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# Legislative Bulletin........................................................August 3, 2007

**Contents:**

**H.R. 3221**---New Direction for Energy Independence, National
Security, and Consumer Protection Act

H.R. 3221---New Direction for Energy Independence, National Security,
and Consumer Protection Act (*Pelosi, D-CA*)

**[Order of Business]{.underline}**: The bill is reportedly scheduled to
be considered on Friday, August 3^rd^, subject to a likely structured
rule, making in order just a small handful of amendments and merging the
bill with a related energy tax bill (H.R. 2776). The RSC will summarize
any amendments made in order under the rule in a separate document.

**[Possible Conservative Concerns]{.underline}**: Many conservatives
will likely be concerned about numerous provisions throughout this
legislation. Some such provisions include:

> \--The use of an energy bill to create a variety of new anti-poverty
> programs. (See the Title I summary below.)
>
> \--The presumption that global climate change is unanimously viewed as
> inherently dangerous, and other alarmist views on global warming. (See
> the Title II and Title VI summaries below.)
>
> \--The authorization of \$1 billion for clean and energy efficient
> technologies [in other countries]{.underline}. (See the Title II
> summary below.)
>
> \--The creation of a government-run venture capital program, something
> which has thus far been synonymous with market capitalism. (See the
> Title III summary below.)
>
> \--The creation of a new agency---and accompanying multibillion-dollar
> fund in the U.S. Treasury---to support the development of energy
> technologies (much of which the federal government is already doing).
> (See the Title IV summary below.)
>
> \--The creation of dozens of new, often duplicative programs in the
> Science title (See the Title IV summary below.)
>
> \--The building and procurement standards for federal agencies, which
> are likely to yield difficulties and increased costs for such
> agencies, at the expense of taxpayers. (See the Title VI summary
> below.)
>
> \--**The allowing of individuals to sue the federal government for
> damages caused by global warming.** (See the Title VI summary below.)
>
> \--The extension of the deadline for processing oil and gas drilling
> permits. (See the Title VII summary below.)
>
> \--The elimination of the requirement that the government pay interest
> to oil and gas lessees when they make royalty overpayments (even
> though the lessees would still owe interest on underpayments). (See
> the Title VII summary below.)
>
> \--The slowing of the oil shale and tar sands commercial leasing
> program, further reducing our ability to be energy self-sufficient.
> (See the Title VII summary below.)
>
> \--The forced renegotiation of certain oil and gas leases from
> 1998/1999. (See the Title VII summary below.)
>
> \--The prohibition on accessing the 4.2 trillion cubic feet of natural
> gas in the Roan Plateau, Colorado. (See the Title VII summary below.)
>
> \--\$2.7 billion for transportation systems and freight rail track
> improvements, with Davis-Bacon applying. (See the Title VIII summary
> below.)
>
> \--The increased mandates on home appliances. (See the Title IX
> summary below.)
>
> \--The requirement that states adhere to a federal building energy
> code. (See the Title IX summary below.)
>
> \--\$3.1 billion in new authorizations for the Weatherization
> Assistance Program. (See the Title IX summary below.)
>
> \--\$7.9 billion for an initiative to help make all commercial
> buildings net-zero-energy by 2050. (See the Title IX summary below.)
>
> \--Nearly \$3 billion in energy efficiency block grants to states and
> localities. (See the Title IX summary below.)
>
> \--The overall approach throughout the bill of creating new federal
> programs, offices, and billions of dollars in newly authorized funding
> streams, with minimal reliance on market forces.
>
> \--The additional overall approach of mandating energy standards---on
> the private and public sectors---irrespective of the feasibility of
> such standards; and with deadlines designed more to be years divisible
> by five, rather than to be substantive, realistic target dates.
>
> \--The picking of winners and losers in the energy marketplace (since
> not all energy sources are funded equally, and other energy sources
> are discouraged).

**[Summary]{.underline}**: H.R. 3221 would grow the size of the federal
government in order to fund energy programs and activities and enforce
mandatory standards in the private sector and across all levels of
government. The following are summary highlights by title:

***[Title I---Green Jobs]{.underline}***

**[NOTE]{.underline}: The language of Title I is pulled from H.R. 2847
(Education and Labor Committee).**

-   Directs the Secretary of Labor to establish an energy efficient and
    renewable energy worker training program, in consultation with the
    Secretary of Energy.

-   Establishes a national research program, through the Bureau of Labor
    Statistics, to develop labor market data and track future "green
    collar" workforce trends.

-   Establishes competitive National Energy Training Partnership Grants
    for eligible entities to carry out training that leads to [economic
    self sufficiency]{.underline} (note: this is an anti-poverty
    component of the program) and develops an energy efficiency and
    renewable energy industries workforce. *It is possible that such
    grants could help free up funds for liberal political and advocacy
    activities in which certain anti-poverty groups, like ACORN,
    engage.*

-   Establishes a State Energy Training Partnership Program for grants
    to states to administer renewable energy and energy efficiency
    workforce development programs (also with an economic
    self-sufficiency, anti-poverty component). A partnership would have
    to include equal participation of industry and labor.

-   Establishes the Pathways Out of Poverty Demonstration Program grants
    that enable eligible entities to carry out training that leads to
    economic self-sufficiency for targeted impoverished families.

-   Defines allowable activities under the above new grant programs as
    including: occupational training; on-the-job training; safety and
    health training; basic skills, literacy, GED, ESL, and job readiness
    training; training leading to community college or
    industry-recognized certificate training; internships; customized
    training; career ladder training; transitional jobs strategies; and
    supportive services.

