the Secretary concerned has rejected one or
more proposed projects shall be available for use as part of
the project submissions in the next fiscal year.
``(d) Effect of Court Orders.--
``(1) In general.--If an approved project under this
Act is enjoined or prohibited by a Federal court, the
Secretary concerned shall return the unobligated
project funds related to the project to the
participating county or counties that reserved the
funds.
``(2) Expenditure of funds.--The returned funds shall
be available for the county to expend in the same
manner as the funds reserved by the county under
subparagraph (B) or (C)(i) of section 102(d)(1).
``SEC. 208. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title shall terminate on September 30, 2011.
``(b) Deposits in Treasury.--Any project funds not obligated
by September 30, 2012, shall be deposited in the Treasury of
the United States.
``TITLE III--COUNTY FUNDS
``SEC. 301. DEFINITIONS.
``In this title:
``(1) County funds.--The term `county funds' means
all funds an eligible county elects under section
102(d) to reserve for expenditure in accordance with
this title.
``(2) Participating county.--The term `participating
county' means an eligible county that elects under
section 102(d) to expend a portion of the Federal funds
received under section 102 in accordance with this
title.
``SEC. 302. USE.
``(a) Authorized Uses.--A participating county, including any
applicable agencies of the participating county, shall use
county funds, in accordance with this title, only--
``(1) to carry out activities under the Firewise
Communities program to provide to homeowners in fire-
sensitive ecosystems education on, and assistance with
implementing, techniques in home siting, home
construction, and home landscaping that can increase
the protection of people and property from wildfires;
``(2) to reimburse the participating county for
search and rescue and other emergency services,
including firefighting, that are--
``(A) performed on Federal land after the
date on which the use was approved under
subsection (b);
``(B) paid for by the participating county;
and
``(3) to develop community wildfire protection plans
in coordination with the appropriate Secretary
concerned.
``(b) Proposals.--A participating county shall use county
funds for a use described in subsection (a) only after a 45-day
public comment period, at the beginning of which the
participating county shall--
``(1) publish in any publications of local record a
proposal that describes the proposed use of the county
funds; and
``(2) submit the proposal to any resource advisory
committee established under section 205 for the
participating county.
``SEC. 303. CERTIFICATION.
``(a) In General.--Not later than February 1 of the year
after the year in which any county funds were expended by a
participating county, the appropriate official of the
participating county shall submit to the Secretary concerned a
certification that the county funds expended in the applicable
year have been used for the uses authorized under section
302(a), including a description of the amounts expended and the
uses for which the amounts were expended.
``(b) Review.--The Secretary concerned shall review the
certifications submitted under subsection (a) as the Secretary
concerned determines to be appropriate.
``SEC. 304. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title terminates on September 30, 2011.
``(b) Availability.--Any county funds not obligated by
September 30, 2012, shall be returned to the Treasury of the
United States.
``TITLE IV--MISCELLANEOUS PROVISIONS
``SEC. 401. REGULATIONS.
``The Secretary of Agriculture and the Secretary of the
Interior shall issue regulations to carry out the purposes of
this Act.
``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this Act for each of fiscal years 2008
through 2011.
``SEC. 403. TREATMENT OF FUNDS AND REVENUES.
``(a) Relation to Other Appropriations.--Funds made available
under section 402 and funds made available to a Secretary
concerned under section 206 shall be in addition to any other
annual appropriations for the Forest Service and the Bureau of
Land Management.
``(b) Deposit of Revenues and Other Funds.--All revenues
generated from projects pursuant to title II, including any
interest accrued from the revenues, shall be deposited in the
Treasury of the United States.''.
(b) Forest Receipt Payments to Eligible States and
Counties.--
(1) Act of may 23, 1908.--The sixth paragraph under
the heading ``FOREST SERVICE'' in the Act of May 23,
1908 (16 U.S.C. 500) is amended in the first sentence
by striking ``twenty-five percentum'' and all that
follows through ``shall be paid'' and inserting the
following: ``an amount equal to the annual average of
25 percent of all amounts received for the applicable
fiscal year and each of the preceding 6 fiscal years
from each national forest shall be paid''.
(2) Weeks law.--Section 13 of the Act of March 1,
1911 (commonly known as the ``Weeks Law'') (16 U.S.C.
500) is amended in the first sentence by striking
``twenty-five percentum'' and all that follows through
``shall be paid'' and inserting the following: ``an
amount equal to the annual average of 25 percent of all
amounts received for the applicable fiscal year and
each of the preceding 6 fiscal years from each national
forest shall be paid''.
(c) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United
States Code, is amended to read as follows:
``Sec. 6906. Funding
``For fiscal year 2009--
``(1) each county or other eligible unit of local
government shall be entitled to payment under this
chapter; and
``(2) sums shall be made available to the Secretary
of the Interior for obligation or expenditure in
accordance with this chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended
by striking the item relating to section 6906 and
inserting the following:
``6906. Funding.''.
(3) Budget scorekeeping.--
(A) In general.--Notwithstanding the Budget
Scorekeeping Guidelines and the accompanying
list of programs and accounts set forth in the
joint explanatory statement of the committee of
conference accompanying Conference Report 105-
217, the amendment made by paragraph (1) shall
be treated in the baseline for purposes of
section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
907) (as in effect before September 30, 2002),
by the Chairpersons of the Committee on the
Budget of the House of Representatives and the
Committee on the Budget of the Senate, as
appropriate, for purposes of budget enforcement
in the House of Representatives and the Senate,
and under the Congressional Budget Act of 1974
(2 U.S.C. 601 et seq.) as if Payment in Lieu of
Taxes (14-1114-0-1-806) were an account
designated as Appropriated Entitlements and
Mandatories for Fiscal Year 1997 in the joint
explanatory statement of the committee of
conference accompanying Conference Report 105-
217.
(B) Effective date.--This paragraph shall--
(i) be effective beginning on the
date of enactment of this Act; and
(ii) remain in effect for any fiscal
year for which the entitlement in
section 6906 of title 31, United States
Code (as amended by paragraph (1)),
applies.
In lieu of the matter proposed to be inserted for the title
of the bill, H.R. 6, insert the following: ``An Act to move the
United States toward greater energy independence and security,
to increase the production of clean renewable fuels, to protect
consumers, to increase the efficiency of products, buildings,
and vehicles, to promote research on and deploy greenhouse gas
capture and storage options, and to improve the energy
performance of the Federal Government, and for other
purposes.''.