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[Senate Report 110-65]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 140
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-65

======================================================================

 
                       ENERGY SAVINGS ACT OF 2007

                                _______
                                

                  May 7, 2007.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1321]

    The Committee on Energy and Natural Resources, having 
considered the same, reports favorably thereon, an original 
bill (S. 1321) to enhance the energy security of the United 
States by promoting biofuels, energy efficiency, and carbon 
capture and storage, and for other purposes, and recommends 
that the bill do pass.

                         Purpose of the Measure

    The purpose of the measure is to enhance the energy 
security of the United States by promoting biofuels, energy 
efficiency, and carbon capture and storage.

                          Background and Need

    Events unfolding on the world stage, continuing pressure on 
the price of vital energy commodities and the recognition that 
opportunity exists for the United States to become a global 
leader in the development of innovative energy technologies 
have combined to fashion an emerging consensus among American 
citizens and the Congress alike: the nation must move forward 
aggressively to enhance its energy security.
    In 2005, the United States imported roughly 60 percent of 
the petroleum it consumed, a figure that is projected to 
approach 70 percent over the next two decades. More than 35 
percent of the estimated increase in imports is expected to 
come from member-nations of the Organization of Petroleum 
Exporting Countries (OPEC). Meanwhile, petroleum prices have 
increased substantially in recent years--putting strain on the 
budgets of families, farmers and businesses across the nation, 
but also imposing costs on the American economy as a whole, 
adding an estimated $120 billion to the nation's trade deficit 
in 2005 and 2006.
    As the nation's reliance on foreign supplies of petroleum 
has grown, so too has the need for federal policies that 
promote new technologies and more efficient use of energy, tap 
the potential of home-grown biofuels, and nurture America's 
talent for innovation. Such policies reinforce the security 
objectives of the United States, are consistent with principles 
of environmental stewardship, and hold the promise of new job-
creation and enhanced competitiveness in an increasingly global 
economy. This legislation addresses three key areas in which 
the United States can make substantial strides toward improving 
its energy security: increased domestic production of renewable 
fuels; strengthened energy efficiency requirements; and 
critical research on technologies to reduce carbon emissions.

Biofuels for energy security and transportation

    In recent years, a number of factors have sharpened public 
focus on the search for viable alternatives to conventional 
petroleum-based fuels. These factors include increased world 
oil prices, concerns regarding import dependence, and the 
environmental effects of vehicle emissions. Biofuels--a term 
which includes ethanol and biodiesel--can be derived from an 
array of crops and other biological materials available 
throughout the nation. Since the 1970s, all cars and light-
trucks with gasoline engines built for the U.S. market have 
been able to run on ethanol blends of up to 10 percent (E10). A 
smaller yet increasing number of vehicles--estimated at about 6 
million on American roads today--can run on fuel comprised of 
85 percent ethanol, or E85. Meanwhile, existing diesel engines 
can run on biodiesel in any concentration. Due to concerns 
about quality standards, however, manufacturers may not honor 
warranties for engines running on biodiesel blends in excess of 
5 percent (B5) or 20 percent (B20).
    The passage of the Energy Policy Act of 2005 (Public Law 
Number 109-58) was a watershed event for the nation's biofuels 
industry, establishing the first federal Renewable Fuels 
Standard (RFS). The RFS created an escalating requirement for 
the amount of biofuels blended in U.S. gasoline, starting with 
4 billion gallons in 2006, and accelerating to 7.5 billion 
gallons in 2012. However, increased use of biofuels is already 
surpassing the original RFS targets, with 5 billion gallons 
added to U.S. gasoline in 2006. Another 6 billion gallons of 
production capacity is expected to go into operation by 2009, 
bringing total domestic production capacity to approximately 
11.7 billion gallons. According to the Energy Information 
Administration's 2007 Annual Energy Outlook, ``the market 
potential for biofuel blends (E10, B5, and B20) remains 
significantly larger than current production levels and will 
continue to absorb the biofuel supply for the foreseeable 
future.''
    Yet, challenges remain if biofuels are to become a 
cornerstone of U.S. efforts to improve national energy 
security. Today, approximately 98 percent of domestic ethanol 
production is derived from cornstarch--creating upward pressure 
on commodity prices, restricting production to regions of the 
country where corn is grown, and posing challenges to efficient 
distribution of the fuel. Diversifying feedstocks to include a 
broader array of renewable biomass can promote regional 
diversity in biofuels production and distribution, spreading 
economic benefits to rural communities across the country and 
relieving pressure on corn commodity prices. In addition, it 
can lead to greater efficiency in the fuel-production process 
and help save on fossil fuel emissions.
    Another issue key to making biofuels a significant factor 
in displacing domestic petroleum use relates to existing 
infrastructure challenges. Of the nearly 170,000 vehicle 
fueling stations in the U.S., just one percent--about 1,767--
carried E85 or biodiesel in 2006. Consumers must have access to 
these fuels, if they are to become a viable alternative.
    The Committee believes that increasing and extending the 
existing RFS--with specific incentives for the production of 
biofuels from new sources of renewable biomass--is required, to 
provide market certainty to both the existing ethanol industry 
and the next generation of advanced biofuels producers. In 
addition, federal resources are needed to help break down 
infrastructure barriers to renewable fuel distribution, and 
address basic scientific challenges associated with the use of 
promising new feedstocks.

Energy efficiency

    In addition to producing more domestic renewable energy, 
using existing resources more efficiently promises further to 
enhance U.S. energy security, provide environmental benefits, 
and save consumers money.
    Improving efficiency in transportation remains one of the 
most important--and vexing--energy challenges facing the 
nation. Consumption of liquid fuels is currently projected to 
grow by more than 6 million barrels per day, from 2005 to 
2030--5.8 million barrels per day attributable to 
transportation. As fuel consumption increases, so too do U.S. 
imports--a key concern for both economic and national security 
reasons.
    A concerted federal effort is needed to reduce the 
transportation sector's consumption of liquid fuels in general, 
and gasoline in particular. This initiative will necessitate a 
serious plan and the concerted leadership of present and future 
Administrations. In addition, investments in advanced vehicle 
technology development, basic science related to energy 
storage, and public education are required.
    The federal government itself represents the nation's 
largest energy consumer and, as such, can play a key role in 
bringing new renewable energy and efficiency technologies to 
market. In addition, improved federal efficiency can save 
taxpayers money. Even as the government has reduced its energy 
consumption--savings of 2.5 percent from Fiscal Year 2004 to 
Fiscal Year 2005--federal energy costs nevertheless increased 
24.1 percent, to $14.5 billion. Rising energy prices have an 
impact on the federal budget, as on every consumer and business 
in America. To capture additional savings, federal efficiency 
requirements--from lighting procurement, to petroleum 
displacement, to energy management strategies across federal 
buildings--should be strengthened.
    Individual consumers also realize the benefits of improved 
energy efficiency. That is particularly true when it comes to 
improving the performance of lighting technologies and 
appliances, which together can contribute as much as two-thirds 
of an average American household's electricity costs. Lighting 
alone is estimated to consume about 22 percent of all U.S. 
electricity generation. Refrigerators account for an estimated 
additional 12 percent of U.S. residential energy use. To 
maximize consumer benefits, the Department of Energy's 
standards-setting process should be streamlined and 
strengthened, and new federal requirements must be established 
for a number of different kinds of household appliances.

Carbon capture and storage research, development, and demonstration

    Carbon capture and storage (CCS), often called carbon 
sequestration, has attracted interest as a measure for 
mitigating global climate change. While scientific and 
technological challenges remain, carbon sequestration holds 
particular promise related to the potentially large amounts of 
carbon dioxide emitted from the use of fossil fuels. Electric 
generating plants may be the most likely initial candidates for 
implementing carbon sequestration, given that they are 
predominantly large, single-point sources, and contribute an 
estimated one-third of U.S. carbon dioxide emissions from 
fossil fuels.
    A viable, integrated CCS system would include three main 
components: (1) Capture and separation of carbon dioxide at the 
source of generation; (2) the transportation of captured carbon 
dioxide to a storage site; and (3) storage in a geological 
reservoir. There are many ways that carbon storage can occur, 
such as through direct geologic injection, forest and plant 
uptake (indirect), soil biomass accumulation (indirect), direct 
ocean injection, and many others.
    The Energy Policy Act of 2005 directed the Secretary of 
Energy to carry out research and development on technologies 
designed to capture carbon dioxide, specifically with respect 
to combustion-based energy systems. However, given the critical 
nature of these efforts, the need to demonstrate emerging 
methodologies, and the potential to apply them to a wider 
variety of energy technologies, the existing program should be 
strengthened and further expanded. In addition, more research 
is needed to assess the characteristics of various geological 
formations, and their suitability as sites for carbon storage. 
Existing surveys do not provide a comprehensive account of 
potential geologic storage sites across the United States, and 
methodologies should be standardized.
    In sum, the Committee supports moving forward expeditiously 
with groundbreaking research on carbon sequestration, spurring 
diverse, domestic renewable fuels production, and promoting 
energy efficiency throughout the economy. The Committee 
believes this legislation is needed to make substantial 
progress on all of these key initiatives, thereby improving the 
energy security of the United States and reducing the nation's 
dependence on imported oil.

                          Legislative History

    The Committee on Energy and Natural Resources held five 
oversight hearings on the subjects of biofuels, energy 
efficiency, and carbon capture and sequestration in the first 
three months of the 110th Congress. The five hearings were on 
fuel efficiency in the transportation sector (Full Committee 
hearing, January 30, 2007), biofuels (Full Committee 
conference, February 1, 2007), energy efficiency programs 
(Subcommittee on Energy hearing, February 12, 2007), advanced 
energy technologies (Full Committee hearing, March 7, 2007), 
and coal (Full Committee hearing, March 22, 2007).
    Subsequently, the Chairman and Ranking Member of the 
Committee introduced three bipartisan bills on the three 
subjects: S. 962, the Department of Energy Carbon Capture and 
Storage Research, Development, and Demonstration Act of 2007, 
on March 22, 2007; S. 987, the Biofuels for Energy Security and 
Transportation Act of 2007, on March 26, 2007; and S. 1115, the 
Energy Efficiency Promotion Act of 2007, on April 16, 2007. In 
addition, Senator Salazar introduced S. 731, the National 
Carbon Dioxide Storage Capacity Assessment Act of 2007, on 
March 1, 2007.
    The Full Committee held legislative hearings on S. 987, the 
Biofuels for Energy Security and Transportation Act, on April 
12, 2007; on S. 731, the National Carbon Dioxide Storage 
Capacity Assessment Act of 2007, and S. 962, the Department of 
Energy Carbon Capture and Storage Research, Development, and 
Demonstration Act of 2007, on April 16, 2007; and on S. 1115, 
the Energy Efficiency Promotion Act of 2007, on April 23, 2007.
    On April 27, 2007, the Chairman and Ranking Member 
circulated to Members of the Committee a draft of an original 
bill drawn from the text of S. 987, S. 1115, and a combination 
of S. 731 and S. 962.
    The Committee on Energy and Natural Resources met in open 
business session on May 2, 2007 to consider the draft, and 
ordered an original bill favorably reported.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on May 2, 2007, by majority vote of a 
quorum present, recommends that the Senate pass an original 
bill, as described herein.
    The rollcall vote on reporting the measure was 20 yeas, 3 
nays, as follows:
        YEAS                          NAYS
Mr. Bingaman                        Mr. Thomas
Mr. Akaka                           Mr. Burr
Mr. Dorgan                          Mr. DeMint
Mr. Wyden*
Mr. Johnson*
Ms. Landrieu
Ms. Cantwell
Mr. Salazar
Mr. Menendez*
Mrs. Lincoln
Mr. Sanders
Mr. Tester
Mr. Domenici
Mr. Craig
Ms. Murkowski
Mr. Corker
Mr. Sessions*
Mr. Smith*
Mr. Bunning*
Mr. Martinez*
    *Indicates vote by proxy.

                      Section-by-Section Analysis

Section 1. Short title; Table of Contents

    Section 1 provides a short title and table of contents.

Section 2. Definition of Secretary

    Section 2 defines ``Secretary'' for purposes of this Act as 
the Secretary of Energy.

        TITLE I--BIOFUELS FOR ENERGY SECURITY AND TRANSPORTATION

Section 101. Short title

    Section 101 names title I the ``Biofuels for Energy 
Security and Transportation Act of 2007''.

Section 102. Definitions

    Section 102 defines the terms used in this title. These 
terms include ``advanced biofuel,'' which means any fuel 
derived from a source of renewable biomass other than corn 
starch. The definition of ``renewable biomass'' included in 
this section clarifies that it does not include biomass 
harvested from Federal lands that is derived from the main stem 
of old-growth trees. The definition of ``renewable biomass'' 
further clarifies that certain Indian lands are to be 
considered ``non-Federal lands'' for purposes of the definition 
even though held or administered by the United States.

                  SUBTITLE A--RENEWABLE FUELS STANDARD

Section 111. Renewable fuels standard

    Section 111 requires the President to promulgate 
regulations to ensure that renewable fuels are consumed for 
motor vehicles, home heating oil, and boiler fuels in amounts 
escalating from 8.5 billion gallons in 2008, to 36 billion 
gallons in 2022. It also requires that, of those amounts, 
advanced biofuels not derived from corn starch comprise volumes 
rising from 3 billion gallons in 2016, to 21 billion gallons in 
2022. This section further stipulates that the regulations 
issued under this section must ensure that biofuels facilities 
built after the date of enactment achieve at least a 20 percent 
reduction in life cycle greenhouse gas emissions, compared to 
gasoline. It also contains provisions related to participation 
by small refiners, opportunities for the President to waive the 
program requirements, and provisions for a fuel producer credit 
trading program.

Section 112. Production of renewable fuel using renewable energy

    Section 112 provides for the creation of a credit not to 
exceed the equivalent of 1.5 gallons, awarded under the trading 
program established pursuant to section 111, for facilities 
that use renewable energy to displace more than 90 percent of 
fossil fuel typically used in the production of renewable fuel.

               SUBTITLE B--RENEWABLE FUELS INFRASTRUCTURE

Section 121. Infrastructure pilot program for renewable fuels

    Section 121 directs the Secretary to establish up to 10 
geographically-dispersed renewable fuels corridors through 
competitive grants to state, local, tribal governments, 
metropolitan transportation authorities or partnerships, 
through the Department of Energy's Vehicle Technology 
Deployment Program.

Section 122. Bioenergy research and development

    Section 122 amends the Energy Policy Act of 2005 to 
increase funding authorizations for bioenergy research and 
development by 50 percent for fiscal years 2008 and 2009.

Section 123. Bioresearch centers for systems biology program

    Section 123 increases the number of bioresearch centers 
focused on biofuels to 11, to cover the range of climates, 
regions, and feedstocks in the United States.

Section 124. Loan guarantees for renewable fuel facilities

    Section 124 stipulates that the first six loan guarantees 
for advanced biofuels facilities can be made in advance of 
DOE's rulemaking to implement Title 17 of the Energy Policy Act 
of 2005. It requires the Secretary to approve or disapprove 
applications for these six applications in 90 days, and to 
provide written explanations of those decisions to Congress. 
This section also clarifies underlying provisions of the Energy 
Policy Act of 2005, with respect to loan guarantee 
implementation.

Section 125. Grants for renewable fuel production research and 
        development in certain States

    Section 125 directs the Secretary to provide grants for 
research in renewable fuels technologies to certain 
institutions of higher education, tribal or local government 
agencies, or consortiums of such organizations, in states with 
low rates of ethanol production. It authorizes $25 million for 
this purpose in each of fiscal years 2008 through 2010.

Section 126. Grants for infrastructure for transportation of biomass to 
        local biorefineries

    Section 126 directs the Secretary to provide grants to 
local governments, tribes and other entities to promote the 
development of infrastructure to support the transportation of 
biomass to local biorefineries.

Section 127. Biorefinery information center

    Section 127 directs the Secretary to cooperate with the 
Secretary of Agriculture to establish a biorefinery information 
center. The center must make available information on renewable 
fuel resources, producers, and users, programs and incentives 
related to biorefineries, through a website and call center.

Section 128. Alternative fuel database and materials

    Section 128 directs the Secretary and Director of the 
National Institute of Standards and Technology (NIST) to 
establish a public database and standard reference materials 
for physical properties of renewable fuels.

Section 129. Fuel tank cap labeling requirement

    Starting in model year 2010, section 129 requires labeling 
of fuel tank caps for alternative fuel vehicles to inform 
consumers the vehicles can operate on alternative fuels.

Section 130. Biodiesel

    Section 130 requires the Secretary to submit to Congress 
within 180 days a study identifying any research and 
development challenges associated with increasing to 5 percent 
the amount of biodiesel contained in diesel fuel sold in the 
U.S. It further requires the President to promulgate 
regulations establishing uniform labeling of biodiesel blends, 
consistent with published standards of the American Society for 
Testing and Materials (ASTM). This section also requires the 
President to issue regulations within 180 days of enactment, to 
ensure that only biodiesel certified in compliance with the 
ASTM 6751 standard is introduced into interstate commerce, and 
authorizes $3 million in each of fiscal years 2008 through 2010 
for these purposes.

                          SUBTITLE C--STUDIES

Section 141. Study of advanced biofuels technologies

    Section 141 directs the Secretary to contract with the 
National Academy of Sciences, to study the state of 
technologies related to the production, transportation and 
distribution of advanced biofuels; assess whether technological 
development will be sufficient to meet requirements of the 
renewable fuels standard established under section 111, and 
make policy recommendations appropriate to further accelerate 
the development and commercialization of those technologies.

Section. 142. Study of increased consumption of ethanol-blended 
        gasoline with higher levels of ethanol

    Section 142 directs the Secretary, in coordination with the 
Secretary of Agriculture, Administrator of the Environmental 
Protection Agency, and the Secretary of Transportation, to 
study the feasibility of nationwide consumption of ethanol at 
levels between E10 and E40.