-   Applies the Workforce Investment Act of 1998 worker protection and
    nondiscrimination provisions to the new grant programs carried out
    under the subsection, and provides for consultation with labor
    organizations representing affected workers.

-   Authorizes \$125.0 million per year indefinitely for the grant
    programs.

-   **[Cost]{.underline}: CBO confirms that this title would authorize
    \$125.0 million in FY2008 and a total of \$625.0 million over the
    FY2008-FY2012 period.**

***[Title II---International Climate Cooperation Reengagement
Act]{.underline}***

**[NOTE]{.underline}: The language of Title II is pulled from H.R. 2420
(Foreign Affairs Committee).**

-   This title would express 15 findings, including the following:

> \--"There is a global scientific consensus, as established by the
> Intergovernmental Panel on Climate Change (IPCC) and confirmed by the
> National Academy of Sciences, that the continued build-up of
> anthropogenic greenhouse gases in the atmosphere has been, and is now
> warming the earth and threatens the stability of the global climate.
> By the estimate of the IPCC, unmitigated global greenhouse gas
> emissions could drive up global temperatures by as much as 7 to 11
> degrees Fahrenheit by 2100;
>
> \--"Climate change is already having significant impacts in certain
> regions of the world and on many ecosystems, with poor populations
> being most vulnerable; and
>
> \--"Climate change is a global problem that can only be managed by a
> coordinated global response that reduces global emissions of
> greenhouse gases to a level that stabilizes their concentration in the
> Earth's atmosphere."

-   The title would then make six statements of policy, mostly regarding
    U.S. participation in international global climate change
    proceedings, plus: "To seek international consensus on long-term
    objectives including a target range for stabilizing greenhouse gas
    concentrations. The target range should reflect the consensus
    recommendations of Intergovernmental Panel on Climate Change (IPCC)
    scientists, who believe that concentrations of greenhouse gases in
    the Earth's atmosphere must be stabilized at a level that would
    provide a reasonable chance of limiting the rise in global
    temperatures to a level that might avert the most dangerous impacts
    of climate change."

-   Establishes within the State Department an Office on Global Climate
    Change, headed by an Ambassador-at-Large for Global Climate Change,
    appointed by the President, and subject to Senate approval. The
    Ambassador would advance U.S. goals on reducing the emissions of
    global greenhouse gases and "addressing the challenges posed by
    global climate change." The Ambassador would be the principle
    advisor to the President on global climate change and the
    President's liaison to international organizations and conferences
    on this issue.

-   Authorizes \$1 billion over five years for the Administrator of the
    United States Agency for International Development to support
    policies and programs [in other (developing) countries]{.underline}
    that promote clean and efficient energy technologies.

-   Instructs the Secretary of Commerce to direct the United States and
    Foreign Commercial Service to expand or create a group of the
    Foreign Commercial Service officers to promote United States exports
    in clean and efficient energy technologies and build the capacity of
    government officials, particularly in India and China, to become
    more familiar with the available technologies.

-   Authorizes "such sums" over five years for the Secretary of Commerce
    to direct the International Trade Administration to expand or create
    trade missions to and from the United States that would encourage
    private sector trade and investment in clean and efficient energy
    technologies.

-   Authorizes \$15 million over five years for the Secretary of State
    to establish a Global Climate Change Exchange Program to strengthen
    research, educational exchange, and international cooperation that
    would aim to reduce global greenhouse gas emissions and address "the
    challenges posed by global climate change."

-   Authorizes \$25 million over five years to provide assistance to the
    Interagency Working Group to support the Clean Energy Technology
    Exports Initiative.

-   Authorizes \$100 million over five years to establish in the
    Executive Branch an International Clean Energy Foundation that would
    focus on reducing global greenhouse gas emissions by promoting
    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 and by leveraging resources through partnerships with
    foreign governments the private sector domestically and
    internationally. The CEO of the Foundation would have to be
    confirmed by the Senate. The Foundation would be expected to raise
    funds from numerous foreign sources, including foreign governments.

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-   **[Cost]{.underline}: CBO confirms that this title would authorize
    \$230.0 million in FY2008 and a total of \$1.15 billion over the
    FY2008-FY2012 period.**

***[Title III---Small Energy Efficient Businesses]{.underline}***

**[NOTE]{.underline}: The language of Title III is pulled from H.R. 2389
(Small Business Committee).**

-   Increases the loan limits and loan guarantee limits for certain
    existing small business loan programs at the Small Business
    Administration (SBA).

-   Authorizes a new grant program for Small Business Development
    Centers to carry out small business sustainability initiatives (such
    as implementing energy efficiency projects and resources,
    commercializing clean technology, and improving environmental
    performance). No single grant could exceed \$300,000.

-   Directs SBA to develop and coordinate a government-wide program,
    building on the Energy Star for Small Business program, to assist
    small businesses in becoming more energy efficient, understanding
    the cost savings from improved energy efficiency, and identifying
    financing options for energy efficiency upgrades.

-   Directs SBA to establish a Renewable Fuel Capital Investment Program
    to:

> \--"promote the research, development, manufacture, and bringing to
> market of renewable energy sources by encouraging venture capital
> investments in smaller enterprises primarily engaged in such
> activities; and
>
> \--"establish a venture capital program, with the mission of
> addressing the unmet equity investment needs of small enterprises
> engaged in researching, developing, manufacturing, and bringing to
> market renewable energy sources."
>
> SBA could make \$15 million in operational assistance grants under
> this program each year.

-   **[Cost]{.underline}: CBO confirms that this title would authorize
    \$40.0 million in FY2008 and a total of \$201.0 million over the
    FY2008-FY2012 period.**

***[Title IV---Science and Technology]{.underline}***

**[NOTE]{.underline}: The language of Title IV is pulled from the
following seven bills from the Science Committee: H.R. 364, H.R. 906,
H.R. 1933, H.R. 2773, H.R. 2774, H.R. 2304, and H.R. 2313.**

-   Establishes an Advanced Research Projects Agency-Energy (ARPA-E)
    within the Department of Energy to "enhance the Nation's economic
    and energy security through the development of energy technologies
    that result in reductions of imports of energy from foreign sources,
    reductions of energy-related emissions including greenhouse gases,
    improvements in the energy efficiency of all economic sectors, and
    to ensure that the United States maintains a technological lead in
    developing and deploying energy technologies."

-   Establishes in the U.S. Treasury the Energy Transformation
    Acceleration Fund, into which ARPA-E appropriations would go and
    from which all ARPA-E activities would be funded. The bill
    authorizes for deposit in the Fund: \$300,000,000 for fiscal year
    2008, \$1,000,000,000 for fiscal year 2009, \$1,100,000,000 for
    fiscal year 2010, \$1,200,000,000 for fiscal year 2011, and
    \$1,300,000,000 for fiscal year 2012.

-   Instructs the Secretary of Energy to support programs of research,
    development, demonstration, and commercial application of energy
    production from renewable marine resources---and to promulgate
    siting criteria for such resources (accounting for environmental
    concerns).

-   Instructs the Secretary of Energy to establish one or more centers
    (ideally at universities) for the research, development, and
    demonstration of marine renewable energy technologies.

-   Authorizes appropriations of \$50,000,000 for each of fiscal years
    2008 through 2012 for these marine energy activities.

-   Instructs the Secretary to support the development of geoscientific
    tools and technologies that can assist in the process of locating
    hidden hydrothermal resources that do not exhibit obvious
    manifestations at the earth's surface.

-   Establishes an industry-coupled exploratory drilling program, which
    is a cost-sharing program with industry partners to demonstrate and
    apply advanced exploration technologies.

-   Establishes a program of research, development, demonstration, and
    commercial application of system components and materials capable of
    withstanding extremely high temperatures and corrosiveness in
    geothermal wells.

-   Establishes a program of research, development, demonstration, and
    commercial application of improved models of geothermal reservoir
    performance.

-   Establishes a program of research, development, demonstration, and
    commercial application of technologies to mitigate or preclude
    adverse environmental impacts from geothermal energy development,
    production, or use.

-   Instructs the Secretary to support a program of research,
    development, demonstration, and commercial application of
    technologies necessary to advance enhanced (i.e. man-made)
    geothermal systems to a state of commercial readiness.

-   Establishes a cost-shared, field-based program of research,
    development, and demonstration of technologies to create and
    stimulate enhanced geothermal systems reservoirs.

-   Establishes a demonstration program to prove the feasibility of
    co-producing geothermal power from hot water co-produced from oil
    and gas fields.

-   Provides for the creation of two centers of technology transfer (one
    for hydrothermal and one for enhanced geothermal) to function as
    information clearinghouses for the benefit of geothermal researchers
    and the geothermal industry.

-   Expands the scope of an existing, domestic geothermal
    technology-transfer program from the western U.S. to the entire
    country, so as to encourage the transfer and adoption of appropriate
    geothermal energy technologies throughout the United States.

-   Authorizes appropriations of \$90,000,000 for each of fiscal years
    2008 through 2012, of which \$10,000,000 for each fiscal year would
    be reserved for the oil-and-gas co-production activities mentioned
    above.

-   Establishes 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. The bill authorizes for this solar program \$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.

-   Establishes a competitive grant program (\$50 million over five
    years) in the Office of Solar Energy Technologies to create and
    strengthen solar industry workforce training and internship programs
    in installation, operation, and maintenance of solar energy
    products.

-   Establishes a program of research and development (\$17.5 million
    over five years) 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.

-   Establishes a research, development, and demonstration program
    (\$12.5 million over five years) to promote less costly and more
    reliable decentralized distributed solar-powered air conditioning
    for individuals and businesses.

-   Establishes a program of grants to states to demonstrate advanced
    photovoltaic technology (generating an electric current or voltage
    when exposed to sunlight or other electromagnetic radiation). Grants
    would be distributed in proportion to the populations of the states
    that apply for the funds. The bill authorizes appropriations for
    this program, as follows: \$15,000,000 for fiscal year 2008;
    \$30,000,000 for fiscal year 2009; \$45,000,000 for fiscal year
    2010; \$60,000,000 for fiscal year 2011; and \$70,000,000 for fiscal
    year 2012.

-   Establishes a technology transfer center to make available
    information on research, development, and commercial application of
    technologies related to biofuels and biorefineries.

-   Establishes a program of research, development, and demonstration as
    it relates to existing transportation fuel distribution
    infrastructure and new alternative distribution infrastructure,
    focusing on the physical and chemical properties of biofuels and
    efforts to prevent or mitigate against adverse impacts of those
    properties.

-   Establishes a \$75 million grant program (over three years) for
    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.

-   Establishes a program of research, development, demonstration, and
    commercial application for increasing energy efficiency and reducing
    energy consumption in the operation of biorefinery facilities.

-   Authorizes \$963 million for FY2010 for renewable energy projects
    overall in the Energy Policy Act of 2005, and reserves \$419 million
    of that for bioenergy programs.

-   Establishes a research and development program to improve and
    develop 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 to promote the
    systematic evaluation of the impact of expanded biofuel production
    on the environment, including forestlands, and on the food supply
    for humans and animals.

-   Establishes a research and development program 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.