Section 143. Pipeline feasibility study

    Section 143 directs the Secretary, in coordination with the 
Secretary of Agriculture and the Secretary of Transportation, 
to study the feasibility of dedicated ethanol pipelines.

Section 144. Study of optimization of alternative fueled vehicles to 
        use E-85 fuel

    Section 144 directs the Secretary to study optimization of 
alternative fueled vehicles, to reduce the efficiency loss 
those vehicles experience when fueled by E85.

Section 145. Study of credits for use of renewable electricity in 
        electric vehicles

    Section 145 directs the Secretary to study the feasibility 
of issuing credits under the program established in section 111 
to electric vehicles powered by renewable electricity sources.

Section 146. Study of engine durability associated with the use of 
        biodiesel

    Section 146 directs the Secretary to study the effects of 
varying concentrations of biodiesel blends on engine 
durability.

Section 147. Study of incentives for renewable fuels

    Section 147 directs the President to submit to Congress 
within one year a study of the renewable fuels industry and 
markets in the U.S., including costs for producing conventional 
and advanced biofuels; factors affecting market prices for 
biofuels; and financial incentives necessary to enhance the 
domestic biofuels industry and reduce dependence on foreign oil 
from 2011 through 2030.

Section 148. Study of streamlined lifecycle analysis tools for the 
        evaluation of renewable carbon content of biofuels

    Section 148 directs the Secretary to study published 
methods for evaluating lifecycle fossil and renewable carbon 
content of fuels, including conventional and advanced biofuels; 
and methods for performing simplified, streamlined lifecycle 
analyses of these factors.

Section 149. Study of the adequacy of railroad transportation of 
        domestically-produced renewable fuel

    Section 149 requires the Secretary, in consultation with 
the Secretary of Transportation, to conduct a study of the 
adequacy of railroad transportation for domestically-produced 
renewable fuels, including track locations, supply of tank 
cars, projected costs, impacts on marketability, competition, 
and related matters.

Section 150. Study on effects of ethanol-blended gasoline on off road 
        vehicles

    Section 150 requires the Secretary, in consultation with 
the Secretary of Transportation and Administrator of the 
Environmental Protection Agency, to study the effects of 
ethanol-blended gasoline on off-road vehicles and recreational 
boats.

                 TITLE II--ENERGY EFFICIENCY PROMOTION

Section 201. Short title

    Section 201 names title II the ``Energy Efficiency 
Promotion Act of 2007.''

          SUBTITLE A--PROMOTING ADVANCED LIGHTING TECHNOLOGIES

Section 211. Accelerated procurement of energy efficient lighting

    Section 211 requires all general purpose lighting in 
Federal buildings to be Energy Star-rated or designated as 
efficient by the Federal Energy Management Program by October 
1, 2013, pursuant to guidelines issued by the Secretary.

Section 212. Incandescent reflector lamp efficiency standards

    Section 212 expands the types of incandescent reflector 
lamps covered by efficiency standards that will be effective 
January 1, 2008.

Section 213. Bright Tomorrow Lighting Prizes

    Section 213 awards three prizes based on LED technology for 
(1) replacing the 60-watt incandescent ($10M), (2) the Type 38 
Halogen Parabolic Reflector ($5M) and (3) a ``twenty first 
century lamp,'' the performance and efficiency characteristics 
of which exceed any light source in current use ($5M). Upon 
achieving the prize metrics for replacing the 60-watt 
incandescent and the Type 38 Halogen Parabolic Reflector, the 
Secretary of Energy and the Administrator of the General 
Services Administration are directed to develop Federal 
purchase guidelines for government-wide purchase so that the 
U.S. Government becomes the first user of the technology.

Section 214. Sense of the Senate concerning efficient lighting 
        standards

    Section 214 expresses the Sense of the Senate that Federal 
policies to transform the U.S. market to more efficient 
lighting should be adopted.

Section 215. Renewable energy construction grants

    Section 215 authorizes grants for construction of certain 
renewable energy projects, requiring eligible applicants to 
contribute not less than 50 percent of total project costs.

         SUBTITLE B--EXPEDITING NEW ENERGY EFFICIENCY STANDARDS

Section 221. Definition of energy conservation standard

    Section 221 expands the definition of ``energy conservation 
standard'' to include one or more design requirements as part 
of a consensus agreement reached under section 224, and to 
include performance standards for water use for residential 
clothes washers and residential dishwashers.

Section 222. Regional efficiency standards for heating and cooling 
        products

    Section 222 authorizes a process by which the Secretary may 
make a determination that more stringent Federal efficiency 
standards for heating and cooling products are appropriate for 
up to two additional regions. If such a determination is made, 
a State within the region may petition to have the more-
stringent standard apply. This section requires the Secretary 
to make a decision within 180 days of a State petition. The 
petition may not be granted if the Secretary finds, after a 
comment process and consideration of factors, that the state 
regulation would significantly burden manufacturing, marketing, 
distribution, sale or servicing of a covered product on a 
national basis.

Section 223. Furnace fan rulemaking

    Section 223 requires the Secretary to publish a final 
furnace fan efficiency rule by December 31, 2014.

Section 224. Expedited rulemakings

    Section 224 allows the Secretary to conduct expedited 
energy conservation standard rulemakings if certain conditions 
are met--specifically, the filing of a joint comment or 
petition demonstrating broad support for a consensus standard, 
and Secretarial determination that the legal criteria for the 
standard have been met.

Section 225. Periodic reviews

    Section 225 establishes a schedule for Department of Energy 
review of energy conservation standards, to determine if the 
standards should be updated.

Section 226. Energy efficiency labeling for consumer products

    Section 226 directs the Federal Trade Commission, in 
consultation with the Secretary and Administrator of the 
Environmental Protection Agency, to promulgate regulations to 
add personal computers, computer monitors, televisions, set-top 
boxes and digital video recorder devices to the Energy Guide 
labeling program.

Section 227. Energy conservation standards for residential boilers

    Section 227 adopts a consensus agreement on minimum 
efficiency standards for residential gas, oil and electric 
boilers, effective September 1, 2012.

Section 228. Technical corrections

    Section 228 makes technical corrections to a number of 
definitions and effective dates.

Section 229. Electric motor efficiency standards

    Section 229 adopts a consensus agreement on new efficiency 
standards for three broad categories of electric motors, 
effective 36 months after enactment.

Section 230. Energy standards for home appliances

    Section 230 adopts a consensus agreement on new efficiency 
standards and water conservation standards for residential 
clothes washers and dishwashers; adopts a new standard for 
residential dehumidifiers; and mandates a final rule on 
efficiency standards for residential refrigerators and freezers 
by 2011.

Section 231. Improved energy efficiency for appliances and buildings in 
        cold climates

    Section 231 authorizes research on technologies to improve 
the energy efficiency of buildings and appliances in extremely 
cold climates and includes relevant energy efficient products 
in the rebates program created in section 124 of the Energy 
Policy Act of 2005.

Section 232. Deployment of new technologies for high-efficiency 
        consumer products

    Section 232 directs the Secretary to competitively award 
financial incentives for the manufacture of high-efficiency 
consumer products, based on bids for dollar/megawatt-hour or 
million Btus saved.

Section 233. Industrial efficiency program

    Section 233 directs the Secretary, in cooperation with 
materials manufacturers and energy-intensive industries, to 
establish a program that supports, develops and promotes the 
use of new materials manufacturing, industrial and commercial 
processes, technologies and techniques to optimize energy 
efficiency. It directs the Secretary to establish partnerships 
with eligible entities, to increase energy efficiency of 
industrial and commercial processes and facilities, research, 
develop and demonstrate advanced technologies to achieve these 
goals, and promote deployment of these technologies. It 
establishes requirements for entities submitting proposals to 
the Secretary under the program, and establishes cost-sharing 
requirements in accordance with section 988 of the Energy 
Policy Act of 2005. Funds are authorized for carrying out these 
purposes, in amounts beginning at $184 million in fiscal year 
2008, escalating to $208 million in fiscal year 2012 and 
including such sums as necessary in subsequent years.

SUBTITLE C--PROMOTING HIGH EFFICIENCY VEHICLES, ADVANCED BATTERIES AND 
                             ENERGY STORAGE

Section 241. Lightweight materials research

    Section 241 directs the Secretary to establish a research 
and development program on the use of lightweight materials 
such as advanced carbon composites and light-weight steel 
alloys, for use in the construction of vehicles. It authorizes 
$60 million for these purposes in each of fiscal years 2007 
through 2012.

Section 242. Loan guarantees for fuel-efficient automobile 
        manufacturers and suppliers

    Section 242 authorizes the Secretary to issue loan 
guarantees for facilities that manufacture parts for fuel-
efficient vehicles, including hybrid and advanced diesel 
vehicles, by amending sections 712 and 1703 of the Energy 
Policy Act of 2005.

Section 243. Advanced technology vehicles manufacturing incentive 
        program

    Section 243 authorizes awards for 30 percent of qualified 
investments for incremental costs incurred to re-equip, expand 
or establish a manufacturing facility to produce advanced 
technology vehicles (such as advanced diesels or electric drive 
vehicles), eligible components or any associated engineering 
costs. Advanced technology vehicles are defined as those that 
meet current and future emission standards established by the 
Administrator of the Environmental Protection Agency and 
achieve at least 125 percent of combined fuel economy for 
vehicles of a substantial similar footprint. Combined fuel 
economy is defined as the adjusted dynamometer values that must 
be displayed on window stickers, per 49 U.S.C. 32908, for 
standard vehicles; for electric drive vehicles that recharge 
from off-board supplied electricity, the mileage is adjusted to 
account for the reduced gasoline use, per 10 C.F.R. 474. 
Qualified facilities placed in service before December 30, 
2017, are eligible for awards under this section.

Section 244. Energy storage competitiveness

    Section 244 is titled the ``United States Energy Storage 
Competitiveness Act of 2007''. This section directs the 
Secretary to initiate a 10-year research, development and 
demonstration program to ensure U.S. competitiveness in global 
energy storage markets. An advisory panel of energy storage 
industry experts is to make recommendations on 5-year roadmaps 
for energy storage technologies applicable to the 
transportation and electric distribution sectors. Four 
competitively selected centers of excellence for energy storage 
are authorized. The Department of Energy's nanoscience centers 
are directed to have as part of their mission overcoming grand 
challenges associated with energy storage. For each of fiscal 
years 2008 through 2017, it authorizes $50 million in funding 
for basic research in these areas; $80 million for applied 
research and $100 million for the energy storage research 
center program initiated under this section.

Section 245. Advanced transportation technology program

    Section 245 directs the Secretary to establish a 
competitive program to provide grants for demonstrations of 
electric drive vehicles, placing priority on proposals that are 
most likely to lead to commercialization and production of 
electric drive vehicles and reduce petroleum usage. Electric 
drive vehicles are defined as light-, medium- or heavy-duty 
vehicles that draw power from batteries of at least 4 kilowatt-
hours and can be recharged from an external electricity source. 
States, local governments, metropolitan transportation 
authorities, air pollution control districts, private and non-
profit entities are eligible to submit proposals under this 
section. Grant recipients must comply with cost-sharing 
requirements of section 988 of the Energy Policy Act of 2005, 
and report to the Secretary on an annual basis data related to 
vehicle performance, lifecycle costs and emissions, including 
greenhouse gases. This section authorizes for these purposes 
$60 million for each of fiscal years 2008 through 2012, and 
establishes that not less than $20 million of annual funds 
should comprise grants to local and municipal government 
entities.
    This section also directs the Secretary to establish a 
near-term oil saving transportation deployment program. 
Competitive grants are authorized for: (1) any project that 
simultaneously reduces emissions of pollutants and greenhouse 
gas emissions, and reduces petroleum usage at least 40 percent 
compared to commercially available petroleum-based technologies 
used in non-road vehicles; and (2) oil-saving electrification 
projects involving on-road commercial trucks, rail 
transportation, ships, or any associated infrastructure. The 
cost-sharing requirements established under section 988 of the 
Energy Policy Act of 2005 are applied to grants made pursuant 
to this section, and $90 million is authorized to carry out its 
purposes for each of fiscal years 2008 through 2013.

              SUBTITLE D--SETTING ENERGY EFFICIENCY GOALS

Section 251. National goals for energy savings in transportation

    Section 251 establishes that it is the goal of the United 
States to reduce national gasoline usage 20 percent by 2017; 35 
percent by 2025; and 45 percent by 2030, relative to 
projections for usage in these years contained in the Energy 
Information Administration's Annual Energy Outlook 2007. It 
requires the Secretary, in cooperation with the Administrator 
of the Environmental Protection Agency and other relevant 
Federal agency heads to submit to Congress a strategic plan 
that establishes regulatory, funding and policy priorities to 
ensure compliance with the national goals within one year of 
enactment. The plan must be updated biennially.

Section 252. National energy efficiency improvement goals

    Section 252 establishes that it is the goal of the United 
States to achieve an improvement of the nation's overall energy 
productivity (measured as Gross Domestic Product per unit of 
energy input) of at least 2.5 percent by 2012, and each year 
thereafter through 2030. The Secretary, in cooperation with the 
Administrator of the Environmental Protection Agency and other 
relevant Federal agency heads, is required to submit to 
Congress a strategic plan that establishes regulatory, funding 
and policy priorities to ensure compliance with the national 
goals within one year of enactment. The plan must be updated 
biennially.

Section 253. National media campaign

    Section 253 directs the Secretary, acting through the 
Assistant Secretary for Energy Efficiency and Renewable Energy, 
to develop and conduct a four-year national media campaign to 
educate consumers about means to achieve energy savings and 
decrease oil consumption in the United States. This section 
authorizes $5 million to be appropriated for these purposes, in 
each of fiscal years 2008 through 2012, with no less than 50 
percent of these funds expended on efforts to educate the 
public about means to reduce oil consumption. It further 
requires that no less than 85 percent of annual funds be spent 
on advertising, rather than administrative functions, and 
mandates an annual report to Congress on the campaign's 
strategy, objectives and accomplishments.

Section 254. Modernization of Electricity Grid Systems

    Section 254 declares that it is the policy of the United 
States that developing and deploying advanced technology to 
modernize and improve the efficiency of the domestic 
electricity grid is essential to maintaining reliable and 
secure supply that can meet future demand growth. In addition, 
this section authorizes the Secretary, the Federal Energy 
Regulatory Commission and other Federal agencies as appropriate 
to carry out programs in support of the use, development, and 
demonstration of advanced transmission and distribution 
technologies, including real-time monitoring and analytical 
software, in order to achieve a number of purposes related to 
efficiency and the promotion of distributed generation and 
demand-side management technologies.

   SUBTITLE E--PROMOTING FEDERAL LEADERSHIP IN ENERGY EFFICIENCY AND 
                            RENEWABLE ENERGY

Section 261. Federal fleet conservation requirements

    Section 261 requires the Secretary to issue regulations for 
Federal covered by the Energy Policy Act of 1992, to reduce 
petroleum consumption 20 percent by October 1, 2015 and 
increase by 10 percent annually the consumption of alternative 
fuels. The regulations must measure each requirement against a 
fiscal year 2005 baseline, and mandate the purchase of energy-
efficient replacement tires for agency fleets to the maximum 
extent practicable, with exceptions provided for law 
enforcement, emergency vehicles, and vehicles that the 
Secretary of Defense certifies as exempt for national security 
reasons. The regulations mandated under this section must also 
direct each Federal agency to develop an implementation plan to 
achieve these requirements.
    This section further directs each Federal agency to 
actively promote incentive programs to reduce petroleum 
consumption through practices including the use of public 
transit, telecommuting, carpooling and bicycling, with 
monitoring and support by the Administrator of the General 
Services Administration, Director of the Office of Personnel 
Management and the Secretary. It also authorizes the Secretary 
to establish a program to recognize private sector employers, 
State and local governments for outstanding achievements in 
reducing petroleum consumption.
    Sums are authorized in the amount of $10 million for fiscal 
years 2008 through 2013 to carry out the requirements of this 
section.

Section 262. Federal requirement to purchase electricity generated by 
        renewable energy

    Section 262 amends the Federal renewable electricity 
purchase goal established in section 203 of the Energy Policy 
Act of 2005, to establish a binding requirement, to the extent 
feasible and technically practicable, for the purchase of 
electricity from renewable sources, equivalent to not less than 
10 percent by 2010, and 15 percent by 2015. The section 
requires the purchases to be made from facilities placed in 
service after January 1, 1999.
    Section 262 also applies the Federal renewable electricity 
purchase requirement to the Capitol Complex.
    Section 262 further provides the President authority to 
grant reductions or waivers of this section in any fiscal year, 
upon determinations that it would result in: negative impacts 
to military training or readiness of the Department of Defense; 
a negative impact on domestic preparedness activities conducted 
by the Department of Homeland Security; or negative impacts on 
a Federal agency's ability to provide emergency response 
services in the event of a natural disaster or terrorist 
attack.

Section 263. Energy savings performance contracts

    Section 263 permanently authorizes the energy savings 
performance contract (ESPC) program. It clarifies that Federal 
agencies may retain 100 percent of the guaranteed savings under 
an ESPC, and expands the definition of energy savings to 
include those derived from on-site renewable energy generation. 
This section also expands financing flexibility for Federal 
agencies to reduce costs, and requires a study of opportunities 
to use ESPCs for transportation energy savings and other non-
building applications. It also requires that the Secretary and 
Secretary of Defense jointly conduct and submit to Congress and 
the President a study of the potential for ESPCs to reduce 
energy consumption and provide cost savings in non-building 
applications.

Section 264. Energy management requirements for Federal buildings

    Section 264 amends section 543 of the National Energy 
Conservation Policy Act, to require a 30 percent reduction in 
energy consumption in existing Federal buildings by 2015.

Section 265. Combined heat and power and district energy installation 
        at Federal sites

    Section 265 amends section 543 of the National Energy 
Conservation Policy Act, to require the identification of 
Federal sites that could achieve significant energy savings 
through the installation of combined heat and power or district 
energy systems. It directs the Secretary, in consultation with 
the Administrator of the General Services Administration and 
the Secretary of Defense, to complete this assessment not later 
than 18 months after enactment. It allows efficiency achieved 
through installations of combined heat and power or district 
energy systems to be counted towards requirements established 
in section 264 of this Act.

Section 266. Federal building performance standards

    Section 266 requires new Federal buildings to reduce fossil 
fuel energy consumption, to eliminate it entirely by 2030. It 
mandates that Federal buildings, to the maximum extent 
economically feasible and technically practicable, be designed 
to reduce fossil fuel-generated energy consumption relative to 
a fiscal year 2003 baseline, in amounts starting at 50 percent 
in fiscal year 2007, 60 percent in 2010, with a 10 percent 
increase in savings every five years thereafter, until it is 
entirely eliminated.

Section 267. Application of international energy conservation code to 
        public and assisted housing

    Section 267 applies updated energy conservation codes to 
public and assisted housing administered by the Department of 
Housing and Urban Development.

Section 268. Energy Efficient Commercial Buildings Initiative

    Section 268 directs the Secretary to enter into an 
agreement with a consortium of eligible stakeholders, to 
undertake an initiative to reduce the quantity of energy 
consumed by U.S. commercial buildings. This section establishes 
as goals of this initiative increased numbers of energy 
efficient commercial buildings in the U.S., including all 
newly-constructed buildings by 2030; 50 percent of the entire 
U.S. commercial building stock by 2040; and all commercial 
buildings by 2050.
    To carry out the initiative, this section authorizes the 
Secretary, in collaboration with the consortium, to conduct: 
research and development on building design, materials and 
related energy efficient practices; demonstration projects to 
evaluate replicable approaches to energy savings in a variety 
of climates; deployment activities to encourage widespread 
adoption of efficient technologies and practices; and other 
activities necessary to achieve the goals of the initiative 
authorized under this section.

 SUBTITLE F--ASSISTING STATE AND LOCAL GOVERNMENTS IN ENERGY EFFICIENCY

Section 271. Weatherization assistance for low-income persons

    Section 271 reauthorizes the Federal Weatherization 
Assistance program through fiscal year 2012, and increases 
funding levels by $50 million per year, to $750 million for 
fiscal years 2008 through 2012.

Section 272. State energy conservation plans

    Section 272 reauthorizes the state energy program through 
fiscal year 2012.

Section 273. Utility energy efficiency programs

    Section 273 amends the Public Utility Regulatory Policies 
Act (PURPA) of 1978, to require each electric utility to 
integrate energy efficiency into utility, state and regional 
integrated resource plans, and adopt policies to establish 
cost-effective efficiency as a priority resource.
    It further amends PURPA to establish that rates allowed to 
be charged by any electric or natural gas utility must align 
utility incentives with the delivery of cost-effective 
efficiency, and promote investments in efficiency. It requires 
State utility regulatory commissions and non-regulated 
utilities to consider: removing disincentives to efficiency 
inherent in some existing rate designs; providing utility 
incentives for effective management of efficiency programs, 
including the impact of adopting energy efficiency as one of 
the goals of rate design; and encouraging rate designs that 
promote efficiency gains for each class of retail customer.

Section 274. Energy efficiency and demand response assistance

    Section 274 directs the Secretary, through the national 
laboratories, to provide technical assistance to State energy 
offices, public utility regulatory commissions and non-
regulated utilities, with respect to implementation of energy 
efficiency and demand response programs established or updated 
under amendments to this title.

Section 275. Energy and environmental block grant

    Section 275 authorizes block grants to States, eligible 
units of local governments and Indian tribes, for purposes of 
implementing energy efficiency programs. It directs the 
Secretary to develop formulae to distribute block grant funding 
to eligible units of local government and States, and places 
requirements on the use of funds distributed under the program.

Section 276. Energy sustainability and efficiency grants for 
        institutions of higher learning

    Section 276 authorizes grants to institutions of higher 
learning for energy efficiency and renewable energy 
demonstration projects.

Section 277. Workforce training

    Section 277 authorizes a program to provide workforce 
training to meet the demand for skilled workers in the energy 
efficiency and renewable energy industries.

Section 278. Assistance to states to reduce school bus idling

    Section 278 encourages local educational agencies to 
develop a policy to reduce the incidence of school bus idling. 
This section authorizes $5 million in funding for each of 
fiscal years 2007 through 2012 for the Secretary of Energy to 
work with the Secretary of Education to inform States and local 
educational agencies of ways to reduce bus idling and the 
attendant benefits.

   TITLE III--CARBON CAPTURE AND STORAGE RESEARCH, DEVELOPMENT, AND 
                             DEMONSTRATION

Section 301. Short title

    Section 301 names title III the ``Carbon Capture and 
Sequestration Act of 2007''.

Section 302. Carbon Capture and Storage Research, Development, and 
        Demonstration Program

    Section 302 amends section 963 of the Energy Policy Act of 
2005, to expand and improve the Department of Energy's existing 
carbon capture and storage research and development program. 
This section directs the Secretary to conduct carbon 
sequestration demonstration projects, with an emphasis on 
large-scale geologic carbon dioxide injection. It also requires 
the Secretary to conduct fundamental science and engineering 
research in order to document new approaches to carbon dioxide 
capture and storage. It further expands the Department's 
existing program emphasis beyond combustion-based systems, to 
assess carbon capture technologies related to a wider array of 
energy systems, including refineries, chemical and biofuels 
plants. The Secretary is further directed under this section to 
promote regional partnerships and must conduct at least seven 
large-scale sequestration tests, including one in cooperation 
with an international partner.

Section 303. Carbon dioxide storage capacity assessment

    Section 303 directs the Secretary of Interior to develop a 
methodology for conducting a national assessment of geological 
storage capacity for carbon dioxide within 270 days, and 
requires completion of the assessment within 2 years of the 
methodology's publication.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time this report was filed. When the Congressional Budget 
Office completes its cost estimate, it will be posted on the 
Internet at www.cbo.gov and the Chairman will request that it 
be printed in the Congressional Record for the advice of the 
Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out the legislation.
    The bill establishes a renewable fuel content standard on 
fuel refineries, blenders, distributors, and importers. It also 
establishes energy efficiency standards on manufacturers of 
certain types of lighting, heating and cooling equipment, 
electric motors, and consumer appliances. There may be some 
economic costs associated with certain of these requirements, 
though these costs may be offset in whole or in part by 
reducing energy consumption and our dependence on foreign oil.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Implementation of the renewable fuel standard involves the 
operation of a credit program, which may require fuel 
refineries, blenders, distributors, and importers to keep 
records and report information to the government. The bill 
directs the President to implement the credit program in a 
manner consistent with the existing program set up under the 
Energy Policy Act of 2005, and thus should not result in 
significant additional paperwork requirements. The bill 
requires federal agencies and, in one case, state public 
utility commissions, to conduct various studies or make various 
reports, and will require the reporting of certain information 
associated with grant and financial assistance programs. 
Little, if any, additional paperwork burdens on private 
industry or individuals should result from the enactment of the 
measure.

                        Executive Communications

    Executive communications on the original bill have not been 
received.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as ordered reported, are shown as follows (existing 
law proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

       TABLE OF CONTENTS OF EXISTING LAWS PROPOSED TO BE CHANGED

    1. Energy Policy and Conservation Act, Public Law 94-63, as 
amended (42 U.S.C. 6201 et seq.)
    2. Energy Conservation and Production Act, Public Law 94-
385, as amended (42 U.S.C. 6801 et seq.)
    3. Public Utility Regulatory Policies Act of 1978, Public 
Law 95-617, as amended (16 U.S.C. 2601 et seq.)
    4. National Energy Conservation Policy Act, Public Law 95-
619, as amended (42 U.S.C. 8201 et seq.)
    5. Cranston-Gonzalez National Affordable Housing Act, 
Public Law 101-626, as amended (42 U.S.C. 12701 et seq.)
    6. Energy Policy Act of 1992, Public Law 102-486, as 
amended (42 U.S.C. 13211 et seq.)
    7. Energy Policy Act of 2005, Public Law 109-58 (42 U.S.C. 
15801 et seq.)
    8. Title 10, United States Code

                   ENERGY POLICY AND CONSERVATION ACT

Public Law 94-63, as Amended (42 U.S.C. 6201 et seq.)

           *       *       *       *       *       *       *

                            TABLE OF CONTENTS

     * * * * * * *

                 TITLE III--IMPROVING ENERGY EFFICIENCY

     * * * * * * *

            PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS

Sec. 400AA. Alternative fuel use by light duty Federal vehicles.
Sec. 400BB. Alternative fuels truck commercial application program.
Sec. 400CC. Alternative fuels bus program.
Sec. 400DD. Interagency Commission on Alternative Motor Fuels.
Sec. 400EE. Studies and reports.
Sec. 400FF. Federal fleet conservation requirements.

                 TITLE III--IMPROVING ENERGY EFFICIENCY

 PART B--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS OTHER THAN 
                              AUTOMOBILES

                              DEFINITIONS

    Sec. 321. For purposes of this part:

           *       *       *       *       *       *       *

    [(6) The term ``energy conservation standard'' means--
          [(A) a performance standard which prescribes a 
        minimum level of energy efficiency or a maximum 
        quantity of energy use, or, in the case of showerheads, 
        faucets, water closets, and urinals, water use, for a 
        covered product, determined in accordance with test 
        procedures prescribed under section 323; or
          [(B) a design requirement for the products specified 
        in paragraphs (6), (7), (8), (10), (15), (16), (17), 
        and (19) of section 322(a); and includes any other 
        requirements which the Secretary may prescribe under 
        section 325(r).]
    (6) The term ``energy conservation standard'' means--
          (A) a performance standard which prescribes a minimum 
        level of energy efficiency or a maximum quantity of 
        energy use, and, in the case of residential clothes 
        washers, residential dishwashers, showerheads, faucets, 
        water closets, and urinals, water use, for a covered 
        product, determined in accordance with test procedures 
        prescribed under section 323; or
          (B) a design requirement for the products specified 
        in paragraphs (6), (7), (8), (10), (15), (16), (17), 
        and (19) of section 322(a); and includes 1 or more 
        design requirements, as part of a consensus agreement 
        under section 325 (hh); and any other requirements 
        which the Secretary may prescribe under section 325(r).

           *       *       *       *       *       *       *

    (30)(A) Except as provided in subparagraph (E), the term 
``fluorescent lamp'' means a low pressure mercury electric-
discharge source in which a fluorescing coating transforms some 
of the ultraviolet energy generated by the mercury discharge 
into light, including only the following:

           *       *       *       *       *       *       *

    (B) The term ``general service fluorescent lamp'' means 
fluorescent lamps which can be used to satisfy the majority of 
fluorescent applications, but does not include any lamp 
designed and marketed for the following nongeneral lighting 
applications:
          (i) Fluorescent lamps designed to promote plant 
        growth.
          (ii) Fluorescent lamps specifically designed for cold 
        temperature installations.
          (iii) Colored fluorescent lamps.
          (iv) Impact-resistant fluorescent lamps.
          (v) Reflectorized or aperture lamps.
          (vi) Fluorescent lamps designed for use in 
        reprographic equipment.
          (vii) Lamps primarily designed to produce radiation 
        in the ultra-violet region of the spectrum.
          (viii) Lamps with a color rendering index of [82] 87 
        or greater.
    (C) Except as provided in subparagraph (E), the term 
``incandescent lamp'' means a lamp in which light is produced 
by a filament heated to incandescence by an electric current, 
including only the following:
          (i) Any lamp (commonly referred to as lower wattage 
        nonreflector general service lamps, including any 
        tungsten-halogen lamp) that has a rated wattage between 
        30 and 199 watts, has an E26 medium screw base, has a 
        rated voltage or voltage range that lies at least 
        partially within 115 and 130 volts, and is not a 
        reflector lamp.
          (ii) Any lamp (commonly referred to as a reflector 
        lamp) which is not colored or designed for rough or 
        vibration service applications, that contains an inner 
        reflective coating on the outer bulb to direct the 
        light, an R, PAR, [or similar bulb shapes (excluding ER 
        or BR)] ER,BR,BPAR, or similar bulb shapes with E26 
        medium screw bases, a rated voltage or voltage range 
        that lies at least partially within 115 and 130 volts, 
        a diameter which exceeds [2.75] 2.25 inches, and [is 
        either--
                  (I) a low(er) wattage reflector lamp which 
                has a rated wattage between 40 and 205 watts; 
                or
                  (II) a high(er) wattage reflector lamp which 
                has a rated wattage above 205 watts] has a 
                rated wattage that is 40 watts or higher.
          (iii) Any general service incandescent lamp (commonly 
        referred to as a high- or higher-wattage lamp) that has 
        a rated wattage above 199 watts (above 205 watts for a 
        high wattage reflector lamp).

           *       *       *       *       *       *       *

    (46)(A) The term ``high intensity discharge lamp'' means an 
electric-discharge lamp in which--
          (i) the light-producing arc is stabilized by [bulb] 
        the arc tube wall temperature; and
          (ii) the arc tube [has a bulb] wall loading is in 
        excess of 3 Watts/cm2.
    (B) The term ``high intensity discharge lamp'' includes 
mercury vapor, metal halide, and high-pressure sodium lamps 
described in subparagraph (A).
    (47)(A) 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 [operating at a 
partial] typically operating at a partial vapor pressure in 
excess of 100,000 Pa (approximately 1 atm).
    (B) The term ``mercury vapor lamp'' includes clear, 
phosphor-coated, and self- ballasted lamps described in 
subparagraph (A).
    (48) 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.

           *       *       *       *       *       *       *

    (51) The term ``medium screw base'' means an Edison screw 
base identified with the prefix E 0926 in the ``American 
National Standard for Electric Lamp Bases'', ANSI/IEC C81.61 
092003, published by the American National Standards Institute.
    (52) 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.
    (53) 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.
    (54) 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.
    (55) 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.
    (56) The term ``specialty application mercury vapor lamp 
ballast'' means a mercury vapor lamp ballast that--
          (A) is designed and marketed for medical use, optical 
        comparators, quality inspection, industrial processing, 
        or scientific use, including fluorescent microscopy, 
        ultraviolet curing, and the manufacture of microchips, 
        liquid crystal displays, and printed circuit boards; 
        and
          (B) in the case of a specialty application mercury 
        vapor lamp ballast, is labeled as a specialty 
        application mercury vapor lamp ballast.

           *       *       *       *       *       *       *

                            TEST PROCEDURES

    Sec. 323. (a) General Rule.--All test procedures and 
related determinations prescribed or made by the Secretary with 
respect to any covered product (or class thereof) which are in 
effect on the date of enactment of the National Appliance 
Energy Conservation Act of 1987 shall remain in effect until 
the Secretary amends such test procedures and related 
determinations under subsection (b).
    (b) Amended and New Procedures.--[(1)(A) The Secretary may 
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).]
    (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.

           *       *       *       *       *       *       *

                          ENERGY STAR PROGRAM

    Sec. 324A. (a) In General.--There is established within the 
Department of Energy and the Environmental Protection Agency a 
voluntary program to identify and promote energy-efficient 
products and buildings in order to reduce energy consumption, 
improve energy security, and reduce pollution through voluntary 
labeling of, or other forms of communication about, products 
and buildings that meet the highest energy conservation 
standards.

           *       *       *       *       *       *       *

    (d) Deadlines.--The Secretary shall establish new 
qualifying levels--
          (1) not later than January 1, 2006, for clothes 
        washers and dishwashers, effective beginning January 1, 
        2007; and
          (2) not later than January 1, 2008, for clothes 
        washers, effective beginning January 1, [2010] 2009.

                     ENERGY CONSERVATION STANDARDS

    Sec. 325. (a) Purposes.--The purposes of this section are 
to--
          (1) provide Federal energy conservation standards 
        applicable to covered products; and
          (2) authorize the Secretary to prescribe amended or 
        new energy conservation standards for each type (or 
        class) of covered product.
    (b) Standards for Refrigerators, Refrigerator-Freezers, and 
Freezers.--(1) The following is the maximum energy use allowed 
in kilowatt hours per year for the following products (other 
than those described in paragraph (2)) manufactured on or after 
January 1, 1990:

           *       *       *       *       *       *       *

          (4) Refrigerators, refrigerator-freezers, and 
        freezers manufactured on or after january 1, 2014.--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, and including any amended standards.

           *       *       *       *       *       *       *

    (f) Standards for Furnaces.--

           *       *       *       *       *       *       *

          (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
         Boiler type            utilization efficiency        Design
                                      (percent)            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) Pilots.--The manufacturer shall not equip 
                gas hot water or steam boilers with constant-
                burning pilot lights.
                  (C) 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 tankless domestic water 
                        heating coils) with an 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) Certain boilers.--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 clauses 
                        (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.
        [(3)] (4) (A) The Secretary shall publish a final rule 
        no later than January 1, 1992, to determine whether the 
        standards established by paragraph (2) for mobile home 
        furnaces should be amended. Such rule shall provide 
        that any amendment shall apply to products manufactured 
        on or after January 1, 1994.

           *       *       *       *       *       *       *

          (D) Notwithstanding any other provision of this Act, 
        if the requirements of subsection (o) are met, the 
        Secretary may consider and prescribe energy 
        conservation standards or energy use standards for 
        electricity used for purposes of circulating air 
        through duct work.
          (E) Final rule.--
                  (i) In general.--The Secretary shall publish 
                a final rule to carry out this subsection not 
                later than December 31, 2014.
                  (ii) Criteria.--The standards shall meet the 
                criteria established under subsection (o).