-   Directs the Secretary of Energy, in consultation with the Director
    of the National Institute of Standards and Technology, in the
    absence of appropriate private sector standards adopted prior to the
    date of enactment of this legislation, to develop standards for
    biofuel dispenser systems in order to promote broader biofuels
    adoption and utilization.

-   Expands the activities of the Energy Department's existing carbon
    sequestration development program, provides for large-scale carbon
    sequestration testing and technology demonstrations, and authorizes
    \$1.68 billion for such activities over five years.

-   Authorizes \$5 million a year for the Assistant Administrator for
    Research and Development of the Environmental Protection Agency to
    conduct a research program to determine procedures necessary to
    protect public health, safety, and the environment from impacts that
    may be associated with capture, injection, and sequestration of
    greenhouse gases in subterranean reservoirs.

-   Authorizes "such sums" to establish a competitive grant program
    through which colleges and universities could apply for and receive
    four-year grants for salary and startup costs for newly designated
    faculty positions in an integrated geological carbon sequestration
    science program and for internships for graduate students in
    geological sequestration science.

-   Authorizes \$10 million to create a university-based research and
    development grant program to study carbon capture and sequestration
    using the various types of coal.

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-   Repeals the Global Change Research Act of 1990 and replaces it with
    the provisions of this section of Title IV.

-   Instructs the President to establish or designate an interagency
    committee to ensure cooperation and coordination of all federal
    research activities pertaining to processes of global change for the
    purpose of increasing the overall effectiveness and productivity of
    federal global change research efforts.

-   Instructs the President to establish an interagency United States
    Global Change Research Program to improve understanding of global
    change, to respond to the information needs of communities and
    decision-makers, and to provide periodic assessments of the
    vulnerability of the United States and other regions to global and
    regional climate change. The bill authorizes \$10 million for each
    of fiscal years 2008-2013.

-   Provides for a study of the current status of ice sheet melt, as
    caused by climate change, with implications for global sea level
    rise; and provides for a study of the current state of the science
    on the potential impacts of climate change on patterns of hurricane
    and typhoon development, including storm intensity, track, and
    frequency, and the implications for hurricane-prone and
    typhoon-prone coastal regions.

-   Directs the President to establish or designate an interagency
    climate and other global change data management working group to
    make recommendations for coordinating federal climate and other
    global change data management and archiving activities.

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-   **[Cost]{.underline}: CBO confirms that this title would authorize
    \$738.0 million in FY2008 and a total of \$8.73 billion over the
    FY2008-FY2012 period.**

***[Title V---Agriculture Energy]{.underline}***

-   Adds a new section to the farm bill of 2002 (7 U.S.C. 8101 et seq.)
    to extend several energy-related programs.

-   Directs the Secretary of Agriculture to make loan guarantees to
    eligible entities to assist in paying the cost of development and
    construction of biorefineries and biofuel production plants
    (including retrofitting) to carry out projects to demonstrate the
    commercial viability of one or more processes for converting biomass
    to fuels or chemicals. Of the funds of the Commodity Credit
    Corporation, the Secretary would be authorized to use \$640.0
    million over five years for the loan guarantees.

-   Extends the Biodiesel fuel education program through FY2012
    (authorized at \$2 million a year from the funds of the Commodity
    Credit Corporation).

-   Extends the Energy Audit and Renewable Energy Development Program
    through FY2012.

-   Extends the loan guarantee authority for the Energy for Rural
    America Program (and reserves \$425 million over five years of the
    funds of the Commodity Credit Corporation for the loan guarantees).

-   Establishes the Biomass Research and Development Board, which would
    supersede the Interagency Council on Biobased Products and Bioenergy
    established by Executive Order No. 13134, to coordinate programs
    within and among federal departments and agencies for promoting the
    use of biobased fuels and biobased products by maximizing the
    benefits deriving from federal grants and assistance and bringing
    coherence to federal strategic planning.

-   Directs the Secretary of Agriculture and the Secretary of Energy to
    establish a Biomass Research and Development Initiative, under which
    competitively awarded grants, contracts, and financial assistance
    are provided to, or entered into with, eligible entities to carry
    out research on, and development and demonstration of, biobased
    fuels and biobased products, and the methods, practices, and
    technologies, for their production. The bill reserves \$350 million
    over five years (of the funds from the Commodity Credit Corporation)
    AND authorizes an additional \$200 million for each of fiscal years
    2006 through 2015 for this Initiative.

-   Reserves \$1.22 billion over five years (of the funds from the
    Commodity Credit Corporation) for an expanded Bioenergy Program.

-   Directs the Secretary of Agriculture, working through the Forest
    Service, in cooperation with other federal agencies, land grant
    colleges and universities, and private entities, to conduct a
    competitive research and development program to encourage new
    forest-to-energy technologies. The bill reserves \$36.0 million over
    five years (of the funds from the Commodity Credit Corporation) for
    this program.

-   **[Cost]{.underline}: Unavailable**

***[Title VI---Carbon-Neutral Government]{.underline}***

**[NOTE]{.underline}: The language of Title VI is pulled from H.R. 2635
(Oversight and Government Reform Committee).**

-   Includes a variety of findings about global warming, including:

> \--"The harms associated with global warming are serious and well
> recognized."
>
> \--"The risks associated with a global mean surface temperature
> increase above 2 degrees Celsius (3.6 degrees Fahrenheit) above
> preindustrial temperature are grave. According to the
> Intergovernmental Panel on Climate Change, such temperature increases
> would increase the severity of ongoing alterations of terrestrial and
> marine environments, with potentially catastrophic results."
>
> \--"Ongoing and projected effects include...the potential extinction
> of 30 percent of all living species."
>
> \--"To preserve the ability to stabilize atmospheric greenhouse gas
> concentrations at levels likely to protect against a temperature rise
> above 2 degrees Celsius (3.6 degrees Fahrenheit) and maintain the
> likelihood of avoiding catastrophic global warming will require
> reductions of greenhouse gas emissions of 50 percent to 85 percent
> globally."