           *       *       *       *       *       *       *

    (g) Standards for Dishwashers; Clothes Washers; Clothes 
Dryers; Fluorescent Lamp Ballasts.--

           *       *       *       *       *       *       *

          (4)(A) The Secretary shall publish final rules no 
        later than January 1, 1990, to determine if the 
        standards established under this subsection for 
        products described in paragraphs (1), (2), and (3) 
        should be amended. Such rules shall provide that any 
        amendment shall apply to products the manufacture of 
        which is completed on or after January 1, 1993.

           *       *       *       *       *       *       *

          (D) Clothes washers.--
                  (i) Clothes washers manufactured on or after 
                january 1, 2011.--A 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.
                  (ii) Clothes washers manufactured on or after 
                january 1, 2012.--Not later than January 1, 
                2012, the Secretary shall publish a final rule 
                determining whether to amend the standards in 
                effect for residential clothes washers 
                manufactured on or after January 1, 2012, and 
                including any amended standards.
          (E) Dishwashers.--
                  (i) Dishwashers manufactured on or after 
                january 1, 2010.--A dishwasher manufactured on 
                or after January 1, 2010, shall use not more 
                than--
                          (I) in the case of a standard-size 
                        dishwasher, 355 kWh per year or 6.5 
                        gallons of water per cycle; and
                          (II) in the case of a compact-size 
                        dishwasher, 260 kWh per year or 4.5 
                        gallons of water per cycle.
                  (ii) Dishwashers manufactured on or after 
                january 1, 2018.--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, and including any amended standards.

           *       *       *       *       *       *       *

    (i) General Service Fluorescent Lamps and Incandescent 
Reflector Lamps.--[(1)(A) Each of the following general service 
fluorescent lamps and incandescent reflector lamps manufactured 
after the effective date specified in the tables listed in this 
paragraph shall meet or exceed the following lamp efficacy and 
CRI standards:

                           [FLUORESCENT LAMPS
------------------------------------------------------------------------
                                                     Minimum
                               Nominal               average   Effective
          Lamp type              lamp     Minimum      lamp       date
                               wattage      CRI      efficacy   (months)
                                                      (LPW)
------------------------------------------------------------------------
4-foot medium bi-pin........       >35W         69       75.0         36
                                    35W         45       75.0         36
2-foot U-shaped.............       >35W         69       68.0         36
                                    35W         45       64.0         36
8-foot slimline.............       >65W         69       80.0         18
                                    65W         45       80.0         18
8-foot high output..........      >100W         69       80.0         18
                                   100W         45       80.0         18
------------------------------------------------------------------------

                      [INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
                                                     Minimum
                                                     average   Effective
               Nominal lamp wattage                    lamp       date
                                                     efficacy   (months)
                                                      (LPW)
------------------------------------------------------------------------
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]
------------------------------------------------------------------------

    [(B) For the purposes of the tables set forth in 
subparagraph (A), the term ``effective date'' means the last 
day of the month set forth in the table which follows the date 
of the enactment of the Energy Policy Act of 1992.]
    (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
----------------------------------------------------------------------------------------------------------------
                                                                                          Minimum
                                                                Nominal                   average     Effective
                          Lamp type                               lamp     Minimum CRI      lamp         date
                                                                wattage                   efficacy    (Period of
                                                                                           (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
                                                                      35W           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
------------------------------------------------------------------------
                                                  Minimum
                                                  average     Effective
             Nominal lamp wattage                   lamp         date
                                                  efficacy    (Period of
                                                   (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 January 1, 2008.

           *       *       *       *       *       *       *

    [(m) Further Rulemaking.--After issuance of the last final 
rules required under subsections (b) through (i) of this 
section, the Secretary may publish final rules to determine 
whether standards for a covered product should be amended. An 
amendment prescribed under this subsection shall apply to 
products manufactured after a date which is 5 years after--
                  [(A) the effective date of the previous 
                amendment made pursuant to this part; or
                  [(B) if the previous final rule published 
                under this part did not amend the standard, the 
                earliest date by which a previous amendment 
                could have been in effect, except that in no 
                case may an amended standard apply to products 
                manufactured within 3 years (for refrigerators, 
                refrigerator-freezers, and freezers, room air 
                conditioners, dishwashers, clothes washers, 
                clothes dryers, fluorescent lamp ballasts, and 
                kitchen ranges and ovens) or 5 years (for 
                central air conditioners and heat pumps, water 
                heaters, pool heaters, direct heating equipment 
                and furnaces) after publication of the final 
                rule establishing a standard.]
    (m) Further Rulemaking.--
          (1) In general.--After issuance of the last final 
        rules required for a product under this part, the 
        Secretary shall, not later than 5 years after the date 
        of issuance of a final rule establishing or amending a 
        standard or determining not to amend a standard, 
        publish a final rule to determine whether standards for 
        the product should be amended based on the criteria 
        described in subsection (n)(2).
          (2) Analysis.--Prior to publication of the 
        determination, the Secretary shall publish a notice of 
        availability describing the analysis of the Department 
        and provide opportunity for written comment.
          (3) Final rule.--Not later than 3 years after a 
        positive determination under paragraph (1), the 
        Secretary shall publish a final rule amending the 
        standard for the product.
          (4) Application of amendment.--An amendment 
        prescribed under this subsection shall apply to a 
        product manufactured after a date that is 5 years 
        after--
                  (A) the effective date of the previous 
                amendment made pursuant to this part; or
                  (B) if the previous final rule published 
                under this part did not amend the standard, the 
                earliest date by which a previous amendment 
                could have been in effect, except that in no 
                case may an amended standard apply to products 
                manufactured within 3 years after publication 
                of the final rule establishing a standard.

           *       *       *       *       *       *       *

    (cc) Dehumidifiers.--(1) Dehumidifiers manufactured on or 
after October 1, 2007 and before October 1, 2012, shall have an 
Energy Factor that meets or exceeds the following values:
        Product capacity (pints/day): Minimum energy factor (Liters/kWh)
25.00 or less...........................................            1.00
25.01-35.00.............................................            1.20
35.01-54.00.............................................            1.30
54.01-74.99.............................................            1.50
75.00 or more...........................................           2.25.

    [(2)(A) Not later than October 1, 2009, the Secretary shall 
publish a final rule in accordance with subsections (o) and 
(p), to determine whether the energy conservation standards 
established under paragraph (1) should be amended.
    [(B) The final rule published under subparagraph (A) 
shall--
          [(i) contain any amendment by the Secretary; and
          [(ii) provide that the amendment applies to products 
        manufactured on or after October 1, 2012.]
    (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.''

    (hh) Expedited Rulemaking for Consensus Standards.--
          (1) In general.--The Secretary shall conduct an 
        expedited rulemaking based on an energy conservation 
        standard or test procedure recommended by interested 
        persons, if--
                  (A) the interested persons (demonstrating 
                significant and broad support from 
                manufacturers of a covered product, States, 
                utilities, and environmental, energy 
                efficiency, and consumer advocates) submit a 
                joint comment or petition recommending a 
                consensus energy conservation standard or test 
                procedure; and
                  (B) the Secretary determines that the joint 
                comment or petition includes evidence that 
                (assuming no other evidence were considered) 
                provides an adequate basis for determining that 
                the proposed consensus energy conservation 
                standard or test procedure proposed in the 
                joint comment or petition complies with the 
                provisions and criteria of this Act (including 
                subsection (o)) that apply to the type or class 
                of covered products covered by the joint 
                comment or petition.
          (2) Procedure.--
                  (A) In general.--Notwithstanding subsection 
                (p) or section 336(a), if the Secretary 
                receives a joint comment or petition that meets 
                the criteria described in paragraph (1), the 
                Secretary shall conduct an expedited rulemaking 
                with respect to the standard or test procedure 
                proposed in the joint comment or petition in 
                accordance with this paragraph.
                  (B) Advanced notice of proposed rulemaking.--
                If no advanced notice of proposed rulemaking 
                has been issued under subsection (p)(1) with 
                respect to the rulemaking covered by the joint 
                comment or petition, the requirements of 
                subsection (p) with respect to the issuance of 
                an advanced notice of proposed rulemaking shall 
                not apply.
                  (C) Publication of determination.--Not later 
                than 60 days after receipt of a joint comment 
                or petition described in paragraph (1)(A), the 
                Secretary shall publish a description of a 
                determination as to whether the proposed 
                standard or test procedure covered by the joint 
                comment or petition meets the criteria 
                described in paragraph (1).
                  (D) Proposed rule.--
                          (i) Publication.--If the Secretary 
                        determines that the proposed consensus 
                        standard or test procedure covered by 
                        the joint comment or petition meets the 
                        criteria described in paragraph (1), 
                        not later than 30 days after the 
                        determination, the Secretary shall 
                        publish a proposed rule proposing the 
                        consensus standard or test procedure 
                        covered by the joint comment or 
                        petition.
                          (ii) Public comment period.--
                        Notwithstanding paragraphs (2) and (3) 
                        of subsection (p), the public comment 
                        period for the proposed rule shall be 
                        the 30-day period beginning on the date 
                        of the publication of the proposed rule 
                        in the Federal Register.
                          (iii) Public hearing.--
                        Notwithstanding section 336(a), the 
                        Secretary may waive the holding of a 
                        public hearing with respect to the 
                        proposed rule.
                  (E) Final rule.--Notwithstanding subsection 
                (p)(4), the Secretary--
                          (i) may publish a final rule at any 
                        time after the 60-day period beginning 
                        on the date of publication of the 
                        proposed rule in the Federal Register; 
                        and
                          (ii) shall publish a final rule not 
                        later than 120 days after the date of 
                        publication of the proposed rule in the 
                        Federal Register.

           *       *       *       *       *       *       *

    Sec. 327. (a) Preemption of Testing and Labeling 
Requirements.

           *       *       *       *       *       *       *

    (b) General Rule of Preemption for Energy Conservtion 
Standards Before Federal Standard Becomes Effective for a 
Product.--

           *       *       *       *       *       *       *

          (2) is a State procurement regulation described in 
        [subsection (e)] subsection (f);
          (3) is a regulation described in [subsection (f)(1)] 
        subsection (g)(1) or is prescribed or enacted in a 
        building code for new construction described in 
        [subsection (f)(2)] subsection (g)(2);

           *       *       *       *       *       *       *

    (c) General Rule of Preemption for Energy Conservation 
Standards When Federal Standard Becomes Effective for a 
Product.--

           *       *       *       *       *       *       *

          (3) is in a building code for new construction 
        described in subsection [(f)(3)] (g)(3);

           *       *       *       *       *       *       *

    (e) Regional Efficiency Standards for Heating and Cooling 
Products.--
          (1) In General.--
                  (A) Determination.--The Secretary may 
                determine, after notice and comment, that more 
                stringent Federal energy conservation standards 
                are appropriate for furnaces, boilers, or 
                central air conditioning equipment than 
                applicable Federal energy conservation 
                standards.
                  (B) Finding.--The Secretary may determine 
                that more stringent standards are appropriate 
                for up to 2 different regions only after 
                finding that the regional standards--
                          (i) would contribute to energy 
                        savings that are substantially greater 
                        than that of a single national energy 
                        standard; and
                          (ii) are economically justified.
                  (C) Regions.--On making a determination 
                described in subparagraph (B), the Secretary 
                shall establish the regions so that the more 
                stringent standards would achieve the maximum 
                level of energy savings that is technologically 
                feasible and economically justified.
                  (D) Factors.--In determining the 
                appropriateness of 1 or more regional standards 
                for furnaces, boilers, and central and 
                commercial air conditioning equipment, the 
                Secretary shall consider all of the factors 
                described in paragraphs (1) through (4) of 
                section 325(o).
          (2) State petition.--After a determination made by 
        the Secretary under paragraph (1), a State may petition 
        the Secretary requesting a rule that a State regulation 
        that establishes a standard for furnaces, boilers, or 
        central air conditioners become effective at a level 
        determined by the Secretary to be appropriate for the 
        region that includes the State.
          (3) Rule.--Subject to paragraphs (4) through (7), the 
        Secretary may issue the rule during the period 
        described in paragraph (4) and after consideration of 
        the petition and the comments of interested persons.
          (4) Procedure.--
                  (A) Notice.--The Secretary shall provide 
                notice of any petition filed under paragraph 
                (2) and afford interested persons a reasonable 
                opportunity to make written comments, including 
                rebuttal comments, on the petition.
                  (B) Decision.--Except as provided in 
                subparagraph (C), during the 180-day period 
                beginning on the date on which the petition is 
                filed, the Secretary shall issue the requested 
                rule or deny the petition.
                  (C) Extension.--The Secretary may publish in 
                the Federal Register a notice--
                          (i) extending the period to a 
                        specified date, but not longer than 1 
                        year after the date on which the 
                        petition is filed; and
                          (ii) describing the reasons for the 
                        delay.
                  (D) Denials.--If the Secretary denies a 
                petition under this subsection, the Secretary 
                shall publish in the Federal Register notice 
                of, and the reasons for, the denial.
          (5) Finding of significant burden on manufacturing, 
        marketing, distribution, sale, or servicing of covered 
        product on national basis.--
                  (A) In general.--The Secretary may not issue 
                a rule under this subsection if the Secretary 
                finds (and publishes the finding) that 
                interested persons have established, by a 
                preponderance of the evidence, that the State 
                regulation will significantly burden 
                manufacturing, marketing, distribution, sale, 
                or servicing of a covered product on a national 
                basis.
                  (B) Factors.--In determining whether to make 
                a finding described in subparagraph (A), the 
                Secretary shall evaluate all relevant factors, 
                including--
                          (i) the extent to which the State 
                        regulation will increase manufacturing 
                        or distribution costs of manufacturers, 
                        distributors, and others;
                          (ii) the extent to which the State 
                        regulation will disadvantage smaller 
                        manufacturers, distributors, or dealers 
                        or lessen competition in the sale of 
                        the covered product in the State; and
                          (iii) the extent to which the State 
                        regulation would cause a burden to 
                        manufacturers to redesign and produce 
                        the covered product type (or class), 
                        taking into consideration the extent to 
                        which the regulation would result in a 
                        reduction--
                                  (I) in the current models, or 
                                in the projected availability 
                                of models, that could be 
                                shipped on the effective date 
                                of the regulation to the State 
                                and within the United States; 
                                or
                                  (II) in the current or 
                                projected sales volume of the 
                                covered product type (or class) 
                                in the State and the United 
                                States.
          (6) Application.--No State regulation shall become 
        effective under this subsection with respect to any 
        covered product manufactured before the date specified 
        in the determination made by the Secretary under 
        paragraph (1).
          (7) Petition to withdraw federal rule following 
        amendment of federal standard.--
                  (A) In general.--If a State has issued a rule 
                under paragraph (3) with respect to a covered 
                product and subsequently a Federal energy 
                conservation standard concerning the product is 
                amended pursuant to section 325, any person 
                subject to the State regulation may file a 
                petition with the Secretary requesting the 
                Secretary to withdraw the rule issued under 
                paragraph (3) with respect to the product in 
                the State.
                  (B) Burden of proof.--The Secretary shall 
                consider the petition in accordance with 
                paragraph (5) and the burden shall be on the 
                petitioner to show by a preponderance of the 
                evidence that the rule received by the State 
                under paragraph (3) should be withdrawn as a 
                result of the amendment to the Federal 
                standard.
                  (C) Withdrawal.--If the Secretary determines 
                that the petitioner has shown that the rule 
                issued by the Secretary under paragraph (3) 
                should be withdrawn in accordance with 
                subparagraph (B), the Secretary shall withdraw 
                the rule.
    [(e)] (f) Exception for Certain State Procurement 
Standards.--Any State regulation which sets forth procurement 
standards for a State (or political subdivision thereof) shall 
not be superseded by the provisions of this part if such 
standards are more stringent than the corresponding Federal 
energy conservation standards.
    [(f)] (g) Exception for Certain Building Code 
Requirements.--(1) A regulation or other requirement enacted or 
prescribed before January 8, 1987, that is contained in a State 
or local building code for new construction concerning the 
energy efficiency or energy use of a covered product is not 
superseded by this part until the effective date of the energy 
conservation standard established in or prescribed under 
section 325 for such covered product.

           *       *       *       *       *       *       *

    [(g)] (h) No Warranty.--Any disclosure with respect to 
energy use, energy efficiency, or estimated annual operating 
cost which is required to be made under the provisions of this 
part shall not create an express or implied warranty under 
State or Federal law that such energy efficiency will be 
achieved or that such energy use or estimated annual operating 
cost will not be exceeded under conditions of actual use.

           *       *       *       *       *       *       *

                  PART C--CERTAIN INDUSTRIAL EQUIPMENT

                              DEFINITIONS

    Sec. 340. For purposes of this part--

           *       *       *       *       *       *       *

    (13) [(A) The term ``electric motor'' means any motor which 
is a general purpose T-frame, single-speed, foot-mounting, 
polyphase squirrel-cage induction motor of the National 
Electrical Manufacturers Association, Design A and B, 
continuous rated, operating on 230/460 volts and constant 60 
Hertz line power as defined in NEMA Standards Publication MG1 
091987.]
    (A)(i) The term `electric motor' means--
          (I) a general purpose electric motor--subtype i; and
          (II) a general purpose electric motor--subtype i i.
    (ii) The term `general purpose electric motor--subtype I' 
means any motor that is considered a general purpose motor 
under section 431.12 of title 10, Code of Federal Regulations 
(or successor regulations).
    (iii) The term `general purpose electric motor--subtype II' 
means a motor that, in addition to the design elements for a 
general purpose electric motor- subtype I, incorporates the 
design elements (as established in National Electrical 
Manufacturers Association MG-1 (2006)) for any 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 (tested in a 
        horizontal configuration).
          (VI) An 8-pole motor.
          (VII) A poly-phase motor with voltage of not more 
        than 600 volts (other than 230 or 460 volts).