-   Requires each federal agency to annually take inventory of and
    report its greenhouse gas emissions for the pervious fiscal
    year---both direct and indirect (as a result of electricity use and
    travel by employees) and for contractors as well as regular
    employees.

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-   Directs EPA to establish targets for greenhouse gas reduction and
    standards for energy efficiency for federal agencies. Starting in
    2010, this title would require federal agencies to reduce emissions
    of greenhouse gases in order to achieve net zero emissions by 2050.

-   If no national mandatory economy-wide cap-and-trade program for
    greenhouse gases has been enacted by fiscal year 2010, EPA would
    have to develop and submit to Congress by 2011 a proposal to allow
    federal agencies to meet the annual reduction targets applicable to
    such agencies under this title in part through emissions offsets,
    beginning in fiscal year 2015.

-   **Establishes a two-year cap-and-trade pilot program (authorized at
    "such sums") for federal agency purchases of greenhouse gas offsets
    (as detailed in the legislation) and renewable energy
    certificates.**

-   Requires federal agencies to purchase low greenhouse gas-emitting
    vehicles (when purchasing light- or medium-duty vehicles).

-   Directs the Secretary of Energy to promulgate energy-efficiency
    standards for new (and renovated) federal buildings so that such
    buildings could reduce their fossil-fuel-generated energy
    consumption by certain percentages in five-year increments (as
    detailed in the bill), resulting in a 100% reduction by 2030.

-   Prohibits new building leases on buildings that are not Energy Star
    compliant (beginning three years after this bill's enactment and
    subject to exception).

-   Requires OMB to track the compliance with the various mandates
    above.

-   **Allows individuals to sue the federal government for damages (of
    up to \$1.5 million *per year*) caused by global warming (resulting
    from any alleged failure of a federal agency to adhere to the
    mandates above)---"even if the effect or the risk is widely
    shared."**

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-   **[Cost]{.underline}: CBO confirms that this title would authorize
    \$180.0 million in FY2008 and a total of \$1.37 billion over the
    FY2008-FY2012 period. CBO also notes that this title would increase
    mandatory spending by \$20.0 million in FY2008, \$340.0 million over
    the FY2008-FY2012 period, and \$840.0 million over the FY2008-FY2017
    period.**

***[Title VII---Natural Resources Committee Provisions]{.underline}***

**[NOTE]{.underline}: The language of Title VII is pulled from H.R. 2337
(Natural Resources Committee).**

-   Repeals a provision of the Energy Policy Act of 2005 ("EPAct") that
    provides funds to the Bureau of Land Management (BLM) "pilot
    offices" to enable them to manage industry activity in their
    districts in accordance with federal law and policy.

-   Requires the collection of a \$1,700 cost recovery fee for
    applications for permits to drill for oil and gas on federal lands,
    and authorizes the expenditure of the fee for BLM to administer the
    drilling program.

[]{.mark}

-   Extends the deadline for processing onshore oil and gas permit
    applications from 30 to 45 days.

[]{.mark}

-   Amends EPAct to establish a slower approach to a commercial leasing
    program for oil shale and tar sands resources on public lands. As
    the Republican staff of the Resources Committee points out,
    estimates are that the U.S. oil shale reserves hold enough energy to
    supply all of the U.S.'s oil needs for 228 years. This is more oil
    than the entire world has used since oil was discovered, and over
    twice as much oil as all the OPEC countries hold combined.

-   Requires increased audits of oil and gas leases (at least 550 each
    fiscal year).

[]{.mark}

-   Increases the civil penalties for violations related to federal oil
    and gas royalties.

-   Eliminates the requirement that the federal government pay interest
    to oil and gas lessees when they make royalty overpayments. Lessees
    would still have to pay interest to the federal government on
    royalty underpayments.

-   Requires operators (people in charge of resources operations on
    federal leases) to obtain a written surface-use agreement from the
    private owner of the surface above the minerals in order to obtain
    BLM approval to drill or to site production facilities. The bill
    provides for certain payments to the surface owner and requirements
    for notification of the surface owner.

[]{.mark}

-   Requires that an oil and gas operator remediate or replace the water
    supply of a surface owner damaged in the course of oil and gas
    drilling or production operations under the Mineral Leasing Act.

[]{.mark}

-   Directs the Secretary of the Interior to impose a fee on
    non-producing oil and gas leases.

-   Authorizes \$2 million for each of fiscal years 2008 through 2015
    for new and ongoing research efforts to evaluate methods for
    minimizing wildlife impacts at wind energy projects and to explore
    effective mitigation methods that may be utilized for that purpose.

-   Authorizes the Interior Secretary to make grants to eligible coastal
    states to support voluntary state efforts to initiate and complete
    surveys of portions of coastal state waters and federal waters
    adjacent to a state's coastal zone to identify potential areas
    suitable or unsuitable for the exploration, development, and
    production of alternative energy. Authorizes "such sums."

-   Establishes a ten-year pilot program for the development of
    strategic solar reserves on federal lands for the advancement,
    development, assessment, and installation of commercial solar
    electric energy systems.

-   Requires assessments of the national capacity for man-made carbon
    dioxide storage and for natural carbon dioxide storage (in plants,
    bodies of water, etc.).

-   Creates a National Resources Management Council on Climate Change to
    address the impacts of climate change on federal lands, the ocean
    environment, and the federal water infrastructure. The bill requires
    the development of a national strategy to protect wildlife from the
    effects of global warming. The Secretary of the Interior would have
    to establish and appoint members of a science advisory board,
    comprised of not less than ten and not more than 20 members
    recommended by the President of the National Academy of Sciences
    with expertise in wildlife biology, ecology, climate change, and
    other relevant disciplines.

-   Establishes a state and tribal wildlife conservation grants program,
    authorized at "such sums."

-   Creates an ocean policy, global warming, and acidification program
    (to predict, plan for, and mitigate the effects of global warming on
    the ocean and coastal ecosystems). Authorized at "such sums."

-   Authorizes grants to states to improve their coastal resiliency to
    global warming. Authorized at "such sums."

-   Directs the President to establish a National Integrated Coastal and
    Ocean Observation System to improve global warming predictions.

-   Directs the Secretary of the Interior to agree to each "requested"
    renegotiation of current federal oil and gas leases in the Gulf of
    Mexico from 1998 and 1999 that did not include royalty price
    thresholds (because of an oversight by the Clinton Administration's
    Department of the Interior).  These thresholds, had they been
    applied as in most other leases, would have required royalty
    payments to the Treasury when oil and gas prices rose above certain
    amounts (\$28 per barrel of oil and \$3.50 per million British
    thermal units of natural gas).  *(Same language as included in the
    House-passed H.R. 6 during the 100-Hour Agenda earlier this year)*

> If a lessee does not request to have its 1998 or 1999 lease
> renegotiated to include royalty price thresholds at or above the
> amounts above, it could opt to instead pay a fee of \$9 per barrel of
> oil or \$1.25 per million British thermal units (BTUs) of natural gas
> (in 2005 dollars), for producing leases when the price of oil exceeds
> \$34.73 per oil or the price of natural gas exceeds \$4.34 per million
> BTUs (effective on production beginning October 1, 2006). 
> Non-producing leases would be subject to a \$3.75-per-acre annual fee.
> *(Same language as included in the House-passed H.R. 6 during the
> 100-Hour Agenda earlier this year)*

-   Prohibits oil and gas companies from bidding on future oil and gas
    leases in the Gulf of Mexico unless they have either renegotiated
    their old leases to include royalty price thresholds or have paid
    all required fees described above. *(Same language as included in
    the House-passed H.R. 6 during the 100-Hour Agenda earlier this
    year)*

> [NOTE]{.underline}: Several oil companies, including BP,
> ConocoPhillips, and Shell, have already signed an agreement with the
> federal government to begin applying the royalty price thresholds to
> oil and gas drilled after October 1, 2006.  \[Other companies have not
> yet renegotiated.\] However, with this legislation, the Democrats are
> trying to recapture \$2 billion in "unpaid royalties" to fund other
> initiatives.  (On January 16, 2007, the *Wall Street Journal* noted
> that back in 1998, certain oil companies actually alerted the federal
> government to the absence of royalty price thresholds in their leases,
> but the Interior Department cleared them to go forward anyway.)

-   Repeals the following tax incentives provided in the 2005 Energy
    Policy Act (Public Law 109-58):

> \--royalty relief for natural gas production from deep wells in
> shallow Gulf of Mexico waters (section 344 of Public Law 109-58);
>
> \--royalty relief for deep water production in the Gulf of Mexico
> section 345 of Public Law 109-58);
>
> \--drilling permit fee waivers (section 365(i) of Public Law 109-58);
> and
>
> \--exploration incentives in Alaska's Naval Petroleum Reserve (section
> 347(k) and section 347(i) of Public Law 109-58).
>
> *(Same language as included in the House-passed H.R. 6 during the
> 100-Hour Agenda earlier this year)*

-   Repeals the exploration incentive for planning areas off Alaska's
    shores (43 U.S.C. 1337(a)(3)(B)). *(Same language as included in the
    House-passed H.R. 6 during the 100-Hour Agenda earlier this year)*

-   Creates an Oil Shale Community Impact Assistance Fund in the U.S.
    Treasury, funded by bonus bids and royalties from oil shale leases.
    The Fund would then make payments to counties for the planning,
    construction, and maintenance of public facilities and the provision
    of public services (without restriction that such facilities or
    services be related to the oil shale leases in any way).

-   Applies Davis-Bacon prevailing wage requirements to contractors
    funded by the solar and biomass sections of this legislation.