           *       *       *       *       *       *       *

                               STANDARDS

    Sec. 342. (a) Small, Large, and Very Large Commercial 
Package Air Conditioning and Heating Equipment, Packaged 
Terminal Air Conditioners and Heat Pumps, Warm-Air Furnaces, 
Packaged Boilers, Storage Water Heaters, Instantaneous Water 
Heaters, and Unfired Hot Water Storage Tanks.--(1) Each small 
commercial package air conditioning and heating equipment 
manufactured on or after January 1, 1994, [but before January 
1, 2010,] shall meet the following standard levels:

           *       *       *       *       *       *       *

    [(6)(A)(i) If ASHRAE/IES Standard 90.1, as in effect on 
January 1, 2010, is amended with respect to any small 
commercial package air conditioning and heating equipment, 
large commercial package air conditioning and heating 
equipment, and very large commercial package air conditioning 
and heating equipment, or if ASHRAE/IES Standard 90.1, as in 
effect on October 24, 1992, is amended with respect to any 
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, the Secretary shall establish an amended uniform 
national standard for that product at the minimum level for 
each effective date specified in the amended ASHRAE/IES 
Standard 90.1, unless 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 such amended ASHRAE/IES Standard 
90.1 for such product would result in significant additional 
conservation of energy and is technologically feasible and 
economically justified.
    [(ii) If ASHRAE/IES Standard 90.1 is not amended with 
respect to small commercial package air conditioning and 
heating equipment, large commercial package air conditioning 
and heating equipment, and very large commercial package air 
conditioning and heating equipment during the 5-year period 
beginning on the effective date of a standard, the Secretary 
may initiate a rulemaking to determine whether a more stringent 
standard--
          [(I) would result in significant additional 
        conservation of energy; and
          [(II) is technologically feasible and economically 
        justified.
    [(B)(i) If the Secretary issues a rule containing such a 
determination, the rule shall establish such amended standard. 
In determining whether a standard is economically justified for 
the purposes of subparagraph (A), the Secretary shall, after 
receiving views and comments furnished with respect to the 
proposed standard, determine whether the benefits of the 
standard exceed its burdens by, to the greatest extent 
practicable, considering--
          [(I) the economic impact of the standard on the 
        manufacturers and on the consumers of the products 
        subject to such standard;
          [(II) the savings in operating costs throughout the 
        estimated average life of the product in the type (or 
        class) compared to any increase in the price of, or in 
        the initial charges for, or maintenance expenses of, 
        the products which are likely to result from the 
        imposition of the standard;
          [(III) the total projected amount of energy savings 
        likely to result directly from the imposition of the 
        standard;
          [(IV) any lessening of the utility or the performance 
        of the products likely to result from the imposition of 
        the standard;
          [(V) the impact of any lessening of competition, as 
        determined in writing by the Attorney General, that is 
        likely to result from the imposition of the standard;
          [(VI) the need for national energy conservation; and
          [(VII) other factors the Secretary considers 
        relevant.
    [(ii) The Secretary may not prescribe any amended standard 
under this paragraph which increases the maximum allowable 
energy use, or decreases the minimum required energy 
efficiency, of a covered product. The Secretary may not 
prescribe an amended standard under this subparagraph if the 
Secretary finds (and publishes such finding) that interested 
persons have established by a preponderance of the evidence 
that a standard is likely to result in the unavailability in 
the United States in any product type (or class) of performance 
characteristics (including reliability), features, sizes, 
capacities, and volumes that are substantially the same as 
those generally available in the United States at the time of 
the Secretary's finding. The failure of some types (or classes) 
to meet this criterion shall not affect the Secretary's 
determination of whether to prescribe a standard for other 
types or classes.
    [(C) A standard amended by the Secretary under this 
paragraph shall become effective for products manufactured--
          [(i) with respect to small 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, and unfired hot water 
        storage tanks, on or after a date which is two years 
        after the effective date of the applicable minimum 
        energy efficiency requirement in the amended ASHRAE/IES 
        standard referred to in subparagraph (A); and
          [(ii) with respect to large commercial package air 
        conditioning and heating equipment and very large 
        commercial package air conditioning and heating 
        equipment, on or after a date which is three years 
        after the effective date of the applicable minimum 
        energy efficiency requirement in the amended ASHRAE/IES 
        standard referred to in subparagraph (A);
[except that an energy conservation standard amended by the 
Secretary pursuant to a rule under subparagraph (B) shall 
become effective for products manufactured on or after a date 
which is four years after the date such rule is published in 
the Federal Register.]
    (6) Amended energy efficiency standards.-- 
          (A) 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, packaged terminal central and 
        commercial 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.
          (B) Amended uniform national standard for products.--
                  (i) In general.--Except as provided in clause 
                (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 
                subparagraph (A), the Secretary shall establish 
                an amended uniform national standard for the 
                product at the minimum level for the applicable 
                effective date specified in the amended ASHRAE/
                IES Standard 90.1.
                  (ii) More stringent standard.--Clause (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.
          (C) Rule.--If the Secretary makes a determination 
        described in subparagraph (B)(ii) for a product 
        described in subparagraph (A), 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.
          (D) Amendment of standards.--
                  (i) In general.--After issuance of the most 
                recent final rule for a product under this 
                subsection, not later than 5 years after the 
                date of issuance of a final rule establishing 
                or amending a standard or determining not to 
                amend a standard, the Secretary shall publish a 
                final rule to determine whether standards for 
                the product should be amended based on the 
                criteria described in subparagraph (A).
                  (ii) Analysis.--Prior to publication of the 
                determination, the Secretary shall publish a 
                notice of availability describing the analysis 
                of the Department and provide opportunity for 
                written comment.
                  (iii) Final rule.--Not later than 3 years 
                after a positive determination under clause 
                (i), the Secretary shall publish a final rule 
                amending the standard for the product.

           *       *       *       *       *       *       *

    (b) Electric Motors.--[(1) Except for definite purpose 
motors, special purpose motors, and those motors exempted by 
the Secretary under paragraph (2), each electric motor 
manufactured (alone or as a component of another piece of 
equipment) after the 60-month period beginning on the date of 
the enactment of this subsection, or in the case of an electric 
motor which requires listing or certification by a nationally 
recognized safety testing laboratory, after the 84-month period 
beginning on such date, shall have a nominal full load 
efficiency of not less than the following:

----------------------------------------------------------------------------------------------------------------
                                                                           Nominal full-load efficiency
                                                                 -----------------------------------------------
                        [Number of poles                                Open motors            Closed motors
                                                                 -----------------------------------------------
                                                                     6       4       2       6       4       2
----------------------------------------------------------------------------------------------------------------
Motor Horsepower
    1...........................................................    80.0    82.5  ......    80.0    82.5    75.5
    1.5.........................................................    84.0    84.0    82.5    85.5    84.0    82.5
    2...........................................................    85.5    84.0    84.0    86.5    84.0    84.0
    3...........................................................    86.5    86.5    84.0    87.5    87.5    85.5
    5...........................................................    87.5    87.5    85.5    87.5    87.5    87.5
    7.5.........................................................    88.5    88.5    87.5    89.5    89.5    88.5
    10..........................................................    90.2    89.5    88.5    89.5    89.5    89.5
    15..........................................................    90.2    91.0    89.5    90.2    91.0    90.2
    20..........................................................    91.0    91.0    90.2    90.2    91.0    90.2
    25..........................................................    91.7    91.7    91.0    91.7    92.4    91.0
    30..........................................................    92.4    92.4    91.0    91.7    92.4    91.0
    40..........................................................    93.0    93.0    91.7    93.0    93.0    91.7
    50..........................................................    93.0    93.0    92.4    93.0    93.0    92.4
    60..........................................................    93.6    93.6    93.0    93.6    93.6    93.0
    75..........................................................    93.6    94.1    93.0    93.6    94.1    93.0
    100.........................................................    94.1    94.1    93.0    94.1    94.5    93.6
    125.........................................................    94.1    94.5    93.6    94.1    94.5    94.5
    150.........................................................    94.5    95.0    93.6    95.0    95.0    94.5
    200.........................................................    94.5    95.0    94.5    95.0    95.0   95.0]
----------------------------------------------------------------------------------------------------------------

    (1) Standards.--
          (A) General purpose electric motors--subtype i.--
                  (i) In general.--Except as otherwise provided 
                in this subparagraph, a general purpose 
                electric motor--subtype I with a power rating 
                of not less than 1, and not more 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 this subparagraph, shall have a 
                nominal full load efficiency established in 
                Table 12-12 of National Electrical 
                Manufacturers Association (referred to in this 
                paragraph as `NEMA') MG-1 (2006).
                  (ii) Fire pump motors.--A fire pump motor 
                shall have a nominal full load efficiency 
                established in Table 12-11 of NEMA MG-1 (2006).
          (B) General purpose electric motors--subtype ii.--A 
        general purpose electric motor--subtype II with a power 
        rating of not less than 1, and not more 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 this 
        subparagraph, shall have a nominal full load efficiency 
        established in Table 12-11 of NEMA MG-1 (2006).
          (C) Design b, general purpose electric motors.--A 
        NEMA Design B, general purpose electric motor with a 
        power rating of not less than 201, and not more than 
        500, horsepower manufactured (alone or as a component 
        of another piece of equipment) after the 3-year period 
        beginning on the date of the enactment of this 
        subparagraph shall have a nominal full load efficiency 
        established in Table 12-11 of NEMA MG-1 (2006).

           *       *       *       *       *       *       *

                            TEST PROCEDURES

    Sec. 343. [(a)(1) The Secretary may conduct an evaluation 
of a class of covered equipment and may prescribe test 
procedures for such class in accordance with the provisions of 
this section.]
    (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.

           *       *       *       *       *       *       *

         ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMPTION

    Sec. 345. (a) The provisions of section 326(a), (b), and 
(d), the provisions of subsections (l) through (s) of section 
325, and section 327 through 336 shall apply with respect to 
this part (other than the equipment specified in subparagraphs 
(B), (C), (D), (E), and (F) of section 340(1)) to the same 
extent and in the same manner as they apply in part B. In 
applying such provisions for the purposes of this part--

           *       *       *       *       *       *       *

    (b)(1) The provisions of section 326(a), (b), and (d), 
section 327(a), and sections 328 through 336 shall apply with 
respect to the equipment specified in subparagraphs (B), (C), 
(D), (E), and (F) of section 340(1) to the same extent and in 
the same manner as they apply in part A. In applying such 
provisions for the purposes of such equipment, paragraphs (1), 
(2), (3), and (4) of subsection (a) shall apply.
    (2)(A) A standard prescribed or established under section 
342(a) shall, beginning on the effective date of such standard, 
supersede any State or local regulation concerning the energy 
efficiency or energy use of a product for which a standard is 
prescribed or established pursuant to such section.

           *       *       *       *       *       *       *

    (E) Relationship to Certain State Regulations.--
Notwithstanding subparagraph (A), a standard prescribed or 
established under section 342(a) with respect to the equipment 
specified in subparagraphs (B), (C), (D), (H), (I), and (J) of 
section 340 shall not supersede a State regulation that is 
effective under the terms, conditions, criteria, procedures, 
and other requirements of section 327(e).

           *       *       *       *       *       *       *

                           GENERAL PROVISIONS

    Sec. 365. (a) The Secretary may prescribe such rules as may 
be necessary or appropriate to carry out his authority under 
this part.

           *       *       *       *       *       *       *

    (f) For the purpose of carrying out this part, there are 
authorized to be appropriated $100,000,000 for each of the 
fiscal years 2006 and 2007 and $125,000,000 for [fiscal year 
2008] each of fiscal years 2008 through 2012.

           *       *       *       *       *       *       *

PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS

           *       *       *       *       *       *       *

SEC. 400EE. STUDIES AND REPORTS.

           *       *       *       *       *       *       *

SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.

      (a) Mandatory Reduction in Petroleum Consumption.--
          (1) In general.--The Secretary shall issue 
        regulations (including provisions for waivers from the 
        requirements of this section) for Federal fleets 
        subject to section 400AA requiring that not later than 
        October 1, 2015, each Federal agency achieve at least a 
        20 percent reduction in petroleum consumption, and that 
        each Federal agency increase alternative fuel 
        consumption by 10 percent annually, as calculated from 
        the baseline established by the Secretary for fiscal 
        year 2005.
          (2) Plan.--
                  (A) Requirement.--The regulations shall 
                require each Federal agency to develop a plan 
                to meet the required petroleum reduction levels 
                and the alternative fuel consumption increases.
                  (B) Measures.--The plan may allow an agency 
                to meet the required petroleum reduction level 
                through--
                          (i) the use of alternative fuels;
                          (ii) 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;
                          (iii) the substitution of cars for 
                        light trucks;
                          (iv) an increase in vehicle load 
                        factors;
                          (v) a decrease in vehicle miles 
                        traveled;
                          (vi) a decrease in fleet size; and
                          (vii) other measures.
    (b) Federal Employee Incentive Programs for Reducing 
Petroleum Consumption.--
          (1) In general.--Each Federal agency shall actively 
        promote incentive programs that encourage Federal 
        employees and contractors to reduce petroleum usage 
        through the use of practices such as--
                  (A) telecommuting;
                  (B) public transit;
                  (C) carpooling; and
                  (D) bicycling.
          (2) Monitoring and support for incentive programs.--
        The Administrator of General Services, the Director of 
        the Office of Personnel Management, and the Secretary 
        of Energy shall monitor and provide appropriate support 
        to agency programs described in paragraph (1).
          (3) Recognition.--The Secretary may establish a 
        program under which the Secretary recognizes private 
        sector employers and State and local governments for 
        outstanding programs to reduce petroleum usage through 
        practices described in paragraph (1).
      (c) Replacement Tires.--
          (1) In general.--Except as provided in paragraph (2), 
        the regulations issued under subsection (a)(1) shall 
        include a requirement that, to the maximum extent 
        practicable, each Federal agency purchase energy-
        efficient replacement tires for the respective fleet 
        vehicles of the agency.
          (2) Exceptions.--This section does not apply to--
                  (A) law enforcement motor vehicles;
                  (B) emergency motor vehicles; or
                  (C) motor vehicles acquired and used for 
                military purposes that the Secretary of Defense 
                has certified to the Secretary must be exempt 
                for national security reasons.
    (d) Annual Reports on Compliance.--The Secretary shall 
submit to Congress an annual report that summarizes actions 
taken by Federal agencies to comply with this section.
                              ----------                              

                 ENERGY CONSERVATION AND PRODUCTION ACT

Public Law 94-385, as amended

           *       *       *       *       *       *       *

TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS

           *       *       *       *       *       *       *

SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.

      (a)(1) In general.--* * *
      (3)(A) Not later than 1 year after the date of enactment 
of [this paragraph] the Energy Efficiency Promotion Act of 
2007, the Secretary shall establish, by rule, revised Federal 
building energy efficiency performance standards that require 
that--
          (i) if life-cycle cost-effective for new Federal 
        buildings--
                  (I) the buildings be designed to achieve 
                energy consumption levels that are at least 30 
                percent below the levels established in the 
                version of the ASHRAE Standard or the 
                International Energy Conservation Code, as 
                appropriate, that is in effect as of the date 
                of enactment of this paragraph; [and]
                  (II) the buildings be designed, to the extent 
                economically feasible and technically 
                practicable, so that the fossil fuel- generated 
                energy consumption of the buildings is reduced, 
                as compared with the fossil fuel-generated 
                energy consumption by a similar Federal 
                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
2007....................................................              50
2010....................................................              60
2015....................................................              70
2020....................................................              80
2025....................................................              90
2030....................................................             100

    ; and''.
                  [(II)] (III) sustainable design principles 
                are applied to the siting, design, and 
                construction of all new and replacement 
                buildings; and
          (ii) if water is used to achieve energy efficiency, 
        water conservation technologies shall be applied to the 
        extent that the technologies are life-cycle cost-
        effective.

           *       *       *       *       *       *       *

                    AUTHORIZATION OF APPROPRIATIONS

    Sec. 422. For the purpose of carrying out the 
weatherization program under this part, there are authorized to 
be appropriated $500,000,000 for fiscal year 2006, $600,000,000 
for fiscal year 2007, and [$700,000,000 for fiscal year 2008] 
$750,000,000 for each of fiscal years 2008 through 2012.
                              ----------                              

             PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978

Public Law 95-617, as amended

           *       *       *       *       *       *       *

TITLE I--RETAIL REGULATORY POLICIES FOR ELECTRIC UTILITIES

           *       *       *       *       *       *       *

              Subtitle B--Standards for Electric Utilities

SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CERTAIN RATEMAKING 
                    STANDARDS.

    (a) Consideration and Determination.--Each State regulatory 
authority (with respect to each electric utility for which it 
has ratemaking authority) and each nonregulated electric 
utility shall consider each standard established by subsection 
(d) and make a determination concerning whether or not it is 
appropriate to implement such standard to carry out the 
purposes of this title. For purposes of such consideration and 
determination in accordance with subsections (b) and (c), and 
for purposes of any review of such consideration and 
determination in any court in accordance with section 123, the 
purposes of this title supplement otherwise applicable State 
law. Nothing in this subsection prohibits any State regulatory 
authority or nonregulated electric utility from making any 
determination that it is not appropriate to implement any such 
standard, pursuant to its authority under otherwise applicable 
State law.

           *       *       *       *       *       *       *

    (d) Establishment.--The following Federal standards are 
hereby established--

           *       *       *       *       *       *       *

          (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; and
                          (v) allowing timely recovery of 
                        energy efficiency-related costs.

           *       *       *       *       *       *       *

TITLE III--RETAIL POLICIES FOR NATURAL GAS UTILITIES

           *       *       *       *       *       *       *

SEC. 303. ADOPTION OF CERTAIN STANDARDS.