-   Prohibits surface occupancy of leases issued for federal minerals in
    the Roan Plateau, Colorado, essentially cutting off production from
    a large, clean natural gas field in Colorado that was once set aside
    as the Naval Oil Shale Reserves in 1912 because of its rich energy
    resources. Some experts estimate that this provision would prevent
    access to 4.2 trillion cubic feet of natural gas.

```{=html}
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```
-   **[Cost]{.underline}: Although some provisions of this title have
    been altered or added since the bill was reported fm the Natural
    Resources Committee, CBO estimated that H.R. 2337 would authorize
    \$352.0 million in FY2008 and a total of \$3.35 billion over the
    FY2008-FY2012 period. CBO also notes that H.R. 2337 would
    [decrease]{.underline} mandatory spending by \$52.0 million in
    FY2008, \$259.0 million over the FY2008-FY2012 period, and \$431.0
    million over the FY2008-FY2017 period.**

***[Title VIII---Transportation and Infrastructure]{.underline}***

**[NOTE]{.underline}: The language of Title VIII is pulled from H.R.
2701 (Transportation and Infrastructure Committee).**

-   Establishes in the Department of Transportation a Center for Climate
    Change and Environment to plan, coordinate, and implement
    department-wide research, strategies, and actions to reduce
    transportation-related energy use and mitigate the effects of
    climate change; and department-wide research strategies and action
    to address the impacts of climate change on transportation systems
    and infrastructure.

-   Authorizes \$850 million for each of fiscal years 2008 and 2009 for
    grants to improve public transportation services in urban and
    non-urban areas.

-   Authorizes \$10 million for each of fiscal years 2008 through 2011
    for grants to rail carriers to purchase hybrid locomotives.

-   Authorizes \$250 million for each of fiscal years 2008 through 2011
    for grants to rail carriers to rehabilitate, preserve, or improve
    railroad track used primarily for freight rail. [Davis-Bacon
    prevailing wages would apply]{.underline}.

-   Authorizes \$2 million over two years to study the feasibility of
    ethanol pipelines.

-   Authorizes \$25 million for each of fiscal years 2008 through 2011
    for grants for short sea transportation projects.

-   Establishes a pilot program to carry out up to six environmental
    mitigation demonstration projects at public-use airports.

-   Directs the General Services Administration (GSA) to set minimum
    energy efficiency and renewable energy standards or GSA-leased
    space.

-   Requires that each public building constructed, altered, or acquired
    by GSA be equipped, to the maximum extent feasible, with lighting
    fixtures and bulbs that are energy efficient. The bill also requires
    that each lighting fixture or bulb that is replaced by GSA in the
    normal course of maintenance of public buildings be replaced, to the
    maximum extent feasible, with a lighting fixture or bulb that is
    energy efficient.

-   Instructs the Administrator of General Services to install a
    photovoltaic system, as set forth in the Sun Wall Design Project,
    for the headquarters building of the Department of Energy, located
    at 1000 Independence Avenue, SW, Washington, DC.

-   Prohibits incandescent lamps for the Coast Guard after January 1,
    2009.

-   Allows the Architect of the Capitol to perform a feasibility study
    regarding construction of a photovoltaic roof for the Rayburn House
    Office Building.

-   Directs the Architect of the Capitol to install technologies for the
    capture and storage or use of carbon dioxide emitted from the
    Capitol Power plant as a result of burning coal.

-   Establishes a 21st Century Water Commission to use existing water
    assessments and conduct such additional studies and assessments as
    may be necessary to project future water supply and demand, impacts
    of climate change to our nation's flood risk and water availability,
    and associated impacts of climate change on water quality.

-   **[Cost]{.underline}: CBO confirms that this title would authorize
    \$1.23 billion in FY2008 and a total of \$3.27 billion over the
    FY2008-FY2012 period. CBO also notes that this title would increase
    mandatory spending by \$76.0 million in FY2008, \$770.0 million over
    the FY2008-FY2012 period, and \$830.0 million over the FY2008-FY2017
    period.**

***[Title IX---Energy and Commerce]{.underline}***

-   Requires new energy efficiency standards (to vary by region) for
    home appliances, such as dehumidifiers, residential clotheswashers,
    residential dishwashers, refrigerators, freezers, electric motors,
    and residential boilers.

-   Requires that, after July 1, 2012, certain consumer appliances and
    industrial equipment, when in standby mode, would have to operate
    with not more than one watt of electric power (subject to
    exceptions).

-   Prohibits the sale of certain light bulbs after January 1, 2012.

-   Includes nearly identical GSA-lightbulb provision as in Title VIII
    above.

-   Requires that states certify that they are in compliance with a
    federal building energy code---five years after the enactment of
    this legislation. The bill authorizes \$25 million for each of
    fiscal years 2008 through 2012 (and "such sums" each year
    thereafter) as "incentive funding" to the states to comply.

-   Requires the promulgation of energy efficiency standards for
    manufactured housing, within four years of the enactment of this
    legislation.

-   Increases the authorization for the Weatherization Assistance
    Program by \$50 million (to \$750 million) for FY2008 and authorizes
    \$750 million for each of fiscal years 2009 through 2012 for the
    program.

-   Establishes an Office of Federal High-Performance Green Buildings in
    GSA, and establishes an Office of Commercial High-Performance Green
    Buildings in the Energy Department.

-   The director of the Commercial office would have to produce a
    national standard so that all commercial buildings are
    net-zero-energy commercial buildings by 2050. The bill authorizes
    \$7.92 billion over forty-three years for this initiative.

-   Directs every federal agency to designate a manager for energy and
    water efficiency measures.

-   Authorizes \$120 million over six years for demonstration projects
    under the two Green Buildings Offices in this title.

-   Provides for up to \$100 million in loan guarantees for renovation
    projects to make commercial buildings "green."

-   Directs the EPA, in cooperation with state energy offices, to
    establish a Recoverable Waste-Energy Inventory Program, including an
    ongoing survey of all major industrial and large commercial
    combustion sources in the United States and the sites where these
    are located, together with a review of each for quantity and quality
    of waste energy.

-   Establishes a \$900 million (over five years) EPA Waste Energy
    Recovery Incentive Grant Program to provide incentive grants to
    owners and operators of projects that successfully produce
    electricity or incremental useful thermal energy from waste energy
    recovery (and to utilities purchasing or distributing such