    (a) Adoption of Standards.--Not later than 2 years after 
the date of the enactment of this Act (or after the enactment 
of the Energy Policy Act of 1992 in the case of standards under 
paragraphs (3),1 and (4) of subsection (b)), each State 
regulatory authority (with respect to each gas utility for 
which it has ratemaking authority) and each nonregulated gas 
utility shall provide public notice and conduct a hearing 
respecting the standards established by subsection (b) and, on 
the basis of such hearing, shall--
          (1) adopt the standard established by subsection 
        (b)(1) if, and to the extent, such authority or 
        nonregulated utility determines that such adoption is 
        appropriate and is consistent with otherwise applicable 
        State law, and
          (2) adopt the standards established by paragraphs 
        (2), (3) and (4) of subsection (b) if, and to the 
        extent, such authority or nonregulated utility 
        determines that such adoption is appropriate to carry 
        out the purposes of this title, is otherwise 
        appropriate, and is consistent with otherwise 
        applicable State law.
For purposes of any determination under paragraphs (1) and (2) 
and any review of such determination in any court under section 
307, the purposes of this title supplement State law. Nothing 
in this subsection prohibits any State regulatory authority or 
nonregulated utility from making any determination that it is 
not appropriate to implement any such standard, pursuant to its 
authority under otherwise applicable State law.
    (b) Establishment.--The following Federal standards are 
hereby established:

           *       *       *       *       *       *       *

          (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.
                              ----------                              

                NATIONAL ENERGY CONSERVATION POLICY ACT

Public Law 95-619, as amended

           *       *       *       *       *       *       *

TITLE V--FEDERAL ENERGY INITIATIVES

           *       *       *       *       *       *       *

PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *

SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Performance Requirement for Federal Buildings.--
(1) Subject to paragraph (2), each agency shall apply energy 
conservation measures to, and shall improve the design for the 
construction of, the Federal buildings of the agency (including 
each industrial or laboratory facility) so that the energy 
consumption per gross square foot of the Federal buildings of 
the agency in fiscal years 2006 through 2015 is reduced, as 
compared with the energy consumption per gross square foot of 
the Federal buildings of the agency in fiscal year 2003, by the 
percentage specified in the following table:
        [Fiscal Year                                Percentage reduction
2006....................................................               2
2007....................................................               4
2008....................................................               6
2009....................................................               8
2010....................................................              10
2011....................................................              12
2012....................................................              14
2013....................................................              16
2014....................................................              18
2015....................................................            20.]

        Fiscal Year                                 Percentage reduction
2006....................................................               2
2007....................................................               4
2008....................................................               9
2009....................................................              12
2010....................................................              15
2011....................................................              18
2012....................................................              21
2013....................................................              24
2014....................................................              27
2015....................................................            30.]

    (f) Combined Heat and Power and District Energy 
Installations at Federal Sites.--
          (1) In general.--Not later than 18 months after the 
        date of enactment of this subsection, the Secretary, in 
        consultation with the Administrator of General Services 
        and the Secretary of Defense, shall identify Federal 
        sites that could achieve significant cost-effective 
        energy savings through the use of combined heat and 
        power or district energy installations.
          (2) Information and technical assistance.--The 
        Secretary shall provide agencies with information and 
        technical assistance that will enable the agencies to 
        take advantage of the energy savings described in 
        paragraph (1).
          (3) Energy performance requirements.--Any energy 
        savings from the installations described in paragraph 
        (1) may be applied to meet the energy performance 
        requirements for an agency under subsection (a)(1).

           *       *       *       *       *       *       *

SEC. 546. INCENTIVES FOR AGENCIES.

           *       *       *       *       *       *       *

    (c) Utility Incentive Program.--(1) Agencies are authorized 
and encouraged to participate in programs to increase energy 
efficiency and for water conservation or the management of 
electricity demand conducted by gas, water, or electric 
utilities and generally available to customers of such 
utilities.

           *       *       *       *       *       *       *

    [(5)(A) An amount equal to fifty percent of the energy and 
water cost savings realized by an agency (other than the 
Department of Defense) with respect to funds appropriated for 
any fiscal year beginning after fiscal year 1992 (including 
financial benefits resulting from energy savings performance 
contracts under title VIII and utility energy efficiency 
rebates) shall, subject to appropriation, remain available for 
expenditure by such agency for additional energy efficiency 
measures which may include related employee incentive programs, 
particularly at those facilities at which energy savings were 
achieved.
    [(B) Agencies shall establish a fund and maintain strict 
financial accounting and controls for savings realized and 
expenditures made under this subsection. Records maintained 
pursuant to this subparagraph shall be made available for 
public inspection upon request.]

           *       *       *       *       *       *       *

SEC. 548. REPORTS.

    (a) Reports to the Secretary.--Each agency shall transmit a 
report to the Secretary, at times specified by the Secretary 
but at least annually, with complete information on its 
activities under this part, including information on--
          (1) the agency's progress in achieving the goals 
        established by section 543; and
          (2) the procedures being used by the agency pursuant 
        to section 546(a)(2), the number of contracts entered 
        into by such agency under title VIII of this Act, the 
        energy and cost savings that have resulted from such 
        contracts and any termination penalty exposure, the use 
        of such cost savings under section 546(c), and any 
        problem encountered in entering into such contracts and 
        otherwise implementing section 546.

           *       *       *       *       *       *       *

            TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS

SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.

    (a) In General.--(1) The head of a Federal agency may enter 
into contracts under this title solely for the purpose of 
achieving energy savings and benefits ancillary to that 
purpose. Each such contract may, notwithstanding any other 
provision of law, be for a period not to exceed 25 years. Such 
contract shall provide that the contractor shall incur costs of 
implementing energy savings measures, including at least the 
cost (if any) incurred in making energy audits, acquiring and 
installing equipment, and training personnel, in exchange for a 
share of any energy savings directly resulting from 
implementation of such measures during the term of the 
contract.
    (2)(A) Contracts under this title shall be energy savings 
performance contracts and shall require an annual energy audit 
and specify the terms and conditions of any Government payments 
and performance guarantees. Any such performance guarantee 
shall provide that the contractor is responsible for 
maintenance and repair services for any energy related 
equipment, including computer software systems.
    (B) Aggregate annual payments by an agency to both 
utilities and energy savings performance contractors, under an 
energy savings performance contract, may not exceed the amount 
that the agency would have paid for utilities without an energy 
savings performance contract (as estimated through the 
procedures developed pursuant to this section) during contract 
years. The contract shall provide for a guarantee of savings to 
the agency, and shall establish payment schedules reflecting 
such guarantee, taking into account any capital costs under the 
contract.
    (C) Federal agencies may incur obligations pursuant to such 
contracts to finance energy conservation measures provided 
guaranteed savings exceed the debt service requirements.
    (D) A Federal agency may enter into a multiyear contract 
under this title for a period not to exceed 25 years, without 
funding of cancellation charges before cancellation, if--
          (i) such contract was awarded in a competitive manner 
        pursuant to subsection (b)(2), using procedures and 
        methods established under this title;
          (ii) funds are available and adequate for payment of 
        the costs of such contract for the first fiscal year; 
        and
          [(iii) 30 days before the award of any such contract 
        that contains a clause setting forth a cancellation 
        ceiling in excess of $10,000,000, the head of such 
        agency gives written notification of such proposed 
        contract and of the proposed cancellation ceiling for 
        such contract to the appropriate authorizing and 
        appropriating committees of the Congress; and]
          [(iv)] (iii) such contract is governed by part 17.1 
        of the Federal Acquisition Regulation promulgated under 
        section 25 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 421) or the applicable rules promulgated 
        under this title.

           *       *       *       *       *       *       *

    [(c) Sunset and Reporting Requirements.--The authority to 
enter into new contracts under this section shall cease to be 
effective on October 1, 2016.]

           *       *       *       *       *       *       *

SEC. 804. DEFINITIONS.

    For purposes of this title, the following definitions 
apply:

           *       *       *       *       *       *       *

          (2) The term ``energy savings'' [means a reduction] 
        means--
                  (A) a reduction in the cost of energy, water, 
                or wastewater treatment, from a base cost 
                established through a methodology set forth in 
                the contract, used in an existing federally 
                owned building or buildings or other federally 
                owned facilities as a result of--
                          [(A)] (i) the lease or purchase of 
                        operating equipment, improvements, 
                        altered operation and maintenance, or 
                        technical services;
                          [(B)] (ii) the increased efficient 
                        use of existing energy sources by 
                        cogeneration or heat recovery, 
                        excluding any cogeneration process for 
                        other than a federally owned building 
                        or buildings or other federally owned 
                        facilities; or
                          [(C)] (iii) the increased efficient 
                        use of existing water sources in either 
                        interior or exterior applications[.];
                  (B) the increased efficient use of an 
                existing energy source by cogeneration or heat 
                recovery, and installation of renewable energy 
                systems;
                  (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.
                              ----------                              

                     THE ENERGY POLICY ACT OF 1992

Public Law 102-486; 106 Stat. 2776 et seq.

           *       *       *       *       *       *       *

           TITLE IV--ALTERNATIVE FUELS--NON-FEDERAL PROGRAMS

SEC. 406. LABELING REQUIREMENTS.

           *       *       *       *       *       *       *

    (a) Establishment of Requirements.--[The Federal Trade 
Commission]
          (1) In general.--The Federal Trade Commission, in 
        consultation with the Secretary, the Administrator of 
        the Environmental Protection Agency, and the Secretary 
        of Transportation, shall, within 18 months after the 
        date of enactment of this Act, issue a notice of 
        proposed rulemaking for a rule to establish uniform 
        labeling requirements, to the greatest extent 
        practicable, for alternative fuels and alternative 
        fueled vehicles, including requirements for appropriate 
        information with respect to costs and benefits, so as 
        to reasonably enable the consumer to make choices and 
        comparisons. Required labeling under the rule shall be 
        simple and, where appropriate, consolidated with other 
        labels providing information to the consumer. In 
        formulating the rule, the Federal Trade Commission 
        shall give consideration to the problems associated 
        with developing and publishing useful and timely cost 
        and benefit information, taking into account lead time, 
        costs, the frequency of changes in costs and benefits 
        that may occur, and other relevant factors. The 
        Commission shall obtain the views of affected 
        industries, consumer organizations, Federal and State 
        agencies, and others in formulating the rule. A final 
        rule shall be issued within 1 year after the notice of 
        proposed rulemaking is issued. Such rule shall be 
        updated periodically to reflect the most recent 
        available information.
          (2) Fuel tank cap labeling requirement.--Beginning 
        with model year 2010, the fuel tank cap of each 
        alternative fueled vehicle manufactured for sale in the 
        United States shall be clearly labeled to inform 
        consumers that such vehicle can operate on alternative 
        fuel.
    (b) Technical Assistance and Coordination.--The Secretary 
shall provide technical assistance to the Federal Trade 
Commission in developing labeling requirements under subsection 
(a). The Secretary shall coordinate activities under this 
section with activities under section 405.

           *       *       *       *       *       *       *

                              ----------                              

                     THE ENERGY POLICY ACT OF 2005

Public Law 109-58; 119 Stat. 594 et seq.

           *       *       *       *       *       *       *

TITLE I--ENERGY EFFICIENCY

           *       *       *       *       *       *       *

Subtitle B--Energy Assistance and State Programs

           *       *       *       *       *       *       *

SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    (a) Definitions.--In this section:
          (1) Eligible state.--The term ``eligible State'' 
        means a State that meets the requirements of subsection 
        (b).
          (2) Energy star program.--The term ``Energy Star 
        program'' means the program established by section 324A 
        of the Energy Policy and Conservation Act.
          (3) Residential energy star product.--The term 
        ``residential Energy Star product'' means a product for 
        a residence that is rated for energy efficiency under 
        the Energy Star program.
          (4) State energy office.--The term ``State energy 
        office'' means the State agency responsible for 
        developing State energy conservation plans under 
        section 362 of the Energy Policy and Conservation Act 
        (42 U.S.C. 6322).
          (5) State program.--The term ``State program'' means 
        a State energy efficient appliance rebate program 
        described in subsection (b)(1).
    (b) Eligible States.--A State shall be eligible to receive 
an allocation under subsection (c) if the State--
          (1) establishes (or has established) a State energy 
        efficient appliance rebate program to provide rebates 
        to residential consumers for the purchase of 
        residential Energy Star products, or products with 
        improved energy efficiency in cold climates to replace 
        used appliances of the same type;
          (2) submits an application for the allocation at such 
        time, in such form, and containing such information as 
        the Secretary may require; and
          (3) provides assurances satisfactory to the Secretary 
        that the State will use the allocation to supplement, 
        but not supplant, funds made available to carry out the 
        State program.
    (c) Amount of Allocations.--
          (1) In general.--Subject to paragraph (2), for each 
        fiscal year, the Secretary shall allocate to the State 
        energy office of each eligible State to carry out 
        subsection (d) an amount equal to the product obtained 
        by multiplying the amount made available under 
        subsection (f) for the fiscal year by the ratio that 
        the population of the State in the most recent calendar 
        year for which data are available bears to the total 
        population of all eligible States in that calendar 
        year.
          (2) Minimum allocations.--For each fiscal year, the 
        amounts allocated under this subsection shall be 
        adjusted proportionately so that no eligible State is 
        allocated a sum that is less than an amount determined 
        by the Secretary.
    (d) Use of Allocated Funds.--The allocation to a State 
energy office under subsection (c) may be used to pay up to 50 
percent of the cost of establishing and carrying out a State 
program.
    (e) Issuance of Rebates.--Rebates may be provided to 
residential consumers that meet the requirements of the State 
program. The amount of a rebate shall be determined by the 
State energy office, taking into consideration--
          (1) the amount of the allocation to the State energy 
        office under subsection (c);
          (2) the amount of any Federal or State tax incentive 
        available for the purchase of the residential Energy 
        Star product or product with improved energy efficiency 
        in a cold climate; and
          (3) the difference between the cost of the 
        residential Energy Star product or product with 
        improved energy efficiency in a cold climate and the 
        cost of an appliance that is not a residential Energy 
        Star product or product with improved energy efficiency 
        in a cold climate, but is of the same type as, and is 
        the nearest capacity, performance, and other relevant 
        characteristics (as determined by the State energy 
        office) to, the residential Energy Star product or 
        product with improved energy efficiency in a cold 
        climate.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$50,000,000 for each of the fiscal years 2006 through 2010.

           *       *       *       *       *       *       *

                       TITLE II--RENEWABLE ENERGY

Subtitle A--General Provisions

           *       *       *       *       *       *       *

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

    [(a) Requirement.--The President, acting through the 
Secretary, shall seek to ensure that, to the extent 
economically feasible and technically practicable, of the total 
amount of electric energy the Federal Government consumes 
during any fiscal year, the following amounts shall be 
renewable energy:
          [(1) Not less than 3 percent in fiscal years 2007 
        through 2009.
          [(2) Not less than 5 percent in fiscal years 2010 
        through 2012.
          [(3) Not less than 7.5 percent in fiscal year 2013 
        and each fiscal year thereafter.]
    (a) Requirement.--
          (1) In general.--The President, acting through the 
        Secretary, shall require that, to the extent 
        economically feasible and technically practicable, of 
        the total quantity of domestic electric energy the 
        Federal Government consumes during any fiscal year, the 
        following percentages shall be renewable energy from 
        facilities placed in service after January 1, 1999:
                  (A) Not less than 10 percent in fiscal year 
                2010.
                  (B) Not less than 15 percent in fiscal year 
                2015.
          (2) Capitol complex.--The Architect of the Capitol, 
        in consultation with the Secretary, shall ensure that, 
        of the total quantity of electric energy the Capitol 
        complex consumes during any fiscal year, the 
        percentages prescribed in paragraph (1) shall be 
        renewable energy.
          (3) Waiver authority.--The President may reduce or 
        waive the requirement under paragraph (1) on a fiscal-
        year basis if the President determines that complying 
        with paragraph (1) for a fiscal year would result in--
                  (A) a negative impact on military training or 
                readiness activities conducted by the 
                Department of Defense;
                  (B) a negative impact on domestic 
                preparedness activities conducted by the 
                Department of Homeland Security; or
                  (C) a requirement that a Federal agency 
                provide emergency response services in the 
                event of a natural disaster or terrorist 
                attack.
    (b) Definitions.--In this section:
          (1) Biomass.--The term ``biomass'' means any lignin 
        waste material that is segregated from other waste 
        materials and is determined to be nonhazardous by the 
        Administrator of the Environmental Protection Agency 
        and any solid, nonhazardous, cellulosic material that 
        is derived from--
                  (A) any of the following forest-related 
                resources: mill residues, precommercial 
                thinnings, slash, and brush, or nonmerchantable 
                material;
                  (B) solid wood waste materials, including 
                waste pallets, crates, dunnage, manufacturing 
                and construction wood wastes (other than 
                pressure-treated, chemically-treated, or 
                painted wood wastes), and landscape or right-
                of-way tree trimmings, but not including 
                municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or 
                paper that is commonly recycled;
                  (C) agriculture wastes, including orchard 
                tree crops, vineyard, grain, legumes, sugar, 
                and other crop by-products or residues, and 
                livestock waste nutrients; or
                  ((D) a plant that is grown exclusively as a 
                fuel for the production of electricity.
          (2) Renewable energy.--The term ``renewable energy'' 
        means electric energy generated from solar, wind, 
        biomass, landfill gas, ocean (including tidal, wave, 
        current, and thermal), geothermal, municipal solid 
        waste, or new hydroelectric generation capacity 
        achieved from increased efficiency or additions of new 
        capacity at an existing hydroelectric project.
    (c) Calculation.--For purposes of determining compliance 
with the requirement of this section, the amount of renewable 
energy shall be doubled if--
          (1) the renewable energy is produced and used on-site 
        at a Federal facility;
          (2) the renewable energy is produced on Federal lands 
        and used at a Federal facility; or
          (3) the renewable energy is produced on Indian land 
        as defined in title XXVI of the Energy Policy Act of 
        1992 (25 U.S.C. 3501 et seq.) and used at a Federal 
        facility.
    (d) Report.--Not later than April 15, 2007, and every 2 
years thereafter, the Secretary shall provide a report to 
Congress on the progress of the Federal Government in meeting 
the goals established by this section.
    (e) Contracts for Renewable Energy From Public Utility 
Services.--Notwithstanding section 501(b)(1)(B) of title 40, 
United States Code, a contract for renewable energy from a 
public utility service may be made for a period of not more 
than 50 years.