    electricity) and to reward states that have achieved 80% or more of
    identified waste-heat recovery opportunities.

-   Directs the Secretary of Energy to implement a \$45 million (over
    three years) program of information dissemination and technical
    assistance to institutional entities to assist them in identifying,
    evaluating, designing, and implementing sustainable energy
    infrastructure.

-   Directs the Secretary of Energy to create a \$2.25 billion (over
    five years) Sustainable Institutions Revolving Fund for providing
    loans for the construction or improvement of sustainable energy
    infrastructure to serve institutional entities.

-   Strikes the sunset on the authority for federal agencies to enter
    into contracts to achieve energy savings. The bill creates a \$3.8
    million (over five years) training program for certain agencies
    (including the U.S. Postal Service) so that such contracts can be
    better negotiated.

-   Establishes a \$2.12 billion (over five years) Energy Efficiency
    Block Grant Program to make block grants to states and localities
    for the development of energy efficiency strategies, programs, and
    other related activities. The bill also creates a \$750 million
    (over five years) technical assistance program for states and
    localities.

-   Establishes a nine-member, \$240 million (over 12 years) Grid
    Modernization Commission to facilitate the adoption of "Smart Grid"
    (i.e. modernizing the nation's electricity grid) standards,
    technologies, and practices across the Nation's electricity grid to
    the point of general adoption and ongoing market support in the
    United States electric sector.

-   Creates several programs for "investment" in Smart Grid
    technologies, standards, and projects.

-   Instructs each federal agency, for calendar year 2009 and each
    calendar year thereafter, to reduce its aggregate peak electricity
    demand, as detailed by the reduction standard in the legislation.

-   Requires that loan guarantees for electricity facility modernization
    projects be only for projects paying Davis-Bacon wages.

-   Authorizes a study of the feasibility of ethanol pipelines. *(nearly
    identical provision to that in Title VIII)*

-   Authorizes an additional \$1 billion for cellulosic ethanol
    production grants.

-   Directs the Secretaries of Transportation and Energy to carry out a
    public education campaign to inform consumers about flexible-fuel
    vehicles. *(Some conservatives may regard this as something the
    private sector should do.)*

-   Authorizes \$50 million in FY2008 for a cellulosic ethanol and
    biofuels research and development grants to universities.

-   Authorizes \$140 million in grants over seven years for
    private-sector energy cooperation with corresponding entities in
    Israel, and requires that entities repay the grants if they yield
    development of a product or process that is marketed or used. *(same
    text as H.R. 1838, a Rep. Shadegg/Rep. Sherman bill)*

-   Establishes a program to provide loan guarantees 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, for hybrid vehicles.

-   Establishes a competitive program to provide cost-shared grants to
    state governments, local governments, metropolitan transportation
    authorities, air pollution control districts, private or nonprofit
    entities, or combinations thereof, to carry out projects to
    encourage the use of plug-in electric vehicles or other emerging
    electric vehicle technologies. The program is authorized at "such
    sums."

-   Establishes a program to make grants to owners of domestic motor
    vehicle manufacturing or production facilities for the production of
    plug-in hybrid electric motors or conversion modules to be used as
    electricity storage capacity for utilities. The program is
    authorized at "such sums."

-   Establishes a revolving loan program to provide loans to eligible
    entities for the conduct of qualified electric transportation
    projects.

-   Authorizes \$60 million over five years for the Administrator of the
    Energy Information Administration to establish a five-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.

-   **[Cost]{.underline}: Unavailable**

**[Matters NOT Included in This Bill]{.underline}:** CAFÉ (Corporate
Average Fuel Economy) standards increases and Renewable Portfolio
Standards (RPS) provisions are [NOT]{.underline} included in the
underlying bill.

**[RSC Bonus Fact]{.underline}**: Thomas Edison invented the light bulb
and the first electric power station without one penny of federal funds.
<http://www.eei.org/industry_issues/industry_overview_and_statistics/history/#invention>

**[Committee Action]{.underline}**: On July 30, 2007, the bill was
referred to nearly every standing committee in the House. Most of the
components of the bill had already been considered and reported by the
respective committees by the time H.R. 3221 was introduced.

**[Administration Position]{.underline}**: A Statement of Administration
Policy (SAP) was not available at press time, yet Administration
opposition to this bill is expected.

**[Cost to Taxpayers]{.underline}**: A formal CBO cost estimate for H.R.
3221 is not available, and CBO estimates for certain portions of the
bill are also not available. However, the CBO estimates that *are*
available for various portions of the bill add up to:

-   \$18.7 billion in authorizations over five years; and an

-   \$851.0 million increase in mandatory spending.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: Yes, the bill would create dozens of new
programs and offices.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: Yes, numerous intergovernmental
and private-sector mandates, mainly regarding energy efficiency
standards and compliance.

**[Does the Bill Comply with House Rules Regarding Earmarks/Limited Tax
Benefits/Limited Tariff Benefits?]{.underline}**: An earmarks/revenue
benefits statement required under House Rule XXI, Clause 9(a) was not
available at press time.

**[Constitutional Authority]{.underline}**: A committee report citing
constitutional authority is unavailable.

[Note]{.underline}: Article VI, Clause 3 of the U.S. Constitution states
that, "The Senators and Representatives...and all executive and judicial
Officers...shall be bound by Oath or Affirmation, to support this
Constitution."

**[Outside Organizations]{.underline}**: The following is a sample of
entities that are opposing H.R. 3221 (ones with a star are scoring or
potentially scoring the bill in their annual ratings of Congress):

-   American Chemistry Council

-   American Conservative Union\*

-   American Petroleum Institute

-   Americans for Prosperity

-   Americans for Tax Reform\*

-   Competitive Enterprise Institute

-   Consumer Alliance for Energy Security

-   Council for Citizens Against Government Waste\*

-   Family Research Council

-   FreedomWorks

-   Independent Petroleum Association of America

-   National Association of Manufacturers

-   National Petrochemical and Refiners Association

-   National Taxpayers Union\*

-   Natural Gas Supply Association

-   Property Rights Alliance

-   60 Plus

-   Small Business and Entrepreneurship Council\*

-   U.S. Chamber of Commerce

-   U.S. Oil & Gas Association

**[RSC Staff Contact]{.underline}**: Paul S. Teller,
<paul.teller@mail.house.gov>, (202) 226-9718