           *       *       *       *       *       *       *

TITLE VII--VEHICLES AND FUELS

           *       *       *       *       *       *       *

  Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                        PART 1--HYBRID VEHICLES

SEC. 711. HYBRID VEHICLES.

    The Secretary shall accelerate efforts directed toward the 
improvement of batteries and other rechargeable energy storage 
systems, power electronics, hybrid systems integration, and 
other technologies for use in hybrid vehicles.

SEC. 712. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES.

    (a) Program.--The Secretary shall establish a program to 
encourage domestic production and sales of efficient hybrid and 
advanced diesel vehicles. The program shall include [ grants to 
automobile manufacturers ] grants and loan guarantees under 
section 1703 to automobile manufacturers and suppliers to 
encourage domestic production of efficient hybrid and advanced 
diesel vehicles.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section such sums as may be necessary for each of the fiscal 
years 2006 through 2015.

           *       *       *       *       *       *       *

                   TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Energy Research, 
Development, Demonstration, and Commercial Application Act of 
2005''.

           *       *       *       *       *       *       *

                     Subtitle A--Energy Efficiency

SEC. 911. ENERGY EFFICIENCY.

    (a) In General.--
          (1) Objectives.--The Secretary shall conduct programs 
        of energy efficiency research, development, 
        demonstration, and commercial application, including 
        activities described in this subtitle. Such programs 
        shall take into consideration the following objectives:
                  (A) Increasing the energy efficiency of 
                vehicles, buildings, and industrial processes.
                  (B) Reducing the demand of the United States 
                for energy, especially energy from foreign 
                sources.
                  (C) Reducing the cost of energy and making 
                the economy more efficient and competitive.
                  (D) Improving the energy security of the 
                United States.
                  (E) Reducing the environmental impact of 
                energy-related activities.
          (2) Programs.--Programs under this subtitle shall 
        include research, development, demonstration, and 
        commercial application of--
                  (A) advanced, cost-effective technologies to 
                improve the energy efficiency and environmental 
                performance of vehicles, including--
                          (i) hybrid and electric propulsion 
                        systems;
                          (ii) plug-in hybrid systems;
                          (iii) advanced combustion engines;
                          (iv) weight and drag reduction 
                        technologies;
                          (v) whole-vehicle design 
                        optimization; and
                          (vi) advanced drive trains;
                  (B) cost-effective technologies, for new 
                construction and retrofit, to improve the 
                energy efficiency and environmental performance 
                of buildings, using a whole-buildings approach, 
                including onsite renewable energy generation;
                  (C) advanced technologies to improve the 
                energy efficiency, environmental performance, 
                and process efficiency of energy-intensive and 
                waste-intensive industries; [and]
                  (D) advanced control devices to improve the 
                energy efficiency of electric motors, including 
                those used in industrial processes, heating, 
                ventilation, and cooling [.] ; and
                  (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.

           *       *       *       *       *       *       *

                      Subtitle C--Renewable Energy

SEC. 931. RENEWABLE ENERGY.

    (a) In General.--
          (1) Objectives.--The Secretary shall conduct programs 
        of renewable energy research, development, 
        demonstration, and commercial application, including 
        activities described in this subtitle. Such programs 
        shall take into consideration the following objectives:
                  (A) Increasing the conversion efficiency of 
                all forms of renewable energy through improved 
                technologies.
                  (B) Decreasing the cost of renewable energy 
                generation and delivery.
                  (C) Promoting the diversity of the energy 
                supply.
                  (D) Decreasing the dependence of the United 
                States on foreign energy supplies.
                  (E) Improving United States energy security.
                  (F) Decreasing the environmental impact of 
                energy-related activities.
                  (G) Increasing the export of renewable 
                generation equipment from the United States.
          (2) Programs.--
                  (A) Solar energy.--The Secretary shall 
                conduct a program of research, development, 
                demonstration, and commercial application for 
                solar energy, including--
                          (i) photovoltaics;
                          (ii) solar hot water and solar space 
                        heating;
                          (iii) concentrating solar power;
                          (iv) lighting systems that integrate 
                        sunlight and electrical lighting in 
                        complement to each other in common 
                        lighting fixtures for the purpose of 
                        improving energy efficiency;
                          (v) manufacturability of low cost, 
                        high quality solar systems; and
                          (vi) development of products that can 
                        be easily integrated into new and 
                        existing buildings.
                  (B) Wind energy.--The Secretary shall conduct 
                a program of research, development, 
                demonstration, and commercial application for 
                wind energy, including--
                          (i) low speed wind energy;
                          (ii) offshore wind energy;
                          (iii) testing and verification 
                        (including construction and operation 
                        of a research and testing facility 
                        capable of testing wind turbines); and
                          (iv) distributed wind energy 
                        generation.
                  (C) Geothermal.--The Secretary shall conduct 
                a program of research, development, 
                demonstration, and commercial application for 
                geothermal energy. The program shall focus on 
                developing improved technologies for reducing 
                the costs of geothermal energy installations, 
                including technologies for--
                          (i) improving detection of geothermal 
                        resources;
                          (ii) decreasing drilling costs;
                          (iii) decreasing maintenance costs 
                        through improved materials;
                          (iv) increasing the potential for 
                        other revenue sources, such as mineral 
                        production; and
                          (v) increasing the understanding of 
                        reservoir life cycle and management.
                  (D) Hydropower.--The Secretary shall conduct 
                a program of research, development, 
                demonstration, and commercial application for 
                cost competitive technologies that enable the 
                development of new and incremental hydropower 
                capacity, adding to the diversity of the energy 
                supply of the United States, including:
                          (i) Fish-friendly large turbines.
                          (ii) Advanced technologies to enhance 
                        environmental performance and yield 
                        greater energy efficiencies.
                  (E) Miscellaneous projects.--The Secretary 
                shall conduct research, development, 
                demonstration, and commercial application 
                programs for--
                          (i) ocean energy, including wave 
                        energy;
                          (ii) the combined use of renewable 
                        energy technologies with one another 
                        and with other energy technologies, 
                        including the combined use of wind 
                        power and coal gasification 
                        technologies;
                          (iii) renewable energy technologies 
                        for cogeneration of hydrogen and 
                        electricity; and
                          (iv) kinetic hydro turbines.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out renewable 
energy research, development, demonstration, and commercial 
application activities, including activities authorized under 
this subtitle--
          (1) $632,000,000 for fiscal year 2007;
          (2) $743,000,000 for fiscal year 2008; and
          (3) $852,000,000 for fiscal year 2009.
    (c) Bioenergy.--From the amounts authorized under 
subsection (b), there are authorized to be appropriated to 
carry out section 932--
          (1) $213,000,000 for fiscal year 2007, of which 
        $100,000,000 shall be for section 932(d);
          (2) [$251,000,000] $377,000,000 for fiscal year 2008, 
        of which $125,000,000 shall be for section 932(d); and
          (3) [$274,000,000] $398,000,000 for fiscal year 2009, 
        of which $150,000,000 shall be for section 932(d).

           *       *       *       *       *       *       *

Subtitle F--Fossil Energy

           *       *       *       *       *       *       *

SEC. 963. CARBON CAPTURE [RESEARCH AND DEVELOPMENT] AND STORAGE 
                    RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary shall carry out a 10-year 
carbon capture [research and development] and storage research, 
development, and demonstration program to develop carbon 
dioxide [capture technologies on combustion-based systems] 
capture and storage technologies related to energy systems for 
use--
          (1) in new coal utilization facilities; and
          (2) on the fleet of coal-based units in existence on 
        the date of enactment of this Act.
    (b) Objectives.--The objectives of the program under 
subsection (a) shall be--
          (1) to develop carbon dioxide capture technologies, 
        including adsorption and absorption techniques and 
        chemical processes, to remove the carbon dioxide from 
        gas streams containing carbon dioxide potentially 
        amenable to sequestration;
          (2) to develop technologies that would directly 
        produce concentrated streams of carbon dioxide 
        potentially amenable to sequestration;
          (3) to increase the efficiency of the overall system 
        to reduce the quantity of carbon dioxide emissions 
        released from the system per megawatt generated; [and]
          (4) in accordance with the carbon dioxide capture 
        program, to promote a robust carbon sequestration 
        program and continue the work of the Department, in 
        conjunction with the private sector, through regional 
        carbon sequestration partnerships[.]; and 
          (5) to expedite and carry out large-scale testing of 
        carbon sequestration systems in a range of geological 
        formations that will provide information on the cost 
        and feasibility of deployment of sequestration 
        technologies.
    [(c) Authorization of Appropriations.--From amounts 
authorized under section 961(b), the following sums are 
authorized for activities described in subsection (a)(2):
          [(1) $25,000,000 for fiscal year 2006;
          [(2) $30,000,000 for fiscal year 2007; and
          [(3) $35,000,000 for fiscal year 2008.]
    (c) Programmatic Activities.--
          (1) Energy research and development underlying carbon 
        capture and storage 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 store, recycle, or 
                reuse carbon dioxide. 
                  (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 improved 
                        technologies for the capture of carbon 
                        dioxide;
                          (ii) development of new or improved 
                        technologies that reduce the cost and 
                        increase the efficacy of the 
                        compression of carbon dioxide required 
                        for the storage of carbon dioxide;
                          (iii) modeling and simulation of 
                        geological sequestration field 
                        demonstrations;
                          (iv) quantitative assessment of risks 
                        relating to specific field sites for 
                        testing of sequestration technologies; 
                        and 
                          (v) research and development of new 
                        and improved technologies for carbon 
                        use, including recycling and reuse of 
                        carbon dioxide.
          (2) Carbon capture demonstration project.--
                  (A) In general.--The Secretary shall carry 
                out a demonstration of large-scale carbon 
                dioxide capture from an appropriate 
                gasification facility selected by the 
                Secretary.
                  (B) Link to storage activities.--The 
                Secretary may require the use of carbon dioxide 
                from the project carried out under subparagraph 
                (A) in a field testing validation activity 
                under this section.
          (3) 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 geological settings, including--
                          (i) operating oil and gas fields;
                          (ii) depleted oil and gas fields;
                          (iii) unmineable coal seams;
                          (iv) deep saline formations;
                          (v) deep geological 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 
                        geological formations;
                          (iii) to refine storage capacity 
                        estimated for particular geological 
                        formations;
                          (iv) to determine the fate of carbon 
                        dioxide concurrent with and following 
                        injection into geological formations;
                          (v) to develop and implement best 
                        practices for operations relating to, 
                        and monitoring of, injection and 
                        storage of carbon dioxide in geologic 
                        formations;
                          (vi) to assess and ensure the safety 
                        of operations related to geological 
                        storage of carbon dioxide; and
                          (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 storage that are 
                        funded by the Department of Energy.
          (4) Large-scale testing and deployment.--
                  (A) In general.--The Secretary shall conduct 
                not less than 7 initial large-volume 
                sequestration tests for geological containment 
                of carbon dioxide (at least 1 of which shall be 
                international in scope) to validate information 
                on the cost and feasibility of commercial 
                deployment of technologies for geological 
                containment of carbon dioxide.
                  (B) Diversity of formations to be studied.--
                In selecting formations for study under this 
                paragraph, the Secretary shall consider a 
                variety of geological formations across the 
                United States, and require characterization and 
                modeling of candidate formations, as determined 
                by the Secretary.
          (5) Preference in project selection from meritorious 
        proposals.--In making competitive awards under this 
        subsection, subject to the requirements of section 989, 
        the Secretary shall give preference to proposals from 
        partnerships among industrial, academic, and government 
        entities.
          (6) 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).
          (7) 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) $150,000,000 for fiscal year 2008;
          (2) $200,000,000 for fiscal year 2009;
          (3) $200,000,000 for fiscal year 2010;
          (4) $180,000,000 for fiscal year 2011; and
          (5) $165,000,000 for fiscal year 2012.

           *       *       *       *       *       *       *

                          Subtitle G--Science

SEC. 977. SYSTEMS BIOLOGY PROGRAM.

    (a) Program.--
          (1) Establishment.--The Secretary shall establish a 
        research, development, and demonstration program in 
        microbial and plant systems biology, protein science, 
        and computational biology to support the energy, 
        national security, and environmental missions of the 
        Department, including the establishment of at least 11 
        bioresearch centers of varying sizes, as appropriate, 
        that focus on biofuels, of which at least 2 centers 
        shall be located in each of the 4 Petroleum 
        Administration for Defense Districts with no 
        subdistricts and 1 center shall be located in each of 
        the subdistricts of the Petroleum Administration for 
        Defense District with subdistricts.

           *       *       *       *       *       *       *

                    TITLE XI--PERSONNEL AND TRAINING

SEC. 1101. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

    (a) Definitions.--In this section:
          (1) Energy technology industry.--The term ``energy 
        technology industry'' includes--
                  (A) a renewable energy industry;
                  (B) a company that develops or commercializes 
                a device to increase energy efficiency;
                  (C) the oil and gas industry;
                  (D) the nuclear power industry;
                  (E) the coal industry;
                  (F) the electric utility industry; and
                  (G) any other industrial sector, as the 
                Secretary determines to be appropriate.
          (2) Skilled technical personnel.--The term ``skilled 
        technical personnel'' means--
                  (A) journey- and apprentice-level workers who 
                are enrolled in, or have completed, a 
                federally-recognized or State-recognized 
                apprenticeship program; and
                  (B) other skilled workers in energy 
                technology industries, as determined by the 
                Secretary.
    (b) Workforce Trends.--
          (1) Monitoring.--The Secretary, in consultation with, 
        and using data collected by, the Secretary of Labor, 
        shall monitor trends in the workforce of--
                  (A) skilled technical personnel that support 
                energy technology industries; and
                  (B) electric power and transmission 
                engineers.
          (2) Report on trends.--Not later than 1 year after 
        the date of enactment of this Act, the Secretary shall 
        submit to Congress a report on current trends under 
        paragraph (1), with recommendations (as appropriate) to 
        meet the future labor requirements for the energy 
        technology industries.
          (3) Report on shortage.--As soon as practicable after 
        the date on which the Secretary identifies or predicts 
        a significant national shortage of skilled technical 
        personnel in one or more energy technology industries, 
        the Secretary shall submit to Congress a report 
        describing the shortage.
    (c) Traineeship Grants for Skilled Technical Personnel.--
The Secretary, in consultation with the Secretary of Labor, may 
establish programs in the appropriate offices of the Department 
under which the Secretary provides grants to enhance training 
(including distance learning) for any workforce category for 
which a shortage is identified or predicted under subsection 
(b)(2).
    (d) Workforce Training.--
          (1) In general.--The Secretary, in cooperation with 
        the Secretary of Labor, shall promulgate regulations to 
        implement a program to provide workforce training to 
        meet the high demand for workers skilled in the energy 
        efficiency and renewable energy industries.
          (2) Consultation.--In carrying out this subsection, 
        the Secretary shall consult with representatives of the 
        energy efficiency and renewable energy industries 
        concerning skills that are needed in those industries.
    [(d)] (e) Authorization of Appropriations.--There is 
authorized to be appropriated to carry out this section 
$20,000,000 for each of fiscal years 2006 through 2008.

           *       *       *       *       *       *       *

           TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

SEC. 1701. DEFINITIONS.

    In this title:
    (1) Commercial technology.--
          (A) In general.--The term ``commercial technology'' 
        means a technology in general use in the commercial 
        marketplace.
          [(B) Inclusions.--The term ``commercial technology'' 
        does not include a technology solely by use of the 
        technology in a demonstration project funded by the 
        Department.]
          (B) Exclusion.--The term `commercial technology' does 
        not include a technology if the sole use of the 
        technology is in connection with--
                  (i) a demonstration plant; or
                  (ii) a project for which the Secretary 
                approved a loan guarantee.
    (2) Cost.--The term ``cost'' has the meaning given the term 
``cost of a loan guarantee'' within the meaning of section 
502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a(5)(C)).
    (3) Eligible project.--The term ``eligible project'' means 
a project described in section 1703.
    (4) Guarantee.--
          (A) In general.--The term ``guarantee'' has the 
        meaning given the term ``loan guarantee'' in section 
        502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a).
          (B) Inclusion.--The term ``guarantee'' includes a 
        loan guarantee commitment (as defined in section 502 of 
        the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
    (5) Obligation.--The term ``obligation'' means the loan or 
other debt obligation that is guaranteed under this section.

SEC. 1702. TERMS AND CONDITIONS.

    (a) In General.--Except for division C of Public Law 108-
324, the Secretary shall make guarantees under this or any 
other Act for projects on such terms and conditions as the 
Secretary determines, after consultation with the Secretary of 
the Treasury, only in accordance with this section.
    [(b) Specific Appropriation or Contribution.--No guarantee 
shall be made unless--
          (1) an appropriation for the cost has been made; or
          (2) the Secretary has received from the borrower a 
        payment in full for the cost of the obligation and 
        deposited the payment into the Treasury.]
    (b) Specific Appropriation or Conttribution.--
          (1) In general.--No guarantee shall be made unless--
                  (A) an appropriation for the cost has been 
                made; or
                  (B) the Secretary has received from the 
                borrower a payment in full for the cost of the 
                obligation and deposited the payment into the 
                Treasury.
          (2) Limitation.--The source of payments received from 
        a borrower under paragraph (1)(B) shall not be a loan 
        or other debt obligation that is made or guaranteed by 
        the Federal Government.
          (3) Relation to other laws.--Section 504(b) of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) 
        shall not apply to a loan or loan guarantee made in 
        accordance with paragraph (1)(B).
    [(c) Amount.--Unless otherwise provided by law, a guarantee 
by the Secretary shall not exceed an amount equal to 80 percent 
of the project cost of the facility that is the subject of the 
guarantee, as estimated at the time at which the guarantee is 
issued.]
    (c) Amount.--
          (1) In general.--Subject to paragraph (2), the 
        Secretary shall guarantee up to 100 percent of the 
        principal and interest due on 1 or more loans for a 
        facility that are the subject of the guarantee.
          (2) Limitation.--The total amount of loans guaranteed 
        for a facility by the Secretary shall not exceed 80 
        percent of the total cost of the facility, as estimated 
        at the time at which the guarantee is issued.
    (d) Repayment.--
          (1) In general.--No guarantee shall be made unless 
        the Secretary determines that there is reasonable 
        prospect of repayment of the principal and interest on 
        the obligation by the borrower.
          (2) Amount.--No guarantee shall be made unless the 
        Secretary determines that the amount of the obligation 
        (when combined with amounts available to the borrower 
        from other sources) will be sufficient to carry out the 
        project.
          (3) Subordination.--The obligation shall be subject 
        to the condition that the obligation is not subordinate 
        to other financing.
    (e) Interest Rate.--An obligation shall bear interest at a 
rate that does not exceed a level that the Secretary determines 
appropriate, taking into account the prevailing rate of 
interest in the private sector for similar loans and risks.
    (f) Term.--The term of an obligation shall require full 
repayment over a period not to exceed the lesser of--
          (1) 30 years; or
          (2) 90 percent of the projected useful life of the 
        physical asset to be financed by the obligation (as 
        determined by the Secretary).
    (g) Defaults.--
          (1) Payment by secretary.--
                  (A) In general.--If a borrower defaults on 
                the obligation (as defined in regulations 
                promulgated by the Secretary and specified in 
                the guarantee contract), the holder of the 
                guarantee shall have the right to demand 
                payment of the unpaid amount from the 
                Secretary.
                  [(B) Payment required.--Within such period as 
                may be specified in the guarantee or related 
                agreements, the Secretary shall pay to the 
                holder of the guarantee the unpaid interest on, 
                and unpaid principal of the obligation as to 
                which the borrower has defaulted, unless the 
                Secretary finds that there was no default by 
                the borrower in the payment of interest or 
                principal or that the default has been 
                remedied.]
                  [(C)] (B) Forbearance.--Nothing in this 
                subsection precludes any forbearance by the 
                holder of the obligation for the benefit of the 
                borrower which may be agreed upon by the 
                parties to the obligation and approved by the 
                Secretary.
          (2) Subrogation.--
                  (A) In general.--If the Secretary makes a 
                payment under paragraph (1), the Secretary 
                shall be subrogated to the rights of the 
                recipient of the payment as specified in the 
                guarantee or related agreements including, 
                where appropriate, the authority 
                (notwithstanding any other provision of law) 
                to--
                          (i) complete, maintain, operate, 
                        lease, or otherwise dispose of any 
                        property acquired pursuant to such 
                        guarantee or related agreements; or
                          (ii) permit the borrower, pursuant to 
                        an agreement with the Secretary, to 
                        continue to pursue the purposes of the 
                        project if the Secretary determines 
                        this to be in the public interest.
                  (B) Superiority of rights.--The rights of the 
                Secretary, with respect to any property 
                acquired pursuant to a guarantee or related 
                agreements, shall be superior to the rights of 
                any other person with respect to the property.
                  (C) Terms and conditions.--A guarantee 
                agreement shall include such detailed terms and 
                conditions as the Secretary determines 
                appropriate to--
                          (i) protect the interests of the 
                        United States in the case of default; 
                        and
                          (ii) have available all the patents 
                        and technology necessary for any person 
                        selected, including the Secretary, to 
                        complete and operate the project.
          (3) Payment of principal and interest by secretary.--
        With respect to any obligation guaranteed under this 
        section, the Secretary may enter into a contract to 
        pay, and pay, holders of the obligation, for and on 
        behalf of the borrower, from funds appropriated for 
        that purpose, the principal and interest payments which 
        become due and payable on the unpaid balance of the 
        obligation if the Secretary finds that--
                  (A)(i) the borrower is unable to meet the 
                payments and is not in default;
                  (ii) it is in the public interest to permit 
                the borrower to continue to pursue the purposes 
                of the project; and
                  (iii) the probable net benefit to the Federal 
                Government in paying the principal and interest 
                will be greater than that which would result in 
                the event of a default;
                  (B) the amount of the payment that the 
                Secretary is authorized to pay shall be no 
                greater than the amount of principal and 
                interest that the borrower is obligated to pay 
                under the agreement being guaranteed; and
                  (C) the borrower agrees to reimburse the 
                Secretary for the payment (including interest) 
                on terms and conditions that are satisfactory 
                to the Secretary.
          (4) Action by attorney general.--
                  (A) Notification.--If the borrower defaults 
                on an obligation, the Secretary shall notify 
                the Attorney General of the default.
                  (B) Recovery.--On notification, the Attorney 
                General shall take such action as is 
                appropriate to recover the unpaid principal and 
                interest due from--
                          (i) such assets of the defaulting 
                        borrower as are associated with the 
                        obligation; or
                          (ii) any other security pledged to 
                        secure the obligation.
    (h) Fees.--
          (1) In general.--The Secretary shall charge and 
        collect fees for guarantees in amounts the Secretary 
        determines are sufficient to cover applicable 
        administrative expenses.
          [(2) Availability.--Fees collected under this 
        subsection shall--
                  [(A) be deposited by the Secretary into the 
                Treasury; and
                  [(B) remain available until expended, subject 
                to such other conditions as are contained in 
                annual appropriations Acts.]
          (2) Availability.--Fees collected under this 
        subsection shall--
                  (A) be deposited by the Secretary into a 
                special fund in the Treasury to be known as the 
                `Incentives For Innovative Technologies Fund'; 
                and
                  (B) remain available to the Secretary for 
                expenditure, without further appropriation or 
                fiscal year limitation, for administrative 
                expenses incurred in carrying out this title.
    (i) Records; Audits.--
          (1) In general.--A recipient of a guarantee shall 
        keep such records and other pertinent documents as the 
        Secretary shall prescribe by regulation, including such 
        records as the Secretary may require to facilitate an 
        effective audit.
          (2) Access.--The Secretary and the Comptroller 
        General of the United States, or their duly authorized 
        representatives, shall have access, for the purpose of 
        audit, to the records and other pertinent documents.
    (j) Full Faith and Credit.--The full faith and credit of 
the United States is pledged to the payment of all guarantees 
issued under this section with respect to principal and 
interest.

SEC. 1703. ELIGIBLE PROJECTS.

    (a) In General.--The Secretary may make guarantees under 
this section only for projects that--
          (1) avoid, reduce, or sequester air pollutants or 
        anthropogenic emissions of greenhouse gases; and
          (2) employ new or significantly improved technologies 
        as compared to commercial technologies in service in 
        the United States at the time the guarantee is issued.
    (b) Categories.--Projects from the following categories 
shall be eligible for a guarantee under this section:
          (1) Renewable energy systems.
          (2) Advanced fossil energy technology (including coal 
        gasification meeting the criteria in subsection (d)).
          (3) Hydrogen fuel cell technology for residential, 
        industrial, or transportation applications.
          (4) Advanced nuclear energy facilities.
          (5) Carbon capture and sequestration practices and 
        technologies, including agricultural and forestry 
        practices that store and sequester carbon.
          (6) Efficient electrical generation, transmission, 
        and distribution technologies.
          (7) Efficient end-use energy technologies.
          (8) Production facilities for fuel efficient 
        vehicles, including hybrid and advanced diesel 
        vehicles.
          (9) Pollution control equipment.
          (10) Refineries, meaning facilities at which crude 
        oil is refined into gasoline.
    (c) Gasification Projects.--The Secretary may make 
guarantees for the following gasification projects:
          (1) Integrated gasification combined cycle 
        projects.--Integrated gasification combined cycle 
        plants meeting the emission levels under subsection 
        (d), including--
                  (A) projects for the generation of 
                electricity--
                          (i) for which, during the term of the 
                        guarantee--
                                  (I) coal, biomass, petroleum 
                                coke, or a combination of coal, 
                                biomass, and petroleum coke 
                                will account for at least 65 
                                percent of annual heat input; 
                                and
                                  (II) electricity will account 
                                for at least 65 percent of net 
                                useful annual energy output;
                          (ii) that have a design that is 
                        determined by the Secretary to be 
                        capable of accommodating the equipment 
                        likely to be necessary to capture the 
                        carbon dioxide that would otherwise be 
                        emitted in flue gas from the plant;
                          (iii) that have an assured revenue 
                        stream that covers project capital and 
                        operating costs (including servicing 
                        all debt obligations covered by the 
                        guarantee) that is approved by the 
                        Secretary and the relevant State public 
                        utility commission; and
                          (iv) on which construction commences 
                        not later than the date that is 3 years 
                        after the date of the issuance of the 
                        guarantee;
                  (B) a project to produce energy from coal (of 
                not more than 13,000 Btu/lb and mined in the 
                western United States) using appropriate 
                advanced integrated gasification combined cycle 
                technology that minimizes and offers the 
                potential to sequester carbon dioxide emissions 
                and that--
                          (i) may include repowering of 
                        existing facilities;
                          (ii) may be built in stages;
                          (iii) shall have a combined output of 
                        at least 100 megawatts;
                          (iv) shall be located in a western 
                        State at an altitude greater than 4,000 
                        feet; and
                          (v) shall demonstrate the ability to 
                        use coal with an energy content of not 
                        more than 9,000 Btu/lb;
                  (C) a project located in a taconite-producing 
                region of the United States that is entitled 
                under the law of the State in which the plant 
                is located to enter into a long-term contract 
                approved by a State public utility commission 
                to sell at least 450 megawatts of output to a 
                utility;
                  (D) facilities that--
                          (i) generate one or more hydrogen-
                        rich and carbon monoxide-rich product 
                        streams from the gasification of coal 
                        or coal waste; and
                          (ii) use those streams to facilitate 
                        the production of ultra clean premium 
                        fuels through the Fischer-Tropsch 
                        process; and
                  (E) a project to produce energy and clean 
                fuels, using appropriate coal liquefaction 
                technology, from Western bituminous or 
                subbituminous coal, that--
                          (i) is owned by a State government; 
                        and
                          (ii) may include tribal and private 
                        coal resources.
          (2) Industrial gasification projects.--Facilities 
        that gasify coal, biomass, or petroleum coke in any 
        combination to produce synthesis gas for use as a fuel 
        or feedstock and for which electricity accounts for 
        less than 65 percent of the useful energy output of the 
        facility.
          (3) Petroleum coke gasification projects.--The 
        Secretary is encouraged to make loan guarantees under 
        this title available for petroleum coke gasification 
        projects.
          (4) Liquefaction project.--Notwithstanding any other 
        provision of law, funds awarded under the clean coal 
        power initiative under subtitle A of title IV for coal-
        to-oil liquefaction projects may be used to finance the 
        cost of loan guarantees for projects awarded such 
        funds.
    (d) Emission Levels.--In addition to any other applicable 
Federal or State emission limitation requirements, a project 
shall attain at least--
          (1) total sulfur dioxide emissions in flue gas from 
        the project that do not exceed 0.05 lb/MMBtu;
          (2) a 90-percent removal rate (including any fuel 
        pretreatment) of mercury from the coal-derived gas, and 
        any other fuel, combusted by the project;
          (3) total nitrogen oxide emissions in the flue gas 
        from the project that do not exceed 0.08 lb/MMBtu; and
          (4) total particulate emissions in the flue gas from 
        the project that do not exceed 0.01 lb/MMBtu.
    (e) Qualification of Facilities Receiving Tax Credits.--A 
project that receives tax credits for clean coal technology 
shall not be disqualified from receiving a guarantee under this 
title.
    (f) Renewable Fuel Facilities.--
          (1) In general.--The Secretary may make guarantees 
        under this title for projects that produce advanced 
        biofuel (as defined in section 102 of the Biofuels for 
        Energy Security and Transportation Act of 2007).
          (2) Requirements.--A project under this subsection 
        shall employ new or significantly improved technologies 
        for the production of renewable fuels as compared to 
        commercial technologies in service in the United States 
        at the time that the guarantee is issued.
          (3) Issuance of first loan guarantees.--The 
        requirement of section 20320(b) of division B of the 
        Continuing Appropriations Resolution, 2007 (Public Law 
        109-289, Public Law 110-5), relating to the issuance of 
        final regulations, shall not apply to the first 6 
        guarantees issued under this subsection.
          (4) Project design.--A project for which a guarantee 
        is made under this subsection shall have a project 
        design that has been validated through the operation of 
        a continuous process pilot facility with an annual 
        output of at least 50,000 gallons of ethanol or the 
        energy equivalent volume of other advanced biofuels.
          (5) Maximum guaranteed principal.--The total 
        principal amount of a loan guaranteed under this 
        subsection may not exceed $250,000,000 for a single 
        facility.
          (6) Amount of guarantee.--The Secretary shall 
        guarantee 100 percent of the principal and interest due 
        on 1 or more loans made for a facility that is the 
        subject of the guarantee under paragraph (3).
          (7) Deadline.--The Secretary shall approve or 
        disapprove an application for a guarantee under this 
        subsection not later than 90 days after the date of 
        receipt of the application.
          (8) Report.--Not later than 30 days after approving 
        or disapproving an application under paragraph (7), the 
        Secretary shall submit to Congress a report on the 
        approval or disapproval (including the reasons for the 
        action).

           *       *       *       *       *       *       *

                              ----------                              

           CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT

Public Law 101-626, as amended

           *       *       *       *       *       *       *

SEC. 109. ENERGY EFFICIENCY STANDARDS.

    (a) Establishment.--
          (1) In general.--The Secretary of Housing and Urban 
        Development and the Secretary of Agriculture shall, not 
        later than September 30, 2006, jointly establish, by 
        rule, energy efficiency standards for--
                  (A) new construction of public and assisted 
                housing and single family and multifamily 
                residential housing (other than manufactured 
                homes) subject to mortgages insured under the 
                National Housing Act;
                  (B) new construction of single family housing 
                (other than manufactured homes) subject to 
                mortgages insured, guaranteed, or made by the 
                Secretary of Agriculture under title V of the 
                Housing Act of 1949; and
                  (C) 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 [, where such 
                standards are determined to be cost effective 
                by the Secretary of Housing and Urban 
                Development].
    (2) Contents.--Such standards shall meet or exceed the 
requirements of [the Council of American Building Officials 
Model Energy Code, 1992] 2006 International Energy Conservation 
Code, (hereafter in this section referred to as ``[CABO Model 
Energy Code, 1992] the 2006 IECC'') or, in the case of 
multifamily high rises, the requirements of the American 
Society of Heating, Refrigerating, and Air-Conditioning 
Engineers Standard 90.1 [1989] 2004 (hereafter in this section 
referred to as ``ASHRAE Standard 90.1 [1989] 2004'') [, 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], and shall be cost-effective with respect to construction 
and operating costs on a life-cycle cost basis. In developing 
such standards, the Secretaries shall consult with an advisory 
task force composed of homebuilders, national, State, and local 
housing agencies (including public housing agencies), energy 
agencies, building code organizations and agencies, energy 
efficiency organizations, utility organizations, low-income 
housing organizations, and other parties designated by the 
Secretaries.
    (b) [Model Energy Code.--] International Energy 
Conservation Code.--If the Secretaries have not, by September 
30, 2006, established energy efficiency standards under 
subsection (a), all new construction and rehabilitation of 
housing specified in such subsection shall meet the 
requirements of [CABO Model Energy Code, 1992] the 2006 IECC, 
or, in the case of multifamily high rises, the requirements of 
ASHRAE Standard 90.1 [1989] 2004. [, 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.]
    (c) Revisions of [Model Energy Code and] the International 
Energy Conservation Code.--If the requirements of [CABO Model 
Energy Code, 1992] the 2006 IECC, or, in the case of 
multifamily high rises, ASHRAE Standard 90.1 [1989] 2004 [ , 
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], are revised at any time, the Secretaries 
shall, not later than 1 year after such revision, amend the 
standards established under subsection (a) to meet or exceed 
the requirements of such revised code or standard unless the 
Secretaries determine that compliance with such revised code or 
standard would not result in a significant increase in energy 
efficiency or would not be technologically feasible or 
economically justified.
    (d) Failure To Amend the Standards.--If the Secretaries 
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) of this 
section, and if 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, all new construction 
and rehabilitation of housing specified in subsection (a) shall 
meet the requirements of the revised code or standard.

TITLE 10, UNITED STATES CODE

           *       *       *       *       *       *       *

CHAPTER 173--ENERGY SECURITY

           *       *       *       *       *       *       *

SUBCHAPTER I--ENERGY SECURITY ACTIVITIES

           *       *       *       *       *       *       *

SEC. 2913. ENERGY SAVINGS CONTRACTS AND ACTIVITIES.

           *       *       *       *       *       *       *

    [(e) Congressional notification of cancellation ceiling for 
energy savings performance contracts. When a decision is made 
to award an energy savings performance contract that contains a 
clause setting forth a cancellation ceiling in excess of 
$7,000,000, the Secretary of Defense shall submit to the 
appropriate committees of Congress written notification of the 
proposed contract and of the proposed cancellation ceiling for 
the contract. The notification shall include the justification 
for the proposed cancellation ceiling. The contract may then be 
awarded only after the end of the 30-day period beginning on 
the date the notification is received by such committees or, if 
earlier, the end of the 15-day period beginning on the date on 
which a copy of the notification is provided in an electronic 
medium pursuant to section 480 of this title.]

                                  
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